Analyzing Southwest Airlines using the Congruence Model
Company’s Strategy: Southwest’s strategy is to improve efficiency in its operations and pass cost saving to its customers by offering them low and competitive prices. Southwest Airlines is dedicated to providing the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and company Spirit. Analyze each key element of the company separately based on the congruence Model
Organization Structure (Formal Structure): The organization of Southwest Airlines is best described as an upside-down pyramid – an organization very much in line with the way they want to do business. The upper management is at the bottom and supports the front line employees, who are the experts. Front line employees play a major role in the yearly business planning and operational budgeting which for a great part is done bottom-up rather than top-down. This is the fruit of co-founder Herb Kelleher's unorthodox leadership style, in which management decisions are made by everyone in the organization, not just the head executives. The company does not put much emphasis on structure instead, employees are encouraged to think freely without constraints such as titles or official mandates.
Culture (Informal Structure): The development improvement and refinement of originality, individuality and identity and personality of a given people. This is how southwest airlines define its culture. Southwest Airlines was built on their unique culture, continuously tout it and have dedicated a position to constantly communicating it. Southwest executives are clear on who they are and who would be a good fit to “live the Southwest way.” Three components include having a • Warrior spirit: Work hard, want to be the best, be courageous, display a sense of urgency, persevere and innovate. • Servant’s heart: Follow the golden rule, put others first, demonstrate proactive customer service and embrace the...
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