Control Mechanism

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Southwest Airlines: Control Mechanisms
Southwest Airlines is a dynamic organization that is researched and studied by many. One reason for this attention is the positive corporate culture. This culture attracts dynamic people to the organization who are encouraged to be innovative and grow as leaders while supporting and promoting the mission of the airline. This culture was established through effective planning, organizing and leadership. To maintain this culture and the success of the airline, the function of controlling is critical. Systems must be in place to monitor performance and outcomes to ensure that organizational goals are being met. When an outcome is not one that is desired, the control mechanisms are used to address the issues and allow for corrective action to be taken. There are various control mechanisms used my many different companies. Some that are used by Southwest Airlines are management audits, finance control, behavior control and output management.
Southwest Airlines is known for its innovative planning, unwavering organizational skills, collaborative leaders, and efficient monitoring and controlling. The organization has a continuous cycle of planning and controlling which has made the company a success. Southwest Airlines has used this cycle because the leaders of the company realized the importance of the two functions.
Southwest Airlines uses various monitoring and controlling methods to determine if the organizational goals are being met and to allow for changes or improvements if necessary. As mentioned previously, four types of control mechanisms used by Southwest Airlines are management audits, finance control, behavior control, and output management. These different controlling mechanisms give the leaderships at Southwest Airlines a look into the every day operations at the airline.
One type of management audit at the airline is performed by the Audit Committee of the Board of Directors. The committee’s primary function is



References: Cohen, A., Watkinson, J., Boone, J. (n.d.). Herb Kelleher, executive chairman of southwest airlines talks about building leaders and how their innovative people-culture has lifted the airline to success. Babson Insight. Retrieved February 7, 2008, from http://www.babsoninsight.com/contentmgr/showdetails.php/id/793 Owens, J. & Ritz, Tim. (n.d.). Southwest Airlines: An In-Depth Review. Retrieved February 15, 2008, from http://www.erau.edu/research/BA590/chapters/ch11.htm Southwest Airlines. (2007, January 18). Audit Committee Charter. Retrieved February 13, 2008, from Investor Relations. Corporate Governence: http://www.southwest.com/investor_relations/fs_corporate_governance.html Southwest Airlines. (n.d.). Non-GAAP reconciliation (Quarterly). Retrieved February 14, 2008, from Investor Relations. Financials: http://www.southwest.com/investor_relations/fs_financials.html Southwest Airlines Co. Annual Report 2006. (2007, January 31). Retrieved February 14, 2008, from Southwest.com: http://www.southwest.com/investor_relations/swaar06.pdf Southwest Airlines Reports Fourth Quarter Earnings and 35th Consecutive Year of Profitability. (Jan 23. 2008). Retrieved February 17, 2008, from www.marketwatch.com/news/story

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