Westjet Case Culture
Culture is imperative in any business. It separates the good companies from the great ones. As WestJet continues its goal of becoming a low fare international airline, it will face numerous obstacles. The problem addressed here deals with the people aspect. How can WestJet maintain its current people culture as the company expands? How can WestJet instill the culture into its new people? And how will WestJet meet the cultural differences in other markets? Answering these questions is essential to the future success of WestJet.
Analysis
In order for us to address how to reach WestJet's long term goal of becoming the largest low fare airline in the world while maintaining its culture, we must understand where we are today. We have developed a S.W.O.T. analysis centered around WestJet’s culture.
Strengths
The culture is very democratic and people feel safe in the organization. The CEO has taken special care to give primary importance to the interests of the employees and puts their interest foremost. The employees enjoy complete freedom as well they have full authority which helps them act in interest of the company and customers. WestJet applies a bottom up approach, the employees are part of the decisions and policy changes.
WestJet’s profit sharing plan allocates bonuses based on profit margins to most of the employees. This profit sharing plan has a ceiling of 20 per cent of net income and cheques are handed out twice a year. The profit sharing program combined with the share purchase plan gives the people of WestJet an ownership stake in the corporation. This further reinforces WestJetter to act in the interest of the company as the employees are aware that company growth will in turn result into their own growth. The people are innovative and always thinking of ways and means to reduce the costs which would mean an increase in profitability.
There is also a strong sense of belonging. The employees believe in working in teams
Analysis
In order for us to address how to reach WestJet's long term goal of becoming the largest low fare airline in the world while maintaining its culture, we must understand where we are today. We have developed a S.W.O.T. analysis centered around WestJet’s culture.
Strengths
The culture is very democratic and people feel safe in the organization. The CEO has taken special care to give primary importance to the interests of the employees and puts their interest foremost. The employees enjoy complete freedom as well they have full authority which helps them act in interest of the company and customers. WestJet applies a bottom up approach, the employees are part of the decisions and policy changes.
WestJet’s profit sharing plan allocates bonuses based on profit margins to most of the employees. This profit sharing plan has a ceiling of 20 per cent of net income and cheques are handed out twice a year. The profit sharing program combined with the share purchase plan gives the people of WestJet an ownership stake in the corporation. This further reinforces WestJetter to act in the interest of the company as the employees are aware that company growth will in turn result into their own growth. The people are innovative and always thinking of ways and means to reduce the costs which would mean an increase in profitability.
There is also a strong sense of belonging. The employees believe in working in teams