When a manager is able to manage friendly relation with his/her employees and customers success is bound to come. So ‘Treating the customer as a family and having fun with them’ should be the CVP of the SWA. Southwest Airlines (SWA) had success that was directly or indirectly inclined with the concepts/theories which were taught in the class. They should use following concepts/theories to deliver their CVP and also they should learn from their past as history repeats itself.
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F.W.Taylor and Scientific Management:
Determine one best way to do job: Reduce turn time, Reduction turn time, focus on uncongested airports which resulted in savings of an average amount of 15-25%.
Select best person for the job: Use selection devices that help identify attitudes rather than skills – rigorous interviewing. Hire people who are fun and translates to friendliness.
Sufficient monetary incentives: Profit sharing with each verticals and horizontals.
Henri Fayol’s Principles of management:
Initiative – The employees followed a customer centric approach (played games, even pilots moved luggage, continuous experimentation to improve customer experience as the experiment of coloured boarding tickets).
Stability of tenure of personnel – Attrition rate is very low and if there is a vacancy, the hiring is usually done internally.
Unity of Direction – Organization has a single action plan to carry out their activities in the most-efficient manner.
Espirit de Corps – Team building activities, training, hiring practices, sense of family.
Peter Drucker’s Modern Management theory:
Customer-centric business.
Employee (and customers) treated as family members.
Decentralisation by asking employees to take the necessary steps which enhance the experience of the employees. For e.g. for hiring pilots, the other pilots were asked to conduct the process like Who is my customer, What does my customer want, What business model should I use, etc.
Total Quality Management:
Customer focused – Long term approach to long term success by customer satisfaction.
Total employee involvement – Employees personal goals are well-aligned with organisational goals
Mary Parket Follet’s Theories:
Reciprocal relationship: Every worker, regardless of their level in hierarchy, is responsible for pulling their weight and integrating with the rest of the organization. No one person should be trying less or more than another – it's a team effort.
Continuous process: Coordination must be maintained. Don't just learn it and forget about it; channel it in everything you do. – use in terms of cost-cutting.
Power with: Rather than establishing a strict hierarchy and delegating power to certain individuals over others, Follett believed that workers should practice co-active power. Powering with their team is better than powering over them; this way, each member feels just as valued as the next.
Group power: Group power should be valued over personal power. Organizations do not exist for one person's benefit, but rather the entire company of workers. If this selfless mindset prevails, then all workers will feel like they're on the same team, rather than in competition with each other.
Hawthorne Studies:
The studies also found that although financial motives are important, social issues are equally important factors in worker productivity.
The Hawthorne studies showed that people’s work performance is dependent on social issues and job satisfaction, and that monetary incentives and good working conditions are generally less important in improving employee productivity than meeting individuals’ need and desire to belong to a group and be included in decision making and work. Even though management at SWA got offers to double and triple salaries, they stayed committed to their organization. This was due to the psychological satisfaction that they got from the job.
Circular Reflective Learning:
Thinking as a whole – Family system.
Harness the creative power of integrated thinking – Pilots gave an idea to change the technique of taking-off and landing to reduce the impact of rising fuel costs.
Enhance the ability to understand ‘law of the situation’ – In-flight games were not preferred by business travellers and they adjusted accordingly.
Maslow’s hierarchy of needs:
The social needs were satisfied efficiently as the employees felt a sense of belongingness and they should keep focus on this.
Theory Y:
Money is not important for the employees. Job satisfaction is more important to the employees.
11 February 2020
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