An Analysis Of The Culture Of An Organization

An analytic thinking Of The Culture Of An Organization south-west Airlines is the pi geniuser in low-f be air imparting and genius of the leading Ameri roll in the hay air hoses. In 2010, with a number of 106.2 million passengers carried, it was the USAs largest domestic carrier in terms of boarded passengers (Centre for Asia pacific Aviation and IATA, 2011). souwest was in corporeald in Texas in 1967 and service surviveed quartet eld later, in 1971. Origin entirelyy, the airline was only serving Texan cities hardly the fellowship has progressively enlarged its service to other Ameri earth-closet states and cities.Until 2011, no international destinations were comprised in the airlines routes charge though codificationsh be agreements permitted it to offer international fledges operated by other airlines as decl bed by the sou-west media website, 2011. The acquisition of AirTran Airways by Southwest Airlines will award it to serve some international destinations in Mex ico and the Carribean. In 2010, the staff represented 34,901 persons and the fraternity professed 548 aircrafts (Datamonitor, 2011).A PESTEL depth psychology of the global airline labor by Xerfi Global (2011) will tot tout ensembleyow us to understand that the macro environment stays exceptionally challenging. hither is a brief summary of the outlinePositive effect negatively charged effectPoliticsPublic support actionsPolitical instabilities, conflicts, terrorism deliveranceIncreasing get hold of for air transportationOil and fuel footing variationsSensitivity of demand to prices and economic variationssociableExpanding world population sparing and companionable globalisationSeasonal demandTechnologyAircraft efficiency enhancements insane asylum of new aircraft concepts fetch air travel n nonpargoniltheless more agreeable (e-commerce)Chronic delays in aircraft deliveryEnvironmentUnfavorable weather conditions inbred disasters, pandemicsEnvironmental law to reduce emissio ns (carbon offsetting)LegislationInternational agreements in choose of liberalisation and globalisationSevere security and safety regulationsenior high school levels of taxationA market analysis of the global airline manufacture (Xerfi Global, 2011) reports several facts. First of all, politics wee a high clashing on the airline industry. It can be seriously regularised when it get ons to growing taxes, stringent security norms or legislation defending the environment. All these constraints force the pecuniary resource and operations of airlines. However, brasss offer regular financial support to assist airlines because of their implication for trade and touristry. Moreover, economic and social globalisation leads to market deregulation and thence enable the good development of the industry. The economic factor has alike a high impact on flag-carriers. For utilization, in 2009 during the global economic crisis, all the industry was affected as stated by Xerfi Global, 2011. Consumers were less likely to travel because of the variations of diverse economic factors like employment as advantageously as income level or more generally global trade. As a result, the air traffic was highly and rapidly contracted.Regardless of these issues, demand for air transportation is increasing due to the growing demand in emerging markets (Aviation Industry, 2009). The constant technical progress of the airline industry by the development of plane with high capacity, asking a cut back guardianship and a reasonable consumption made reachable this fiber of transportation to several hundreds of million persons. Nowadays, it is cheaper to travel by plane thanks to the technologys speedy improvements and to a more active competition. The costs are significantly reduced and thus allow more people to use air transportation. afterward using a PESTEL analysis, it is now necessary to get a walk-to(prenominal) look on the internal factors. Here is a SWOT analysis of the Southwest airline retrieved from a report made by Datamonitor (2011)StrengthsWeaknesses secure operating strategyRobust fleet operationsIncreasing cash flow from operationsClass action lawsuitsDependent on bingle aircraft and engine suppliersOpportunitiesThreatsPoised to benefit from the acquisition of AirTran HoldingsPositive outlook for tourism industry in the USGrowing US airline industryIntense competitionIncreasing fuel prices could strain marginsStringent government regulation could increase operating costsTable SWOT Analysis of SWA Datamonitor 2011Focus of the report formulaCompanies, following the example of the individuals, possess their own socialization. Generally, in a company managed by its owner, the refining corresponds appreciably to the ain elaboration of this one. As reported by Kotter and Heskett (1992), company with a dependable corporate gardening is due to the founder or the early draw and his capacity to articulate ideas as a vision or assembl y line strategy. In big organizations, several cultures mix. Some time they can be irreconcilable because of the diverse personalities who compose the management team. Besides, the experiences and the society can also influence (in a positive or negative way) the corporate culture, sometimes even without the managers knowing. In any type of organization, a deficient culture risks to confound a demotivating effect on the staff and to be source of dissatisfaction to the championship two factors which have a significant incidence on the profitability of the company. Organizational culture is defined as a pattern of grassroots premisss that a group has invented, discovered or developed in tuition to cope with its problems of external adaptation and internal integration, and that have worked well comely to be considered valid,and thitherfore, to be taught to new members as the correct way to perceive, think, and face in relation to those problems (Schein, 1990, p. 111).Southwe st Airlines is a perfect example in terms of corporate culture. Over the divisions, the company has imposed a starchy and original culture that has always made the airline even stronger. Today, southwesterly Airlines confirms its corporate culture centred on a relation privileged with its employees and its condescension by diversifying the means to communicate with this one through various social networks in which the company answers present and invites its employees to participate. This report will focus on the fact that Southwest airline focuses its attention on its employees. For example, in 2001, Southwest Airlines had already thwarted the effects of the recession by putting in the foreground its employees. The company chooses to draw from its financial reserves and to emphasize the advertising to consolidate its positioning as a low cost airline in order to avoid the lay-off. The creed of SWA is perfectly organized direct your employees well, theyll treat your clients wel l, the customers will hold out loyal, and your company will prosper. (James Parker, former chief executive officer of SWA)CHAPTER 2 LITERATURE REVIEW THEORYTheorical framework apply and reasons it was choosenSchein (1992) emphasizes the splendor to realize a cultural analysis in order to pull round an effective management which can transcend the national and ethical frontiers. He asserts that this analysis represents a key factor of success for the attractions, who are the persons in charge for creating, administering, changing and even destroying an organizational culture.Schein (1992) has defined three primary levels of a culture which help to realise such an analysisThe offset level establishes the surface of a culture and consists of artefacts, which are defines as perceptible organizational structure and process (Schein, 1992). Artefacts are explicit either stuff and nonsense demonstrations of a culture, such as the physical structure of a company (the architecture, the size of offices, presence or absence of barriers amongst offices, etc.), the dress code of employees, the visible doings of the persons, the rites or ceremonies, published lists on the determine and the doctrine of the company, etc. The meanings of these artefacts are only known by people from in spite of appearance the company, and are thus difficult to understand for an external observer. In the corresponding spirit, Trompenaars declares that stereotypes are formed in this superficial level prejudices mostly start on this symbolic and observable level each opinion we utter regarding explicit culture usually guesss more intimately where we come from than about the community we are judging (1998).The second level of a culture is reachd by explicit determine espoused apprises as stated by Argyris and Shon (1978) (as cited in Schein,1992). It includes determine and faiths put unitedly by a group of persons. However, these can be simply affirmations because there a re verbalised values which are not put into practice in all the situations confronted by an individual. For example, the managers of a company can affirm that one of their main values is the environmental protection, while in reality, the company pollutes in cryptical the environment. In that face, the assertion of a value does not condition the behavior of the managers.Trompenaars explains that this type of behaviour is a result of a contradiction surrounded by the standards and the values while the norms, consciously or subconsciously give us a feeling of this is how i aspire or desire to extend (Trompenaars, 1997). Nevertheless, Schein has identified a trine level of culture, in which the explicit values become internal values, which will determine the behaviour of the group which shares them.This third level is the formation of basic underlying assumptions. The process by which a shared value is transformed in one basic assumption is introduced by the leader / founde r of a certain group. For example the leader of a group can propose a solution to a common issue (based on one of its values or even on a faith). Then, the validity of this proposal will be questioned and debated between the members of the group. The proposal will thus be tested several times in order to evaluate it. Finally, if this solution works in a repetitive way, the value which is behind will be approved as correct and by consequent it will be considered as an coercive value and unconsciously it will be assimilated as shared basic assumption , anchored in all the members of the groups minds.These shared basic assumption constitute one of the foundations of the meanings which the group shares in an implicit way and which give a context of interpretation common to the group.The standard of Schein goes farther than the model of Hofstede which presents the culture (including the organizational culture) as an onion onion diagram , with the values in the centre, encircled by layers of demonstrations or practices of the culture, defines as the symbols, the heroes or the rites. According to the model of Schein, the symbols, the heroes and the rites are all categorised as artefacts, and the basic assumptions are at the heart of the model, with the explicit values between some(prenominal) levels.Scheins organizational system will be the most useful framework to study this special(a) practice within Southwest Airlines. The company is well-known for its strong corporate culture. Since its creation, the company has shown undeniable success even during the economic crisis. Beside this important fact, southwesterly Airline is also good for its employees and they do not hesitate to say it the company has been ranked second best place to work for in America in 2011 (Glassdoor, 2011). Therefore, it would be interesting to understand how such a successful company managed to go through the years without losing any of its qualities. That is why a deep analysis of the companys corporate culture will be done using the Schein model.CHAPTER 3 ANALYZE OF THE PRACTICE OF SWAApplying the chosen systemThis part of the report will be dedicated to an analysis of the employee-focused practice of Southwest Airlines through the Schein model.Schein organizational culture level is obvious in the case of Southwest Airlines. At the first level, culture is visible to those who are inside the organization and outsiders through organizational artifacts. It is the most visible and accessible level of culture. These are employeess behavior, logos of the company or slogans such as Just Plane Smart (Southwest Airlines, 1992). Kelleher states We were always very colorful and pretty promotive of a sense of humor. We have always had that approach, in an intimate way (Organizational Dynamics, 1992). Each person who travels using a Southwest escape will pay attention to the attitude of the Southwest employees.They characteristically are the friendliest, most willi ng to help employees of any airline. Southwest chooses its employees based on their social skills and their ability to be sociable and outgoing. Personnel at Southwest essential be happy to work and communicate with customers. That is why Southwest gives its employees the freedom to use any talents or skills they may have in order to entertain and serve the customers as long as they crop them happy. This is one of the factor that contribute to Southwests excellent customer service.There are many examples that prove the fact that employees can act freely. For instance, evasion attendants talent sing or tell jokes during the flight. In 2009, David Holmes became the most noted rapping flight attendant and his performance became viral on YouTube (Southwests Rapping Flight Attendant on exemptstyle and Flying to Vegas, 2009). This is one of the numerous example that demonstrate that on Southwests flights, flight attendants do not only serve customers by demonstrating seatbelts and s erving fodder and drinks.The middle level of a culture includes values and norms put together by a group of persons. Southwest has two main values humour and altruism. They are defined by different beliefs of the company such as the importance of focusing on the situation, issue or behaviour rather than focusing on the person. It means that a solution must be found instead of judging others. Also, employees need to be productive and cooperative. It is really important to maintain the self-confidence and self-esteem of others. That is why employees have to respect all the different personalities in order to create one big family. The company also insists on the importance of constructive relationships between employees. The success of the company depends on a good teamwork. Moreover, people in Southwest have the duty to make improvements in order to make things better within the company. A LUV attitude is always required and everyone should dress in reflection of the companys spi rit but also in consideration of others. The Golden Rule is Treat others as you want to be treat (The Power of LUV An Inside Peek at the Innovative Culture perpetration of Southwest Airlines, 2008).Here are the values as stated by Kelleher (as cited by Organizational Dynamics, 1992)VALUE 1 Work should be funit can be playenjoy it.VALUE 2 Work is importantdont spoil it with seriousness.VALUE 3 People are importan inform one makes a difference.A perfect example of Southwests corporate story that helps employees understand how they should behave in a feature situation could be the early years of the company.The first nine years was the toughest part of the companys life. As stated by Lusk on the companys blog, tradition here at Southwest Airlines that anyone hired during our first year of operation is considered an pilot Employee. In 2010, eleven of the Original Employees are still working at Southwest. Seven of them were on Southwests first flight as flight attendants one works as a manager in flight operations, some other is a member of Southwests ground crew, one is a dispatcher, and the last one works in maintenance (Lauer, 2010). On special occasions, Southwest invites the Originals to come in to Southwests headquarters and talk about their experiences to received employees. Lauer (2010) indicates that the Originals tell current employees about the struggles of a new airline working hard to develop. They also explain how the company managed to advertise without any money in the beginning. The flights attendants had to be creative because the company had no money to spend on advertising. They would go down to the streets of Dallas, Houston and San Antonio wearing their uniform and distribute flight schedules for the airlines four flights to everyone they met.This type of storytelling preserves the history of Southwest, while also connecting the companys early corporate culture to the lives of the actual and future employees.Furthermore, corporate ritual s are recurring sequence of activities that show up significant values of the company.There is one ritual for what Southwest is famous for its Halloween party. Every year Southwest Airlines hosts a enormous Halloween bash at its Dallas headquarters (Southwest LUVs Halloween, 2012). Herb Kelleher passed on his love of Halloween and made it become a tradition at Southwest Airlines. Once, the former CEO showed up robed as Elvis driving a Harley-Davidson (Lauer, 2010). Once Kelleher retired in 2004, his heir Gary Kelly proved his undeniable belief in and support of preserving the unique corporate culture of Southwest by dressing up on Halloween as Captain Jack Sparrow from the film The Pirates of the Caribbean. And he has been celebrating Halloween every year since then. Halloween party shows that having fun in the working environment is an essential value of the company.The third and deepest level is called basic assumption level. At this stage, the transmission of culture is done u nconsciously or under the surface. As stated by Hill and Jones (2001), basic assumptions help to formulate organizational values and these become shared assumptions that guide how employees interact with each other.Overtime and through socialization, the values are conveyed to and taught to new members of the organization as the right way to do things. Southwest employs two tools to socialize its values to new employees. They are both parts of the culture delegacy maintained by the company (Rebuilding the Social Contract at Work Lessons from Leading Cases, 1999). The first tool used by Southwest is the New City committee. The purpose of this committee is to go to each new city Southwest serves so as to teach new employees about the values of the company. It facilitates the adaptation of the new employees to Southwests culture, so they can learn the Southwests ways of doing things. The second tool is called Back to Basics team. This committee sponsored an essay competition to descri be what makes Southwest successful. The team chose a serial publication of essays that were integrated into a book with an accompanying video that is given to every new employee. One important thing is that people of these committees are all volunteers working on their own time.CONCLUSIONThis report allowed to understand the impact of a strong corporate culture and its relation to company performance. The case of Southwest airlines shows a company with a solid commitment to its employees. The company offers the same respect to its employees as it does to its customers. The mission of Southwest airlines is unique in the fact that it recognizes the importance of its employees in the companys strategy, which puts the emphasis on the great customer service and the operational efficiency. In return, the employees show undeniable respect, loyalty and trust. The charter same qualities that Southwest airlines demonstrates. Employees of the Southwest are known for their loyalty, the dedicat ion, the attitude and the innovation. Employees are the factor of distinction between Southwest airlines and the rest of the airline industry.BIBLIOGRAPHYHill, C.W.L and Jones, G.R. (2001) strategical Management An Integrated Approach. Boston MA, Houghton MifflinKotter, J. Heskett, J. (1992). Corporate Culture and Performance. New York, NY the Free press.Lauer, C. (2010). Southwest Airlines. GreenwoodSchein E. (1992). Organizational Culture and Leadership. (2nd ed) .Jossey-Bass, San Francisco.Trompenaars, F. Hampden-Turner, C. (1997) Riding the Waves of Culture Understanding ethnic Diversity in Business (Second Edition) London McGraw-Hill.