Organizational Policy and Strategy of Southwest Airlines Case Study

Organizational Policy and Strategy of Southwest Airlines - Case Study Example It is evidently clear from the discussion that to meet the challenges of the time, the company exuded confidence by not only increasing the number of flights but it also went in for employment for more workers. This action of the company provided it with the competitive edge because the other airlines were not only reducing the flights but they had also laid off a considerable number of workers. This resulted in a significant increase in its market position and at the same time, considerably improved the management relations with the labor unions. The major factor that led to Southwest’s success was its policy of acknowledging the human behavior and maintain non-attrition by not laying off the staff. The company’s strategy was to increase the number of customer service agents so that the passengers could get improved personal service and emotional support and security at the crisis time. The organizational culture of the company promoted the concept of a ‘big fami ly’ and therefore the workforce was more conscientious and worked harder during the tough time which led to the improved performance of the company. After the probation period of six months, all the employees of the airlines become eligible for ‘Southwest’s profit-sharing plan’ that greatly motivates the workforce. Another factor that contributed towards the success was its better relations with the labor unions. The role of the union has become critical to the wider interest of the human capital employed across the organizations. The collective bargaining of the union has greatly facilitated the welfare of the workforce and has promoted their interest amongst the management.