Evaluation of Motivation Practices in the Travel and

Hospitality Industry:

Case of Southwest Airlines

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Table of Contents

Introduction..........................................................................................................................3

Southwest Airlines Corporate Culture.................................................................................3

Mission............................................................................................................................4

Organizational Structure..................................................................................................4

Decision-making Strategies.............................................................................................5

Motivational Strategies........................................................................................................5

Conclusion...........................................................................................................................9

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Introduction

Southwest Airlines is one of the most desired employers in the travel and

hospitality industry today. The company’s unique corporate culture has been established

since Southwest Airlines first started. In addition, Southwest Airline’s mission statement,

organizational structure, and decision-making strategies are also important to Southwest’s

culture. Southwest Airlines uses many motivational strategies to keep its employees

motivated. From the benefits, free airfare, profit sharing, to the job design and leadership

styles, Southwest Airlines is a company almost anyone would be willing to work for.

There are many successful, leading edge corporations in the world. Some of them

are Federal Express, Microsoft, and the Disney Corporation; however, none of these

corporations compare to Southwest Airlines. Southwest Airlines is one of the most

desired employers. In 2003 alone, Southwest Airlines received more than 202,000

resumes of which only 908 were selected for employment (Taylor). One of the reasons

that Southwest Airlines attracts so many potential employees is because of the benefits it

offers. The benefits are not just monetary in nature (Meudell and Rodham 128), some of

the most attractive benefits stem from the way Southwest Airlines treats its employees.

The history and background of Southwest Airlines helps explains how the corporate

culture of the company came about. The corporate culture remains the way it was first

established because of the type of motivational strategies that Southwest Airlines uses to

keep its employees motivated.

Southwest Airlines Corporate Culture

Since it’s beginning, Southwest Airlines has actively promoted a unique, fun-

loving culture that emphasizes their most valued asset, their employees. The company’s

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approach to its employees and customer service is both innovative and original for a

company this significant in size. Employees enjoy working for Southwest and take pride

in their company. Indeed, the positive employee attitude benefits the employee, the

company, and ultimately the customer (TNS). The corporate culture at Southwest

Airlines will be analyzed by reviewing the company’s mission statement, organizational

structure, and decision-making strategies.

Mission

The mission of Southwest Airlines is “dedication to the highest quality of

customer service delivered with a sense of warmth, friendliness, individual pride, and

company spirit” (Barrett). The second part of the mission is specifically addressed to the

employees of Southwest Airlines. The company states its commitment to providing their

employees a “stable work environment with equal opportunity for learning and personal

growth” (Barrett). It then boasts that “creativity and innovation are encouraged for

improving the effectiveness of Southwest Airlines” (Barrett). The mission statement is

concluded with the promise that the employees will be treated with the same “concern,

respect, and caring attitude within the organization that they are expected to share

externally with every Southwest customer” (Barrett).

Organizational Structure

Southwest Airlines is governed by a board of directors and company officers. The

president of Southwest Airlines is Colleen Barrett, and the chairman of the board is

Herbert D. Kelleher. Southwest views the rest of its organization design and structure as

informal and flat. There is little hierarchy, with empowered employees at all levels. It is

not unusual to see the CEO loading luggage on a busy day. The distinctive combination

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of a fun-loving culture and flat organizational structure is most effective in delivering a

highly dedicated, motivated staff with the highest productivity in the travel and

hospitality industry and the lowest turnover rate. Southwest Airlines has worked hard on

creating and maintaining this organizational structure.

Decision-making Strategies

The decision-making strategies of Southwest Airlines are defined by its flat

organizational structure and result in employees being empowered to make decisions.

Unlike other airline companies, Southwest employees are authorized to manage customer

issues. In addition, workers and management work on committees to do planning and

decision making as well as problem solving. What is the benefit of empowering

employees to make decisions? Southwest Airlines reports high job satisfaction among

employees; it is further noted for high morale and a highly motivated workforce (Miles

and Mangold 535-45). The amazing management practices of Southwest Airlines have

fostered an empowered culture that is innovative, dedicated, loyal, and highly productive.

Southwest Airlines has proved that investing time and commitment to relationships with

employees can and will result in a company that is highly successful and profitable.

Motivational Strategies

In order to maintain its employees and keep them motivated, in addition to

empowering its employees, Southwest Airlines also uses several other techniques to keep

is employees motivated. One way is Southwest’s very selective hiring process. “At job

interviews, the prospective employee must show a sense of humor along with other self-

development attitudes. Only those that match the ridged [sic] personnel profile are hired”

(Webb). Another motivational feature that Southwest offers is its very popular and

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lucrative benefits package. The most popular benefit is free flying passes. On an

employees first day of work, they along with eligible family members have unlimited

space-available travel privileges. Southwest also offers other benefits such as profit

sharing; 401(k); stock purchase plan; medical, dental, vision, and life insurance; sick

leave; vacation; and holidays; along with many other optional benefits. Since Southwest

has such an exceptional benefits program, Southwest “consistently has the lowest

turnover rate of any airline” (Tripp).

Southwest also provides its employees with many rewards. It rewards its

employees for “excellent performance, maintaining loyalty, job satisfaction, and personal

motivation” (Tripp). One of the many rewards that are given out is the Star of the Month

award. Each month, one employee out of over 31,000 employees is selected for his or her

outstanding performance to be spotlighted in Southwest Airlines Spirit Magazine

(Southwest.com, “Start of the Month”). Southwest is determined to maintain its

employee’s high moral and its fun loving atmosphere. It maintains this status by

recognizing all of its employees. Once such way all employees were awarded was when

Southwest experienced remarkably low absenteeism and almost a complete lack of

tardiness by its employees, Southwest abolished the office dress code (Tripp). Another

example of recognition came in 1997 when Southwest recognized all of its employees

when Southwest won its fifth consecutive Triple Crown award, which is awarded for best

on-time performance, best baggage handling, and fewest customer complaints, by

dedicating an airplane named Triple Crown One and engraving all 24,000 employee’s

names on the overhead bins inside the plane (Davidson 44-47). These types of rewards

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that Southwest offer its employees help to keep its employees motivated on a daily basis,

in agreement with Hughes notion of “contingent reward systems” (221-29).

Another motivational strategy that Southwest uses is its goals and objectives.

Airline companies are very competitive. In today’s ever-changing economy, job security

is one of the most important factors when deciding on a new job and no one in the travel

and hospitality industry has a better record than Southwest. Employees at Southwest

claim ownership in the company. Currently, they own at least 8 percent of the company’s

shares (Southwest.com, “Fact Sheet”). This probably explains why they are so loyal and

such motivated employees. When you put motivation and ownership together, it is going

to equal job security. Southwest employees are going to continue to work together to

ensure that the company is profitable and has a good financial record. Every time

Southwest Airlines has a profitable year, the employees see a profit. At Southwest,

employees are treated with respect and they get to be involved in the goals of the

company. This environment encourages “people to put passion, energy, enthusiasm, and

motivation into their work because they truly believe that they are playing a crucial role

in shaping the airline’s destiny” (Freiberg & Freiberg 64).

The unique job designs are also a motivational strategy that Southwest uses.

Looking at the organizational structure at Southwest airlines, it is evident that the

company continues to research features that will keep employees loyal, productive and

motivated. Southwest wants to make sure employee ideas are implemented, that their

creativity is recognized (i.e., dressing up as characters to amuse their customers while

flying), and that they get feedback on jobs that are satisfactorily accomplished, according

to what Hughes describes as “contingency reward systems” (221). Southwest employees

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also receive adequate training in their professional jobs, such as pilots, flight attendants,

ticket agents and ground staff. Once a quarter, managers take over jobs such as baggage

handling and ramp agents. Pilots are known to jump in and work as ticket agents and

handle customers. One job design characteristic is work/rest schedules. At Southwest, the

schedules for pilot/flight attendants allow them to fly to their destination and return to

their home base so that they can sleep in their own beds at night. The pilot and flight

attendants do not have to stay in hotels. The goal at Southwest is to make room and

allowances for changes in the company. They understand that job design is an on-going

process.

One of the most important motivational strategies that Southwest embraces is its

special leadership style. Becoming an effective leader will be more difficult yet more

important than ever in the twenty-first century. “Today and tomorrow’s new employees

do not and will not trust management as much as their parents trusted their employers,

unless that trust is earned” (Iyer 19). Southwest encourages and utilizes teamwork rather

than single individual effort. Southwest uses a team delay process to reduce time spent at

the gate. If it is determined that the delay was not caused by customers, it may be that it

was a station delay or flight crew delay. The team determines what caused the delay and

discusses how to prevent any future delays. Southwest emphasizes that employees learn

from their mistakes. Southwest supervisors will supervise 8 to 9 employees to help them

do the best job possible. Southwest has created a horizontal organization based on cross-

functional teams to diffuse blame, with adequate staffing to provide coaching, feedback,

and learning. Employees at all levels work together as a team to reach a common goal:

the success of Southwest airlines. “Southwest employees are more willing to accept

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management work rules, largely because they do not feel that management is clamping

down on employee freedom to cover up its own incompetence or on compensation to pad

its own pockets” (Deutsch). All of these motivational strategies keep Southwest Airlines

as an employer of choice.

Conclusion

From the benefits, free airfare, profit sharing, to the job design and leadership

styles, Southwest is a company almost anyone would be willing to work for. The essence

of Southwest Airlines in its approach towards motivation is quite clear. Southwest has

earned many prestigious awards over the years. “FORTUNE has ranked Southwest

Airlines in the top five of the Best Companies to Work For in America” (Southwest.com,

“Fact Sheet”). When you have earned awards in best on-time record, best baggage

handling, and fewest customer complaints for many years; you know that you are

motivating someone. You can see from all of the information above that Southwest

Airlines uses many different motivational techniques. Southwest Airlines has been the

first airline that uses the flat organization to let its employees have the empowerment to

make decisions, which has allowed Southwest Airlines to grow as far as it has. Southwest

Airlines motivational strategies serve as an attraction for new employees, and the

strategies also improve employee retention. Many people want to be employed with

Southwest because of the company’s growth and vision for the future. As mentioned

earlier Southwest received more than 202,000 resumes of which only 908 were selected

(Tripp). Southwest is the nation’s fastest growing airline due to the practices of

motivation they have developed and used. When looking at what Southwest could do to

improve the way it manages or treats its employees, it is almost impossible to find

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anything that needs to be improved. In the end, if there is anything that may need to be

improved, it is for the employees to continue to motivate themselves from within.

“Southwest treats its own employees as a source of value, not of cost, so they work to

turn planes around faster and are flexible” (Deutsch). Southwest Airline’s motivational

strategies need to be the model that other companies follow. As Colleen Barrett, the

president of Southwest Airlines, states “caring can’t be a program or an agenda, It has to

be an every day thing – so much a part of you that you don’t even think about it. You

have to know when someone is bothered, when a great performer is suddenly not. We run

our organization that way.”

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Works Cited

Barrett, Colleen. “The mission of Southwest Airlines.” Jan. 1988. Southwest Airlines

website. 20 Nov. 2007 <http://www.southwest.com/about_swa/mission.html>

Davidson, Linda. “The power of personal recognition.” Workforce 78.7 (1999): 44-47.

Deutsch, Claudia H. “Airlines fearing a vicious circle of weak finances and low morale.”

30 Nov. 2004. The New York Times. 20 Nov. 2007

<http://www.nytimes.com/2004/11/03/business/03air.html?

_r=1&pagewanted=print&position=&oref=slogin>

Freiberg, Kevin and Jackie Freiberg. Nuts! Southwest Airlines’ crazy recipe for business

and personal success. New York: Broadway Books, 1997.

Hughes, Julia M. “HRM and universalism: is there one best way?” International Journal

of Contemporary Hospitality Management 14.5 (2002): 221-229.

Iyer, Subhashini K. “Organizational leadership that influences group behaviour.” 20 Nov.

2007 <http://www.hrfolks.com/knowledgebank/mgmt%20concepts/organizational

%20leadership%20influences%20groups.pdf>

Meudell, Karen and Karen Rodham. “Money isn’t everything… or is it? A preliminary

research study into money as a motivator in the licensed house sector.”

International Journal of Contemporary Hospitality Management 10.4 (1998): 128-

132.

Miles, Sandra Jeanquart and W. Glynn Mangold. “Positioning Southwest Airlines

through employee branding.” Business Horizons 48.6 (2005): 535-545.

Southwest.com. “Star of the month.” 20 Nov. 2007

<http://southwest.com/careers/stars/stars.html>

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Southwest.com. “Southwest Airlines – Fact sheet.” 06 Aug. 2007. Southwest Airlines

website. 20 Nov. 2007

<http://www.southwest.com/about_swa/press/factsheet.html>

Taylor, Fred. “Nuts about Southwest – thinking like an owner.” 31 May 2007. Southwest

Airlines Blog. 20 Nov. 2007

<http://www.blogsouthwest.com/2007/05/31/thinking-like-an-owner/ >

TNS. “What employees really want.” 01 Nov. 2006. 19 Nov. 2007

<http://www.employeebenefits.co.uk/item/1810/23/316/3>

Tripp, Tracy. “Best practices case study: best perks, Southwest Airlines.” 20 Nov. 2007

<http://www.vault.com/nr/printable.jsp?ch_id=402&article_id=19258&print=1>

Webb, Robert L. “Leadership trends – empowerment.” 2003. 20 Nov. 2007

<http://www.motivation-tools.com/workplace/leadership_trends.htm>

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