Southwest Airlines Since the Early Case Study

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The most notable would include: a renegotiation of the contract rates and benefits for employees. This is problematic, because if the staff begins to see that managers are making irresponsible decisions or are becoming disconnected with employees, it will create the setting for increased amounts of animosity to occur. Once this take place, it means that the company could lose talented employees and may be forced to renegotiate with unions (which would undermine its business model). ("Southwest Airline Corporation," 2002)

Follow Up

When you look at the total effects of the actions that were taken by Southwest, it is clear that the strategy of independently negotiating labor contracts provided the desired results. This can be seen by looking at the various steps that were taken during the process. Where, Southwest would be concerned about labor issues that are affecting other carriers. To counter these concerns, the company would negotiate with employees on acceptable labor costs for both parties. This would help to eliminate the obvious divisions that occur between labor and management. As the negotiation process was seeking a solution that would effectively address the needs of both sides. In many ways, one could argue that this process of openness and transparency would eliminate the barriers that existed, establishing a lower cost structure and providing employees with salaries / benefits that were acceptable to them. ("Southwest Airline Corporation," 2002)

Case Report

The formula that is being utilized by Southwest would help to effectively resolve various conflicts, before they have a chance to become major issues. This is a different strategy from what was being utilized by various airlines, as they would allow these divisions to continue to build up. Then, when they are renegotiating the various union contracts, management and labor are so far apart that the chances decrease they will be able to find an agreeable solution.

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If management can take the lead and follow a similar negotiating strategy, then any organization will increase the chances of being able to find a balance between: the underlying costs of labor and ensuring that the airline is economically viable. That being said, during this process managers / employees must keep an open mind and have flexibility. If these conditions can be met, then the odds increase that agreeable labor costs will be negotiated with the various unions. At the same time, this process will allow the airline to be able to ask more of their employees than traditional carriers. Where, managers will demand high standards of performance and want to hire those people who would work effectively, in helping the company to achieve this objective. This will improve the professionalism of the organization and allow the company to provide better services, while maintaining low ticket costs. This would create a change of culture within an organization, as management and labor will have positive relations, which reflect upon the environment itself. A good example of this can be seen when someone is first hired by Southwest Airlines. Where, everyone will work to welcome new employees to the company, because they were chosen for their particular skill sets. This helps to eliminate any kind of fears and to instill the idea that everyone needs to work together, to help improve the experience for customers. As a result, the use of the strategy that was outlined above helps Southwest to be able to overcome the various challenges that are common within the industry. This is accomplished by reaching out to employees before the situation spirals out of control. ("New Employee Orientation," 2002).....

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