Southwest Airlines: A Story of Term Paper

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..you've got to take time to listen to people's ideas. If you tell someone no, that's and act of power and, in my opinion, an abuse of power. I don't want to constrain people in their thinking" (71).

Today the biggest asset Southwest Airlines has is its employee loyalty. Always considered to be valued employees over profit and money and this is exemplified by the fact that the airline has never had a lay off of any kind - with the exception of laying off three employees early in the business but hired them back in a short amount of time. Southwest's company loyalty to their employees has made them stronger organization and has saved them a significant amount of money. Trust and security shown by Southwest employees is evidenced in how they do their job. There definitely exists a bond of loyalty that is hard to break, as the employees know they have a future in the good times as well as the bad times.

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In addition the management segment of the airline believes front line employees are the most important assets of the airline. In fact Kelleher management structure is often viewed as an upside down pyramid wherein the top of the pyramid is representative of the employee. Another significant aspect of employee loyalty within Southwest Airlines is the company's willingness to make the employee part owner of the airline itself, namely in providing employees a stock option plan. Today the employees now own 10% of the company's outstanding stock. All in all, the seemingly limitless employee loyalty is clearly evident in the airline's day-to-day operations of the airline as they go out of their way to make sure the airline stays on time to continually accommodate the traveling customer. There is no doubt that the success of Southwest Airlines is a reflection of the company's goals and management style.

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