Reasons why southwest''s and value line''s cultures differ

Assignment Help Operation Management
Reference no: EM13743483

CASE FOR ANALYSIS

A Tale of Two Cultures

In an attempt to give Southwest Airlines a competitive advantage based on low-cost, high-quality service, CEO Herb Kelleher developed terminal and instrumental values that made Southwest's culture the envy of its competitors. Southwest managers and employees alike are committed to the success of the organization and do all they can to help one another and to provide customers with excellent service (a terminal value). Four times a year, Southwest managers work as baggage handlers, ticket agents, and flight attendants so they get a feel for the problems facing other employees. An informal norm makes it possible for employees to gather with Kelleher every Friday at noon in the company's Dallas parking lot for a company cookout. Southwest keeps the organization as flat and informal as possible, and managers encourage employees to be creative and to develop rules and norms to solve their own problems. To please customers, for example, employees dress up on special days like Halloween and Valentine's Day and wear "fun uniforms"every Friday.In addition,they try to develop innovative ways to improve customer service and satisfac- tion.All employees participate in a bonus system that bases rewards on company performance, and employees own over 22% of the airline's stock. The entrance hall at company headquarters at Love Field in Dallas is full of plaques earned by employees for their outstanding performance. Everybody in the organization cooperates to achieve Southwest's goal of providing low-cost, high-quality service. The culture of excellence that Southwest has created seems to be working to its advantage.

Southwest increased its op- erating routes and profits every year and is the most prof-itable airline flying today. Contrast Southwest's CEO and culture with that of Value Line, Inc. Jean Buttner, publisher of the Value Line Investment Survey, fashioned a culture that the company's employees apparently hated. In her attempt to reduce costs and improve efficiency, she created instrumental values of frugality and economy that poisoned employees' attitudes toward the organization.Employees were told to sign in by 9 A.M. every day and sign out when leaving. If they faked their arrival or departure time, they could be terminated. Because at Value Line messy desks were regarded as signs of laziness or "unproductivity," Buttner required department managers to file a "clean surfaces report"every day,certifying that em- ployees did tidy up their desks.51 Salary increases were also kept as small as possible and the company's bonus and health plans were under tight rein. How have these values paid off? Many highly trained professional workers left Value Line because of the hostile atmosphere produced by these "economical" values and by work rules that devalued employees.Also,this turnover gen-erated discontent among the company's customers, who be-gan to complain.So bad did feelings between employees and Buttner become that employees reportedly put up a notice on their bulletin board that criticized Buttner's management style and suggested that the company could use some new leadership.Buttner's response to this message from a signifi-cant stakeholder group was to remove the bulletin board. Clearly, at Value Line no culture of cooperation between managers and employees exists.

Discussion Questions Questions

1. List the reasons why Southwest's and Value Line's cultures differ so sharply.

2. Could Value Line's next CEO copy Southwest's culture?

Reference no: EM13743483

Questions Cloud

Stakeholder analysis & impact : This week you learned about synthesis. For this week's assignment you will review the proposal you submitted in week 6 and utilizing the scholar-practitioner approach discussed in the lecture, update the proposal using synthesis. Ensure you cite y..
How blue-green algae evolved differently : How have cyanobacteria and blue-green algae evolved differently in terms of photosystems
Write a healthcare research paper on cip : Write a healthcare research paper on (CIP) Chronic Intestinal Pseudoobstruction
What were the strengths and weaknesses of the turner revolt : WHAT WERE THE STRENGTHS AND WEAKNESSES OF THE Turner Revolt? HOW DID BLACK WOMEN CONTRIBUTE TO THE EARLY ABOLITIONIST MOVEMENT?
Reasons why southwest''s and value line''s cultures differ : List the reasons why Southwest's and Value Line's cultures differ so sharply. Could Value Line's next CEO copy Southwest's culture
Determine the type of gamete genotypes : For each replication of activity 13.1 in which you determine the type of gamete genotypes from a particular parent, write out the parental genotype followed by its gamete genotypes
Describe the disease anorexia nervosa : Describe the disease anorexia nervosa. How is it treated? What is Crohn's disease? Describe the symptoms of this disease
Write a paper on typhoid fever : Write a paper on Typhoid Fever
How important is it for nations to control natural resouo : How important is it for nations to control natural resouo rely on foreign owned sourrces? Is chinas growth threatened if it needs tces of raw materials

Reviews

Write a Review

Operation Management Questions & Answers

  Compare and contrast the approaches to employee wellness

Compare and contrast the approaches to employee wellness at Pitney-Bowes and Johnson and Johnson. In making these comparisons, consider each of the following at both Pitney-Bowes and Johnson and Johnson

  What is going to be your competitive advantage

What is going to be your competitive advantage? What is the benefit you are trying to provide to your customers. Why are the activities you listed so important to your business? What problems might occur if you do not effectively and efficiently carr..

  What is the optimal order size for each of the 2 items

What would be the order quantity for ordering these 2 items together?

  David jones add value to the marketing system

How do retailers like David Jones add value to the marketing system? Does an on-line retailer like Scorpio add value in the same manner?

  Based on the learning curve

Based on the learning curve from (1), calculate the total time requires to produce the first 400 units, and the average time of the first 200 units.

  What recommendations would you make to enhance the

1. what makes the strategy formulation process unique from other decision that the organization makes on a daily basis?

  What are the potential causes of a projects failure

NASA has a record of both successful projects and failed projects. Discuss when a project is, at any organization, considered successful and when is it considered a failure? What are the potential causes of a project's failure? Give real-world bus..

  Burger king beefs up global operations

Prepare a 900 word paper discussing the attached case study "Burger King Beefs Up Global Operations" and incorporating answers to the questions

  Which function describes the expression of pleasure

In the closing of an interview, which function describes the expression of pleasure with the interaction and the projection of what will happen next?

  Explain how these differences underscore the need

Explain how these differences underscore the need for understanding diversity. From the information given, develop guidelines for embracing diversity.

  Question 1 you are the operations manager of a firm that

question 1 you are the operations manager of a firm that uses the continuous-review inventory control system. suppose

  Analyze political-social-ethical also legal differences

Analyze political, social, ethical also legal differences facing both organizations also determine impact se differences have on management decision making.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd