The Prussian
Stecknadelkopf
- Joined
- Oct 24, 2005
- Posts
- 671
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My point is the short term mentality of most managment groups in the airlines. Even though i dont work for Southwest they were losing over a million a day after Sept 11 and still didnt furlough. I wish United or any other group had that mentality.
No corp needs to regularly lose money but i think there needs to be a longer term goal.
Shaping Southwest's Organizational Culture Contd...
Thriving Under Pressure
Post-September11, 2001, when most airlines in the US went in for massive layoffs, Southwest avoided laying off any employee (Refer Exhibit VII.) Even before the September 11 crisis hit, Kelleher had explained his philosophy regarding layoffs in an interview to Fortune magazine. He said, "Nothing kills your company's culture like layoffs. Nobody has ever been furloughed [at Southwest], and that is unprecedented in the airline industry. It's been a huge strength of ours. It's certainly helped us negotiate our union contracts. One of the union leaders….came in to negotiate one time, and he said, "We know we don't need to talk with you about job security." We could have furloughed at various times and been more profitable, but I always thought that was shortsighted.
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You want to show your people that you value them and you're not going to hurt them just to get a little more money in the short term. Not furloughing people breeds loyalty. It breeds a sense of security. It breeds a sense of trust. So in bad times you take care of them, and in good times they're thinking, perhaps, "We've never lost our jobs. That's a pretty good reason to stick around."...