Memo

What is corporate culture? At its most basic, it's described as the personality of an organization, or simply as "how things are done around here." It guides how employees think, act, and feel. Corporate culture is a broad term used to define the unique personality or character of a particular company or organization, and includes such elements as core values and beliefs, corporate ethics, and rules of behavior. Some companies have a strong and extremely evident corporate culture; one example of this is Southwestern Airlines.

Southwest Airlines have done several things to define its unique personality. They have published mission statements that promote the companies values and vision. Southwest Airlines have published two value statements; one for its customers and one for its employees. The customer statement reads: 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. This statement suggests that as a Southwest Airlines customer, one will be treated well and will be happy with the service that they receive. The employee mission statement doesn't veer to far away from this same principle. "We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. Creativity and innovation are encouraged for improving the effectiveness of Southwest Airlines. Above all, Employees will be provided the same concern, respect, and caring attitude within the organization that they are expected to share externally with every Southwest Customer." This statement reinforces the opinion that as a consumer, one would be treated very well by a Southwest Airlines employee, the logic is simple; if the employee is happy then the customer will be happy.

Southwest Airlines also has a few "slogans" that, especially as a marketing campaign, emphasize the company's mission statements. "Stop Searching. Start Traveling." Is one of the slogans that is plastered all over the companies website. This is a very clever slogan as it reiterates to customers that there is no reason to search for another airline. Everyone knows that searching for the right airline to fly on is a hassle, all one needs to do is eliminate that "hassle" and start traveling.

The many different work environments that Southwest Airlines has is another clue to the culture of the company. Southwest employs a vast range of positions, from corportate positions like human resourses and other administrative roles to customer service roles like a flight attendant, Customer service agent, and piolet, and of course technical positions like ramp agent, aircraft appearance technician and A&P mechanic. One of the benefits to working in a devirse comanpy like this is the training provided for all of these positions. Southwest Airlines has over 34,000 employees most of which have worked for the company for less than 5 years. Southwest's work environment is free of rigid work rules. However, this is not to say that Southwest is lax in its training procedures. Each major work area has its own training dept (ie flight attendants vs operations). Southwest has implemented a strategy concerning "front line supervisors". These supervisors are 'working supervisors' which makes the employee to supervisor ratio approximately 1:10 or 1:12. This happens to be the lowest in the airline industry. Front line supers work side by side with their employees and practice problem solving skills daily. (Smith, 2004)

Southwest used a unique role model for its business practices. Southwest believes that respect, fun and unyielding support from management and colleages results in long term value and commitment. While Southwest's competitors attempt to please their employees with large salaries, Southwest has realized that this does not produce long term commitment. This all starts with Southwest's recruiting. During the recruiting procedure Southwest managers look for attitude and personality; they look for people who do not take themselves to seriously, but take their jobs very seriously. (Wood, 2004)

Part of the way that Southwest secures long-term commitment is from their explicit reward and status symbols that it provides to its employees. Each month Southwest Airlines selects an outstanding employee to be the Star of the Month in Southwest Airlines Spirit Magazine. Our 34,000+ Employees have a special quality - Southwest Spirit - which has helped Southwest Airlines to earn five consecutive "Triple Crowns" in 1992, 1993, 1994, 1995, and 1996 for the best baggage handling, fewest Customer complaints, and best on time performance, according to statistics published in Department of Transportation (DOT) Air Travel Consumer Reports.

Reward programs include the profit sharing plan, the 401(k) plan, and stock options. Participation in the Profit Sharing Plan is offered to all eligible Employees. The plan is funded by Company contributions to profit sharing accounts. Company contributions are made when the Company meets profitability goals set each year. The 401(k) Plan is designed to help Employees to prepare for the future. Eligible Employees may contribute up to 50% of their pay to the plan on a pretax basis. A Company match is offered based on Employee groups. Rollovers are accepted from the Employee's former employer's qualified plan. Stock options: This plan was specially designed to allow Employees to share in the success of the Company. Through the plan, Employees may invest in Southwest Airlines Co. stock through payroll deductions. Employees pay only 90% of market value for the stock. The Company pays broker commissions on stock purchases. (www.swamedia.com)

Employees (and customers) can also take pride in the legend of Herb Kelleher, one of the founders of Southwestern Airlines. Herb Kelleher chain-smokes, loves Wild Turkey whiskey and is often