Strategy implementation

Strategy implementation

Strategy implementation depends on organizational design and structure, personnel, culture and control system. If the strategy is not compatible with all these aspects, the strategy will not be accomplished. This report discusses the manner in which Southwest Airlines (SWA) Company develops and utilizes organizational structures, human resource, culture and control system to achieve its goals and objectives. The company follows a culture of strategies to achieve better performance and benefit from the competitive advantage in the market.

                                                 Thesis statement and introduction                                 

Strategy implementation is a crucial feature that ensures the accomplishment of strategic goals and objectives in an organization.

Implementation uses different elements to ensure performance. These elements are; the organization structure, people, control system and culture present in an organization. Strategy is never full until an organization commits it to its activities. Putting the strategy into action through implementation is essential in order to affect organizational activities.  The paper looks at how compatible SWA organization design is to its strategies.  SWA invests on innovation and creativity to improve its effectiveness (Harrison, 2010). The design of the organizational structure, employees, culture and the control system enables the company to hold a competitive position in the industry. This report shows about SWA key structures and their ability to implement the organization’s strategies.

Southwest airline’s organizational design

SWA has a functional organization structure with the top levels of management making the company’s decision. Complete control of the organization is under the upper hand o the management. A functional structure ensures stability and efficiency of such a large and complex organization by ensuring all employees use a similar process (Hitt, 2007). SWA takes advantage of economies of large scale by using this type of organization structure. Organizational structure assigns duties and roles to employees and stipulates their correlation so as to ensure efficiency, quality and satisfaction of customers. These are the pillars for competitive advantage. SWA has three layers of management; the professional core, contractual fringe and a flexible labor force. It has mostly flat organizational level with minimal levels of hierarchy that keeps decision making to a handful of people. As a result, employees get decentralized to most responsibilities.

Key strategic control systems

Organizational control systems are essential in strategy implementation. A control system equips managers with motivational incentives for efficient employees’ delivery. It also assists managers to get feedback on employees and organizational structure (Luca, 2006). There are three organizational systems, which assist in controlling strategy implementation. These are;

Accounting and budgeting system

Accounting and budgeting system are crucial for implementation of a company’s strategy. The system should provide easily accessible data needed for strategy implementation failure to which it jeopardizes full implementation of a company’s strategy. SWA Company has flexible budgeting and accounting system that simplifies decision making that guarantees effective implementation of the set goals and strategies.

Information systems

The information technology (IT) system is significant in strategy implementation. IT keeps records of all transactions that include sales information between manufacturers and retailers. It also reorganizes logistics and distribution. SWA has a strong IT foundation that supports the company’s key processes. It aims at establishing an IT system that change but not reform the whole system that will take ages to adopt. It is based on emails covering all communication between employees in the company. The company tries to keep their IT infrastructure as efficient as possible. The strategy of using their own website for online reservation has placed the company at a highly competitive level. The IT system simplifies by just a number of clicks, the process of early booking, checking and replacement of seats as well as other complex functions. SWA uses technology as a tool for making the business agile and competitive in the airline industry.

Reward system

Rewards define the path that an organization will take to ensure implementation of objectives. SWA has managed to accomplish this by offering their employees with career development programs as well as other attractive packages like employee rewards. Such rewards include secondary employment benefits, profit sharing, free airline tickets, insurance and employee of the month selection. SWA reward system measures the attainment and achievement of goals and achievements. The wellbeing of SWA employees is taken proper care of by sending present packages to sick employees and new parents. This motivates the employees and retains them in the highly competitive airline industry.

Primary human resources concerns

The company depends on its high number of employees to implement its strategies. SWA employees work under a stable environment having same learning and growth opportunities. The high number of employees ensures the implementation of the airline strategies (Daft, 2007). SWA trains and employs up to 25000 staff every year. The employees are highly qualified professionals preferably with a strong passion in the airline industry. The sufficient number of people with perfect skills is essential or full implementation of strategies. SWA believes that their competitive advantage lies with their staff and how they are managed. The company encourages employees to deliver outstanding customer service while enjoying their work. SWA employees offer a remarkably productive labor force. They have a turnaround time of about 15 minutes as opposed to the overall industry time of 35 minutes. The workforces accomplish their duty efficiently as they use ewer personnel on the ground.  Full implementation of a company strategy depends on its ability to retain a substantial number of qualified employees over time. 

Cultural factors

An organization’s culture should fit with its strategy. The company has a unique culture that keeps the morale of its employees at exceptionally high level. The cultural system should accommodate a company’s strategy (Hill, 2010).

Shared values

The company emphasizes on an easy going corporate style. This allows SWA employees have an extensive operational independence. The management system outlines the performance that will ensure achievement of strategies. The airline views its employees as the number one customer, and the passenger as the second. This ensures the success in implementation of SWA’s strategy.

Norms and symbols

SWA airline aims to offer a unique and fun experience to all its customers. The staff can engage in humorous conversations with the passengers including the ‘first’ passenger who is the employee. The company emphasizes on creativity particularly when it comes to get relief from a high stress job.

Recommendations

The company only offers cost friendly so it doesn’t cater for first class section of passengers. So as to achieve maximum satisfaction for their customers, the airline should come up with this section as well as entertainment for this class of passengers. SWA should also clearly define responsibilities between employees and departments. This will provide a greater job flexibility that improves their labor productivity that will ensure ultimate implementation of the company’s strategies.

Conclusion

The success in strategy implementation in the southwest airline has been the centerpiece of this paper. The SWA Company has an organizational structure that ensures proper implementation of its strategies. It employs the best policies and programs that have ensured constant improvement of the company over the number of years it has been operating. Employees have managed to accomplish these strategies due to the high morale that the company offers. The company has managed to offer a culture that supports its strategy as well as a control system that measures and ensure strategy implementation.

References

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Harrison, Jeffrey. Foundations in strategic management. Mason, Ohio: South-Western Cengage

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Hill, . Strategic management theory : an integrated approach. Mason, OH: South-

Western/Cengage Learning, 2010.

Hitt, Michael. Strategic management : competitiveness and globalization. Mason, OH:

Thomson/South-Western, 2007.

M.G, Singleton, L.P., Taneja, S. and Toobs, L.A. (2009). Teaming as a strategic and tactical tool:

An analysis with recommendations. International Journal of Management, 26 (2), 320-334. Retrieved from EBSCO.

Luca, A., M. (2006). Organizational Design. Power Point Presentation.

Luca, A., M. (2006). Strategic Controls. Power Point Presentation.