Control Mechanisms at Southwest Airlines

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Control Mechanisms used at Southwest Airlines Company University of Phoenix MGT 330 Management: Theory, Practice and Application June 30, 2008 Southwest Airlines Company Southwest Airlines is a vibrant organization due in part to its positive corporate culture. This culture attracts dynamic workers to the organization whom are encouraged by management to be innovative and grow as leaders while supporting and promoting the mission of the airline. This culture at Southwest Airlines was established through effective planning, organizing, leadership and control. To maintain this culture and the success of the airline, the function of control mechanisms is vital. Systems must be put in place to monitor performances and outcomes to ensure that the organizational goals of Southwest Airlines are being met and exceeded. When an outcome is not one that is desired, the control mechanisms are used to address the issues and allow for corrective action to be taken. Various control mechanisms are used at Southwest Airlines and this paper will address the Beaucratic, Market and Clan control mechanisms used. It will also concentrate on the effectiveness of these control mechanisms, examine the positive and negative reactions to the use of these controls and finally explain how these controls impact the four functions of management at Southwest Airlines. Beaucratic Control Southwest Airlines makes good use of bureaucratic control methods in very positive ways. Because of the effective management of the airline, Southwest “has not experienced a loss since its 2nd year of operation” (Butler, 1993). Southwest was the only major airline to earn a profit in the first quarter of 2008, and they plan to continue growth while other major airlines are downsizing to lower costs (Koenig, 2008). This is a testament to the bureaucratic controls that Southwest Airlines have

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