Hrm 310 - Change Management - Reasons for Change

Reasons for Change

HRM/310 Change Management

Reasons for Change

The volatile nature of the aviation industry means change is commonplace for most airlines. How airlines respond to external or internal challenges is often similar as well. In the article Luv and War at 30,000 Feet, S.C. Gwynne describes how Southwest Airlines has cemented its reputation as one of the most transformational organizations in the last 30 years (Johnston, 2012) by approaching change differently and consistently aligning organizational changes and strategy choices with its "mission of love" (Gwynne, 2012, para. 1). Since 1971, Southwest Airlines has done more than manage to survive in an environment of grueling non-stop competition, severe economic stress, increased regulation, heightened security, and falling stock markets. The company established itself this year as the fourth most admired company in the world according to Fortune magazine (Gwynne, 2012). Success came from recognizing the company flies people not just planes. At Southwest, people come first starting with employees. In terms of how the company handles change, Southwest found a unique way of using Theory O's softer approach to create increased shareholder and economic value (Leban & Stone, 2008).

Most of the challenges Southwest Airlines faced came from the external environment--issues that they had little control over, like unscrupulous industry and political tactics, sky rocketing fuel costs, and the events of 9/11 (Gwynne, 2012). However, Southwest co-founder, Herb Kelleher, did control the company's responses. He pursued litigation when necessary to ensure the ability to compete, he hedged against high fuel costs by buying fuel reserves, and management re-strategized to become a low-cost leader in industry focusing on niche markets when fuel costs dropped (Johnston, 2012). The company saved money by using one type of jet, flying directly to low traffic airports, and turning planes around faster than any other company (Gwynne, 2012). The airline consistently added new cities and routes, driving down airfares and increasing traffic, and focused on delighting customers with quality service and humor (Gwynne, 2012). Kelleher and his management team anticipated and planned for difficult scenarios but its Southwest's employees and culture that comprise its competitive advantage. That is why management always made sure employees understood the challenges faced, and the company overcame its underdog status by working together and focusing on people and outstanding customer service.

Gwynne's article reveals several significant change scenarios. One of the most notable challenges the industry faced was following the events of September 11, 2001 when people were terrified to fly and new security measures forced technological changes as well as cost-saving moves. Whereas other airlines were reducing labor and cutting flights in response to huge financial losses, Southwest's new CEO, Jim Parker, maintained the company's no-furlough