Southwest Airlines Essay

1897 words - 8 pages

Team D - Control Mechanisms PAGE \* MERGEFORMAT 8
Southwest AirlinesSouthwest Airlines is a forceful organization that has been made popular by many people. The corporate culture is so popular that this organization has gained attention. This type of culture makes it easier for people committed and wants to be innovated and grow as a leader, to want to work for a company such as this. At this organization, it will be easy for someone to support and promote the mission of the airline. The corporate culture was established by planning that was effective as well as having organizing and leadership strengths involved in the implementation. The control function is the most crucial part to maintaining the culture as well as the success of the airline. The organization must establish a system to monitor the overall performance and outcomes of the company, to ensure that the organizational goals are being met. When the company comes across an outcome that is not met or that they are not happy with, then the control mechanism are used to address the issues and then corrective action is to be taken. The control mechanisms used at Southwest Airlines are management audits, finance control, behavior control and market control strategy.Southwest Airlines is known for its groundbreaking planning, steadfast organizational skills, leaders who are working together, and well-organized monitoring and controlling. Southwest Airlines has a routine of planning and controlling, which in the end has made this company a success. Southwest Airlines has continued using these two functions because they have realized the importance of them. Southwest Airlines uses different methods of monitoring and controlling to determine that the organizational goals are met and to allow for improvements or changes if necessary. As I mentioned before, the four types of control mechanisms that Southwest Airlines uses are management audits, finance control, behavior control, and market control strategy. These controlling mechanisms give the leaderships at Southwest Airlines a look into the day to day operations at the airline (southwest, 2010).Management Audits is when all types of systems within an organization are evaluated to check its effectiveness and efficiency. In addition some organizations perform external audits of other companies and internal audits to themselves. An example of an external audit can be with CPA companies, which are solicited to perform financial audits for an organization. Another scenario would be when companies perform financial audits to competitor due to various reason:Investigation of other companies' financials with the purpose of possible merger or acquisition. This happens a lot among airlines, whenever there is a possibility of merging.To find out the strength of a company that will be use as supplier or contractorTo uncover competitors' strength and weakness to better manage the competitive advantage of such organization.In the case of Southwest the...

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