Question

1. [300-500 words] Read the interview transcripts with Herb Kelleher (Southwest Airline) below and answer the following questions.
   1) How would you analyze Herb Kelleher’s personality and motivation? Use at least twoconcepts for each from class discussions in personalities and motivation, and explain what (which part of the transcripts) makes you think so. Also, discuss how such personality would contribute to the success of Southwest Airline.

   2) When it comes to negotiations between Southwest Airline and Boeing, who (whichcompany) is Southwest Airline’s BATNA?

   3) How would you analyze Southwest Airline’s organizational culture? Identify at least three cultural artifacts and two cultural values behind the artifacts. Also, discuss how such cultural values would contribute to the success of Southwest Airline.

   4) How would you analyze Herb Kelleher’s leadership? Use at least three concepts below to analyze his leadership, and explain what (which part of the transcripts) makes you think so.

1.Trait theory

2.Authentic leadership

3.Transformational leadership

4.Behavioral theory

5.Contingent theory

6.Ethical leadership

7.Servant leadership

8.Transformational leadership

Q: Herb chose James Parker and Colleen Barrett to succeed him as chief executive and president, respectively, in 2001, [and now] stays out of day-to-day affairs. He's now leading Southwest's lobbying in Washington, where airport security and terrorism insurance are on the industry's front burner. And hemaintains control of [Southwest's] schedule planning and aircraft acquisitions.

A: Boeing likes me a lot.

Q: Herb, you have amazing energy and drive. When did you start feeling so motivated?

A: I was always motivated.... Even the things I wasn't supposed to do, I undertook with great energy, dedication, and perseverance. In grammar school, high school, and college, I stayed up later than anybody else, talking about philosophy, of course [laughter], reading for my honors exams. You hear what I'm saying? I'm a good role model [laughter].

Q: Were there any keys to your getting a good education and then moving on from there? One of your parents?

A: My father died when I was 12. And one of my brothers was killed in World War II, in January of 1942, and my other brother went into the Navy...despite his heart murmur.People were very motivated by duty, honor, and country at that time. My sister went to New York to be an expediter for the RCA Co. So [at home] it was my mother and myself. She was extraordinary...a great father and mother. She treated me as an adult, and her interests were wide ranging. We would stay up till three, four, five in the morning, talking about business, politics, ethics. She was a splendid person, and she gave me a wonderful foundation.

Q: What got you interested in law school?

Q: Did you like law?

Q: How did you meet the Texan you ended up marrying?

Q: After you got married, you got to know Texas a little?

A: I figured that I could put off working for three more years [laughter]. No, I took an aptitude test in college, and it said there were three things I'd be fairly decent at: Being a journalist, an editor, or a lawyer.

A: I enjoyed it greatly. Going to law school and practicing law was exceedingly valuable training. Find out what the facts are, not gossip. Identify what the issue is, then find a resolution. That's helpful in anything you do in life.

A: Joan was going to Connecticut College in New London. Our team played the Coast Guard Academy in New London, and she was a blind date. We went to dinner with a friend of mine and his girlfriend, and it turned out that we [men] didn't have any money. So we had to ask our dates to pony up for dinner. We called Joan "JP" after that, for JP Morgan.

A: I did. I was working for the New Jersey Supreme Court, which had essentially the same schedule as college -- a couple of weeks off at Christmas and Easter and a month off during the summer. So we would spend all that time in Texas. Joan never said a word to me about moving. [But] I wanted to be an entrepreneur, and I went home one night and said: Let's move to Texas to see if I can start a law firm or a business. She was standing at the sink, and tears started to roll down her cheeks. Andso I came to Texas, and it worked out okay [laughter]. I was going to try cases, so I was constantly practicing [talking like a] Texan. [At the] gas station: "Howdy! You mind filling 'er up?" I knew I had made it when I was at a buffet at the University of Texas, and the fellow behind me said: I know where you're from. And I thought: Oh shit! And he said: West Texas, right?

Q: Let's flash back to the beginning, when you and your client talked about creating Southwest. In those days, the industry was regulated. The only way to create an airline was [to use] a loophole...to fly intrastate.

A: It was a loophole. PSA [Pacific Southwest Airlines] had started as an intrastate in California. We looked at it as a role model. Trans-Texas was a monopoly carrier in small cities, and Braniff was a monopoly carrier in big cities. They had some of the highest fares in the U.S. So we decided, as a fellow from Allstate said -- Allstate was originally going to finance us but dropped out after 3 1/2 years of litigation -- he was asked on the stand: Why did you invest in this company? He said: Because we could see that they were striking at the soft underbelly of the commercial airline industry [laughter].

Answer 1

1) Herb Kelleher's personality is enterprising with the presence of all entrepreneurial leadership traits, are clearly defined within the trait model of leadership indicating the presence of traits essential for effective leadership. Herb Kelleher exhibits exceptional self-motivation based upon the equity theory of motivation believing that the results and outcomes for any action depend upon the effort and time invested by an individual. The enterprising personalities and entrepreneurial ability is clearly depicted in the ability since childhood to optimally utilize all available resources. Right from childhood, the level of motivation and aptitude for hard work with the belief that great achievements required great effort is visible in the interview even with the humorous overtones and an effort to downplay the extremely dedicated, diligent hard work that went into achieving what Herb Keleher has.

2) Southwest Airlines BATNA or best alternative to a negotiated agreement is Airbus as it provides the A320 which Southwest has clearly expressed an interested in.

3) Southwest is a creative organization depicts a culture which promotes creativity resulting in innovation due to the facilitation of the required flexibility within the environment encouraging individuals to express their uniqueness and celebrate being different and thinking different rather than following a set of rules within an extremely disciplined environment. Minimization of disciplinary processes with strict guidelines and deadlines can be counterproductive to innovation. The basic rules to protect rights of individuals are implemented and adequate trust and loyalty provided with accountability expected from employees to not misuse the laxity in rules but appreciate it by exhibiting adequate self-discipline by developing emotional intelligence. Provision of an environment which facilitates professional growth and achievement along with a clan culture promoting expensive social interaction to create an atmosphere of cooperation and collaboration with the entire organization working as a single team to achieve personal and organizational goals.

Personal life is considered an essential part of the employees inseparable from the professional by giving it equal respect and consideration resulting in flexible working hours along with compassionate consideration of all needs due to empathy being implemented in every department as a major interpersonal interaction element. Not only do employees feel satisfied and flourish within such an environment with an exemplary leadership motivating them to excel beyond expectations and provide customer service in a similar manner. The inclusive management results in trust and loyalty being major factors that help create the optimal environment collective commitment towards achievement of goals due to the facilitation of transparency with the accountability along with equality and togetherness to encourage teamwork within operations and focus upon collectivism rather than individualism. The focus upon ethics in every action is strongly implemented with the company displaying and setting standards for duty of care and values.

Besides the considerable competitive advantage attained by an absolutely motivated human resource with the inimitable quality of ownership of actions due to the emotional state within the company and commitment towards the leader and the organization providing self-worth and self-belief along with achievement for the employees. The employees create extreme value for the organization by being constantly motivated towards performance excellence.

4) Trait theory- The existence of certain traits which define leaders from childhood.

I was always motivated.... Even the things I wasn't supposed to do, I undertook with great energy, dedication, and perseverance. In grammar school, high school, and college, I stayed up later than anybody else, talking about philosophy, of course [laughter], reading for my honors exams. You hear what I'm saying? I'm a good role model

Transformational leadership- The dynamic personality and the confidence not only to accept change but to lead change to undergo the required transformation for improvement or better value creation through improved efficiency and optimal utilization of available resources by recognizing the need for the change.

I wanted to be an entrepreneur, and I went home one night and said: Let's move to Texas to see if I can start a law firm or a business. I enjoyed it greatly. Going to law school and practicing law was exceedingly valuable training. Find out what the facts are, not gossip. Identify what the issue is, then find a resolution. That's helpful in anything you do in life.

Contingency theory The ability to exploit available opportunities through expert identification and adoption of the optimal strategy in alignment to successfully utilize them by adopting adequate flexibility in approach facilitating adaptability to every situation as per the circumstances. The style adopted suits the requirement.

It was a loophole. PSA [Pacific Southwest Airlines] had started as an intrastate in California. We looked at it as a role model. Trans-Texas was a monopoly carrier in small cities, and Braniff was a monopoly carrier in big cities. They had some of the highest fares in the U.S. So we decided, as a fellow from Allstate said -- Allstate was originally going to finance us but dropped out after 3 1/2 years of litigation -- he was asked on the stand: Why did you invest in this company? He said: Because we could see that they were striking at the soft underbelly of the commercial airline industry [laughter].