Principles of Management (PoM)
Organizational Behaviour (OB)
Managerial decision making
This case describes a challenging strategic decision about downsizing in Southwest Airlines. On the one hand, the company must reduce costs (after all, it is a low cost
airline) and is presented an opportunity to do so as a result of the success of its e‐ommerce
initiatives whilst on the other hand, the company is committed to provide its employees
with a stable work environment and has a culture of job security and treating employees
Apply the rational model of decision making and contrast it with other models. Identify and classify types of organizational decision.
Explain how decision maker characteristics impact upon decision making within organizations.
Decisions about whether, when and how to downsize (restructure).
Southwest Airlines Co. («Southwest») is a major domestic airline that provides primarily short
haul, high-frequency, point to point, low fare service. Founded in 1971 and headquartered in the US,
Southwest is a large low cost airline. Airlines rely on key inputs such as aircraft, fuel and labour
in order to operate.