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Southwest Airlines' strong internal culture that helps ensure that employees act in ways consistent with the company's strategy is an example of a(n)

A) informal management control.
B) formal management control.
C) compensation policy.
D) formal reporting structure.

1 Answer

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Final answer:

Option(B) Southwest Airlines' strong internal culture that influences employee behavior in line with company strategy represents informal management control, as it guides actions through unwritten norms and values rather than formal policies.

Step-by-step explanation:

The internal culture of a company such as Southwest Airlines, which aligns employees' actions with the company's strategy, would be an example of informal management control. This is because it refers to the unwritten rules, shared values, and norms that influence employee behavior without explicit formal policies or structures. Informal control relies on the company's culture to guide employees rather than through mandates or formal procedures, often promoting values like teamwork, employee empowerment, and service excellence. Such control is essential for maintaining organizational culture and ensuring that behavior is consistent with the company's objectives and desired outcomes.

Southwest Airlines' robust internal culture, aligning employee behavior with the company's strategy, exemplifies a "cultural control mechanism." This organizational culture, emphasizing values like customer service and employee empowerment, serves as a powerful tool to shape behaviors in accordance with the company's strategic goals, fostering consistency and cohesion throughout the workforce. This cultural control mechanism contributes to Southwest's success by promoting a shared understanding of organizational objectives and guiding employee actions in line with the company's strategic vision.

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