Final answer:
Southwest Airlines' flat organizational structure and robust corporate governance system involving the board of directors, auditing firm, and large shareholders promote efficiency, transparency, and accountability, benefiting the company's operations and shareholder interests.
Step-by-step explanation:
The current organizational and operational structure, along with the system of corporate governance, provides multiple benefits for Southwest Airlines. Southwest's organizational structure is designed for efficiency and is characterized by a flat hierarchy, which facilitates swift decision-making and promotes a culture where all employees are valued and encouraged to contribute ideas. Such a structure enhances communication and employee morale, leading to better customer service and operational efficiency. Corporate governance at Southwest involves the board of directors, the auditing firm, and large shareholders, which together create a robust system of checks and balances. This system encourages transparency and accountability, ensuring that the company operates in the best interest of its shareholders and customers.The board of directors is responsible for overseeing the company's executives and crafting strategic plans. The auditing firm plays a crucial role by providing an independent review of the financial records, adding another layer of credibility to the financial disclosures. Large shareholders, including mutual and pension funds, have significant influence and act as external monitors of the company's performance and governance practices.In conclusion, the tight integration of organizational structure and corporate governance supports Southwest Airlines by promoting transparency, accountability, and efficiency in operations. This not only enhances shareholder value but also contributes to the overall success and resilience of the airline in the competitive aviation industry.