Organizational Operations and Structure
Discuss about the Organisational Structure And Effectiveness of Airline.
Organizational operations and actions need to arranged and harmonized. These two ought to be designed and planned appropriately to control the effective segment of labor, categorizing of activities, coordinating and managing the function and role of the organization. Organizational structure decides or determines the work allotment and grouping of events as the need, objectives, and goals to be accomplished (Törnblom, 2018, p. 53). All functions and activities are apportioned by the manager to accomplish the effectiveness and professionalism of the duties assigned to each worker. It requires being divided in every department which results in the effective operation of the managers and the organization. Organizational operations and activities provide dedicated results, managerial control, and fascination of responsibilities, self-determination, and development of managers. Structures of operations exist in three types; functional, divisional and adaptive depending on which organization can be generated or created for that matter. In addition to this, organization structure has three dimensions; they are centralization, formalization, and complexity to obtain managerial efficiency. Other aspects which affect efficiency are organizational strategies and practices, environmental classification, member of staff distinctiveness and executive characteristics.
The industry chosen in this case is Airline while the company the Virgin Group of companies. This company is one of the largest business institutions globally. It has established itself into various diverse features of the business industry. This study shall exclusively unravel and examines the organizational structure and some other brief issues such as culture and how that organizational structure has assisted the business to accomplish such success in the over-congested diverse industry. On the other hand, a great deal of the culture of the Virgin Australia is inclined by the individual beliefs ideas of the founders and one of the major reasons why the business is successful. The founders have respect for every employee and always take individual responsibilities to make sure that his values are instilled among all of the staffs. Virgin Australia has always practiced a decentralized structure in the business created by the founder through providing the staffs with the power to take decisions thus decreasing bureaucracy. Employees of Virgin are often urged to not only follow coherent actions and instead think on their own. This study shall exclusively give a brief overview of the company and the history as well as development. The organizational structure of the Virgin Australia will assist the audience to comprehend the company’s procedures and business and how the values and belief system of its founder has formed and transformed its structure.
Types of Organizational Structures
Virgin Australia Airlines is the second-largest airline in Australia after Qantas. It is the second-largest airline based on the fleet size to use the Virgin brand. It is among the most successful business in the world as at now in the world.
Aircraft business structure relies upon the size of the carrier and whether it is a traded on an open market organization. The carrier organizations that offer shares of stock all feature a typical hierarchical trademark. Generally, big aircrafts push workload duties and responsibility down to a few particular subdivisions (Törnblom, Stålne & Kjellström, 2018, p. 63). These typically go by names, for example, a name, for such as, flight tasks and support. Normally, some other carrier controls each movement through a directorate and a CEO.
A big commercial airline is a multifarious entity. Australian airlines, specifically Virgin Airlines always feature functions at hub/center landing field that are supplied by planes from other minor airstrips. These points direct passengers to those collection points. Once in that location, travelers thereafter go on to other locations on other air travel. The Virgin airline is a distinctive airline that flies millions of passengers yearly to points around the world.
Almost all the airlines for commercial purposes feature a chief executive officer (CEO) who supervises or oversees the functions of the business. There is also a panel of directors, with a chairman and they frequently meet with the CEO and other subordinate in matters regarding the operations (Lapointe & Vandenberghe, 2018). The chief executive officer is always given a chief financial officer (CFO) and to help him or her with duties. Under these three people (CEO, CFO, and COO), executive vice presidents (EVPs) always assist. The executive vice presidents supervise a wide-based organization for example airline tasks and flight operations respectively.
Wide-based airline companies such as Virgin Australia segregate duties and obligations up among a number of less wide-based sectors or subdivisions. The airline does this due to the features of the airline that can be multifaceted or complicated and technical. These complexities or complications include functions such as flight operations and plane maintenance functions. The federal government exceedingly regulates virgin Australia while under normal circumstances; it manages all by pushing responsibility down to the front-line administrators. This function is implemented through executive vice presidents, senior vice presidents and it follows that chain down to the manager.
Just like any other commercial airline, Virgin Australia airlines preserve power over everyday functions through front-line administrators and their secondary subsidiary overseers. These supervisors monitor small clusters of rank-and-file staffs while administrators can be accountable for numerous or additional overseers. The line may be traced, from the mainly lowly ranked staff working as a loader of an aircraft right up to the Chief Executive Officer’s level. Just like it is with some large business, Virgin Australia airline has a strategic business activity that can be turned into strategic business activities while the further one moves downstairs from the chief executive officer.
Functional Structure
Airlines for business feature a typical top-down organization on document. In most cases, lots of functions within an airline, although, reckon on the achievement of other tasks inside that similar airline. A captain will not be capable to fly the plane with few flight attendants on board, and as a result, it is not common to notice or find a supervisor or director from one operational section to another working directly with a manager. They often do this to resolve various daily operational issues that emerge. In this regard, Virgin airline is not an exception since their staffs work in a similar manner with other organizations.
Business requires the structure to order operate and develop. In the absence of the structure, there is very little, and few clarity as well as emphasis, no employee knows whom to report to, and tasks are passed. The presence of structure is the main reasons why businesses are referred to as organizations. They provide a stream of organized control and power in which each person ought to have an apparent suggestion of what they accomplish, who they oversee, and whom they finally account to in case there is anything (Henman, 2016, p. 605). Any business without a prescribed organizational structure is calling for the problem. On the other hand, the fine thing is that it is easier than ever to generate an institutional plan that may be shared and observed for improved precision all through the corporation. However, sooner than the company does so, it needs to cautiously evaluate the industry or operation and think about the position of the company.
There are several diverse types of managerial structures established in organizations. Organizational structures may be elevated and high, in the sagacity that there is the amount of level among admission point staffs and the privileged people of the corporation. On the other hand, they may also be moderately flat and smooth, in the logic that they are simply a couple of levels extricating the foundation from the pinnacle (Ortiz, LA, & Ford, 2017, p. 232). Based on the objectives of the organization, the business should recompense the structure and separation of work.
The functional structure is also identified as bureaucratic or technical organizational structure; the functional structure separates the organization on the foundation of specialty. It is the conventional business with a sale subdivision, promotion, customer service section. The benefit of this structure is that people are devoted to a solitary purpose. These are precisely definite roles and maximum prospect uncertainty. The disadvantage is that it is demanding to smooth the progress of strong communiqué between different sectors of the organization.
Divisional Structure
The structure describes the organizations that makeup management in regards to various products or projects.
As it is the case of other structures, this one seems more confusing. However, it pulls benefits from various couple formats. Virgin Airline Australia being one of the largest airlines across the globe applies this structure in its organization and management. Under the structure, there are multiple bosses and reporting lines right from the plane cargo loader to the CEO. It comes with lots of flexibility and balanced decision-making. This structure divides the authority both by operational area and by project (Siciliano, 2015). Every staff answers to two next supervisors who are responsible for the given sector. Virgin Airline Australia is using this structure due to the reasons stated below;
Resource Coordination
The structure enables airlines supervisors to emphasize on their areas of expertise. It delegates hiring duties to the functional supervisors, training and managing staffs in every sector as the project supervisors’ majors on accomplishing the objectives of specific plans. The matrix structure allows supervisors to emphasize on their fields of expertise.
Specialization
Deploying staffs in functional locations enable them to specialize in the fastidious field. It enables the employees to specialize in one task in a given field of emphasis.
Breadth of Skill
Provide the employees with regular contact with other members of other functional locations through an attachment in project teams. The connection in the project team allows the staffs to develop skills and that’s the reason why Virgin Australia is applying the structure.
Communication
The constant communication through teamwork in the projects, the structure enables the flow of information and resources to move swiftly between the functional areas.
The structure also enables the human resources to be shared supplely across different projects. In this structure, functional locations preserve a stock of brilliant staffs to meet the requirements of the project.
Leadership at Virgin Airlines Australia plays a vital purpose in the success of the company.
As explained by Stephen Robbins, leadership is “the capability to persuade a group toward the accomplishment of goals” (Lee, 2016, p. 380). The explanation given is true and is being implemented very liberally by Virgin Airlines Australia. It is impossible to describe leadership in a perfect approach at Virgin Airlines Australia. Virgin Airlines Australia gives the word a completely new meaning. The CEO is an outrageous individual who has built an exceptional organization and has been tremendously successful in an awfully competitive market. Virgin Airline’s Australia CEO has a nonconformist approach when contrasted to the CEO’s of other main business. This style is reflected in the organization’s style under the leadership of the CEO.
Airline’s strategy
Normally, a strategy is a plan of action that explains and describes recourse allotment and other activities. Virgin Australia works under the principle aimed at enhancing its performance regarding development and profitability. It helps both the company and the employees as well because they are motivated to work under favorable working environment.
In conclusion, the company uses matrix as its organizational structure; however, it is clear that matrix does not adhere or follow the conventional, hierarchical model. Staffs have dual relationship, meaning that there is a functional reporting line. In this case, it is obvious that functional reporting takes preference over product-based reporting.
List of References
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Lapointe, É, & Vandenberghe, C (2018). ‘Examination of the Relationships Between Servant Leadership, Organizational Commitment, and Voice and Antisocial Behaviors’, Journal of Business Ethics, vol. 148, no. 1, pp. 99-115. Available from: 10.1007/s10551-015-3002-9. [17 May 2018].
Siciliano, MD (2015). ‘Advice Networks in Public Organizations: The Role of Structure, Internal Competition, and Individual Attributes’, Public Administration Review, vol. 75, no. 4, pp. 548-559. Available from: 10.1111/puar.12362. [17 May 2018].
Henman, P. (2016). ‘Techniques and paradoxes in performing performance measurements: concluding reflections’, Policy Studies, vol. 37, no. 6, pp. 597-609. Available from: 10.1080/01442872.2016.1190447. [17 May 2018].
Lee, BK. (2016). ‘Hong Kong Consumers’ Evaluation in an Airline Crash: A Path Model Analysis’, Journal of Public Relations Research, vol. 17, no. 4, pp. 363-391. Available from: 10.1207/s1532754xjprr1704_3. [17 May 2018]
Ortiz, LA, & Ford, JD. (2017). ‘Choose Sunwest: One Airline’s Organizational Communication Strategies in A Campaign Against the Teamsters Union’, Journal of Technical Writing & Communication, vol. 37, no. 2, pp. 217-247.