¶ … firms, the organizational structure will have an impact on how well they are able to achieve operational objectives and increase profit margins. In the case of Southwest Airlines, they have redefined the way carriers are interacting with customers and the kinds of services that are provided. This is illustrating how the kind of structure will influence the way a firm is able to reach out to stakeholders. To determine the kind of model that Southwest is utilizing requires looking at: the organizational structure, how it functions and the design. Together, these different elements will show how Southwest Airlines is able to use them to increase revenues and meet the needs of various stakeholders.
Describe the organizational structure of Southwest Airlines. Compare and contrast that structure with two different organizational structures.
The organizational structure that is used by Southwest Airlines is a hybrid model. This is where the firm is utilizing functional and divisional structures in correlation with each other. The reason why, is to allow each segment the ability to function independently. While at the same time, is helping each unit to coordinate and communicate more effectively with the others. (Writing, 2012) ("Southwest Airlines," 2012)
Under a functional model, each segment is subdivided based upon their ability to perform specific functions. This means that each unit will be functioning independently without communicating and coordinating with everyone else. In general,...
Organizational Structure There is one structural issue that will be examined. The hierarchical structure of CI is causing problems that affect the contingency factors most important to the CI organization including, Strategy, Sales cycle, and culture (Cengage, 2010). In the case study, Daly has assessed internal and external weaknesses and threats due to strategic direction. The analysis reveals two internal threats to the organization that stem from the hierarchical organizational structure and
Org Structure The Boardman Management Group has a simple organizational structure consisting of a single unit. All of the management is located in one facility, which is situated adjacent to the primary area of business. The group uses this structure because most of its business is the Baderman Island Resort. It is not known if the Group even manages the original portfolio of cottages and hotels, but there are some offsite
For this reasons, employees report higher level of supervisory trust in such organizations. 'The effect of interactional justice on supervisory trust is more pronounced in organic organizations." (p.301) the reason for this is that in mechanistic organizations, supervisors are constrained by rigid rules and hence they are allowed to develop as close an interaction with subordinates as in organic structures. The second article which occupies a central place in business
Resolution often needs to be imposed from above. A third type of communication problem at firms operating a matrix structure is that of corporate culture clash. In the case of Spectrum, the regional head office may wish to impose upon the different product functions the head office corporate culture. Each of the functional firms, however, may have its own culture and may find that it benefits from certain cultural differences.
There is also the use of project teams and committees that are in large part on a volunteer basis although the leaders that should or must be involved in certain projects are not having to have their arms twisted to get engaged. For example, a project that involves the accounting department would clearly need to involve the leadership and other senior members of the accounting team on one level
They might have a different structure at higher levels where more innovation and creativity is required, but at the lower levels everything is based on a machine-like system -- that system is what the franchisees pay for. Another type of organization is the professional bureaucracy. This type of organization also has a high level of bureaucracy to its nature, but differs from the machine bureaucracy in that there is also
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