Review of Continental Airlines organizational structure Essay
1 ) Does the company design of this kind of corporation help or impede it in achieving its organizational goals? Continental Airlines utilizes a divisional framework relative to the management of its various entities.
This structural style is due to the complex characteristics of the aviation industry in addition to the autonomy required in working a 24 hour each day, seven time per week worldwide business. I believe, the structural design of this organization with the exception of Continental Share and Continental Micronesia really can not end up being structured in any other method, and therefore should be considered helpful. The airline organization is a remarkably tough business as it is. The costs of procedures in relation to income per passenger mile are very low.
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This airline as well as management staff have surfaced from personal bankruptcy and now take flight the newest fleet of aircraft above today. Chairman and CEO Gordon Bethune with his numerous years of experience in the aviation industry have provided the opportunity for Continental to obtain more accolades for customer satisfaction than some other airline. Obviously, this is far from the pre-bankruptcy days of this kind of airline which now happily stands as an industry leader. (No, I do not function, nor have I ever worked inside the airline industry). The organizational structures command includes various notables that contain grown up within the industry stuffing various command positions intended for other flight companies.
It seems like Mr. Bethune has set up an incredibly in a position team to steer this provider into the future. I carved away Continental Exhibit and Micronesia since they are essentially licensed businesses that take flight under the Continental flag.
Their particular existence inside the Continental friends and family does provide routes to smaller and far-eastern locations but are individually managed and thus not regarded (by me) as anything more than a profit focus on the company chart. installment payments on your If you were to modify this organization, what concerns would you have to consider and why? What would be the pros and cons of company change? If I had the power and encounter to impact change with this organization, the first concern I would consider would be loan consolidation of the airlines in general. We address this matter because I actually do not necessarily think that consolidation is all that it’s cracked about be.
Larger airlines imply bigger paperwork and smaller sized profit potential. Both of these convert to decreased customer satisfaction as well as the potential for employee dissatisfaction. Mister. Bethune prides himself in being one of the people, he is generally seen strolling in the port, shaking hands and realizing employees intended for doing an outstanding job.
Being a rated business pilot, he’s also seen on the air travel deck in the occasional 757 or 777. It is hard to assume how the current structure could possibly be improved past what it already is. He could be leading by example being a leader should. Should air travel consolidation continue, the main benefits would be to get the journeying public. The customer could potentially book a trip all over the world simply by calling the Continental reservation collection.
Until that customer comes up for the trip to commence, he may not even realize that he’s not even on the Continental flight. That’s the advantage of being big. The trip might be composed of legs flown by Northwest connecting to Varig connecting to Delta connecting to Qantas, and so forth This seamless travel encounter for the consumer should be considered since an upside to debt consolidation. The main downside might regularly be that the buyer has no thought who to call once things go wrong.
He might become stranded within a foreign property after his connection with China and tiawan Airlines terminated and he’s not sure of whom to make contact with to settle back on track. The 2nd issue I would consider can be mandatory retirement of fliers once they reach their sixtieth birthday. Organizationally, this government mandated coverage weakens the corporation. My best and most skilled pilots will be being forced away of my personal company.
If perhaps this insurance plan is unchangeable, I must find a way to keep this kind of incredible reference happy and employed in a few form or fashion that augments my own existing infrastructure. This drawback to my personal organization composition is a challenge that is away of my own control but directly affects the bottom line relative to people and organizational power. Reference: www.continental.com/company/investor.governance.asp