Compare And Contrast The Standard Airline Organizational Functional Structure Vs Business Model
1303 Words6 Pages
What are the differences in the design models? Compare and contrast the standard airline organizational functional structure model with the hybrid structure based on independent business units. Does the hybrid structure provide too much differentiation? How would support structures be the same or different? To what extent are either models mechanistic vs. organic? Why?
Airline companies have used the diversification strategy to enhance their profits when compared with their competitors. However, it is important to select the most appropriate business model. Functional structure model compels the heads of departments to obtain permission of the CEO before taking important decisions, thereby affecting the profitability of the organization. The CEO is not able to concentrate on the most important aspects of the organization, as he or she needs to analyze the issues including sales, recruitment, and marketing. Conversely, the hybrid structure with individual business units is more effective, as it grants autonomy to them to make a decision, thereby assisting them to improve their performance. When compared with the functional model, the hybrid model gives flexibility to the organization. It can modify its strategy to deal with the changes in the market conditions. On the contrary, the functional model does not allow an organization to respond to the changes in the market conditions. In addition, the hybrid business model allows organizations to save money by