Organisational structure and effectiveness1 Contents Introduction...........................................................................................................................................2 Structure of Qantas...............................................................................................................................2 Leadership style.....................................................................................................................................3 Strategies within Australia or overseas markets....................................................................................4 Comment on company’s structure and strategies.................................................................................5 Conclusion.............................................................................................................................................5 References.............................................................................................................................................6
Organisational structure and effectiveness2 Introduction Qantas was established in Queensland back in 1920. It is Australia’s largest domestic and international airline. Qantas is one of the strongest brands of Australia. It is regarded as the world’s long distance airline. The Qantas airways limited is a public company and is ranked 19 out of 2000 top companies of Australia (IBIS World, 2017). The company has gained reputation for excellence in safety, reliability, engineering and preservation and customer service. The main business of company is transportation of customers by using two airline brands, Qantas and Jetstar. Qantas is a broad network and includes four travel classes whereas Jetstar is a low fare airline (O'Connell & Williams, 2016). The company also operates subsidiary businesses including other airlines and Q catering. Qantas operate regional, domestic and international services. The company employs more than 30,000 people and 93% of them are based within Australia (Qantas, 2018). This report includes the structure of Qantas. The leadership style used at Qantas has been explained. Further the strategies of company within Australia or overseas market have been discussed. Finally the comments are made as remark on the structure and strategies of Qantas. The company operates in the aviation industry which is highly regulated. The company actively contributes for the development of public policy. Structure of Qantas The structure, strategies and leadership styles are important in determining success of Qantas airways. The organisation find it easy to succeed in activities by having a clear understanding of it’s objectives, goals, mission and vision. It also ensures the continuity of the services of company both in short and long run. Qantas airline is one of the oldest international airlines. The company stands at third position in terms of fleet size and market share. The organisational structure is important in determining and allocating responsibilities, power and roles (Raman, Damaraju & Joshi, 2014). The company has enabled a mechanism for the flow of information at all the levels of management. The structure of company depends on it’s strategies and objectives. The commonly used structures are either centralised or decentralised. The Qantas has adopted features of both centralised and decentralised organisation structure. Qantas has various subsidies which are headed by different executives. The executives are imparted with authority, important roles and responsibilities to be exercised for operations (Nguyen, Mia, Winata & Chong, 2017). The employees of Qantas have been managed in such a way that the execution of duties is in line with goals and objectives of company. The management of company is divided into two different businesses, Qantas domestic and Qantas international. The business is managed by chief executive officer. These both businesses have divided their commercial and operational functions. The structure has been adopted by company in such a way that focus is given on strategies of company. These strategies transform the international business of company as well as improve the domestic business of company (Iyamu & Mphahlele, 2014). The nature of the organization structure of Qantas shows that it has adopted matrix type of structure. The management of company comprises of the members of corporate governance as well as executive top management team. The higher level of management is responsible for setting up practices and policies. It adopts and implements policies in the organisation. There are various departments under the top leadership such as project management, administrative management,
Organisational structure and effectiveness3 functional management and commercial business administration (Upadhaya, Munir & Blount, 2014). Various teams work with these departments to ensure that the company is able to achieve it’s goals and objectives. The management of Qantas comprises top level, secondary level and ground staff. The company has an exclusive management hierarchy represents divisional functioning. At the very top there is board of directors which comprises not more than eight members. It is supervised by a president. The board team is divided into various committees like audit, health, environment, nominations, health and security. The management of both Qantas domestic and international ensures running of business independently according to the priorities and market conditions. The company has different CEO for each division. There are also non-executive directors who present board and ensure proper functioning of company. In the secondary level, the company comprises business executive team (Gray, O’Dochartaigh & Rannou, 2016). This team looks after the policies, strategies and implementing plans. Other than working as a link between ground staff and face of company, the team enables various technical actions which are necessary for the company to function. These are divided into almost twelve departments such as fiancé, domestic, jetstar, resources, technology, legal affairs and more. The secondary level comprises managers and air professionals. They perform tasks required for the proper skill development which is not performed by the staff of ground level. The ground staff is the lowest hierarchy of business management. It consists of members who work as the ground staff. This staff is appointed at airports, planes, runways etc. The airline is able to work efficiently due to the hard work and support of the ground staff. Qantas is complying with all laws and regulations to conduct business activities. The company has proved from it’s functioning that it has an appropriate corporate governance framework. It certifies protection and enhancement of shareholder’s value which makes it the most efficient airline working at domestic and international level. Leadership style The leadership style is essential in determining direction and success of company. It is one of the effective management aspects in motivating employees and implementing strategies and plans at organisation. There are various leadership styles used in Qantas such as authoritarian, participation and delegation. The authoritarian style causes managers ordering people to do what is expected from them. The participative style involves the leader and employees in the decision making process. The opinion and view of employees are considered but finally the decision is taken by the leader (Mishra & Tripathy, 2016). The delegative style authorises employees to take decision by their own. It should be observed that the leader will always be responsible for the decisions taken by employees of organisation. Qantas airlines considers all the aspects of leadership styles to be used in the management of it’s operations and activities. The top management of company is very acute while handling management of diverse cultures of employees and reviewing views of shareholders. The company need to be rational at the time of making decisions otherwise it can result in conflicts in both stockholders and employees. In some cases company need to be authoritative when the employees and trade unions perspectives are not favorable. The decisions can also result in criticism from stockholders including loyal customers and experts. For instance, the closure of company in Singapore faced a lot of criticism from stakeholders. According to some views, the decision of chief
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Organisational structure and effectiveness4 executive officer was more of authoritative than democratic. It shows the applicability of authoritative leadership style of company. Other than the authoritative, the management also represents attributes of participative and delegates leadership style (Shaffner, Mills & Helms Mills, 2017). The leadership style of Qantas includes elements such as vision; Qantas airlines understand that the management should have vision for the team to be effective. The top management leadership of company is based on providing direction and vision to support employees of company in order to execute tasks. The management team of Qantas is diversified and comprises individuals from different fields. The team of company provides variety of skills, knowledge and views essential for enhancing the management of company (Renko, El Tarabishy, Carsrud & Brännback, 2015). The management of company also provides various traits of leadership needed to make effective management of company. The employees of organisation are the source of important information in the decision making process. The employees are involved in daily basis activities of company and can better observe the progress of company. The company recognises the importance of employees so management always consult with employees before taking any decision. The decision making process is also helpful in encouraging and motivating employees. Qantas believes that the leaders should be open minded, honest and collaborative. This technique can be helpful in motivating employees and working towards achieving goals and objectives of company (Strom, Sears & Kelly, 2014). Strategies within Australia or overseas markets The strategy of Qantas comprises it’s vision and mission. The strategies act as the roadmap to company for the attainment of objectives. Qantas initiates various strategies depending on the nature of problem. Usually the companies apply different strategies in both domestic business entities and international operations. In the same way Qantas airlines make use of different strategies for both Australian market and foreign market. Qantas maintains it’s competitive strategies even in the competitive environment. The company faces competition from Virgin Airline. Despite these situations the company is continue to apply price war marketing strategy (Homsombat, Lei & Fu, 2014). The company target the low cost customers where it has effectively performed it’s competitors. The company applies the concept of portfolio diversification to increase base of domestic markets as well as in international markets. It has increased growth opportunities of company in the local market. There are also some other strategies applied by company to it’s marketing activities. Cost efficiencies, it is the goal of company to reduce cost to the lowest level and improve profit margins of organisation. The cost efficiency strategy has been practised by company as a marketing technique. It is just because profitability is one of the competitive advantages which a company can use to surpass competitors in the market. The company realises the importance of cost efficiency and applies to penetrate domestic and international market. The other marketing activity, segmentation of brands has divided the company into various brands. It aids company to cater need of several group of customers. This strategy has helped company to cater needs of different category customers like corporates, leisure and business travels. The company has made use of marketing activity like expansion to less airline dominated region. It has helped company to establish itself in the new regions before entry of new players in the market. For instance, the expansion of company operations in Asia has helped to cover a large market share than the competitors.
Organisational structure and effectiveness5 Comment on company’s structure and strategies An effective organisation structure helps company to establish suitable strategies as a part of roadmap. The roadmap is helpful in achieving mission, vision and objectives of company. The company’s organisation structure is designed in such a way that it caters interest of each stakeholder (Dias, Dos Santos, Martins & Isabella, 2014). It has been achieved by management by adopting various leadership styles. The leaders are able to act situationally to address problem by the incorporation of various leadership styles. The leadership used by company is transformational and situational and is an effective leadership style. The structure and strategies of company reveals success in the domestic and global market (Mols, 2018). The analysis of Qantas’s marketing strategies it has been assumed that different type of business should adopt different marketing strategies. The performance and progress of company seems to have applied appropriate and suitable strategies. It can be attributable in both domestic and international markets. The company has gained a significant market share by the implementation of these strategies. Qantas has gained a substantial percentage of market shares. It can be concluded from the essay that Qantas has applied effective marketing strategies. This is the reason that the company has been able to rule both domestic and international market (Doreswamy, Kothari & Tirumalachetty, 2015). Conclusion The structure, leadership style and strategies are important aspects in the success of company. Qantas airline has adopted these concepts efficiently and seems to run smooth in industries and markets. The company has been leading successfully by practising these aspects into consideration. The structure is helpful to company in allocating resources and assigning duties efficiently for decision making. On the other hand, leadership style helps to lead an organisation by providing direction. Finally the marketing strategy determines the profitability and competitive advantage of Qantas.
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Organisational structure and effectiveness7 Upadhaya, B., Munir, R. and Blount, Y., 2014. Association between performance measurement systems and organisational effectiveness.International Journal of Operations & Production Management,34(7), pp.853-875.