Flight Centre's Unique Organizational Structure and Culture Report

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This report provides a comprehensive analysis of Flight Centre Limited's organizational structure and culture. It begins by defining organizational culture and structure, emphasizing their interconnectedness and impact on a company's image and operations. The report then delves into Flight Centre's specific culture, highlighting its egalitarian approach, emphasis on teamwork, and performance-based reward systems. The company's unique structure, based on teams and ownership models, is also examined. The core of the report focuses on how Flight Centre's structure and culture are intertwined, demonstrating how the company's values, such as valuing employees and delivering excellent customer service, are reflected in its management strategies and organizational layers. The report concludes that Flight Centre's integrated approach serves as a competitive advantage, fostering trust among employees and customers, leading to high employee satisfaction and improved market performance, supported by the company's numerous awards and recognitions.
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Organization structure and culture
Flight Center Limited
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Table of Contents
Introduction:...............................................................................................................................................1
Organizational culture and structure:..........................................................................................................1
Culture and structure of flight centre:.........................................................................................................2
How unique structure of flight centre has intertwined in its culture:.........................................................2
Conclusion:..................................................................................................................................................3
References:..................................................................................................................................................4
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Introduction:
Organization structure and culture is the basic and very essential element of the organization.
This is because both these concepts project the actual image of the organization and what the
organization is made for (Zheng, Yang and McLean, 2010). This study discusses about the
various aspects of organizational structure and culture and the relation between the same. Flight
centre is the company that has been discussed in order to learn the conceits. This also focuses on
the flight centre’s structure and culture and how they are intertwined with each other. The study
helps the learners to learn about the relation between the structure and culture of the organization
and their impact on each other.
Organizational culture and structure:
Organization culture can be defined as the beliefs and the values that have been adopted by the
members of the organisation by mutual understanding. These values and the beliefs of the
organization define the meaning of world for them and way they behave in the world.
Organization culture is framed s that all the members if the organization perceives the things and
behaves in the surrounding in the similar fashion (Ismail Al-Alawi, Yousif Al-Marzooqi and
Fraidoon Mohammed, 2007). Framing strong organization culture in the organization provides a
proper framework to conduct the process in the organization. This creates uniformity and thus
provides a systematic aspect and environment to the company. On the other hand, organization
structure is about the system that involves planning, processes and a particular pattern of action
that are being conducted to achieve the organizational gaols (Yao-Sheng, 2007). It is more
related to the processes and the hierarchical structure of the company rather than their beliefs
(Schein, 2010). Organizational structural deals with the way the organization is managed and the
processes are aligned in order to achieve the targets that are being set for the organization in a
particular deadline. Organizational structure and culture are related to each other. This is because
it is the values of the members of the organization that has their impact on the structure of the
organization framed (Abouzeedan and Hedner, 2012). Organizational culture affects the structure
of the organization by acting as these of framing the top management strategies that are being
made to shape the organization as a whole.
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Culture and structure of flight centre:
Flight centre is the Australian based company that deals with travel services. The company has
won many awards for its performance and also for being the best company to work with because
of its structure ad unique cultures (philosophies, 2017). As far as the organizational culture of
Flight Centre is considered, it has been analysed that the company believed in having a strong
corporate culture. The company has been awarded three times in the list of Hewitt’s best
employer. The culture that has been followed in the company is known as egalitarian culture that
involves information sharing, performance basis reward system, Team work, etc. the values of
the company also is the main element of its culture and the value of FCL suggests that people are
the main component of their company and thus they respect and care for their employees as well
as their customers (Luthans and Doh, 2009). They believe in delivering great service to their
customers with various options. Unity and egalitarian is the basis of the values the company
believes in.
On the other hand, if the organization structure of the company is considered, it has been
analysed that the structure of the company is simple, lean and based on teams. The whole staffs
are divided and forms the teams such as villages, families and tribes. This is because the
company thinks that the social units are still the part of their society. The business model of the
company is based on ownership (Alvesson, 2016). This is because it allows the employees also
to be the owners of the company by participating in some of the share schemed introduced by the
company. “One bet way” approach is used to conduct the process in the company. The people
believe that there is always one best way to complete the process and thus standardization in the
process is maintained in the company. Incentives are also part of the organization structure of
flight centre. People get incentives on the basis of decide KPI’s related to the performance of the
teams and the individuals.
How unique structure of flight centre has intertwined in its culture:
It has been identified that the organization structure of the company is very unique in nature. The
organization structure and culture of Flight centre limited complements each other because the
values and the beliefs of the company is very much aligned with the process and the management
strategies of the firm. The culture of the company is value their employees which is aligned with
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the concept of providing ownership to the employees by share schemes. This suggests that what
the company believes, it also practice. Another cultural value of the company is to work in a
team. This is also aligned with the structure and the organizational layers of the company that is
divided into villages, families and tribes (philosophies, 2017). Analysing the structure and the
culture of the company clearly defines that there is great impact of the cultural aspect of
organization on the structure of the same. Customers are the major element that needs to be
focused by the organization. The company quoted in its values that they believe in serving what
they advertise. To justify the statement, the company provides customers with the variety of
travel options according to their own choices. They design and customize the travel for them.
These associations of the culture and the structure of the organization depicts that flight centre is
the company that has intertwined culture and structure (Dunford and Palmer, 2002). This act as
the competitive advantage for the company as this generates trust amongst the people for the
company that the company is delivering what it is claiming. It is not only the customers but the
employees are also happy. The company is listed as best employer in Hewitt’s three times. This
is the achievement for the firm and also suggests that the employees at that place are satisfied.
Conclusion:
It has been concluded from the discussion that fight centre is the firm that is one of the best
employer. This is because of its culture and the structure that is intertwined with each other. The
company believes in the values and practice these values in its structure as well. This acts as the
competitive advantage of the firm also enhances its performance in the market. This develops the
trust among the employees towards the firm and the employees are getting what is claimed by
the company (Giacalone and Rosenfeld, 2013). The culture of the organization has some of the
values that is about caring for the people whether it be employees or customers, providing
ownership to the employers by providing them share. This suggests that association and the link
between the culture and the structure of the organization provides benefits to the company in
sorder to perform better.
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References:
Abouzeedan, A. and Hedner, T., 2012. Organization structure theories and open innovation
paradigm. World Journal of Science, Technology and Sustainable Development, 9(1), pp.6-27.
Alvesson, M. ed., 2016. Organizational culture. Sage.
Dunford, R. and Palmer, I., 2002. Managing for high performance? People management
practices in Flight Centre. Journal of Industrial Relations, 44(3), pp.376-396.
Giacalone, R.A. and Rosenfeld, P. eds., 2013. Impression management in the organization.
Psychology Press.
Ismail Al-Alawi, A., Yousif Al-Marzooqi, N. and Fraidoon Mohammed, Y., 2007.
Organizational culture and knowledge sharing: critical success factors. Journal of knowledge
management, 11(2), pp.22-42.
Luthans, F. and Doh, J.P., 2009. International management: Culture, strategy, and behavior.
New York, NY: McGraw-Hill Irwin.
philosophies, V, 2017. Values and philosophies | Flight Centre. [online] Flight Centre.
Available at: https://www.flightcentre.com.au/careers/values-and-philosophies [Accessed 26
Aug. 2017].
Schein, E.H., 2010. Organizational culture and leadership (Vol. 2). John Wiley & Sons.
Yao-Sheng, L., 2007. The effects of knowledge management strategy and organization structure
on innovation. International Journal of Management, 24(1), p.53.
Zheng, W., Yang, B. and McLean, G.N., 2010. Linking organizational culture, structure,
strategy, and organizational effectiveness: Mediating role of knowledge management. Journal of
Business research, 63(7), pp.763-771.
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