Virgin Australia: Organizational Structure and Effectiveness Analysis

This report provides an in-depth analysis of Virgin Australia's organizational structure and its effectiveness. It explores the company's adoption of a matrix structure, examining its benefits such as resource coordination, specialization, breadth of skill, communication, and flexibility. The report delves into the role of leadership within the airline, highlighting the CEO's nonconformist approach and its influence on the organizational style. It also discusses the importance of organizational structure for business operations, the different types of organizational structures, and the airline's strategies. The report emphasizes the dual reporting lines within the matrix structure and how functional reporting takes precedence over product-based reporting. The analysis covers aspects like the airline's industry, history, development, and its success in a competitive market.

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ORGANISATIONAL STRUCTURE AND EFFECTIVENESS
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Introduction
Organizational operations and actions need to arranged and harmonized. These two ought to be
designed and planned appropriately to control the effective segment of labor, categorizing of
activities, coordinating and managing the function and role of the organization. Organizational
structure decides or determines the work allotment and grouping of events as the need,
objectives, and goals to be accomplished (Törnblom, 2018, p. 53). All functions and activities
are apportioned by the manager to accomplish the effectiveness and professionalism of the duties
assigned to each worker. It requires being divided in every department which results in the
effective operation of the managers and the organization. Organizational operations and activities
provide dedicated results, managerial control, and fascination of responsibilities, self-
determination, and development of managers. Structures of operations exist in three types;
functional, divisional and adaptive depending on which organization can be generated or created
for that matter. In addition to this, organization structure has three dimensions; they are
centralization, formalization, and complexity to obtain managerial efficiency. Other aspects
which affect efficiency are organizational strategies and practices, environmental classification,
member of staff distinctiveness and executive characteristics.
Industry and the company
The industry chosen in this case is Airline while the company the Virgin Group of companies.
This company is one of the largest business institutions globally. It has established itself into
various diverse features of the business industry. This study shall exclusively unravel and
examines the organizational structure and some other brief issues such as culture and how that
organizational structure has assisted the business to accomplish such success in the over-

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congested diverse industry. On the other hand, a great deal of the culture of the Virgin Australia
is inclined by the individual beliefs ideas of the founders and one of the major reasons why the
business is successful. The founders have respect for every employee and always take individual
responsibilities to make sure that his values are instilled among all of the staffs. Virgin Australia
has always practiced a decentralized structure in the business created by the founder through
providing the staffs with the power to take decisions thus decreasing bureaucracy. Employees of
Virgin are often urged to not only follow coherent actions and instead think on their own. This
study shall exclusively give a brief overview of the company and the history as well as
development. The organizational structure of the Virgin Australia will assist the audience to
comprehend the company’s procedures and business and how the values and belief system of its
founder has formed and transformed its structure.
About the Virgin Airline Australia
Virgin Australia Airlines is the second-largest airline in Australia after Qantas. It is the second-
largest airline based on the fleet size to use the Virgin brand. It is among the most successful
business in the world as at now in the world.
Airline Organization Structure
Aircraft business structure relies upon the size of the carrier and whether it is a traded on an open
market organization. The carrier organizations that offer shares of stock all feature a typical
hierarchical trademark. Generally, big aircrafts push workload duties and responsibility down to
a few particular subdivisions (Törnblom, Stålne & Kjellström, 2018, p. 63). These typically go
by names, for example, a name, for such as, flight tasks and support. Normally, some other
carrier controls each movement through a directorate and a CEO.

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Hub or Center organization
A big commercial airline is a multifarious entity. Australian airlines, specifically Virgin Airlines
always feature functions at hub/center landing field that are supplied by planes from other minor
airstrips. These points direct passengers to those collection points. Once in that location, travelers
thereafter go on to other locations on other air travel. The Virgin airline is a distinctive airline
that flies millions of passengers yearly to points around the world.
Senior Leadership
Almost all the airlines for commercial purposes feature a chief executive officer (CEO) who
supervises or oversees the functions of the business. There is also a panel of directors, with a
chairman and they frequently meet with the CEO and other subordinate in matters regarding the
operations (Lapointe & Vandenberghe, 2018). The chief executive officer is always given a chief
financial officer (CFO) and to help him or her with duties. Under these three people (CEO, CFO,
and COO), executive vice presidents (EVPs) always assist. The executive vice presidents
supervise a wide-based organization for example airline tasks and flight operations respectively.
Chain of Command
Wide-based airline companies such as Virgin Australia segregate duties and obligations up
among a number of less wide-based sectors or subdivisions. The airline does this due to the
features of the airline that can be multifaceted or complicated and technical. These complexities
or complications include functions such as flight operations and plane maintenance functions.
The federal government exceedingly regulates virgin Australia while under normal
circumstances; it manages all by pushing responsibility down to the front-line administrators.

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This function is implemented through executive vice presidents, senior vice presidents and it
follows that chain down to the manager.
Front-Line Functions/operations
Just like any other commercial airline, Virgin Australia airlines preserve power over everyday
functions through front-line administrators and their secondary subsidiary overseers. These
supervisors monitor small clusters of rank-and-file staffs while administrators can be accountable
for numerous or additional overseers. The line may be traced, from the mainly lowly ranked staff
working as a loader of an aircraft right up to the Chief Executive Officer’s level. Just like it is
with some large business, Virgin Australia airline has a strategic business activity that can be
turned into strategic business activities while the further one moves downstairs from the chief
executive officer.
Teamwork
Airlines for business feature a typical top-down organization on document. In most cases, lots of
functions within an airline, although, reckon on the achievement of other tasks inside that similar
airline. A captain will not be capable to fly the plane with few flight attendants on board, and as
a result, it is not common to notice or find a supervisor or director from one operational section
to another working directly with a manager. They often do this to resolve various daily
operational issues that emerge. In this regard, Virgin airline is not an exception since their staffs
work in a similar manner with other organizations.

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Importance of organizational structure
Business requires the structure to order operate and develop. In the absence of the structure, there
is very little, and few clarity as well as emphasis, no employee knows whom to report to, and
tasks are passed. The presence of structure is the main reasons why businesses are referred to as
organizations. They provide a stream of organized control and power in which each person ought
to have an apparent suggestion of what they accomplish, who they oversee, and whom they
finally account to in case there is anything (Henman, 2016, p. 605). Any business without a
prescribed organizational structure is calling for the problem. On the other hand, the fine thing is
that it is easier than ever to generate an institutional plan that may be shared and observed for
improved precision all through the corporation. However, sooner than the company does so, it
needs to cautiously evaluate the industry or operation and think about the position of the
company.
Types of organizational structures
There are several diverse types of managerial structures established in organizations.
Organizational structures may be elevated and high, in the sagacity that there is the amount of
level among admission point staffs and the privileged people of the corporation. On the other
hand, they may also be moderately flat and smooth, in the logic that they are simply a couple of
levels extricating the foundation from the pinnacle (Ortiz, LA, & Ford, 2017, p. 232). Based on
the objectives of the organization, the business should recompense the structure and separation of
work.

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Functional
The functional structure is also identified as bureaucratic or technical organizational structure;
the functional structure separates the organization on the foundation of specialty. It is the
conventional business with a sale subdivision, promotion, customer service section. The benefit
of this structure is that people are devoted to a solitary purpose. These are precisely definite roles
and maximum prospect uncertainty. The disadvantage is that it is demanding to smooth the
progress of strong communiqué between different sectors of the organization.
Divisional
The structure describes the organizations that makeup management in regards to various
products or projects.
3. Matrix
As it is the case of other structures, this one seems more confusing. However, it pulls benefits
from various couple formats. Virgin Airline Australia being one of the largest airlines across the
globe applies this structure in its organization and management. Under the structure, there are
multiple bosses and reporting lines right from the plane cargo loader to the CEO. It comes with
lots of flexibility and balanced decision-making. This structure divides the authority both by
operational area and by project (Siciliano, 2015). Every staff answers to two next supervisors
who are responsible for the given sector. Virgin Airline Australia is using this structure due to
the reasons stated below;
a) Resource Coordination
The structure enables airlines supervisors to emphasize on their areas of expertise. It delegates
hiring duties to the functional supervisors, training and managing staffs in every sector as the

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project supervisors’ majors on accomplishing the objectives of specific plans. The matrix
structure allows supervisors to emphasize on their fields of expertise.
b) Specialization
Deploying staffs in functional locations enable them to specialize in the fastidious field. It
enables the employees to specialize in one task in a given field of emphasis.
c) Breadth of Skill
Provide the employees with regular contact with other members of other functional locations
through an attachment in project teams. The connection in the project team allows the staffs to
develop skills and that’s the reason why Virgin Australia is applying the structure.
d) Communication
The constant communication through teamwork in the projects, the structure enables the flow of
information and resources to move swiftly between the functional areas.
e) Flexibility
The structure also enables the human resources to be shared supplely across different projects. In
this structure, functional locations preserve a stock of brilliant staffs to meet the requirements of
the project.
Leadership at Virgin Airlines Australia plays a vital purpose in the success of the company.
As explained by Stephen Robbins, leadership is "the capability to persuade a group toward the
accomplishment of goals" (Lee, 2016, p. 380). The explanation given is true and is being
implemented very liberally by Virgin Airlines Australia. It is impossible to describe leadership in
a perfect approach at Virgin Airlines Australia. Virgin Airlines Australia gives the word a
completely new meaning. The CEO is an outrageous individual who has built an exceptional

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organization and has been tremendously successful in an awfully competitive market. Virgin
Airline’s Australia CEO has a nonconformist approach when contrasted to the CEO's of other
main business. This style is reflected in the organization's style under the leadership of the CEO.
Airline’s strategy
Normally, a strategy is a plan of action that explains and describes recourse allotment and other
activities. Virgin Australia works under the principle aimed at enhancing its performance
regarding development and profitability. It helps both the company and the employees as well
because they are motivated to work under favorable working environment.
In conclusion, the company uses matrix as its organizational structure; however, it is clear that
matrix does not adhere or follow the conventional, hierarchical model. Staffs have dual
relationship, meaning that there is a functional reporting line. In this case, it is obvious that
functional reporting takes preference over product-based reporting.

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List of References
Törnblom, O (2018). 'Managing complexity in organizations: Analyzing and discussing a
managerial perspective on the nature of organizational leadership', Behavioral Development, vol.
23, no. 1, pp. 51-62. Available from: 10.1037/bdb0000068. [17 May 2018].
Törnblom, O, Stålne, K, & Kjellström, S. (2018). 'Analyzing roles and leadership in
organizations from cognitive complexity and meaning-making perspectives', Behavioral
Development, vol. 23, no. 1, pp. 63-80. Available from: 10.1037/bdb0000067. [17 May 2018].
Lapointe, É, & Vandenberghe, C (2018). 'Examination of the Relationships Between Servant
Leadership, Organizational Commitment, and Voice and Antisocial Behaviors', Journal of
Business Ethics, vol. 148, no. 1, pp. 99-115. Available from: 10.1007/s10551-015-3002-9. [17
May 2018].
Siciliano, MD (2015). 'Advice Networks in Public Organizations: The Role of Structure, Internal
Competition, and Individual Attributes', Public Administration Review, vol. 75, no. 4, pp. 548-
559. Available from: 10.1111/puar.12362. [17 May 2018].
Henman, P. (2016). 'Techniques and paradoxes in performing performance measurements:
concluding reflections', Policy Studies, vol. 37, no. 6, pp. 597-609. Available from:
10.1080/01442872.2016.1190447. [17 May 2018].
Lee, BK. (2016). 'Hong Kong Consumers' Evaluation in an Airline Crash: A Path Model
Analysis', Journal of Public Relations Research, vol. 17, no. 4, pp. 363-391. Available from:
10.1207/s1532754xjprr1704_3. [17 May 2018]

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Ortiz, LA, & Ford, JD. (2017). 'Choose Sunwest: One Airline's Organizational Communication
Strategies in A Campaign Against the Teamsters Union', Journal of Technical Writing &
Communication, vol. 37, no. 2, pp. 217-247.