Qantas Airlines: Organizational Structure, Effectiveness, and Analysis

This report provides an analysis of Qantas Airlines' organizational structure, focusing on its matrix approach which incorporates both centralized and decentralized elements. The study identifies that Qantas utilizes a matrix structure, dividing management based on domestic and international business operations. While this structure allows Qantas to maintain its values and adapt to market differences, the report acknowledges limitations such as challenges in aligning different approaches and communication issues. Recommendations include implementing a flatter, more horizontal organizational structure and potentially adopting a line organizational structure, starting with domestic operations. The report concludes that while the existing structure meets business objectives, improvements are needed to enhance communication and employee engagement.

Running head: MARKETING FUNDAMENTALS
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Introduction
Effectiveness of the internal management of the organization determines the business
potentialities in the market. It is further relevant in the current business scenario as the intensity
of competition is more in the current time. It should also be noted that the diversity and
extensiveness of the internal organizational factors is more evident in the case of the large scale
global organizations due to their extensive business operations. Among all the relevant and
important elements of the organizational management, structure is a leading one (Winnubst
2017). Organizational structure refers to hierarchy designs being followed in the certain entity
where are each of the job roles is well defined and placed. Thus, depending on the organizational
structure of the company, internal stakeholders will follow the power distance and hierarchy
level and work accordingly.
Among the leading companies from Australia, Qantas airlines are the front runner with
having their operations across the world. It is reported that Qantas airlines are the third oldest
airline services in the world with being the distinction of state carrier of Australia. In their initial
years, Qantas was having their base in Australia only but with the growth in the business
operation, they are now having their operations across different countries and regions across the
world (Homsombat, Lei and Fu 2014). It should also be noted that with the expansion of their
global business, organizational structure of Qantas also got extended with the addition of more
hierarchy levels. They are following certain approach of organizational structure in their current
business operation and according to their objectives.

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This paper will discuss about the organizational structure being followed in Qantas and
the relevant factors. In addition, the effectiveness and limitations of the current structure of
Qantas will be identified and based on that factors, a few recommendations will be discussed.
Analysis of the organizational structure of Qantas
It is identified that Qantas is following both centralized and decentralized approach in
their global operation due to the fact that management is divided on the basis of domestic and
international business. The domestic and international market operation of Qantas is being
managed by different chief executives, which states that the operation is decentralized. However,
on the other hand, it is also identified that chief executives of both the domestic and international
operation of Qantas are accountable to the same board of directors that demotes centralized
approach in place (Fan, Wong and Zhang 2013). In addition, the style of business operation
being followed in the both domestic and international entities of Qantas is same and is being
strategized by uniform executive board of council. This can be concluded that centralization is
evident in the upper hierarchy level of Qantas, which got further decentralized at the bottom.
Evidence of both centralized and decentralized approach being followed in the
organizational structure denotes that matrix style of organizational structure is being followed in
Qantas. With the matrix structure in place, hierarchy level of Qantas starts from board of
directors under a CEO and then it further gets divided between the chief executives for
international and domestic operations respectively. Hence, from the third level of the hierarchy
level of Qantas, the approach is getting more decentralized (Van der Voet 2014). One of the
major purposes or objectives of Qantas is to the have the existing values and cultures intact in
their global business as well. However, on the other hand, they also have to adapt to the market

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factor differences in order to gain the competitiveness. In this case, matrix structure with having
provision of both centralized and decentralized approach is effective. Qantas is maintaining their
uniform value and culture in their global operation and they are similar across all their
operational facilities in different countries. However, with the separate and dedicated chief
executives are in place for respective international and domestic operation, market adaptability
rate is also high (O’Neill, Beauvais and Scholl 2016). These chief executives are responsible to
follow the existing organizational processes and aligning with the local market trends and
factors. Hence, employees are having the access to both standardized as well as adaptable
approaches in the workplace. This is meeting the organizational objectives of balancing different
factors.
Limitations with the existing strategies of Qantas
Apart from the effectiveness of Qantas in meeting the organizational objectives, there are
few limitations also being identified for the matrix system. One of the major limitations is the
challenges in aligning the different approaches. This is due to the reason that employees are
having the challenging situation in adapting to the different objectives of the operation executive
and board council. On the other hand, the chief executives of both international and domestic
operations are facing the trouble for aligning the objectives of the parent council with that of the
market situations (McEvily, Soda and Tortoriello 2014). The high level of intermediaries in the
hierarchy levels of Qantas is also posing challenges in the communication process between the
leadership and subordinates. It is effective for the top down approach, which is followed in
Qantas but bottom up approach cannot be implemented with the complex hierarchy system.
Qantas is having the need for bottom up approach in order to have the effective engagement and
involvement of the lower level employees.

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Recommendations
It is recommended that Qantas should make their organizational structure more flat and
horizontal in order to reduce the intermediaries from the hierarchy process. With the help of the
horizontal organizational structure, the communication process will get improved between the
stakeholders due to the reduction of the distance between the upper level management and the
lower level employees. Hence, the vision of the council will be properly communicated to the
lower level employees and vice versa. On the other hand, it is also recommended that line
organizational structure can also be effective for Qantas. This is due to the reason that with the
help of the line structure, independent decisions can be taken by each of the managers and will
ensure the market adaptability of the organization. Moreover, added independency of the line
managers will also enhance the tactical effectiveness in the organizational structure. However, it
should be noted that the new structure should be implemented on the domestic business of
Qantas in the initial stage and international operation in the following stage. This is due to the
reason that domestic business of Qantas is small compared to their international business and
thus risks associated with the implementation of new process will also be low.
Conclusion
This can be concluded that matrix organizational structure is being followed in Qantas
airlines with the inclusion of both centralized and decentralized approaches. It is identified that
the existing organizational structure of Qantas is effective enough in meeting their business
objectives. However, still there are few limitations identified that are posing challenges for
Qantas. Based on these limitations, a few steps are recommended in this report. These
recommendations include implementation of flat and line organizational structure. It is expected

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that implementation of these structures will help Qantas in enhancing the communication process
effectiveness and better connection between the upper level management and lower level
employees. The schedule of implementation is also included in this paper for the maximum
utilization and minimum risks involved in the process.

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Reference
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