Understanding how organizations are managed has fascinated not just academia but the business world. Daft (2009) breaks down the concept of management as the “attainment of organizational goals in an effective and efficient manner through planning, organizing, leading and controlling organizational resources” (p 22). This assignment will focus on how organizing, how managers establish working relationships among employees to achieve goals. The aspect of organizing is quite insightful in the case of the family owned Jetwing Group, with over 40 years of experience in the fast changing travel industry. For a deeper understanding this assignment will focus on one of the companies – Jetwing Travels, a destination management company. Jetwing Travels is an intermediary between the agents abroad selling holiday packages and the location based suppliers of hotels, transport and other activities. They are primarily in the business of low cost and high volume tourist traffic. One of the main goals is getting sales business and this is measured by the topline only. In order to critically examine the aspect of organizing at Jetwing Travels, the assignment will look at the existing organizational structure and identify its strengths and weaknesses. Next, an organizational design and factors affecting structure will be considered. Finally the assignment makes recommendations for improvements and draws a conclusion based on the findings.
1. THR ORGANIZATIONAL STRUCTURE AT JETWING TRAVELS
Jetwing Travel’s organizational structure on the next page will show how associates use resources to achieve goals by formally breaking down the division of tasks and the reporting relationships. We will next examine how structure at both a macro and micro level operates, how authority and rules are broken down.
Figure 2.1 Organizational Structure at Jetwing Travel|
Customer-based divisions which has internal HR, accounts, transport & sales| Source: Author|
Figure 2.1 portrays that Jetwing Travels has a hybrid organizational structure dominated by a functional structure and complemented by customer based divisions. Based on an interview with a long serving manager it was found that Jetwing Travels in response to join ventures created two customer-based divisions so as not to disrupt the existing organizing. This is supported by Ban & Company’s study of 57 cases of re-organizing that they argue may have destroyed value and would disastrous given Jetwing Travel’s high turnover (Blenko, Mankins & Rogers, 2010). The management view is that ideally geographical divisions and functional departments are turned into a majority of customer-wise divisions. However, as the nature of business and mix of big and small players has changed, this found to be unrealistic. If we look more closely the geographical divisions do not cover the entire world, but only where Jetwing Travels has secured business or sees business to be growing. One must note that geographical divisions where business is lost are never closed. Both the macro and micro structure come together when one draws formal lines of authority. Overall one finds that authority is centralized at Jetwing Travels for better control. This is because valuable information is held by the top management and in turn top management is financially accountable when undercutting competitors to win agents.
Figure 2.2: Complex Micro Structure|
Figure 2.2: Complex Micro Structure|
Another feature organizing is how formal rules are dealt with. Rules are said to give organizations an impersonal quality by reducing the influence of emotions. This is applicable to Jetwing Travels where sales associates have numerous rules and regulations for requesting the support services of accounts, HR and transport. One finds that Jetwing Travels has a complex micro-structure because each...