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Case Study. The founder of the Flight Centre Ltd, Graham Turner claims that people are hard wired to work in small groups within larger groups.

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´╗┐Flight Centre Graham Turner structured the company as families, villages and tribes. The creation of this unique system has also worked to the company?s advantage. It provides incentives based on outcomes. The Flight centre?s system is based on the idea that people work best in their preferred environment within the larger organization rather than trying to fit them into the company?s mould. The employees believe ?what gets rewarded gets done.? they are hard workers but also enjoy the many social aspects of the company including buzz nights, award ceremonies and team get-togethers. This essay would focus on how flight centre has structured with the four aspects of the organization structure. Explains how flight centre has integrated the Mintzberg?s five elements to its structure. This essay would also highlights the roles of functional and social specialization. Finally, the metaphors used by flight centre would be discussed. Structure of Flight Centre The importance of organizational structuring and restructuring to organizational effectiveness cannot be over emphasized. Effective organizational design or organizational structuring pays immense dividends, no matter how large or small the organization is (HRODC, 2006). The founder of the Flight Centre Ltd, Graham Turner claims that people are hard wired to work in small groups within larger groups. To understand this unique structure the four aspects of organization structure, complexity, formalization, centralization and coordination, can be used. Complexity refers to the way in which the organization is divided into different divisions, departments, groups, or individual roles, each with its own tasks and responsibilities. ...read more.


In any organization, one of the above five (strategic apex, operating core, techno structure, middle line and support staff) would be dominant. The organization is formed according to the dominating element. When the strategic apex is dominant, control is centralized and it forms a simple structure (Beshears, 2006). At the Flight centre, functions the strategic apex appear to be more dominant than the other aspects. Firstly, the powers of the organization are dispersed to some level at the flight centre, regional office or the tribal country administrates the brands (corporate traveler, flight centre and student flights) which are retail shops. They also facilitate training and recruitment, buying holiday packages and other employee related services to the village and can be considered as more centrally controlled. Secondly, the SWOT teams and the administrative teams are specialized; all other families do a standardized work, which involves servicing customers and selling products. The structure of flight centre could also be considered flat because it only has three levels and the operating core reports to their respective managers. Some advantages include clear accountability and flexibility to respond to the issues of the customers. Decision-making at the Flight centre appeared to be limited. The tribal country makes decisions regarding administrative the technical matters. The tribal country facilitates brands and other employee related services to the villages and families. Moreover, shop managers make decisions at the family level although the travel consultants are empowered. ...read more.


High-rise of overseas shops would increase the number of tribes, villages, families and employees. Programmed coordination is common in the flight centre. A head office team coordinates administrative services and marketing. As the flight centre is geographically dispersed, information technology enables them with quicker and more effective communication and customer support. Social specialization that is required by the IT professionals includes attending to faults 24-hours because flight centre is worldwide organization where they deal with traveling and ticketing Decentralizing the authority to the travel consultants would reduce the probability of information overload and would facilitates rapid response to all customers. As employees are bonded up in small teams like families, it gives them identity where they belong. It would also create close relationships within families and also gives the manager a clear picture of the capabilities of individual staff. Moreover, makes decisions more effective. Reference: Anderson, C. (1988). Management: Skills, Functions and Organization Performance. USA, Allyn and Bacon. Argote, L.(1982). ?Input Uncertainty and Organizational Coordination in Hospital Emergency Units,? Administrative Science Quarterly (27:3). Beshears, F. (2006). Mintzberg's Taxonomy of Organizational Forms, Retrieved September 07, 2006, from http://socrates.berkeley.edu/~fmb/articles/mintzberg/ Baumard, P. & Starbuck, W. (2006). Where Are Organizational Cultures Going?. Retrieved September 07, 2006, from http://pages.stern.nyu.edu/~wstarbuc/where.htm Robbins, S & Barnwell, N. (2002). Organization Theory. (4th Ed.).Australia, Pearson HRODC (2006). Organization structure, Retrieved September 07, 2006, from http://www.hrodc.com/ORGANISATIONAL.DESIGN.htm Luthans, F. (1986). Organizational Behaviour. Singapore: McGraw-Hill. University of California. (2005). Public Relations, Advertising & Marketing - What's the Difference? Retrieved September 07, 2006, from http://career.berkeley.edu/Article/021011a.stm Morgan, G. (1997). Images of Organization, (2nd Ed), Sage Publications, Thousand Oaks. ...read more.

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