ORGANIZATIONAL ENVIRONMENT

Organizational Environment of Delta Air Lines

Table of Contents

Introduction3

Discussion3

Interaction Between Leadership And Followers4

Communication Networks5

Negotiations Process5

Goals and structure6

SWOT Analysis6

Organizational Culture And Innovation7

Goals And Structure8

Organizational Design10

Power12

Conclusion14

References15

Organizational Environment of Delta Air Lines

Introduction

The global airline industry suffered enormously from the effects of the economic downturn, recovering in 2010 and maintaining positive growth of 10.3% in terms of global value in 2011, with the US market recording 11.4% growth the same year.

In order to discuss organizational environment and behavior in Aviation Industry, Delta Air Lines was selected. Delta Air Lines is one of the biggest airlines in the world having 78,392 employees. It presents scheduled air transportation for cargo and passengers all over the world and in the USA. The merger of Northwest Airlines allowed it to develop its customer services and attain its considered aims. However, intense competition may pressurize the operating margins of Delta. Intense competition also affected the internal environment and employees relations of the company. At the Air Line, Average hourly wages for the scheduled air transportation industry are moderately higher than the national average. Most airline employees are members of unions which characterize their particular roles, including flight attendants, pilots, ground crew, and mechanics. This paper discusses the organizational environment of Delta Air Lines.

Discussion

Organizational Environment is not a firmly defined matter. Theorists disagree as to what actually constitutes an organization's environment and the types of issues that should be included in an assessment of organizational environments. Yet, while there are numerous definitions of the concept of environment, the underlying theme is a focus on those factors external to the organization. Environment is “anything not part of the organization itself.” Other definitions are more focused and look at the specific institutions or forces that affect organizational performance, but over which organizations have little or no direct control.

As the distinction between the general and specific environment implies, not all organizational environments are the same. Such environments vary from the nearly static (e.g., no new competitors or technological breakthroughs; little social or political pressure) to the very dynamic (e.g., rapid, often unpredictable change as experienced in the shakeout in the world of e-commerce). In some instances, however, the transition from a relatively static to a rapidly changing environment can be quite sudden, as evidenced by recent events in the publishing industry. While the major chains have dominated the industry in the recent past. (Trice, 2003)

Interaction Between Leadership And Followers

Since 2007, Mr. Anderson has been the CEO of Delta Air Lines. He formerly served at UnitedHealth Group as the Executive Vice President. He has devised many policies which positively affected the company. (Deal, 2009)

With the help of its employees, the company has recorded strong financial performance in recent years. The company's revenue increased at a compounded annual growth rate (CAGR) (2006-10) of 16%. The revenue increased from $17,532 million in FY2006 to $31,755 million in FY2010. Delta witnessed an increase of 23.6% in its FY2009 revenues over FY2008 and an increase of 13.2% in its FY2010 revenues over ...