This assignment going to be produces an analysis of an Asians airline in Korea and develops a basic organizational analysis. About Asians airline. There two big full service airline in Korea, which are Korean Air and Asians airline. Asians has its headquarters in Asians town in Seoul, South Korea. And this airline established on 1 7th of February 1 988. (Asians Airlines). Asians airline has consistently been recognized for its high level of services with winning the award for Best Airline Worldwide in Airport Service Quality in 201 0 and took a third place in 201 1 .
The awards from one of big aviation industry research company ashtray. And in 201 2, Asians airline has got new title from ashtray best airline in Asia. As well known, Inches airport win the ward for Best Airport Worldwide in Airport Service Quality for seven consecutive years. Asians is one of member of star alliance. And Asians airline has code sharing with members of star alliance. The code share flight means that Asians Airlines leases a portion of its seats to/from other carrier, and assigns the Asians Airlines' flight number for ticket sales to customers.
For customers flying with the code share flight, Asians Airlines provides pre- information on the carrier that actually handles reservations and ticket sales, flight operation, and various flight services. Asians airline is operating mommies and international. For domestic, operating 12 cities with 13 routes in Korea. For international operating, 22 countries and 68 cities with 87 routes in globally. Also, they are operating international cargo to 14 countries, 27 cities in 22 routes (Asian airlines, 2012).
Then the fleet of Asians total 76 short to mid ranger mid range and long range aircrafts are operating. The great success has been operating authority and it would not be very successful without their efforts. This aviation industry organization is a centralized Structure where president & CEO makes final decisions, and this report analysis the structure later on. Analysis Classification of Organization Structure As the figure 1 shows the organizational structure of Asians Airlines is centralized where all major divisions are made by top managers (President or Chief Executive Officer).
Moreover, this type of structure where most decision are made by the top managers requires a strong leadership (Bartok K, Teen M, Matthews G, Sahara B, Scott-Lead B 2011). - Functional Structure. In the functional structure, staffs are assigned to certain areas such as division, department, and specialized areas. For example, the structure insists of a CEO and a staff, with functional line managers in specific organizational areas such as production, marketing, R, engineering, and human resources (Michael A, Hit R, Duane l, Robert E 2009).
However, there are advantages and disadvantages of functional structure. The advantages of functional structures are promotes skill specialization, reduces duplication of scare resources and uses resources full time, Enhances career development for specialists within large departments, facilitates communication and performance because superiors share expertise with their subordinates and exposes specialists to others within the same specialty.
The disadvantages of functional organization structures are emphasizes routine task, which encourages short time horizons, fosters parochial perspectives by managers, which limit their capabilities for top management positions, obscures accountability for overall outcomes and multiplies the interdepartmental dependencies, which can make coordination and scheduling difficult. (Thomas G C, Christopher G W, 2009) - Divisional structure The divisional structure consists of business groups, and positions are grouped by products, services, customers, or geography.
A specific objective, for instance, are set up by division manager, and all or most of the group's resources are necessary in order to accomplish the objective (Thomas G C, Christopher G W 2009). There are also advantages and disadvantages of the divisional organizational structure. The advantages of divisional structure are recognizes sources of inter departmental dependencies, fosters orientation toward overall outcomes and clients, allows diversification, expansion of skills & training, heightens departmental cohesion and involvement in work.
Also ensures accountability by departmental managers and so promotes legation of authority and responsibility is one of advantage of divisional Structure. However, the disadvantages of divisional Structure appeal. The disadvantages of divisional structures are may use skills and resources inefficiently, Limits career advancement by specialists to movements out of their departments, Impedes specialists' exposure to others within the same specialties, Puts multiple-role demands on people and so creates stress, May promote departmental objectives, as opposed to overall organizational objectives(Thomas G C, Christopher G W 2009). Hybrid structure(Centralized) The Hybrid Structure combines advantages of both functional and divisional departments at the same management level. In the functional departments, for example, efficiencies in resource usage, economies of scale or in-depth expertise are major benefits. Divisional departments benefit from stronger focus on products, services or markets (Bartok K, Teen M, Matthews G, Sahara B, Scott-Lead B 2011). In hybrid structure has also advantages and disadvantages.
The advantages of hybrid structure are Alignment of corporate and divisional goals, Functional expertise and/or efficiency, Adaptability and flexibility in divisions. But hybrid structure has disadvantages there are Conflicts between corporate departments and divisions, Excessive administrative overhead, Slow response to exceptional situations (Bartok K, Teen M, Matthews G, Sahara B, Scott-Lead B 2011) Figure 1. Asians airline organizational chart. Organizational Structure As the figure 1, indicates the organizational structure of Asians Airlines is the hybrid structure where divisional and functional structures are combined.
The Asians airline is consisted with 4 Department (Executive department, Finance department, business department and safety department) and 17 sections planning section, Human Resource section, publicity section, medical advisor, finance section, material section, relationship management section, managing section, international business section, cargo business section, domestic business section, maintenance planning section, maintenance manage section, Fairport service section, flight planning section, safest flight socio and caving service section).
This organization is established in 1 988, and 9261 people are now working as team members. (Asians inform, up) - Strategic planning Respond quickly to changes in the external business environment and internal management in order to lead innovation management vision and strategy which is proposed to establish a process for the management innovation, as well as to establish a permanent system for restructuring the sale Of assets and equity affiliates bulldogged will be responsible for managing productivity.
And management of the company to improve its balance sheet in order to promote efficient and stable rational budgeting, measurement, distribution activities, and company-wide Performance Measurement System to improve the productivity of the development and application to perform the task. Changes in demand, according to the appropriate level of aviation fleet of aircraft for the introduction and transmission sale of conducting business. For trouble-free flight operations, and boost revenue to purchase jet fuel at the airport for domestic flights on foreign airlines to operate refueling business. Asians Recruit, 2012) - Human Resource (HRS management) HRS management, operations and personnel to perform efficiently and / compensation system for managing, planning and operations to perform. In order to establish cooperative labor-management relations and negotiations with the union-led partnership building, and employee grievance and Industry ill be responsible for industry disasters. Training & Development of human resources through the creation and planning for the education, curriculum management, development and for human resource development will be responsible for timely support.
Related to corporate social responsibility, ethical management support system to perform the task. (Asians Recruit, 201 2) - Financial management Corporate accounting regulations on compliance with financial statements and the external auditor to verify (audit) after receiving external stakeholders to appropriately provide internal stakeholders (executives) for rational management decisions for the management accounting information to provide services to perform.
Decisions necessary to provide cost information on business activities to relieve the cost and other relevant data collection, analysis, evaluation, reporting tasks to perform. They do capital funds in order to operate reliably planning and business (Asians Recruit, 2012). Expert Support Legal disputes and the prevention and resolution of the matter occurred and the insurance premium rate reductions for efficient processing of Claim representative will be responsible for coordinating support.
Also, The Meany's image at home and abroad to enhance positive public relations and media will be responsible for internal communication. Moreover, Counter terrorism security measures for the safety of air navigation and to perform the task of creating and implementing. (Asians Recruit, 2012). - Administration Management of the company secretary, oversees the welfare and support business activities and internal customer satisfaction will be responsible for. Asians Recruit, 2012)- In- Flight Service Product development to maximize product sales and sales management inventory management, quality management services and supplies for the Emily supply of adequate quality for the development of the summoning purchase request and performs the task Of distribution. For the implementation of the best in-flight service to oversee the development and planning services to policy formulation and implementation. All flight-related information in a timely manner to produce the relevant departments and to support the pilot to support the economic operation and safe navigation to do business. Asians Recruit, 2012) -Customer relations Air transport services in order to enhance their competitiveness in the market higher quality of service quality and standardization for the sake of various laity research, planning, analysis, evaluation, and Customer Service to perform efficiently -Maintenance Maintenance Master Plan to establish headquarters and the efficient organization and human resource management, operating and maintaining aircraft in optimum condition to perform various tasks.
Aircraft Maintenance Program and in accordance with work instructions and promote the maintenance and improvement of quality materials in order to maximize the efficiency of operation (demand forecasting and inventory through proper) proper amount of material to perform tasks in a timely manner to support. Asians Recruit, 201 2) Organizational Effectiveness Aviation industry is a very sensitive business area, therefore organization should prepare for whatever it might happen. Moreover, if something happens, they should react quickly.
In the process of decision making, the objectives should be clear and logical. Open Systems Model The open systems model recognizes environment affects how the organization performs and how the organization reacts and interacts with it. Thomas G C, Christopher G W (2009) states "The model suggests that organizations operate within an external environment, takes specific inputs room the environment, and trans forms those inputs using social and technical process. The outputs of the transformation process are returned to the environment and can be used as feedback to the organization's functioning. - Rational Goals Model The rational goals model sets a goal clear and choices are logical. When the organization needs a decision, the objective is defined, alternatives are made. After all that, the highest probability of success is selected as their final decision. Centralized power and control, extensive information systems and an efficiency orientation supports the rational model (Daft R, Murphy J, Wolcott H 2010). Current Structural issues. Asians Airlines is expected to be able to escape from the restructuring end of this year.
Asians Airlines for three years after the restructuring undertaken this year to graduate from creditors to restructure out of administration was observed. Asians Airlines over the past two years due in early 2010 with the creditors and restructuring agreements with self-entered the road. Extend the deadline until the end Of this year, one year to improve performance while promoting the sale of assets and nee rely normal company has transformed the central bank said. CBS, 2012) In this Issue shows how effort finance department and administration during last three years.
Asians airlines and bank predicting end of this year 201 2, Asians Airline cape from the restructuring. As a result, we expect Asians airline will grow up rapidly from next year. Conclusion In conclusion, as the success of Asians airline is not only made by CEO, himself. The well-structured organization is the main engine to drive them success. The organizational structure of the Asians airline is a hybrid structure where a CEO should have a strong leadership to accomplish the company's goal. At the same time, cooperation among staffs is taking a big part of the achievement.