The Organization as a Machine
In a mechanistic structure of an organization, the vision, target, and direction are determined from the organization’s external setting or the top-level management (Örtenblad,2016). Authority and power are centralized, and an authoritarian mode of leadership is viewed as good leadership. Decision making rests with the top-level managers and disseminated as instructions to those holding lower hierarchical positions, basically referred to as the chain of command. Control is the sole duty of managers, and clear authority lines are established to everyone lower in the hierarchy. Tasks are divided and clearly defined, with each person specialized to individual tasks controlled through the set rules and regulations and hierarchical model of supervision. Somebody needs to be there in case of a happening.
With the Air Mail Act introduction, Delta Airlines transformed into a machine bureaucracy from a simple structure. They developed formal operating rules with a centralized powered structure where power flows from the top to front line staff. Having started as a crop dusting business, the company was sold and renamed Delta Air Service, where it runs as a simple structure because it had few employees. They later transformed into a mechanic bureaucracy with the introduction of the Civil Aeronautics Act. This marked off their rapid growth to one of the biggest airlines in the US and one of the world’s biggest passenger carriers. Delta’s operational, finances, and staffing decisions are made at the strategic apex with managers’ other operations. Communication channels are vertical from the top strategic apex to the junior operating core.
The traditional structure of an organization helps the company to move forward on its mission. A suitable framework is used to carry out the management’s strategic plan and the right structure to determine success. The functional organization structure gives rise to an environment to communicate. Employees freely interact in terms of operational functions and corporations within departments providing a basis of understanding. Coordination is also improved at the department level. With the machine metaphor, labor is divided among the employees, turning them into expert specialists. This lowers the cost of training new staff and problems as solved in a short time. It has also improved economies of scale. There is increased efficiency, productivity, and savings that occur as scope increases. This gives room for each person to be more productive and efficient.
Delta Airlines has always conducted its marketing and advertisements using various media forms such as Facebook, Instagram, Twitter, and Snapchat to convey their messages of comfort and conduct a customer satisfaction score (Pratap, 2020). Advertising strategy, too, has been used with the voice of Viola Davis expressing Delta as the best traveling priority (Camilleri, 2018). They also carry out a customer satisfaction survey and testimonials to reviews both the airline and its employees. Data collected is also used to identify new needs and measure competitors to keep their market position.
Delta airline has a wide array of functional operations. Customer service professionals are responsible for check-in, boarding, lounge, and airport connection at the airport. A team of up to 12,000 pilots is in charge of flight operation across the US and other 325 destinations in 52 countries. Flight attendants are tasked with inflight services to ascertain all aspects of onboard safety and services (Kotler, 2017). Technology has been integrated to ease the purchase of tickets through the delta.com website and webpage to improve customer experience.
In its finances, Delta Airlines used US$1.2 billion on its operational expenses, having increased by 3.1% for wages and service expenses. Non-operational expenses such as pensions and other related expenses also increased to $420 million in 2019 from $113 million in 2018. Part of the finances was also channeled to expanding the global network and investing in the future. By the end of the fiscal year 2018, the airline reported an increase of 8.02% from the previous fiscal report. Its shares increased to $48 per share.
On the other hand, the machine metaphor has had both its successes and failures. To realize success, all machines are expected to work well. Labour is specialized among employees improving employee performance and expertise. This increases the final production of the organization with less damage and less backtracking. Parts are also standardized, enabling replaceability in case of a breakdown. Machines are predictable from how they are created to work. On the limits, a machine does not pinpoint the damaged part. In case of a failure, the machine is changed. An individual responsible for the failure is made to pay for the damage, disciplined, and even fired in an organization. Worse, the machine metaphor is devaluating. Organizations stop replacing and evaluating their staff with a hostile approach.
At Delta airline, the machine bureaucracy came with a major positive impact. Strong executive teams were developed, comprising of professionals with years of experience in the industry. Delta’s size grew fast, dominating the market to outcompete other airlines in the USA’s southern part. The company was able to cut its labor cost as its leadership has successfully kept different workgroups. The metaphor has helped Delta airline run a modern, fuel-efficient fleet size over the other US-based air carriers. Further, Delta has gained a strong customer base from its frequent flyer programs. Its domestic and international network has also widely grown from the implementation of machine bureaucracy.
Either, machine bureaucracy has had negative consequences for Delta. The airline is unable to act quickly regarding changes in the market place impacting air travel. They also suffer constant hiring from staff turnover of front-line worker level. Also, cultural difference rises due to the globalization of the company, with tension growing between the station managers and headquarters. The metaphor brings a perceived disconnect between executives and lower-level workers and workgroups feeling exploited by the management in pursuit of profit.
Delta Airlines having access to over 52 global boundaries; they have had functional differences from those carried out in the headquarter in Atlanta, Georgia. Delta Airlines has initiated Delta Global Staffing (DGS), which provides contract workers for short and long-term assignments through partnering, on-site management, temp-to-hire, direct placement, and payroll services. DGS also carries out marketing such as managing call centers, customer service, administrative placement, IT integration and professional recruiting, logistics, and hospitality (Camilleri, 2018). Finance and accounting schedules have also been considered to keep the financial records clear.
Delta Airlines has grown to earn corporate identity in the global air travel field from its logo to the widget. Environmentally, the company runs a friendly non-hexavalent chromium surface on its aircraft (Cui, 2017). This replaces hazardous chemicals formerly used to improve paint adhesion and prevent corrosion. Delta’s global accidents and hijackings have been relatively low, earning Delta a suitable position in the air travel business.
References
Camilleri, M. A. (2018). Market segmentation, targeting and positioning. In Travel marketing, tourism economics and the airline product (pp. 69-83). Springer, Cham.
Cao, M., Chychyla, R., & Stewart, T. (2015). Big Data analytics in financial statement audits. Accounting Horizons, 29(2), 423-429.
Cui, Q., & Li, Y. (2017). Will airline efficiency be affected by “Carbon Neutral Growth from 2020” strategy? Evidences from 29 international airlines. Journal of cleaner production, 164, 1289-1300.
Kotler, P., Bowen, J. T., Makens, J., & Baloglu, S. (2017). Marketing for hospitality and tourism.
Örtenblad, A., Putnam, L. L., & Trehan, K. (2016). Beyond Morgan’s eight metaphors: Adding to and developing organization theory. Human Relations, 69(4), 875-889.
Pratap, A. (2020, February 4). Delta Airlines Marketing Mix. Retrieved from https://notesmatic.com/2020/02/delta-airlines-marketing-mix/