Organizational structure is an important question that all companies have to face and find a solution to. In this paper we will get an insight into the company Delta Airlines, which decided to set up a network design system. First of all we will briefly view some facts about Delta Airlines, and then we will focus on the company's actions, its results and the changes which occurred.
To begin, Delta Air Lines was founded in 1924, and is now the world's Number one American airline company. Its headquarters are based in Atlanta, and the company is providing transport services throughout the United States (211 cities in 46 states) and also to worldwide destinations. Delta provides plane transportation to 375 destinations in 66 countries and serves more than 170 million passengers each year. Thus Delta operates more than 1,534 flights per day. The company is also a member of the Skyteam Alliance which includes companies such as Air France-KLM, Alitalia, CSA Czech Airlines, China Southern Airlines, Aeromexico and Korean Air.
With more than 75,000 employees worldwide, Delta is remodeling the aviation industry, as the only U.S. airline to offer a full global network. On October 29, 2008, Delta completed its merger with Northwest Airlines to form the world's largest commercial carrier.
[...] Before Delta Air Lines established this program, employees such as pilots and flight attendants (many of whom did not live near Atlanta or the airport where they regularly take off) had to travel to the company's headquarters to schedule flights, and to consult their planning. Now they can handle all personnel scheduling over a virtual private network. Employees who work at home now have the possibility to balance their family life and their professional life more easily. They don't have fixed hours; for example a mother will be able to pick up her children at the end of the school day, or to keep them at home while working. [...]
[...] In 2002, Delta also set up an e-learning training program for its employees, and an e-business program. The e-learning program enables pilots, airport customer service staff, ticket agents and other employee groups to receive specialized training according to their job responsibilities. What are the results? One of the consequences of this new working organization system is that Delta closed several reservations centers. Agents working at their homes are more reactive, and more beneficial to the airlines. For example, when big storms force companies to cancel massive numbers of flights, home agents directly reroute stranded travelers. [...]
[...] Nobody is present to tell them what to do, or force them to work; they are not under pressure, although they still have to do their job, and to achieve their tasks on time. Workers have to be serious about their job; this independence can procure a feeling of freedom. To conclude, Delta Airlines is not the only company to set up this change in their organizational structure. Ford had the same approach at the same period. This system has been working for both companies and it allowed them to reduce overall costs. Sources - Duffy Marsan Carolyn “Wired workforce plans stress corporate nets” 13 [...]
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