![]() ![]() ![]() The corporate structure’s relaying and corresponding lines of authority are vertical (top-down), starting from Southwest’s CEO, down to the rank-and-file employees in daily operations. For example, at the organizational headquarters, senior executives make the decisions that are relayed and implemented throughout the commercial aviation operations. A major characteristic of the U-form organizational structure is a centralized hierarchy, which in this case defines Southwest’s system or arrangement of resource and activity groups and how they relate to each other. International flight routes or new complementary operations in the aviationĬentralized Hierarchy. Product/service or business area is developed, such as the creation of new An implication of this organizational structuralĬharacteristic is the possible creation of new functional groups whenever a new This characteristic of the corporate structure ensures that Southwest Airlines maintainsĮffective business functions that are arranged in a way that strategically Maintenance Operations reports to the Executive Vice President for Daily Vice President of each of Ground Operations, Inflight Operations, and Involves subgroups that report to one or more executives. Aside from these main function-based groups, Southwest’s organizational structure For example, the company has aįunctional group for finance and another functional group for daily operations Resources according to business functions. In its U-form corporate structure, Southwest Airlines groups business activities and Groups based on business functions specific to commercial aviation.The following are the main features of Southwest’s corporate structure: This corporate structure is typical in businesses that seek to maintain strong central control on all operations via top-level strategic management at the organizational headquarters. The unitary or U-form structure is also known as the functional form because of the use of business function as basis for grouping resources and activities, such as finance and airline marketing in this case. Southwest Airlines has a U-form organizational structure. Southwest’s Organizational Structure Type and Characteristics Structural characteristics also facilitate strategic planning and implementation to address trends in the industry, such as those identifiable through a PESTEL/PESTLE analysis of Southwest Airlines Co. In a way, the company uses its corporate structure as a tool to manage operations while competing against firms like American Airlines, Delta Air Lines, and United Airlines. are partly a result of human resources and strategic support from the corporation’s organizational structure. Structure’s implementation to address business needs and strategicĬhallenges in the international commercial aviation industry.īusiness strengths, core competencies, and competitive advantages shown in the SWOT analysis of Southwest Airlines Co. Its profitable performance and large operational scale indicate that Southwest Airlines benefits Structure ideally applicable to its operations in the transportation Its organizational design and its organizational structure’s characteristics. In Texas and now an international low-cost airline business, Southwest has largely maintained In its organizational development, starting as a local carrier The corporate structureįacilitates the administration of the aviation company’s resources, including Possesses a rigid hierarchy that addresses strategic management concerns. Organizational design representative of a business configuration that enables strongĬorporate headquarters in controlling all areas of operations. Low-cost carrier with international operations, the company has an Structure promotes centralized decision-making processes. Southwest Airlines Co.’s corporate organizational structure reflects an organizational design that emphasizes strong managerial control on all areas of operations. A Southwest aircraft at San Francisco International Airport in 2010. ![]()
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