{"id":117,"date":"2018-09-24T14:45:15","date_gmt":"2018-09-24T14:45:15","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/suny-osintrobus\/chapter\/introduction-6\/"},"modified":"2018-10-03T16:28:09","modified_gmt":"2018-10-03T16:28:09","slug":"introduction-6","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-herkimer-osintrobus\/chapter\/introduction-6\/","title":{"raw":"Introduction","rendered":"Introduction"},"content":{"raw":"
\r\n\r\n[caption id=\"\" align=\"aligncenter\" width=\"1750\"]\"In Exhibit 7.1\u00a0<\/strong>(Credit: CDC\/ Dawn Arlotta \/ US Government Works)[\/caption]\r\n\r\n<\/div>\r\n
\r\n
\r\n

Learning Outcomes<\/h3>\r\n

After reading this chapter, you should be able to answer these questions:<\/strong><\/p>\r\n\r\n

    \r\n \t
  1. What are the traditional forms of organizational structure?<\/li>\r\n \t
  2. What contemporary organizational structures are companies using?<\/li>\r\n \t
  3. Why are companies using team-based organizational structures?<\/li>\r\n \t
  4. What tools do companies use to establish relationships within their organizations?<\/li>\r\n \t
  5. How can the degree of centralization\/decentralization be altered to make an organization more successful?<\/li>\r\n \t
  6. How do mechanistic and organic organizations differ?<\/li>\r\n \t
  7. How does the informal organization affect the performance of the company?<\/li>\r\n \t
  8. What trends are influencing the way businesses organize?<\/li>\r\n<\/ol>\r\n<\/div>\r\n<\/div>\r\n
    \r\n
    \r\n

    exploring business careers<\/h3>\r\n
    Elise Eberwein<\/strong><\/div>\r\n

    EVP of People and Communications, American Airlines <\/strong><\/p>\r\nAs executive vice president of people and communications at American Airlines, Elise Eberwein\u2019s role within the structure of the organization might not be readily apparent. After all, you might ask, doesn\u2019t corporate communications typically involve marketing? And what does that have to do with organizational structure? As it turns out, quite a bit at the world\u2019s largest airline.\r\n

    When American Airlines and US Airways finally got the U.S. government\u2019s approval to merge in late 2013, it was no longer business as usual for Eberwein and her colleagues at the \u201cnew\u201d airline. Until the merger, which basically produced the world\u2019s largest airline with more than 6,000 daily flights and 102,900 employees, Eberwein was head of communications at US Airways\u2014a position she held for nine years after various other jobs in the airline industry.<\/p>\r\n\r\n

    \r\n
    \r\n\r\n[caption id=\"\" align=\"aligncenter\" width=\"2048\"]\"An Exhinit 7.2\u00a0<\/strong>American Airlines jet. (Credit: Joao Carlos Medau\/ flickr\/ Attribution 2.0 Generic (CC BY 2.0))[\/caption]\r\n\r\n<\/div>\r\n<\/div>\r\n

    Communications and aviation are in Eberwein\u2019s DNA. She worked as a flight attendant at TWA before moving on to manage communications at Denver-based Frontier Airlines. Her next communications experience was at America West, which then merged with US Airways, where Eberwein served as executive vice president of people, communications, and public affairs before she took over the chief communications job at American Airlines.<\/p>\r\n

    Corporation communications is no longer just about marketing. The importance of an effective communications strategy cannot be understated in today\u2019s 24\/7 business environment. Corporate communication executives have taken on an expanded role in many organizations, according to a recent survey by the Korn Ferry Institute. Of the senior communications executives from Fortune 500 companies who responded to the survey, nearly 40 percent said chief communications officers report directly to the CEO. In addition, more than two-thirds of respondents believe the most important leadership characteristic for communications professionals is having a strategic mindset that goes beyond day-to-day communications activities and looks ahead to future possibilities that can be translated into achievable corporate strategies at all levels of the organization.<\/p>\r\nIn a company as large as American Airlines, even after the initial two-year integration plan, there are many departments, unions, and other employees to communicate with on a daily basis, not to mention the millions of customers they serve every day. For example, American\u2019s social media hub consists of 30 or so team members, divided into three groups: social customer service, social engagement, and social insights. The customer service group, the largest of the three, operates around the clock to address customers\u2019 issues, including missed flight connections and lost luggage, as well as quirky questions like why American airplanes have a specific number of stripes on their tails. Reporting to Eberwein, the social media group is empowered to reach out to any company department directly to get answers for any customer.\r\n

    Eberwein believes her role includes working closely with the CEO and other managers across the globe to provide consistent, detailed information to all of its stakeholders. To accomplish this feat, Eberwein and other senior managers hold a weekly Monday morning meeting to review the previous week\u2019s operations data, revenue results, and people engagement activities. Eberwein believes establishing this regular contact with colleagues across the organization helps reinforce American\u2019s commitment to engagement and transparent communications, which ultimately shapes the customer\u2019s experience as well as the entire company.<\/p>\r\n

    Sources: \u201cLeadership Bios: Elise Eberwein,\u201d https:\/\/www.aa.com, accessed July 24, 2017; \u201cBy the Numbers: Snapshot of the Airline,\u201d http:\/\/news.aa.com, accessed July 24, 2017; Richard Marshall, Beth Fowler, and Nels Olson, \u201cThe Chief Communications Officer: Survey and Findings among the Fortune 500,\u201d https:\/\/www.kornferry.com, accessed July 24, 2017; Elise Eberwein, \u201cWhy the Chief Communications Officer Is Pivotal to the CEO, Especially a New One,\u201d Chief Executive<\/em>, http:\/\/chiefexecutive.net, September 11, 2016; Michael Slattery, \u201cA Visit to American Airlines Social Media Hub,\u201d Airways<\/em> magazine, https:\/\/airwaysmag.com, June 10, 2016; Diana Bradley, \u201cAmerican Airlines CEO Discusses Comms Strategy behind US Airways Merger,\u201d PR Week,<\/em> http:\/\/www.prweek.com, May 27, 2015.<\/p>\r\n\r\n<\/div>\r\n<\/div>\r\nThis module focuses on the different types of organizational structure, the reasons an organization might prefer one structure over another, and how the choice of an organizational structure ultimately can impact that organization\u2019s success.\r\n

    In today\u2019s dynamic business environment, organizational structures need to be designed so that the organization can quickly respond to new competitive threats and changing customer needs. Future success for companies will depend on their ability to be flexible and respond to the needs of customers. In this chapter, we\u2019ll look first at how companies build organizational structures by implementing traditional, contemporary, and team-based models. Then, we\u2019ll explore how managers establish the relationships within the structures they have designed, including determining lines of communication, authority, and power. Finally, we\u2019ll examine what managers need to consider when designing organizational structures and the trends that are changing the choices companies make about organizational design.<\/p>","rendered":"

    \n
    \"In<\/p>\n

    Exhibit 7.1\u00a0<\/strong>(Credit: CDC\/ Dawn Arlotta \/ US Government Works)<\/p>\n<\/div>\n<\/div>\n

    \n
    \n

    Learning Outcomes<\/h3>\n

    After reading this chapter, you should be able to answer these questions:<\/strong><\/p>\n

      \n
    1. What are the traditional forms of organizational structure?<\/li>\n
    2. What contemporary organizational structures are companies using?<\/li>\n
    3. Why are companies using team-based organizational structures?<\/li>\n
    4. What tools do companies use to establish relationships within their organizations?<\/li>\n
    5. How can the degree of centralization\/decentralization be altered to make an organization more successful?<\/li>\n
    6. How do mechanistic and organic organizations differ?<\/li>\n
    7. How does the informal organization affect the performance of the company?<\/li>\n
    8. What trends are influencing the way businesses organize?<\/li>\n<\/ol>\n<\/div>\n<\/div>\n
      \n
      \n

      exploring business careers<\/h3>\n
      Elise Eberwein<\/strong><\/div>\n

      EVP of People and Communications, American Airlines <\/strong><\/p>\n

      As executive vice president of people and communications at American Airlines, Elise Eberwein\u2019s role within the structure of the organization might not be readily apparent. After all, you might ask, doesn\u2019t corporate communications typically involve marketing? And what does that have to do with organizational structure? As it turns out, quite a bit at the world\u2019s largest airline.<\/p>\n

      When American Airlines and US Airways finally got the U.S. government\u2019s approval to merge in late 2013, it was no longer business as usual for Eberwein and her colleagues at the \u201cnew\u201d airline. Until the merger, which basically produced the world\u2019s largest airline with more than 6,000 daily flights and 102,900 employees, Eberwein was head of communications at US Airways\u2014a position she held for nine years after various other jobs in the airline industry.<\/p>\n

      \n
      \n
      \"An<\/p>\n

      Exhinit 7.2\u00a0<\/strong>American Airlines jet. (Credit: Joao Carlos Medau\/ flickr\/ Attribution 2.0 Generic (CC BY 2.0))<\/p>\n<\/div>\n<\/div>\n<\/div>\n

      Communications and aviation are in Eberwein\u2019s DNA. She worked as a flight attendant at TWA before moving on to manage communications at Denver-based Frontier Airlines. Her next communications experience was at America West, which then merged with US Airways, where Eberwein served as executive vice president of people, communications, and public affairs before she took over the chief communications job at American Airlines.<\/p>\n

      Corporation communications is no longer just about marketing. The importance of an effective communications strategy cannot be understated in today\u2019s 24\/7 business environment. Corporate communication executives have taken on an expanded role in many organizations, according to a recent survey by the Korn Ferry Institute. Of the senior communications executives from Fortune 500 companies who responded to the survey, nearly 40 percent said chief communications officers report directly to the CEO. In addition, more than two-thirds of respondents believe the most important leadership characteristic for communications professionals is having a strategic mindset that goes beyond day-to-day communications activities and looks ahead to future possibilities that can be translated into achievable corporate strategies at all levels of the organization.<\/p>\n

      In a company as large as American Airlines, even after the initial two-year integration plan, there are many departments, unions, and other employees to communicate with on a daily basis, not to mention the millions of customers they serve every day. For example, American\u2019s social media hub consists of 30 or so team members, divided into three groups: social customer service, social engagement, and social insights. The customer service group, the largest of the three, operates around the clock to address customers\u2019 issues, including missed flight connections and lost luggage, as well as quirky questions like why American airplanes have a specific number of stripes on their tails. Reporting to Eberwein, the social media group is empowered to reach out to any company department directly to get answers for any customer.<\/p>\n

      Eberwein believes her role includes working closely with the CEO and other managers across the globe to provide consistent, detailed information to all of its stakeholders. To accomplish this feat, Eberwein and other senior managers hold a weekly Monday morning meeting to review the previous week\u2019s operations data, revenue results, and people engagement activities. Eberwein believes establishing this regular contact with colleagues across the organization helps reinforce American\u2019s commitment to engagement and transparent communications, which ultimately shapes the customer\u2019s experience as well as the entire company.<\/p>\n

      Sources: \u201cLeadership Bios: Elise Eberwein,\u201d https:\/\/www.aa.com, accessed July 24, 2017; \u201cBy the Numbers: Snapshot of the Airline,\u201d http:\/\/news.aa.com, accessed July 24, 2017; Richard Marshall, Beth Fowler, and Nels Olson, \u201cThe Chief Communications Officer: Survey and Findings among the Fortune 500,\u201d https:\/\/www.kornferry.com, accessed July 24, 2017; Elise Eberwein, \u201cWhy the Chief Communications Officer Is Pivotal to the CEO, Especially a New One,\u201d Chief Executive<\/em>, http:\/\/chiefexecutive.net, September 11, 2016; Michael Slattery, \u201cA Visit to American Airlines Social Media Hub,\u201d Airways<\/em> magazine, https:\/\/airwaysmag.com, June 10, 2016; Diana Bradley, \u201cAmerican Airlines CEO Discusses Comms Strategy behind US Airways Merger,\u201d PR Week,<\/em> http:\/\/www.prweek.com, May 27, 2015.<\/p>\n<\/div>\n<\/div>\n

      This module focuses on the different types of organizational structure, the reasons an organization might prefer one structure over another, and how the choice of an organizational structure ultimately can impact that organization\u2019s success.<\/p>\n

      In today\u2019s dynamic business environment, organizational structures need to be designed so that the organization can quickly respond to new competitive threats and changing customer needs. Future success for companies will depend on their ability to be flexible and respond to the needs of customers. In this chapter, we\u2019ll look first at how companies build organizational structures by implementing traditional, contemporary, and team-based models. Then, we\u2019ll explore how managers establish the relationships within the structures they have designed, including determining lines of communication, authority, and power. Finally, we\u2019ll examine what managers need to consider when designing organizational structures and the trends that are changing the choices companies make about organizational design.<\/p>\n\n\t\t\t

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      Candela Citations<\/h3>\n\t\t\t\t\t
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      CC licensed content, Shared previously<\/div>