Introduction
All companies usually develop some particular cultures that can help to boost its performance. Some of the organizations’ achievements and failures have been because of the company’s culture. The high management usually realizes the importance of the company’s culture and tries as much as they can to adapt by using active strategies to define the cultural identity, orchestrating cultural changes. The notion goes beyond the business realm to managers, and non-profit organizations among others. In the airline industry, companies such as American and Northwest Airlines, among others are faced with many challenges that affect their performance. Such challenges are the competitive, environmental factors, the clients who need highly reliable schedules for their flights, as well as the expectations of the society in terms of art and technology and the best quality services offered by these airlines. It shows how hard it is to change the culture very fast, mostly when the culture seems to be shared among the other companies. This paper seeks to investigate the effects of the organizational culture on the American Airlines and Northwest Airlines Company (Mantlik et al. 2010).
Organizational Culture
It is a system of assumptions, ethics, beliefs, customs, and values that are shared among the employees, and the administration. Through this culture, the workers know what is required and what is not required at the place of work. It defines their mode of behavior at the place of work. Through such values, there is a great influence on their behavior and the achievement of the company. This word was first coined in 1980s through the best sales Peters and Waterman’s book. They argued that the company’s performance is related to the organizational culture, which is decisive, motivating, customer oriented, as well as people’s empowerment. From that time, most firms have now adapted to this concept of organizational culture. Nevertheless, though this concept is still new to most of the companies, but it is getting its foundation and growing gradually (Lever, 2009).
Research indicates that all the companies are now looking for strategies that can help to improve their overall performance and organizational culture are among the approaches that have been adapted. The organizational culture improves the standards of a given company; this is a technique that can be used in the investigation of the internal business process. Therefore, to improve the standards of the organization, the airline's managers have to get their firms to be known on the international level. It is why there are always differences in the culture and the performance of each organization, even if they have the same business; for instance, Northwest and American airlines differ in their organizational cultures (Mantlik et al. 2010).
Contrasting between American Airlines and Northwest Airlines
Northwest Airlines and American Airlines can be compared and contrasted using many forms. Through globalization, the strengths of the Northwest and American airlines are evaluated on how it affects its performance. In this case, both airlines have employees that have a common goal in which they wish their company to grow. Northwest Airlines in this case, does not have a better motivational strategies to its employees compared to the American Airlines, even though they are good pioneers in the international alliances, as well as their investments have been committed. On the other hand, the American airlines are more open to its workers, about their opinions and their ideas; this makes them take part in the decision making. Hence, helping to keep them satisfied and motivated, as well as they also feel that their presence is important to the growth of the company. They also try as much as they can to avoid layoffs in their company, hence promoting their security and confidence at work (Partsch, 2009).
However, Northwest does not have such practices, instead, there are even the worst cases reported on the Northwest Airlines about sexual harassment. For instance, blowing the whistle among other negative incidences that chase away the employees, thus, spoiling the reputation of the company. In addition, the workers at Northwest Airlines do not feel secure, as there is much pressure from the administration that they need to keep all the planes active and maintain ace to be completed within a short time. The society expects safety among the airlines, which has been made controversies. Therefore, in this essence the American airlines cultures seem to be stronger through scrutiny of their airlines to ensure safety for both employees and the passengers. They work hard to ensure that their customers meet their needs that are satisfactory to them (Proctor, 2012).
Both airlines have ensured that the workers have the same code of conduct as well as they believe through sharing the same code, then they must be going in the same direction heading for the same goal. Moreover, both airline companies have unions for their employees that are supported positively by the company. It has enabled them not to employ non-union employees that can cause lowering of their wages. They have also been able to develop the positive expectations from the society to make sure that their needs and preferences are well met. Even though Northwest has had, some issues with its pilots, but not as much as that of the American airlines, but they all try hard to securities and keep everything in order through good ethical practices (Goodman, 2007).
Northwest Airlines has managed to meet the needs and the expectations of the stakeholders, workers as well as the clients through its stable financial security. However, the American airlines have not been so much into the employees, clients and the stakeholders, but they have concentrated on the making of the profits to the company. In some recent years, there were some retrenchments without notice; for instance, the personnel that were laid off without any warning (Levere, 2009).
Both companies, however, have the organized training programs that have impressed most of the workers. It has enabled the employees to work under one ethical code and have the maintenance processes. Such codes stretch, firm the management where they are expected to ensure that all the aircraft are airworthy every time so that they can have as many passengers as they can. It is practiced with all the personnel starting from the top as they move down the ladder. It makes sure that all the personnel are able to complete their work well and at times, it becomes an issue. There is good conduction of inspections for safety purpose. Both airline companies are able to ensure that not all aircrafts fly without proper investigation of any problem (Hopkins, 2008).
Northwest airlines have had some cases of whistle blowing whereas American airlines have not had any. Though the two companies are trying hard, maintain their good reputation. However, they do not have any opportunities or signs of stopping the struggle, but they are trying as hard as they can to maintain the good name, and satisfy the needs of the customers. Furthermore, they motivate their employees to maintain the good name of their company and work towards the same goal (Johnson, 2012).
The two companies have the organizational culture, which fit the airline strategy. In these companies, the workers have a positive influence on the quality of the decisions that are made in the company. They can both have a chance to talk about their opinions. In addition, they have a culture where the workers’ differences and contributions are highly appreciated to fit their perspectives. This adaptation of the organizational culture helps the company to adapt to the environmental changes that are associated with the performance of the company (Field, 2011).
The adaptability of the culture
Both American and Northwest cultures are adaptive to most cultures, which are encouraging to the employees, and they are worth taking the risks and they also put their focus on the needs of the clients that keep changing. The companies are able to encourage change and adaptability to meet the needs of the clients, stakeholders, employees and try to reduce the management that is after its own interest. Northwest airlines have a good long-term economic performance that shows how adaptive it is. The other thing is that the companies try as much as they can to gain a competitive advantage (Goodman, 2007).
Fit of the culture with the industry’s environment
The study indicates that there is an importance in the culture in the performance of the organization; the results show that American airlines have a very good fit in terms of the organizational culture with its environment in which they operate. However, Northwest Airlines only have the averaged good fit to the environment. In addition, the American Airlines have the best culture of leadership, starting from the managers stretching down the ladder. Leadership behavior guides the behavior of the employees as well as attracting the demand from the customers. It greatly influences the performance of the company (Brown, 2009).
How does the performance of each relate to its organizational culture?
The organizational culture has been seen to play a very important role in the performance of the business. It is seen in terms of the relationship that exists between the organizational culture and the performance based on a strong culture thesis, whereby if there is a strong culture and that leads to good performance of the company. The same way the high performance is determined by the development of better and strong culture. It shows that the cultures should be appropriate, necessary, and adaptive for a company to stand better chances of a competitive advantage. A good organizational culture leads to a competitive advantage, which leads to effectiveness and generation of profit; hence, the good performance of the company (Clougherty, 2005).
Conclusion
The two companies have the organizational culture, which fit the airline strategy. In these companies, the workers have a positive influence on the quality of the decisions that are made in the company. They can both have a chance to talk about their opinions. In addition, they have a culture where the workers’ differences and contributions are highly appreciated to fit their perspectives. This adaptation of the organizational culture helps the company to adapt to the environmental changes that are associated with the performance of the company. American and Northwest Airlines, among others are faced with many challenges that affect their performance. Such challenges are the competitive, environmental factors, the clients who need highly reliable schedules for their flights, as well as the expectations of the society in terms of art and technology and the best quality services offered by these airlines. According to me, American Airlines have the best culture of leadership, starting from the managers stretching down the ladder. Leadership behavior guides the behavior of the employees as well as attracting the demand from the customers. It greatly influences the performance of the company. American airlines are the best because they cater for the needs of the clients, stakeholders, employees among others. In addition, they involve their employees in the decision making
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