Published by:
University of California, Berkeley
Length: 18 pages
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Abstract
This article describes the contrasting systems of co-ordination and control at American and Southwest Airlines. Contrary to popular belief, the best way to achieve co-ordination in high velocity settings like the airline industry is not to create a flat organization based on performance measurement and little supervision. Rather it is better to build an organization based on cross-functional accountability to diffuse blame, with adequate supervisory staffing to provide coaching and feedback. Co-ordination benefits from strengthening this role of supervisors while weakening the role of accountability and performance measurement.
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Abstract
This article describes the contrasting systems of co-ordination and control at American and Southwest Airlines. Contrary to popular belief, the best way to achieve co-ordination in high velocity settings like the airline industry is not to create a flat organization based on performance measurement and little supervision. Rather it is better to build an organization based on cross-functional accountability to diffuse blame, with adequate supervisory staffing to provide coaching and feedback. Co-ordination benefits from strengthening this role of supervisors while weakening the role of accountability and performance measurement.