Flight Centre's Culture And Organizational Culture

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Organizational cultural is the system of shared beliefs and values that develops within an organization and guides the behavior of its members, while organizational structure is an expression of social and economic principles of hierarchy and specialization (Kinicki, 2015). Both the culture and the structure of an organization are important things for management to understand in order to successfully set and achieve an organization’s goals. Companies who excel in highly competitive fields can attribute their successful economic performance to a cohesive corporate culture that increases competiveness and profitability. This culture is best utilized in an organization that has the necessary structure to allow its employees to coordinate their This cell-like structure was heavily influenced by the philosophy of Graham Turner, the founder and CEO of Flight Centre (Dunford et al, 2002). His ideas of rewarding initiative, empowering employees and fostering the spirit of a large tribe throughout the company were developed into the organizational culture. Flight Centre’s culture was formed first and it is comprised of their values, such as their people, their customer, the brightness of future, taking responsibility and egalitarianism and unity (Flight Centre, 2017). Its culture influenced the creation of their unique structure. They had to consider major factors, such as whether the organization would be mechanistic or organic, whether it would stress differentiation or integration, and how its strategy would affect its structure. The culture dictated that the structure would be organic because it promotes cooperation and flexibility. Similarly, the structure is differentiated because the culture values smaller teams. Lastly, Flight Centre had to determine the link between its strategy and its structure. The strategy is the organization’s plans to achieve its goals, which is facilitated by both the culture and structure. Although an organization’s culture influences its structure, together the culture and structure help provide the necessary framework for the organization to achieve its

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