American And Northwest's Adaptive Cultures example essay topic

Northwest Airlines and American Airlines will be compared thoroughly in many aspects. Globalization, diversity, ethics and technology will be addressed in various ways. All four themes will be addressed through the strength, fit and adaptive ness of both company's cultures. The overall organizational culture of both Northwest Airlines and American Airlines will be clear.

Globalization Globalization can be defined as "making worldwide in scope or application" (1). In this comparison of the global corporate culture of Northwest Airlines and American Airlines several areas will be addressed. The strength of the global culture with-in the companies. The fit of the company to the global marketplace, and the adaptive ness or the empowerment of the employees will be examined and compared. Perhaps more important, than whether they currently have a global atmosphere, is whether they can improve or create this atmosphere.

A comparison between the two airlines will be made on their mission statements, information dissemination, global-mindedness, career paths, and the use of cultural differences as an asset and if a worldwide training system is in place. A conclusion will then be made as to which corporation has the best organizational composition to compete in the global market. The strength of Northwest and Americans' global culture can be compared by evaluating how well they "facilitate performance" (2,546). Both of the corporation's employees, it may be argued, have the common goal of wanting their company to expand and continue to grow in the global market. It could also be argued that the companies differ, in significant ways, when it comes to the motivating effect this common goal has. Northwest seems to be better motivated in obtaining this goal.

Examples of this motivated corporate culture are illustrated by the fact that they were "pioneers in global alliances" (3) and in the fact that they have committed major investments, in the form of hub cities, in both Tokyo and Amsterdam. American, on the other hand, does not seem to be as motivated by the goal of expansion in the global market. Although they have alliances with several international carriers, the number of alliances is not as large as Northwest's. The recent acquisition of TWA, by American (4), may help to expand their global culture, due to the greater foothold this acquired asset has in the global market. In addition the financial investment that Northwest has shown in the global market is lacking in American. The only hub, questionably, outside of the U.S. is in San Juan, Puerto Rico (4).

American seems to concentrate its strength inside the U.S., which may have a stifling effect on globalization efforts in the future. Northwest, although somewhat slowed by the economic downturn, especially in Asia, has shown consistent economic performance, possibly contribu table to past globalization efforts. Globalization in the airline industry may seem to be a natural flow of the business model. However, some companies have a better fit, or culture that lends itself to a smooth and prosperous integration into the global market. In comparing this integration into the global market one might take a historical look at American and Northwest. Both carriers were formed just after World War I, as mail carriers (3, 4).

Eventually both evolved into passenger carriers. Americans roots are traced to Charles Lindberg and the cities of Chicago and St Louis (4). Northwest also has its roots in Chicago, but their first routes went north to Minneapolis / St Paul (3). Northwest eventually evolved into Northwest-Orient Airlines and expanded its routes into Japan, being the first airline to make a profit in the Asian market without subsides (3). Northwest continued to globalize with their alliance with KLM Airlines and eventual expansion into the Netherlands (3). American, on the other hand, concentrated their growth in the Americas.

With an extensive route system into Central and South America (4), American Airlines seems to have centered its expansion in the United States. A possible result of American's expansion, or lack of expansion outside the U.S., might have reduced the artifacts that could have otherwise further enhanced their global culture mix and thus created a better organizational fit. The cultural mix or organizational fit found at Northwest may help to explain the greater adaptability of the corporation, in comparison to American. American, it would appear, has a more centralized management structure that relishes its power and releases it sparingly. American's stockholders appear to be second, possibly third, in line when it comes to organizational decisions.

First, it appears, in every decision American makes, is how it will effect upper management. The greed shown by upper management has poisoned the adaptability and trust that is needed by a global organization. This "cautious management" (2,548) style was most recently evident when management was asking the flight attendant union for pay concessions, while at the same time insuring their financial future, with retirement and pay guaranties (4). The "cautious management" (2,548) style is not as evident at Northwest. Although they have had their disagreements over employee compensation, it appears that more confidence in the organization and its ability to adapt to the ever changing global environment is inbred in the Northwest culture.

This ability to adapt helps to insure that the needs of the customer, stockholder and employee, management as well as front line, are met. Northwest continues to improve its global organizational fit through alliances. For instance, the alliance with Continental Airlines, in 1998, and a recent cooperative agreement with Delta Air Lines (3) help to grow the cultural mix at Northwest, while reducing expenses. These actions increase the availability of the product to the customer, while increasing stockholder value. At the same time, that customer and stockholder concerns are addressed, management and labors willingness to work together to reduce cost, in these trying times, is an indicator of Northwest's adaptability in today's global market. An indication of a company's ability to survive and grow in the global market place might be found in their mission statement.

Americans vision states that they want "to be the world's leading airline by focusing on industry leadership in the areas of safety / service / network / product / technology / and culture (4). This vision easily meets the condition of being simple. Its simple ness may, in fact, be a problem. In other words the simple ness of this statement might decrease the clear meaning intended by Americans management. For instance do they want to be the leader in the eyes of their customers, stockholders or employees?

Possibly all three, or maybe they mean leadership in the terms of being the largest airline. Northwest's' vision does not include as many items outright, but seems to imply them. Their vision is: To build together the first choice airline and global alliance network with the best people each committed to exceeding our customers' expectations every day" (3). In addition to this vision Northwest also has a "Checklist for the future" that includes; run a great airline, put customers first, focus on people, build our network, and secure our future (3). This vision is not only clear and simple but also encompass the customer, employee and stockholder.

The inclusion is also indicative of how Northwest has a free flow of information from the company. Whether using the web site or through inter-company communication channels the dissemination of information flows both ways (3). American has similar ways to disseminate and receive information (4). However, due to Americans questionable openness in the past, as referenced before, management has put a shadow of doubt on any information released. Both it can be argued have systems to implement change and standardize operations. These standard operations might have a stifling effect on the creation of "matrix minds" (2,558).

Standardization of operations while needed to control cost and manage customer expectations makes it hard for managers to create change to further the global thinking (matrix minds) of the company. American, it might be argued is less likely to implement any artifacts realized through this matrix process than Northwest. Northwest, it seems, has a more globally diverse workforce, due to their overseas hubs, and therefore might be more open to trying things that might help to develop the global mindset. American, being what seems to be less committed to global mindedness, might find it harder to implement ideas that come from other cultures. This lack of global mindset and the lack of global management centers (hubs) make it far more difficult in creating a global career path. Although a mid level manager may be able to seek positions in global locations, this option does not apply to Americans staff or upper management levels.

Northwest, on the other hand might be able to let the higher levels of the mid-management rotate through global management centers (hubs) to a somewhat greater extend. It might also be added that due to the nature of the airline business, a global career path is somewhat stifled due to the ready availability of travel. In other words the need for a high level manager being assigned in the global office is somewhat degraded by the fact that with-in a few hours that same manager, assigned to headquarters, can be in the global work area. This ease of travel decreases the need and expense incurred by having the manager assigned to the global office full time. However, the assets that are gained by inclusion of global cultures should be exploited to their full extent. Northwest once again has an advantage in this area due to their larger global operations (hubs).

Although they have changed their name, from Northwest-Orient, it is clear that they have integrated the best of the prevalent cultures. American has a far less availability, percentage wise, of diversity to draw from. However, once again with the acquisition of TWA, cultural assets may be further realized at American. American and Northwest both have standardized training and policies in place to insure the "shared identity" (2,559) of their respected employees. There is no doubt that there is room in the global economy for both American and Northwest airlines. However, the question of which has a better global organization is not an easy one to answer.

At first glance it may appear that Northwest is the more divers and therefore has a better global culture. This would lead to a conclusion that it is the larger of the airlines. This is indeed incorrect in that American is considered the largest airline and Northwest is considered fourth. Both, it can be argued, have a strong cultural perspective, fit and adaptive organization. The all-important question is which is currently better suited to continue developing a global organizational culture. Both companies' have clear and simple vision statements, although American's could be a little more in depth.

Both companies have effective information distribution systems, training and standardization procedures. The future it can be argued will come down to which company is able to create the matrix mind, develop global career paths and then implement these culture assets into their product. To answer this question one must wait and see what the future holds. Diversity " At Northwest Airlines, we recognize and value diversity. We are an Equal Opportunity / Affirmative Action Employer", this quote reflects its view on diversity greeting people who visit their website for career opportunities. Believing that diversity brings forth creativity Northwest has opened its doors in favor of it.

Creativity is the heart of business success. There was one time in job culture that everyone was expected to be alike, but due to the melting pot that our nation has become, diversity is paramount. The adaptive ness in this company has to be greater than any other airline in order for them to compete in all regions throughout the world. Northwest Airlines have to maintain their adaptive ness by entering strategic alliances with many of the world's most valuable and trusted airlines. Providing customers with service to more that one hundred and twenty countries and six different continents. Northwest airlines have been one of the top training companies to produce an adaptive environment in different countries and cultures within those cultures.

The fitness of Northwest airlines is based on ethics, hard work and new ideas. Ethics are vital to a company's success, due to the fact that other company ethical foundation is tarnish. The consistent loyalty and service throughout northwest airlines makes it a growing competitor in the major airlines. New ideas bring forth more efficient ways to serve the customers. In conclusion, the adaptive ness, hard work, new ideas and diversity make Northwest a top competitor airline. Expanding diversity in the work place strengthens American Airlines quality in their services, while expanding career opportunity to employers.

Various resource groups assist in improving the airline's work environment by suggesting methods to the Diversity advisory council. A resource group exists not only for racial backgrounds, but also cultural, religious, social, and educational backgrounds bringing forth more diversity in the workplace. African-American Employee Resource group, Asian Cultural Association, Caribbean Employees, Christian Resource group, Employees with Disabilities, Gay, Lesbian, Transgender and Bisexual Employees, Indian Employees, Jewish Resource group, Latin Employee Resource group, Muslim Resource group, Native American Employee Resource group, Women in Aviation, Work and Family Balance, 40 Plus / Senior Employees (fourteen in all) continue to build a more inclusive organization at AMR. Employees are able to network, receive advice and mentoring from their peers due to being able total to people with similar backgrounds.

Members' interest in the community and in the company reflects AMR's diversified organization. Proving that quality service to the public, interaction of employees, and expansion of career opportunities for employers improved greatly due to the evolution of American Airlines more diversified organization. Ethics The Macquarie Dictionary defines ethics as, 'A system of moral principles by which human actions and proposals may be judged good or bad or right or wrong. ' The definition of ethics can be a bit confusing due to everyone's ability to interpret ethical issues in different ways. Both Northwest and American employees show great interest in helping the company's to recover from recent airline financial difficulties by taking pay cuts and dealing with layoffs.

Both airline's have attempted to stay involved with the community and strive to continually financially contribute to areas they serve. American and Northwest both have excellently stated codes of conduct due to their continuous presence in the industry. Ethical conduct has never been cut and dry though. The inside management principles, rewards and punishments, and training programs can affect the overall ethical culture at an organization. At this point in time, American Airline's organization seems to be a bit stronger than Northwest.

This is very surprising due to the fact that American's parent company, AMR, is in serious financial trouble at this time. American is much more open to employee comments and ideas. They are attempting to keep their employees more a part of the decision process than other airlines in order to satisfy them and keep them working without the expected benefit of raises and promotions. Many airlines have been asking the employees to pass up the possibility of a raise this year in order to avoid more layoffs and continue to stay in business. Northwest Airlines on the other hand does not have the same type of cohesiveness as American. This may simply be because American is in trouble and they are banding together in order to survive.

Nevertheless, Northwest has had numerous lawsuits involving sexual harassment, whistle blowing and various other negative occurrences. The company culture has suffered greatly due to these issues. There have been some serious allegations of sexual harassment in the past but Northwest has made a huge effort to move away from this laid-back atmosphere that allowed this sort of occurrence to happen. Whistle-blowing policies and practices has always been a large concern in the airline industry. This is mainly involving maintenance procedures and releasing aircraft that may be unsafe.

Northwest Airlines has also had a number of maintenance and safety related fines and accusations over the last few years. This is an ethical issue. It involves the lives of numerous passengers at any given time period and has negatively affected the company's reputation with customers and employees. Employees of Northwest felt they were receiving massive pressure to keep the planes active and completing maintenance as quickly as possible. The new societal expectations involving safety have created a lot of controversy among the airlines. American Airlines has received fines for security procedures, which did not seem to adversely affect the employees of the company.

Although American Airlines appears to have a stronger culture, both airlines have improved deficiencies since the Alaskan Airlines crash of 2000, which put all major airlines maintenance procedures under scrutiny, and the 2001 terrorist attacks, which had the entire nation judging the airline's security procedures. The fit of both companies is pretty positive. The airline industry is so competitive that an airline cannot afford to fail to fit to the industry's needs. Both airlines employees feel a part of the decision-making process and feel like they are headed in the right direction. Employees believe in the codes of conduct at both airlines and believe that after some of the industry's tragedies the industry is headed in the right direction ethically speaking. The recent problems have caused some personnel to discontinue looking out for everyone's interests and just focusing on their own.

American has been having this problem a bit more than Northwest but this trend is consistent throughout the industry. Many years ago, American was the leading airline and most others did not even compare. In recent years with airline like Southwest and Jet blue, the major airlines have been forced to rethink their practices and work harder to keep the employees satisfied. American has not been able to adapt to changes needed in the company as well to the financial difficulties of AMR. The upper management seems to be more concerned with their personal concerns rather than the employees throughout this process. This has negatively affected the employee's attitudes and feelings in the work environment.

In a time when things are unstable most upper management personnel are looking out for number one in order to secure future employment with the airline. Although the airline remains cohesive in order to better negotiate with the stockholders and board of directors regarding the company's future. Both companies have survived a significant amount of time due to adapting and improving so both have staying power in the industry. Both companies are positively supportive of unions for the employees and do not attempt to hire non-union employees to lower wages. All airlines have adapted positively to societal expectations since the terrorist attacks of 2001. The industry has been under increased scrutiny recently and have adapted accordingly.

Northwest has had some problems with pilots but they have not been hit as hard as American. American has had some security problems, which have reflected the company's ethical practices. Northwest, being more financially secure, has been able to keep the needs of the stockholders, customers and employees in mind while attempting to profit. American has been a bit more concerned about it's own interests and not the interests of the employees as much.

They have had to layoff personnel with no warning whatsoever. Both companies have excellent training programs, which most employees seem to be happy with at this time. There is no question that the airline industry's largest ethical issue is maintenance procedures. This begins with top management wanted all aircraft 'airworthy' at all times in order to have as many passengers as possible. This tests all personnel from the top down. The personnel not completing work properly or simply signing off procedures that were not completed is always an issue.

Not properly conducting safety inspections or allowing the aircrafts to fly with known deficiencies is a problem found throughout management in the industry. Neither Northwest or American have had a significant incident that put them in the spotlight but both have had their share of fines relating to maintenance procedures and whistle-blowing occurrences regarding these same procedures. Northwest has had a few problems concerning the treatment of whistle-blowers while American has not. Neither company has a negative ethical environment. Both have their problems in an industry that has seen more than it's fair share of lawsuits and accidents. Both companies have a strong journey up to this point and both will probably continue this trend.

Neither Northwest or American shows any chance of closing their doors and both will continue to properly adapt as best they can during these trying times. Technology The concept of organizational culture has its roots in cultural anthropology. Just as there are cultures in larger human society, there seem to be cultures within organizations. These cultures are similar to societal cultures. They are shared, communicated through symbols, and passed down from generation to generation of employees. Many definitions of organizational culture have been proposed.

Most of them agree that there are several levels of culture and that these levels differ in terms of their visibility and their ability to be changed. The definition of organizational (corporate) culture is a pattern of basic assumptions that are considered valid and that are taught to new members as the way to perceive, think, and feel in the organization. In both American and Northwest airlines, their cultures provide a sense of identity to the members and increase their commitment to the organization. American and Northwest airlines have both been in operation since the early 1900's. Both company's employees seem to internalize the values of the company.

They find their work rewarding and they identify with their fellow workers. This, in turn, enhances their level of motivation and causes the employees to be more committed to their company. Culture is a sense-making device for organization members. It provides a way for employees to interpret the meaning of organizational events and reinforces the values in the organization. Culture also serves as a control mechanism for shaping behavior.

The strength, fit, and adaptive ness of the cultures of American and Northwest airlines give these two companies their identity. The strong culture perspective states that organizations with "strong" cultures perform better than other organizations. A strong culture is an organizational culture with a consensus on the values that drive the company and with an intensity that is recognizable even to outsiders. Thus, a strong culture is deeply held and widely shared. It also is highly resistant to change. Strong cultures are thought to facilitate performance for three reasons.

First, these cultures are characterized by goal alignment; that is, all employees share common goals. Second, strong cultures create a high level of motivation because of the values shared by the members. Third, strong cultures provide control without the oppressive effects of a bureaucracy. Contrasting the strength of American Airline's culture compared to Northwest's is really not much of a comparison. American Airlines has built itself into the powerhouse airline of our time. They put safety, service, product, technology, network, and culture above all else.

Excellence in these areas has always been the key to their long-term success. The "fit" culture perspective argues that a culture is good only if it fits the industry's strategy. Three particular characteristics of an industry may affect culture: the competitive environment, customer requirements, and societal expectations. In the airline industry, companies face a highly competitive environment, customers who require highly reliable schedules of flights, and a society that expects state-of-the-art technology and high-quality service. The fit perspective is useful in explaining short-term performance but not long-term performance. It also indicates that it is difficult to change culture quickly, especially if the culture is widely shared and deeply held.

But it doesn't explain how companies can adapt to environmental change. In my opinion, American and Northwest airlines are pretty much even when it comes to the "fit" perspective. Both companies' cultures fit the industry's strategy. All employees of both American and Northwest airlines can have a positive impact on the quality of the decisions made about their business. All the employees of both companies also have the opportunity to voice their opinions about matters important to them. A culture where employee differences and contributions are valued and appreciated is an important focus of the fit perspective.

The adaptive ness of the cultures of American and Northwest airlines has the theme that only cultures that help organizations adapt to environmental change are associated with excellent performance. American and Northwest's adaptive cultures are cultures that encourage confidence and risk taking among their employees, have leadership that produces change, and focuses on the changing needs of customers. Both companies facilitate change to meet the needs of their stockholders, customers, and employees and cautious management that tries to protect their own interests characterizes Neither company. Both American and Northwest airlines showed significantly better long-term economic performance which indicates that they are both adaptive companies.

Another challenge than American and Northwest Airlines face is effectively managing technological innovation. Technology consists of the intellectual and mechanical processes used by an organization to transform inputs into products or services than meet organizational goals. American and Northwest Airlines face the challenge of rapidly changing technology and of putting the technology to optimum use in organizations. The ability of managers to incorporate new technologies successfully into their organizations is a major factor that has promoted economic growth in the airline industry.

The Internet has radically changed the way organizations communicate and perform work. By integrating computer, cable, and telecommunications technologies, airlines have learned new ways to compete. In network organizations, time, distance, and space become irrelevant. A networked organization can do business anytime and anywhere, which is essential in the global marketplace. And networking is essential for companies that want to provide quality service to customers. The World Wide Web has created a virtual commercial district.

Customers can book air travel and conduct business around the globe. Technological innovation affects the very nature of the management job. Mangers who once had to coax workers back to their desks from coffee breaks now find that they need to encourage workers mesmerized by new technology to take more frequent breaks. Working with a computer can be stressful, both physically and psychologically. Eyestrain, neck and back strain, and headaches can result from sitting at a computer terminal too long. In addition, workers can become accustomed to the fast response time of the computer and expect the same from their coworkers.

When coworkers do not respond with the speed and accuracy of the computer, they may receive a harsh criticism. In a world of rapid technological innovation, managers must focus more carefully on helping workers manage the stress of their work. They must also take advantage of the wealth of information at their disposal to motivate, coach, and counsel workers rather than try to control them more stringently or police them. In addition, managers will need to develop their technical competence in order to gain workers' respect. Technological change occurs so rapidly that turbulence characterizes most organizations.

Workers must constantly learn and adapt to changing technology so that organizations can remain competitive. Managers must grapple with the challenge of helping workers adapt and make effective use of new technologies. Mangers can take several actions to help employees adjust to changing technology. The workers' participation in early phases of the decision-making process regarding technological changes is important.

Individuals who participate in planning for the implementation of new technology gain important information about the potential changes in their jobs; therefore, they are less resistant to the change. Workers are the users of the new technology. Their input in early stages can lead to a smoother transition into the new ways of performing work. Managers should also keep in mind the effects that new technology has on the skill requirements of workers. Many employees support changes that increase the skill requirements of their jobs. Increased skill requirements often lead to increases in autonomy, more responsibility, and potential pay increases, all of which are received positively by employees.

Whenever possible, managers should select technology that increases workers's kill requirements. Providing effective training about ways to use the new technology is essential. Training helps employees perceive that they control the technology rather than being controlled by it. The training should be designed to match workers' needs, and it should increase the workers's sense of mastery of the new technology.

Mangers face a substantial challenge in leading organizations to adopt new technologies more humanely and effectively. Technological changes are essential for earnings growth and for expanded employment opportunities. The adoption of new technologies is critical determinant of American and Northwest Airlines in the global marketplace.

Bibliography

1. Merriam - Webster Dictionary.. M-W. com. 'Globalization'2. Debra L. Nelson & James Campbell Quick. (2003). Organizational Behavior, Fourth Edition. Thomson. Pages 539-5593. Northwest Airlines.. NWA. com. Company Overview 4. American Airlines.. AMR corp. com. AMR Corporate Information.