Delta Airlines Corporate Culture Paper
Assessing Delta Air Lines Corporate Culture
This paper will discuss the corporate culture of Delta Air Lines, Inc. The team agreed that assessing Delta's corporate culture would definitely be a learning experience. Delta Air Lines, Inc. provides air transportation for passengers and freight throughout the United States and around the world. As of February 1, 2006, Delta (including its wholly owned subsidiaries, Atlantic Southeast Airlines, Inc. and Comair, Inc.) serves 244 domestic cities in 46 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands as well as 70 international cities in 40 countries. Delta mainline, domestic, and international service, Song, Delta Shuttle, Delta Connection, Delta Sky Team, and Worldwide …show more content…
Partners operate 7,113 flights each day to over 506 cities in 93 countries (Delta Air Lines, Inc., 2005). The ongoing financial strain of the airline industry has diminished the stability of the work environment. Delta employs over 55,000 employees where salaries are over 42% of the organizations operating expense, (Dikolli & Sedatole, 2004). Due to the strained industry, Delta is struggling to survive. The organization has undergone tremendous changes and cutbacks causing uncertainty for employees and customers alike. Delta has long been noted for the "family" culture with its employees and excellent service for its customers. This assessment will attempt to exhibit the company's leadership philosophy, the motivation of employees, and the direction the organization is going in relation to corporate culture within airport environment. Formal Prevalent Statements Delta's vision is to be the world's greatest airline. Along with this vision Delta has instituted the following ethical principles:
· Act with integrity - pursue no business opportunity that would violate the law or
Delta's standards of conduct. This begins with the foremost commitment to safety and extends to all other legal and ethical responsibilities, as well.
· Earn the trust of our stakeholders - Deal honestly and in good faith with customers, suppliers, employees, shareowners and everyone else who may be affected by the company actions.
· Respect and support each other - Respect the dignity of fellow employees, recognizing that strength is gained from diversity and inclusiveness.
· Be loyal - Avoid and disclose any activities that might conflict with the responsibilities to Delta and their customers, and protect Delta's assets.
· Act in a way we can be proud of - Only engage in business activities that would be comfortable with if others knew about them.
· Listen - Provide an environment where individuals can question a Delta practice in good faith without suffering any negative consequences.
Delta has always followed a policy of conducting business ethically and in compliance with the letter and spirit of the law. This policy is critical to Delta's domestic as well as its international reputation for excellence and integrity (Delta Air Lines, Inc., 2005).
Workspace and Work Environment The corporate culture is being heavily impacted with the new technology Delta is using. This can be seen with the reduction in customer service agents and the increase of kiosks, Delta direct phones (customers use phones that directly dial a representative for assistance), and virtual check-in capabilities (customers can check-in at home on the web). However, Delta is very much aware of the need for personal service. Although customer service agents have been reduced, Delta still provides specialized services at the airport for check-in. The self-service resources also allow the employees to focus on customers needing additional assistance. In addition, the new technology allows the customer more options for a seamless travel experience. The ever-changing technology is not only providing options for customers, it is also enhancing service in the areas of baggage and cargo while saving the company money. Delta will soon use disposable radio tags to track its passengers' luggage at domestic airports. This will greatly reduce the number of bags that fail to get on the right flight as well as allow agents to tell passengers where their luggage went and when it will be delivered (Industrial Engineer, 2004, p. 22)
Delta ensures that their employees have adequate space to recharge and relax when needed. A break room is provided for all employees. In the break rooms there are televisions, snack and coke machines, and appliances. The company also provides an area for personnel to store their belongings. Delta ensures plenty workspace is provided for employees to complete all transactions and to properly close out their cash drawers. Along with the new technology, employees have a better streamlined process to provide better customer service. It is evident that Delta is redesigning the workplace to align with a new culture. With the new self service avenues, it is clear that the traveling public has changed and is creating a new culture. Delta is very much aware of this new revolution and is taking drastic steps to ensure it quickly embraces the fast-changing traditions. The organization is also incorporating its employees through the new culture change with its leadership and technology.
Prevalent Slogans and Languages Delta has established many programs to sustain the type of corporate culture it feels is necessary. Service excellence is very prevalent within the Delta workforce. Employees are coached consistently on the need to deliver service excellence. Manager and team leaders have been given training and the tools needed to ensure frontline employees understand and fully embrace service excellence. Corporately, the company believes this mindset and culture will win back the customer and strengthen the Delta "family".
The strongest language within the organization is the slogan "Better, Faster, Friendlier". According to Rich Cordell, Senior Vice-President of Airport Customer Service, the goal for Delta is to get passengers through the airport experience better, faster, and friendlier than any other airline (Delta Air Lines, Inc., 2003). The newest slogan is "Good Goes Around". This slogan is in conjunction with the launch of SimpliFares, marking the debut of Delta's new brand campaign. Delta is taking the opportunity with this new ad to communicate its transformation plan. Commercials will feature employees doing their real jobs conveying the idea that good things happen when employees and customers work together. "Good Goes Around" is the first wave in major changes to the new Delta brand. Delta's branding team is working together to make their customer's experience more stylish and inviting (Delta Air Lines, Inc., 2005).
Role Modeling, Training, and Teachings
Adequate training of Delta employees assists the organization in providing above standard customer service. Training is emphasized within the organization as a continual objective. According to Sohoni, et al. (2003), periodic training of pilots to maintain qualifications is a stringent planning cycle and designates ground-school training and simulator training as top priority. Delta puts high priority in the training of its employees. This is to ensure all personnel have the understanding and resources to provide service excellence. In fact, the department of Airport Customer Service mission statement is, "To design and facilitate the highest quality training for Airport Customer Service personnel, empowering them with the knowledge and skills to provide an unequaled airport experience, in pursuit of Delta's mission to become the world's greatest airline", (Delta Air Lines, Inc., 2005). Delta also goes beyond the internal training for its employees. The company also has resources to allow all personnel the opportunity to broaden their education. Delta provides re-imbursement of $2000 for college tuition and certain certifications. In addition, the company provides a web-based resource called e-Learning. This provides employees the ability to complete additional training at home. Rewards and Status Symbols Studies show that personal recognition is the most effective form of motivating team members. Recognition improves morale. Delta's corporate culture reflects the understanding that an attitude is owned by a single person and morale is the collection of a group of attitudes. Therefore, by improving individual attitudes, the overall moral improves. Delta encompasses employees who want to help shape a work life that is purposeful and motivating. With the unstable financial times, recognition provides an effective low-cost way of encouraging higher levels of performance. Recognition could mean the survival of the company and Delta has implemented many meaningful rewards and recognition programs (Delta Air Lines, Inc., 2004). Delta's Gaining Altitude program offers all employees the opportunity to be recognized and rewarded for the care or service they provide to internal and external customers. Gaining Altitude encourages and reinforces attitudes, behaviors, and activities that drive the success of the company's business strategy. Anyone can recommend a coworker for recognition through an online service. The employee to be recognized can receive points that are cumulative towards the purchase of items or vacation packages. This is a newly implemented program and seems to well received by the employees (Delta Air Lines, Inc., 2004).
Delta recognizes employee service anniversaries beginning with the completion of the first year of employment and at five year intervals thereafter with service anniversary pins.
Service pins are presented to employees by their immediate supervisor or manager on or near his or her anniversary date. In addition to the service pin, beginning at 10 years of service, employees will also receive a letter from the Chief Executive Officer. At 20, 40, and 60 years of service, employees receive their choice of a merchandise award in addition to their service pin. This has been a long standing practice by Delta Air Lines (Delta Air Lines, Inc., …show more content…
2004).
Now in its eighth year, the Chairman's Club is designed to be the most prestigious recognition a Delta employee can receive. Each year, the Club inducts 102 new members (100 Delta employees and 2 Delta Technology employees) who personify "The Delta Difference." These employees are nominated by their peers and validated by Delta leaders. Chairman's Club honorees possess dedication and determination and represent the Delta Difference in the lives of customers, community and each other on a daily basis. Employees must be registered at MyDeltaRewards.com to submit or receive a nomination. Any employee may nominate a fellow employee for recognition, but only employees below the director level who have not been previously selected for membership may be nominated (Delta Air Lines, Inc., 2004). Stories and Legends The beginning of Delta started in 1924 as a crop dusting service known as Huff Daland Dusters by C.
E. Woolman, who is the founder of Delta Air Lines. In 1929 a new company was formed as Delta Air Service providing passenger service. On June 17, 1929, Delta operated its first passenger flight over a route that stretched from Dallas, Texas to Jackson, Mississippi. Delta Head quarters moved to Atlanta, Georgia in 1941 and in 1945 the company officially became Delta Air Lines, Inc. All during this time, Delta still operated the crop dusting division which provided the majority of revenues. However, during the 1940's passenger comfort grew throughout this decade with new services and aircraft. Flight attendants, called stewardesses, were added and by the late 1940's hot meals were being served aboard Delta's first pressurized plane, the DC-6. It was during these years that passenger revenues surpassed crop dusting revenues for the first time (Delta Air Lines, Inc., 2003, pp.
3-4).
C. E. Woolman is the one responsible for creating the Delta "family" culture. He is noted for the quotation, "No one person is an airline. An airline is a team. It must be friendly, courteous, cooperative, efficient, and bound as closely as a devoted family," (Delta Air Lines, Inc., 2003, p. 8). Mr. Woolman was well respected by the employees of Delta and was the driving force behind the corporate culture of ensuring excellent service for the passengers and valuing the Delta family.
Measure and Controls of Activities and Processes
To ensure service excellence, Delta has created a performance management website. This website provides sections for performance expectations, tools for managers and Team Leaders to monitor performance, forms to formally assess employees, and resources to provide consequences such as rewards and recognition or administrative actions. In addition, Delta also has Key Performance Indicators (KPI) that each airport station is measured against. These KPI's measures on-time departures, lost luggage per 1,000 passengers, aircraft damages and on-the-job injuries (OJI's). At the end of the calendar year, the KPI's are used to help assess a manager's performance. The KPI's reflects the success or short-fall of the team at each station.
Reactions to Critical Incident or Crisis It is widely known that the airline industry is in a serious crisis and many major airlines are struggling to survive, including Delta. Some airlines have been dissolved, and many are in bankruptcy protection. The executives of Delta Air Lines are painstakingly working on a viable plan to ensure Delta's survival. The executives are also aware of the attention made towards the executives pay. The new executive counsel has made a commitment not to receive any bonuses or stock options during the restructuring of Delta. They are leading by example since all employees took a 19% pay cut and received increased insurance premiums at the beginning of 2006. The actions taken by the executive counsel is demonstrating the Delta "family" culture. The counsel is demonstrating that everyone is a major contributor to Delta's survival and everyone needs to be committed to a shared success.
Workflow and Organizational Structure
Delta mainly utilizes two types of workflow and organizational structure. The company has a formal hierarchy assigning legitimate power to individuals, who then use the power to direct work processes and allocate resources. For example, Performance Leaders coordinates work schedules to ensure proper coverage for the operation. They also make sure employees arrive on time ready to work and complete quality assurance performance evaluations on their team members. The Performance Leader is empowered to handle internal and external customer conflicts by dictating solutions as well as assigning team members to certain job duties. Delta also carries out the formal hierarchy among executives through the division of organizational activities (McShane & Glinow, 2003, p. 508).
Delta also uses the standardization workflow by providing job descriptions and procedures. The company coordinates work by standardizing the team member's goals through KPI's and Quality Assurance Evaluations. To ensure proper procedures are followed, Delta provides extensive training for new hires as well as recurrent training for all employees. However, there are certain departments within Delta that do require people who have learned precise role behaviors from educational programs. Although Delta's organizational structure reflects some type of power relations, the company relies on team work demonstrating Deltas culture is still focused on the family atmosphere (McShane & Glinow, 2003, pp. 509-510).
Systems and Procedures
There are many departments in the Delta organization that have different systems and procedures. The company provides standard operating manuals for each department to ensure each employee has a full understanding of his or her role in a department as well as definitions of the systems for the department. The department of Airport Customer Service has the Passengers Service Manual (PSM,) among many other manuals, that provides information for customer service agents. The Passenger Service Manual is the result of cooperation and teamwork among various areas within Airport Customer Service including ACS Learning, Global Assistance Center and frontline Delta employees. The goal of this manual is to create an up-to-date, easy-to-use reference that helps Delta employees provide the highest level of customer service to passengers. The Passenger Service Manual (PSM) provides the tools and information to accomplish this goal (Delta Air Lines, Inc., 1998). An example of the procedures in the PSM includes the acceptance of passengers, refusal of passengers, baggage acceptance, and ticketing and sales. Delta recognizes the importance of the need to make this type of information readily available. Therefore, all procedural manuals are electronic, allowing employees to access them 24 hours a day 7 days a week. These manuals can also be accessed from home if an employee has the Delta intranet on his or her computer.
Selection and Replacement Policies
Historically, promotion from within the Company has enabled Delta to offer internal personal growth unparalleled in the airline industry. Delta expects internal opportunities to continue to the extent that the company continues to grow and the talent required to maximize the Delta franchise exists internally. Delta employees are encouraged to seek and compete for available positions and to continue to contribute to Delta's success. Delta is proud to be an equal opportunity employer where the diversity among its employees is an important investment in its future. Because this philosophy is valued by employees and championed by those in leadership positions, selection for positions is based on job related criteria and without regard for age, race, religion, color, marital status, parental status, sexual orientation, national origin, sex, pregnancy, citizenship status, arrest record, political affiliation, or disability. Delta is committed to providing reasonable accommodation for qualified employees with a disability and for providing reasonable accommodation for employees' religious beliefs and practices, as required by applicable law. Because the company believes in the soundness of these human relations principles as well as the company's obligations as a federal government contractor, Delta's policy of equal employment opportunity serves as a basis for a comprehensive Affirmative Action Plan that is applicable to all transfers, job bids, and promotions (Delta Air Lines, Inc., 2004, p. 1).
Delta's policy is to select the best qualified applicant for each job opening. This process may begin by considering current Delta employees for open positions, but could also include consideration of external candidates. Demonstrating a high-level of motivation to perform a job and incorporating Delta's values into one's daily job activities are important job competencies as is having the knowledge, skills, and abilities for a particular position. Hiring managers are responsible for choosing high performing candidates for all open positions. The selection process among Delta employees remains a critically important aspect of the overall corporate staffing function (Delta Air Lines, Inc., 2004, p. 5).
An Organization with an Adaptive Culture
An adaptive culture exists when employees focus on the changing needs of customers and other stakeholders and support initiatives to keep pace with these changes. It is very evident that Delta possesses an adaptive culture. With fierce competition and changing technology, it is imperative to Delta's survival to maintain an adaptive culture. The element of external focus is prevalent within the company by the employees embracing the many changes in support of the stakeholders. The employees understand the stakeholders are not just shareholders, but also customers and more importantly the employees themselves. Employees are also continuously finding ways of improvement for a seamless process for both internal and external customers. Many departments within Delta have organized Continuous Improvement Teams (CIT). With the Delta "family" atmosphere, employees have a strong sense of ownership. Team members understand their role and responsibilities for the company's performance and are held accountable. They know it takes everyone as a team to be successful. Delta's culture has definitely been reflected as proactive and quick. With the industry being unstable, Delta cannot afford to not be proactive or quick. One way Delta has demonstrated this is by installing new technology allowing customers faster and a more streamlined check-in process as well as restructuring their flight schedules relieving the congestion in hub cities. Delta values an adaptive culture as it is the foundation of survival in the airline industry.
This paper will discuss the corporate culture of Delta Air Lines, Inc. The team agreed that assessing Delta's corporate culture would definitely be a learning experience. Delta Air Lines, Inc. provides air transportation for passengers and freight throughout the United States and around the world. As of February 1, 2006, Delta (including its wholly owned subsidiaries, Atlantic Southeast Airlines, Inc. and Comair, Inc.) serves 244 domestic cities in 46 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands as well as 70 international cities in 40 countries. Delta mainline, domestic, and international service, Song, Delta Shuttle, Delta Connection, Delta Sky Team, and Worldwide …show more content…
Partners operate 7,113 flights each day to over 506 cities in 93 countries (Delta Air Lines, Inc., 2005). The ongoing financial strain of the airline industry has diminished the stability of the work environment. Delta employs over 55,000 employees where salaries are over 42% of the organizations operating expense, (Dikolli & Sedatole, 2004). Due to the strained industry, Delta is struggling to survive. The organization has undergone tremendous changes and cutbacks causing uncertainty for employees and customers alike. Delta has long been noted for the "family" culture with its employees and excellent service for its customers. This assessment will attempt to exhibit the company's leadership philosophy, the motivation of employees, and the direction the organization is going in relation to corporate culture within airport environment. Formal Prevalent Statements Delta's vision is to be the world's greatest airline. Along with this vision Delta has instituted the following ethical principles:
· Act with integrity - pursue no business opportunity that would violate the law or
Delta's standards of conduct. This begins with the foremost commitment to safety and extends to all other legal and ethical responsibilities, as well.
· Earn the trust of our stakeholders - Deal honestly and in good faith with customers, suppliers, employees, shareowners and everyone else who may be affected by the company actions.
· Respect and support each other - Respect the dignity of fellow employees, recognizing that strength is gained from diversity and inclusiveness.
· Be loyal - Avoid and disclose any activities that might conflict with the responsibilities to Delta and their customers, and protect Delta's assets.
· Act in a way we can be proud of - Only engage in business activities that would be comfortable with if others knew about them.
· Listen - Provide an environment where individuals can question a Delta practice in good faith without suffering any negative consequences.
Delta has always followed a policy of conducting business ethically and in compliance with the letter and spirit of the law. This policy is critical to Delta's domestic as well as its international reputation for excellence and integrity (Delta Air Lines, Inc., 2005).
Workspace and Work Environment The corporate culture is being heavily impacted with the new technology Delta is using. This can be seen with the reduction in customer service agents and the increase of kiosks, Delta direct phones (customers use phones that directly dial a representative for assistance), and virtual check-in capabilities (customers can check-in at home on the web). However, Delta is very much aware of the need for personal service. Although customer service agents have been reduced, Delta still provides specialized services at the airport for check-in. The self-service resources also allow the employees to focus on customers needing additional assistance. In addition, the new technology allows the customer more options for a seamless travel experience. The ever-changing technology is not only providing options for customers, it is also enhancing service in the areas of baggage and cargo while saving the company money. Delta will soon use disposable radio tags to track its passengers' luggage at domestic airports. This will greatly reduce the number of bags that fail to get on the right flight as well as allow agents to tell passengers where their luggage went and when it will be delivered (Industrial Engineer, 2004, p. 22)
Delta ensures that their employees have adequate space to recharge and relax when needed. A break room is provided for all employees. In the break rooms there are televisions, snack and coke machines, and appliances. The company also provides an area for personnel to store their belongings. Delta ensures plenty workspace is provided for employees to complete all transactions and to properly close out their cash drawers. Along with the new technology, employees have a better streamlined process to provide better customer service. It is evident that Delta is redesigning the workplace to align with a new culture. With the new self service avenues, it is clear that the traveling public has changed and is creating a new culture. Delta is very much aware of this new revolution and is taking drastic steps to ensure it quickly embraces the fast-changing traditions. The organization is also incorporating its employees through the new culture change with its leadership and technology.
Prevalent Slogans and Languages Delta has established many programs to sustain the type of corporate culture it feels is necessary. Service excellence is very prevalent within the Delta workforce. Employees are coached consistently on the need to deliver service excellence. Manager and team leaders have been given training and the tools needed to ensure frontline employees understand and fully embrace service excellence. Corporately, the company believes this mindset and culture will win back the customer and strengthen the Delta "family".
The strongest language within the organization is the slogan "Better, Faster, Friendlier". According to Rich Cordell, Senior Vice-President of Airport Customer Service, the goal for Delta is to get passengers through the airport experience better, faster, and friendlier than any other airline (Delta Air Lines, Inc., 2003). The newest slogan is "Good Goes Around". This slogan is in conjunction with the launch of SimpliFares, marking the debut of Delta's new brand campaign. Delta is taking the opportunity with this new ad to communicate its transformation plan. Commercials will feature employees doing their real jobs conveying the idea that good things happen when employees and customers work together. "Good Goes Around" is the first wave in major changes to the new Delta brand. Delta's branding team is working together to make their customer's experience more stylish and inviting (Delta Air Lines, Inc., 2005).
Role Modeling, Training, and Teachings
Adequate training of Delta employees assists the organization in providing above standard customer service. Training is emphasized within the organization as a continual objective. According to Sohoni, et al. (2003), periodic training of pilots to maintain qualifications is a stringent planning cycle and designates ground-school training and simulator training as top priority. Delta puts high priority in the training of its employees. This is to ensure all personnel have the understanding and resources to provide service excellence. In fact, the department of Airport Customer Service mission statement is, "To design and facilitate the highest quality training for Airport Customer Service personnel, empowering them with the knowledge and skills to provide an unequaled airport experience, in pursuit of Delta's mission to become the world's greatest airline", (Delta Air Lines, Inc., 2005). Delta also goes beyond the internal training for its employees. The company also has resources to allow all personnel the opportunity to broaden their education. Delta provides re-imbursement of $2000 for college tuition and certain certifications. In addition, the company provides a web-based resource called e-Learning. This provides employees the ability to complete additional training at home. Rewards and Status Symbols Studies show that personal recognition is the most effective form of motivating team members. Recognition improves morale. Delta's corporate culture reflects the understanding that an attitude is owned by a single person and morale is the collection of a group of attitudes. Therefore, by improving individual attitudes, the overall moral improves. Delta encompasses employees who want to help shape a work life that is purposeful and motivating. With the unstable financial times, recognition provides an effective low-cost way of encouraging higher levels of performance. Recognition could mean the survival of the company and Delta has implemented many meaningful rewards and recognition programs (Delta Air Lines, Inc., 2004). Delta's Gaining Altitude program offers all employees the opportunity to be recognized and rewarded for the care or service they provide to internal and external customers. Gaining Altitude encourages and reinforces attitudes, behaviors, and activities that drive the success of the company's business strategy. Anyone can recommend a coworker for recognition through an online service. The employee to be recognized can receive points that are cumulative towards the purchase of items or vacation packages. This is a newly implemented program and seems to well received by the employees (Delta Air Lines, Inc., 2004).
Delta recognizes employee service anniversaries beginning with the completion of the first year of employment and at five year intervals thereafter with service anniversary pins.
Service pins are presented to employees by their immediate supervisor or manager on or near his or her anniversary date. In addition to the service pin, beginning at 10 years of service, employees will also receive a letter from the Chief Executive Officer. At 20, 40, and 60 years of service, employees receive their choice of a merchandise award in addition to their service pin. This has been a long standing practice by Delta Air Lines (Delta Air Lines, Inc., …show more content…
2004).
Now in its eighth year, the Chairman's Club is designed to be the most prestigious recognition a Delta employee can receive. Each year, the Club inducts 102 new members (100 Delta employees and 2 Delta Technology employees) who personify "The Delta Difference." These employees are nominated by their peers and validated by Delta leaders. Chairman's Club honorees possess dedication and determination and represent the Delta Difference in the lives of customers, community and each other on a daily basis. Employees must be registered at MyDeltaRewards.com to submit or receive a nomination. Any employee may nominate a fellow employee for recognition, but only employees below the director level who have not been previously selected for membership may be nominated (Delta Air Lines, Inc., 2004). Stories and Legends The beginning of Delta started in 1924 as a crop dusting service known as Huff Daland Dusters by C.
E. Woolman, who is the founder of Delta Air Lines. In 1929 a new company was formed as Delta Air Service providing passenger service. On June 17, 1929, Delta operated its first passenger flight over a route that stretched from Dallas, Texas to Jackson, Mississippi. Delta Head quarters moved to Atlanta, Georgia in 1941 and in 1945 the company officially became Delta Air Lines, Inc. All during this time, Delta still operated the crop dusting division which provided the majority of revenues. However, during the 1940's passenger comfort grew throughout this decade with new services and aircraft. Flight attendants, called stewardesses, were added and by the late 1940's hot meals were being served aboard Delta's first pressurized plane, the DC-6. It was during these years that passenger revenues surpassed crop dusting revenues for the first time (Delta Air Lines, Inc., 2003, pp.
3-4).
C. E. Woolman is the one responsible for creating the Delta "family" culture. He is noted for the quotation, "No one person is an airline. An airline is a team. It must be friendly, courteous, cooperative, efficient, and bound as closely as a devoted family," (Delta Air Lines, Inc., 2003, p. 8). Mr. Woolman was well respected by the employees of Delta and was the driving force behind the corporate culture of ensuring excellent service for the passengers and valuing the Delta family.
Measure and Controls of Activities and Processes
To ensure service excellence, Delta has created a performance management website. This website provides sections for performance expectations, tools for managers and Team Leaders to monitor performance, forms to formally assess employees, and resources to provide consequences such as rewards and recognition or administrative actions. In addition, Delta also has Key Performance Indicators (KPI) that each airport station is measured against. These KPI's measures on-time departures, lost luggage per 1,000 passengers, aircraft damages and on-the-job injuries (OJI's). At the end of the calendar year, the KPI's are used to help assess a manager's performance. The KPI's reflects the success or short-fall of the team at each station.
Reactions to Critical Incident or Crisis It is widely known that the airline industry is in a serious crisis and many major airlines are struggling to survive, including Delta. Some airlines have been dissolved, and many are in bankruptcy protection. The executives of Delta Air Lines are painstakingly working on a viable plan to ensure Delta's survival. The executives are also aware of the attention made towards the executives pay. The new executive counsel has made a commitment not to receive any bonuses or stock options during the restructuring of Delta. They are leading by example since all employees took a 19% pay cut and received increased insurance premiums at the beginning of 2006. The actions taken by the executive counsel is demonstrating the Delta "family" culture. The counsel is demonstrating that everyone is a major contributor to Delta's survival and everyone needs to be committed to a shared success.
Workflow and Organizational Structure
Delta mainly utilizes two types of workflow and organizational structure. The company has a formal hierarchy assigning legitimate power to individuals, who then use the power to direct work processes and allocate resources. For example, Performance Leaders coordinates work schedules to ensure proper coverage for the operation. They also make sure employees arrive on time ready to work and complete quality assurance performance evaluations on their team members. The Performance Leader is empowered to handle internal and external customer conflicts by dictating solutions as well as assigning team members to certain job duties. Delta also carries out the formal hierarchy among executives through the division of organizational activities (McShane & Glinow, 2003, p. 508).
Delta also uses the standardization workflow by providing job descriptions and procedures. The company coordinates work by standardizing the team member's goals through KPI's and Quality Assurance Evaluations. To ensure proper procedures are followed, Delta provides extensive training for new hires as well as recurrent training for all employees. However, there are certain departments within Delta that do require people who have learned precise role behaviors from educational programs. Although Delta's organizational structure reflects some type of power relations, the company relies on team work demonstrating Deltas culture is still focused on the family atmosphere (McShane & Glinow, 2003, pp. 509-510).
Systems and Procedures
There are many departments in the Delta organization that have different systems and procedures. The company provides standard operating manuals for each department to ensure each employee has a full understanding of his or her role in a department as well as definitions of the systems for the department. The department of Airport Customer Service has the Passengers Service Manual (PSM,) among many other manuals, that provides information for customer service agents. The Passenger Service Manual is the result of cooperation and teamwork among various areas within Airport Customer Service including ACS Learning, Global Assistance Center and frontline Delta employees. The goal of this manual is to create an up-to-date, easy-to-use reference that helps Delta employees provide the highest level of customer service to passengers. The Passenger Service Manual (PSM) provides the tools and information to accomplish this goal (Delta Air Lines, Inc., 1998). An example of the procedures in the PSM includes the acceptance of passengers, refusal of passengers, baggage acceptance, and ticketing and sales. Delta recognizes the importance of the need to make this type of information readily available. Therefore, all procedural manuals are electronic, allowing employees to access them 24 hours a day 7 days a week. These manuals can also be accessed from home if an employee has the Delta intranet on his or her computer.
Selection and Replacement Policies
Historically, promotion from within the Company has enabled Delta to offer internal personal growth unparalleled in the airline industry. Delta expects internal opportunities to continue to the extent that the company continues to grow and the talent required to maximize the Delta franchise exists internally. Delta employees are encouraged to seek and compete for available positions and to continue to contribute to Delta's success. Delta is proud to be an equal opportunity employer where the diversity among its employees is an important investment in its future. Because this philosophy is valued by employees and championed by those in leadership positions, selection for positions is based on job related criteria and without regard for age, race, religion, color, marital status, parental status, sexual orientation, national origin, sex, pregnancy, citizenship status, arrest record, political affiliation, or disability. Delta is committed to providing reasonable accommodation for qualified employees with a disability and for providing reasonable accommodation for employees' religious beliefs and practices, as required by applicable law. Because the company believes in the soundness of these human relations principles as well as the company's obligations as a federal government contractor, Delta's policy of equal employment opportunity serves as a basis for a comprehensive Affirmative Action Plan that is applicable to all transfers, job bids, and promotions (Delta Air Lines, Inc., 2004, p. 1).
Delta's policy is to select the best qualified applicant for each job opening. This process may begin by considering current Delta employees for open positions, but could also include consideration of external candidates. Demonstrating a high-level of motivation to perform a job and incorporating Delta's values into one's daily job activities are important job competencies as is having the knowledge, skills, and abilities for a particular position. Hiring managers are responsible for choosing high performing candidates for all open positions. The selection process among Delta employees remains a critically important aspect of the overall corporate staffing function (Delta Air Lines, Inc., 2004, p. 5).
An Organization with an Adaptive Culture
An adaptive culture exists when employees focus on the changing needs of customers and other stakeholders and support initiatives to keep pace with these changes. It is very evident that Delta possesses an adaptive culture. With fierce competition and changing technology, it is imperative to Delta's survival to maintain an adaptive culture. The element of external focus is prevalent within the company by the employees embracing the many changes in support of the stakeholders. The employees understand the stakeholders are not just shareholders, but also customers and more importantly the employees themselves. Employees are also continuously finding ways of improvement for a seamless process for both internal and external customers. Many departments within Delta have organized Continuous Improvement Teams (CIT). With the Delta "family" atmosphere, employees have a strong sense of ownership. Team members understand their role and responsibilities for the company's performance and are held accountable. They know it takes everyone as a team to be successful. Delta's culture has definitely been reflected as proactive and quick. With the industry being unstable, Delta cannot afford to not be proactive or quick. One way Delta has demonstrated this is by installing new technology allowing customers faster and a more streamlined check-in process as well as restructuring their flight schedules relieving the congestion in hub cities. Delta values an adaptive culture as it is the foundation of survival in the airline industry.