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Comparison of American Airlines and Northwest Airlines

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Comparison of American Airlines and Northwest Airlines

How does the organizational culture affects the performance of their employees?

Organizational culture includes all the behaviors and values or organization that shaped its

unique psychological and social environment (Gotham Culture, 2006). Moreover, culture

describes as the shared customs, beliefs, attitudes, and rules that have been developed and

established over a period of time. Continuosly, employee performance includes workers

behaviour in the workplace and their execution of ther assigned duties and responsibilities.

Thus, organizational culture affects the overall performance of an employee in many different

aspects.

Correspondingly, each organization encompases their own organizational culture

which is based on the type of business they are running in order to be successful. An airline

company is a type of business that provides air transport services for all the travelling

passengers. It is an organization that operate aircraft in order to exhibit their services with

their various partners that operates and offers the same flight.

Additionally, the organizations of American Airlines and Northwest Airlines depicts

its own strenght, fit, and adaptiveness of the culture. In year 2013, US Airways and American

Airlines announced their unification as The New American Airlines (Bartleby Research,

2020). Along with the time of their integration, merging of their values of organization,

customers, and even employess also happened. Furthermore, the strength of the The New

American Airlines includes strong brand image and strong organizational commitment of all

their existing intelligence employees. Also, they are the one of the most recognized airlines in

the world that achieved the best customer loyalty programs, wherein they offered about 350

destinations flights. Conversely, the strength of the culture of Northwest Airlines can be seen

by the management of their routes. Originally, the flying route of Northwest Airlines is only
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between Chicago and Minneapolis. But as time goes by, the airlines includes both

international and domestic flight systems from Chicago to other points of the United States,

Europe, and Far East (Nolen, 2020). Therefore, Northwest Airlines displays continuous

expansion of routes that indicates their rapid development and adaptability.

Subsequently, both airlines exhibited the fit of their culture within the industry. This

can be seen with how they dealt with the global marketplace of the world. Thus, globalization

in the industry of the airlines may seem to be a natural flow of the business. The New

American Airlines centered its expansion in the United States while Northwest Airlines

continually expand its routes to Japan country, which considered as the first airline in the

Asian market. Also, Northwest Airlines continued to have its globalization to KLM Airlines

that brings expansion to Netherlands country. Whereas, the New American Airlines refrained

its expansion of flights to other continents as discussed above because of its focused on the

United States flights only.

Moreover, the organizational fit found at Northwest Airlines help to explained its

great culture adaptability comapared to The New American Airlines. Continually, The New

American Airlines exhibited more centralized management that divulge its power. The

stockholders of The New American Airlines appeared to be third in line when it comes to

organizational decisions that showed the greediness of the upper management. This leads to

the low adaptability of the culture of the airlines needed in the global organization. This type

of management is not found in the Northwest Airlines.

Conclusively, the Northwest Airlines displayed better performance when it comes to

the strenght, fit, and adaptiveness of the culture. This is based on the type of management

they had. As a result, these performance affects the state of the organizational culture in terms

of the how their employees behave in a particular circumstances. Lastly, it also influences
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one’s attitude, moral, and belief that will developed over period of time in regards with the

culture they had.


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References

Bartleby Research. (2020). American Airlines and Its Company Culture and Organizational

Performance Essay. Bartleby Research Updates.

https://www.bartleby.com/essay/American-Airlines-And-Its-Company-Culture-And-

P3U3X7XYLC5Q

Gotham Culture. (2006). Organizational Culture Definition and Characteristics. Gotham

Culture Updates. https://gothamculture.com/what-is-organizational-culture-definition/

Nolen J. (2020). Northwest Airlines Incorporation: American Company. Encyclopedia

Britannica. https://www.britannica.com/topic/Northwest-Airlines-Inc

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