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Restucturing an Organization - Organizational Behavior

Pre September 11, Organizational Structure
    A) September 11, 2001
    1. Drastic Change in the Travel Industry
    2. Bankruptcy
    3. Slip Leave
    4. Employee Layoffs
      • Stress of waiting
      • Internal insecurities
    B) Organizational Restructuring
    1. Eliminating Positions
    2. Combining tasks and workloads
    3. Post September 11, Organizational Structure
    C) Rebuilding
    1. Business bounces back
    2. Increased workload for current employees
    3. Need for rehire



September 11, 2001 marked a major change in our world. It had a particularly devastating effect on the travel industry. With planes grounded for days it meant millions of dollars in lost revenue. Consequently it also meant filing chapter 11 for many airlines and the closure of business altogether for related branches of the industry. Bankruptcies within the travel industry prompted many industry giants to rethink the way they function.


The first item of business was to begin by cutting back on staffing. Lay-offs and waiting for companies to decide which areas should be cut caused a great deal of insecurity amongst employees. To alleviate some of the hardships layoffs could cause, some companies offered alternative means of lifting some of their financial burdens. By offering extended amounts of time off, know as slip leaves, it allowed employees to take an extended leave of absence while retaining their jobs. It also helped the company save on the costs of labor.


Corporate restructuring was the next logical step of the process. Each company was forced to take a look at how their organizations were being run and where they might be able to save on labor costs. Because of the turmoil in the industry, some of the higher paying positions were the first to go. Companies combined some of the higher paying positions by redistributing workloads and eliminating redundant positions (refer to the organizational structures pre and post September 11.). Companies would now be able to save money and focus on bringing business back to a drowning industry.


As consumer faith in airlines returned, business began to bounce back. The result of a tragic event has given the travel industry an opportunity to take a look at its internal workings and streamline its processes. The cutbacks actually made a more efficient industry that functions better today. As business once again begins to flourish, the workload on remaining employees is becoming unmanageable. The need to rehire has once again opened the market for jobs in travel.


The travel industry is a volatile industry that sees its ups and downs directly related to fluctuations in the economy. For now, they are once again flourishing and it seems that another look at structure change might be at hand.