Essay on American and Northwest Airlines

4865 Words20 Pages
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
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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
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