HM2022 Organisational Structure of Sydney Airport Assessment Answer
ORGANISATIONAL STRUCTURE AND EFFECTIVENESS
The report deals with the Sydney Airport. The organisational structure of Sydney Airport is discussed. The organisational structure deals with management and performance system. Sydney airport is world’s largest and busiest airport. The strategies and possible vision of the airport is highlighted. The airport is focusing on digital transformation that helps in providing best services to its customers. The hierarchical level of organisational helps in managing the organisation structure. The centralised structure of airport helps in providing equal opportunities to employees in decision making process. However, it also helps in increasing business performance of airport. The information technology helps in providing better guidance to employees as well as best services to customers can be provided.
Introduction and Background information on Sydney Airport
The organisational structure is a system that helps to outline certain activities that are ordered to achieve the goals of an organisation. These activities includes responsibilities, rules, and roles of members. The organisational structure helps in dealing with the management and performance of an organisation. Sydney Airport is one of the world’s oldest and busiest airport. Due to it, in the year 2018, the airport was used by around 44.4 million passengers (Sydney Airport, 2019a). The airport is located 8 km away from the Sydney CBD and has convenient transport to the city by both roadway and rail. The airport is Australia's national prosperity and facilitating international trade and community. The networking system of the airport is secure. Hence, passengers feel safe while they are in airports. The airport has three passenger terminals T1, T2, and T3. Five international cargo operators controlled the cargo terminal. There is around 80% of freight carried by passengers. It is the most significant freight hub that took about 45% of freight import and export in Australia.
It is one of the oldest continually operating airports in the world. In the year 1919 first canvas hanger was built, and the first aircraft was assembled. As time passes, the airfield has been progressively expanded and modified in responses to traffic growth for the fleet mix as well as aircraft size. The airport is also registered in Australian Stock Exchange. The gross domestic product of the airport can also be increased by $23.9 billion as a result of the strong infrastructure. The airport is consisting of parallel runways from south to north direction, east to west direction, taxiways and aircraft packing with updated infrastructure (Sydney Airport, 2019a). The tracks support the taxiway system that facilitates the efficient movement of aircraft in between tracks and terminals areas. Rapid exit taxiways have been provided on parallel runways which help to minimise occupancy time (Infrastructuremagazine, 2019). The aircraft parking position is supplied by aprons which are also known as stands. Apart from it, there are around 41 stands in airports. The organisation also carried domestic and regional operations. The year 2060, the airport has estimated that direct expenditure will be $24.6 billion (Sydney Airport, 2019a).
Section 1: Overview of the airport’s organisational structure, strategies and possible reasons
The airport have seven boards of directors, seven management team members and more than 1000 investors, including retail investors, institutional investors and superannuation frauds. The board and management team sets up strategic directions for operations.
Figure 1: Organisational Structure
(Source: Sydney Airport, 2019a)
The primary strategy of the airport is to provide maximum facilities to customers and employees and generating maximum revenue. The airport had developed a master plan until 2039 for setting up strategic direction for the development of Sydney Airport. The strategic decision is made with the help of local government, tourism industry, aviation industry, NSW Government, local community and business sectors. The infrastructure of Sydney airport has generated about $38 billion through economic activities. The airport also focuses on facilitating more than that of 30,900 jobs at airports. The Sydney airport expansion is future planning for managing sustainability that can increase 51% in passengers and 65.5 million during the planning period (Sydney Airport, 2019a). The planning also helps to mitigate the impact of aircraft noise in the environment (Ryerson, 2016). The organisation is also focusing on improving road network performance. To achieve networking Performance Airport has developed a Five year Ground Transport plan. Therefore, airport has focused on technological innovation to achieve Five Year Ground Transportation Plan. The organisation has focused on digital innovation that helps in serving the best quality services to customers. The digital innovation includes online ticket booking, Wifi software with SCALA, media software that assistances in delivering relevant information, travel-specific details to passengers (Infrastructure Magazine, 2019). The digital services are needed to be upgraded because this helps in providing better services to passengers.
The central vision of the airport is to deliver world-class airport experience and foster growth of aviation for the benefit of Australia, Sydney and NSW. The airport helps in providing better guidance to passengers by using the latest technologies. The technological innovation helps in attracting customers which alternatively helps in increasing the overall revenue of the airport. Previously the airport was not focusing over technological innovation (Sydney Airport, 2019b). The digital strategy also focuses on the seamless customer and collaborates with partners for delivering more fabulous airport experiences to passengers (Jiang and Liu, 2019). It also engaged in dealing with passengers through face to face communication or through the digital method. The airport was also dealing with safety and security of employees and passengers. Apart from it, then organisation also focuses on managing economic, social as well as an environmental risk. The airport also focuses on developing opportunities for business.
Section 2: Impact of the airport’s structure on management innovation
The technological innovation of the airport gets affected by the organisational structure. Sydney airport has a centralised management system. The centralised management system is referred to as the distribution of corporate hierarchy in which employees are given equal opportunity to participate in the decision-making process. The centralised structure has both a positive and negative impact on the organisation management innovation process. The positive effect helps to control the upper-level manager and decision-making process. The scope of management can be increased as it helps in providing better integration. It also helps in organising knowledge and resources with more efficiency to deal with the lower cost. In accordance with Bedford (2015), the level of authority and responsibilities in management can take place by providing opportunities for technological development. The centralised structure also helps in dealing with the effective distribution of knowledge within the airport. It also helps in reducing the chances of conflict among employees; equal opportunities are provided to them. It also helps in facilitating commitment as well as cooperation in job roles.
The organisational structure helps in managing innovation. The upper-level managers have freedom for increasing control over the decision-making process. The internal process helps in reducing cost through resources. As stated by Stanley and Mactaggart (2017), the centralised structure also helps in dealing with corporation and commitments in job roles that can be an aid in dealing with better resolution of conflicts. Apart from positive aspects, there are negative aspects of a centralised process. In accordance with Cahill, Palcic and Reeves (2017), the centralised structure of Sydney airport is a narrow channel of communication. It also increases the layer in transferring information. The information is passed from the upper level to the lower level. Hence, it impacts on the problem-solving process. The employees working in an organisation have given less change in finding out innovation solution for problematic issues (Tetiana et al. 2018). Centralisation process is limiting employee discretion for seeking out opportunities due to inter-member basis. It also restricts the flow of information in an organisation and reducing the level of motivation in employees.
Section 3: Impact of the airport’s structure on overall business performance
The senior manager Sydney Airport is responsible for the long term success of the airport. Sydney airport has significant competition with other international airports. The airport also deals with the management system and society. Sydney airport is closely linked with its investor that helps in identifying and managing the impacts. The shareholder of the airport also focuses on a wide range of group that aids to deal with supporting the strategic position with directors groups. As stated by Leva, Del Sordo and Mattei (2015), the risk management helps in coping with risk strategies, policies and reporting in better ways. The global risk strategies are dealing with risk strategies, systems as well as reporting that are considered for managing the needs. The risk management strategies can be implemented on management for increasing the capabilities of working among employees (Del Giudice and Della Peruta, 2016).
The Directors focuses on external issues as well as the relationship that is particularly involving civil society, regulatory, NGOs that are considered for managing business performance in better ways. The CEO and CFO are providing annual confirmation in writing that can be financial records of the entity which has been appropriately maintained. The financial statements have been giving to deal with financial position and the performance of the airport. In accordance to Donate et al. (2015), the customer relationship managers help in dealing with customers’ necessities that are needed in presenting a better management system. The business strategies of the organisation are considered by analysing capabilities, experiences as well as a culture, which is the primary purpose of delivering business strategy.
The culture helps in developing the capabilities. Experiences are needed for developing knowledge management. It also helps in dealing with capacity that can convert knowledge to innovations and gaining competitive advantages in better ways. The management system has been reflecting upon 4.7% of international passengers’ growth. It also helps in increasing and continued capital passengers’ growth in an appropriate way. It impacts on 7.5% reflecting full trading for managing delivering AUD8.0 million in EBITDA. The revenue has been increasing by 1.7% with domestic passengers’ growth and reflecting targeted capital investment in road upgrades as well as congestion for reducing initiatives.
Recommendations can help to improve on innovation and performance
The improvement in technology and the desire for innovating, which has run smoothly as well as efficiently, can be considered by making it utilised in better ways. The technology is needed for integrated into the airport’s operations to improving customer experiences and streamline processes. Technology also helps in dealing with airport managing assets for reducing disruption in better ways. It also helps in opening of a data strategy is vital for the airport by fostering knowledge in real-time. Moreover, customer expectancies, as well as partners with airline customer, focus overachieving on-time performance. As stated by Z Koenig, Found and Kumar (2019), the Internet of Things and cloud communication aids is offering changes in airports commerce with monitoring properties. Information technology is a crucial part of providing information to the airline customer. The flight information through its official websites can be provided to its customers. Therefore, it helps in guiding passengers in better way.
The customer was also able to use smartphones as well as familiar with Google map to navigate the terminal. The organisation also focuses on providing the home-like feeling to Chinese passengers. Hence, this helps in to find out their way through the airport. As stated by Rodgers (2017), the air traffic management system in airport deals with improvements and investment in technology that helps in reducing noise. It also helps in improving the arrival and departing of the airport, which eventually needed for presenting it in a better manner. The surface transport also helps in increasing passenger connectivity. The improvement in digital information can help in attracting customers as this is needed for providing customer end services. The online booking system can help customers to buy tickets as well as various discounted coupons are also offered to passengers.
It can be concluded that Sydney Airport is one of the biggest airports in the world. The airport has many investors who are a crucial element of the organisation. It has been observed that the infrastructure of the airport helps in providing the various opportunities that can be considered for innovation and performance management. It has been identified that the centralised management system of organisation help in providing positive responses for making it utilised appropriately. It has been emphasised that the centralised structure of the airport help in increasing the business performance of the airport. The digital innovation, IoT in an organisation, helps in increasing the change as well as the production of Sydney Airport.