Understanding Organisation Theory and Practice Essay

Understanding Organisation Theory and Practice - Essay Example This article stresses that contingency theory has been widely employed by companies such as those in the airline industry to streamline their operations and also respond to adversities that stem from the companies’ in internal and external environment. Globalisation and evolution of technology has consequently led to the exposure of organisations inclusive of the airline companies to environments that are volatile since the environment has been significantly expanded. The airline industry in comparison to other industries has been exposed to impacts of the business environment such as the economic, political, technological, and socio-cultural factors which has increased due to multi-national exposure. This paper makes a conclusion that Qantas and Virgin airlines have often applied the contingency theory with the aim of not only dealing with the implications of their internal and external environment but also to gain competitive advantage over other companies in the same industry. †¢ Due to the competitive nature of the airline industry in Australia and beyond the borders, the management of Qantas and Virgin should focus on other management approaches that can maximize their bottom line besides the contingency theory. Some of the management approaches that have proved significant in organisations are the system theory and chaos theory. The system theory will enable the management of the airlines to comprehend how the employees are affected by different systems and they also affect the system that surrounds them.