Lesson | Organizational Hierarchy

Organizational hierarchy refers to the pecking order in the chain of command within a company. It defines every position along with all the pertaining rules and regulations from top to bottom. This ensures that there is no confusion about the person to whom an employee is going to report, and this is applicable for every job profile and position within the company.

Executive Leadership

At the top of the hierarchy, airlines are led by an executive team responsible for making strategic decisions, setting goals, and overseeing the overall performance of the airline. This team typically includes the Chief Executive Officer (CEO), Chief Operations Officer (COO), Chief Financial Officer (CFO), and other top executives.

Example: In Delta Air Lines, the executive leadership team, headed by CEO Ed Bastian, is responsible for guiding the airline’s strategic direction and ensuring its financial success.

Operational Divisions

Below the executive leadership, the airline is divided into various operational divisions, each headed by a vice president or director. These divisions often include flight operations, maintenance, customer service, and marketing.

Example: Southwest Airlines has operational divisions like Flight Operations, Technical Operations, and Customer Operations, each led by a vice president reporting to the executive leadership.

Functional Departments

Within each operational division, there are functional departments responsible for specific aspects of the airline’s operations. These departments include finance, human resources, legal, and IT, among others.

Example: American Airlines has a Finance department responsible for managing financial resources, budgeting, and financial reporting, ensuring the airline’s fiscal health.