Discussion report subject fundamental of management topic learn about the organizational structure of vietnam airlines

Organizational Structure Types CHAPTER II: The Organizational SŠtructure of Vietnam Airlines...s- 55 s55 I.. Overview of the Organizational Structure of Vietnam Airlines .... 2.1 Curre

TRUONG DAI HOC THUONG MAI

DISCUSSION REPORT SUBJECT: FUNDAMENTAL OF MANAGEMENT TOPIC: LEARN ABOUT THE ORGANIZATIONAL STRUCTURE OF

No.| Full name & Student’s ID Duties

1 Nguyễn Quỳnh Anh - Make Content Chapter 2 Section 2.4

23D122004

2 Nguyễn Phương Chi - Create Chapter 2 Content Section 1.2 to 1.4

( Thư ký ) - Create report on Microso or

3 Đoàn Trường Giang - Make Chapter 2 Content Section 1.1

8 Phạm Vũ Thuỳ Linh - Create Chapter 2 Content

23D211064

- Presentation

1 | Nguyễn Quỳnh Anh B

2_ | Nguyễn Phương Chi A

3 Doan Truong Giang B+

5 Vũ Phương Linh B

6_ | Nguyễn Hoàng Dũng Bt

8 Pham Vi Thuy Linh A

Independence - Freedom - Happiness

Minutes of the meeting (Session 1) Time: 9:00 p.m - 10:39 p.m on September 26, 2024 Location: Google Meet

1, Participants:

- Group leader: Ha

- Secretary: Chi

- Participants:

- Nguyen Quynh Anh

- Nguyen Phuong Chi

- Doan Truong Giang

- Nguyen Thanh Thu

- The group discussed and gave directions for the discussion outline

- Assigned tasks for the outline

3, Conclusion

- The group discussed and debated enthusiastically

- Agree on the discussion outline

Hanoi, September 26, 2024 Secretary

Chi

Independence - Freedom - Happiness Minutes of the meeting (Session 2)

- Nguyen Phuong Chi

- Doan Truong Giang

- Nguyen Hoang Dung

- Vu Minh Ha

- Le Thanh Tam

- Pham Vu Thuy Linh

2, Meeting content

- First mock presentation

- Assignment of outline tasks

3, Conclusion

- Agree to edit content and slides

Hanoi, November 01, 2024

Secretary Chi Nguyen Phuong Chi

TABLE OF CONTENT INTRODUCTION

3 Factors Affecting Structural Choice

4 Organizational Structure Types

CHAPTER II: The Organizational SŠtructure of Vietnam Airlines s- 55 s55

I General Introductfion and Organizafional SŠfrUCfUF .oœ- 55555 555555555552

1.1 Comprehensive Overview

1.1.1 Founding and history

1.1.2 Headquarters

1.1.3 Management team

IL Overview of the Organizational Structure of Vietnam Airlines

2.1 Current Status of Organizational Structure

2.1.1 Organizational Model

2.2 Departmental Arrangement

2.3 Organizational Structure Diagram

2.4 Functions of Each Department

CHAPTER II: SOLUTIONS FOR PROMOTIONAL ACTIVITIES TO ENHANCE

3.1.1 Strengths of Organizational Structure

3.1.2 Weaknesses and Challenges

INTRODUCTION Have you ever wondered what makes an airplane take off and land safely, on time, and bring millions of passengers great experiences every year? Do you know how complex an organization and management system is needed to operate a large airline like Vietnam Airlines? To be able to operate such a large company, the company's organizational structure and departments must be assigned reasonably so that they can coordinate well and make the national aviation industry in general, and Vietnam Airlines in particular develop strongly

Administration is a process carried out by one or more people to coordinate the activities of others

to achieve results that one person acting alone cannot achieve Acting as the foundation of

administration are the administrative functions, administrators perform administrative functions to

achieve the goals of the organization The organizational function is one of the basic functions of management A business or a company cannot operate smoothly without a systematic, reasonable organization of the administrator Understanding the role of each component part of the organization, the administrator will know how to build a tight, effective apparatus to achieve the desired results

In order to contribute to clarifying the role and importance of the organizational function, the group has chosen the topic "Learn about the organizational structure of Vietnam Airlines" as the topic of discussion in their management subject Vietnam Airlines is the national airline of Vietnam Throughout its history of formation and development, Vietnam Airlines has become a leading airline not only in the Vietnamese aviation industry but also in the Southeast Asian region Choosing this company will help the discussion have a diverse view of the organizational function

in management

A reasonable organizational structure contributes to promoting the strength of the collective in general and the management team in particular

A reasonable organizational structure also affects the implementation of other management functions such as planning, command, leadership and control

1.3 Characteristics

Centralization: reflects the level of concentration (or dispersion) of the organization's power If the power in the organization is concentrated mainly on an individual (or a department), the organization's centralization is high and vice versa

Complexity: reflects the number of levels and stages in the organizational structure If the organization has many levels and stages with many intertwined relationships, the organizational structure is highly complex and vice versa

Standardization: reflects the level of binding the activities and behaviors of each department and individual, through policies, procedures, rules or regulations, regulations If the level of binding

is high, high standardization will create the strength of the organization

2 Structural Principles of Organization

2.1 Correspondence between Form and Function

Each unit within an organization has a clear and specific purpose aligned with the overall organizational objectives

The organizational structure should effectively support the operations of each unit

2.2 Unity of Command

Each employee should report to only one supervisor

This principle avoids confusion and ensures consistency in directives

This enables the organization to remain agile and competitive

4 Organizational Structure Types

are grouped

Fairly common among

both large and small

employees are grouped with others who have similar tasks

Introduction Strength Weakness

Simple * The starting point of « Fast « Not appropriate as Structure | most companies « flexible organization

° Littl to none se inexpensive to grows

departmentalization, maintain « reliance on one wide span of control s ¢ clear accountability person is risky Highly centralization of

of what other units are doing

1959 and then expand to

health care agencies,

Communications fostered

with more floating

information

Greater responsiveness to customers

Somewhat encouraging creativity due to cross-

Product-based structure

e The functional manager for a specific product reports to the product manager

e Each product line is operated as a semi-autonomous business within the organization Geographic structure

e Encourages the use of geographic advantages to bring managers “closer to the action” (e.g.,

districts, territories, regions, and countries)

« Long lines of communication between organizational units

e Gradually evolving in the context of global competitive pressures

Customer-based structure

e Partially similar to geographic-based structure

e Also focus on customer needs and provide faster,better service

I General Introduction and Organizational Structure

1.1 Comprehensive Overview

1.1.1 Founding and History

Vietnam National Airlines’ history began in January 1956 with the government's establishment of the Civil Aviation Department, which signaled the beginning of the country's civil aviation industry Vietnam Airlines had significant expansion between 1976 and 1980, setting up and effectively running a number of international flights to Asian nations

Vietnam Airlines was formally founded as a major state-owned airline with a focus on air travel in

April 1993 Vietnam Airlines was the main company that was founded on May 27, 1995, when 20

aviation-related firms combined to form Vietnam Airlines Corporation

1.1.2 Headquarters

Vietnam Airlines has hubs at Tan Son Nhat International Airport in Ho Chi Minh City, Noi Bai International Airport in Hanoi, and several additional airports both domestically and abroad in Vietnam The airline's headquarters are located in the Long Bien area of Hanoi Without adding

codeshare services, this airline flies on 117 routes across 19 countries

1.1.3 Management Team

The leadership team at Vietnam Airlines is comprised of a distinguished group of professionals Chaired by Mr Dang Ngoc Hoa, the Board of Directors Overseeing the company’s financial health

is the Audit Committee, led by Ms Duong Thi Việt Tham The executive team is headed by CEO

Mr Lé Héng Ha, who is supported by a team of Deputy CEOs including numerous outstanding experts

to convey to its customers through this that it is always evolving, enhancing the quality of its services, and growing its flight network in order to provide the greatest possible flying experience

1.2 Position In Markets

Vietnam Airlines is the national airline of Vietnam, with a strong brand presence domestically and

in the CLMV region The airline holds a dominant position in the Vietnamese aviation market Domestic Market: Vietnam Airlines operates the largest domestic flight network It also cooperates with other airlines to serve international passengers on domestic routes The domestic market is primarily contested by VNA, JPA, and Vietjet Air, with JPA being a subsidiary of VNA operating as a low-cost carrier JPA focuses on price-competitive routes while closely coordinating with VNA on products and resource sharing

Asia, Europe, and the South Pacific, Vietnam serves as a critical gateway for international air travel and trade As of recent years, Vietnam Airlines has expanded its network significantly, operating over 60 international routes to more than 30 destinations across 20 countries and territories, as well

as an extensive domestic network The airline has focused on increasing connections within Europe (notably the UK, France, Germany), Northeast Asia (Japan, South Korea, China, Taiwan), and

within the CLMV sub-region (Cambodia, Laos, Myanmar, and Vietnam) Vietnam Airlines

maintains a strong market presence in international passenger transport, holding a substantial market share and continuing to expand in response to growing travel demand across Asia and beyond

1.3 Business Fields

Passenger Air Transport: Air transport services for passengers

Air Cargo Transport: Transport of luggage, goods, parcels, and mail

Restaurant and Mobile Catering Services: Production, processing, importing, and exporting of food to serve on aircraft

Management Consulting Activities Investment, capital management, and direct business operations; overseas investment; buying and selling businesses; investing in shares or transferring shares, selling shares

Direct Support Services for Air Transport: General aviation activities (aerial photography, geological surveying, calibrating aviation navigation stations, maintaining high-voltage power

lines, serving the oil industry, afforestation, environmental inspection, search and rescue, medical evacuation, flights for political, economic, social, security, and defense missions)

Other Specialized Aviation Services: Offering commercial services Repair and maintenance of transport equipment: maintenance of aircraft, engines, parts, aviation equipment, and other technical equipment

Production of Measurement, Inspection, Navigation, and Control Equipment: Production of aircraft components, parts, and supplies, aviation technical equipment, and other related aerospace industry products Providing technical services and spare parts for domestic and foreign airlines Other Support Activities Related to Transport: Freight forwarding services and exploitation of technical infrastructure at airports, including passenger terminals, cargo terminals, technical infrastructure, and integrated services in the aviation transport chain

Manufacturing of Aircraft, Spacecraft, and Related Machinery: Import and export of aircraft, engines, parts, aviation equipment (leasing, leasing with the option to buy, and buying and selling) and other products as regulated by the State

Labor Supply and Management: Providing labor (excluding brokerage, recruitment, and labor supply to businesses specializing in labor export and management of workers employed abroad); importing and exporting labor

1.4 Strategic Foundations: Vision, Mission, and Core Values

1.4.1 Vision

¢ Top 10 most preferred airlines in Asia

e To become a Digital Airline

e Strengthen 4-star services and gradually achieve the 5-star airline standard after 2020

1.4.2 Mission

For the community: Deliver service quality that aligns with the general development of society,

ministries, and sectors

For airlines and customers: Provide a variety of high-quality services that meet customer needs For company members: Create a professional, dynamic, and efficient working environment tied to

the responsibilities, authority, and benefits to ensure sustainable benefits for shareholders

1.4.3 Core Values

e Safety first, is the foundation for all activities

e Customer-centric: Vietnam Airlines understands that the organization's growth is tied to customer trust and loyalty

e Employees are the most asset: All compensation policies are based on fairness and deserving benefits to maintain engagement and foster solidarity within the organization

e Continuous innovation: Creativity is the principle of renewal, with Vietnam Airlines continuously innovating across all fields with breakthrough thinking to achieve great success

Il Overview of the Organizational Structure of Vietnam Airline

2.1 Current Status of Organizational Structure

2.1.1 Organizational Model

Vietnam Airlines (VA) applies a hybrid organizational model to meet the complex requirements of the aviation industry, from flight operations, commerce, engineering, to international partner links The hybrid organizational model is suitable for the scale and characteristics of the business activities of the enterprise, ensuring the thorough implementation of the single-leadership regime

in leadership, thereby promoting personal responsibility, motivating everyone to work with a high sense of responsibility and contributing to improving efficiency in operations

2.1.2 Types of Structures

This organizational system integrates many types of structures to optimize operational efficiency, governance, and competitiveness This approach helps the company maintain operational efficiency in domestic and international markets, while adapting to economic fluctuations and increasingly fierce competition

a Functional Structure: VA divides departments according to each specialized function, to enhance efficiency and professionalism Main departments include:

e Finance - Accounting: Cash flow management, cost control and strategic investment

e Human Resources: Recruiting, training and evaluating employee performance

e Marketing and Commerce: Product development, brand marketing and ticket distribution channel management

e Flight Operations: Flight operations, safety control and schedules

e Maintenance & Engineering: Ensuring technical quality for the aircraft fleet