Structure of an Organization. Specifically Term Paper

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The major portion of the organization's it infrastructure is outsourced to EDS, a worldwide it outsourcer who also owns Sabre, Inc., which is one of the major ticketing resources major airlines use to issue tickets to passengers. EDS has had to downsize thousands of jobs after U.S. Airways claimed bankruptcy a second time, because EDS is one of the airline's largest unsecured creditors. This is not to say that U.S. Airways does not have an internal it department with its own infrastructure. The internal it department coordinates workings between EDS and U.S. Airways. The company also maintains an internal Help Desk, and maintains their own it security development and monitoring. The it department is based in the Arlington, Virginia headquarters. Within the it infrastructure, there are code sharing agreements with other airlines that allow passengers to use mutual airport clubs, and participate in simplified ticketing and baggage procedures. The agreements are coordinated through software used by the specific airlines, as well as in other areas of operations. U.S. Airways it infrastructure is complicated and large, but it would be even larger if U.S. Airways did not outsource much of the operations to EDS. As such, the infrastructure now is primarily service and help for computers and users in each of U.S. Airways operations centers and airport locations.

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As such, there is not a high level it director or officer listed in the management structure of the organization.

US Airways budgeting cycle is annual, with their fiscal year ending December 31 of each year. In January, 2005; the organization reported a fourth quarter 2004 net loss of $236 million, compared to a $98 million net loss for the fourth quarter 2003. In addition, the fourth quarter 2004 pre-tax loss of $238 million compares to a pre-tax loss of $99 million for the same quarter in 2003.

A chose this organization because the organization seems to be in continual turmoil due to monetary losses and poor management. The airline has had several contract disputes with employees, including pilots, flight attendants, and mechanics, and has reduced pay, benefits, and pensions to a majority of their employees and retirees. It seemed an interesting company to focus on to understand more of the internal workings, and to discover if there seemed to be any internal reasons for the company's lack of success. It has claimed bankruptcy twice within two years, and still seems to be struggling to survive, so it seemed like an organization to study now, before it disappears......

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