Development of Organizational Structure: A Case Study of the Thai Airways International Public Company Limited

Abstract

This article aims to study the structural development of the Thai Airways International Public Company Limited by using qualitative methodology. This study collects documentary researches which consist of data from various sources, news, academic articles, and annual report to get more diverse and reliable information.

The finding shows that the structural development of the Thai Airways International Public Company Limited since the company has established in 1959-2016, which is divided into 3 phases. In phase 1, between 1959-1990 during the company was establishing and the beginning has a simple organizational structure; therefore the chain of command is not complicated. In phase 2, between 1991-2006 the company was doing full-time business as a public company limited. By this stage, the company was making continuous growth in business profits and was having expanded structures. The hierarchies of command lines were complex and strictly focus on the rules of operation, resulting in the structure having a bureaucracy that was affecting freedom and flexibility in operations. Finally, in phase 3 between 2007-2016 the company faced continuous losses in profits and brought about an urgent recovery process according to the 2015-2017 reforming plan. The changes in the organization structure of the company are consistent with Larry Greiner’s Life-Cycle Model but at the same time, this model does not develop the external environment changes, especially during the current period that the company faced with intense competition; therefore the company need to adjust the structure to be more strengthen and flexible.