Airport Organization and Reorganization

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Kenville, Kimberly A.; and James F. Smith
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AIRPORT COOPERATIVE RESEARCH PROGRAM
ACRP SYNTHESIS 40
A Synthesis of Airport Practice
Consultants
Kimberly A. Kenville
Kim Kenville Consulting
Grand Forks, North Dakota
and
James F. Smith
Smith-Woolwine Associates
Floyd, Virginia
S ubscriber C ategories
Administration and Management Aviation
Research Sponsored by the Federal Aviation Administration
TRANSPORTATION RESEARCH BOARD

WASHINGTON, D.C.
2013
www.TRB.org
ACRP SYNTHESIS 40
Airports are vital national resources. They serve a key role in transportation of people and goods and in regional, national, and international
commerce. They are where the nations aviation system connects
with other modes of transportation and where federal responsibility
for managing and regulating air traffic operations intersects with the
role of state and local governments that own and operate most airports. Research is necessary to solve common operating problems, to
adapt appropriate new technologies from other industries, and to introduce innovations into the airport industry. The Airport Cooperative
Research Program (ACRP) serves as one of the principle means by
which the airport industry can develop innovative near-term solutions
to meet demands placed on it.
The need for ACRP was identified in TRB Special Report 272:
Airport Research Needs: Cooperative Solutions in 2003, based on a
study sponsored by the Federal Aviation Administration (FAA). The
ACRP carries out applied research on problems that are shared by
airport operating agencies and are not being adequately addressed by
existing federal research programs. It is modeled after the successful National Cooperative Highway Research Program and Transit
Cooperative Research Program. The ACRP undertakes research and
other technical activities in a variety of airport subject areas, including
design, construction, maintenance, operations, safety, security, policy,
planning, human resources, and administration. The ACRP provides
a forum where airport operators can cooperatively address common
operational problems.
The ACRP was authorized in December 2003 as part of the Vision
100-Century of Aviation Reauthorization Act. The primary participants in the ACRP are (1) an independent governing board, the ACRP
Oversight Committee (AOC), appointed by the Secretary of the U.S.
Department of Transportation with representation from airport operating agencies, other stakeholders, and relevant industry organizations
such as the Airports Council InternationalNorth America (ACI-NA),
the American Association of Airport Executives (AAAE), the National
Association of State Aviation Officials (NASAO), and the Air Transport Association (ATA) as vital links to the airport community; (2) the
TRB as program manager and secretariat for the governing board; and
(3) the FAA as program sponsor. In October 2005, the FAA executed a
contract with the National Academies formally initiating the program.
The ACRP benefits from the cooperation and participation of airport professionals, air carriers, shippers, state and local government
officials, equipment and service suppliers, other airport users, and
research organizations. Each of these participants has different interests and responsibilities, and each is an integral part of this cooperative research effort.
Research problem statements for the ACRP are solicited periodically but may be submitted to the TRB by anyone at any time. It is
the responsibility of the AOC to formulate the research program by
identifying the highest priority projects and defining funding levels
and expected products.
Once selected, each ACRP project is assigned to an expert panel,
appointed by the TRB. Panels include experienced practitioners and
research specialists; heavy emphasis is placed on including airport
professionals, the intended users of the research products. The panels prepare project statements (requests for proposals), select contractors, and provide technical guidance and counsel throughout the life of
the project. The process for developing research problem statements
and selecting research agencies has been used by TRB in managing
cooperative research programs since 1962. As in other TRB activities,
ACRP project panels serve voluntarily without compensation.
Primary emphasis is placed on disseminating ACRP results to the
intended end-users of the research: airport operating agencies, service
providers, and suppliers. The ACRP produces a series of research
reports for use by airport operators, local agencies, the FAA, and
other interested parties, and industry associations may arrange for
workshops, training aids, field visits, and other activities to ensure that
results are implemented by airport-industry practitioners
Project A11-03, Topic S01-05

ISSN 1935-9187
ISBN 978-0-309-22386-7
Library of Congress Control Number 2012955688
2013 National Academy of Sciences. All rights reserved.
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NOTICE
The project that is the subject of this report was a part of the Airport Cooperative Research Program conducted by the Transportation Research Board with the approval of the Governing Board of
the National Research Council. Such approval reflects the Governing
Boards judgment that the program concerned is of national importance
and appropriate with respect to both the purposes and resources of the
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The members of the technical committee selected to monitor this
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and, while they have been accepted as appropriate by the technical committee, they are not necessarily those of the Transportation Research
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Each report is reviewed and accepted for publication by the technical
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TOPIC PANEL S01-05

DAVID J. BOENITZ, San Diego County (CA) Regional Airport Authority
ROD BORDEN, Columbus Regional Airport Authority
NICOLE DESLOGES, Greater Toronto Airports Authority
KEVIN C. DOLLIOLE, Unison Consulting, Inc.
CHRISTINE GERENCHER, Transportation Research Board
SUSAN WARNER-DOOLEY, HNTB Corporation, New York, NY
CHUNYAN YU, Embry Riddle Aeronautical University, Daytona Beach, FL
ELLIOT BLACK, Federal Aviation Administration (Liaison)
LIYING GUO, Airports Council InternationalNorth America (Liaison)
SYNTHESIS STUDIES STAFF
STEPHEN R. GODWIN, Director for Studies and Special Programs
JON M. WILLIAMS, Program Director, IDEA and Synthesis Studies
JO ALLEN GAUSE, Senior Program Officer
GAIL R. STABA, Senior Program Officer
DONNA L. VLASAK, Senior Program Officer
TANYA M. ZWAHLEN, Consultant
DON TIPPMAN, Senior Editor
CHERYL KEITH, Senior Program Assistant
DEMISHA WILLIAMS, Senior Program Assistant
DEBBIE IRVIN, Program Associate
COOPERATIVE RESEARCH PROGRAMS STAFF
CHRISTOPHER W. JENKS, Director, Cooperative Research Programs
CRAWFORD F. JENCKS, Deputy Director, Cooperative Research Programs
MICHAEL R. SALAMONE, Senior Program Officer
JOSEPH J. BROWN-SNELL, Program Associate
EILEEN P. DELANEY, Director of Publications
ACRP COMMITTEE FOR PROJECT 11-03
CHAIR
JULIE KENFIELD, Jacobs Engineering, Inc
MEMBERS
RANDALL P. BURDETTE, Virginia Department of Aviation
KEVIN C. DOLLIOLE, Unison Consulting, Inc.
LINDA HOWARD, Bastrop, Texas
ARLYN PURCELL, Port Authority of New York & New Jersey
BURR STEWART, Burrst, Seattle, Washington
FAA LIAISON
PAUL DEVOTI
AIRCRAFT OWNERS AND PILOTS ASSOCIATION
JOHN L. COLLINS
TRB LIAISON
CHRISTINE GERENCHER
Cover figure: Teamwork. Credit: http://www.bing.com/images/search?q=teamwork&

view=detail&id=5A7D03C60F88029942096262455F8F4C7BF07F7B.
FOREWORD
Airport administrators, engineers, and researchers often face problems for which information already exists, either in documented form or as undocumented experience and practice. This information may be fragmented, scattered, and unevaluated. As a consequence,
full knowledge of what has been learned about a problem may not be brought to bear on its
solution. Costly research findings may go unused, valuable experience may be overlooked,
and due consideration may not be given to recommended practices for solving or alleviating the problem.
There is information on nearly every subject of concern to the airport industry. Much
of it derives from research or from the work of practitioners faced with problems in their
day-to-day work. To provide a systematic means for assembling and evaluating such useful
information and to make it available to the entire airport community, the Airport Cooperative Research Program authorized the Transportation Research Board to undertake a
continuing project. This project, ACRP Project 11-03, Synthesis of Information Related
to Airport Practices, searches out and synthesizes useful knowledge from all available
sources and prepares concise, documented reports on specific topics. Reports from this
endeavor constitute an ACRP report series, Synthesis of Airport Practice.
This synthesis series reports on current knowledge and practice, in a compact format,
without the detailed directions usually found in handbooks or design manuals. Each report
in the series provides a compendium of the best knowledge available on those measures
found to be the most successful in resolving specific problems.
PREFACE
This report provides airport managers with effective practices airports use to help manage their organizations to best meet the changing needs of the aviation industry. It examines relevant organizational design in the academic literature, along with current trends
and practices in airport management.
Twenty-two airport managers representing 36 airports answered an extensive questionnaire that elicited information about their unique experiences with organizational change,
and five case studies were chosen for further exploration.
Kimberly A. Kenville, Ph.D., C.M., Kim Kenville Consulting, Grand Forks, North
Dakota, and James F. Smith, Ph.D., P.E., Smith-Woolwine Associates, Floyd, Virginia,
collected and synthesized the information and wrote the report. The members of the topic
panel are acknowledged on the preceding page. This synthesis is an immediately useful document that records the practices that were acceptable within the limitations of the
knowledge available at the time of its preparation. As progress in research and practice
continues, new knowledge will be added to that now at hand.
By Gail R. Staba
Senior Program Officer
Transportation
Research Board
CONTENTS
1 SUMMARY
3
CHAPTER ONE INTRODUCTION

Background, 3
Study Methodology, 3
CHAPTER TWO LITERATURE REVIEW

Theory of Organizational Structure, 5
Possible Indicators for an Organizational Change, 9
Metrics for Assessing Organizational Design, 10
Other Industry Trends in Organizational Design, 10
Organizational Change, 10
External Facilitator/Consultant, 11
Barriers to Organizational Change, 11
12
CHAPTER THREE SURVEY RESULTS

Introduction, 12
Common Themes, 14
15
CHAPTER FOUR CASE EXAMPLES

Metropolitan Nashville Airport AuthorityNashville International Airport (KBNA), 15
Louisville Regional Airport AuthorityLouisville International Standiford Field (KSDF), 16
Salt Lake City International Airport (KSLC), 17
Rapid City Regional Airport (KRAP), 18
Colorado Springs Airport (KCOS), 19
21
CHAPTER FIVE CRITICAL CONSIDERATIONS
23
CHAPTER SIX FLIGHT PLAN FOR ORGANIZATIONAL REDESIGN
25
CHAPTER SEVEN CONCLUSIONS
26 GLOSSARY
27 ACRONYMS
28 REFERENCES
29
APPENDIX A SURVEY QUESTIONNAIRE
31
APPENDIX B AIRPORT RESPONDENTS
32
APPENDIX C AIRPORT ORGANIZATIONAL CHARTS

APPENDIX C, BEGINNING ON PAGE 33 IS WEB-ONLY AND CAN BE FOUND AT WWW.TRB.ORG,
SEARCH ON ACRP SYNTHESIS 40.
Note: Many of the photographs, figures, and tables in this report have been converted from color to grayscale for printing.
The electronic version of the report (posted on the web at www.trb.org) retains the color versions.
ISSUES WITH AIRPORT ORGANIZATION AND

REORGANIZATION
SUMMARY Todays airport managers face unprecedented political, environmental, and economic pressures. In many cases, traditional organizational structures no longer address the complex
nature of airport management. This lack of congruence between policy and practice is triggering widespread reevaluation of organizational planning. To develop an optimal structure, it is useful to examine past and current practices in operational design and explore
sensible, effective approaches to organizational change.
This project provides airport managers with improved tools to help manage their organizations to best meet the changing needs of the aviation industry. It examines relevant
organizational design in the academic literature, along with current trends and practices
in airport management. Twenty-two airport managers representing 36 airports answered
an extensive questionnaire that elicited information about their unique experiences with
organizational change, and five case examples were chosen for further exploration. A discussion and synthesis of the literature with real-world experience, along with a flight plan
detailing successful strategies, aims to support airport leaders as they strive to best align
personnel and thrive in todays rapidly changing environment.
Organizations can determine the best fit by considering the key elements of work specialization, departmentalization, chains of command, span of control, centralization, and
formalization in tandem with observations and assessments of current practice. Examining
the nature of the industry (e.g., formal, mechanistic, regulated), the type of employees (e.g.,
management, workers), along with mission and vision, can help airports find their most
advantageous structure.
Organizational structures range from functional, centralized, and hierarchical to more
free-flowing, decentralized, and collaborative: boxes and straight lines yield to circles and
arrows. Over the past two decades, new approaches have been gaining support, such as teambased, modular, organizational network analysis, and boundaryless organizational design.
This report provides airport operators with a synthesis of methodologies, processes, and
factors to develop, implement, and evaluate organizational structures; a discussion of the
advantages, disadvantages, constraints, risks, and opportunities of traditional and alternative
organizational concepts and frameworks; and selected examples and lessons learned from
five airports that recently implemented substantial changes in their organizational structure.
Several issues were evident throughout the research: a clear vision and strategic plan
was critical in driving any organizational change. Endorsement from the governing entity
was essential; the primary role of the leadership was to involve key employees in determining the type of organizational structure that would best serve the new strategic business
objectives. An overarching theme in each case example interview was that it takes time to
initiate and implement organizational change, so patience needs to prevail, and the small
successes should be celebrated along the way.
2
Although the airport managers experience and insights often matched best practices in
the literature, there is no one size fits all approach. Each approach has advantages and disadvantages, and each airport faces unique local, state, and federal obligations and pressures.
Strong, informed leadership and vision, coupled with a patient and informed approach, can
drive positive, effective change.
CHAPTER ONE
INTRODUCTION
BACKGROUND
Organizational design is a complex and difficult task, yet
it is one of the most important tasks untaken by CEOs
and their senior management teams. Successful design
of an organization requires deeply understanding the
context for which the organization is being designed
the environment in which the firm competes, and the
business strategies and models it will use to compete,
and the capabilities it needs to compete (Beckman 2009).
Over the past decade, most airports have faced many new
challenges, such as irregular operations, increased competition, changing regulatory issues, and increasing economic
pressures. These challenges have provided opportunities
for management to review current business strategies and
adjust organizational structures to best meet their core business strategies.
External pressures have triggered changes in operations;
in some cases, changes in business models and strategies
have led airports to remain self-sustaining organizations
that are flexible during times of change. In other cases,
however, airports are struggling to meet the challenges of
this era of rapid change. To make the best decisions before
embarking on restructuring an airport, it is useful to examine past and current practices in operational design and
observe real-world approaches to organizational change.
Airports may find that they need to update their organizational structure as a result of political, environmental, or
economic triggers. Articulating business goals and developing an effective strategic plan can lead airport operators
to examine and modify their organizational structure. A
well-understood and effective organizational structure can
provide much-needed support for airports seeking to meet
strategic, operational, and business goals while facilitating
successful delivery of core services.
According to Droege (n.d.), changing an organizations structure is a daunting managerial task, and the
immensity of such a project is at least partly why organizational structures change infrequently (para. 4).
It is a daunting but necessary task that requires sound
leadership and high-level collaboration. Many airports
are examining their internal organizational structure to
rebalance workloads and identify possible outsourcing
opportunities to attain greater efficiencies. Some are find-
ing that their original organizational chart needs to be

completelyoverhauled.
This project aims to facilitate and support the change process by providing airport managers with specific, effective
organizational practices to meet their strategic, operational,
and business goals and delivery of core services in a time
of changing needs within the aviation industry. Key points
from current academic literature regarding organizational
structures and design features are explained, and a discussion of a survey completed by 22 airport operators representing 36 airports follows. Five in-depth case examples further
illustrate specific triggers, processes, and challenges learned
during the change process. Finally, a practical flight plan
of critical considerations synthesizes the current literature,
survey data, and case example information as it affects realworld practice, providing busy airport leaders with a helpful
guide to follow as they navigate organizational change.
STUDY METHODOLOGY
A questionnaire (see Appendix A) was designed to elicit

information from airport operators. Airport executives
were asked to identify their type of governance structure,
their current type of organizational structure, the number of
employees in their workforce, which employees or job functions were outsourced, and how they defined and determined
organizational effectiveness and efficiency.
Twenty-two executives representing 36 airports completed surveys (Appendix B); all surveys were completed,
yielding a 100% response rate. The airports ranged in size
from 7 to 1,850 employees and represented each type of governance structure in each category of the National Plan of
Integrated Airport Systems (NPIAS).
After the survey data were analyzed, five airports were
selected for more detailed examination. All five airports had
experienced a recent significant change in organizational structure and were willing to share lessons learned, along with advice
to those initiating change in organizational structure and design.
The five case example airports or airport systems are as follows:
1. Metropolitan Nashville
Airport Authority
medium hub
4
2. Louisville Regional
Airport Authority
small hub/significant cargo
3. Salt Lake City International

Airport (city)
4. Rapid City Regional Airport (city)
5. Colorado Springs Airport (city)
large hub
non hub
small hub
CHAPTER TWO
LITERATURE REVIEW
This literature review summarizes current practices in organizational design. It includes an investigation of organizational structures that have evolved over the past 100 years
of management science. Advantages and disadvantages of
each structure are reviewed, yielding useful approaches for
airport managers facing structural change in their organizations. Barriers to change, the informal relationships that
exist within organizations, and the impacts of change on
organizational culture are also discussed.
Most of the literature surrounding organizational design
is centered on for-profit private organizations concerned
with product sales or geographic markets. As a result, several limitations exist. First, few examples of organizational
or structural change at airports have been published. Most
organizations initiate changes and then keep moving toward
their goals, often without reflecting on or documenting the
process. Further, few or no industries function similarly
to airports, with their unique stakeholder groups and governance structures, so it is difficult to draw correlations
between organizational changes in other industries and airports. The largest deficiency in the literature is a general lack
of assessment metrics to gauge effectiveness.
THEORY OF ORGANIZATIONAL STRUCTURE
Greenberg and Baron (2008) describe an organization as a

meaningful combination of groups and individuals working
together purposefully to meet the goals of the organization,
as opposed to a haphazard collection of people. Organizational structure is defined as the way an organization
arranges people and jobs so that its work can be performed
and its goals can be met (Droege n.d.). According to Robbins and Judge (2009), six key elements that managers need
to address when creating an organizational plan are work
specialization, departmentalization, chain of command,
span of control, centralization/decentralization, and formalization (see Table 1).
Work specialization, or division of labor, refers to a
workers ability to concentrate on a specific task and become
a specialist. Generally, this term is used to describe which
activities in an organization will be subdivided into separate
jobs or broken down into steps by separate individuals (Robbins and Judge 2012). For example, in airports, work special-
ization would include airfield maintenance, snow removal,

and airside and landside operations.
TABLE 1
KEY DESIGN QUESTIONS AND ANSWERS FOR DESIGNING
THE PROPER ORGANIZATIONAL STRUCTURE
The Key Question
The Answer Is
Provided by
1. To what degree are the activities subdivided

into separate jobs?
Work specialization
2. On what basis will jobs be grouped

together?
Departmentalization
3. To whom do individuals and groups report?
Chain of command
4. How many individuals can a manager

efficiently and effectively direct?
Span of control
5. Where does decision-making authority lie?
Centralization/
decentralization
6. To what degree will there be rules and

regulations to direct employees and
managers?
Formalization
(Source: Robbins and Judge 2009, p. 519).
Departmentalization is the grouping of specialized

workers who perform certain similar tasks. Most people
view this type of grouping as functional work groups, where
organizations group workers around certain departments or
functions of the organization, such as accounting, human
resources, and engineering (Robbins and Judge 2012).
The concept of chain of command dates back to ancient
history and was once a basic cornerstone of organizational
design; however, today it appears increasingly irrelevant
(Robbins and Judge 2012). Chain of command refers to an
unbroken line of authority extending from the top to the bottom of the organization. Today, the concept of authority is
understood more as the rights inherent in a managerial position rather than the right to give orders and expect compliance. Currently, discussion of theories is taking a backseat
to examining the real-world practice of chain of command
and authority within the multiple challenges arising from
the growth of information technology.
Span of control refers to how many employees a manager
can oversee efficiently and effectively; this span determines
the number of levels of management that an organization may
need. Most experts agree that the wider the span of control,
6
the less management will be required, and the more efficiency

should be realized in terms of number of employees. On the
other hand, a negative outcome of a wider span of control is that
the manager provides less direct supervision and leadership to
subordinate employees (Robbins and Judge 2012). Discussions
about span of control center on issues regarding the autonomy
of the worker and the nature of the work performed.
Centralization refers to the degree to which decision
making is concentrated at a single point in the organization.
If lower-level employees are allowed to make decisions, then
more decentralized decision making occurs. More companies
are allowing employees to exercise increased decision-making discretion because they are close to the action and have
detailed knowledge of the situation, resulting in quicker, more
effective problem solving (Robbins and Judge 2012).
Formalization refers to the degree of standardization of jobs within an organization. When formalization is
high, employees have a minimal amount of discretion and
decision-making authority, clear lines of accountability and
assessment, explicit job descriptions, and clearly defined
procedures. When formalization is low, employee job behaviors are less programmed, with higher degrees of autonomy and discretion in decision making (Robbins and Judge
2012). Typically, a split is evident in the routineness of a
position, and labor agreements have an impact on the degree
of formalization within a company.
An airport can determine its most appropriate type of
organizational strategy and structure by considering the key
elements of work specialization, departmentalization, chain
of command, span of control, centralization, and formalization in tandem with observations and assessments of current
practice. Examining the nature of the industry (e.g., formal,
mechanistic, regulated) and the type of employees (e.g.,
management, workers), together with adhering to mission
and vision, can help airports discover, describe, implement,
and sustain their optimal organizational structure.
Types of Organizational Structure
This section introduces several types of organizational structure described in current business literature. Different designs
are explained, along with the general advantages and disadvantages of each. As organizations strive to graphically represent the connections needed to carry out their core services,
they are finding that conventional hierarchical structures
often inhibit or confuse autonomy and teamwork both within
and outside of the organization. As a result, boundaries on
organizational charts are becoming less rigid and more fluid.
Organizational structures range from conservative, centralized, and hierarchical to more free-flowing, decentralized, and collaborative: boxes and straight lines yield to
circles and arrows. Each structure on the spectrum, from
functional to division based to matrix, has advantages and

disadvantages that airport managers can weigh when considering new approaches to organization.
Functional organizations follow the most basic design,
grouping employees who all perform the same job function
into departments, such as accounting and finance, human
resources, airport operations, engineering and planning, and
public safety. Within functional organizations, highly skilled
or specialized individuals perform only the tasks assigned to
them and do not cross over into another function (see Figure 1).
FIGURE 1 Functional organizational chart (Source: http://

christianchurchdevelopment.files.wordpress.com/2008/10/
struct.jpg).
Functional structures typically are more hierarchical;

maximize functional performance; and cultivate specialists
in the job ranks. However, they can restrict the organizational
view; create slower response times to changes in the working
environment; and lead to poor accountability between
functional units, as hierarchical chain of command travels
up one silo and down another (Gupta 2009, para. 6).
Functional structures appear most effective for smaller
organizations with few products; smaller operations
neutralize the limited view of an organization. Functional
design is also effective when the industry is relatively
stable and has routine technologies with little probability
of emerging competition (Gupta 2009).
Division-based organizations have teams organized in

a set of divisions, or centered on a particular line of business. Each division corresponds to the product or service
provided by the organization, and typically is self-contained
(Gupta 2009). A divisional structure is less hierarchical and
is designed by regrouping the functions into a structure following the lines of business of the organization (see Figure 2).
Since each unit is self-contained, divisional organizational structures benefit from clear accountability in the unit,
departmental coordination, potential for broader skill development, and resiliency during uncertainty. However, divisional structures have their drawbacks, including resource
duplication among units, possible inhibition of career growth
and specialization, difficulty in integrating different product
lines without discontinuance, and creation of divisional affiliations, which can hamper cross-training and awareness of the
big picture (Gupta 2009). Product or divisional structures
are most effective for large corporations and for those in competitive or uncertain external environments.
Some organizations establish self-directed work

teams or cross-functional teams that span the organizations functional areas. For example, in an airport setting,
a cross-functional team could develop and implement
the capital improvement plan. Many organizations have
embraced work teams, as they improve motivation and
promote effective communication skills by expanding the
scope of employees jobs and their involvement in planning (Droege n.d.).
Over the past two decades, new approaches have been
developed and are gaining support, such as team-based,
modular, organizational network analysis, and boundaryless
organizational design.
FIGURE 2 Sample divisional organizational chart (Source:
http://images.vertex42.com/ExcelTemplates/orgcharts/
divisional-corporate-organizational-structure.gif).
Matrix organizations were developed when previous

structures did not meet some organizations needs. The
matrix structure combines elements of both functional and
divisional structures. Its strength lies in combining functional specialists and much-needed resources required
to meet the entities core competencies. This structure
breaks the unity of command concept, and employees
typically have two bosses, reporting to one functional and
one divisional supervisor, as shown in Figure 3 (Robbins
and Judge 2012).
Team-based organizations normally are structured

around product development and are integrated with project
managers and administration (see Figure 4). The teams are
parallel to one another and do not reflect a hierarchical platform, but do share integration, focusing on specific processes
instead of individual jobs (Greenberg and Baron 2008).
FIGURE 4 Team-based organizational chart (Source:

Minneapolis Parks Department (http://www.minneapolisparks.
org/graphics/about/mprb-organizational-chart.jpg).
FIGURE 3 Sample matrix organizational chart (Source: http://
images.vertex42.com/ExcelTemplates/orgcharts/matrixorganizational-structure.gif).
One advantage of this structure is that it nurtures the

development of highly specialized employees and encourages resource sharing (Droege n.d.). The main disadvantage is a lack of clear reporting structures, accountability,
and resource allocation. Management following the matrix
structure must set clear procedures and policies to avoid
conflicts and power struggles (Robbins and Judge 2012).
A modular or network organizational plan is based on

outsourcing noncore functions of the business (see Figure 5).
A central hub of core functions is surrounded by networks
of outside specialists that can be added and subtracted as
needed, similar to some health care systems in which doctors and specialized labs are contracted with independently
and used as needed (Greenberg and Baron 2008).
The organizational network analysis approach depicts
processes and a set of tools, revealing networks and patterns
8
of relationships between individuals and entities. Research

by Novak et al. (2011, p. 34) asked workers which coworkers
were essential for providing information to do their work or
help them meet their clients needs. The 36 respondents said
that they spoke with 536 unique individuals, indicating that
while boundaries or functions may be in boxes and lines on
an organizational chart, workers generally move across the
structure to fulfill their daily responsibilities (see Figure 6).
of interactions (Novak et al. 2011, p. 36). This chart uses dots

to represent key positions within the organization and lines to
depict interactions between other workers inside and outside
the organization necessary to complete their work.
Boundaryless organizations practice business without
barriers. With no formal chain of command, span of control,
or rigid departments, these organizations empower teams of
employees. Jack Welch, former General Electric chief executive officer (CEO), was a strong proponent of this design, which
was implemented to rid the organizations of the thats not my
job approach that often accompanies formal hierarchical
structures. According to Greenberg and Baron (2008), for this
type of organization to achieve success, there need to be high
levels of trust, high skill levels, and employees who can operate
with little or no managerial guidance. This type of structure
requires breaking down both external and internal barriers.
Organizational Chart
FIGURE 5 Modular or networked organization

(Source: http://www.daaq.net/old/site_design/
index.php?page=site+structures&parent=the
+web+project&printme=true).
The organizational chart is a graphic representation of an organizations internal structure that shows connections between different departments, division, or teams. Organizational charts are
tools that help organizations avoiding confusion and illustrate
unit interrelationships (Greenberg and Baron 2008). Creating an
organizational chart is one of the more challenging tasks that
management faces. Many organizations believe that they can
just copy the chart of a similar company, but a copycat approach
rarely proves fruitful, because each entity has its own nuances.
During the past century, management science literature has
shown that one best way does not exist, and companies have to
develop their own designs tailored to their unique circumstances
and needs. Several new organizational environmental and cultural developments have emerged to help firms compete more
effectively while continuing to fulfill their mission and vision.
Organizational Environmental Considerations
FIGURE 6 Sample of Organizational Network

Analysis (Source: http://www.byeday.net/ona.htm).
For example, many department heads have much more

interaction with administrative support from across the organization. The organizational network analysis system has the
look of a broad pattern of connections that are rarely noted
on a traditional organizational chart, but nonetheless exist in
real-world practice. One key finding is that effective knowledge-based organizations are highly interactive, collaborative,
interdependent, aligned and focused. Knowledge-based work
is less reliant on rules-based work; it requires an ongoing series
Organizational design is defined as the process of coordinating the structural elements of organizations in the most appropriate manner (Greenberg and Baron 2008, p. 598). Several
approaches to organizational design exist, differing in their
degree of formalization and decision making. While structure
is important to design, so too is the environment in which the
company must operate. Environmental factors worth consideration are the organizations strategy, size, technology (i.e.,
how the organization transfers input into outputs), and environmental stability (Robbins and Judge 2012).
According to Robbins and Judge (2009), structure and
strategy should be closely linked, more specificallystructure should follow strategy (p. 534). The structure of an
organization works to help it achieve its overall objectives,
or mission. If management makes significant changes to the
strategy, then the structure should be modified to accommodate and support the change.
Three distinct business strategy approaches are innovative, cost-minimization, and imitator strategies. Innovative
strategies typically follow an organic or loose structure with
low specialization and formalization to let the company
progress; an example is the Internet giant Google. Organizations that follow a cost-minimization strategy typically
have a highly mechanistic structure with tight controls, high
specialization, high formalization, and centralized decisionmaking authority. Most imitator strategies follow a general
mix of organic and mechanistic control mechanisms (Robbins and Judge 2009).
The size of an organization influences its structure. Large
entities, typically employing more than 2,000 people, tend
to become more specialized into departments with more
vertical levels and procedures and processes, much like
large hub airports.
Technology, or the process of how companies transfer
inputs into outputs, also dictates aspects of organizational
structure. According to Robbins and Judge (2009), routine
tasks are associated with taller and more departmentalized
structures, which have centralized authority: these organizations also tend to have rule manuals, job descriptions, and
other formalized documents (p. 537). Airports favor more
departmentalized structures and centralized authority, in
large part owing to the regulatory nature of the business.
An organizations environment is defined as the entities
or forces outside the organization that may affect its performance, including suppliers, customers, competitors, government regulatory agencies, public pressure groups, and the
like (Robbins and Judge 2009, p. 537). An organizations
environment can be evaluated regarding its capacity to support growth, its volatility, and its degree of complexity. Robbins and Judge (2009) observe that the more scarce, dynamic
and complex the environment, the more organic the structure
should be. The more abundant, stable and simple the environment, the more the mechanistic the structure will be (p. 539).
Organizational Culture
The definition of organizational culture refers to a system

of shared meanings held by the members that distinguishes
the organization from other organizations (Becker 1982).
In a nutshell, culture is a set of key characteristics that an
organization values. Seven dimensions capture the essence
of organizational culture: innovation and risk taking, attention to detail, outcome orientation, people orientation, team
orientation, aggressiveness, and stability (Robbins and
Judge 2009, p. 552). An important distinction in the literature is that organizational culture is a descriptive term and is
not to be confused with job satisfaction, which is an evaluative term. Normally, a dominant culture expresses the core
values of an organization, which are held by the majority.
However, subcultures may also develop within organiza-
tions. Subcultures tend to exist along departmental lines to

reflect common problems, situations, or experiences that
employees have faced (Robbins and Judge 2009).
An organizations culture has many functions. It can
enhance the stability of the organizations social system
(Robbins and Judge 2009). It can have a boundary-defining
role, convey a sense of identity, and facilitate commitment
to something larger than individual workers self-interest.
Culture is the social glue that helps hold the organization
together by providing appropriate standards for what employees should say and do, and it serves as a sense-making and
control mechanism that guides and shapes the attitudes and
behavior of employees (Robbins and Judge 2009, p. 555).
A study of 230 organizations from around the world found
that strong and positive aspects of culture that are critical to
success are empowering employees, having a team orientation, having a clear strategic direction and intent, and having
a strong and recognizable vision (Denison et al. 2004).
Informal Organizational Groups
Informal groups are quite different from the traditional or formal groups that exist within an organizational structure. These
are alliances that are not formally structured or organizationally determined; they arise naturally in the work environment
and usually stem from a need for social contact (Robbins and
Judge 2009). Informal groups develop from employees having regular contact through breaks, lunch, and outside interests. They can take on subclassifications and be organized as
command, task, and interest or friendship groups.
Command groups develop because members have a relationship in their direct report status. Task groups form because
people perform similar tasks within the organization, interest groups usually arise from a shared interest in a specific
objective, and friendship groups often form through social
contact. There appears to be no exact pattern explaining why
people join groups, but the literature points to several factors
influencing group participation: security, status, self-esteem,
affiliation, power, and goal achievement (Robbins and Judge
2009). Upper management can benefit from understanding
that within the identified culture and formal structure, other
levels of group affiliation contribute to the organization.
POSSIBLE INDICATORS FOR AN ORGANIZATIONAL

CHANGE
According to the Three Sigma Corporation, the following

items may indicate that an organization is in need of an organizational redesign:
The organizations strategy or strategic direction has
changed;
10
New skills and capabilities are needed to meet current

or expected operational requirements;
Accountability for results is not clearly communicated
and measureable, resulting in subjective and biased
performance appraisals;
Parts of the organization are significantly over- or
understaffed;
Organizational communications are inconsistent, fragmented, and inefficient;
Technology and/or innovation are changing workflow
and production processes;
Significant staffing increases or decreases are
contemplated;
Personnel retention and turnover problems are significant;
Workforce productivity is stagnant or deteriorating; and
Morale is deteriorating (Three Sigma, Inc. 2002).
These factors were used to establish the online survey
questions to initiate the discussion of whether or not an airport manager had undertaken any type of organizational
changes or redesign. This would signal that airports face
types of organizational and business challenges similar to
those that other businesses have faced.
METRICS FOR ASSESSING ORGANIZATIONAL DESIGN
How organizations actually assess the success or failure of

changing their structure is not well documented. Even though
no specific metric can gauge the overall success of an organizational redesign, pre- and post-metrics can be helpful in measuring the effectiveness and efficiency of any proposed change.
Robbins and Judge (2009) define organizational effectiveness as the achievement of an organizations goals, and
organizational efficiency as the ratio of effective output to the
input required to achieve it. A useful analogy is a hospital is
effective when it successfully meets the needs of its clientele,
and it is efficient when it can do so at a low cost (p. 27). Common measures of organizational efficiency include return on
investment, profit per dollar of sales, and output per hour of
labor (Robbins and Judge 2009).
ACRP Report 19A: Resource Guide to Airport Performance
Indicators is a robust guidebook for determining metrics for
assessing each functional area and type of work an airport
offers. The guide identifies 29 Core Airport Performance
Indicators (APIs) and 132 Key Departmental APIs distributed
among 23 functional areas of an airport. This resource can be
accessed at http://www.trb.org/ACRP/Public/ACRP.aspx.
OTHER INDUSTRY TRENDS IN ORGANIZATIONAL DESIGN
Trends in industries other than transportation were studied.

Private for-profit, city services, and health care industries
were examined to find approaches to organization that would

yield useful strategies for the airport industry.
Airports are public service entities that serve as an access
point to the private air transportation industry, thus providing a service to the public. Airports have no control over
the product, price, or place of air transportation. Transit
authorities often control the mode and type of equipment
and employ workers to maintain control over the entire operation. This puts airports squarely in the middle of a private
for-profit sector.
Cities provide services to their citizens with an internal or
external workforce and then capture revenues by means of taxing authority. This sector has little in common with airports.
The health care industry and the airport industry share a
common 24/7 operation and service platform, but no other
meaningful parallels in organizational operations were
found. For example, one for-profit health care provider examined had nearly every function of its organization contractually linked as separate business units to the hospital, while
most health care systems have professional management
and all functions held internally. Airports tend to follow
this model of professional staff, with all of the departmental
functions found within.
ORGANIZATIONAL CHANGE
John P. Kotter, in his seminal work Leading Change

(1996), discusses why organizations change, how the
change process can be successfully navigated, and what
errors can occur. Sometimes change just happens, but
most changes are planned and require goals and strategies to initiate the process. Organizations need to adapt
when competitors introduce new products or services,
government agencies enact new laws, or environmental
changes take place (p. 621). Robbins and Judge (2009, p.
621) assert that if an organization is to survive, it must
respond to changes in its environment.
Just as an organizations success or failure is the result of
actions employees take or fail to take, planned change is concerned with changing the behavior of groups of individuals
working in the organization. Figure 7 shows the evolution of
the process of change and how the flow can best be managed
(Kotter 1996). The eight sequential steps are natural but necessary stages in the change process, and organizations that
fail often do so because of the pressure to produce, which
causes them to rush the process and skip steps.
When Kotter (1996) analyzed successful cases of organizational change, two clear patterns emerged. First, useful change tends to be associated with a multistep process
that creates power and motivation sufficient to overwhelm
11
all sources of inertia. Second, change is never employed

effectively unless it is driven by high-quality leadership,
not just excellent management; this essential distinction
is illustrated repeatedly when leaders speak of significant
change (p. 20).
gathering information from current employees. External

facilitators can also bring specific expertise to the organization, with a larger network of opportunities and experiences
of successes and failures of past organizational structures
and changes.
BARRIERS TO ORGANIZATIONAL CHANGE
Internal and external factors can hinder the success of an

intended change. Administratively, labor relations may force
the changes to be formalized and protracted. Inherent barriers may exist with the organizations governance structure.
Internally, culture can be a liability when the shared values
of the employees are not in sync with the organizations
overall vision (Robbins and Judge 2009).
FIGURE 7 Kotters Eight-Stage Process of Creating Major Change

(Source: http://3.bp.blogspot.com/-dPdlugG7Tnc/Tb92avD3NsI/
AAAAAAAAAFg/MlVXyC9np2E/s1600/kotter4.gif).
A good rule of thumb, according to Kotter (1996), is

that whenever you hear of a major restructuring, reengineering, or strategic redirection in which step one is to
change the culture, you should be concerned that it might
be going down the wrong path (p. 156). Change in an
organization needs to be anchored in the culture. Kotter
observes that change
Comes last, not first: most alterations in norms and
shared values come at the end of the transformation
process;
Depends on results: new approaches usually sink into
a culture only after it is clear that they work and are
superior to old methods;
Requires a lot of talk: without verbal instruction and
support, people are often reluctant to admit the validity
of new practices;
May involve turnover: sometimes the only way to
change a culture is to change key people; and
Makes decisions regarding succession crucial: if promotion processes are not compatible with new practices, the old culture will reassert itself (p. 157).
EXTERNAL FACILITATOR/CONSULTANT
Some studies recommend the use of an external facilitator or

consultant to assist in building a new vision for the organization and embarking on reaching that new vision. Although
the literature had scant information on external facilitators,
most appeared to agree that external support is helpful for
Change must not be used to create an alternate pathway to

avoid conflict in the organization. Any impending conflicts
should be resolved prior to the change process; otherwise, they
may persist after the change has been enacted. Kotter (1996)
also notes eight errors that may affect organizational change:

Allowing too much complacency;

Failing to create a sufficiently powerful coalition;
Underestimating the power of vision;
Undercommunicating the vision by a factor of 10, or
100, or 1000;
Permitting obstacles to block the new vision;
Failing to create short-term wins;
Declaring victory too soon; and
Neglecting to anchor changes firmly in the corporate
culture (p. 16).
These all-too-common errors can have serious consequences. New strategies may fail and employees may not
fully buy into the process; however, with skill and awareness
these errors can be avoided or mitigated. The key to success,
according to Kotter, lies in understanding why organizations resist needed change, what exactly is the multi-state
process that can overcome destructive inertia and, most of
all how the leadership that is required to drive that process in
a socially healthy way means more than just good management (p. 16).
The literature review identified important issues in
organization design, as well as several different organizational templates. Environment and culture play crucial
roles in the structural design of the entity and the introduction of change management. A leader needs to follow a prescribed flight plan in order to effect change in a positive,
healthy, and meaningful way. Barriers or pitfalls will need
to be overcome, and management may need to mitigate
errors along the way. Strong leadership with a clear vision
leads to effective change.
12
CHAPTER THREE
SURVEY RESULTS
INTRODUCTION
An online survey format was chosen to elicit basic information about current airport organizational structures and to
what extent airport managers have faced business challenges
that required them to perform an in-depth review of their
strategic plans and adjust their organizational structures.
Airports are often placed in their own category of industry,
as they both serve the public and act as a business. The survey
allowed the research team to further delve into the managers
decision-making process and develop the case examples and
critical issues for airport organizational change.
Twenty-two surveys were completed, representing 36 airports nationwide. Some entities manage a system of airports,
which was noted in the survey questionnaire. Sixty-three
percent (14) of the respondents represent a single airport,
and the remaining eight are from multisystem airports that
usually manage one large or medium-size hub and one to
two general aviation airports in the surrounding area. Several airports use or purchase administrative services from
their jurisdiction or other service units.
The predominant governance structure listed by 12
respondents was airport/port authority. Seven airports are
owned by the city, two by the county, and one by both the
city and the county.
Respondents were asked to self-report the number of
full-time equivalents (FTEs) under their direct supervision,
excluding any outsourced employees or employees not on
the airport premises. As expected, there was wide disparity
in the answers, as shown in Table 2.
TABLE 2
NUMBER OF EMPLOYEES (FTES) AT AIRPORTS
SURVEYED
Number of FTEs
Number of Airports
785 employees
10
121400 employees
5671,850 employees
Source: Survey results.
Airports that outsource or use/purchase services from

their jurisdictions tend to have fewer FTEs, perhaps owing to
their governance structure. In the lower FTE grouping, many

airports in the non/small hub size have 20 to 30 employees
and use some services from their jurisdictions.
Nine airports reported no use/purchase of any services
from their jurisdictions, while the remaining airports outsource or use/purchase some services. Table 3 shows the
main categories of outsourced employees.
TABLE 3
CATEGORIES AND NUMBER OF AIRPORTS THAT
UTILIZED OUTSOURCED EMPLOYEES
Department Type
Number of
Responses
Accounting/Finance/Legal
11
Law Enforcement
Human Resources
Information Technology
Aircraft Rescue and Firefighting
Other service areas outsourced by one or two airports

were bus, custodial, parking, and shuttle services.
Twenty-one of 22 airport managers reported that they utilize a functional organization structure in which employees
are grouped by job function; that is, finance, administration,
operations, public safety, maintenance, or development.
Eighteen airports responded that they underwent a partial or total change in organizational structure during the
past decade. Only four airports did not report any changes.
Questions about triggers that initiated an organizational
change were developed from the literature that discussed
reasons why leaders change organizational plans. Table 4
presents the answers. Respondents were able to check all
that apply, indicating that several triggers were identified
simultaneously.
Of the 18 respondents who reported an organizational
change in the previous several years, 12 stated that their
airport had conducted some type of organizational analysis
before the change, and seven used an internal review and
staff study. The remaining five sought assistance from an
external source.
13

TABLE 4
TRIGGERS FOR ORGANIZATIONAL REDESIGN (CHECK
ALL THAT APPLY)
Reason
Number of
Respondents
1. Functional reassignment
15
2. Strategic or strategy change
10
3. Accountability
4. Workload issues (under/over)
5. New skills/abilities to meet new operational

requirements
6. Morale
7. Financial restructuring
8. Communication
9. Political climate or key stakeholders
10. Departure of key personnel
Respondents were asked to explain how their airports

defined and measured the term organizational efficiency.
The following list summarizes the survey results.
Self-reported Definitions and Metrics for Organizational
Efficiency (number of respondents in parentheses).
Effectively maximizing operations with the fewest
resources possible (8)
Productivity (5)
Achieving financial goals or maintaining low operating expenses as expressed in cost per enplaned passenger (CPE) (4)
Continuous Improvement Management Systems (1)
Return on investment (1)
Balanced scorecard and strategic priorities dashboard (1)
Adoption of various policies and procedures (1)
Employee empowerment (1)
Ability to make decisions at the speed of business (1)
Benchmarking (1)
Cross-training (1)
General term not measured (1)
The predominant theme among respondents was that they
were doing more with less. In the aerospace industry, the
standard business model for the preceding decade has been to
lay off, cross-train, and outsource many of the main functional
job classifications at most airports, creating increased workloads for the employees of many smaller spoke airports. Airports also frequently referred to rising CPE, a financial ratio
airlines and airports use when comparing costs, as a trigger for
change. Continuous Improvement Management Systems were
also cited as a useful measure for assessing efficiency.
Respondents were asked to indicate how their airports
define organizational effectiveness and how it is measured. The following list provides the survey results.
Self-reported Definitions and Metrics for Organizational

Effectiveness (number of respondents in parentheses)

Organizational efficiency (7)

Employee morale (3)
Customer satisfaction (2)
Tenant satisfaction (2)
Clearly delineated roles and responsibilities (1)
Optimal utilization of staff (1)
Strong accountability (1)
Measurement of results (1)
Speed, clarity, and high level of service (1)
Meeting or exceeding mission requirements (1)
Utilizing a team approach (1)
Communication (1)
Achieving results (1)
Productivity (1)
Communicating with and educating stakeholders (1)
Safety (1)
Financial performance (1)
General term, not measured (1)
The majority of respondents saw little difference between

effectiveness and efficiency, and none made distinctions as
to how their airport defined or measured these two terms.
Many defined optimal use of resources and doing more work
with less staff as operating efficiently. Respondents tend to
measure effectiveness by assessing employee morale. One
respondent summed up the responses well:
Efficiency and effectiveness are quite similar, and while
loosely measured, really come down to the perception
of value; employees can provide greater value to an
organization than just simply providing a function that
could be contracted out.
When respondents were asked how frequently they evaluated their organizational structure, 15 indicated when the
need arises and five indicated each year. When asked
which criteria are normally used in the overall evaluation
of the organizations structure, the responses varied (see the
following list).
Evaluation Criteria of the Airports Organizational
Structure (number of respondents in parentheses)
Executive-level decision based on strategic business
plan (6)
Assessment of whether the structure is providing value
for the airport (3)
Changes in workload owing to regulatory issues (2)
Alignment with functional requirements/resources (2)
Nothing formal (1)
Staff balancing (1)
Skills assessment by the CEO (1)
Observing weaknesses (1)
Zero-based budgeting approach (1)
14
Areas of improvement in customer satisfaction (1)

Benchmarking in region (1)
COMMON THEMES
Each of the airports surveyed supplied its organizational

chart. As the data demonstrate, nearly all airports studied
employ a functional organizational structure where jobs
are separated by department, largely functioning as independent silos with main departments such as operations,
maintenance, finance, administration, and development.
When represented graphically, these functions do not cross
one another and have clear lines of authority. Larger airports
appear to exercise larger spans of control.
A predominant theme arose from the relationship
between the organizational structure and the actual number
of FTEs. Airports that are non/small hub and have municipal
governance structures tend to be able to purchase and use
certain services, such as accounting, legal, aircraft rescue,
firefighting, and law enforcement, thus reducing the number
of FTEs. Outsourcing gives smaller airports more human
resources and budget flexibility, resulting in more concise
organizational charts that focus on operations and maintenance. Conversely, authority-owned airports appear to
own all of the functional areas of their organization and
tend to have less outsourcing and more FTEs. This correla-
tion between authority and number of FTE prevails regardless of airport size.
In their organizational charts, most airports follow the
functional model. However, the majority of written organizational charts are not meeting the existing need for crossover
at certain levels of finance, administration, customer service,
and human resources. For example, the operations department interfaces with accounting regarding purchases, or with
human resources when individuals need to be evaluated,
hired, or fired. This universal element of day-to-day business
practice is almost never represented in the airports organizational charts. A one-dimensional organizational chart no longer suffices for most organizations, so new approaches need
to be considered in order to achieve an optimal fit between
organizational guidelines and actual practice.
In summary, what is most likely occurring in the real world
of airport management are matrix-type structures where
departments interact with other functional areas of an airport
to afford organizational flexibility. The disparity between
conventional organizational charts and actual practice is
driving much-needed change. This phenomenon is explored
in more depth in the following case examples, based on individual qualitative interviews with airport managers. Each airport in the case examples had specific instances where their
process followed guidelines the current literature, and each
airport had nuances that were not found in the literature.
15
CHAPTER FOUR
CASE EXAMPLES
Five airports were chosen for further illustration based on

the surveys. The airports were chosen because of their size,
governance structure, reported structural redesign, and the
lessons each airport learned in the process. Responses were
voluntary and reported by the interviewees. The following
respondents indicated that their organizational structures
were redesigned in part or whole in the past few years and
are highlighted in the five airport case examples:
1. Metropolitan Nashville Airport
Authority
medium hub
2. Louisville Regional Airport

Authority
Airport (city)
4. Rapid City Regional Airport
(city)
5. Colorado Springs Airport (city)
small hub/
significant cargo
large hub
non hub
small hub
These case examples are not to be viewed as absolute;

they provide further exploration of the specific change indicated in their organizations.
METROPOLITAN NASHVILLE AIRPORT AUTHORITY

NASHVILLE INTERNATIONAL AIRPORT (KBNA)
2010 NPIAS categorization

Governance structure
Number of airports
Full-time equivalents
Outsourced job functions
Union
Changes in organizational
structure
Organizational analysis
Consultant
Time frame for change
Metric for assessment
Contact
Medium hub
Airport authority
2
271
None
No
Yes, partial, certain
departments or divisions
As needed
No, internal analysis
6 to 9 months for single
change, longer if multiple
None used
Amy Armstrong, Chief
People Officer
The Metropolitan Nashville Airport Authority uses a

continuous improvement management system in its dayto-day operations and long-term strategic plans. The leadership team at the airport regularly deploys rapid action
teams (RATs) to develop appropriate strategies in response
to problems. The RATs involve management from all ranks
and divisions to create a continuous improvement teambased culture at the airport; this team-based approach is
used to invest in the culture and create change when needed.
Nashville crosses over traditional boxes on the organizational chart to reflect this culture. Nashville changed its
organizational structure throughout the past several years
when it was appropriate and needed.
Triggers That Guided the Organizational Redesign
Succession planning, impending CEO retirement

Development of a wider span of control for the leadership team
Leadership developmentsenior management found
that they could gain greater depth and scope of the
operations by swapping positions.
Benefits of the Organizational Redesign
Established new processes and procedures

Developed RATs through the continuous improvement
methodology
Established specific person on staff to guide and oversee the process
Established a team-based culture of continuous
improvement that
Identifies the issue;
Develops a functional team of leaders and nonleaders; develops new thoughts and processes;
Embeds the employees in the process;
Further develops culture;
Develops leaders among the employees; and
Gives employees ownership of the process.
Drawbacks of the Organizational Redesign
There was too much dependence on particular personnel to guide the process; the skills to manage the
change could have been borne by more than one person
in the organization.
16
A perception arose that using continuous improvement system tools slowed down both improvement and
learning cycles.
At times, there were unrealistic expectations for
change.
Lessons Learned and Sage Advice to Airport Executives
Buy-in is needed from management and the workforcethis complex process cannot be mandated.
This process can use up a lot of time and person hours,
so management must support the culture of continuous
improvement.
Existing culture could be assessed before implementation to build consensus with employees.
As appropriate, both leadership and nonleadership personnel would be included in RATs.
Standardized Continuous Improvement Management
System deployment (training, etc.) may not work, so a
flexible approach may be warranted.
Outside consultants can be helpful, as employees often
open up and discuss important issues in their presence.
It is important that managers strive to achieve small
successes first to improve morale and buy-in.
Organizational charts are to be changed as needed and
appropriate.
Management needs to be mindful that change is a process, and it takes time.
Nashville International Airports process for affecting
change through its Continuous Improvement Management
System has allowed it to set up a process to effectively manage and mitigate issues within the organization. Its process
is to identify the issue, assemble a RAT with differing layers of employees to facilitate ownership of the change process, find workable solutions, and monitor the processes that
accompany the change. It has used outside consultants to
facilitate when needed. The process needs to be approved
by top management, and participants need to be patient. The
airport emphasized the need to strive for small successes
before total change is celebrated. Table 5 summaries the
reorganization process at KBNA.
TABLE 5
REORGANIZATION AT METROPOLITAN NASHVILLE
AIRPORT AUTHORITYNASHVILLE INTERNATIONAL
AIRPORT (KBNA)
Trigger(s)
Succession Planning
Leadership
Development
Process Used
Time Frame
Metric
Rapid action
teams
6 to 9 months
None used
Source: Survey and interview results.
LOUISVILLE REGIONAL AIRPORT AUTHORITY

LOUISVILLE INTERNATIONAL STANDIFORD FIELD
(KSDF)
2010 NPIAS categorization Small hub

Number of airports
Union
Changes in organizational
structure
Consultant
Contact
Airport authority
2
184
None
No
Yes, total organization
Yearly
3 years (total organizational
redesign) (20032006)
Reduced labor costs because
of shift to a public safety
department and reduction of
overall workforce
Charles Skip Miller,
A.A.E., Executive Director
The Louisville Airport Authority board asked the newly

hired executive director to examine issues pertaining to
the airports organizational structure, including a large
number of pending retirements and long-term succession
planning. The existing structure appeared to lack divisional continuity and identification of dysfunction in the
reporting structure, and the board wanted to streamline the
airports cost structure and optimize personnel utilization.
The total transition reduced the workforce from 209 to 184
in 3 years time.
Board questions about organizational structure

Need for optimization of personnel (reduction in FTEs)
Succession planning
Impending retirements
Divisional continuity
Staff turnover resulted in the remaining staff becoming more skilled and resilient.
Some previous positions went unfilled.
A cost/benefit return was realized by reducing FTEs.
Airport rescue and firefighting/law enforcement
(ARFF/LE) was reorganized to a public safety divi-
17
sion with a higher level of training and job satisfaction,

cross-utilization, and upward mobility.
The organization now hires more slowly and carefully.
A more beneficial culture was established during the
change process.
TABLE 6
REORGANIZATION AT LOUISVILLE REGIONAL AIRPORT
AUTHORITYLOUISVILLE STANDIFORD FIELD (KSDF)
Trigger(s)
Process Used
Time Frame
Reduction
of FTEs
Employee change can be emotional.

Difficult periods of adjustment occurred during the
process because the divisions were not fully functioning at the start, so they had to jump on the learning
curve.
Completing the change process took longer than anticipated, but the time spent was a worthwhile investment
in the future.
Divisional
Continuity
Metric
Reduction of
workforce = 25
employees
Team of executive,
human resources,
and two board
members
3 yearstotal
organization
redesign
(20032006)
Succession
Planning
Creation of Public Safety Department, reduction

of workforce
New human
resources processes developed
SALT LAKE CITY INTERNATIONAL AIRPORT (KSLC)

Managers need to cultivate patience, persistence, and

perseverance.
Conflict is a natural consequence of change, and
should not be feared or avoided; commitment to the
plan and keeping an eye on the end result will help
managers weather the inevitable conflicts that arise:
Even when we stumble, we are still moving forward.
Board buy-in is essential to the process because organizational change takes time.
To effectively change an organizations culture,
Develop a committee composed of a director,
representative(s) from human resources, and two
authority board members;
Maintain a practical, realistic vision;
Focus on long-term goals and plans;
Be aware of financial implications, such as costs and
future savings; and
Establish comprehensive employee training for succession and reduction of silos.
The Louisville Airport Authority went through a total
organizational redesign with support from the board. The
executive director was tasked to examine divisional continuity between the departments. An internal group consisting of the director, human resource manager, and two
board members was assembled to guide the change. The
director used cost/benefit return and personnel utilization
as a metric to hire and retain employees more slowly and
carefully and build resilience in the workforce. The main
challenge facing the group was maintaining core services
during the transition. Having a clear vision in mind coupled with long-term goals and patience with the process
were driving factors for success. It is imperative to stay the
course and not force the change too quickly. Table 6 summaries the reorganization process at KSDF.
2010 NPIAS categorization Large hub

Number of airports
City-owned
3
575
Human resources, ARFF,
general counsel, custodial,
busing
Union
Specialist level and below
Changes in organizational Yes, partial departments/
structure
divisions
As needed
Consultant
No, internal
1 year for single change (2010)
Labor cost savings
Contact
Randall D. Berg, A.A.E.,
Director of Operations
In 2010, Salt Lake City International Airport (SLC)
was embarking on a $1.8 billion expansion, and the airport
divisions were asked to find efficiencies in personnel and
resources to offset the cost of the reconstruction. The airport purposefully implemented a flat hierarchical organizational structure divided into divisions. Each of the eight
division directors has equal access to the airports executive director, which enhances the organizations flexibility
and agility. As part of the efficiency effort, 50 shuttle bus
drivers were outsourced from the operations department to
a contracted service provider. The airport maintained communication with and provided equity and job protection for
the employees involved in the transition, and ensured job
security with increased wages to offset a slightly smaller
benefit package. The transition lasted about 1 year.
18
$1.8 billion construction project

Need for improved personnel and resource efficiency
Matched employee skill sets with jobs, created job

enlargement and specialization activities
Reduced the supervision ratio (number of employees
under each supervisor)
Brought job titles up to date
Reclassified employees as the result of human
resources evaluations; made operations/ARFF/police
department more cohesive
The airfield/terminal division was divided up and terminal activities were moved to landside, which resulted
in some natural attrition and regrouping of employees
(6 to 9 months transition).
Some employees had difficulty with the change and
with being transferred to a different division.
Make sure the hard decisions made are right for the
organization.
Leave personalities and emotions out of the process.
Be fair, honest, and equitable.
The directors involvement should be personal and
candid.
Change in structure needs to happen internally; do
not delegate a redesign.
Always look for the right way to do the job, even if it
makes the job more difficult.
TABLE 7
SALT LAKE CITY INTERNATIONAL AIRPORT (KSLC)
Trigger
Personnel and
Resource reduction/efficiencies
Process Used
Operations
director
Time Frame
Metric
Reduction of force
in outsourcing
bussing function
1 year (2010)
Natural attrition in
airside/landside/
terminal operations
changes
Operational changes at the Salt Lake City International

Airport were largely complete when the remainder of the
organization was asked to find certain efficiencies. There had
been some regrouping of employees within operations as well
as moving the busing activities to an outside service contractor. As with all change, some employee issues surfaced; it is
important to be fair and equitable and work with employee

groups personally. Airports undergoing organizational
change are urged to keep the organizations hierarchy lean,
to work with conflict as it happens, and to make decisions
which are right for the organization. Table 7 summaries the
reorganization at KSLC.
RAPID CITY REGIONAL AIRPORT (KRAP)
2010 NPIAS categorization Non hub

Number of airports
City-owned
1
23
Law enforcement, information technology, human
resources, ARFF (seven
full-time), legal
Union
Yesmaintenance and
ARFF
Changes in organizational Yes, total organization
structure
Yearly
Consultant
4 years, total change
(20072011)
Workload smoothing, reduction of overtime
Contact
Cameron Humphries,
A.A.E., Executive Directors
During a review of the human resource allocation at the
Rapid City Regional Airport, it became apparent that in
some cases individual job responsibilities and decision-making authority were too broad and in other cases too narrow,
creating poor distribution of workload, required training,
and skill sets. Further investigation exposed problems with
the organizational structure itself: it was misaligned with
its stated core competencies of safety and security, facility
maintenance and repair, and administration.
Under the existing structure, safety and security responsibilities were broadly distributed among the staff, but there
was no central point of responsibility; the administration
functions did not effectively support the needs of the airport
and requirements of federal and state grant programs. The
more technical aspects of maintenance and repair were outsourced to such an extent that there was little resident knowledge: what knowledge there was resided only in employees
memories. In short, the airports organizational structure did
not focus employee responsibilities, training, supervision,
and advancement on its core functions.
19
Armed with this insight, the executive director began

a process to better align the organizational structure
with the airports core competencies. It was determined
that the redesigned structure would (1) create divisions
within the airport that aligned with its core competencies, (2) delegate decision-making authority and oversight
responsibility for each division, (3) appropriately redistribute personnel, workload, and responsibilities throughout the divisions, and (4) build job descriptions, training
programs, job management tools, record-keeping, and
evaluation programs that support employee acquisition,
training, retention, and advancement. Once the template
for the new organizational structure was established,
implementation began. The entire transition took place
over a 4-year period.
Poor distribution of workload, required training, and

skill sets
Organizational structure not aligned with core
competencies
No central point of responsibility for most important
functions of safety and security
Little resident knowledge of airport systems
Limited training programs
This 4-year change was led with several elements in

mind: to concentrate on the airports core competencies and
services delivered, to increase employee training and opportunity, and to develop a set of work processes for the departmental employees. An overarching theme was the need to
keep the process flexible, so that steps do not have to be
repeated with each element of change. Broad support at the
upper levels for the vision and goals of the planned change
enhanced the success of the project. Table 8 summarizes the
reorganization at KRAP.
TABLE 8
REORGANIZATION AT RAPID CITY REGIONAL AIRPORT
(KRAP)
Trigger(s)
Process Used
Misaligned
with core
services
External team evaluated job functions in

maintenance
department
Workload
distribution
Better training
in departments
Time Frame
Director, senior staff

and maintenance
chiefs, and redivided
workload for more
efficiency in workload and hours
Metric
Reduction of
overtime
4 years, total
redesign
(20072011)
Workload
smoothing
Better training and
advancement
opportunities

COLORADO SPRINGS AIRPORT (KCOS)
Airport divisions now focus on a single core competency, vastly improving distribution of workload,
responsibilities, management, and oversight of the
airport.
A more specialized workforce now has stronger skills
sets, is better trained, and has more experience to perform assigned duties.
Employee acquisition, training, and advancement are
improved.
There was employee resistance to removing empires

and moving cheese.
Fewer generalists exist, and fewer individual employees have a broad knowledge of the airport.
More cross-divisional communications are necessary
to coordinate activities.
2010 NPIAS categorization
Small hub
Number of airports
Union
Changes in organization
structure
Consultant
City-owned
1
121
ARFF
No
Yes, total organization
Contact
Believe in the overall vision, stick with it, and make it

expandable to avoid repeating the entire process.
Substantive change is a long-term project, so set priorities and create actionable steps.
Work hard to gain broad support for the plan.
Recognize obstacles and prepare for them in advance.
Yearly
Nointernal analysis
3 years (20032006)
Not quantifiable, what
worked for the organization
Mark Earle, A.A.E.,
Aviation Director
Beginning in 2003, an organizational structure change

was developed by the aviation director and supported by
city government. It was found that the traditional organizational structure of the airport was not conducive to fostering
cooperative relationships with the airports business partners
and stakeholders, and would not meet the future needs of the
20
airports fast-growing capital development program [Airport Improvement Program (AIP) and non-AIP]. The goal of
the reorganization effort was to create a structure that could
simultaneously improve the airports commercial and general
aviation operations, develop a 1,000-acre business park, and
effectively serve as landlord for a 2,000-acre Air Force base
with 12,000 based military and civilian contract personnel.
Strained relations between airport management and

the airports primary business partners and stakeholders led to a push by city leadership to change the
culture of the organization. New management was
put into place, leading to a comprehensive review and
redesign of the organization.
Specific factors included the need to improve relationships with stakeholders and business partners in the
commercial and general aviation sectors, a push to reenergize a flagging business park development effort, and
a desire to leverage the relationship between the airport
and its military tenant to the best advantage for the community, the airport, and the Department of Defense.
Management recognized that the airports future goals
would involve a significant, ongoing planning and
development effort that would require the creation of a
new division within the organization.
A need existed to flatten the organization to improve
efficiency and communications between leadership
and the workforce.
Management recognized and accepted that the reorganization effort would involve sensitive conversations
with the city regarding organizational ties between the
airport and general city government agencies responsible for finance, human resources, information technology, fleet, and other centralized services.
Political side supportive of change and efforts to move

the airport to the next business level
Flattened hierarchy
Better internal alignment of the work units
Increased efficiency, workflow, and communication in
internal and external relationships
The fact that the airport now has its own fleet and information technology divisions and administers more of
its own human resources and financial management
Planning process simplified, allowing for greater operational flexibility and a more focused business development effort
Negative aspects occurred only during the change process, and were not the final result. While the change
process was well received internally, some divisions
within the general city government were at first resistant to the evolving relationship.
Lessons Learned or Sage Advice to Airport Executives/
Consultants
Have a clear picture of the direction of the organization

and how the structural change will lead there. Keep the
final goals in mind throughout the process.
Create an overall plan, but be flexible, as better
approaches can evolve during the process.
Phase the plan to ease the impact on those who are
going through the changes.
Ensure that political support is lined up before initiating change.
Keep in mind that short-term criticism and individual
resistance are inevitable reactions to change.
As a result of the restructuring efforts, three assistant
manager positions were created for the Operations/Maintenance, Planning/Development and Finance/Administration
divisions. Under each of these divisions lie the functions for
each unit. This internally driven change took about 3 years
and was welcomed by the existing staff; it has been identified as enhancing the culture at the airport. Table 9 summaries the reorganization at KCOS.
TABLE 9
REORGANIZATION AT COLORADO SPRINGS AIRPORT
(KCOS)
Trigger(s)
Improved relations
with major stakeholders and business
community
Flatten organizational structure
Process Used
Time Frame
Metric
Airport
director with
political
buy-in
3 years
(20032006)
Identification of
goals, new alignment of personnel to meet strategic goals
21
CHAPTER FIVE
CRITICAL CONSIDERATIONS
The guiding principle from the synthesis panel is that a

well-understood and effective organizational structure can
greatly assist an airport in meeting strategic, operations and
business goals and facilitate delivery of core services.
In the development of this section, information was
gathered from the surveys, and subsequently five airports
were chosen for more in-depth review and presented as
case example illustrations. Within these illustrations, critical information regarding organizational redesign emerged.
Because each airport has individual traits, each airport will
have a unique set of circumstances and issues to address.
Examining academic theory together with real-world experience can help airport managers ask and answer the best
questions along the path of an organizational change.
Although difficult to quantify, each airport indicated

positive shifts in the culture. As described by Denison et
al. (2004), positive aspects of culture critical to success are
empowering employees, having a team orientation, focusing
on a clear strategic intent, and maintaining a strong and recognizable vision. Each case example airport and many of the
17 other survey respondents reported that they adhered to a
strong vision, and created teams of employees to direct and
communicate impending changes to the organization. Most
of the airports indicated a strong commitment from their
political or board entities as well. The case example airports
expressed a need for building teams to initiate, develop,
communicate, and assist with the change. They also mentioned a need to maintain a sustained vision, and to celebrate
the small successes along the way.
Airports tend to operate in highly regulated environments

within overarching governance structures, and are tied to
a sometimes volatile air transportation industry and global
economy. The majority of the airports surveyed use a functional, hierarchical structure of organizational design, which
increases functional performance and cultivates specialists among departments. Within each airport environment,
meaning both the location and the industry, as noted by Robbins and Judge in 2009, structure and strategy should be
closely linkedstructure should follow strategy (p. 534).
Another area of congruency between the literature and

practice was key indicators for an organizational redesign
as found in The Three Sigma, Inc. (2002). As indicated in
Table 4, all of the airports surveyed reported similar factors that triggered structural change, and echoed the earlier
discussion that structure must follow strategy. The top triggers for reassessing organizational plans were functional
reassignment, strategic or strategy change, accountability,
workload issues, and new skills and abilities needed to meet
operational requirements.
Each of the case examples yielded practices found in the

literature. They highlighted the need for a vision for change
closely aligned with a change in the airports business strategy. Other factors that parallel the literature are the necessity of identifying the size of the organization (large hub
versus general aviation airport), of improving the airports
access to technology, and of ensuring environmental stability before embarking on organizational change. Several
of the case example airports indicated a need expressed in
the literature for operating efficiencies such as combining
departments and removing silos to redistribute the workload within the airport.
Kotters work on leading change is a useful guide, as it

lists common errors made during a planned change. Each
of the airport case examples reaffirmed Kotters assessment
and signaled the items on his list as areas to avoid.
Another area of design that appeared to be a constant

among all of the airports was the organizations culture. As
Kotter (1996) explains, changes in the culture do not precede
but rather follow changes in organization; as new processes
and procedures emerge, the culture of the organization shifts
with the new structure.
Further research is needed to determine appropriate and

mutually agreed-upon performance metrics. Many organizations will take a snapshot of performance, but that is rarely
compared to a pre/postchange event. The case example airports looked at employee costs, or the reduction of employee
costs in the form of reduced overtime. They reported that
the culture was changed within the organization and is now
better, which indicates positive movement, but no objective
measurement of improvement exists. It is difficult to assert
that a change was effective without some type of measurement system. As mentioned in the literature review, airport
managers can benefit from utilizing ACRPs Guidebook on
Airport Performance Indicators more intentionally during
the change process.
22
Patience and persistence are essential during reorganization. Issues that trigger the need for change may be
temporarily exacerbated by employee and organizational
uncertainty, and the process may be highly emotional for
many employees. However, managers and employees cannot
allow fear of conflict to derail their efforts. A primary role of

airport leadership is to provide a strong, pertinent strategic
vision coupled with a high degree of empowerment and clear
communication about the airports future to help everyone
cope with change.
23
CHAPTER SIX
FLIGHT PLAN FOR ORGANIZATIONAL REDESIGN
The following flight plan evolved from reviewing the current literature in tandem with the survey and case example
interviews regarding organizational structure, design, culture, and change management. This checklist of potentially
helpful steps was developed to help airport executives, their
governing boards, and personnel involved in deploying
planned changes in strategy to improve the success of the
organization.
Flight Plans for Organizational Review/Redesign
1. Review the airports vision, mission, and business

strategy (strategic objectives) and determine the core
competencies.
2. Define what is triggering a need to change.
3. Determine what needs to be changed, or validate the
existing structure.
4. Gain support/endorsement for undertaking the process from the governing entity.
5. Develop a strategic vision/intent for the change with
a realistic time frame.
a. Case examples illustrate that minor changes take
about 1 year and major changes take about 3 to 5
years.
b. Conduct informal consultation with peer airport
manager to assess intended change and time frame
across peer group experiences.
6. Choose a metric for assessment pre/postchange.
a. The current organizational culture should be
described to facilitate postchange assessment.
b. ACRP Report 19A provides examples of how to
apply different types of APIs.
7. Assemble a team for the redesign.
a. Consider hiring an external facilitator/or
organizational consultant.
i. Outside consultants can provide
1. A fresh perspective,
2. A realistic, objective assessment, and
3. Robust experience.
b. Consider key staff from different levels of the

organization.
i. Encourage organization-wide buy-in.
1. Expand awareness of the informal organizational structure.
a. Two case examples indicate that employee
teams can be used effectively in the
change process.
b. Surveys indicate a wide use of yearly
internal organizational analysis.
c. Determine if new processes and
procedures need to be developed.
c. Communicate and educate key staff who are not
serving on the redesign team regarding
i. Communication processes
ii. Informal organizational structure
iii. Time frame for change
iv. Expected outcomes
v. Organizational culture
8. Review with the design team the different theoretical
organizational structures such as
a. Functional
b. Line of business
c. Matrix
d. Team based
e. Network analysis
9. Determine which organizational structure would best
suit the entity and identify changes (#2) and buckets of work to be developed and divided among the
employee groups.
a. Review literature.
b. Review critical considerations learned from
surveys and case examples.
c. Review barriers to implementation.
i. Administrative
ii. Organizational
1. Formal
2. Informal
10. Implement the change.
a. Stay focused on mission and vision.
b. Celebrate small successes.
24
11. Develop or redesign processes/procedures to facilitate organizational changes.
13. Assess culture and allow for a feedback loop from

employees.
12. Continue training and education for staff.
14. Revisit the triggering variable and evaluation of the

chosen metric to assess change.
25
CHAPTER SEVEN
CONCLUSIONS
This report provides airport operators with a synthesis of

Methodologies, processes, and factors to evaluate,
develop, and implement organizational structures,
including guidelines for evaluating the effectiveness of
an existing or changed organization;
Advantages, disadvantages, constraints, risks, and
opportunities of alternative organizational concepts
and frameworks (e.g., functional, customer-centric,
facility-based, product-based); and
Selected examples and lessons learned illustrating how
methodologies and frameworks have been applied in
the airport industry.
Embarking on a singular or organizational-wide change
in strategy and structure is a complex process. The constraints of organizational design can be found in areas of
governance structure, size of the organization, and labor
agreements; these areas need individualized attention by
the management team. The literature and five case example
illustrations all signal that strategy drives change.
The primary triggers for airports to change their structure
are functional reassignment, strategic change, accountability,
workload issues, and the need to upgrade employee skills and
abilities to meet operational requirements. Another factor
triggering change that emerged from the case examples is the
pressure to reduce or combine positions to gain better workload distribution, or simply to reduce the total workforce.
Although airports may choose from a number of organizational structure types, most airports employ the functional structure of dividing personnel between departments
according to the type of work performed, allowing specialization. Currently, most airports do not depict the prevalent
practice of cross-utilization of administrative components
on their organizational charts.
Twenty-two airport executives responded to the electronic survey, from which five airports were chosen for
further review and illustration. Each of the five airports
had undergone singular or entire organizational changes in
the past few years. The interviewees made several salient
points. First and foremost, it is fundamental to establish a
clear vision. Change takes time, so patience and persistence
are essential; celebrating small successes along the way
improves morale and increases momentum. Second, most of

the airports found it beneficial to build a team within upper
management and board members to guide changes and
develop the new structure, as buy-in from the board is central to success, and management needs to be deeply involved
in the entire process. One case example airport and four survey airports utilized an outside consultant to facilitate discussion among employee groups.
The data elicited from the questionnaires and the case
examples provide a snapshot in time and do not represent the
entire industry. The case examples illustrate specific challenges that five airports faced as they navigated their own
unique process of organizational change. Each case example
illustrates that strong, informed leadership and vision drive
positive, effective change.
One literature and data gap is the lack of assessment
metrics. It was first assumed that changes in an organization would be data driven; however, some of the changes
appear to be difficult to measure, or have no appropriate and
mutually accepted measurement. Airports often reported
that no quantitative measurement was conducted pre- or
postchange, and provided a qualitative assessment that the
change was better for the organization. Self-reported assessments such as these lack the validity of an established metric.
ACRP has produced a guidebook on Airport Performance
Indicators that could be more widely utilized in the industry
to gain a better understanding of how to measure and assess
an airports performance.
Clearly, there is no one size fits all approach. Managers cannot simply copy another airports organizational
chart and make it their own. Rather, they need to create a
new strategy wherein they optimally align the airports core
services and competencies and place employees where they
will be best able to make a meaningful contribution to the
organization.
Great pressures call for great measures. Airport managers can be proactive in the face of rapid change. A focused
review of current practices, together with a thoughtful
analysis of internal and external organizational issues, can
help airport managers create organizations that will rise to
meet the known challenges of today and be prepared for the
unknown challenges of tomorrow.
26
GLOSSARY
Continuous Improvement Management System: A business management strategy originally developed by
Motorola in 1986. It seeks to improve the quality of process outputs by identifying and removing the causes of
defects (errors) and minimizing variability in manufacturing and business processes. It uses a set of quality
management methods, including statistical methods, and
creates a special infrastructure of people within the
organization.
Cost per passenger enplaned: The airports costs
(expenses) divided by the total number of passengers
boarded (enplaned) to determine the cost per passenger
enplaned.
Organizational chart: A diagram showing the formal
structure of an organization, indicating lines of communication and reporting.
Organizational design: The process of coordinating the

structural elements of an organization in the most appropriate manner.
Organizational network analysis: A method for studying
communication and socio-technical networks within a
formal organization. A quantitative technique for creating statistical and graphical models of the people, tasks,
groups, knowledge, and resources of organizational systems. Based on social network theory, and, more specifically, on dynamic network analysis.
Organizational structure: The formal configuration
between individuals and groups with respect to the allocation of tasks, responsibilities, and authorities within
organizations.
Return on investment: Metric used to measure per-period
rates of return on dollars invested in an economic entity.
27
ACRONYMS
AAAE American Association of Airport Executives
AIP
Airport Improvement Program
API
Airport Performance Indicator
ARFF
Aircraft rescue and firefighting
CEO
Chief executive officer
CPE
Cost per passenger enplaned
FTE
Full-time equivalent
GA
General aviation
LE
Law enforcement
NPIAS National Plan of Integrated Airport Systems

RAT
Rapid action team
28
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MlVXyC9np2E/s1600/kotter4.gif.
Matrix Organizational Structure, n.d. [Online]. Available:
matrix-organizational-structure.gif.
Minneapolis Parks Department. MPRB Organizational Chart,
n.d. [Online]. Available: http://www.minneapolisparks.org/
graphics/about/mprb-organizational-chart.jpg.
Novak, D., M. Rennaker, and P. Turner, Using Organizational Network Analysis to Improve Integration Across
Organizational Boundaries, 2011 [Online]. Available:
http://www.hrps.org/resource/resmgr/blog_docs/hrps_
ps_orgnetworkanalysis.pdf.
Organizational definitions, 2012 [Online]. Available: http://
www.bing.com/images/search?q=functional+organizati
onal+structure&view=detail&id=097039DC95882673F
B6A64CCE7936E043BB74410&first=1http://www.
bing.com/images/search?q=functional+organizational+
structure&view=detail&id=097039DC95882673FB6A6
4CCE7936E043BB74410&first=1.
Robbins, S.P., and T.A. Judge, Organizational Behavior,
13th ed., PearsonPrentice Hall, Upper Saddle River,
N.J., 2009.
Robbins, S.P., and T.A. Judge, Organizational Behavior,
15th ed., PearsonPrentice Hall, Upper Saddle River,
N.J., 2012.
Three Sigma, Inc., Organizational Restructuring, 2012
[Online]. Available: http://www.threesigma.com/organizational_restructuring.htm.
29
APPENDIX A
Survey Questionnaire
Airport Organization Questionnaire
The survey is designed to aid the researchers in identifying Airport Organizational Structures that meet the strategic,
operational and business goals and facilitate delivery of core services.
The term organizational structure refers to the formal configuration between individuals and groups with respect to the
allocation of tasks, responsibilities and authority within organizations (Greenberg and Baron 2008). This structure is usually
depicted visually through the organizational chart so that one can view the intended relationships. The aggregate information
gathered in this research process will be de-identified, unless you are willing to participate further.
The objective(s) of this research effort is to provide airport operators with a synthesis that identifies:
Methods, processes and factors used to develop, implement and evaluate organizational structures including how to
evaluate the effectiveness of existing or changed organizational structures
Advantages, disadvantages (lessons learned), and possible constraints to organizational concepts and frameworks (functional, product, facility, or customer centric)
Selected case examples of the above in practice within the airport industry.
1
Within your organization, how many airports are managed?

a. 1
b. 2
c. 3
d. 4+
2.
What is the governance/ownership structure of your airport/organization?
3.
What is the airports 3-letter identifier, if multiple airports, please list all?
4.
If you are connected to a specific jurisdiction, do you use/purchase any services from your jurisdiction, or outsource any of the following functions?
a. ARFF
b. LE
c. IT
d. HR
e. Other (please explain):
5.
Number of full-time equivalent (FTE) employees under the direct supervision of the airport (i.e., exclude municipal employees not on the airport premises or any outsourced employees).
6.
How would you classify the current structure of your organizational?

a. Functional organization: employees are divided into groups by the job functions the perform
b. Product organization: self-contained divisions that are responsible for everything to do with a certain product or
group of products
c. Customer-centric
d. Facility-based: landside, airside, facilities
30
7.
Have you changed the structure of organization in the last 10 years?

a. Yestotal organizational structure
b. Yespartial, certain departments/divisions
c. No
8.
If yes to Question 7, what were the triggers/events to precipitate change (check all that apply)?
a. Financial restructuring
b. Functional reassignment
c. New skills and capabilities needed to meet operational requirements
d. Accountability
e. Workload issues/staffing (over under)
f. Communication issues
g. Morale
h. Political climate or key stakeholders
i. Strategic or strategy change
j. Other (please explain):
9.
Did the organizational restructuring follow

a. Job functions
b. Activities/lines of business
c. Customer satisfaction
d. Markets
10.
Did your airport complete any type organizational analysis to study the need for change prior to the
reorganization?
a. Yes
b. No
11.
If yes to Question 10, provide a brief explanation of what it entailed, and did the current staff have input, and
was it conducted internally, or were outside consultants used in the process.
12.
Many organizations cite a need to achieve Organizational Efficiency and Effectiveness.

a. Describe what Organizational Efficiency means to YOUR airport and how is it measured.
b. Describe what Organizational Effectiveness means to YOUR airport and how is measured.
13.
How often do you evaluate your organizational structure?

a. Yearly
b. Every 5 years
c. When the need arises
d. Have not evaluated it
e. Other
31
14.
If yes to Question 13, what criteria are used in the evaluation process?
15.
Would you be willing to be further interviewed for this ACRP Synthesis project? If so, please list your contact
information.
Thank you for your participation in this research effort.

Kim Kenville, Ph.D., C.M. (Kim Kenville Consulting)
James F. Smith, Ph.D., P.E. (Smith-Woolwine & Associates)
32
APPENDIX B
Airport Respondents
Airport Name
Identifier
NPIAS
Governance
Region
1. Outagamie Regional Airport
ATW
Non hub
County
Great Lakes
2. Bismarck Municipal Airport
BIS
Non hub
City
Great Lakes
DFW
Large
Authority/Corp.
Southwest
3. Dallas-Ft. Worth Intl. Airport

4. Kissimmee Gateway Airport
ISM
GA
City
Southern
5. Louisville Regional Airport
SDF
Small
Authority
Southern
LOU
GA
Authority
Southern
FAR
Small
Authority
Great Lakes
a. Bowman Field
6. Fargo Hector Intl. Airport
7. Lexington Blue Grass Airport
LEX
Small
County Corp.
Southern
8. Minot International Airport
MOT
Non hub
City
Great Lakes
9. Sioux Falls Regional Airport
FSD
Non hub
Authority
Great Lakes
10. Saskatoon, Canada
YXE
Small
Authority
Canada
11. Spokane International
GEG
Small
City/County
Northwest Mtn.
a. Felts Field Mtn.
SFF
GA
City/County
Northwest
12. Rapid City Regional Airport
RAP
Non hub
City
Great Lakes
13. Columbus Regional Airport
CMH
Medium
Authority
Great Lakes
LCK
GA
Authority
Great lakes
a. Rickenbacker
b. Bolton Field
TZR
GA
Authority
Great Lakes
PHX
Large
City
Western Pacific
a. Deer Valley Airport
DVT
Reliever
City
Western Pacific
b. Goodyear
GYR
Reliever
City
Western Pacific
15. Snohomish County/Paine Field
PAE
GA
County
Northwest Mtn.
SLC
Large
City
Northwest Mtn.
a. Salt Lake City Airport II
U42
GA
City
Northwest Mtn.
b. Tooele Valley Airport
TVY
GA
City
Northwest Mtn.
17. San Diego International Airport
SAN
Large
Authority
Western Pacific
18. Nashville International Airport
BNA
Medium
Authority
Southern
19. Toronto Pearson Intl. Airport
YYZ
Large
Authority
Canada
20. Colorado Springs Airport
COS
Small
City
Northwest Mtn.
21. MinneapolisSt. Paul Intl. Airport
14. Phoenix Sky Harbor International
MSP
Large
State/Authority
Great Lakes
a. St. Paul Downtown
STP
Reliever
State/Authority
Great Lakes
b. Flying Cloud
FCM
Reliever
State/Authority
Great Lakes
c. Anoka CountyBlaine
ANE
Reliever
State/Authority
Great Lakes
d. Lakeville
LVN
Reliever
State/Authority
Great Lakes
e. Crystal
MIC
Reliever
State/Authority
Great Lakes
f. Lake Elmo
22. Southwest Florida International Airport
a. Page Field
21D
Reliever
State/Authority
Great Lakes
RSW
Medium
Authority
Southern
FMY
GA
Authority
Southern
Note: GA = general aviation.
33
APPENDIX C
Airport Organizational Charts
Many airport executives sent their current organizational charts to the researchers when the initial call for research began.
Those charts are held electronically as part of this synthesis project and can be found at www.trb.org, search on ACRP
Synthesis 40, under Appendix C.
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THE NATIONAL ACADEMIES PRESS

This PDF is available at http://nap.edu/22570

Issues with Airport Organization and Reorganization

Kenville, Kimberly A.; and James F. Smith

FIND RELATED TITLES

Issues with Airport Organization and Reorganization

AIRPORT COOPERATIVE RESEARCH PROGRAM

A Synthesis of Airport Practice

Administration and Management Aviation

Research Sponsored by the Federal Aviation Administration

TRANSPORTATION RESEARCH BOARD

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Issues with Airport Organization and Reorganization

AIRPORT COOPERATIVE RESEARCH PROGRAM

Project A11-03, Topic S01-05

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Issues with Airport Organization and Reorganization

THE NATIONAL ACADEMIES

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Issues with Airport Organization and Reorganization

TOPIC PANEL S01-05

Cover figure: Teamwork. Credit: http://www.bing.com/images/search?q=teamwork&

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Issues with Airport Organization and Reorganization

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Issues with Airport Organization and Reorganization

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Issues with Airport Organization and Reorganization

CHAPTER ONE INTRODUCTION

CHAPTER TWO LITERATURE REVIEW

CHAPTER THREE SURVEY RESULTS

CHAPTER FOUR CASE EXAMPLES

CHAPTER FIVE CRITICAL CONSIDERATIONS

CHAPTER SIX FLIGHT PLAN FOR ORGANIZATIONAL REDESIGN

CHAPTER SEVEN CONCLUSIONS

APPENDIX A SURVEY QUESTIONNAIRE

APPENDIX B AIRPORT RESPONDENTS

APPENDIX C AIRPORT ORGANIZATIONAL CHARTS

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Issues with Airport Organization and Reorganization

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Issues with Airport Organization and Reorganization

ISSUES WITH AIRPORT ORGANIZATION AND

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Issues with Airport Organization and Reorganization

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Issues with Airport Organization and Reorganization

ing that their original organizational chart needs to be

A questionnaire (see Appendix A) was designed to elicit

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Issues with Airport Organization and Reorganization

small hub/significant cargo

3. Salt Lake City International 

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Issues with Airport Organization and Reorganization

THEORY OF ORGANIZATIONAL STRUCTURE

3. Salt Lake City International