What can we predict about the organizational structure of a cruise ship company having high volume and low price compared with a company having smaller ships for wealthy customers?
The main thing that we can predict is that the larger cruise ship company will have a more bureaucratized structure. It will be more hierarchical than the smaller line, which is much more likely to have a flatter organizational structure.
The reason for this is the fact that the large firm must be concerned with moving large numbers of passengers in an efficient way. It needs rules and procedures to make sure that everything works efficiently in a sort of “cookie cutter,” mass produced sort of way. The smaller line needs to be more flexible so that it can meet the individualized needs of its clientele. It is more of a custom-design company than a mass production company. Therefore, it needs a flatter, more flexible structure.