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including heavy investments in such activities as mobile bag tracking, customer agent training, and flight safety. The company’s efforts have borne fruits including corporate clients ranking it as the best (Delta.com, n.d.). Besides, low unionization of labor, vertical integration, and effective operating model are also critical factors for the airline’s performance. The operation model ensures that the company incurs low costs on fuels, and this includes the airline owning sources of low-cost fuel. Similarly, vertical integration helps the company in reducing the costs incurred on fuels. Although a large number of airlines are known to have high unionization rates,this is not the case with Delta. The company's unionization rate is at 18%, which can be translated to mean that the company has strong human resource practices. For example, the airline has a leading profit sharing plan for its employees. The strategy has a lot of benefits to thecompany since it makes the labor costs that the airline incurs to be variable but not fixed. Effective financial management, including costs savings and investment, are also other critical resources that Delta has.
AUDIT ON DELTA AIRLINES 107.0.Leadership, Governance, and Management Delta operations are classified as mainline or subsidiary. As a whole. The airline employees at least 80,000 people working in different positions and levels. Since 2016, the company’s Chief Executive Officer (CEO) has been Ed Bastian. Another person in the top leadership, when it comes to human resources, is Joanne Smith, who has been serving as the Chief Human Resources Officer and the Executive Vice President (Delta.com, n.d.). The airline also has a Board of Directors, which has 12 members at the current moment. Delta Airline is based on the belief that practices of corporate governance offer a valuable guideline which helps the board and other stakeholders in performing their work. The leadership, governance, and management have a role of ensuring that an organizationachieves its missions, visions, goals, and objectives (MVGOs). The management, leadership, andgovernance structures of Delta Airline have played a central role in establishing values, mission, and the vision of the company. The airline values include servant leadership, perseverance, respect, integrity, and honesty. According to Thompson (2015), other functions of the of leadership, governance, and the management are setting the strategy and structure of the organization, delegating the management, as well as ensuring that there is accountability on the side of shareholders and stakeholders. The top leadership, the board of directors, and managers atdifferent levels of Delta Airline play their roles adequately and have contributed in different ways towards the airline's current state. Thompson (2015) notes that the directors should put the interests of the organization and employees at heart, must act skills and care, should act in good faith in whatever they do, as well as their exercising of power should be for the right purpose.