Management and Organisational Behaviour Qantas

Assignment 3 Management and Organisational Behaviour Prep atomic number 18d for Dr Retha Wiesner Faculty of air & Law University of S kayoedhern Queensland Toowoomba, Queensland by Student name W. Amal Peiris Student quash U1031128 MGT5000 INTRODUCTION Qantas faced the crisis in 2011. However it has commenced in 1990 when it was deregulated the disposal activity by dint of privatization. Culture of Qantas remained unchanged and it soundd as a government agreement. Since Qantas was a government owned cheek its court base was not war-ridden compared to different Airlines.Qantas responded with embarrassed- damage Jetstar and just like Virgin Airways, the latter also travel into international flight paths to provide an alternative to passengers. Since then Qantas set out on a modernization path whilst adapting to the global environment. However its cost base continued to climb. Three unions went on a strike and it aftermathed in 80,000 passengers being bear on, more than 60 0 flights kindlecelled and seven aircraft settinged. The impact has been felt at both domestically and internationally. On 29 November 2011, Qantas chief exe sheerive Alan Joyce agnize the decision to ground the airlines entire fleet.This action stranded 68,000 passengers around the world and locked out Qantas employees in response to the protracted industrial battle. Since dieies construct failed to resolve the dispute within 21 days, went through a binding arbitration. As consequences to the Qantas crisis the main challenges are to build of trust, restoring easily on the gambol(p) tattleships and rescuing Qantas reputation with its staff, customers, the government and new(prenominal) stakeholders. CRITICAL DISCUSSION ON THE cause ISSUES EVIDENT FROM THE fictional character cater could be define as, the ability to tease resources (human and machine) to line things d angiotensin converting enzyme. * a resource, not an act. It is an ability, a capacity, a strength a nd it does not ease up to be apply. * approximatelything which is positive in call of its output. * conception of strength out which sees it as the means whereby general objectives are achieved. * a resource which fanny be expanded and shared to the mutual benefit of all parties. Power over refers to the ability of one party to impose its will on an opposite. Power is an essential distributerial resource. It is demonst set upd by the ability to get someone else to do what you want you to do.However, if office staff holders manipulate and impose such(prenominal) exponent on someone else to achieve individual objectives rather than common objective, a mogul issue is arose. Bases of Power Bases of Power refer to what top executive-holders entertain that al first gears them to manipulate the behavior of others. These are Position king, including ? Reward berth power based on the distribution of rewards that others view as valuable. ? Coercive power power that is based on fear. ? Legitimate power and formal consent the power a person receives as a core of his or her position in the formal hierarchy of an organization, including shape and information power.Personal power including ? Expert power influence wielded as a takings of expertise, modified skill, or knowledge. ? Referent power identification with a person who has en operable resources or personal traits, the power of being likable. As the chief executive officer of Qantas, Alan Joyce possesses the sure power and formal authority. In the assumption case its manifest that Alan Joyce has utilize his power base in several circumstances, those stimulate been critically analyzed bellow The fleet basischief operating officer announced the immediateand unprecedented foundation garment of all Australian domestic and international Qantas flights as a result of the proposed lock-out of the airlines staff in response to continued industrial action against the company. This resulted gr ounding of 108 planes at 22 airports, domestically and internationally. Further it was estimated to cost $20 one million million million a day. This back been seen as a action taken by the chief operating officer based on the his received power and formal authority, which resulted in addition to the revenue loss a loss of goodwill too.However, one can argue that he made this decision with the best absorb of the Qantas and but not anything against the unions. In his words he said that all(a) Im concerned slightly is Qantas. This was not anti-union, this was pro-Qantas Ill make some(prenominal) tough decisions are needed in order to tick the survival of the fittest of this great company Actions to minimize cost As except explained in later part of this analysis, due to the deregulation of airline industry, way headed by Alan Joyce had to make succeeding(a) decisions to be war-ridden in terms of cost. Qantas decided to operate with low-cost Jetstar flights. Jetstar capacit y is very limited too. * Qantas announced a restructure which will see 1,000 jobs slashed as part of a revolutionary accent mark on Asia which would sponsor the management to cut cost and be more competitive. However, forward making these decisions management did not consult the parties who were going to be impacted. Based on the legitimate power and formal authority management apply a top-down ascend in terms of these changes. From the side of the employees, they could argue that this orgasm was not the amend start to change.From the other side one can argue that these decisions besides had to be taken to the survival of Qantas, hence he had through these in good faith. CRITICAL DISCUSSION ON THE CONFLICT ISSUES EVIDENT FROM THE CASE AND HOW THE RESPECTIVE PARTIES HAVE DEALT WITH THE CONFLICT. The crisis which faced Qantas during 2011 is said to have commenced due to the following changes made by the management in Qantas As a result of airline industry started going thro ugh a deregulation by the Australian government, by end of 1995, Qantas previously being a government owned organization became a public company which is listed in Australian Stock Exchange.However, as a result previously being a government owned organization, Qantas existing cost base wasnt competitive compared to other global airlines. Hence, management had to take following initiatives. * Qantas decided to operate with low-cost Jetstar flights. Jetstar capacity is very limited too. * Qantas announced a restructure which will see 1,000 jobs slashed as part of a new emphasis on Asia which would help the management to cut cost and be more competitive. As a result of these changes following conflict issues were arose among management and its employees.Parties participation Issues Action Engineers Engineers felt vulnerable for fear their expire would be sent overseas and they wanted unless limited outsourcing. * They went on strike over pay and conditions. * Later moved to arbitr ation, describing it as the give up outcome for the appropriate time. Baggage and catering Staff Their Concern was for job security and outsourcing rather than pay. * They went on strike over pay and conditions Long-haul Pilots To run into Qantas flights are operated by pilots paying at Qantas rates, not the lower Jetstar rates. The only action Qantas pilots had been taking was inflight announcements about the industrial dispute, as well as the donning of red ties that carry the message Qantas flight, Qantas pilots However, Fair Work Australia FWA industrial arbiter managed to bring the disputing parties to the negotiation table. FWA gave 21 days to disputing parties to resolve the dispute. But, within this design parties failed to reach a solution. Hence, FWA brought the dispute between Qantas and three unions to a al some through binding arbitration.On the other hand, Unions argued that Qantas has failed to expose good faith in the negotiations and reaction from Alana Joy ce was totally out of proportion to the issues. CRITICALLY DISCUSS THE lead STYLE OF QANTAS chief executive officer, ALAN JOYCE AS EVIDENT FROM THE CASE AND THE CHANGE MANAGEMENT STRATEGIES THAT HE HAS USED IN DEALING WITH THE STRIKE. Leadership style Its unmixed from the research made on the Crisis leadinghip that leaders play a central role in crisis through reason making and the viable mental models. In this regard in depth knowledge on the crisis is very much crucial to a leader.In a crisis situation leaders actions are always depends on the lead style of that particular leader. A leader always makes decisions to cope with the crisis and to change the context in which it occurs in line with his/her leadership style. However, these actions may not always steady and say towards the wedded crisis situation. In the given Qantas case, when the industrial dispute occurred, Alan Joyce as the CEO of Qantas decided to grounding of all Australian domestic and international Qantas flights as a result of the proposed lock-out of the airlines staff.Further, he decided to reimburse accommodation be for those left stranded by the fleet grounding, and refund those who were expected to pilot with the airline. Afterward, he expressed his opinion on his actions saying that All Im concerned about is Qantas. This was not anti-union, this was pro-Qantas Ill make whatever tough decisions are needed in order to ensure the survival of this great company Hence, in this situation one could argue that the leadership style of Qantas CEO is authoritarian or Autocratic where organizeers have low bargaining power.In late 1940s, based on the research made by the University of Michigan it was derived ii basic forms of leadership behaviors employee-centered and production-centered. In the employee-centered environment its expected that leaders are sensitive to the employees feelings and emphasizes more on interpersonal relations. In the production-centered environment its expec ted that leaders are more concerned with spelling out the task requirements and emphasizes more on the technical aspects of the job.When considering the above decision and comment made by the CEO on the industrial dispute, its observable that CEO is authoritarian or Autocratic and relied more on the production-centered behavior. Change management strategies Typically, change initiatives are met by some resistance. In general, resistance is managed best if its recognise early in the change process. This mainly can be done through education, communication, participation and facilitation. In the given case its plain that management of Qantas had used Top-down approach to change.In this approach CEO believed that unidirectional communication backed by the formal authority of their position is abundant to implement the change. However, its evident from the case that this approach is not effective. Victims argued that Qantas has failed to display good faith in the negotiations and th is one-way communication of change process made number of issues in Qantas. E. g. The engineers, felt vulnerable for fear their work would be sent overseas. The pilots union wants to ensure Qantas flights are operated by pilots paying(a) at Qantas rates, not the lower Jetstar rates.The Transport Workers Union, which represents baggage handlers and catering staff, wants to crop work being sent outside Qantas. As a CEO, who plays study role in top management, Alan Joyce does not have a monopoly on expertise, information and inputs. In such situation, two-way communication would have given addition perspective to the change management process. Hence, in general it can be reason that leadership style and change management strategies used by the Alan Joyce are ineffective. THE SURVIVAL OF QANTAS MAY BE AT hazard IF THE ISSUES ARENT RESOLVED IN THE FUTURE.IN YOU VIEW, IS A kitchen-gardening CHANGE unavoidable IN QANTAS? JUSTIFY YOUR ANSWER BY CRITICALLY DISCUSSING THE CURRENT CULTUR E OF QANTAS AND EVALUATING WHETHER A CULTURE CHANGE IS NECESSARY. Although the Qantas and Australian Airlines were merged and Qantas was privatized, As a result of previously being a government owned organization the companys cost base wasnt competitive compared to other global airlines. The refining of Qantas including organizational structure, strategies, and cost base remained unchanged with the changes in Ownership.With the privatization, Qantas could have changed their culture including strategies, and cost base to be in competitive within the airline industry. Autocratic leadership was applied where workers have low bargaining power and there were no proper processes for performance evaluation, health and safety and benefits (Compensation) of employees. Leadership style should be arranged to enhance puzzle solving, effective decision taking, where performance evaluation, health and safety and benefits (Compensation) of employees is considered.They have failed in dealing wit h disputes with employees where dispute has had a profound effect on customers, suppliers and other third parties. Due to lack of communication Qantas failed to provide adequate greenback of anticipated interruptions to normal operations. Also Qantas has failed to display good faith in the negotiations. Therefore it is important to implement proper policies for result conflicts. Dividend has not been paid to the shareholders company since early 2009 and according to CEO there wont be any growth in the short term.Companys cost base is not supportive for make profits and further adding to the storm on Qantas is the severe competition from Virgin Australia in the domestic market. In a summary, changing culture of Qantas is very important to achieve objectives of rebuilding of trust, restoring good working relationships and rescuing Qantas reputation with its staff, customers, the government and other stakeholders. Existing heathenish web Qantas Myths & Stories * Lack of job securi ty * Poor Management employee relation Symbolic Aspects * Top management remote from workers * One way communication theoryPower structures * CEO call the shot * Belligerent union * Complaint work repel Organization * Top down Mgt hierarchy * Still follow bureaucratic style * Strong union Control systems * Lack of open ingenuous two way communications & Info sharing The Paradigm * decoct product not people * Atmosphere of mistrust * Structure, order & constancy Rites & Routines * High Safety RECCOMENDATIONS Power As the CEO of Qantas, Alan Joyce possesses the legitimate power and formal authority. In the given case its evident that Alan Joyce has used his power base in several circumstances. E. g. He announced to ground all Australian domestic and international Qantas flights as a result of the proposed lock-out of the airlines staff in response to continued industrial action against the company. * As a result of the deregulation of airline industry, management headed by Alan Joyce took some decisions to be competitive in terms of cost. These decisions resulted rate reductions and voluntary rate redundancies. However, affecting parties were not consulted before making these decisions. Earlier part of this analysis, it was concluded that a power issue is evident from these actions.Alan Joyce could have used his legitimate power and formal authority more acceptable way as his decisions created conflicts between Qantas and unions. This could have been done by way of * Using the power to mobilize resources to get things done efficiently and effectively. * Using the power and government activity to achieve common goals of all parties. * Creating friendliness use of flattery, creation of goodwill, playacting humble, and being friendly prior to making a decision. * Coalition acquire the support of other people in the organization to back up the decision. Bargaining use of negotiation through the exchange of benefits or favours. * assertiveness use of a di rect and forceful approach such as demanding compliance with requests, repeating reminders, ordering individuals to do what is asked, and pointing out that rules require compliance. Conflict management Its evident from the case that the CEO was unable to manage the conflict situation properly. Three unions were not happy about the approach used by the management. As conflict in an organization can be dangerous, CEO could have given more attention to the inappropriate issues.All conflicting situations cannot be considered to have negative impacts. There are two sides to a conflict. i. e. constructive side and destructive side. CEO could have place constructive side of the conflict. It could have offered the management to identify otherwise pretermit problems and opportunities. Further, it could have helped Qantas to become more innovative in the given issue. Hence, CEO could have understand the issue that causes the disagreement to be in a better position to manage the conflict an d use the conflict to the organizations advantage.This could have been done by * Listening carefully to unions to close out misunderstanding. * Clearing the air with regular meetings that give unions a chance to hold forth their grievances. * Offering as much information as possible about the changes to minimize confusion. * Developing conflict management strategies. Leadership CEOs actions against the industrial dispute brought number of conflicts on to the surface. This is mainly because unions were in the opinion that Qantas has failed to display good faith in the negotiations and CEO was totally out of proportion to the issue.However, leaders should play a central role in crisis through sense making and the viable mental models. In this regard CEO could have used an approach like case-based knowledge as it likely to raiment a leader with the best basis for problem-solving under crisis conditions. Case-based knowledge appears around applicable in crisis leadership as case-bas ed knowledge is known to be integral to planning and it provides information that is relevant to generating viable responses to the crisis situation.Even though it is unsufferable to predict a crisis, as a leader CEO could have taken precautionary actions to prepare for such crisis. These may include * Cataloguing potency crisis situations * Devising policies for their prevention * Formulating strategies and tactics for potential crisis * Identifying who will be most affected by the crisis * Devising effective communication channels to those affected to limit the damage the organizations reputation. Associated change management strategiesIn the given case its evident that management of Qantas had used Top-down approach to change. In this approach CEO believed that one-way communication backed by the formal authority of their position is enough to implement the change. However, its evident from the case that this approach is not effective. Instead CEO could have used an approach li ke shared power and planned change. To minimize the likelihood of resistance one of the best approaches to change is, put strong emphasis on involving all parties affected by the change. Following steps could have been followed by the CEO. Education and communication educate the unions about the change before its implemented and help them to understand the logic of the change. * Participation and involvement Allowing unions to help design and implement the change and allowing them to contribute ideas and advice. * Facilitation and support Actively take care to the complaints and problems of the different categories of staff and providing training in the new ways, helping to whelm performance pressures. * Negotiation and argument Offering incentives to actual or potential resistors. Manipulation Using covert attempts to influence others. E. g. buying off leaders. * diaphanous or implicit coercion At last resort, using force to get people to accept change. Organizational cult ure * Organizational culture should be change to in accordance with structure to achieve its common goals. * Build strategies in accordance with structure, culture, and HR policy. * Implement proper procedures for resolving industry disputes. * Start by changing peoples behavior. * find proper plan for voluntary redundancies. interpose in the cultural communications that is, those things that communicate culture, and try to get people to adopt the new beliefs and values. * Intervene in the hiring and socialization of members. Hire people who would fit in with the desire culture, and teach them the rules, norms and expectations of the organization. * Remove any deviants from the organization. LIST OF REFERENCES University of Southern Queensland, Faculty of byplay and Law, 2012, MGT5000 Managing organizational behaviour, Study book, University of Southern Queensland, Australia, pp. 20-141. Wood, Zeffane, Fromholtz, Wiesner, Creed, A2010, Organisational Behaviour core concepts and applications, 2nd Australian edn, , John Wiley Sons Australia Ltd, Milton, Qld, Australia. ABC (2011) What is the Qantas dispute all about? http//au. finance. yahoo. com/news/What-Qantas-dispute-abc-2933944078. hypertext mark-up language? x=0 ABC Updated October 31 Val Gostencnik and John Tuck (2011) sextuplet lessons from Qantas, http//www. corrs. com. au/THINKING/INSIGHTS/SIX-LESSONS-FROM-QANTAS/ http//en. wikipedia. org/wiki/2011_Qantas_industrial_disputes viewed on 31 May 2012.