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Managing Conflict & Change
Transcript of Managing Conflict & Change
Mandated Pressures to Change British Airways forced to change from government funded agency to privatized corporation due to poor performance and high levels of debt. The Singapore Government chose to privatize the airline in 1985, leading to arguably the largest change which the airline was to undertake.
-Privatization meant de-regulation of HRM activities including recruitment of foreign. New low cost airlines threatened Singapore Airlines' market share and forced the company to change it's 'unique selling proposition' and re-energise it's 'Singapore Girl' service.
Air Asia needed to tap into new markets if they were to survive among other airlines during a period of market decline. Market Decline Pressures New Broom Pressures Air Asia & British Airways both introduced new CEOs Tony Fernandes and Colin Marshall respectively.
These leaders possessed new visions for change within the organisations and were prepared to initiate radical change within their corporations to ensure survival and success. Case Studies for Change British Airways
Singapore Airlines Drivers for Major Organisational Change Effective Communication Rewards and Recognition Reward systems are one of the most effective methods that an organisation has to alter employee behaviours, so it is crucial that it is not forgotten in the change process.
Staff who embraced change at SIA were recognised and rewarded accordingly both intrinsically and extrinsically resulting in higher levels of motivation.
The intrinsic reward systems fostered the corporate culture transitions to customer service focused.
New performance appraisals based on team work and customer service. BA managers were also offered incentives to encourage change.
AA employees given recognition through bonuses based on employee contribution. Also encouraged to invest in the company to promote interest in the org's performance. Western employees now hired if best candidate for the job, meaning current staff must learn to work with new cultures.
New organisational mission to deliver their 'unique selling proposition' to an international market. The 'Singapore Girl' service expectation was ultimate change for front line employees. Structural Change- Empowerment Frontline staff are the sole contact point between airline organisations and their customers & hence are key to delivering the change towards superior service quality.
Air Asia creates a setting for employees to feel valued and empowered through flattening the structural hierarchy allowing for greater freedom in front line activities & more efficient communication processes.
At British Airways, the CEO, Colin Marshall implemented a more democratic and structure making employees feel more valued and empowered in their roles.
Effective recruitment and training procedures ensure that frontline staff are trusted to make independent decisions regarding quality control. The new CEO at Air Asia acted as a change agents within the company.
Tony Fernandes inspired his workers through good communication and practicing what he preached.
Once a month will assist in baggage handling, steward every two months and check in every 3 months.
Down to earth and approachable
Fernandes is known to value all his employees, shown in his belief in their individual abilities and qualities through job empowerment. Air Asia believed in investing in the right people for long term commitment and quality service. Fernandes looked for people who reflect values important to him that he wanted the company to have, including drive, ambition and humility.
Singapore Airlines designed new recruitment policies for front line staff to assist in the effective implementation of the change. The 'stringent' new recruitment procedure ensured that only those who met the various criteria synonymous with the 'Singapore Girl' were hired. Using the new recruitment process, SIA looks for and recruits who can 'empathise with passengers and who are cheerful, friendly and humble'.
British Airways looked for a more diverse range of staff who shared the same values as the company and effectively resignated with the new management system. Leadership from change agent is crucial to ensuring employees accept organisational change. Empowerment in roles through flattened hierarchy & comprehensive training. Synergy in corporate strategy and HR practice
rewards systems Communication of changes and organisational vision. What determines successful change? Successful outcomes based on drivers for change
Employee resistance to change managed effectively
Change achieved in a timely fashion
Situational factors taken into consideration to successfully implement change Introduction of new CEO, Tony Fernandes with a fresh vision, target market and selling point as a low budget airline.
Changing the recruitment structure to hire individuals who shared the vision of the company and demonstrated the values.
Encouraging a team, employee focused culture by removing hierarchies and empowering employees. Privatisation and new CEO Colin Marshall led to a new culture of customer service and marketing focus. Employees were encouraged to put 'customers first' while managers were to put 'employees first'.
Major downsizing of the number of employees from 59,000 to 37,000.
Removed bureaucratic structures by removing middle management to empower employees & facilitate better communication.
Changed recruitment policies to initiate a culture change. Quarterly basis review with all the employees and brainstorming sessions.
Tony Fernandes not only assists his employees but insists his senior management also works with the employees. This shows the equality of all the employees, creating a strong organisational culture.
Air Asia emphasise the values of the team culture by having a culture department that organise events and facilitates commiunication in the company.
BA rebuild image and constantly encourage and embrace new changes. E.g. Introduction of i-Pads to employees.
At SIA, communication is key to success in change management as well as employee motivation and development of corporate culture. Performance appraisal is also important as British airways conducted a series of real-time customer survey trials providing feedback to employees on their performance to use for ongoing customer service training.
At SIA, employees are continuously trained in both functional and general training modules. Training ranges from safety procedures to wine appreciation and 'the art of conversation'.
This continuous training enables employees to be more empowered in their roles as well as ensuring they feel at ease with any changes occuring within their functional role. Reputation & Credibility Pressures The air travel market was not only under pressure as a result of pricing issues but also credibility pressures as a result of hijiacking attacks and fatal aeroplane accidents.
Singapore Airlines Flight 006 killed 83 passengers in 2000
September 11 terrorist attacks in 2011
Customers lost faith in air travel security resulting in reputation and credibility weakening resulting in market decline pressures.
Each airline in the case studies took unique approaches to the problem. All change processes are different and it is extremely unlikely that a single model will 'fit'. Humans are not rational or predictable. Air Asia's bankruptcy forced the company to acquisition by Tony Fernandes, who expected widespread change to return profitability to the organisation. “I saw a business opportunity. Everyone likes to fly. And I think the key number that got me going was only six percent of Malaysians flew. I started looking at the prices of tickets, and to travel from one part of Malaysia to another it was almost someone's one month salary. So that drove me.” Organization benefited from change process
Theoretical basis to change process Successful Change