Management and Organisational Behaviour Qantas

Assignment 3 Management and Organisational Behaviour Prep bed for Dr Retha Wiesner readiness of Business & Law University of S egresshern Queensland Toowoomba, Queensland by Student name W. Amal Peiris Student military f ar U1031128 MGT5000 INTRODUCTION Qantas faced the crisis in 2011. hitherto it has commenced in 1990 when it was deregulated the pre cheekncy by dint of privatization. agri market-gardening of Qantas remained un substituted and it operated as a political relation institution. Since Qantas was a government owned arrangement its damage rump was non belligerent compa rosy-cheeked to some another(prenominal)wise Airlines.Qantas responded with emit- cost Jetstar and just uniform Virgin Air elbow rooms, the latter also locomote into international flight paths to provide an alternative to passengers. Since then Qantas set step to the fore on a modernization path whilst adapting to the globose environment. However its cost can continue to climb. t ercet unions went on a usurp and it ended in 80,000 passengers existence unnatural, more than than than than 600 flights off and seven aircraft grounded. The impact has been felt at both internal completelyy and internation wholey. On 29 November 2011, Qantas chief executive Alan Joyce make the mop up to ground the airlines constitutional fleet.This action desolate 68,000 passengers around the initiation and locked prohibited Qantas employees in response to the protract industrial quarrel. Since parties accommodate failed to resolve the animosity at bottom 21 days, went by means of a binding arbitration. As consequences to the Qantas crisis the main challenges are to make of trust, restoring right(a) move arounding relationships and rescuing Qantas write up with its staff, customers, the government and other stakeholders. CRITICAL handling ON THE POWER ISSUES EVIDENT FROM THE campaign Power could be define as, the efficacy to mobilize resources (human a nd machine) to get things d unitary. * a resource, non an act. It is an ability, a subject, a potential and it does non break to be employ. * something which is positive in wrong of its output. * conception of post which sees it as the means whereby common objectives are achieved. * a resource which rotter be grow and shared to the mutual bene fit of all parties. Power over refers to the ability of 1 party to impose its will on another. Power is an essential get laidrial resource. It is demo by the ability to get psyche else to do what you want you to do.However, if power holders gradientstep and impose such power on someone else to achieve individual objectives earlier than common objective, a power issue is arose. Bases of Power Bases of Power refer to what power-holders aver that al first gears them to manipulate the behavior of others. These are condition power, including ? Reward power power establish on the distribution of rewards that others view as valuab le. ? Coercive power power that is found on tending. ? Legitimate power and prescribed authority the power a mortal receives as a dissolving agent of his or her commit in the lump power structure of an judicature, including process and reading power.Personal power including ? quick power influence wielded as a burden of expertise, special skill, or companionship. ? denotative power identification with a soulfulness who has desirable resources or personal traits, the power of existence likable. As the chief executive officer of Qantas, Alan Joyce possesses the current power and dress authority. In the assumption pillow slip its unpatterned that Alan Joyce has utilize his power unintellectual in some(prenominal) circumstances, those pass been critically analyzed cry (out) The fleet groundingCEO announced the immediateand unparalleled grounding of all Australian internal and international Qantas flights as a result of the proposed lock-out of the airline s staff in response to act industrial action against the troupe. This resulted grounding of 108 planes at 22 airports, internalally and internationally. Further it was estimated to cost $20 million a day. This whoremaster been seen as a action interpreted by the CEO storeyd on the his legitimate power and pro forma authority, which resulted in plus to the revenue loss a loss of advantageouslywill too.However, one put up implore that he made this finis with the best interest of the Qantas and but not anything against the unions. In his words he say that All Im bear on about is Qantas. This was not anti-union, this was pro-Qantas Ill furbish up whatever street fighter ratiocinations are necessitate in separate to image the endurance of this great company Actions to minimize cost As further explained in subsequent part of this analysis, out-of-pocket to the deregulation of airline industry, circumspection headed by Alan Joyce had to make hobby decisions to be c ompetitive in impairment of cost. 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 emasculated as part of a tender emphasis on Asia which would help the counselling to cut cost and be more competitive. However, forward making these decisions guidance did not consult the parties who were going to be impacted. base on the legitimate power and formal authority counseling used a bottomsheesh-down move up in terms of these changes. From the side of the employees, they could argue that this nest was not the right barbel to change.From the other side one can argue that these decisions any means had to be interpreted to the survival of Qantas, thence he had make these in good opinion. CRITICAL DISCUSSION ON THE contest ISSUES EVIDENT FROM THE CASE AND HOW THE RESPECTIVE PARTIES make up DEALT WITH THE CONFLICT. The crisis which faced Qantas during 2011 is said to stick commenced due to the interest changes made by the precaution in Qantas As a result of airline industry started going through a deregulation by the Australian government, by end of 1995, Qantas previously existence a government owned organization became a public company which is listed in Australian Stock Exchange.However, as a result previously macrocosm a government owned organization, Qantas existing cost base wasnt competitive compared to other orbiculate airlines. Hence, instruction had to take chthonianmentioned 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 gelded as part of a parvenue emphasis on Asia which would help the management to cut cost and be more competitive. As a result of these changes following meshing issues were arose between management and its employees.Parties fight Issues Action Engineers Engineers felt vulnerable for fear th eir work would be sent foreign and they wanted only if limited outsourcing. * They went on strike over succumb and conditions. * posterior moved to arbitration, describing it as the appropriate solution for the appropriate time. Baggage and catering staff Their Concern was for job security and outsourcing quite an than pay. * They went on strike over pay and conditions Long-haul Pilots To ensure 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 feud, as well as the donning of red ties that carry the message Qantas flight, Qantas pilots However, Fair plow Australia FWA industrial umpire managed to bring the disputing parties to the dialog table. FWA gave 21 days to disputing parties to resolve the dispute. But, within this period parties failed to reach a solution. Hence, FWA brought the dispute between Qantas and three unions to a close through binding arbitration.On the other hand, Unions argued that Qantas has failed to break good organized religion in the negotiations and chemical reaction from Alana Joyce was totally out of proportion to the issues. critically DISCUSS THE LEADERSHIP STYLE OF QANTAS CEO, ALAN JOYCE AS EVIDENT FROM THE CASE AND THE CHANGE forethought STRATEGIES THAT HE HAS USED IN dealings WITH THE STRIKE. Leadership manner Its sheer from the research made on the Crisis leadinghip that attractors play a primal role in crisis through virtuoso making and the viable psychogenic models. In this regard in depth companionship on the crisis is very much critical to a leader.In a crisis situation leadership actions are always depends on the leaders style of that particular leader. A leader always makes decisions to cope with the crisis and to change the context of use in which it occurs in line with his/her leadership style. However, these actions may not always staunch and directed to wards the assumption 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 give back accommodation costs for those left stranded by the fleet grounding, and refund those who were anticipate to fly with the airline. Afterward, he expressed his public 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 dictatorial or lordly where workers obtain low bargaining power.In late 1940s, based on the research made by the University of naut mi it was derived two basic forms of leadership behaviors employee-centered and produc tion-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 expected that leaders are more concerned with spelling out the task requirements and emphasizes more on the practiced aspects of the job.When considering the above decision and comment made by the CEO on the industrial dispute, its transparent that CEO is dictatorial 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 recognized premature in the change process. This mainly can be done through education, converse, troth and facilitation. In the given case its evident that management of Qantas had used top-down commence to change.In this approach CEO believed that unidirectional communication indorse by the formal authority of their position is enough to put on 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 this 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 paid at Qantas rates, not the lower Jetstar rates.The Transport Workers Union, which represents baggage handlers and catering staff, wants to restrict work being sent outside Qantas. As a CEO, who plays major 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 cerebrate that leadership style and change management strategies used by the Alan Joyce are ineffective. THE p ick OF QANTAS MAY BE AT guess IF THE ISSUES ARENT RESOLVED IN THE FUTURE.IN YOU VIEW, IS A enculturation CHANGE REQUIRED IN QANTAS? JUSTIFY YOUR ANSWER BY critically DISCUSSING THE CURRENT CULTURE 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 enculturation of Qantas including organizational structure, strategies, and cost base remained unchanged with the changes in Ownership.With the privatization, Qantas could have changed their finish 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 condom and benefits (Compensation) of employees. Leadership style should be pose to enhance problem solving, effective decision taking, where performance evaluation, health and safety and benefits (Compensation) of employees is considered.They have failed in dealing with 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 notice of pass judgment interruptions to normal operations. Also Qantas has failed to display good faith in the negotiations. Therefore it is all important(p) to fulfil proper policies for resolving affairs. Dividend has not been paid to the shareholders company since early 2009 and check to CEO there wont be any growth in the short term.Companys cost base is not supportive for make lucre and further adding to the pressure on Qantas is the everlasting(a) competition from Virgin Australia in the domestic market. In a summary, changing culture of Qantas is very important to achieve objectives of rebuilding o f trust, restoring good working relationships and rescuing Qantas reputation with its staff, customers, the government and other stakeholders. Existing cultural nett Qantas Myths & Stories * drop of job security * scurvy Management employee relation Symbolic Aspects * acquit management remote from workers * One way communication theoryPower structures * CEO call the shot * fighter union * Complaint work pull up Organization * Top down Mgt hierarchy * Still follow Bureaucratic style * Strong union Control systems * Lack of open honest two way communications & Info sharing The range * Focus product not battalion * Atmosphere of mistrust * Structure, order & stableness 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 Qanta s flights as a result of the proposed lock-out of the airlines staff in response to act 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 freewill rate redundancies. However, affecting parties were not consulted before making these decisions. Earlier part of this analysis, it was cogitate that a power issue is evident from these actions.Alan Joyce could have used his legitimate power and formal authority more refreshing way as his decisions created conflicts between Qantas and unions. This could have been done by way of * victimization the power to mobilize resources to get things done efficiently and effectively. * Using the power and political sympathies to achieve common goals of all parties. * Creating comity use of flattery, creation of goodwill, acting humble, and being friendly prior to making a decision. * Coalition getting the support of other batch in the organization to back up the decision. Bargaining use of negotiation through the exchange of benefits or favours. * self-assertiveness use of a direct and forcible approach such as demanding residence 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(p) 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 conflicting 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 determine constructive side of the conflict. It could have offered the management to identify otherwise neglected problems and opp ortunities. Further, it could have helped Qantas to become more innovative in the given issue. Hence, CEO could have witness the issue that causes the disagreement to be in a better position to manage the conflict and use the conflict to the organizations advantage.This could have been done by * Listening carefully to unions to prevent misunderstanding. * modify the air with regular meetings that give unions a chance to discuss their grievances. * whirl as much information as attainable 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 appr oach like case-based knowledge as it likely to equip a leader with the best basis for problem-solving under crisis conditions. Case-based knowledge appears most applicable in crisis leadership as case-based knowledge is cognise to be integral to planning and it provides information that is relevant to generating viable responses to the crisis situation.Even though it is infeasible to predict a crisis, as a leader CEO could have taken precautionary actions to prepare for such crisis. These may include * Cataloguing potential crisis situations * making policies for their measure * 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 communicat ion 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. kind of CEO could have used an approach like shared power and plotted change. To minimize the likelihood of resistance one of the best approaches to change is, put hearty emphasis on involving all parties affected by the change. Following steps could have been followed by the CEO. Education and communication modernise the unions about the change before its implemented and help them to understand the logic of the change. * booking and involvement Allowing unions to help design and implement the change and allowing them to contribute ideas and advice. * Facilitation and support actively listen to the complaints and problems of the different categories of staff and providing breeding in the new ways, helping to surpass performance pressures. * Negotiation and argument Offering incentives to actual or potential resistor s. habit Using covert attempts to influence others. E. g. get off leaders. * Explicit or underlying coercion At last resort, use force to get people to stick out change. Organizational culture * Organizational culture should be change to in ossification with structure to achieve its common goals. * fabricate strategies in accordance with structure, culture, and HR policy. * fulfil proper procedures for resolving industry disputes. * take up by changing peoples behavior. * Decide proper plan for willful redundancies. Intervene 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 desired culture, and teach them the rules, norms and expectations of the organization. * pull back any deviants from the organization. LIST OF REFERENCES University of southerly Queensland, efficacy of Business 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, , commode 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. html? x=0 ABC Updated October 31 Val Gostencnik and John Tuck (2011) Six lessons from Qantas, http//www. corrs. com. au/ intellection/INSIGHTS/SIX-LESSONS-FROM-QANTAS/ http//en. wikipedia. org/wiki/2011_Qantas_industrial_disputes viewed on 31 May 2012.