The Enterprise Is Emirates Airlines - Assignment Example

?Analyze How Your Organization/Enterprise Reflects A Specific Culture And How Its Leadership Utilizes This Culture In The Management And Marketing OfThe Enterprise. The Enterprise Is Emirates Airlines Table of Contents Introduction 3 Organizational Background 5 Types of Organizational Culture 7 Culture in Emirates Airlines 11 Leadership of Emirates Airlines in Its Organization: Marketing and Managing 14 Conclusion 17 References 18 Introduction The study focuses on the organizational culture and the leadership of Emirates Airlines and also on the various aspects by which the organizational culture is utilized by the management of Emirates Airlines. Generally, culture refers to the ethics and the values of the community. However, in the organizational point of view, ‘culture’ is a term that consists of the informal values and beliefs related to the interaction of the internal along with the external community. In the similar context, it can be stated that organizational culture assists to determine the relationship of an organization with the employees as well as the customers. Human Resource Management (HRM) is one of the key aspects in organizational culture. Therefore, analyzing the organizational culture is a vital factor as this in turn can assist to recognize the organizational behavior. The following types of behavior are included in organizational culture: 1. Innovation and stability: These factors encourage the organizational staffs to be innovative and creative. 2. Orientation process and their outcomes: Orientation process considers the management’s goals and results rather than concentrating on the techniques and achievements of an organization. 3. Operational management: Operational management factor considers the internal management system. 4. Social focus: This factor emphasizes on the relationship between the organizational staffs. 5. Customer focus and controlling the cost: This is the method to determine the customer satisfaction level rather than concentrating on the minimization of cost. 6. External and internal orientation: This factor emphasizes on the extent to which an organization concentrates on and is adaptive towards any kind of changes in its environment (Management consulting courses, n.d.). Organizational Background Emirates Airlines was established by the Government of United Arab Emirates (UAE) in an agreement with the Pakistan International Airlines (PIA), in May 1985 and the foremost service was started on 25th October, 1985. It is one of the largest airlines of Middle East and recognized as a global player in worldwide airline industry (Cannegieter, 2004). Emirates Airlines had begun their first flight with the destination of Bombay, Delhi (India), Karachi in Pakistan along with Colombo in Sri Lanka and Cairo in Egypt. In 1987, Emirates had started the services with London, Frankfurt and Istanbul. In 1992, the airline company had expanded their services to Djakarta, Rome and Paris. In present days, Emirates Airlines is offering their customers with the domestic, the international and the regional flights. They are serving 53 countries with 75 destinations in the Middle East, Europe, CIS, Africa, Australia and many other regions (Cannegieter, 2004). The Emirates Group holds 40 percent of stock in the Airlanka. It is an airline company of Sri Lanka. Emirates Airlines has recently made 10 years agreement with Airlanka. This in turn can increase the long-term growth of the company. The organization has made ‘code share’ based agreements with Air Mauritius, ANA, Air India, British Airways, Daallo Airlines, continental Airlines, Finnair, Japan Airlines, Srilankan Airlines and Thai Airway international (Cannegieter, 2004). Emirates Airlines hardly faced economic downturn because the company has set up their centre point in Dubai to get connected with European and Asian countries. Dubai is the ‘City of Gold’ in tourism and commerce and is also known as tax free city for shopping. Many luxurious hotels are also situated their like Burj-Al Arab and other seven star hotels among others. Dubai is renowned for trade especially in cargo business. Emirates Airlines targets to expand number of passengers to grow competency of their business (Cannegieter, 2004). In the financial year 2003-2004, Emirates Airlines had earned net profit of US $429 million. It can be stated that 73.5% enhancement was gained in that year. During that financial year, Emirates Airlines used to transmit 2 million passengers. Recently, the company has introduced 90 more aircrafts. It has been observed that Emirates Airlines is going to add more 130 flights by 2012 (Cannegieter, 2004). In the first half of 2008, airline industry had faced huge losses due to the increase in oil prices. This in turn had an effect on the customer satisfaction level. Emirates Airlines had to face similar problems but as their operations were from Middle East where there was encouraging growth in the air travel, they were able to tackle the scenario without major difficulties. Air Transport Association had surveyed the internal competency of Emirates Airlines and it had been considered that Middle East Asia had occupied majority of the business in 2009. There was 8.54% increase in the passenger growth in 2009 and 15.2% in 2010. In recent times, Emirates Airlines was capable to generate a net profit of AED 3.5 billion and they were able to have increase on revenues of AED 2.9 billion. In spite of the challenges faced by the industry in 2009-2010, they are able to gain the customer satisfaction level and are leading in the airline business (The Emirates Group, n.d.). Types of Organizational Culture Figure 1: The Denison Organizational Culture Model. Source: (Changeworks LLC, 2003). Organizational culture is the process of management that concentrates on the employees’ relationship with the organization along with the customers. Usually, the organizational values and ethics are judged by the organizational culture. There are various models that describe organizational culture but in this study Denison Organizational Culture Model is considered to discuss the various elements of organizational culture. As shown in the above mentioned figure organizational beliefs and assumptions are located in the centre. These factors are considered as the source of organizational behavior that needs to be implied in the daily corporate life. The other sub-dimensions of organizational culture are discussed below. Involvement: This process tends to motivate the employees, search for the leadership quality and impose responsibility. This factor also focuses how an organization can manage the human resources and develop the managerial quality among the workers. Empowerment, team orientation and capability development come under the involvement factor. a) Empowerment: This factor signifies the empowerment of employees in an organization. It is very essential to empower the employees by motivating them to gain leadership qualities and responsibilities. b) Team Orientation: Team effort is essential ingredient in an organization because without team work it is impossible to gain competency in the market. Therefore, an organization requires judging the co-operation among the co-workers. c) Capability Development: Capability development factor indicates the investment of an organization towards the employees. A company’s capability development aspects can be judged by this factor. Consistency: This factor observes the internal culture of an organization. Consistency involves core values, agreement and coordination. a) Core Values: Core values verify that the organization shares the values and perception to the employees because the working staff should have strong recognition of an organization. b) Agreement: Agreement evaluates the leader quality of employees, and verifies that the quality is essential to deal with the issues and the circumstances. c) Co-ordination: Co-ordination signifies that the units of an organization have co-operation among them. Because workers should have cooperation to enhance competency of an organization. Adaptability: Adaptability factor terms to investigate the organizational capability towards adaption according to the external market, which includes customers and the market area. Adaptability considers the following factors: a) Creating Changes: It signifies towards adopting the changes if required for the organization. This factor focuses on the organizational abilities towards competently adopting to the changes in the procedures. b) Customer Focus: At times, changes in the organizational aspect decrease the customer satisfaction level. Therefore, customers focus should be emphasized on the customers’ requirements and their satisfaction to anticipate future requirements. c) Organizational Learning: This factor signifies the interpretive level of an organization from the outsiders for encouraging improvement in an organization. Mission: An organization should prepare a clearly defined mission to have long-term profitability in the market. Mission aids an organization to obtain its goals. Mission emphasizes on the vision, strategic direction and goal and objectives of an organization. a) Vision: An organization should visualize the goals and the objectives and should also share the values among the other staffs. This in turn can augment the competency of an organization. b) Strategic Direction: An organization needs to plan to make their mark in the marketplace. This factor is required to share and contribute skills of each and every staff in the organizational perspective. c) Goals and Objectives: It is essential to set goals and objectives to get linked with the mission and strategy. Therefore, organizational goals and objectives can assist an organization to obtain the identified mission (Mobley & Et. Al., 2006). Organizational culture is an essential factor to be determined by an organization to gain reputation along with the long-term profitability in the market. Culture in Emirates Airlines Different types of organizational culture have been discussed before; concentrating on these cultural aspects, culture of Emirates Airlines is discussed below: Organizational culture refers to the concept and the procedure which is practiced internally along with the external market. It includes relationship between the customer and organization as well as with the organization and the co-workers (Black, 2003). Emirates Airlines was established by the Dubai Government and it is one of the leading airline companies throughout the world. Emirates Airlines had implemented organizational culture because they are strictly involved in empowerment, team orientation and improving the employee’s desire and training. Considering the customers’ desires, the organization has made the passenger classes for the middle income group to the higher income group. This is because their might be certain customers who cannot afford high expenses in passenger fair. Customer relationship management is highly maintained by the organization (Knorr & Eisenkopf, n.d.). Employees of Emirates Airlines come from 160 nations which is one of the strengths of this global organization. Culture, religion and social background of varied nationalities have enhanced the organization and also motivated to bring new ideas and thoughts. This in turn helps to gain competency and long-term profitability of an organization. Employees of Emirates Airlines also belong to Dubai’s multinational population where 85% of people reside as emigrants (The Emirates Group Careers Centre, 2011). Emirates Group widely focuses on the employees benefit because they are the foundation to improve the organizational benefit. The company had given a lot of benefits especially to the employees who are the permanent residents of Dubai. Emirates Airlines has established ‘Remuneration policy’, which generally focuses on developing the compensations and rewards through various analysis and research. The main aim of the company is to make long-term profitability in the market and also search for the talented employees who can ensure expansion and improvement in the company (The Emirates Group Careers Centre, 2011). Emirates Airlines motivate their workers by providing cash as well as non-cash elements. Being an Emirates employee, they get discounts at over 100 retails, hotels and outlets in Dubai and other places of UAE. Health and hygiene of employees is also taken care of by the Emirates Airlines, employees are provided with the dental and medical treatment cards. It has been stated earlier that the company is established by the Government of Dubai, therefore the pension facilities are offered by the government (The Emirates Group Careers Centre, 2011). Employees’ motivation and training is the part of organizational culture. Therefore, from the above mentioned facts, it can be stated that Emirates Airlines had motivated and also provided training to the employees’ for their development. Along with this the company is also has been bearing the expenses of the employees’ education who are interested or require to further study. This in turn can assist to maintain suitability in an organization (The Emirates Group Careers Centre, 2011). Emirates Airlines deducts causative 12% from the basic salary which are provided to the employees at leaving the company or at the time of retirement. There are various investment schemes offered by the Dubai government for the staffs of Emirates Airlines such as profit share scheme, exchange rate protection scheme and professional specialist allowances. Dubai government had highly protected and facilitated the staffs of Emirates Airlines (The Emirates Group Careers Centre, 2011). Dubai’s government is planning to generate high class and economic transportation for the future affluence and also bring transformation in lifestyle of people in the nation. Recently, Emirates Airlines had increased around 90 aircrafts and in the future day’s 130 fleets are going to be added up by the company. It can be mentioned that the company is planning for the future to gain progress in the business (Mersha, 2004). The future plan of the Emirates Airlines is to become global players in the 21st century, and also it aims to formulate Dubai as the apex destination for tourism and transportation. The high-class presentation of the Emirates Group has obtained the customers’ satisfaction level. This in turn assists the company to become market leaders (The Emirates Group Careers Centre, 2011). Emirates Airlines has won more than 400 awards and also established as the excellent performer in the airline industry. In 1987, sponsorship was acquired by the company. HH Sheikh Ahmed bin Saeed Al Maktoum, an Executive Chairman of Emirates Airlines had said sponsorship is the essential factor for the marketing strategy which assists to build high class relationship with the passengers (The Emirates Group Careers Centre, 2011). Therefore, it can be stated the growth of the Emirates Group is supported a lot by the organizational culture and presently they are one of the leading airline carriers in the world. Leadership of Emirates Airlines in Its Organization: Marketing and Managing Leadership is an essential aspect in an organization to handle any prevailing situation by keeping in view the organizational goals and objectives. Leadership also provides a basis for the employees in an organization to look up to in any difficult circumstances and also takes an organization towards future path of success. Leadership in the general sense means the quality to manage the organizational objectives (Marturano & Gosling, 2007). Emirates Airlines has been applying the employee-centric leadership in the organization. Employee-centric leadership involves motivating and providing the employees with every required facility. Emirates Airlines motivates their workers by providing bonus, cash and non-cash items. The company also bears the expenses for the education of the employees which in turn can benefit the organization (Bartley, 1977). Employees of Emirates Airlines are benefited by various factors as it has been stated that the company belongs to the Dubai government. Employees are secured for the future because they are offered with the life insurance policies and also get discounts and free packages in 5 stars hotels, restaurants and shopping centre’s. The company also provides their customers with the gratuity fund and other allowances. The Emirates Aviation College (EAC) is the learning institution where the Emirates employees are provided with the training facilities. The campus provides professional, vocational and academic training to the workers. EAC also focuses on the travel & tourism, computer engineering, business managements and aerospace engineering. Therefore, it can be stated that the company is providing various facilities to develop employees’ skill and to motivate them (The Emirates Group Careers Centre, 2011). Cargo industry of Dubai has attracted a lot to the outsiders. The government of Dubai has capitalized on geographical location for trading. Moreover, Dubai is the city where high class hotels are established. Therefore, the government had invested funds on cargo business, which in turn can create benefit to gain the long-term profitability of the Emirates Airlines (The Emirates Group Careers Centre, 2011). Emirates Group has been widely concentrating on the customer service. They are providing their customer with the in-flight services. The IFS-SD departments are established by the company which incorporates cabin crew managements, training for the cabin crew, business planning management and product development team. Team efforts of these units create healthy environment, motivation and support among the co-workers (The Emirates Group Careers Centre, 2011). The Emirates Group had established a commercial department which deals with various units like selling tickets, complaints or the feedbacks from the customers along with this the company also provides travelling services. This in turn can recognize the customer satisfaction level and also generate good return to the company (The Emirates Group Careers Centre, 2011). The Emirates Airlines have planning and research departments, and they have played vital role in boosting the organizational growth. The company has established two kinds of departments i.e., planning and market research. Planning involves strategic decision. Planning department can benefit the organization to serve new markets. Marketing research team of Emirates Airlines concentrates on the in-house investigation ability prevailing in the organization. There are various other research teams that help the organization to make progress and remain updated with the latest requirements. The main target of this team is to verify the needs of the customers so that the senior managers can be able to take decisions and meet the customers’ requirements (The Emirates Group Careers Centre, 2011). Marketing communication of the Emirates is well developed because the company has skilled professional workers who handle various departments such as advertisement, public relationship, promotional, in-flights services and sponsorship. As stated earlier that the company has enlarged their business in tourism and travelling. Therefore, they are searching for freshers who can provide benefits to the organization (The Emirates Group Careers Centre, 2011). Emirates engineering is one of the leading aircraft maintenance organizations. The company is providing their aircraft services at Dubai as well as in other countries. Emirates’ utilizes advanced technology in aircraft maintenances and the largest A380 protection faculty worldwide. The company had employed highly qualified employees of around 3,000 workers in the work in various aspects such as maintenance, engineering support and training. Emirates are dedicated with the quality, safety and customer satisfaction (The Emirates Group Careers Centre, 2011). Emirates Airlines had committed to ensure the customer satisfaction along with the motivation of the employees, this can be one of the reasons for it to become one of the largest airline companies throughout the world. Conclusion Organizational culture encompasses the customer satisfaction along with the organizational dedication to the employees because both customer and employee satisfaction are essential factors to gain competency in the market. Adaptability, involvement, mission and consistency are the aspects of Denison Organizational Culture Model (Dawson, 2010). Emirates Airlines has implemented the organizational culture successfully and through the Denison Model, it can be inferred that motivating the customers and satisfying the employees are the key features of cultural management. From the above context, it can be stated that Emirates Airlines are highly concentrated on the motivating the customer along with analyzing the customer requirements. Emirates Airlines have won many awards for providing high class services. The company has motivated their employees by providing incentives, gratuity payment and bonus. Employees of the Emirates Airlines are secured for the future because the government is providing them with the insurance and pension payment. Customer satisfaction level of Emirates Airline can be judged by the company’s dedication that has been discussed earlier. Therefore, it can be stated that the company had provided superior quality of services to the customers, which in turn has helped to gain the long-term profitability of the company. References Black, R., (2003). Organizational Culture: Creating the Influence Needed for Strategic Success. Universal-Publishers. Bartley, W., (1977). Journal of Arboriculture. Motivation and leadership in your business. Retrieved Online on September 21, 2011 from http://joa.isaarbor.com/request.asp?JournalID=1&ArticleID=1439&Type=2 Cannegieter, R., (2004). Airlines of the World. Emirates Airlines ‘Marhaba’. Retrieved Online on September 21, 2011 from http://www.aerlines.nl/issue_27/27_Emirates_Cannegieter.pdf Changeworks LLC, (2003). 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About Emirates Group. Commercial. Retrieved Online on September 21, 2011 from http://www.emiratesgroupcareers.com/english/Careers_Overview/commercial/default.aspx The Emirates Group Careers Centre, 2011. About Emirates Group. Planning and research. Retrieved Online on September 21, 2011 from http://www.emiratesgroupcareers.com/english/Careers_Overview/planning_and_research/planning_research.aspx The Emirates Group Careers Centre, 2011. About Emirates Group. Corporate communication. Retrieved Online on September 21, 2011 from http://www.emiratesgroupcareers.com/english/Careers_Overview/corp_comms/default.aspx The Emirates Group Careers Centre, 2011. About Emirates Group. Engineering. Retrieved Online on September 21, 2011 from http://www.emiratesgroupcareers.com/english/Careers_Overview/engineering/default.aspx Read More