Qantas Airline Analysis - Assignment Example

University of Portsmouth Managing people in organisation Student number: 712408 16/03/2014 Qantas Airline analysis Qantas airline dates back to the 1970s when it was a government owned company. However, crisis started looming in the organisation in the year 1990 when the government chose to deregulate Australia’s airline industry prompting its privatisation (Zeffane et al 2014). However, the company’s crisis has been attributed to high cost base especially wage structure and labour structures. This paper therefore identifies the key issues by utilising some theoretical frameworks of organisation relationships and eventually makes recommendations on how to improve Qantas’s relationships. Q1 There are various issues that arise from Qantas case. Firstly, there are considerate power and leadership issues that were instrumental in the Qantas crisis situation. Power can be explained using French and Ravins theory that explains five forms of power (Paula 2004, p.450). The theory explains power as legitimate, expert, referent, coercive, reward. In the Qantas case expert power could be applied as Alan Joyce was appointed based on his historic performance. In every organisation, the executives must exercise their powers accordingly to salvage the existing relationships. Qantas was in the lime-light in the way its CEO, Alan Joyce exercised his powers. For instance, the CEO ordered the grounding of flights when the company was at a crisis. He saw this as a way of saving the company from major collapse if the workers strike had been prolonged (Zeffane et al 2014). The move by Joyce was farther supported by Leigh Cliff, the executive chairman of Qantas. This confirmed exercising of powers by the executive leadership that undermined the existing relationships between the management and the employees. Power should not be used to undermine or intimidate the workers since too much oppression may lead to their revolt. For instance, Alan Joyce used his powers to force the warring parties into arbitration. However, exercising of powers may sometimes work to the advantage of an organisation since the management salvaged this situation that was further supported by the engineers. Alan Joyce and his executives were seen as leaders who undermined the welfare of their staff. The workers were protesting against outsourcing since they saw it as a way of jeopardising their jobs (Zeffane et al 2014). However, Alan Joyce appeared to ignore this and acted as a leader who was tough in his decisions. Leadership qualities also came into play in this crisis situation or turbulent times (Sandi 2011, p.855) .Though the CEO was criticised for his actions, the leader acted to bring a situation into calm. He used humility as a leadership trait to handle the situation. Conversely, there were some aspects of leadership that the management ignored. Outstanding communication skills could have ensured proper flow of information (Sandi 2011, p.855). The management was on the spot for keeping information from the workers. Organisational changes like changing the working conditions must be well communicated to employees that Qantas leadership did not consider. The role of trade unions is also evident from the Qantas case study. Trade unions have been instrumental as a forum where workers voice their complaints (Advocates for human rights 2010). In Australia for instance, Transport Workers Union is responsible for the welfare of workers in such areas like airlines and other transport sectors (Zeffane et al 2014). Besides the three trade unions were against outsourcing of workforce and wanted to be assured of job security. However, the management wanted to cut costs by focusing on the Asian markets. The unions fight for the rights of the workers by keeping organisations in check to ensure good working environments for the staff, proper payment and are also instrumental in solving industrial disputes (Advocates for human rights 2010). For instance, Fair Work Australia ordered quick negotiations with the striking workforce in Qantas airline and it gave the two parties an ultimatum of 21 days to settle their disputes. When Qantas CEO, Joyce Alan grounded flights, the decision locked out the three union members of engineers, catering and baggage staff, which was seen as undermining the role of trade unions in the company. This called for action FWA that acts as an industrial tribunal in Australia. Eventually, FWA recommended 3% pay rise for the Qantas, a move that proved the role of trade unions in fighting for the rights of the workers (Zeffane et al 2014). Organisation culture is the way a company or a business enterprise carries out its operations and it dictates the relationships within the company (Jollien 2013, p.1). It is designed by the top management. A good organisation culture must strive to build relationships among all the stakeholders. In Qantas for instance, the organisational culture locked out employees from important tasks like decision making. This in turn made the employees, stakeholders and the general public to build bad faith on the company. On the other hand, the culture in this organisation was towards building corporate alliances that was objected by the employees. Big companies like Qantas require corporate culture which enables multinational companies to form mergers to ensure profitability and competiveness (Zabid, Murali & Juliana 2003, p. 710). In this case, Alan Joyce was adopting a corporate culture in the organisation that saw the company shifting to the Asian market as way of improving the capital base of the company (Zeffane et al 2014). However, corporate strategies must be inclusive of all the stakeholders which explain why such a move was not welcomed by the staff. Conflicts in organisations arise when employees feel dissatisfied with their work conditions. Morton Deutsch is the pioneer for developing a cooperative model of conflict resolution (Dixit 2004). He stated that resolution depends on the nature of conflicts as well as goals that parties want to achieve in the process. In Qantas conflict arose due to poor payments and job uncertainty (Zeffane et al 2014). There are numerous ways of resolving conflicts like mediation, arbitration, negotiation among others. Conflicts may be resolved at the organisation level and when the parties fail to agree, tribunals are formed to look into the situation. In the case of Qantas, mediation was first employed whereby the management and workers were considering a clear agreement. However, this failed thus FWA had to chip in as an arbitrator to force them into a final judgement. The way the management handles conflicts is vital since it is a test on the relationship aspects of the organisation (Ariel 2010, p.238). Qantas chose to go the hard way of forcing its decisions thus resulting into a crisis. The company was in the brink of economic challenge resulting to conflicts that could have been resolved at the organisation level through mediation or negotiation. Psychological contract has been instrumental in human behaviour and relationships at work places (Patrrick, 2008, p.9). It can be explained using venn diagram that shows external and internal factors of such contracts. Psychological contracts are the relationships that exist between employers and their employees (Businessballs 2014). Psychological contracts therefore, show the expectations that employees have towards their employers. In Qantas for instance, employees wanted job security and better working conditions as well as better payment (Zeffane et al 2014). Employees at the company have dedicated their time to work for the company after which they expect better reward from their employer. However, the management breaches this contract and the workers retaliate by going on strike and boycotting work. On the other hand, the CEO breaches this psychological contract when he decides to ground flights thus denying workers their rights. Psychological contract model (Businessballs 2014) Q2 Intimidating workers with too much power create a poor working environment resulting in bad relationships between the management and its staff (Paula 2004, p.454). Besides, there ought to be a proper channel of communication of channelling ideas and decisions that leads to integrity and accountability in the organisation. Qantas was faced with a conflict that portrayed bad relationships in the company. Relationships in the organisation majorly depend on conflict mitigation and resolution (Ariel 2010, p.245). The conflicts ought to be resolved in such a way that satisfies all the parties. Qantas executive failed to consider grievances of the employees thus giving the company a bad corporate image. Adopting of corporate culture was a milestone in the company but it ought to have involved workers as well. Corporate cultures build good relationships in the companies but only if everyone is taking part in the decision making (Zabid, Murali & Juliana 2003, p.715). The management must make use of Schein’s theory of organisational culture that identifies levels of culture as artefacts, espoused beliefs and values and the basic underlying assumptions (Jollien 2013) In summary, Qantas crisis has brought about leadership and management issues that are worth noting. The report has analysed conflict in the case study using theoretical models like venn diagram, French and Ravin’s theory, Morton Deutsch theory and Schein’s theory. The management, through its CEO Alan Joyce, have used their powers to make certain decisions that would later affect business operations in the company. On the other hand, the case shows how bad leadership can result in a company’s failures and crises. Besides, the report also gives an inference into organisational culture and its effects on Qantas Company. In addition, the concept of psychological contract also played a role in the case study since it explains what employees expect from their employers. Nonetheless, conflicts are important aspect of an organisation since they indicate dissatisfaction from the employees. Finally, the essay recommends that Qantas can salvage its relations by adopting a good corporate culture, good communication channels and proper conflict resolution. References Advocates for Human Rights 2010, The Role of Trade Unions and Collective Bargaining, viewed from http://www.stopvaw.org/the_role_of_trade_unions_and_collective_bargaining Ariel, C. 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