Performance of Qatar Airways - Case Study Example

Project Title Student Name: Course information: Instructor: Date: Qatar Airways Introduction Qatar airways is one of the biggest players in the international aviation industry, and the national carrier of Qatar. It began operations in 1994, mainly concentrating on regional routes, but later expanded and re-launched in 1997, on a platform of high standards of excellence and service. Today, it is one of the premier luxury brands of the world, with the re-launch idea seeing it average unprecedented growth in the 14 years since. From the headquarters in Doha, the company now reaches over 146 destinations, covering most of the Middle East and South Asia, Europe, North and South America and the Asia pacific region (Jeziorski, 2010). Even with such levels of success, the airline continues to expand, with the aim of eventually being the best in the world. Qatar is one of the most attractive destinations in the region, and is continually gaining global recognition, as evidenced by the winning of the FIFA world cup hosting bid. Problem definition Qatar airways employee treatment Just like any other successful company, Qatar airways is not without its problems. The information age and the culture of full disclosure seems to be working as much against the company as it is for it. Qatar airways boasts many accolades and awards for its exemplary service and quality standards. However, one recent milestone brought to the fore a major issue for Qatar airways. One of the ways through which corporations gain recognition for their service and excellence is by joining organizations which stand for such standards. This trend is especially useful for organizations if the membership is high profile. In what was supposed to be a major move by Qatar airways, its inclusion in the one world alliance caused outrage within the aviation circles. Qatar airways, at least according to its chairman Abdul Aziz Mohammed, was to increase the benefits and operations of the company, increasing the destinations to 800 (QCAA, 2013). However, the International Transport Workers Federation (ITF), termed it a disgrace to the institution, which has high profile names like American Airlines and British Airways on the list of members (ITF, 2013). The ITF reaction came from allegations of selective hiring practices and gender discrimination in the treatment of employees by Qatar airways. According to a recent expose, the ITF levelled several accusations at Qatar airways. The biggest accusations were that the airline did not hire any already married workers. Female workers could not marry for five years, and even after that period, they had to ask for permission from the airline. The contracts signed by the airline staff indicated the possibility of termination of employment in case of a pregnancy. Employees were expected to inform management immediately they got pregnant. The airline considered any failure to do so as breach of contract. Furthermore, all the workers had to sign confidentiality agreements barring them from sharing information with anyone outside Qatar Airways even after the termination of their employment contracts. Although the rules prohibit employees from unionizing, going on strike or sharing information, the increased media attention the Qatar Airlines case receives has continued to encourage many employees to come forward (Grenoble, 2013). Majority of the employees of Qatar airways work for the airline, with over 90 per cent coming from other countries. Breach of any of these rules often results in loss of jobs and possible deportation (ITF, 2013). Company responses The managers of Qatar airways have handled the issue mainly through the media. After the allegations, the company has responded mainly through the issuing of press releases and interviews, depending its position and its handling of its employees. For instance, after the allegations by the ITF, the company defended its position through a press release, saying it in fact hired married staff, and did not restrict employees if they wanted to remain single or get married after they got jobs with the airline. The airline also said its employees did not have to seek permission to get married from the airline. The press release, however, conceded that the airline staff had to inform the company when they got pregnant, but only because these were the rules set by the Qatar civil aviation authority. The press release and interviews had glaring omissions and contradictions. When the company spokesman said they hired married employees and did not require them to ask for permission, they did not specify the gender of the employees they could hire. The press release also did not address the issue of whether or not one had to wait five years before they received permission to marry. After conceding to requiring their female employees to report their pregnancies immediately, the press release contradicted statements made by company CEO in various interviews. The press release said the company often found suitable ground positions for employees who reported pregnancies, but the CEO alluded to the possibility of contract termination, saying employees could not complain after consenting to a contact they signed before getting their jobs. At the time, the press release did not deny allegations that Qatar airways only had limited ground positions to offer, a fact that could mean termination of many pregnant employees (Walker, 2015). Cross cultural business ethics The issue of employee rights and the discrimination of female employees highlights the wider issue of business ethics, and the role of culture in shaping them. While Qatar airways bore the brunt of these accusations, the allegations also implicated several other airlines in the Gulf region (Khatri, 2013). The difference in treatment of men and women points to the traditional prejudices against women in the region. Cross cultural business ethics issues often occur when a business operates in many countries and across different cultures. Majority of the employees of Qatar airlines are from foreign countries. A contrast between operations in the US and Qatar shows a huge difference. The AFPA, an America flight attendant union, gives up to 14 days for disclosure of pregnancy, and later allows employees to fly for up to 28 weeks of the pregnancy, depending on the orders of the doctor (Grenoble, 2013). Culture affects almost every aspect of a business and how it operates. National and regional cultures often influence how executives look at the issue of business ethics (Nejati, Amran, & Shahbudin, 2011). The Qatar airways managers, in response to the accusations levelled at their company, have always, either directly or indirectly, pointed to the issue of cultural differences influencing their points of view. For instance, when the ITF allegations emerged, the chief communications officer responded by saying they would release a response on their own time, citing the time difference between Qatar and the US. Qatar airways has many times in the past defended the anti-unionization rules that govern foreigners. In an interview with Arabian industry, the CEO Mr. Al Baker claimed that the unions were the cause of the jobless problem in the western world, claiming they made companies uncompetitive and inefficient. Finding a sustainable solution The gender bias by the company is clearly a thorny issue that the company must address. They cannot afford to hide behind cultural and ethical relativism in a globalized world and a cross-cultural industry. The company must take actual action, and not just deny allegations. Traditionally, it has been difficult to access information about company proceedings and processes, but the information age is changing everything. People will remember past interviews and communications and access to company details like codes of conduct is now easier. One of the most common points of view in the management world today is that the future of companies depends on the image stakeholders have. The major stakeholders are the employees, shareholders, customers, consumers and members of the local community. Executives should consider the protection of their company reputations to be one of the biggest roles. After the major scandals in the recent years, customers have demonstrated an inclination to companies that make promises and fulfil those (Seretny & Seretny, 2012). The disclosure ethical rule is now one of the guiding principles of many organizations. World business leaders often ask themselves whether the decisions their companies make will embarrass them if they were headline news. This often deters them from making ethically questionable decisions and upholding past practices. Qatar airways has literally failed in this aspect. Conclusion The world continues to change, and the power of the consumer continues to grow. Consumers increasingly favor ethics and sustainability when they make their purchase decisions. Eve in the Middle East with the history of injustices and bias against women, there is evidence of widespread change. The education sector, which once was male dominated, has grown significantly to include women in its ranks. Faced with a changing environment, Qatar airways must change its tune. It must seek to understand the role of synchronization of communications, and breach the gap between the communication managers and the company CEOs. Press releases and interviews alone, though, cannot save the company’s face. It must admit to wrongdoings, even if influenced by culture, and commit itself to a change in policy and management strategy for female employees especially. Admittedly, the unionization situation could be difficult to change because of the wider scope of the law. However, it is within the power of the company to improve the working conditions for pregnant employees, and not place them in the uniquely difficult lose-lose situation of having to choose between not reporting their pregnancies and losing their jobs, or reporting and getting fired anyway. The contract terms against hiring married women and having to ask for permission to get married must also be abolished. The competition in the business world for jobs and positions is tough enough, and many, when making decisions such as these often understand the sacrifices they have to make either for their jobs or families depending on the priorities. It is unfair for the airline to presume to make these choices for them. Qatar airways might be a world beater in service and quality, must it must change how it delivers this quality to its passengers. References Grenoble, R. (2013, September 27). Females At Qatar Airways Must Seek 'Prior Permission' From Company For Marriage, Pregnancy: Report. Retrieved from The Huffington Post: http://www.huffingtonpost.com/2013/09/25/qatar-airways-female-employees-marriage-pregnant_n_3989346.html?ir=India&adsSiteOverride=in ITF. (2013). Qatar Airways inclusion 'disgraces oneworld alliance'. Retrieved from ITF Global: http://www.itfglobal.org/en/news-events/press-releases/2013/october/qatar-airways-inclusion-disgraces-oneworld-alliance/ Khatri, S. S. (2013, September 25). Union: Qatar Airways ‘the worst’ among Gulf carriers for employees’ rights. Retrieved from Doha News: http://dohanews.co/union-qatar-airways-the-worst-among-gulf-carriers/ Nejati, M., Amran, A., & Shahbudin, A. (2011). Attitudes towards business ethics: a cross-cultural comparison of students in Iran and Malaysia. International Journal of Governance and Ethics, 66. QCAA. (2013). Al-Nuaimi: Qatar Airways Membership in OneWorld Alliance to increase benefits and operations . Retrieved may 18, 2015, from http://www.caa.gov.qa/en/al-nuaimi-qatar-airways-membership-oneworld-alliance-increase-benefits-and-operations Seretny, M., & Seretny, A. (2012). Sustainable Marketing -A New Era in the Responsible Marketing Development. Foundations of Management, 63-76. Steiner, J. F., & Steiner, G. A. (2012). Making Ethical Decisions in Business. In J. F. Steiner, & G. A. Steiner, Making Ethical Decisions in Business (pp. 238- 256). New York: McGraw-Hill. Walker, L. (2015, February 18). Qatar Airways CEO: Claims about sexist employment policies ‘not true’. Retrieved from Doha News: http://dohanews.co/qatar-airways-ceo-claims-sexist-employment-policies-not-true/ Read More