Application of Managerial Functions in Emirates Airlines - Research Paper Example

Application of Managerial Functions in Emirates Airlines Introduction Emirates is a leading airline in the United Arab Emirates established in 1985. It is situated in Dubai International Airport in Dubai. As the largest airline in the Middle East, Emirates operates over 2,500 flights in a week (The Emirates Group). It is a subsidiary of the Emirates group, which is fully owned by the government of Dubai and managed by the Investment Corporation of Dubai. Thus, emirates has established a reputable brand name as an incredible leader in the airline industry. They provide far-fetched services making them grow rapidly and increasing their profitability year in, year out. The airline has incredible leaders who have contributed to its success to large extents. This paper analyses the application of the four eminent roles of management in the Emirates airline. Thus, much emphasis is conferred on managerial roles of planning, organizing, leading and controlling as they are evident in Emirates Airline. The first-rate performance recorded Emirates can be attributed to a myriad of factors. However, the most eminent factor imputed to the phenomena growth experienced in Emirates is a stable and competent leadership. This has been perpetuated by the outstanding performance of its management team. Prior to discussing the managerial functions in Emirates, it is important to have an overview of how emirates management is structured. As such, at the helm of the Emirates company is a group of talented and competent executive whose records in their various fields of expertise are unsurpassed. The Chief Executive of Emirates Airlines in called Sheikh Ahmed Bin Saeed Al-Maktoum (The Emirates Group). Under his management, Emirates has recorded outstanding growths from a mere regional airline to an acclaimed international airline that is globally reckoned. Currently, Emirates Airline has more that one hundred aircraft and flies to as many destinations across the world. More often than not, Emirates Airline features amongst the top ten global carriers with regards to revenue and passenger kilometers. For instance, in the year 2010, Emirates ranked the sixth largest airline globally in terms of international passenger carriage. This, among other successes of the airline is attributed to exemplary management undertaken by the Emirates’ management team under Sheik Ahmed. Thus, proper leadership which has been sustained by excellent management has perpetuated the competitive advantage of Emirates airline to large extents. Sheikh Ahmed Bin Saeed Al-Maktoum is regarded as charismatic leader who inspires his subordinates into striving to become more productive in the competitive airlines industry. Moreover, he has been described as an excellent manager who possesses comprehensive decision-making abilities that have promoted the lean management structure established by the Emirates Business Model. He is a renown democratic leader (Thomas). Under his leadership, the management of Emirates has been able to effectively and efficiently ascribe to four basic management functions as stipulated by Henry Fayol. Thus the planning, organizing, leading and controlling functions of management are palpable in Emirates Airline as evidenced in the discussion below. Management delineates a process through which a manager plans, organizes, controls and directs to accomplish objectives by the use of people and other resources (Buchanan and Huczynski 12). As such, the management of Emirates seems to have understood the core aim of understanding as evident in how it achieves incredible success through proper management of its people and resources. Planning is the indeed the primary function of management. This involves the processes through which a manger determines a course of action in order to achieve desired objectives. It is therefore the key to success and prosperity of any organization. According to Robbins and De Cenzo (53), planning acts as a technique through which problems are solved. In addition, it plays a significant role by visualizing the future and equipping management with the readiness to face any impending problems and solve them accordingly. An extensive analysis of Emirates growth and diversification reveals proper planning by management. As such, it is apparent that the revenues of Emirates have always had an annual increased of over $100million since early 1990s (The Emirates Group). Since the year 2000, Emirates management has placed much emphasis on long distance flights. This has made them start operating to new destinations, most of which are non-crop. For example Emirates now operates more non-stop flights which have been added in Argentina, the United Stats and Australia. It has also added up more destinations in South Asia as well as expanded the operations and presence in Asia, Europe and North America. This is only possible through proper planning. Organizing of the other hand incorporates the process of bringing together the necessary resources with the aim of achieving the set objectives and goals. Organizing function of management is two-fold, that is a process, and a structure (Robbins and Timothy 42). As a process, organization involves establishing means and ways through which a business plan is executed. Conversely, organization as a structure refers to the different aspects such as division of work, delegation of authority, and span of control as well as the provision of appropriate mechanism through which coordination of various business activities may be undertaken. In this purview, Emirates has an employee base of over 28,000 employees. Of these, there are bout 10,324 cabin crew, 2,100 flight deck crew and 1850 engineering staff among others (The Emirates Group). In addition, Emirates Airline operates about six subsidiary companies in catering, engineering and tour operations. thus in addition to the existing employees, the company is said to have added more cabin crew, pilots and invested more in airport lounges. Emirates management ensures that these employees are placed into various departments, where they are then allocated specific duties and authorities with the aim of achieving the Company’s goals. Conversely, controlling function of management involves three distinct aspects. First and foremost, it involves the establishment of standards of performance. This is followed by the process of measuring the work in progress and interpreting the results achieved so far. Finally, controlling involves taking corrective measures in case of any discrepancies (Buchanan and Huczynski 116). Basing on business plans, managers exercise effective control so as to ensure successful execution of the business plan. It should however be noted that control function is interlinked with the other managerial functions. The adoption of Emirates Business model is a clear manifestation of controlling function of Emirates management. In this regards, the business model has been the tool behind Emirates success. It is based on a lean workforce and a flat organizational structure which ensures that Emirates Airlines operates at as low overhead cost as possible. This has indeed helped in cutting down operating cost to large extents. In addition, Emirates has partnered with prominent airlines in various alliances such as Star Alliance and Sky Team as another strategy of cutting down operating costs and increasing competitive advantage (Usa 118-19). Conversely, Emirates undertook the move to operate exclusively wide-body flight. This is a strategy which is aimed at lowering unit costs in comparison with other airlines which operate both wide-body and narrow-body flights. The wide-body flights have also enabled Emirates to use the aircraft’s cargo capacity as a means to increasing its revenues and profits as well. All these are measures that the Emirates Airline management has undertaken to ensure proper control in its operations. Leading function of management involves the process of guiding and instructing people so as to ensure that they are carrying out their duties as expected. Thus, leading is a core responsibility of any manager at any level. As such, the role of leading also involves raising the morale and motivation subordinates. This therefore calls for proper communication. Thus, leadership is an essential function in achieving organizational objectives. Basing on its vision of building and maintaining market leadership which looks beyond conventional track, Emirates management has ensures that its leadership is always strived to ensure that it make calculated decisions and embraces innovative ideas. The management of Emirates has ensured that it creates and maintains high standards of business ethics. Besides, Emirates management ensures that it leads its employees towards fulfilling its obligations towards the environment and the society as well. With regards to its mission of maintaining a steady growth rate of 20 percent in the coming years, Emirates management ensures that its employees are geared towards achieving this mission. This has seen Emirates maintain a high growth rate despite the adverse trends that have marred the airline business in the globe. For instance, during the Gulf war, many businesses in the region were adversely affected. According to Noack (45), most international airways stopped or refrained from operating in the Gulf region. However, through proper leadership, Emirates was able to utilize this opportunity which ended up becoming rather lucrative venture. Emirates took advantage of the situation and even increased its passenger and cargo traffic. Even after the end of the Gulf war, Emirates leadership became even more effective so as to handle the stiff competition it was yet to veneer. Conclusion From the foregoing discussion, it can be concluded that the management of Emirates Airlines tends to apply the managerial functions of planning, organizing, leading and controlling in its endevours. This ascertains the notion that for any organization to success, the management of that organization must be fully equipped with both practical as well as theoretical knowledge with regards to the four managerial functions. It is palpable that Emirates’ management undertakes the planning function in dispensing its growth and diversification plan whereby it aims at expanding its operations globally. This is done through ensuring that they have adequate employees to handle the expanding activities. With regards to organizing, Emirates, through its more than 28,000 employees, has ensured that they are structures intro their respective department to which they posses expertise. On the other hand, Emirates undertakes the controlling function through the adoption of Emirates Business Model as well as partnering with other prominent airlines and operation wide-body flights so as to cut on operating costs. Finally, Emirates executes the leading function of management through ensuring that the employees stick to the established mission and vision by dispensing their duties effectively so as to ensure the achievement of the company’s goals of maintaining a steady growth rate of 20 percent and maintaining its position as the market leader. Recommendation However, the fact that the airline industry in the global market is characterized by stiff competition, Emirates Airline should be able to sustain its competitive advantage through being able to sustain and meets to customers’ demands as well as developing customer loyalty. Employee satisfaction should also be bolsters. Thus, Emirates Airlines should regularly update its service deliveries so as to continue meeting the dynamic customer demands. It can be therefore recommended that Emirates Airline management should ensure that it continues to manage the organization in the exemplary way it has been doing so as to maintain its market leadership and uphold its reputation. Works Cited Buchanan, David, and Andrzeg Huczynski. Organizational Behaviour. 7th ed. New Jersey: Prentice Hall, 2010. 23-24. Print. Noack, Sascha. Business Guide: Doing Business in Dubai & the United Arab Emirates. London: Books on Demand, 2009. 45. Print. Robbins, Stephen, and Timothy Judge. Organizational Behavior. 14th ed. New Jersey: Prentice Hall, 2010. 21. Print. Robbins, Stephes, and De Cenzo, David. Fundamentals of Management . 7th ed. New Jersey: Prentice Hall, 2010. 56-59. Print. Usa, Ibp. Doing Business and Investing in United Arab Emirates Guide:World Strategic and Business Information Library. 6th ed. New York: International Business Publications, USA, 2009. The Emirates Group, . "Leadership: Senior Management Team." The Emirates Group. N.p., 13 December 2011. Web. 22 Apr 2012. Read More