The Difficulties Being Faced by Air China - Case Study Example

Executive Summary The report analyzes the difficulties being faced by Air China due to the use of traditional techniques of communication which has increased the level of dissatisfaction among customers. This requires that Air China develop a process of change after analyzing both the internal and external factors for change so that a proper change management strategy to deal with the change can be identified. Air China with this aspect in mind needs to use new and improved technology and communicate the process of change to all its employees by developing a process of communication which will ensure better services. The use of different change management techniques also strengthen the use of different methods for change and needs to provide the required training so that employees are better placed and are able to accept and deal with the changes. This will thereby help to improve the overall level of service for Air China and will help to improve the satisfaction level for all customers. Table of Contents Introduction 3 Background Information 3 Analysis of Change 4 General Observation 4 Analysis for Change Driver 4 Analysis for Change Perspective 6 Barriers to Organizational Change 7 Role of Leader & technique for Organizational Change 8 Alternative Change Intervention Strategy 10 Recommend Change Perspective 10 Conclusion 11 Recommendations 11 References 13 Appendix 14 Introduction The increasing complexities which Air China is recently facing due to the use of traditional process of communication has made it imperative that a change process is developed. The process of change will ensure that the resources are used in the most effective manner and will develop the required parameters based on which quality performance can be ascertained. The report looks to evaluate one of the issues which Air China is facing. It then looks to examine the internal and external drivers for change. This is being followed by the different reasons for change, the barriers which Air China has to deal with while looking for change, the different organization theory of change and the change process through which Air China will be able to bring the transformation in their style of working. This will thereby help to understand the entire process of change that has to be undertaken and will develop a framework through which better performance can be delivered. Background Information Air China which operates in China works in the airline industry and is witnessing a dip in service standards due to use of traditional method of communication. Since, there is a lack of communication between the top management and the lower level executives due to use of traditional methods has affected the degree of service. This calls for an urgent need to develop a process which will look towards developing a process through which the change can be implemented for Air China. This will thereby help to ensure that a process is developed through which the use of resources will improve and the organization will be able to transform the manner of carrying out activities. Change Analysis This section will evaluate the entire reason for changes, the barriers to changes and the importance of changes which has forced Air China to make amendments in their style of working so that overall productivity improves. General Observation Organizational change is a process which results in a change in business strategy, process or technology so that business better effectiveness can be achieved and the resources of the business can be used is a productive manner. Change intervention on the other hand aims towards removing the different techniques which has been shown below. Air China by analyzing the internal and external reasons need to facilitate the process of change so that better decisions can be taken. Air China to ensure that changes needs to understand the different benefits which the organization will witness and based on it needs to transform the business so that better services can be provided. Analysis of Change Drivers The different internal and external factors which has created the need for bringing about a change in the style of Air China is as under Resource Management: Air China uses traditional method of communication which has resulted in improper communication between the top management and lower level executives. This has thereby affected the process of communication between the organization and the customers. Since, the organization have demonstrated an indifferent attitude and haven’t transformed their style of working it has become imperative that the organization focuses and adopts new method of communication so that better service standards can be established (Baca, 2005) Rational Perspective: The analysis also shows lack of flexibility on the part of the top management to change with the evolving external environment. The fact that other competitors have adopted new and better method of communication it is imperative that Air China should have worked on the same ground. This requires that Air China adopts a flexible approach and develops a process of change so that the resources can be used in a better manner and the productivity and service standard improves (Huntoon, 2008) System Perspective: The situation also unfolds as one where the management is ignorant and doesn’t have the knowledge regarding the development of technology which has taken place. Using the same old and traditional methods have impacted the decision level and require urgent adoption of new technology and training so that better service standards can be delivered (Huntoon, 2008). This will help to bring the change in service standard and will ensure easy adoption of new technology. Cultural Perspective: The situation also highlights the lack of willingness to change with the business scenarios. The fact that Air China didn’t look to deal with the changes when it was required has pushed the organization backwards and requires an urgent need to fix the issue (Tiong, 2010). Air China by being willing to change could have brought about the transformation in the working style so that better service standards are established Analysis for Change Perspective The different rationale which have been identified based on the internal and external drivers for change will help to achieve the following It will help to improve the manner in which communication takes place as better technology will ensure that communication becomes effective. This will help to develop both a formal and informal chain through which communication takes place and will help to ensure that the use of the resources becomes better. It will ensure that the degree of customer satisfaction increases as the interaction between the organization and the customer will ensure that the organization is able to deliver service standards based on the needs and requirements of the customers. This will also help to ensure that productivity increases and customers will be satisfied (Pinto &Kharbanda, 2005) The use of new technology will ensure that more authority and responsibility can be passed on to the employees. This will help the employees to take decisions by themselves and will ensure that the employees are able to act in a positive manner. This will thereby help to understand the customers better and the employees can provide services based on the needs and wants of the customers. It will help to deal with competition in a better manner as Air China will be better placed. This will improve the productivity of the organization and ensure that a mechanism is developed through which the resources can be used in the best manner. This will have a long term impact on the business as it will help to develop a framework through which the goals of the business can be achieved (Mallak, Kurstedt Jr. and Patzak, 2007) Barriers to Organizational Change Air China has to deal with different barriers so that the process of change can be implemented and being able to deal with the different barriers will provide a framework for brining a change in the manner in which activities are carried out Lack of willingness to change on the part of both the management and the employees as adopting the new method will require a lot of changes in the manner business is done. This will require that the employees and the management undergo the required training so that they are willing to accept the change and bring a transformation of carrying out activities (CII Project Change Management Research Team. 2004) The increased investment both in terms of money and time is another obstacle in the path of Air China. Since, it cannot be guaranteed that the new process or system will provide the required benefit so that the returns are not guaranteed. This increases the risk for Air China as accepting the change becomes difficult The risk of losing the jobs is another hurdle for the employees as employees might not be willing to leave the job. Adopting the new technology would require major changes on the part of the employees and since the fear of job loss looms for the employees is one of the hurdle for the management to implement the process of change. The time which will be required to undergo the process of change might be high which would thereby not provide the same benefit as desired. The fear that the return doesn’t matches the risk would increase the risk for the business and would thereby raise doubts and objection on the part of management to implement the new technology (Cadle & Yeates, 2008) Role of Leader & Techniques for Organizational Change Air China has to look towards using one of the theories of organizational change as it will help to improve the effectiveness and is as Lewin’s Force Field Theory of Change: The theory states organization during their functioning will be able to find out different process, techniques and developments which have to take place for effective process of change. To garner maximum advantage from change the resistance has to be reduced so that better strategies can be implemented (Chapman & Ward 2007). This makes it imperative that Air China looks at the positive side and develops a process which facilitates a process of change as it will help them to understand the manner in which business will gain over a longer period of time Kotter 8 Step Change Model: This model states that organization looking to transform the business has to create the need and urgency to develop a process within the organization. This will require that the employees and others within the organization understand the benefit of change and bring the required transformation so that better results can be achieved (Chapman & Ward 2007). This will help to instigate a process through which the organization will be able to understand the different directions they have to work on so that effectiveness in the use of resources can be used. Air China through the process will be able to improve the brand image and will be able to ensure that employees accept change and use the different resources in the best possible manner. This will help to increase the level of satisfaction for the customers and ensure better opportunities of growth in the future (Galpin, 2006) This can be achieved by ensuring that leaders look towards developing the process of change. Leaders will have to take the additional role and burden of transferring the style of business. Leader will have to ensure that the different people associated with the organization understand the manner in which change strategy will be done and should ensure that employees don’t resist change. Leader will help to develop a team which will look to convince people and ensure that the use of resources improves. Alternative Change Intervention Strategy Air China has to look towards implementing the following so that changes can be done Development of Communication Channel: Air China has to adopt the new technology and replace the traditional method so that information can be passed quickly (Ibbs, Lee and Li, 2008). This will help to develop both a formal and informal process of communication and will ensure that efficiency in decision making is achieved. Development of Critical Thinking Process: This will require passing of additional authority to the employees so that they are able to take different decisions at their own level. This will reduce the level of dependence on the top management and will help to develop a process through which the needs and requirements of the customers can be better satisfied (Andersen, Grude & Haug, 2004) Develop a code of ethical practices: Air China has to develop a code of practices which will ensure that employees undergo the process of change through the required training. This will require proper monitoring and will require both on and off the job training so that a process is developed which will help to contribute positively towards the goal of the business (Yardley, 2002). This will thereby motivate the workforce and improve the degree of contribution from the employees Recommend Change Perspective Air China to achieve the required transformation has to first convince the employees and the management regarding the manner in which the process of change will benefit them. This has to be matched by the fact that the stakeholder also understands the different benefits which will accrue to them and the manner in which effectiveness will be achieved. This will help to develop a clear process and facilitate change (Burke, 2003). This has to be matched by the fact that proper training needs to be provided both on and off the job so that the skills of the employees gets shaped up and is able to create a positive signal within the organization. In addition to it the organization has to further look at hiring the services of a specialist so that they are able to guide the management and ensure better effectiveness. The process will thereby help to ensure that the use of resources improves and the organization is able to deliver better services to its customers. Recommendations Air need needs to improve the communication process by use of modern technology so that service quality improves and the organization is able to provide the required services which will maximize customer satisfaction Air China has to develop a code of practices which will ensure that employees undergo the process of change through the required training so that skills gets shaped up. Conclusion Air China thereby needs to understand the importance of the situation and needs to develop ways and process through which changes can be implemented. This will require the adoption of new technology and method and ensuring that the employees and the management are willing to accept change. This has to be matched by the fact that both off and on the job training needs to be provided and a process of change needs to be developed which will foster an environment of development and better use of resources References Andersen, E.S., Grude, K. V. & Haug, T. 2004. Goal directed project management: effective techniques and strategies (3rd ed.). London: Konan Page. Burke, R. 2003. Project management: planning and control techniques. Chichester: John Wiley & Sons. Baca, C. 2005. Project Manager’s Spotlight on Change Management. Alameda: Sybex. Cadle, J., & Yeates, D. 2008. Project Management for Information Systems. Harlow: Person Education Limited. Chapman C. & Ward S. 2007. Project risk management: processes, techniques and insights. John Wiley & Sons, Chichester. CII Project Change Management Research Team. 2004. Project change management, Construction Industry Institute, Austin, Tex. Huntoon, C. 2008. Managing change. Proj. Mgmt. Journal., 29 (3), 5–6. Ibbs, C. W., Lee, S., and Li, M. 2008. Fast-tracking’s impact on project change. Proj. Mgmt. Journal, 29(4), 35–41. Galpin, T. 2006. Connecting Culture to Organizational Change, HRMagazine. 85 – 90 Mallak, L., Kurstedt Jr., H., and Patzak, G. 2007. Planning for crises in project management. Proj. Mgmt. Journal, 28(2), 14–20 Pinto, J., and Kharbanda, O. 2005. Project management and conflict resolution. Proj. Mgmt. Journal, 26 (4), 45–54. Tiong, R. 2010. Effective controls for large scale construction projects. Proj. Mgmt. Journal., 11(1), 32–42 Yardley, D. 2002. Successful ITproject delivery -learning the lessons of project failure. London: Addison-Wesley Appendix 1. Please tell me about a situation in your work / workplace that involved or required some form of change. Air China still uses traditional method of communication which has delayed the entire operations and its competitors have overtaken it. The time has come for Air China to undergo changes and adopt new technology so that better changes can be ascertained within the organization. 2. Why did this situation come about? The need of the situation has arisen because of intensifying completion both from the domestic and international players. This has been aided by an increase in demand from the customers who are looking for additional service and are difficult to retain. The fact that customer turnover is high and customer switches to a new airline due to better services is an area which has highlighted the need for change 3. What was the change all about? The change is all about improving the quality of service through better communication so that the needs and requirements of the customers can be better identified. Using new technology will also help to use the resources effectively and will create the required scope to provide better services. 4. Why was it necessary to deal with the change situation? It is imperative to deal with the change situation as the time has come where we need to undergo the change. This will help to strengthen our position in the industry and will help to develop a framework through which better services can be delivered. 5. How did you (or others) deal with the change? What did you do? To deal with the changes it is important that the employees realize the importance of change. This will require that employees remain motivated and don’t object to the changes. In addition to it the required training has to be provided to the concerned employees so that better use of resources becomes possible 6. What was the outcome of your actions? The change will help to strengthen our position in the industry and ensure better customer services. This will also improve the use of resources and will act as a medium through which overall growth becomes possible 7. In your view, was the actions you have taken (the change intervention) successful? Why do you say this? The actions have been successful and it has helped to bring the required changes in the style of working which will help to provide rewards over a longer period of time. Read More