Jetstar Airline Australia - Managing Organisational Change - Case Study Example

Change Management Plan 1. Company Details: Company Name: Jetstar Airline Australia Company Address: Melbourne Australia Project Phase: Planning Phase Key Stakeholder Endorsement: The following key stakeholders will have to endorse the change and append their signatures to confirm: a) Chief Executive Officer b) Chief Financial Officer c) Chairman of the Board of Directors d) Government Representative in the board e) Company attorney Change Project Team: The team will be comprised of the above listed stakeholders, and heads of all departments. 2. Change Identification Type of change: Developmental Change Reason for change: In the past three years, Jetstar has experienced a tremendous increase in customers. This can be attributed to several changes that have been made in the past. With the increasing number of customers in the airline industry, competition is ever rising. The main reason for this change is to take advantage of the rising number on customers, and gain a competitive edge over industry competition. Change Scope: The changes are intended to help the company move to a level where it will be able to win over most of the new consumers in the industry. This means that the company must first of all gain a competitive edge over other market players. The change will take place gradually, since it covers a wide scope. It will cover the marketing department, human resource departments, and flight departments. Marketing Department- This is the sector that is responsible for all tasks that will create new leads and attract more customers. A strong marketing department will ensure that the company is able to understand what the market wants. It will understand the strengths and weaknesses of other key players in the market, and develop a counter attack strategy that will help Jetstar to dominate the industry. Human Resource Department- Such management change must be accompanied by a move to enhance the human resource department. Human resource is necessary for effective service delivery. Change will not just happen, there must be people to execute it; human resource. Flights Department- Since Jetstar is a flights company, it will be necessary to institute key changes in the flights departments to ensure that customers receive the best services. Current Status: Jet star is a fully owned subsidiary of the Qantas Airways. It was raised to counter the low cost strategy that Virgin Blue had started in the airline market. In this sense, Jetstar concentrates on offering low-cost flights to the airline market. It serves a number of both local and international markets. It mainly operates from Melbourne airport in Australia. It was the first airline to allow customers to choose seats when booking for their flights. Currently, Jetstar serves a wide base of clients. There has been an increase in demand for low cost international and domestic flights in the recent days. Jetstar is not able to meet most of this demand. As a result, it is losing these customers to Virgin airline. If the situation is not rectified, the company will lose its reputation and consequently, business. Future Status: This change is expected to engineer new developmental changes that will help Jetstar take over the airline industry in Australia. This means that the company should develop a string and unique edge over other players in the industry so that it will be able to win over most of the market. It is expected that the company will be able to increase its revenues by 25% in the second quarter, after implementing these changes. It should also be able to serve more routes, and win over more than 40% of the airline industry in the Asian world. 3. Change Specifications Change Tactic: The change tactic will involve developing new packages that will attract customers, and marketing them heavily. New departments will also be created to promote job specialization. New employees will be recruited, and headhunting will be conducted from competing companies in the industry. Process Change: This management change is very wide. The process will hence be slow. Transformational leadership will be useful in the whole process. The first step will be to help employees’ stakeholders of the company understand why the change is necessary. After that, each group in the company will be assigned with specific step by step goals and tasks that will lead the company in achieving the new changes. The change will hence be spread over a period of time; it will not be instantaneous. People Change: This section will involve conducting further recruitments to increase number of staff. Several training sessions will also be conducted to equip staff members with the right skills to run the company. New departments may also be created and job specialization will be preferred. Information Sharing: The IT department will create a company intranet for effective sharing of information within the company. A new Facebook page and twitter account will be opened in an attempt to steer the management change. Intranet will mostly be used to share official information, but the social sites will be useful for brainstorming and sharing of varied ideas that may arise with time. Cost of Change: Rebranding--------------------------------------------------- $ 2,000,000 Acquisition of 4 new aircrafts----------------------------- $ 760 Million Recruitment of 50 new staff-------------------------------- $ 200,000 Recruitment of 3 top level management staff------------ $ 60,000 Training cost 3 day seminar for marketing department---------------- $ 70,000 1 day outsourced customer relations training----------- $ 12,000 Management training--------------------------------------- $ 50,000 Advertising and marketing cost--------------------------- $ 600,000 CSR cost------------------------------------------------------ $ 250,000 Total Cost---------------------------------------------------- $ 763,242,000 Risk Assessment: A SWOT analysis will be conducted by the strategic management team to determine the current strengths and weaknesses of the company. The marketing department will also be required to conduct a competitor analysis as well as the porter’s five forces. 4. Change Methodology Stakeholder Analysis: Stakeholders will conduct a meeting to be briefed about the changes that are about to take place. They will be required to give their views about the whole plan, and to make commitments of how they are willing to support the company. 5. Implementation Strategies Action Plan: Department Action Resources Required Who will take action Date of Action Recommendations Strategic Management Assign tasks to specific individuals in departments None Strategic Management team 8th Aug, 2014 None Flights department Produce a list of staff required, and skills that they wish to learn None Assistant head of flights department 12th Aug, 2014 Other members of the departments should take part in listing the skills that they wish to learn Marketing Department Produce a list of skills that they wish to learn, and an estimated marketing budget for the changes Marketing supervisor 12th Aug, 2014 None Human Resource Department Compile a list of total staff members that each department needs. They will also provide suggestions to human resource Human resource manager 21st Aug, 2014 None Finance Department Check the requirements of each department and confirm that they are within the budget of the company Finance Officers 1st Sept, 2014 Schedule Details: The action plan will have to be implemented before details are scheduled. This is a preliminary stage. The company is still planning for the change. The details that have already been scheduled in action plan, and training plan have to be accomplished before another milestone is set. Communication Plan: Communication is an important part of every business [Est12]. Communication is required for effective coordination and team work in the company [Sch10]. It is also necessary so that employees can know what to do, and at what time they should do it. Communication to the customers is also very important. They will not know of the changes that have taken place if communication is not made to them. This plan will hence require a communication plan to the employees and to the customers. Communication to Employees Audience: The audience has already ben identified as the company’s employees. Key Message: The main messages been conveyed will be that the company is undergoing a strategic change, and that all employees are required to participate. They will be informed that their efforts are required for a successful transition to take place as the company undergoes a management change. Other Messages: The employees will also been informed of other messages that may arise as the process continues. These will include what each one of them is supposed to do in their respective departments. Means of Communication: Employees will receive communication through the following: Company notice boards Intranet Email Heads of departments Communication to Customers Target Audience: The target audience will be all people who use air as a means of transport, and everyone who plans to do so in future. Key Message: The main message that will be passed will be that the company has undergone through some changes that are aimed at improving service delivery to customers. The message should be able to convince the customers that Jetstar is now the best airline company in Australia. Customers should be attracted to using he company’s services and confirm for themselves. Means of Communication: The following means will be used to reach customers: Billboards News papers TV commercials Radio adverts Internet Campaign Training Plan: Training is an essential part of management change [Est12]. Success does not dwell where there is lack of knowledge. Training will take place in different levels as the changes occur. The following trainings will be conducted: 3 day seminar for marketing department 1 day outsourced customer relations training Management training These will only be conducted to set the company on the way to the expected change. As different phases of the management change will be implemented, more training sessions will also be conducted. Training is a continuous process, and it will continue throughout the lifetime of the company. It will continue even when the change will have taken over completely. Resistance Plan: History indicates that employees do not always accept all changes that may be brought into their company [Woo101]. Some fear that their jobs may be lost in the process of the change, while others simply love the old way of doing things [Sch10]. It is expected that some form of resistance may be experienced during the process of the management change in Jetstart company. The best way to handle this will be to prepare employees psychologically. Employees will go through various sessions of motivational speaking to set them into the right mood for a change. They will be helped to understand why the change is important to the company, and to their careers. They will then be taken through relevant trainings so that none of them will fear that they may lose their job positions because of the change. Employees will also be involved in the change. They will be assigned responsibility over different tasks in the company. This will make them feel valued and important in the company [Sch10]. They will also be motivated to prove that they can produce good results when given responsibilities. As part of the plan to motivate employees for the change, it may be necessary to give them some incentives at work. Bibliography Est12: , (Cameron & Green, 2012, p. 336), Sch10: , (Schultz & Ellen, 2010, p. 177), Est12: , (Cameron & Green, 2012, p. 342), Woo101: , (Woods, 2010, p. 24), Sch10: , (Schultz & Ellen, 2010, p. 176), Sch10: , (Schultz & Ellen, 2010, p. 179), Read More