Organisational Theory & Change – Qantas Airways
Assesment Task #3 - Group
Samanta Chor 42429145,Lydia Tat Wa 41758528, So yeon Lee 41323521 & Sieu Kiet Huynh 42429072 ABSTRACT
This report draws upon the main challenges that Qantas Airways’ is facing as well as the use of the star model for diagnosis concerning the different types of change required. Improving Communication is the focus of our report and by evaluating ‘John Kotter’s 8 step Change Model’. We propose that through communication; the organisation can change from one that is in scrutiny of misunderstandings between employees and manager to one that shares the same views and values organisation wide.
Found in 1920, Qantas Airways is one of the world’s leading Australian airline that has the second longest track record in commercial aviation. Qantas Airways flies to 145 destinations in 37 countries and operates over 910 international flights a week. The company has established an outstanding reputation for excellence in safety, operational reliability, engineering and customer service. Qantas Airways has also won the Best Airline based in Australasia and Pacific of the Year Awards in 2006. Additionally, Qantas Airways is the only airline that builds and fly’s their own aircrafts (Queensland Government, 2011). Furthermore Qantas Airway’s website is Australia’s largest and most popular travel site of the industry that offers wide availability and easy customer access. The website is also responsible for a significant proportion of Qantas Airway’s business such as bookings, frequent flier redemptions, and airport and flight information. 2. INTRODUCTION
Qantas Airways has proposed “The new spirit strategy” 5 years strategic plan that focuses on; “opening gateways to the world, growing with Asia, being best for global travellers, building a strong and building a strong, viable business.” Discussions will be centred on the objective of “building a strong, viable business”. The most recent changes in Qantas Airways has left many stakeholders questioning the sustainability and profitability of the organization. In attempting to expand, Qantas has launched ‘Jetstar japan’ in partnership with Mitsubitshi, which will provide domestic services in Japan as well as international flights (Jetstar, 2011). The introduction of Jetstar in Qantas Airways has instigated Qantas to pursue pay cuts (Oxenbridge et al. 2010). Qantas is facing a turbulent phase, whereby issues of reputation, drop in share prices, aircraft failures and employees resistance are brought into light (O’Sullivan, 2011). Thus, due to the challenges, Qantas needs to focus on aligning business strategy with the needs of employees to sustain long-term success. This will be cultivated through the improvement of communication and teamwork skills to engage employees in the change process. This ultimately supports the need to build a stronger organisation. 3.DIAGNOSIS
Strategy is a set of procedures to guide an organization on how they operate and determines the organisations direction through goals, objectives, values and or missions (Galbraith, 2002). Strategy is a powerful tool used by managers to cope with the conditions of change, which surrounds businesses. Qantas Airways has a long-term vision to “operate the world’s best premium airline and the world’s best low fare carrier” (Fact files, 2010). There are 5 factors that contribute to meeting their vision, that are focused on having; safety as their first priority, right aircrafts and right routes, excellence in customer service, operational efficiency and maintaining a strong stance for the two brands. Furthermore, through their two-brand strategy, Qantas airways are able to reach into both end of the consumer airlines industry. Whereby, Qantas is the premium/corporate carrier and Jetstar (established in 2004) as the low-budget carrier (Data Monitor, 2011). This strategy potentially leads Qantas Airways to yield strength...
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