Cathay Pacific Management Problems

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  • Topic: Cathay Pacific, Hong Kong, Hong Kong International Airport
  • Pages : 6 (1644 words )
  • Download(s) : 1891
  • Published : December 1, 2009
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Table of Content


Analysis of Problems
Problem 1
People Management Problems
Impacts to organizational performance
Problem 2
People Management Problems
Impacts to organizational performance

Alternative solutions for problem 1
Alternative solutions for problem 2




Background Information
Cathay Pacific Airways Limited, which is managed by the Swire Group, is the largest airline and flag carrier of Hong Kong. The company with over 14,000 staff worldwide now, was founded by 1946. It based at Hong Kong International Airport, and its operations include scheduled passenger and cargo services to over 120 places around the world. ( The union power is strong for Cathay Pacific. According to the history, union actions were taken for different reasons since 1981. ( This union has a norm on having deviant workplace behavior. Problem Encountered

In the following parts, we look deep into two major people management problems about the customer services officers in this company. The first one is about the protest of the reduced size and facilities of new rest room. Another one is about the increasing overtime work.

Problem 1
Over a hundred of Customer services officers refused to work overtime for three consecutive days in order to protest the reduction of the size and facilities of their new rest room. Because of the reduction of hygiene factors, ground crews are more dissatisfied with their job and they are likely to have unionization attempts. People Management Problems

First of all, the ground crews considered that they were not treated fairly as they perceived that the procedures decided by Cathay are unfair. Although the staffs are directly affected by the changing position of the new rest room, they have not been involved in this process of decision-making. Hence, due to the lack of procedural justice, it is considered to be unfair by the crews. Moreover, the reduction of the sizes and facilities of rest room caused an increase in dissatisfaction of the ground staff. In accordance with Herzberg’s Two-Factor theory, satisfaction and dissatisfaction are not opposites but separate constructs. Although Cathay is planning to provide sofa and television in the new rest room, this can only help the staff changes their dissatisfaction to natural. Consequences: Impacts to organizational performance

Because of the reduction of hygiene factors, such as a smaller rest room and fewer facilities, job dissatisfaction was created. Dissatisfied employees are more likely to miss work and reject to work overtime. In this case, the crews refused to work overtime for three consecutive days. And, the normal operation of the company would be affected without enough ground staff to serve customers. Thus, absenteeism will influence Cathay greatly. Finally, the changes made by Cathay Pacific, such as reducing the sizes of the rest room, caused a resistance to change of the staff. For instance, the crews refused to work. Those actions could be treated as an overt and immediate form of resistance to changes. This shows that crews did not accept their change in their condition. Hence, the employees have voiced out their comments to express their dissatisfaction. For example, the staff have gathered over 100 employees to refuse working overtime for three days and planned to continue this act at the peak period, like Christmas, if the management level ignore and do not respond to their action. Problem 2

Many ground crews of Cathay Pacific claimed that their workloads are unacceptable. The problem is becoming more serious since the company is now stopping to hire new crews and requiring them to work on day-offs. Therefore, the staff thought their...
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