Management and Organisational Behaviour
Dr Retha Wiesner
Faculty of Business & Law
University of Southern Queensland
Student name: W. Amal Peiris
Student number: U1031128
Qantas faced the crisis in 2011. However it has commenced in 1990 when it was deregulated the government through privatization. Culture of Qantas remained unchanged and it operated as a government organization. Since Qantas was a government owned organization its cost base was not competitive compared to other Airlines. Qantas responded with low-cost Jetstar and just like Virgin Airways, the latter also moved into international flight paths to provide an alternative to passengers. Since then Qantas set out on a modernization path whilst adapting to the global environment. However its cost base continued to climb. Three unions went on a strike and it resulted in 80,000 passengers being affected, more than 600 flights cancelled and seven aircraft grounded. The impact has been felt at both domestically and internationally. On 29 November 2011, Qantas chief executive Alan Joyce made the decision to ground the airline’s entire fleet. This action stranded 68,000 passengers around the world and locked out Qantas employees in response to the protracted industrial dispute. Since parties have failed to resolve the dispute within 21 days, went through a binding arbitration. As consequences to the Qantas crisis the main challenges are to rebuilding of trust, restoring good working relationships and rescuing Qantas’ reputation with its staff, customers, the government and other stakeholders.
CRITICAL DISCUSSION ON THE POWER ISSUES EVIDENT FROM THE CASE Power could be define as,
* the ability to mobilize resources (human and machine) to get things done. * a resource, not an act. It is an ability, a capacity, a potential; and it does not have to be used. * something which is positive in terms of its output.
* conception of power which sees it as the means whereby common objectives are achieved. * a resource which can be expanded and shared to the mutual benefit of all parties. Power over refers to the ability of one party to impose its will on another.
Power is an essential managerial resource. It is demonstrated by the ability to get someone else to do what you want you to do. However, if power holders manipulate and impose such power on someone else to achieve individual objectives rather than common objective, a power issue is arose.
Bases of Power
Bases of Power refer to what power-holders control that allows them to manipulate the behavior of others. These are:
Position power, including:
● Reward power - power based on the distribution of rewards that others view as valuable. ● Coercive power - power that is based on fear.
● Legitimate power and formal authority - the power a person receives as a result of his or her position in the formal hierarchy of an organization, including process and information power.
Personal power including:
● Expert power - influence wielded as a result of expertise, special skill, or knowledge. ● Referent power - identification with a person who has desirable resources or personal traits, the power of being likable.
As the CEO of Qantas, Alan Joyce possesses the legitimate power and formal authority.
In the given case it’s evident that Alan Joyce has used his power base in several circumstances, those have been critically analyzed bellow;
The fleet grounding
CEO announced the immediate—and unprecedented grounding of all Australian domestic and international Qantas flights as a result of the proposed lock-out of the airline's staff in response to continued industrial action against the company. This resulted grounding of 108 planes at 22 airports, domestically and internationally. Further it was estimated to cost $20 million a day. This can been seen as a action taken...
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