Managing Change and Kuwait Airways

Topics: Change management, Management, Kuwait Pages: 25 (8787 words) Published: October 9, 2010
What is Change?
The word change is the most popular spoken word in today’s world. Many people describe change in relation to different terms and situations. It has been agreed upon by the scholars in different literature that there exists no universal definition of change. It has been many a time expressed in terms such as guises, transformation, metamorphosis, evolution, regeneration and transition (Hughes, 2006). Although to generalize and give a better concept of the term it has been defined by Hughes (2006) as “any alteration in the status quo”.

Many reasons are associated with the changing organizations. Some argue that change in organization occurs in order to have new ways of doing work or organizing work. On the other hand sometimes change occurs so that the processes in which people are utilized can be changed. Significant changes in the organization occur when the organization desires to change its existing strategy on the whole in order to compete in this global economy or in contrast the organization desires to change the nature of its operations. As the organization evolves in the course of various life cycles changes in the said organization also occur. In order to manage the changes occurring in the organization, it is referred to as the change management. A definition given by Mark Hughes (2006) in his book Change Management defines it is “The leadership and direction of the process of organizational transformation – especially with regard to human aspects and overcoming resistance to change” (Hughes, 2006).

As it can be seen from the present global situation change is an inevitable form in the organizations whether they are small or big, operating on a national or international basis. Change does not take into account the kind of organization operating such as restaurant or computer or FMCGs. All these organizations worldwide are evolving as technologies are increasing four fold. Therefore, the leaders of the organizations have to prepare their personnel and processes for change. Leaders in the organization as well as the managers are continually making efforts in order to achieve successful change.

Change in GCC countries
The focus of this research is the change in GCC countries. GCC countries contribute almost one-third to the total GDP as well as three-fourths to government revenues and exports annually. The GCC countries provide for 45% of the world’s oil reserve and possess 17% of world natural gas reserves (Fasano & Iqbal, 2003). But the GCC countries have long being transforming their economies to a diversified base other than oil. These countries had initiated the transformation almost 2 decades ago due to which their standard of living has rose. This increase has had some expenses in the shape of heavy dependence on volatile oil revenues and exponential growth in population (Fasano & Iqbal, 2003). Although GCC countries have always played a helpful and constructive role in the assistance of developing countries, new challenges have emerged for the former countries. The GCC countries confront the challenges regarding the sustainability of increase in non-oil growth, investment in human capital and institutional reforms (Fasano & Iqbal, 2003). Recent changes in the GCC countries have been towards the fiscal consolidation so that the budgets’ vulnerability in terms of oil price volatility can be reduced. Kuwait and Oman are some of the countries that have progressed in separating public expenditure through oil savings and stabilization funds.

The private sector in these countries is expanded by means of institutional reforms and state owned enterprises. This is achieved through reduction in controls and regulations on the investment in private sector, a privatization framework and liberalization of domestic trade and competition. In Kuwait, the privatization law that has been approved by the National Assembly has developed a framework...
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