Organisational Change Management Assignment Submission 11
1.0 Introduction
Due to the increasing pressure from external environment, there is a critical need for organizations to change for business continuity and sustainability (Kotter and Schlesinger, 2008). As a consequence of global financial crisis, Planet Air Travel has proposed a two-fold strategy which includes the merger with Air Nimble and partnership with Proxima Alliance.
However, their proposal was met with mixed reactions by the union; a combination of both approval and anger. The anger may be triggered by several factors such as PAT’s poor leadership style, lack of communication and participation during change and the lack of understanding of the employees’ psychological reactions. Base on the survey by Maurer (1997), it shows that resistance is the main contributor of failure during organizational change. Although resistance is described as a natural occurrence during the change (Coghlanm, 1993), it causes adverse effects to the organization.
This report is to examine PAT’s drivers of change, its nature of change context and possible reactions of their employees during the change process. Recommendations using the Tipping Point Leadership with emphasis on Kirkpatrick’s (2012) three key factors to successful change; empathy, communication and participation are also covered at the end of the report.
2.0 Drivers of Change
2.1 External drivers of change
Economic factors cause by global financial crisis has impacted PAT to incur losses severely. PAT has to improve its financial status with lower expenses for the survival of its business.
Globalisation involves the integration of business operations to compete internationally (Mullins, 2010). Decentralization and the expansion of a larger portfolio through its proposed partnership will improve branding awareness and customer satisfaction.
Competition from various airlines offering less generous terms and conditions of employment will be a tough challenge as it may arouse with several negative reactions
Due to the increasing pressure from external environment, there is a critical need for organizations to change for business continuity and sustainability (Kotter and Schlesinger, 2008). As a consequence of global financial crisis, Planet Air Travel has proposed a two-fold strategy which includes the merger with Air Nimble and partnership with Proxima Alliance.
However, their proposal was met with mixed reactions by the union; a combination of both approval and anger. The anger may be triggered by several factors such as PAT’s poor leadership style, lack of communication and participation during change and the lack of understanding of the employees’ psychological reactions. Base on the survey by Maurer (1997), it shows that resistance is the main contributor of failure during organizational change. Although resistance is described as a natural occurrence during the change (Coghlanm, 1993), it causes adverse effects to the organization.
This report is to examine PAT’s drivers of change, its nature of change context and possible reactions of their employees during the change process. Recommendations using the Tipping Point Leadership with emphasis on Kirkpatrick’s (2012) three key factors to successful change; empathy, communication and participation are also covered at the end of the report.
2.0 Drivers of Change
2.1 External drivers of change
Economic factors cause by global financial crisis has impacted PAT to incur losses severely. PAT has to improve its financial status with lower expenses for the survival of its business.
Globalisation involves the integration of business operations to compete internationally (Mullins, 2010). Decentralization and the expansion of a larger portfolio through its proposed partnership will improve branding awareness and customer satisfaction.
Competition from various airlines offering less generous terms and conditions of employment will be a tough challenge as it may arouse with several negative reactions