South African Airways Case Analysis

Topics: South African Airways, Decision making, Management Pages: 2 (590 words) Published: March 31, 2013
South African airways
Presented by: Hadeir Shahin Khaya Ngqula, the CEO of South African airways is facing a big challenge, which is the striking of SAA ground staff and cabin crews, this action won’t affect only the overall performance of the company and slows down operations, but it will have a negative long term consequences as well, it may affect the company’s reputation, and thus affecting it’s prominence and perceived quality in the mind of the public. The major problem of SAA is the lack of trust, justice, ethics and commitment in the company, as the employees don’t trust there mangers, they believe that the decision making process is not fair, and managers are always violating the accepted norms of morality within the company. Firstly the absences of the authority’s trustworthiness negatively affected the employees, as mangers failed to show employees there capability of taking over the helm specially that executive’s lack aviation background, also employees didn’t perceive the authority to be benevolent or to have integrity, and that was clear when Ngqula decided to cut his management stuff in half to control costs, and suspending four managers for misconduct and failure to prevent wasteful expenditure, at the same time he was criticized by the media for incurring luxury travel expenses, more over his strategy revolved around efficiency, growth and outstanding service, without emphasizing about being helpful, supportive or loyal to his employees apart from any selfish or profit motive, all those factors resulted in the fact that SAA’s employees lack of trust to their managers. Secondly the country’s history over the past years regarding the racial discrimination influenced the companies’ policies which resulted in the feeling of injustice and a biased code of ethics among employees, in addition to, the pay raise issue., Despite of the good performance and the growth of the company, managers...
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