In the new era organizations and business exist in the competitive environment where rapid success leads to high failure rates and different challenges to stand up against strong competitive survivors. Different trends and turbulence in the economic condition and business field led many companies to face bankruptcy; however this is not the case with many other businesses which due to hard work and great leadership had great success. The main aim of these prosperous business was to increase in the market place their market share and maximum their competitive advantage.
The combination of conceptual and contributory knowledge is necessary for these aims to be accomplished. In fact, every prosperous and successful business needs people who are competent and have the knowledge of leadership.
In any organization competent and experienced people play a very important role for the effective changes to take place. Carefully designed policies, procedures and campaigns are needed for business success or failure. Effective and efficient plans are important for the changes to take place.
The changing process will need a person or a group who can stand and builds the strong enthusiasm about the change. In any organization changes need to be implemented in step by step fashion in order to successes. However for these changes to be effective all the members of the organization need to be involved and agreed to the proposed changes. This helps in creating a corporation within the organization which helps to create a change and improve the company. This is also important for the strategic planning of the business.
For the change to be effective a transition management team should be created which includes change leader for every department. Resources are needed for these changes to take place and regular meetings should be held. For effective change an assessment of the aesthetic appeal is important. The plan should be concise and clear with clearly defined goals and objectives. The decision makers should always be informed and involved in the within the organization.
The nature of the changes should be effectively defined as this helps the staff members to completely understand the core objectives.
.
Leadership Theory
Leadership is actually ''a process of social influence for the accomplishment of a common task in which one person enlist the aid and support of others''.
Alan Keith of Genentech states that, "Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen."
According to Ken "SKC" Ogbonnia, "effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals."
All above leadership definition and scholars' views about leadership interpret that leadership is a unique quality which works in uniting different people on the same point and plate form to win the certain goals and objects. Different theories including power, vision and values, behaviour traits, charisma and situational interaction, intelligence were evolved by the students of leadership.
For centuries the search for the characteristics of leaders has been in progress. The early detection of significance of the leadership was the basis of this search and the theory that leadership is embedded in the characteristics that few individual seize.
This thought that leadership is based on individual characteristics is called ''Trait Theory of Leadership''
This view subjugated experimental and theoretical work in leadership for centuries. Between 1940-1950 reviews of these studies provoked researchers to consider different view for the definition of leadership.
There are various models for the theories of leadership.
MODEL 1
Three effective styles of leadership are present in this model:
Authoritarian leadership style: This style gives the criteria of leadership style in which the working environment is managed by the leader using the strong directives, instructions and controlling actions by enforcing the rules.
Democratic leadership style: It is very important style through which leaders take such actions which are collective, interactive and responsive.
Different perspectives encourages decision making
Consultative: Before decisions are taken the process of consultation is applied
Persuasive: Decisions are taken by the leaders and others are persuaded that these decisions are correct.
This type of leadership leads to:
Motivation and involvement
Workers feel ownership of the firm and its ideas
Improves the sharing of ideas and experiences within the business
Can delay decision making
Laissez-faire leadership style: The essence of this style is let the things be done by the followers as they want it. No guidance or framework to accomplish the task and to perform actions is provided to the followers by the leaders who give full liberty to the followers.
This theory leads to:
Let it be' attitude.
Leads to creative ideas.
Highly motivational.
Time-consuming.
Lacks overall direction.
Relies on good team work.
Relies on good interpersonal relations.
MODEL 2
This model bears the great characteristics, the task versus interpersonal.
Interpersonal-Oriented Style of Leadership
This style has certain characteristics of leadership as stated by Clark, Donald, 2005.
In this style of leadership the leaders have the opportunity to ask the followers for suggestions and opinions and also to motivate them.
Ample priority is given by the leaders to the ideas, feelings and thought of the followers
Free communication liberties are given by the leaders.
They do not have much oral communication but good listening skills
Task- Oriented Style of Leadership
The task oriented style of leadership has certain characteristics according to YUKL.G, 2002,
The leaders distribute information in this type of leadership.
The ideas, feelings and thoughts of others are of no importance to the leaders.
Rigid sort of communication is practiced.
Demands are made in relation to the performance by the leaders.
Written communication works in this style of leadership.
Model 3
For extensive management decisions and for updating the business this model have four leadership theories that are acted upon by the organization.
Michigan leadership studies.
McGregor's theory X & Y
Blake and Macanese's leadership study.
Ohio state leadership.
While the other division of the leadership theories are:
Personality Trait Theories: According to this theory, there are some personality traits which leaders possess in comparison to non-leaders
Behavior theories: This theory explains the behavior characteristics of the leaders.
Contingency Theories deals with leadership in different situations
Trait Theory:
According to the early researches believe the leaders were born with certain unique qualities and characteristics. They believed that for effective leadership a person must possess certain exceptional personality traits. One of the most acceptable theories is "Great Person" which highlights that leaders are not born but a person can acquire by learning and experiences the desired qualities of leadership.
Researchers also tried to study the relationship between physical traits and leadership, but were unsuccessful to establish a valid relationship.
Behaviour Theory
Behavioral theory emphasis that great leaders are created and not born. They possess extraordinary aspect that qualifies them to accomplish effective leadership skills. It comprise of the following theories:
The Ohio State studies
Universities of Michigan studies
The Managerial Grid
Scandinavian studies
The Ohio State Study:
Ohio State University researchers in 1945 conducted studies on leadership in various fields. The questionnaire called 'Leader Behavior Description Questionnaire' was used in the research. The research was further narrowed down to two independent extents along which the leadership behavior of an individual could be studied.
Initiating Structure
This structure involves individual ability to outline his work as well as the work of the subordinates and to complete the task in time. Leaders in these dimensions maintain a high level of performance by putting pressure on the subordinates and so they score high.
Consideration
In this dimension the leader cares for his subordinates, establishes work relationship, and respects their feelings and ideas which in turn lead to mutual respect and trust.
The studies discovered that the people who scored high on both the dimensions
were able to accomplish greater performance as well as job satisfaction.
University of Michigan studies
A research on twelve pairs of section comprising of one high producing segment and one low producing segment was conducted at the University of Michigan at the Survey Research Centre. The following outcome was observed based on the interviews of 24 supervisors and 400 workers during the study by the researchers.
Employee-oriented dimension
Production-oriented dimension
It was concluded by the researchers that higher job satisfaction and greater productivity was noted under the management of leaders with an inclination towards employee-oriented dimension.
The Managerial Grid by Robert R.Blake and Jane S.Mouton.
FIVE basic styles that illustrate workplace behaviour and the resulting relationship are very elegantly described in a very simple framework of Managerial Grid graph below. This managerial grid style is based on how two essential concerns i.e. concern for the results and concern for the people are exhibited at variable levels whenever people interact.
LeadershipGrid.jpg
Based on the concern for people and production the concept differentiates five different leadership styles:
Team Management style (High Production / High People).(9:9)
Explanation: Motivation is high and the manager pays high concern to both production and people, therefore called the Ultimate.
Features: Manager in this style inspires commitment and teamwork among the employees making them feel part of the company and encouraging them in understanding company aim and purpose and outlining the production needs.
Outcome: Based on trust and respect a team environment is created which results in increased production due to motivation and job satisfaction.
Middle-of-the-road style (Medium Production / Medium People). (5:5)
Explanation: attempts are made by the manager to bring stability between the wishes of workers and the companies challenging goals.
Features: Trusting to achieve adequate performance, the manager gives some concern to both production and people.
Outcome: Neither the need of the people nor of the production is fully met.
Produce or Perish style or Authoritarian style (High Production / Low People) (9:1)
Explanation: In this style the leader has an authoritative or compliance type of attitude.
Features: The manger is mainly task-oriented autocratic type of person with little concern for the people and high concern for the production. Profoundly task-oriented leaders are very strict about the schedules. They are biased of what they find or see as a conflict to them evens it might be just a creative idea for someone. They treat their employees as salves to whom they pay with money and expect them to perform with their best, they find their needs unimportant. They pressurize the employees through rules and regulation and punish them to achieve the company's goal and objectives. There is either no allowance or little for cooperation or collaboration.
Outcome: This type of attitude leads to loss through inevitable high labour turnover although high production can be achieved in short time.
Country Club style (Low Production / High People)(1:9)
Explanation: In this style the leaders have one-sided thoughtful consideration to the employee's needs.
Features: In this type of style the manager has a relationship oriented attitude and therefore worries a little about the production but keeps high concern for the people. He pays much consideration to the comfort and security of the employees and believes that this will surge performance and thus enhance production. He is almost incompetent of hiring the more disciplinary, powerful and authentic people and this is because of believe that such step will endanger his relationship with the existing members of the team.
Outcome: A not very productive but a friendly atmosphere.
Impoverished style (Low Production / Low People) (1:1)
Explanation: Disappear and delegate style of management which is basically a lazy approach.
Features: Manager's main fear is not to be accountable for any mistakes and therefore avoids getting into trouble. He shows low concern for both production and people.
Outcome: Lack of effective leadership leads to disharmony, ineffectiveness, and dissatisfaction.
Organizational Change Management
Change management is defined as, to prepare, commence, recognize, organize, and stabilize change processes on both, corporate and personal level
There are two types of changes:
1. Organizational Change: It is more steady and evolutionary approach and is based on the hypothesis that it is possible to ally company objectives with the individual employee's objectives. This is rarely possible in actual practice
2. Reengineering Change: Known as business transformation or corporate transformation. It is the more fundamental form of change management, since it challenges all elements of processes or structures that have evolved over time.
Change Model
Bechard and Lewin introduced the most famous and important change model in 1951 and 1969. In 1980 Quinn and Lewian further explained this task.
Lewin:
According to Lewin 1951, the introductory methods to manage the change are as follows:
Unfreezing, existing attitudes are supported by the change in the present equilibrium.
New responses can be developed according to new information.
Refreezing, by introducing new responses in the personality concerns, can stabilize the change.
The Field Force Analysis is the only methodology observes change suggested by Lewin that involves:
The transition to the future state is affected analysing the driving forces.
The differentiation between driving and restraining forces is necessary.
Measures should be taken to give rise to critical driving forces and diminish critical restraining force (Martin, 2006).
In order to conclude the need and capability of Organizational change management should begin with the identification of the current circumstances, deep understanding about leadership skills, group dynamics, and creative marketing.
Resistance to Change
It may be external or internal.
External
External resistance defiantly affects the process of change. The cultural, social and political environment all resist to change.
Effective Communications with various stakeholders explaining them the reasons for the change (why?), the benefits of successful implementation (what is in it for us, and you) as well as the details of the change (when? where? who is involved? how much will it cost? etc).
Internal
At the time of implementation of change, organization can face some resistances to change internally from the workers like:
Lack of knowledge
Deficiencies in training
Fears to lose something.
Absence of trust.
Communication problems.
Normally, people perceive change processes in seven typical stages.
http://www.themanager.org/strategy/Change_PhasesDateien/image002.gif
Introduction
This report reviews the understanding of the concept of Organizational Change and its long term effect on the organization with regard to changes brought in British Airways.
British Airways is the fourth largest and one of the fastest growing airlines in the world. Leadership qualities and its unique culture helped in the growth of the company. Chief executive Bob Ayling, brought changes in the company without its employees support. At the time when BA was making record profit he thought change was necessary as some long term decision were to be made. He brought the change by outsourcing departments like engineering, information technology and maintenance to developing countries and by raising the morale of the staff by introducing training programmes and establishing hotel for the staff at Heathrow airport.
"Our aim is to be benefiting the customers, employees and shareholders, and to fulfil our commitments to the society".
(http://www.guardian.co.uk).
BA_1408545c
Background of British Airways
British Airways aims to bring people together by taking them wherever they want to go. This applies not only to the 36 million passengers that travel with them, but also to their employees. In spite of having challenges over the past few years the company is a very competitive travel industry. They believe that they have a firm strategy which keeps them moving forward.
Based in London at Heathrow Airport British Airways PLC is the leading intercontinental airline in the world. Being the UK's sole network carrier globally it serves 95 million people a year to approximately 550 destinations in 97 countries using about 1000 planes and 441 airports.
British Airways feels proud in providing full range of services to their customers whether they are in the air or on the ground.
Stock Performance Chart for British Airways Plc
British Airways - A Snap shot
1916: Establishment of Predecessor Aircraft Transport & Travel Ltd.
1919:World's first scheduled international air service was inaugurated
1933: Establishment of service to India and Singapore.
1935: The merger of three smaller airline companies forms the basis of British Airways.
1939: British Overseas Airways Corporation (BOAC) was formed by the union of British Airways and Imperial Airways and also nationalized.
1949: BOAC imbibe British South American Airways (BSAA)
1958: Successful completion of first jet trans-Atlantic service.
1962: Supersonic transport (SST) is build by BOAC and Air France agreement to commit funds.
1967: Second around-the-world route is established by BOAC.
1974:Company is restructured under the "British Airways" name
1976: The first SST Concordes service was inaugurated simultaneously by British Airways and Air France.
1987: Privatization of British Airways.
1987: British Airways buys British Caledonian (BCal).
1988: Marketing alliance of British Airways with United Airlines that two years later collapses.
1992:44 % of USAir Inc is purchases by British Airways.
1998: Between British Airways, Cathay Pacific, Canadian Airlines, Qantas and American Airlines "One world" global alliance is launched -a group that grows to eight members.
2000: Opening of British Airways' London Eye observation wheel; in its first year of operation 3 million people ride the wheel.
2006 and 2007 award of the year for SKYTRAX and OAG airline.
2007 award of best airline based in Western Europe.
2007 best trans-Atlantic airline award.
14-03-2008 at a cost of 403 billion pound Heathrow terminal 5 was opened to be used exclusively by BA.
Additional Details
Public Company
Frequent Flyer Programme :Executive Club Premier (Invitation)
Key People :Willie Walsh (CEO)
Tense Relationships :Virgin Atlantic, Formed 1984
Employees: 65,157
Sales: £9.278 billion (US $13.151 billion) (2001)
Stock Exchanges: London New York Frankfurt Munich
Ticker Symbol: BAY (London); BAB (New York)
NAIC: 481111 Scheduled Passenger Air Transportation; 481112 Scheduled Freight Air Transportation; 56152 Tour Operators
British_Airways_AA_codeshare
Changes in British Airways
To improve the future of the organization and reputation against the competitors, the British Airways chairman and Board of Directors decided to downsize the organization. The changes were totally revolutionary and dominantly strategic. Vast resistance was faced by British Airways from the Department of labour and development, local and environmental NGO and unions both internally and externally fought against these changes. As BA marketing value changed at 15% due to fierce competition with other international airlines they had huge pressure to bring this change. The change started in 2005 by changing its top management and appointing Willie Wash as CEO.
The main focus to change is followed:
Reduction in cabin crew
Internal and external change.
Financial losses.
Drop in profit.
Increased Competition.
Loss of Market Share.
Technological Development.
Cultural change.
Vision of change
The vision of British Airways is "One Destination seeks to ensure our customers fly confident that, together, we are acting responsibly to take care of the world we live in".
Mission to change
In its words: "British Airways is aiming to set new industry standards in customer service and innovation, deliver the best financial performance and evolve from being an airline to a world travel business with the flexibility to stretch its brand in new business areas". (http://www.britishairways.com)
Objectives of change
To face the global economic and market environment and give new ideas and innovation to the individuals so that they are competitive.
Changing internal and external culture of the organization
Offer good services to the passengers
Introduction of the continental food.
According to market conditions introduction of new technology and packaging.
To have a profound effect on the character and personality of the BA individuals by giving them comprehensive knowledge of managerial and technological skills.
To increase the productivity of the units which fabricate leadership qualities in individuals?
Creating a positive and dynamic learning environment to bring a paradigm shift.
The hub for the introduction of MBA programme by BA was that the knowledge and training should be thoroughly applied within the organization and future growth and development of the employees should be related to this training.
Strengths of Change in British Airways
Before change clear and set objectives are there.
Specific issues and problems were focused on in planning and involvement.
Before introduction of new technology collection of data and marketing survey was done.
Every employee got incentive in the shape of Golden handshake and transfer in other units by downsizing strategy.
According to market demand introduction of new technology.
Weaknesses of Change in British Airways
Identification of the problems that were surfacing in the organization.
In some areas lack of policy direction.
Need of cross functional communication
Long distance between communication chain like the decision-making unit and the primary sources of information.
Senior executives were over worked
Power structure was weak.
Top management was difficult to reach.
Decentralized structure
Lack of sufficient training.
british-airways
SWOT Analysis
Strengths
Well-established brand name British Airways gained loyalty and trust from the customers.
With strong international alliances BA has a global geographic exposure with excellent communication.
BA took full advantage of technological development through innovative culture e.g. online sales, drive thru check in.
Purchase of the new fleet and the appropriate aircrafts to make travelling comfortable for the passengers gave BA an advantage over their competitors.
Weaknesses
Soaring debts are still BA main concern.
Events like 2001 Iraq war and 2005 terrorist attacks had negative effect on BA due to its reliance on the international air travel and this threat still persists.
Job cuts may have negative effect on the BA as previous experience with the cost -cutting exercise resulted in understaffing and 2004-2005 industrial actions.
Exposure of the rule that adult male passenger cannot sit next to the child led to sex discrimination allegation against BA.
Unions threatening to go on strike against downsizing.
BA was declared by AEA as the worst airline for lost and delayed baggage due to clogging of belt carrying bags and malfunction of baggage handling system.
Worst airline for the arrival and departures of the short and medium haul flights.
In 2007 Heathrow as voted world's least favourable airport as it being overcrowded and subject to delay.
Shortage of the staff car park space due to non availability of space
Delays in getting to work due to long queues for security check up.
Opportunities
BA's online customer base expanded further by the growth of internet worldwide.
As customers expectations are raising value added and innovative flight services will attract more customers.
Opening in 2020 of a third short runway and sixth terminal will benefit BA and make Heathrow a global gateway.
Threats
BA market share is under threat from the low cost airlines which continuously enjoy strong growth and power in the market.
Fluctuations and continuing growth of the fuel prices pose another threat to BA.
Customers are still vigilant of the threat of repeated terrorist attacks.
More companies are focusing on high quality in their strategy plan which increases competition in low cost airline market.
http://www.worldairlineawards.com/images/BritishAirways_QF.jpg
Conclusion
The Organization's decision making both informing and enabling strategic direction should be fully incorporated in the Change management approach. The Organization's history, readiness, and capacity to change forms the realistic review for the management change.
British Airways is one of the leading international airlines in the world. The organizational changes brought by British Airways were effective not only in introducing modern technology but also in improving the performance of the airline.
To defeat the competitors BA introduced different options for its customers and tried to stabilize its position in the airline market.
By encouraging its employees through different incentives to tried to improve their skills and knowledge which is beneficial not only for them but also for the Organization.
