Вы находитесь на странице: 1из 16

Running Head: SUPPORTING CHANGE

Supporting Change within Organisations A Case of Emirates Airline


[Name of the Institute]
[Name of Student]

Supporting Change

Supporting Change within Organisations A Case of Emirates Airline


1. Introduction to the Organisation Emirates Airline
Emirates airline had begun its operations in 1985, initially with two aircrafts only.
Presently, it has the worlds largest fleet of Airbus a380s and Boeing 777s, with all the facilities
and modern state-of-the-art comfort facilities and structure. It is inspiring travellers around the
globe with over 150 destinations in 80 countries with more than 230 aircrafts including, facilities
like regional cuisine, inflight entertainment and world class service. Emirates are increasing its
network on a consistent basis and it has been estimated that more than 1500 flights depart from
Dubai, every week, to six continents globally. Dnata is the largest provider of travel management
services in the UAE and has largest combined air service provider in the world. Dnatas core
activities are ground handling, provision of cargo, travel services, and catering. Emirates and
Dnata both are independent entities that are sharing same management (Emirates, 2016a, p.n.d.).
2. Six Internal and External Factors that Drive or Influence the Change (Example Michael
Porter Model, PESTLE, and SWOT)
Change management is a pre-planned approach that is adopted by the firms to modify
individuals, organisation, and teams from their present state into future state to achieve the long
term objectives and goals of the business. It is a process in which employees are empowered to
accept and hold hand in their present environment. There are at present several ways that lead the
foundations of this change management practice (Ryerson, 2011, p.n.d.).

Supporting Change

2.1 Porters Five Force Model


2.1.1 Threats of New Entrants
The threat of new entrants in Airline Company is lower but barriers are high. Initial
capital requirement is high in airline industry; therefore, new range of aircrafts and low cost to
attract customers are some threats that the existing company face if the entrant has all these
powers. On the other hand, there are the barriers for any new entrant, intended to enter into the
market. Moreover, the existing company has built strong image and goodwill that its customers
want to remain loyal to the business (Emirates, 2016b, p.n.d.).
2.1.2 Bargaining Power of Suppliers
In an airline industry, the suppliers have usually high power due to limited suppliers and
hundreds of airlines ready to expand, thats why airlines always face fear of substitution. The
ratio of suppliers demand is very high as compare to airlines, theres continuous demand of
Boeing and airbus in this business line and thats why suppliers regulate very high prices
according to their demand.
2.1.4 Bargaining Power of Buyers
Buyers also have high power due to market demand; there is again fear of substitution,
customers switch flights easily due to other airlines competitive deals and schemes but emirates
compensate its cost by offering luxurious flight services, food and entertainment. On the
contrary, Emirates have high power to large number of passengers travelling on daily basis, and
it also have competitive edge over other flights because it offers direct flights to certain routes
which other dont. (Emirates, 2016a, p.n.d.).

Supporting Change

2.1.5 Threat of Substitute Products or Services


The biggest threat to the big airlines is from automobiles and railway industry or cheap
flights. When airlines rise their fares people tend to use private transportation or cheap flights for
short distance than expensive and luxurious flights, this is where emirates falls short (Emirates,
2016a, p.n.d.). Comparatively, the return ticket of these first two mediums costs less than the
later one, however in case of long trips or luxurious segment, emirates leads.
2.1.6 Rivalry amongst Existing Firms
In todays fast and rapidly changing environment, rate of growth in airlines industry is
very high especially in Middle East. There is often seen fierce in airline industry due to presence
of number of airlines giving numerous benefits like such as Spas, live TV and reclining seats.
(Emirates, 2016d, p.n.d.). Therefore, the new technology and substantial services are value
adding elements.
2.2 PESTLE Analysis
2.2.1 Political Factors
The airline industry is much sensitive than any other industry, since the tourism sector is
attached to this industry. If a country is in a region where there is war going on and political
instability then people will be less likely to travel in that particular part of the region. In the
UAE, the political environment and conditions are stable and have better economic conditions,
but in some parts of the Middle East the war is going on for a long time (Emirates, 2016a,
p.n.d.). Therefore, the airline industry cannot join with other international Alliance.
2.2.2 Economical Factors

Supporting Change

Sound economic structure and modern airports are the basic needs for the success of any
airline company. In case of Emirates, UAE has a sound investment plan in developing and
expanding airport structures. The UAE government is constantly investing in the development of
airports and facilities to aid its tourists and passenger through advanced services (Emirates,
2016d, p.n.d.).
2.2.3 Social Factors
The rapidly growing economy of UAE has aid positively its airline industry as well.
Many new emigrants are moving into the country for settlements. Theres growth in no. of
tourists and educated people in UAE, due to its multiculturalism. This has increase the airline
profits as these people often visit to their home countries once a year. This has alternatively
increased the profits of the Emirates Airline as well (Emirates, 2016c, p.n.d.).

2.2.4 Technological Factors


The technological advancement has played a vital role in the airline industry. The positive
outcomes is that online bookings are made easy keeping track of flights and getting updates of
flight schedule has made travelling easy for passenger, inflight entertainment and availability of
internet has also made travellers travel easily (Emirates, 2016a, p.n.d.). However, the negative
impact is that the business class passengers are travelling less due to tech advancement,
conducting the meetings online through the communication mediums; this has resulted in
decreasing the sales of Emirates and other airlines.
2.2.5 Legal Factors

Supporting Change

The legal consequence is of relevant importance. Under this factor passenger travelling in
an airline needs to fulfil the legal documentation. In some countries, these documentations are
easy to be done where as in some it is a bit complicated. Secondly, in an airline industry the firm
needs to fulfil the documentation, if setting up new airline or existing one opening their business
units in the same country or in another country can be a little much complicated and takes time to
complete. (Emirates, 2016b, p.n.d.).
2.2.6 Environmental Factors
The environment of UAE is up-to-the-mark and business friendly, the growing economy
has made the country a safe and secured place for setting up businesses. The Emirates Airline is a
government official airline and is considered as an environmental friendly airline which recycles
the waste for environmental substantiality and it has hired 75,000 employees across globe for
environment friendly practices and eco-efficient operations. ("Sustainability and Recycling |
Emirates", 2016)
2.3 SWOT analysis
A SWOT analysis is a useful tool to know where the company stands and it gives a way
to think strategically and find out what strengths, weaknesses, opportunities and threats a
company holds.
2.3.1 Strength
Strengths are usually firms internal strong points. These could be tangible or intangible
attributes and these are from both internal and external perspective. This aid firms in gaining
comparative advantage in the marketplace. In case of Emirates Airline, it is the government

Supporting Change

official airline, part of the oil rich Gulf States and strong hub in Dubai. Majority of customers are
satisfied by Emirates. It has a strong workforce of more than 50,000 employees and operates in
80 countries (Emirates, 2016a, p.n.d.).
2.3.2 Weakness
These are the firms weak points that affect the external environment. In case of Emirates,
it is observed that an airline is heavily relied on international traffic and incurs high costs of
maintaining bench-mark standards with limited growth share (Emirates, 2016b, p.n.d.)
2.3.3 Opportunities
This is the major area in which a firm needs to find out what opportunities are present for
its business in the market it is operating and what other market are available for diversification
and expansion. Firms can also get benefited by change in the government policies related to the
field of operations, changes in competitive environment as how many new businesses have
entered in the market and regulatory circumstances. (Emirates, 2016b, p.n.d.).In case of Emirates
Airline, income per capita has grown overall growth in UAE population, number of tourists will
be increased anticipated by the World Travel & Tourism Council, and aviation events like Dubai
Air Show will promote competition among other Middle East airlines.
2.3.4 Threats
These are the external factors that a company does not have control over it. These include
slow market growth, increased bargaining power of buyers, entrance of new competitors, and
suppliers, entrance of new competitors, and technological change. In case of Emirates Airline,
increase in the cost of security, insurance, fuel will increase operational costs (Emirates United,

Supporting Change

2016b, p.n.d.). New low cost entrants can find a place easily for expansion, e-ticketing a form of
incurring cost in case the data is lost or hacked or crushed by virus.
3. Three Ways in which Change Affects Organizations
Change impacts overall organization from organizational structure to HR management and
organizational strategy. Emirates always establishes a change management team which can help
employees and organization adapt new change and pace.
3.1. Structural Change
Organizations usually change their structure or re-invent it to make it convenient for its
employees and also supports the objective of change. In case of any internal or external factors
change, Emirates has developing process like upgrade to new technology, prior analytics,
artificial intelligence or stimulus, automation, training and other practices for continuous change
adaptability, efficient management, identifying and adapting new trends. In order to execute the
structural change emirates establishes change management team, supervised by a senior
executive with appropriate resources to drive the change and keep the organization feasible.
(Longman, 2016)
3.2. Effect on Employees
The change management team must take significant initiatives to motivate its employees to adapt
change because in most cases change discourage old employees, it requires new skills, efficiency
and different pace, which every employee cannot manage. Emirates have Change management
team, Leadership capability and support, Talent management and Employment advisory support
department for any query and employee retention during change. ("Business Support | Human
Resources | Explore our Careers | Emirates Group Careers Centre", 2016)

Supporting Change

3.3. Cultural change


Cultural change is the most evident change which people notice or face during organizational
change. In case of Emirates, we witnessed the cultural change in its organization, how emirates
employees evolve and increase their pace with every change and this change eventually also
brings change in its customers life, for example according to Help Centre-Emirates (2016),
everything is automatic; booking online flights, choosing seats, meal, even it takes almost half
time to board than few years. Emirates is becoming tech savvy.
4. Three approaches to bring change in an organisation (LewinChange Model Beckhardkotter- William bridges)
The transition model was as early as created by the William Bridges in 1991 in a book
Managing Transitions. The model deals with transition, Change is something that if people do
not agree with, but transition is something that comes from inside (Bridges and Mitchell, 2000,
p. 36).Change takes place rapidly, but transition is a slow process. The model is divided into
three stages:
4.1 Stage 1: Ending, Loosing, and Letting Go
People enter at this stage when they are forced to adapt the change or pushed into it. At this
particular stage people may come across: a sense of loss, anger, denial, disorientation, fear,
frustration, sadness, and uncertainty. During change, it is important to give time to the people to
accept the change and understand their emotions fully, otherwise there will be a resistance to
change. Try to talk openly and create a room for everyone to talk and express on the change
clearly and openly (Bridges and Mitchell, 2000, p. 36). Initially, people do not understand the
change easily; therefore, it is the duty of the senior team to explain them clearly to avoid
ambiguities. For this stage emirates establishes change management team, which makes
strategies to retain, manage employees and avoid any cultural shock.

4.2 Stage 2: The Neutral Zone

Supporting Change

At this stage people are often uncertain, impatient, and confused by the change. It purely depends
on the business that how it is transforming the change into its people. People may experience
some problems at this stage too; these are perhaps hatred towards change initiative, low
productive and morale, anxiety about their identity or role, and doubt about change. This stage is
often unproductive and uncomfortable for people as they enter in this stage due to slow progress.
A solid sense of direction is needed, people often get lost at this stage and do not understand the
direction (Bridges and Mitchell, 2000, p. 36).It is important for an employer to take the feedback
from the people and set short term goals so that people understands easily. Emirates treats its
employees like assets thats why according to Emirates Airlines accelerates innovation, change
management through HP Software (2013), it has collaborated with HP to ease its employees
burden and make change easier for them.

4.3 Stage 3: The New Beginning


This is the last stage of the transition model and the time when people accept change and energy.
People accept this change and start working under the change enthusiastically. At this stage,
people experience to have high energy level, committed to their group, and ready to learn
(Bridges and Mitchell, 2000, p. 36). Emirates recruit quite flexible and versatile employees who
stay committed and give their best to make it the best employer in UAE. ("Responsibility | Our
Vision & Values | the Emirates Group", 2016)

Figure1: transitional Model

5. Three Behavioural Responses Seen When Change Occurs in an Organisation

Supporting Change

10

Figure 2: John Fisher Curve


According to Fishers personal Transition curve, there are 12 stages which employees go through
during change. As this diagram is quite self explanatory, there is no need of details, however
there are many other models on employee reactions but there are three others,

Employees cognitions and emotions


Participation of employees in decision making; and
Communication.

5.1 Employees Emotions and Cognitions


During the change emotions and cognition effect the employees reaction to change in following
aspects: employee attitudes, defence mechanisms, irrational thoughts, and emotional intelligence
(Wittig, 2012, p.28).

5.2 Communication

Supporting Change

11

Communication is the key factor during the change process that impacts employees. At
the initial level it is hard to communicate the change positively to the employees. However, once
the change is communicated, it positively reduces the employees uncertainty and negative
correlations(Wittig, 2012, p.28).
5.3 Employee Participation in Decision Making
There is one specific method that is PDM- a process that influence decision making
shared between the senior management team and their juniors (Wittig, 2012, pp.28). PDM has
several positive aspects expressing new ideas, shared vision, mutual respect, trust and shared
vision. Participation by employees is an acceptance of change and shows commitment to the
organisation.

6. Three Ways that HR can Support Individuals during Change


HR can support its employees by three different ways:
6.1. Employee Assistance Program

A support structure to help HR professionals to promote well being.

Helps employees in mitigating the personal problems at the work place.

Increases overall productivity (Benoit, 2011, p.n.d.).

6.2. Change Policies

At the initial level of change the HR can assists its employees by proper planning of roles
and duties.

How they will carry out their respective tasks and whom they will report.

Supporting Change

12

By providing charts and maps and tools that are useful of them to better understand the
procedure(Benoit, S., 2011, p.n.d.).

6.3. Out Placements

A support service provided for employees by its employers to reorient themselves in the
new job.

The sessions are delivered either in one to one sessions or groups.

Usually provided by a consultancy firms (Benoit, S., 2011, p.n.d.).

Supporting Change

13

Conclusion
The report has discussed the change management process, specifically in the context of
Emirates Airline. In this regard, the paper has incorporated the analysis of the internal and
external environment of the firm. Moreover, the report has also discussed the ways in which
change affects the organisations, while comparing three approaches to change that are used
within the organisations. The report has discussed the behavioural response that was occurred in
Emirates Airline, because of the prevalence of change.

Supporting Change

14

References
Benoit, S. (2011). Three Things HR can Do to Relieve Employee Suffering - Benoit Central.
[online] Benoit Central. Available at: http://www.benoitcentral.com/2011/08/28/three-thingshr-can-do-to-relieve-employee-suffering/ [Accessed 15 Jun. 2016].
Bridges, W. and Mitchell, S., (2000). Leading transition: A new model for change. Leader to
leader, 16(3), pp.36.
businessballs.com. (2012). The Process of Transition. [online] Available at:
http://www.businessballs.com/freepdfmaterials/fisher-transition-curve-2012bb.pdf [Accessed
15 Jun. 2016].
Chermack, T.J., (2011). Scenario planning in organizations: how to create, use, and assess
scenarios. Berrett-Koehler Publishers.
Emirates. (2016a). About Emirates | Emirates United Arab Emirates. p.n.d. [online] Available at:
http://www.emirates.com/ae/english/about/press-room.aspx [Accessed 15 Jun. 2016].
Emirates. (2016b). Annual Report. p.n.d. [online] Available at:
http://content.emirates.com/downloads/ek/pdfs/report/annual_report_2016.pdf [Accessed 15
Jun. 2016].
Emirates. (2016c). History | About Emirates | Emirates United Arab Emirates. p.n.d. [online]
Available at: http://www.emirates.com/ae/english/about/history.aspx [Accessed 15 Jun.
2016].
Emirates. (2016d). Our Company | About Emirates | Emirates United Arab Emirates. p.n.d.
[online] Available at: http://www.emirates.com/ae/english/about/ [Accessed 15 Jun. 2016].

Supporting Change

15

Mindtools.com. (2016). Bridges' Transition Model: Guiding People Through Change. [online]
Available at: https://www.mindtools.com/pages/article/bridges-transition-model.htm
[Accessed 15 Jun. 2016].
Ryerson. (2011). Change Management Leadership Guide. p.n.d., [online] Available at:
http://www.ryerson.ca/content/dam/hr/management/change_mgmt/docs/ChangeManagement
Guide_FINAL.pdf [Accessed 15 Jun. 2016].
Wittig, C., (2012). Employees reactions to organizational change. OD Practitioner, 44(2), pp.
23-28.
Sustainability and Recycling | Emirates. (2016). Emirates. Retrieved 11 August 2016, from
http://www.emirates.com/english/environment/sustainability_and_recycling/sustainability_and_r
ecycling.aspx

Longman, N. (2016). Emirates Group Embarks on Transformation Strategy.


Supplychaindigital.com. Retrieved 11 August 2016, from
http://www.supplychaindigital.com/logistics/4146/Emirates-Group-Embarks-on-TransformationStrategy

Business Support | Human Resources | Explore our Careers | Emirates Group Careers Centre.
(2016). Emiratesgroupcareers.com. Retrieved 11 August 2016, from
http://www.emiratesgroupcareers.com/english/careers_overview/human_resources/business_sup
port.aspx
Help Centre | Emirates. (2016). Emirates. Retrieved 11 August 2016, from
http://www.emirates.com/english/help/help.aspx

Вам также может понравиться