Wednesday, May 6, 2020
Leadership in an Organization for Asian Regional Airline Industry
Question: Discuss about theLeadership in an Organization for Asian Regional Airline Industry. Answer: FLY-HIGH plays a leading role in Asian Regional airline industry due to its customer loyalty and operational efficiency. It has been operating for 20 years in Asian airline industry. FLY-HIGH provides solid service to the customers and it has a good business career. Much of its professionals have 10-15 years experience in cabin crew and cockpit section (Flyhighaviation.org 2018). However, last few decades FLY-HIGH faced some challenges due to its operational management and a high cost of operation. They have proposed budget career and focused on non frills. This was done by reducing the cost of air service to attract the cost-conscious passengers. In this process, the management travel on budget career was not more than 3 to 4 hours. Reduction of the ticket price is a good pricing strategy for airline industry as it increases the number of customers (Yilmaz et al. 2016). However, certain development left a big effect on the operational process of FLY-HIGH. The operational cost became high and the maintenance cost of solid service and reputation of the organization began increasing. Based on this situation, MR. Roger Turnaround was recruited as the new CEO of FLY-HIGH. This leader wanted to reduce such issue by making FLY-HIGH as the market leader in Asian regional aviation industry. Low pricing strategy or budget career can be helpful for the aviation industry, however; it often increases the operating cost of business (Bolman and Deal 2017). Transformational leadership theory highlights that a leader works with his subordinate and identifies the necessary changes in an organization. By following the transformational leadership a leader can motivate their employees and enhance their performance. On the other hand, participative leadership is one kind of managerial style, which takes inputs from the employees and takes necessary decision regarding the service. Roger wanted to reinvent FLY-HIGH by incorporating new strategy. Roger preferred change management or business transformation as a leadership strategy. Hence, it has been seen in the given scenario, that R oger had followed transformational leadership to bring changes in the existing budget career of FLY-HIGH. Therefore, in this given scenario, it will be helpful for Roger to take participative leadership theory as it will help the managers to involve others in the current change management process in FLY-HIGH. It was found by Roger that providing full service to shrinking passengers in regional route was not effective for FLY-HIGH. He focused on a reputation of the organization besides the challenges that might be occurred in service. Roger believed in a multi-pronged method. Multi-pronged method refers to the process or technique, which includes several distinct aspects (Mehar et al. 2015). He focused on standardization of entire fleet to Boeing 737 in order to reduce the maintenance and operational cost. He offered to adopt multiple roles to the senior cabin crew staffs. He has established an air academy for the senior staffs to enhance the flight excellence. On the other hand, Rog er introduced training program by the senior to newly recruited personnel. Apart from this a training program for the mentor was also developed by Roger. Roger developed re-branding strategy for FLY-HIGH. However, re-branding is a useful method to increase brand awareness among the target audience (Aarons et al. 2015). Introduction of safety pricing was another vital contribution of Roger in the restructuring of FLY-HIGH service. Apart from this by introducing reward program and revised mileage program were other crucial initiatives that were taken by Roger. Roger did not believe in firing the employees, this was a great component of his leadership role. From the above analysis, it can be evaluated that introduction of multi-training program for senior crew staffs was the crucial role of Rogers leadership as it enabled the organization to reduce operational cost. Multi-training program helped the senior staffs to maintain the flight roles as well as ground roles (Groves 2015). This was beneficial to reduce the necessity of dedicated role. FLY-High had been facing high operational cost, which has a great impact on their business. In order to reduce such issue, Roger was recruited as their new CEO. Roger's leadership theory was associated with business transformation or change management process. It is important for an organization to bring change in their existing process or system to deal with an issue (Demirtas and Akdogan 2015). In the present case study, Roger focused on change management as well as transformational leadership theory to mitigate the current problems from FLY-HIGH. It has been evaluated from the given scenario, that Rogers leadership theory is based on the company benefit and individuals benefit. Different groups such as HR, mentor, marketing and sales executives are involved in this current change management process. In the given scenario, the HR has changed their policy in recruitment process as they have decided to higher more young people for their cabin crew job. This decision brought significa nt change in FLY-HIGH. On the other hand, the senior staffs of cabin crew have involved in providing training to the new comers and they also tackled both ground and in-flight operation. Therefore, the marketing executives are also involved in enhancing the revenue. A major marketing campaign was involved in re-branding by making a new logo, colorful websites. Introduction of flexi-pricing strategy revised the revenue and sales model of FLY-HIGH. Roger offered reward high mileage to customers based on their date of purchasing. This enhances the revenue by 7%. Providing training to the individuals by implementing multi-training program was significant in FLY-HIGH. Multi-training also helped senior staffs of FLY-HIGH to play a people developer role. This reduced the cost of hiring trainer to train newly recruited staffs. Roger's leadership role was significant for FLY-HIGH as the senior staffs showed a positive response to his multi-training program. This leadership approach ensured t he involvement of group and individuals in change management process, which was proposed by Roger in FLY-HIGH. In order to bring change in an organization involvement of every stakeholder is crucial as it is associated with the success of change management (Vrtesy 2017). Roger gave more concentration on enhancing organizational reputation and the brand awareness. For this purpose, he took rebranding strategy. This enhanced the online purchase process and led the organization to develop a partnership program with the hotel owner and car rental. From the above analysis, it has been revealed that each level of Rogers leadership in FLY-HIGH ensures the success of proposed changes in this organization. Among each level of leadership staff development or individual development program was the primary focus in this scenario as staff development is associated with the reduction of internal cost. In FLY-HIGH the approaches of staff development program meet the requirement of individual and group in an organization. Hence, from the analysis of leadership theory, it can be said that Roger's provided pri ority to the staff performance by developing themselves. Involvement of leader in each aspect of an organization is effective to deal with the current challenges in an organization (Van der Linden 2015). In this given scenario, the management style is changed into the leadership style as the theory of management is failed to get success in FLY-HIGH operation. However, the management has focused on budget career that lowers the flight cost and passenger mileage. However, this strategy was good to enhance the price conscious customers but this increased the cost of operation. On the other hand, there is no discount, which affected the premium customers of FLY-HIGH as they want long mileage. However, Rogers leadership changed this budget career as he increased the mileage and provided discount to the passengers. From this situation it can be said that the decision of management in FLY-HIGH was poor, which affected the business of this airline industry. This critical situation led the organization to adopt new leader and new leadership theory. As a result, changes occurred that means the management theory is transformed into leadership theory. Inability of management often gives rise leadership in an organization (Butcher 2018). In the context of FLY-HIGH their poor management process influenced this organization to adopt new leadership. On the other hand, management decision includes opinion of various people, which creates conflicts in FLY-HIGH. Therefore, adoption of new leadership theory enables FLY-HIGH to take necessary decision and no one can interrupt this decision. This is another factor, which turned the management paradigm into leadership paradigm in FLY-HIGH. Leaders of any organization play an important role in motivating the group as well as the individuals in a change management program (Yilmaz et al. 2016). In this given scenario, it has been found that recruitment of Roger as a CEO in FLY-HIGH was a great initiative for this organization to enhance their service provision by reducing the cost. The drawback of the management in FLY-HIGH was revised by the leadership theory of Roger. His leadership approaches such as multi-training program, re-branding, revised mileage, and flexi-pricing were beneficial to increase their share by 7%. However, the change management theory of Roger led FLY-HIGH to achieve a new-age career. By making the employee steady the management paradigm transformed into leadership paradigm. Roger's leadership role was beneficial to manage the safety and security in the workplace, which was not done by management. Management of FLY-HIGH introduced no frill fare while Rogers provided them full service. Hence, the ben eficial approaches of Roger leadership were the major components, which transformed the management into leadership paradigm. References Aarons, G.A., Ehrhart, M.G., Farahnak, L.R. and Hurlburt, M.S., 2015. Leadership and organizational change for implementation (LOCI): a randomized mixed method pilot study of a leadership and organization development intervention for evidence-based practice implementation.Implementation Science,10(1), p.11. Bolman, L.G. and Deal, T.E., 2017.Reframing organizations: Artistry, choice, and leadership. John Wiley Sons. Butcher, B.W., 2018. Leadership and Crisis Management.Rapid Response System: A Practical Guide, p.19. Demirtas, O. and Akdogan, A.A., 2015. The effect of ethical leadership behavior on ethical climate, turnover intention, and affective commitment.Journal of Business Ethics,130(1), pp.59-67. Flyhighaviation.org. 2018.FLY-HIGH. [online] Available at: https://www.flyhighaviation.org/ [Accessed 17 Mar. 2018]. Groves, K.S., 2015. Testing a moderated mediation model of transformational leadership, values, and organization change.Journal of Leadership Organizational Studies, p.1548051816662614. Mehar, M.R., Sarwar, B., Rauf, S. and Asif, M., 2015. Transformational leadership style and organization commitment.Paradigms,9(1), pp.88-102. Van der Linden, F.R., 2015.Airlines and Air Mail: The Post Office and the Birth of the Commercial Aviation Industry. University Press of Kentucky. Vrtesy, D., 2017. Preconditions, windows of opportunity and innovation strategies: Successive leadership changes in the regional jet industry.Research Policy,46(2), pp.388-403. Yilmaz, A.K., Tanriverdi, G. and Durak, M.S., 2016. Determination of optimal leadership style for an organization: Case of Hasan Polatkan Airport.The International Journal of Transport Logistics,16, p.1. Yilmaz, A.K., Tanriverdi, G. and Durak, M.S., 2016. Determination of optimal leadership style for an organization: Case of Hasan Polatkan Airport.The International Journal of Transport Logistics,16, p.1.
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