Assignment Sample on Organizational Change Development Plan
Task 1- Introduction
Change is part of every organization as in some point they all are undergo a change or transition in order to remain competitive and viable. It can be hire new staff, increase departments, merger & acquisition with other companies, etc. These changes can have a remarkable impact on the organization. In this context, organizational change considers as an action in which an organization change a major element in their business such as underlying technology, infrastructure, culture, internal or external processes, operations, etc. Organizational change management is the method to get benefit from change to bring about a successful resolution (Paine and Delmhorst, 2020). It includes three significant phases such as preparation, implementation, and follow-ups. It is necessary for the enterprises to adopt change management in order to sustain in the market and get success. Change management leads the adequate adoption and leverage of change within the organization. Further, it enables employees to understand their job effectively and remain committed for the company’s objectives. Lack of effective change management, company’s operation can be challenging and it needs expensive time or resources. It also reduces employee’s productivity, morale, and competitive skills. Concludingly without effective change management organization can fail or remain redundant.
The present report discusses organizational change management in the context of British Airways. It is the world’s second largest airline in the world which states in the UK. The airline goes through with biggest change which is the merging with four other firms. Due to the massive merger the firm face lot of challenges to manage itself and bring a decent service in the immediate change. After taking a charge of new chairperson they merger with four other company BEA, BOAC, Northeast Airlines, and Cambrian Airline. They build new business with 215 aircraft and hire more than 50,000 employees. However, they get criticism that the company is oversized and not performing well due to high prices of crude oil. The CEO decides to increase profits through restructure the entire organization by reducing its staff size from 59,000 to 39,000. Further, they reduce their flights from unprofitable routes and modernizing the fleet (RexhepiMahmutaj and KokaGrubi, 2020). Lord Kind repaired damage image of the airlines by effective organizational change management. Thus, the primary aim to conduct the study is to analyse the company’s change management effectiveness and its effects which will describe in the report.
Task 2- Case scenario
Organizational change management is the method to bring change with proper planning and effective implementation. It is important activity which needs appropriate strategies and effective management or leadership skills. In this regards, British Airways the biggest airline of the UK founded on 25th August 1919. The airline goes through from various changes such as in1974, they merger four companies BOAC, BEA, Cambrian Airline, and Northeast Airline. Through this merger they form 215 aircraft which were supported by more than 50,000 employees. It was oversized staff and the company suffer from oil crises from 1970s. Thus, they face huge financial loss and customer base. In 1981, the airline bought new Chairperson Lord King, who notice that the airline was loss-making, inefficiently operating, and misuse their valuable resources. The chairperson decides to increase their profit by implementing change management.
They reduce their employee count from 59,000 to 39,000. They reduce flights from unprofitable routes, and they replace more than half of the company’s board (Cortez, 2021). Moreover, in 1983 they hire new CEO Colin Marshall in order to repaired damage image of the company. In this result, within 10 years they generate the highest profit in its industry which is 284 million dollars. Other than that, British Airways experienced more organizational change due to various challenges. Such as poor infrastructure, low space, unskilled staffs, etc. Hence, they decided to bring change in order to motivate employees and stakeholders to bring innovation. Further, to make competitive skills to handle global economic issues, and cop-up with market environment. Thus, the objectives of change are given below:
- BA wants to provide immense customer service by this change
- They modify their internal and externa culture
- They offer continental meal to the passenger to increase credibility and sales.
- BA aims to survive in the market by using advanced technology
- The airline wants to hire employees who are proficient in management and technological field that can mark great impression on their personal skills.
In order to achieve such objectives, they develop change management strategy. There are many reasons behind change which was that the chairman and boards of directors of the BA wants to downsize within the organization to improve image and ensure long-term sustainability (Singh and Ramdeo, 2020). They want to gain competitive advantages through change management and now they hold 15% of total market share in international airline industry. Hence, the reason behind BA changes is given below:
Internal and external change– There are lot of chaos in the market as airline industry growing rapidly and competition are very high. Market situation is dynamic and uncertainty was common. Further, internal stakeholders’ competencies also low and unprofessional. Thus, BA authority decides to change their organizational structure.
Financial loss- BA employee count is oversized which increase their operating cost. Further, high price of crude oil also arises its cost. Hence, the airline profit has fallen and their suffer from financial crisis.
Technological change– Technologies are rapidly change and it becomes necessary to adopt such frequent changes otherwise it left the company redundant. Hence, BA is the first airline who introduce biometric boarding and immigration. Further, they are famous for using advanced technologies.
These are the trigger point which influence BA to change their organization. There are many types of changes such as structure, new aircraft, engineering, design, advanced technology equipment, and so on. Mainly four types of changes are there such as: Transformational, structural, remedial, and people-centric organization change. British Airways majorly adopt transformational, and structural changes:
Transformational change– It includes introducing new technology, training on new skills, etc. BA adopting advanced technology to improve both elements of mechanic and organic conditions to adopt effectiveness and innovation for their firm.
Structural change– It is the major change in the management hierarchy, teams, and the responsibilities level for various departments (Mills, 2017). It includes merger & acquisitions, create new teams and departments, etc. BA merger with four new airlines to expand their business and hire over 50,000 employees to support such changes.
These major changes are adopted by the British Airways to improve their operation efficiency. Other than that, they use remedial and people-centric changes in order to manage new things. Thus, they make two type of planning such as task planning where they analyse resource requirement to support such changes. At the same time, they involve in layout planning where they consider their workplace, workflow, equipment, staff skills, and analyse health and safety requirements to achieve their change objectives and gain competitive advantages.
Task 3- Analyse change situation
Organizational operation can be explained from its culture or the workplace environment. Culture is defined as a set of behaviour which is followed by the employees, managers, and CXO’s. The company’s activity depends on the people who create environment which is the wide term who includes many things such as values, beliefs, power, politics, conflicts, expectations, etc. These factor plays an important role which decides the environment of a particular organization. Firstly, culture role will discuss and then describe conflicts, power, and politics role which effect change management.
Culture which means the way things are around within organization. It is beneficiary for the organization when they implement changes as they make this process relatively stable. Culture reinforce itself because it ensures own continuity which is positive things that all things are align (Albers and Rundshagen, 2020). When a company introduce new changes, the culture role is significant to maintain the status quo. However, bigger change brings more resistance and disruption and, in such situation, culture play vital role to overcome from these challenges. Culture is important because the degree of change required in many companies are connect with cultural transformation. Thus, it is crucial to understand cultural change of work within organizations. In the perspective of British Airways cultural practice which is based on their hierarchy system where communication float down from the board of directors to the executive managers than to the various departments. The airline uses both role and task culture whereas role culture means the structure is pre-decided and employee know their task and who to report too. On the other hand, task culture where a team is built to meet some specific goals. Task culture is comparatively useful for employee as their motivation level is high because they get autonomy to make decision within the team.
Further, British Airways culture represent that they work with everyone from different background, and they treat all employees equally without any discrimination based on ethnicity, sex, culture, colour, religion, etc. They make conducive culture to all of their customers and provide them best services. BA provide excellent cultural environment for their staffs and customer, in terms of services, and safety. This culture practice is beneficiary for BA when they go through different merger & acquisition. They hire different employees from different background (Newman et.al.2017). Hence, organizational culture is plays very important role for BA as it helps them to implement changes, set their beliefs, value, behaviour, harmony, and direction to perform tasks. BA culture is the set benchmark for their competitors as it always prepares for internal or external changes. For instance, if competition is increase, and some requirements are arising to compete, BA culture enable to adopt changes in order to survive in the industry. However, culture includes power, politics, and conflict equation which make effect on change. Below are discussed its effect on BA changes:
Power– Power is the one of the major factors that affect the organization operations. It has wide range of influence in the organization activity. Thus, power in terms of organization activity can be defined as the capacity of an individual to overcome resistance on the part of others, to exert their desire and achieve their will results. It can be multidirectional like upwards, downward, or horizontal. It can be exercised upwards is the hierarchy, downwards such as union impose their demands and horizontal within a team. The people who hold some specification can have a power like:
- Formal position and authority in the organization structure
- Being irreplaceable
- Access to control over decision-making, information, and other resources
- Able to develop supporters and allies.
- Being physically powerful
Those persons who has some of the ability can be powerful within organization and they can affect various activity by using their power (Burger, 2017). For example, an individual who has expertise in advanced technology, then it becomes valuable resources and they can fulfil all its demands because organization has need for the person. Thus, in the organization power can play an important role as it can affect the organization in many positive or negative ways. In positive way power is a source to improve healthy competition between the teams and employees, it also be inspiring and persuasive. Further, it is an important source where high level employee can interact with their counterparts working at lower level more productively. On the other hand, it has some adverse effect also such as it can boost personal dominance where an individual has power to dominate other for their personal benefits. Some person also misuse their power and it also can be aggressive, unsocial, and exploitative which leads to misuse of power. BA has to provide equal autonomy to all of their employees and systematically delegate authority to eliminate power negative factor as it can damage their objectives.
Politics-The organization also have political activities which influence individual and team behaviour. Politics tend to come up in a business when someone begins to act on their own interest without thinking of others in the company. It also blows up during conflict time and power struggles. According to some of the experts, business politics are very harmful. Business politics reduces productivity through distraction, reduces motivation level and morale, increases stress level and ruins the environment of the business (Kotouza, 2019). Those in positions of power will misuse their authority based on their own profits which can increased conflict between employees and groups. Thus, politics has negative effect because it influences merit system of selection, public values and expectations are compromised, and it restrict career growth of the employees. Further, it negatively affects change in the organization because some people who doing politics cannot allow to implement any change due to their own profit.
Conflicts– Conflict in the organization and in the society is common. In other words, it arises when two people or group does not have same view on an issue (Rosby, 2020). In an organization people come from different background and all have some own values which is not compromise. Thus, the notion of the conflict within organization has been looking differently as some experts believe that is the normal part of daily activity while some people think that it is not acceptable. The conflict has both positive and negative effects. In positive terms employees promotes self-evaluation, improve their skills and quality to compete with other peers, and prepare themselves for healthy competition. As these positive elements improve employee’s performance and their contribution in the development of organization activity. On the other hand, it can be deadly for the organization if not handling the situation properly (McDevitt and Fitzpatrick, 2020). It can lead the organization to close. Hence, it can affect change management process badly.
British Airways faces these issues when they bring change in their organization. Misuse of power, employees’ conflicts, and bad politics significantly affect the airline because it creates many obstacles in the way to achieve their objectives.
Task 4- Recommendations
Organizational change is always critical task as it impacts lot of people in the organizations and also outsiders who are somehow associate with them. Thus, change should be implemented in managed way and ensure that everyone interests are align with the objectives. Changes are reflecting on leadership, employees, and organizational development. Below are given some recommendation about how to manage its effects on organization:
Leadership issue- leaders are know two basic things that organizational change is constant and leading such changes is one of the most challenging tasks for a leader. Hence, leader plays an important role during change management process as it develops their own capability and organization growth. For instance, British Airways CEO successful implement merger process along with gaining employee and customer satisfaction, then it becomes benchmark for other leaders and it is significant success which provide him many growth opportunities. In 1981, the CEO of the BA generate maximum profit which is the highest from in 10 years. It increases the airline image in the market (Al-Dori, 2017). Thus, leader needs to carry out many tasks to implement changes. Below are providing suggestions:
Clarify the vision and communicate it- The role of leaders in change management should be supportive as they should help employees to understand their task. They should use effective and consistent communication strategy (Sharma, 2020). The communication needs to be clear and consistent.
Stay connected with the employees- Employees looks to their leader when they stuck into problems. In such situation, the leaders should be there to help their employees. Further, they should stay connected with their employees to know their expectations. It increases their trust for the company and reduce resistance chances.
Be transparent and accountable– During change process, leaders must be accountable about employee’s performance. Being transparent and accountable leaders enable to solve any problems and increase their follower trust.
Leadership skills and organizational change compliment each other as effective leader is valuable to implement change and effective organizational change improve leadership skills. Thus, it can be recommended that BA leader should adopt above mention points to improve their skills and ensure organizational development (O’Donovan, 2017). Other than that, effective change management establish new standards for the development of the organization. It is the great opportunity for the leaders to flourish themselves and achieve high rank to perform well. For instance, BA downsizing their staff under cost-cutting measure. If a leader performing well, then they can safe from such lay-offs. Further, BA follow hierarchy to lead their employees which is not in trend in today’s time. Thus, the leaders should adopt transformational leadership as it is very effective style to lead the teams. Hence, organizational change can make positive reflection on leadership if they can use this opportunity in an effective way.
Employee engagement-Employees are the most valuable resources for any organization as without them it is not possible to operate a firm. It becomes more important for large organizations such as British Airways, where all task are depends on their capable employees. If they want to change organization structure, then it becomes essential to make their employee consent and includes them in every step of decision-making (Quiltyet.al. 2020). Employee engagement is the essential part of the company where employees are being the important part of every task and they get engage with the company. It enables to implement changes in an effective way as engaged employee does not resist any change because they are the part of such changes. Hence, some recommendations are given to increase employee engagement:
Communicate the necessity of change- When British Airways hire over 50,000 employees and get criticism for oversized the chairman decides to downsize their staff. Thus, they communicate with their employees that they suffer from huge financial loss because of oversized staff, and increasing oil prices. There operating cost are high and profit are low. It such situation, many employees willingly leave their job. Hence, the company should communicate every important thing to their employees as it feels them that they are the part of the company and they have some values.
Provide opportunity in decision-making– It is most complex task to implement change in such large organization (Robb, 2016). It requires lot of strategy and resources so the decision-making process in change management is crucial. If the company involve employees in such difficult activity, then they become loyal for the organization as the feeling of consideration is valuable. It also beneficiary for the company also as they leveraged from innovative ideas and suggestions come from their employees.
British Airways should include their employees in decision-making process, consider their suggestions, communicate with them to know their problems and expectations, etc. It helps the company to establish change and make this process smooth. Further, it also profitable for the employee’s growth and development (Balarezo and Nielsen, 2017). Thus, it can be suggested to BA that they should ensure that their employees are engage with them and feel satisfied from such new changes.
Organizational development- The primary purpose for change management is to get immense success. BA merger with four companies and develop 215 aircrafts. It is remarkable growth of the BA which leads to them as the second-largest airline in the world. Organizational development through change management focus on innovation and sustainability. In other words, OD is the subject of study that exercise change and its affects on the organization and the individual within those organization. British Airways suffer from significant financial loss and the CEO or board member decides to bring some changes such as downsizing, using advanced technology, develop culture, etc. Hence, in the context of organisational development BA should ensure that the purpose changes are effective and in the favour of organisational development. BA using biometric boarding and immigration which is the first airline who did so (Galbrait, 2021). They shift their ticket booking procedures from traditional to online. They provide intense training to their employees in order to cop-up with changes. In such ways, the airline ensures their development through effective change management. At last, it can be suggested to BA that they should use effective techniques and make collaboration with every stakeholder before implementing new changes. Further, they should analyse its consequences on the organization development in order to take corrective measures.
Conclusion
The report discusses organizational change development plan in the context of British Airways. It is second largest airline in the world stated in the UK and founded in 1919. The airline faces many up down through their entire career. Some big changes like they merge with four airlines to expand their business, downsizing their staff under cost-cutting measures, adopt advanced technologies, etc. There are many reasons where change is required such as increasing competition, advanced technologies, financial crisis, etc. These are very complicated to implement such changes because of employee’s resistance, incompetent leaders, lack of resources, ineffective communication, stakeholder resistance, and so on. Thus, effective change management is necessary to overcome from such issues. In these situation company’s culture plays important role as positive culture make this process smooth and negative culture become this situation worst. It includes power, politics, and conflicts which affect change management process. At last, some recommendations are given to make change management smooth and satisfy their internal and external stakeholders through effective communication. Hence, it can conclude that British Airways achieve their objective by effective change management techniques which ensure organizational development, long-term sustainability, and enable to achieve competitive advantages in the market.
References
Books and Journals
Albers, S. and Rundshagen, V., 2020. European airlines′ strategic responses to the COVID-19 pandemic (January-May, 2020). Journal of air transport management, 87, p.101863.
Al-Dori, H., 2017. Managing Change. British Airways from Turbulent Times To Flying the Friendly Skies!. GRIN Verlag.
Balarezo, J. and Nielsen, B.B., 2017. Scenario planning as organizational intervention: an integrative framework and future research directions. Review of international business and strategy.
Kotouza, D., 2019. Surplus Citizens. Pluto Press.
McDevitt, P. and Fitzpatrick, M. eds., 2020. Anchoring Cultural Change and Organizational Change: Case Study Research Evaluation Project All Hallows College Dublin 1995-2015. IAP.
Mills, A., 2017. Corporate image, gendered subjects and the company newsletter: The changing faces of british airways. In Constituting Management (pp. 191-212). de Gruyter.
Newman, C., Chama, P.K., Mugisha, M., Matsiko, C.W. and Oketcho, V., 2017. Reasons behind current gender imbalances in senior global health roles and the practice and policy changes that can catalyze organizational change. Global health, epidemiology and genomics, 2.
O’Donovan, G., 2017. Making Organizational Change Stick: How to create a culture of partnership between Project and Change Management. Routledge.
Paine, J.W. and Delmhorst, F., 2020. A Balance of Rigor and Relevance: Engaged Scholarship in Organizational Change. The Journal of Applied Behavioral Science, 56(4), pp.437-461.
Quilty, B.J., Clifford, S., Flasche, S. and Eggo, R.M., 2020. Effectiveness of airport screening at detecting travellers infected with novel coronavirus (2019-nCoV). Eurosurveillance, 25(5), p.2000080.
Rosby, M., 2020. Examining Transformational Leadership and Organizational Change in High-Poverty Urban Schools (Doctoral dissertation, St. Thomas University).
Singh, R. and Ramdeo, S., 2020. Organizational Change Leadership. In Leading Organizational Development and Change (pp. 143-165). Palgrave Macmillan, Cham.
Online
Burger, L., 2017. Understanding Change and Its Impact on Engagement. [Online] [Available through]: <https://www.achievers.com/blog/understanding-change-impact-engagement/>
Cortez, P., 2021. The Role of Leadership in Change Management. [Online] [Available through]: <https://alignorg.com/the-role-of-leadership-in-change-management/>
Galbraith, M., 2021. Don’t Just Tell Employees Organizational Changes Are Coming — Explain Why. [Online] [Available through]: <https://hbr.org/2018/10/dont-just-tell-employees-organizational-changes-are-coming-explain-why>
Robb, J., 2016. Strategies to Increase Employee Engagement. [Online] [Available through]: <https://hrdailyadvisor.blr.com/2016/03/10/strategies-to-increase-employee-engagement/>
Sharma, K., 2020. 4 Types of Organizational Change, Explained. [Online] [Available through]: <https://whatfix.com/blog/types-of-organizational-change/>
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