Change Implementation in Etihad Airways - Assignment Example

Change Implementation in Etihad Airways Name: Institution: Course: Date: Table of Contents Table of Contents 2 Executive summary 3 Question 1 (a) 4 How to promote positive working relationship with stakeholders and suppliers of Etihad Airways 4 Collaborative approach to stakeholder and supplier management 4 Conflict management between supplier and stakeholders at Etihad airways 5 Influencing behavior 7 QUESTION 1(b) 8 Creating approaches for developing work groups (teams) in Etihad Airways 8 Recommendations to improve relationship with suppliers and stakeholders 11 QUESTION 1(C) 13 Demonstrating leadership qualities relevant in guiding stakeholders and suppliers 13 Consultative approach to leadership 13 Motivation theory 14 QUESTION 2 15 Change at Etihad Airways 15 Example of change at Etihad Airways 15 Reasons for change 15 Approach used in implementing the change 16 References 18 Executive summary Etihad Airways is one of the most successful airline companies in the Middle East and on the global platform. This is attributable to its ability to engage integrate technology and its operations. Future success of the company will be dependent on the ability of the management to engage in an effective process of identifying its stakeholders and suppliers in terms of their contribution to the realization of the goals and objectives of Etihad Airways. Leadership style embraced by the management at Etihad Airways is critical in the determination of the most effective technique of managing the relationship between the company, its stakeholders, and suppliers. Embracing technology such as Ariba solutions is crucial in improving the relationship between the stakeholders and the suppliers because the former will be supplied with updated information on all supplier activity. Question 1 (a) How to promote positive working relationship with stakeholders and suppliers of Etihad Airways Etihad Airways is one of the most successful airline companies in the Middle East and on the global platform. Part of its success is attributable to its ability to engage integrate technology and its operations (Benn et al 2014). Furthermore the company has also been successful in the realization of its organizational objectives through the introduction of techniques that engages and incorporates its stakeholders and suppliers in different actions related to the organization. The realization that stakeholders play an influential role in organizational success with regard to improving on the competitive advantage of the company explains why Etihad Airways needs to ensure the creation of a better working relationship with its stakeholders and suppliers. The following technique can be used by Etihad Airways to enhance on its stakeholders and supplier relationship (Benn et al 2014). Collaborative approach to stakeholder and supplier management The success of Etihad Airways will be dependent on the ability of the management to engage in an effective process of identifying its stakeholders and suppliers in terms of their contribution to the realization of the goals and objectives of Etihad Airways. This is considered effective when the organization educates its stakeholders and suppliers with information on the mission, vision, and objective of the organization (Benn et al 2014). The objective of this approach to managing stakeholders and suppliers will helps the company in ensuring that the organization the stakeholders and suppliers integrate their operations with those of the organization with the aim of building relationships with likeminded individuals and other corporate entities. The process of fostering effective business relationships through collaboration will facilitate the growth of the company through streamlining its decision-making processes and improving on supply chain management (Majchrzak and Markus 2013). Furthermore, the collaborative approach to improving stakeholder and supplier relationship will also provide the company with a platform of sharing ideas and information especially on what through which Etihad Airways can contribute to experience improvements sin terms of the quality of services and products provided by the suppliers. This is because on the realization that collaborative efforts towards a common good often benefits all stakeholders within an organization (Brown & Osborne 2012). Conflict management between supplier and stakeholders at Etihad airways One of the major sources of stakeholder and supplier conflict in an organization is failure by the organization to recognize, prioritize, and balance the interest of its stakeholders. The management at Etihad Airways has the responsbility of operating with the understanding that different stakeholders have diverse priorities, which must be met for the realization of organizational success. Shareholders, for instance often expect Etihad Airways to engage in profit making initiatives so that they receive returns on their investment. The employees require good working conditions and transparent reward systems, customers expect accurate and reliable products while the suppliers require a streamlines process that enhances their ability to provide the organization with quality supplies in a timely manner (Monczka et al 2015). Within Etihad Airways, stakeholder conflict may arise when the needs of a group of stakeholders or suppliers compromise the expectations of the others. In the process of managing stakeholder and supplier conflict, Etihad Airways through its management must be involved in decision-making processes that enhance organizational reputation while considering the diverse interest of its stakeholders. For instance, while seeking the cheaper but quality supplier of goods, which is crucial in maintaining affordable prices for customers, the company has the responsbility of considering the ethical practices embraced by these suppliers to promote product and service safety. Inasmuch as the product may be cheaper, any form of relationship with unethical suppliers or low quality products may be damaging to the reputation and financial success of the business (Hill et al 2010). Etihad Airways often engages in activities that may not result in immediate financial gains but support ethical operations of the business. In such situations, it is possible for conflicts to arise especially when the stakeholders do not understand the objective of the organization (Hill et al 2010). This makes it crucial for Etihad Airways to engage in the resolution of such potential conflicts through the development and communication of such organizational policies to the stakeholders to enhance their understanding of organizational operations. Furthermore, by communicating and explaining organizational polices to the stakeholders, Etihad Airways will be able to ensure that stakeholders and suppliers develop an understanding of the value they provide to the organization (Cornell 2013). Conflict management may also involve the ability of the organization to provide support to its stakeholders and suppliers at different levels. For instance, Etihad Airways can improve on the quality and quantity of the support services it provides to its employees with the objective that it would lead to tradeoffs. When the organization introduces and develops professional development opportunities for its employees, to enable the realization of their potential, The Company must justify this investment approach against the opportunity cost of using resources and time for other purposes. Furthermore, the company must also develop techniques of assessing the potential downside of failing to train its employees as a platform of substantiating the needs of investment on employees (Robbins et al 2013). Influencing behavior Stakeholders are considered influential because of their ability to affect corporate reputation. Improved corporate reputation is considered possible when the interrelationship between stakeholders and suppliers is defined by mutual gain (Hill et al 2010). The development of this interrelationship is considered possible when the organization through its policies provide platforms that ensure and enhance effective management of resources with the goals of realizing organizational goals and objectives (Robbins et al 2013). Etihad Airways is a company that operates in a highly competitive market. This means that the success of the organization is highly dependent on the nature of relationship shared by its stakeholders and suppliers. The stakeholders will only develop positive behavior towards the company and its suppliers when they are engaged in different but crucial decision-making processes that involve the acquisition of supplies from the supply chain (Ross 2013). This means that it is the responsbility of Etihad Airways to ensure that the procurement process transparent and geared towards the acquisition of supplies that enhance the quality of services provided by the organization to its customers. Furthermore, through an effective and inclusive procurement process, it becomes possible for the stakeholders to consider the suppliers as vital players in enhancing organizational success considering that they have the responsbility of facilitating the organization with resources that are considered crucial for its operations (Robbins et al 2013). Supplier behavior can also be influenced positively when the organization through its stakeholders introduces policies that target effective and highly operation supply chain. Etihad Airways sources its supplies from varieties of sources with the objective of ensuring quality and affordability for its customers. This means that for the supplier to build a positive and trusting relationship with the company, it must demonstrate through its procurement that it is involved in a transparent and accountable process aimed at maximizing on the available opportunities for improved service delivery (Ross 2013). By creating a transparent environment for its suppliers through the efforts of its stakeholders, Etihad Airways will not only improve on its corporate reputation but also improve on its competitive advantage in terms of the development of an effective supply chain network that incorporates the interest of its stakeholders and those of its suppliers (Waters 2014). QUESTION 1(b) Creating approaches for developing work groups (teams) in Etihad Airways Teams play a contributory role in the creation of positive and effective working relationships between an organization, its stakeholders, and suppliers. Through teamwork, the management at Etihad Airways, through the input of its stakeholders has the ability of engaging in informed decision-making processes and this is crucial in enhancing organizational culture and practices that play the role of improving on the possibility of realizing organizational goals and objectives (Weick 2012) Teams are considered essential in the success of Etihad Airways because it contributes to the development of structures that define the operations of the organization. These structures are often developed based on specialization and division of labor, which ensures that teams are assigned responsbility according to their professional and skill proficiency (Pettigrew, 2013). The development of these teams is based on Tuckman’s model of team development, which provides a description of various stages of team development with each stage determining the nature of relationship between such groups and other parties. According to Tuckman, these stages are considered important because they outline the conflict and behavioral standards that teams must experience to realize optimal performance (Pettigrew, 2013). Forming stage This is the first stage of team formation and it is often characterized by orientation where members begin developing an understanding of the team members and their capabilities. It involves the actual generation of an idea to form the group, laying down the objectives and missions towards group formation. The team leader plays an influential role at this stage in providing direction to the members. Essentially, this stage determines the culture of the group. The process of group formation needs to identify the need to create a working environment with the stakeholders and the suppliers at this stage by formulating policies and engagement framework (Pettigrew, 2013). Storming Stage This is the second stage in group formation and is characterized by conflicts. The differences in ideologies, opinions, and perspectives in group members are displayed in the storming stage. It is essential in integrating the varied opinions and ideologies on the engagement framework between the particular group, stakeholders, and the suppliers (Monczka at al., 2015). Norming Stage This is the third stage and is attributed towards settling down the differences and the variances existing within the members. It is the stage where minds and heads are met in togetherness. In the norming stage, members get to realize the common points of agreement towards the bigger picture of realizing the objectives of the group. The need to build and create a working environment with stakeholders and suppliers need to form part of this stage. A realization of that need is instrumental towards developing a positive working and relations culture in the organization (Kotter and Cohen, 2012). Performing Stage This is the last phase towards group formation. It is essential in realizing the objectives of the group by initiating actual performance of the group activities. It is an essential phase since it determines the failure or success of the group’s activities. The performing stage is characterized by executing the roles of the group and achieving the focus of the group. The role of ensuring that the group activities achieve a positive working relationship with the group and stakeholders as well as suppliers is executed at this stage. Such activities involve maintaining effective communication with suppliers and stakeholders, meeting business obligations when they fall due and instigating proper policy framework in all cases (Kotter and Cohen, 2012). Etihad Airways prefers the Tuckman’s model due to its phase-to-phase stage of building a team and comprehension of company objectives at each stage. The process of ensuring that a working environment exists in the company requires the initiatives and phases of this model. Teams would play a significant role in developing a working environment at Etihad Airways. Further, the adoption of the Tuckman model would bring a positive impact towards having an elaborate and sequential construction of the working framework and environment (Cummings and Worley, 2014). Recommendations to improve relationship with suppliers and stakeholders The company needs to create an efficient channel of communication between its suppliers and the stakeholders. For the stakeholders, there is need for the provision of consistent information regarding organizational performance in terms of delivering on its objectives and information on return on investment. They also need regular communication on the factors affecting the company. These requirements compel the company to improve on the channels of ensuring that the stakeholders benefit from company information. The suppliers regard proper information channels to make them receive information on matters about the items ordered, required, payments and deliveries (Monczka at al., 2015). A proper channel of communication also ensures a smooth running of the activities within the company. Etihad Airways must automate the running and procedures of the company by integrating the recent technological developments in the industry. Due to the intense and busy schedule that defines operations within Etihad Airways, it is essential to introduce technologically efficient automated processes, which will promote an effective technique of executing responsibilities between the company, stakeholders, and suppliers. By automating the procurement system, it will be possible for Etihad Airways to make requisitions for prompt deliveries and payments for services rendered. Furthermore, the automation of operations will also enhance the quality of interactions within the company (Cummings and Worley 2014). There is need to improve on the quality of management the management at Etihad Airways. Etihad Airways is one of the airline companies with a robust and progressive management. Usually, the process of policy formulation stems from the management level and cascades to other functional units or departments of the company. The role of policy formulation, therefore, requires the institution of an efficient and robust management structure, which addresses the wants of the stakeholders, suppliers, and strategies on better working relations (Waters and Rinsler 2014). The existing structure in the present administrative style is responsible for all the major and strategic decisions. Therefore, the effectiveness of this level of management requires a good leader with desired qualities towards change implementation and management. Besides, it requires proper planning initiative to foster a positive working relationship between Etihad Airways and its suppliers and stakeholder. This paper recommends for the placement of a leader with desired qualities and characteristics and one with the desire to build a working relationship between the company and other key partners such as the stakeholders and suppliers (Cummings and Worley 2014). QUESTION 1(C) Demonstrating leadership qualities relevant in guiding stakeholders and suppliers Leadership style embraced by the management at Etihad Airways is critical in the determination of the most effective technique of managing the relationship between the company, its stakeholders, and suppliers. There are different leadership approaches that can be used in enhancing the creation and promotion of a positive working relationship. Consultative approach to leadership According to the works of contingency theorists, Tannenbaum and Schmidst in their continuum of leadership behavior, the leadership style embraced by an organization is often dependent on the goals of the organization, the degree of authority controlled by the management and the area of freedom that is available for non-managers (Hill & Jones 2010). Etihad Airways operates in highly competitive markets and its ability to realize success is dependent on the ability of the management to embrace a consultative leadership approach that embraces the input of its stakeholders and suppliers (Hill & Jones 2010). Through the consultative approach to leadership, the management will be involved in the process of identifying existing organizational problems and presents it to the group of suppliers and stakeholders. Upon presentation the management will be involved a consultative platforms where they will invite possible suggestions and advice before making the final decision. The objective of this leadership style is to ensure that all the players are involved in the decision making process. This approach to leadership also enhances the possibility that the stakeholders and suppliers will be more active in executing their organizational responsibilities because of increased level of involvement in organizational operations (Dreachslin et al 2013)... The consultative approach to leadership ensure that non managers such as suppliers and stakeholders form part of the group that increases the repertory of the manager in terms of the development of possible solutions to an existing problem. This will help Etihad Airways to capitalize on the knowledge and experience of these players to develop an expanded list of alternatives as a technique of enhancing the possibility of devising the best approach towards addressing organizational issues and challenges (Cornell 2013). Motivation theory According to Aldefer, the ability of an organization, through its leadership to ensure effective organizational operations is by identifying and satisfying the diverse needs of its stakeholders. This involves developing policies and techniques of satisfying the existence needs, which include the material and physiological desires. Relatedness needs such as those focusing on social and external esteem must also be satisfied and address growth needs of self-actualization and internal esteem (Pettigrew 2013). According to the achievements motivation theory by Mc Cleland, every member of the society is motivated by the need for achievement, affiliation, and power, which are demonstrated differently depending on the dominant behavior. For Etihad Airways, it will be crucial to develop policies that target the satisfaction of the need for achievement to enhance stakeholder, supplier, and organizational gains (Kotter and Cohen 2012). In his two-factor theory, Fredrick Herzberg asserts that there are factors that cause job satisfaction and those that enhance dissatisfaction. This makes it important for Etihad Airways to assess the existing intrinsic and extrinsic motivators with the objective of promoting those that enhance satisfaction as a technique of improving on organizational performance (Krogerus & Tschäppeler 2013). QUESTION 2 Change at Etihad Airways Example of change at Etihad Airways The process of streamlining the procurement and supply management at Etihad has been enhanced by the introduction of the Supply and Procurement (SAP) cloud based Ariba solution. This is an automated system, which will play the role of the sourcing, and supplier information management solution that will ensure the delivery of state of the art technology that enables the airline to streamline and automate its source to contract process and an efficient integration of new suppliers (Monczka et al 2015). Reasons for change The airline industry is populated by the existence of numerous competitors such as Emirates Airlines, which have made the market highly competitive for other companies such as Etihad Airways. However, the introduction of Ariba Solutions will facilitate the development of new capabilities and processes that will provide Etihad Airways with a clear visibility into its contracts and spends. Furthermore, it will be crucial in improving the relationship between the stakeholders and the suppliers because the former will be supplied with updated information on all supplier activity. Ariba solutions will also play a role in improving workflow within the organization through the institution of a virtual tender board and contracts approval procedures. The objective of this platform will be speeding up decision making in the procurement process, enhance the automation of purchase orders, and ensure the reduction of paper based activities. Furthermore, the development of the Ariba portal will also increase the organizations visibility and ability to access global suppliers hence improving on its competitive advantages Approach used in implementing the change In the implementation of Ariba Johnson, Scholes and Whittington’ (JSW) model of strategic planning in the introduction of change. This model consists of the elements of analysis, choice, and implementation (Hsin et al 2013). For Etihad Airways the process of implementing Ariba solution involved the understanding of the lineal and interdepended between these elements. In the analysis process, which involves strategic position, Etihad Airways assessed its environment in terms of the opportunities and threats, organizational capabilities in terms of strengths and weaknesses and the expectations and power of stakeholders. The strategic choice of Ariba solutions followed from the findings of strategic analysis which were based on the generation of strategic options, evaluation of the options and selection of Ariba solutions as the best alternative for streamlining supply management (Langley et al 2013) The implementation of Ariba solutions was based on the ability of the organization to restructure its supply and procurements processes, and the existence of structures that could accommodate strategic implementation of the change process with limited negative effects on the organization (Liu et al 2011). 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