Change Implementation in Etihad Airways - Assignment Example

CIPS 2015 – 2nd BATCH Implementing Changes ID# 005581760 Table of Contents Table of Contents 2 Question 1 (a) 3 Dealing with conflicts in Etihad Airways stakeholders and suppliers; 4 Influencing Behaviors 5 QUESTION 1(b) 7 Creating approaches for developing work groups (teams) in Etihad Airways 7 Recommendations to improve relationship with suppliers and stakeholders 9 QUESTION 1(C) 12 Demonstrating leadership qualities relevant in guiding stakeholders and suppliers 12 Traits of leadership 12 Leadership Styles 13 Approaches to leadership 14 Motivation Theory 15 QUESTION 2 17 Example of change at Etihad Airways 17 Reasons for change 18 Approach used in implementing the change 19 Lewin changes model 19 Recommendation 19 References 21 EXECTUTIVE SYMMARY A positive working condition is essential for stakeholders and suppliers to effectively engage with a company. The creation of such an environment requires adoption and management of new changes among other practices. This paper focuses on the procedures essential for creating a positive working environment for the stakeholders and suppliers of Etihad Airways. This includes the adoption of Ariba technique as the best strategy within the Supplies and Procurement departments. The paper made finings on the existing working relationship between various procurement teams and the stakeholders. It further recommended for the creation of Ariba system, adoption of trait leadership and also the use of conflict resolution mechanisms to improve the existing working environment in Etihad Question 1 (a) How to promote positive working relationship with stakeholders and suppliers of Etihad Airways The developments in the corporate world continue to provoke and prompt an array of changes regarding the relationship of an organisation with its stakeholders and suppliers. These two categories of people form the backbone upon which the success of a company rests. Stakeholders contribute significantly regarding resources and advice towards the running and operations of an entity. Similarly, the suppliers contribute to such performance by furnishing the requisite materials and items to a company. Therefore, a better working relationship aims at promoting the ultimate performance and activities of a given organisation (Langley et al., 2013). Etihad Airways stands out as one of the progressive airlines in the world. It integrates modern technology in the performance of its operations. Similarly, this airline company uses various social and corporate techniques so as to build a strong relationship between its operations and the suppliers. The stakeholders also form a central part of the performance techniques of the company. A positive working relationship can be improved by the following premises; Dealing with conflicts in Etihad Airways stakeholders and suppliers; The stakeholders and the suppliers often interact with the procurement department at Etihad Airways on a regular basis. However, the interaction is often prone to misunderstandings especially on the basis of company policy and operations. The procurement environment at Etihad Airways consists of different teams which normally carry out various roles. The process faces disagreements within the various teams and lack of understanding with the company’s suppliers and stakeholders. One way to establish a proper means of managing such conflicts is through involving the stakeholders and suppliers in the procurement activities of the company. The different teams within this department are always in charge of ensuring that the process of procuring equipment and services needed in the company follow the right processes and procedures. It’s always common to experience disagreement on the procurement policy and practice applied especially on the capital assets and commodities used in Etihad Airways. The solution out of this conflict, therefore, is to ensure a close coordination and involvement of suppliers as well as the stakeholders in executing the company’s policies (Majchrzak and Markus, 2013). A positive working environment can be created in this functional department through establishing a conflict resolution mechanism. This involves having a committee comprising representatives from the teams, the stakeholders and the suppliers. The conflict resolution committee is responsible for addressing some of the concerns and differences within the company (Langley et al., 2013). Besides, it’s essential to establish a positive working environment by implementing the organizational culture within the procurement department. Etihad Airways is one of the reputable companies and functions within the premises of inclusivity and objectivity. The strategic plan of the company equally provides for the promotion of inclusivity of stakeholders, suppliers and other external parties in promoting the success of the company (Benn et al., 2014). Therefore, the best way to ensure conflict management is to inculcate the principles of inclusivity so as to take care of the interests of every member. For example, recognizing the participation and position of the suppliers in determining the success of the company will imply that the procurement teams have proper communication and engagement with the suppliers and stakeholders. Influencing Behaviors Behavior influence is an integral part of managing the relationship existing within a company’s teams, departments and various stakeholders. The relationship which our team within the procurement department has with the suppliers has influenced significantly the manner and behavior patterns in the company. Presently, the suppliers have adopted a positive relationship with the company due to the manner in which the teams and the procurement department functions. Prompt and timely payments for various items procured by Etihad Airways are normally made to the suppliers. Besides, the positive relationship which exists in the company teams has ensured that the suppliers deliver the required items to the company on a timely basis. The behavior influence has equally extended to the way members relate with the supply teams that have been cordial and friendly. (Hsin Chang et al., 2013). One of the ways through which the procurement teams have influenced behaviors is to have a prompt response towards the obligations of the company to both the stakeholders and the suppliers. The stakeholders have an interest in the airline by investing in the running of activities. Therefore, they have a due expectation of returns from their investment regarding dividends and also need prompt information regarding the company (Kotter and Cohen, 2012). A positive behaviour and a working culture will be building if the company respects and promptly responds to such obligations to the stakeholders. On the other hand, the suppliers have an interest in the airline in regards to the materials and items supplied. They have a duty to make supplies and receive payment for the particular items supplied. Therefore, the airline needs to influence a positive behaviour and culture of making payments promptly and as they fall due. This promotes trust and a better working relation. It’s essential that the management of the company develops a better procurement, supply and payment mechanism so as to address any lapse that may result in the entire process of engagement (Hsin Chang et al., 2013). A positive working environment has been enabled and built through the initiatives of the initiatives of various teams in the company. The procurement department, in particular, has influenced the relationship existing between the suppliers and the company in general through proper payments and contract agreements. This has seen the peaceful and positive working relationship that has persisted in the company QUESTION 1(b) Creating approaches for developing work groups (teams) in Etihad Airways Teams contribute significantly by promoting a positive working environment between the company, stakeholders and the suppliers. The working groups within Etihad Airways have a role in contributing towards decision-making processes and influencing policies. Normally, the teams exist out of the kind of structure existing within the company. Etihad Airways has existed and promoted a more elaborative structure in which every team play a particular ole towards advancing particular delegating work and decision-making initiatives. Overall, these working groups create an influencing culture within the company (Langley et al., 2013). The structure provides for the formation of the working groups at different levels to aid performing of activities and contributing towards the existing policy formulation and implementation activities. The existence of the workgroups in Etihad Airways depends on the particular approach which brought them towards existence. In fact, the school of thought behind the formation of a particular team influences the manner of engagement and activities (Robbins et al., 2013). The particular teams within Etihad Airways have the objective of ensuring that a positive working environment and relationship exist between the company and other parties such as suppliers and stakeholders. It development of these work groups is premised on Tuckman’s model. This model describes the various stages which each determine the nature of relationship between such groups and other parties; i. Forming Stage This is the first phase in the process of group formation. It involves the actual generation of an idea to form the group, laying down the objectives and missions towards group formation and setting out the rules of engagement. It also entails familiarisation among the members of the groups. 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). ii. Storming Stage This is the second stage in group formation and is characterised 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). iii. Norming Stage This is the third stage and is attributed towards settling down the differences and the variances existing within the members. It’s the stage where minds and heads are met in togetherness. In the norming stage, members get to realise the common points of agreement towards the bigger picture of realising 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 realisation of that need is instrumental towards developing a positive working and relations culture in the organisation. iv. Performing Stage This is the last phase towards group formation. It’s essential in realising the objectives of the group by initiating actual performance of the group activities. It’s 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 also instigating proper policy framework in all cases (Kotter and Cohen, 2012). One of the teams which exist in the company is the procurement team which is available within the procurement department. This team is responssible for carrying out all procurements activities for the company. Such activities include item requisition, receipt, validation and payment processing. The formation of this team has been following the Tuckman’s model since the inception of the company. Presently, the team is at the Performing stage where it’s currently executing procurement roles on behalf of the company. (Cummings and Worley, 2014). Recommendations to improve relationship with suppliers and stakeholders The first recommendation relates to having an efficient channel of communication between the company and suppliers as well as the stakeholders. Stakeholders require consistent information regarding the performance of the company and other issues relating to their investments. The equally 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. Also, 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. The second recommendation regards the need to automate the running and procedures of the company by integrating the recent developments in the industry. Due to the busy nature of operations within Etihad Airways, it’s essential to have a proper and efficient automated process which also promotes quick activities between the company, stakeholders and suppliers. For example, an automated procurement system that makes requisitions for prompt deliveries and payments for serves rendered. Also, the automation of activities also helps in enhancing the quality of interactions within the company. The other recommendation relates to improving the management of the company. 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 address the wants of the stakeholders/suppliers and also 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 also one with the desire to build a working relationship between the company and other key partners such as the stakeholders and suppliers QUESTION 1(C) Demonstrating leadership qualities relevant in guiding stakeholders and suppliers Stakeholders and Suppliers play a critical role in the company. They contribute towards financial investments of the company and furnish the items, equipment and materials required respectively. Therefore, the management must ensure that it builds a positive culture which accommodates and ensures that both suppliers and stakeholders relate effectively with the company. Leadership quality is essential in a selecting a particular leader for the running of operations in the company. There are several attributes of leadership are essential in promoting such positive working culture; Traits of leadership Some leadership traits are normally beneficial towards guiding suppliers and stakeholders of the company. Honesty and integrity is a beneficial trait which promotes the nature of relations in which a leader engages. An honest leader will possibly engage with other people in an honest manner. Suppliers will require an honest leader who fulfils the obligations of the company and stakeholders will have equal integrity and honesty to have confidence in investing in such a company (Brown, and Osborne, 2012). The other trait quality is Emotional Stability which requires a leader to have the ability to contain stress and frustration. It’s an important quality to enable the company to achieve its targets despite profit declines or operational bottlenecks. Such a quality is essential for suppliers and stakeholders top gain confidence and continues with their business engagement with a particular company. Trait leadership demonstrates the ability of a leader to use his natural and inborn trait qualities in advancing leadership expectations. Other traits such as dominance, social boldness, compulsiveness, enthusiasm among other traits empower a leader to build a strong and positive bond between the company and other trade partners. They equally promote a sense of leadership requirements in promoting service delivery. Application of Trait theory in the company Eithad Airways is one of the leading airline companies with proper management structures. Normally, the company follows normal recruitment patterns to get the relevant staff. A gap exists in the application of trait theory in determining the leadership at the Accoiunt8ing and Procurement departments. Previously, many managers of these two departments have been implicated in corruption and dishonest practice due to the magnitude of transactions carried out in the departments. Trait leadership would be esen5tial in these departments. The theory would assist in getting leadership which is embodied with the virtues of honesty and acco8untibaolity as part of the trait requirements. These traits are quite significant in the Accounting and Procurement departments and they are part of what the company requires (Brown, and Osborne, 2012). Leadership Styles Leadership styles employed within an organisation determine the extent to which a leader achieves the aims and obligations of such an organisation. Some styles of leadership are deemed as progress while others are termed as retrospective in nature. One of the desired leadership styles in advancing the relationship of stakeholders and suppliers with the company is referred o as transformational style (Kotter and Cohen, 2012). This is aimed at integrating new and better policies in the leadership process towards achieving a particular aim. It involves doing things differently and separately from the normal course of practice. Guiding suppliers and stakeholders by integrating them into the culture and practice of the company is an example of the attributes of this style. The other significant leadership style beneficial in underscoring a positive working environment with suppliers and stakeholders is the democratic style. This style of leadership recognises the input and the ability of every individual especially towards policy formation. Democratic leadership is beneficial in allowing the stakeholders to participate in decision-making activities and equally receive their share of benefits. Also, it enables the suppliers to have an input in their nature of relations with the management of the company. This, therefore, helps in guiding the suppliers and stakeholders to a better-working relations with the management of the company (Burke, 2013). Approaches to leadership Other approaches such as contingency, behavioural and functional approaches to leadership have a significant role in determining the achievements of such leadership. Companies such as Etihad Airways require a leadership culture which best fits into the strategic objectives of the company. In particular, the approach needs to build a positive working environment between the company and other partners such as suppliers and stakeholders. Some of those leadership approaches include; i. Blake and Mouton approach-This approach made a comparison between concern for people and concern for production. The creation of a good association between the stakeholders and suppliers demonstrate concern for people within the company. ii. Aldair’s Action-centered leadership-this approach of leadership focuses on the need to strike a balance between the individual needs; the task performed and the team. It's, therefore, essential that the needs of stakeholders and the suppliers form an integral part of the activities of the company in the articulation of the desired objectives (Waters and Rinsler, 2014). iii. Tannenbaum and Schimidt approach-this leadership approach showcases an array of leadership which is dependent on the authority exercised by the manager and the autonomy present to the followers. These two variables affect decision-making. These two factors determine the kind of decision made and the nature of such decision towards meeting the demands of the company. Motivation Theory The leadership dictates the kind of motivation within the company. Etihad Airways needs to build on the precepts of motivation theories to determine the need for creating a positive working environment with stakeholders and suppliers; i. Alderfer’s ERG Theory: This theory argues that needs are classified into growth needs, relatedness needs and existence needs. The theory asserts that the satisfaction of one need build into the next need and so forth. This requires a leader to identify the particular type of need which meets the objectives of the company such as relatedness needs for stakeholders and suppliers in the case of Etihad Airways (Brown, and Osborne, 2012). ii. McClellan Acquired Needs Theory; this theory asserts that people have Need for Achievement, Need for Affiliation and Need for Power. People have preferences to a particular level of needs. Therefore, it's essential to understand the level of need to meet for the accomplishment of the objectives of the company (Ross, 2013). Herzberg tow factor theory; it's premised on factors whose absence motivates while their presence has no effects (hygiene factors) as well as factors whose presence motivates while their absence has no effects (motivators) (Burke, 2013). QUESTION 2 Change at Etihad Airways Example of change at Etihad Airways The change brought within the supply, and procurement department of Etihad Airways is the introduction of Ariba technique. This is a technology-dependant technique which aids in executing efficient sourcing and procurement activities. It allows for scrutiny and management of raising requisitions, spending on orders, raising Purchasing orders and budgeting processes. It also aids in managing supplier contracts and documents all necessary information regarding supply activities. This technological achievement has enabled an efficient workflow of activities and events in the company. Similarly, it has expanded the window of transparency through the procurement process of Etihad Airways. The procurement function of any company with a large nature of transactional activities requires the building up of an efficient technology-based infrastructure so as to id in offering oversight roles. Etihad has recently seen improvements in the manner with which it executes its procurement roles. The improvement has further been reflected on the profitability witnessed in the company due to the extent of safeguard on the financial property of the company. Therefore, Ariba technique has significantly been attributing to such significant improvement and changes that have procured in the company (Burke, 2013). The decision of the company to advance the change and bring into force the Ariba technique was informed by the need to divorce from manual systems and integrates rthe use of technology in performing the procurement roles. The demerits of manual systems were visible in the time lags and the high losses experienced in the past Reasons for change The change process within the supply and procurement department was necessitated by the need to develop a more transparent, quick and efficient system. Previously, the procurement activities took a long period to be executed. The process of raising an LPO, receiving the POs, actual deliveries and making of payments were done in the manual and slow procedures. The introduction and implementation of Ariba sought to automate the entire process through advancing a procurement template. The template expanded the execution of all activities in regards to procurements and also led to a more transparent process to prevent any loss in the procurement process. The change process into the adoption of Ariba technology passed through various important stages. The stages were meant to ensure that the members of the procurement department had full knowledge on the system change and became well trained to execute their role using the technology. The various teams within the procurement department are currently able to use the Ariba technology quite efficiently to perform their roles. Besides, this level of training and making the entire team well acquainted has eased the use of Ariba and reduced probability of losses using the system (Langley et al., 2013). The successful implementation of Ariba technique brought a significant relationship between the stakeholders, suppliers and the company. The suppliers can have an efficient flow of the procurement process and process their timely payments. In return, the stakeholders can get their true returns from investing in Etihad Airways and are equally in a position to access supplier information relevant for their investment activities (Burke, 2013). Approach used in implementing the change Lewin changes model The implementation of Ariba technique in Etihad Airways was determined to follow the Lewin’s model. It followed the following stages; I. Unfreezing; this is the initial step in the process. At this stage, the company sought to convince the staff, suppliers and stakeholders of the need to have the change process. This involved identifying the flaws in the previous manual system and educating the company on the benefits of the new change (Brown, and Osborne, 2012). II. The change: this is the actual communication of the new technique to the company. The process involved educating the staff, shareholders and suppliers on the actual concepts of the system being adopted. III. Refreezing: this involves the establishment of the new technique. It pertains to reinforcing the new technique into the company. Etihad Airways sought to use rewards to the staff as a means of promoting the adoption of the system. Recommendation This paper recommends that Etihad Airways establishes a conflict resolution committee so as to help in addressing any issues of concern among the stakeholders or the suppliers. Some issues such as technically disagreements can emerge which threaten the positive working relations. The establishment of such a committee will help address to such conflicts, address them and come up with proper management strategies top prevent any future occurrences. This paper also recommends of more automated techniques in other departments such as sales and marketing. This will ensure that the company has an automated network that has input, process and output across all departments for an easy transaction. References Benn, S., Dunphy, D. and Griffiths, A., 2014.Etihad Airwaysal change for corporate sustainability. Routledge. Brown, K. and Osborne, S.P., 2012. Managing change and innovation in public service Etihad Airwayss.Routledge. Burke, W.W., 2013. 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