Organizational Change Management in Virgin Blue Airlines - Case Study Example

Name Professor Institution Title Date Introduction This report will cover various aspects in a company known as the Virgin Blue Airlines with its basis in Australia. It will also look at the changes that have taken place in Virgin Blue Airlines and the barriers to these changes. There are many changes taking pace in this company that help it to outstand in the flight industry and beat the stiff competition. We shall also look at the strategies that this company uses as it goes through many changes. We shall also analyze the history of this company so as to have a clearer picture about it and the changes taking place. Virgin Australian Airlines is the new brand name for this company which previously was known as Virgin Blue Airlines. It is an airline company which has its basis in Australia with Mr. Borghetti as its CEO. The formation of this airline company was in 2000 and it has undergone several changes since its inception to date so as to accommodate the changing demands in the market (Hireling 2007). It operates several flights within Australia and outside the country at lower costs and quality flight services. It is the best airline company in Australia and the outside countries where it operates. Its flights go to many holiday destinations in Australia and in other countries during the high and low seasons. The changes that have taken place in this company are many and their main aim is to improve its flight services to compete with other such companies in the world. The CEO of this airline company provides the best environment for changes though the management still faces many challenges as it implements these changes (Hireling 2007). This report contains the analysis of all these challenges and measure to counter them. We shall look at all these strategies for change and the challenges that the management of the company faces in this report. It is also important to note that most of these changes have had a positive impact on the organization. Barriers to organizational change Every organization needs change so that they divert from whatever they were doing in the past to adopt a new technique. This change is with the aim of making the organization better than it was before. The top management is usually responsible for developing these policies that call for change and implementing them to the other levels of management (Leban & Stone 2007). The top management faces many barriers in their efforts to introduce change in the organization. These barriers could be from the other members of the organization due to several reasons. Some of these reasons are either the management’s faults or other reasons. Some of the barriers to change in an organization are as follows: Failure to involve employees in the making of the change policies or strategies is a major source of barriers to change in the organization. This is because there is usually a negative attitude towards change in any institution. This is because the employees have a fear of how the change will affect them and are resistance to change. This is because there was no consultation during the process of making the policies for change. Employees in all organization should play an important role in such cases because they are directs of those changes that are to be made in the organization. This is to mean that they are the ones who are directly affected by most of the changes that take place in any organization. In some cases, the policies do not favor employees hence; they act as a barrier to the changes (Coghlan & Rashford 2006). A solution to this barrier is that employees should participate in the process of introducing change to the organization so that they get a sense of belonging to the change. Involving employees also means that they appreciate the need for change because they get the reasons for it and its positive impacts. Another barrier to organizational change is poor communication to the other members of the organization regarding the change. There should be proper strategies that the top management should use to communicate and implement the changes in the organization(Leban & Stone 2007). The mangers should clearly communicate to the employees how the change will affect them and the implementation of the change. It creates acceptance and clear understanding of the change by the employees. This will ensure that they get the need and reason for change so that it will be easy for them to adapt to the changes that they introduce. Most mangers assume that employees must agree with whatever policy they introduce in the organization. This is a wrong perception because communication has to be present for effective management in any organization. Lack of enough capital and finances to facilitate change is another barrier to change in many organizations. When finances are not enough to facilitate policies that call for change in an organization, then polices will fail. For instance in Virgin Blue airline company when they were introducing the policy of new uniforms for the employees (Coghlan & Rashford 2006). The company must have enough finances to provide the new uniforms to the employees so that the new policy is effective. This is because finances are the drive to change through using resources that will enable change. Using these resources means that finances must be available. Implementation of poor policies whose objectives are unclear to the organization is a barrier to changes in organization. This leads to failure of the change intended by the management. This will act as a barrier to the change in that the main aim of the change is unclear (Leban & Stone 2007). This means that there is no focus or direction that members of the organization are moving towards to achieve the change. Mangers should ensure that they analyze the policies that they intend to bring change in the organization so that they aim at achieving a specific goal. They should include these goals in the change so that they understand which direction they are moving towards. Therefore, both the management and the employees have a role to play in implementing changes in the organization. When every party plays its role effectively, they will be able to eliminate the barriers to change within the organization (Leban & Stone 2007). From the above discussion, the management should give the employees the change to be part of the change and in turn the employees should embrace change positively. That means that organizations will embrace change hence; making them better organizations than before. Compare and contrast the main theories, methods and techniques of organizational change management Mangers adopt techniques and methods of managing change in organization because of the barriers that they face to change. Managing change in an organization is a practice involving methods that should have a clear definition by the mangers (Cameron & Green 2009). The methods and theories aim at countering the barriers and fear of change among the employees in the organization. There are methods and techniques that the management adopts to ensure that changes in organization are effective and work according to the plan. There are several techniques that mangers use depending on an organization and its policies. Management of change in any organization is very essential because of the outcomes that it creates in the organization regarding changes. These theories are shown below, how they compare with each other and how they contrast each other. There are techniques that help in this practice of managing change by mangers in an organization which include: considering the present situation of the organization. This involves carrying out an analysis of the problems that the organization is having and looking for measures to solve the problem. This technique involves both the mangers and the employees in the process of carrying out the analysis. This can be done by enquiring from the employees any problems that they might be facing in the organization and getting possible solutions from them. The solutions to these problems act as the changes that the management will introduce to the organization. Another technique is coming up with an appropriate design of the future of the organization. This is done by looking at the situation after the adoption of the change in the organization. In this technique, you look at the implication that the policy could have on the finances of the organization, its structure and on the employees (Cameron & Green 2009). It ensures that the goals and missions of the organization are also put into consideration as they introduce the change to the organization. Carrying out an analysis is done at this stage so that they analyze whether the change will leave a positive or negative impact on the organization. This will ensure that the interest of all members and aspects of the organization are put into consideration. This technique ensures that managers effectively manage change by countering the barrier of ineffective communication of the policy bringing about change. The other technique is the final step of implementing change. This technique ensures that mangers are able to manage the change effectively considering all aspects of the organization. They ensure proper allocation of resources like finances to the organization as they adapt the change. They also create morale for the employees to adapt to the change so that the implementation process becomes easy. Mangers using this technique ensure that they explain to other members of the organization the nature of the change and its impacts and how to go about the change. This makes the process easy and enables the organization to meet its aim of introducing the change. The theories of change management also include some principles that mangers should use. This includes such things as involving all members of the organization in the management process. This means that they participate in the decision making process in some areas of the organization so that they contribute by giving their opinions and getting the sense of belonging. Another principle is effective communication between the top mangers and other employees in the organization to ensure openness in all activities. Communication is very vital in any organization hence; the need to cultivate it well (Cameron & Green 2009). The other principle is that of understanding the position of the organization and determining where it aims at being in the future. The period of the future should also be clear. For instance after a year, two years or so. This ensures that the management is able to manage the changes taking place in the organization effectively. Organizational change strategy These are strategies that enable proper and effective change in the organization by the management. There are several strategies that mangers can use to ensure change in an organization depending on the type and nature of change they want to implement. The strategy that a manger uses also depends on the policies of the organization regarding change and what theory, method and technique that the organization uses (Black & Gregersen 2002). Some of the strategies for change in organizations include advocacy for all members of the organization. We also have responsibility in terms of the roles that each member plays in the organization. Acknowledgment is another strategy for organizational change and commitment by all organizational members. In this case, we shall develop one comprehensive strategy for change for the Virgin Blue airline company to curb the problem of barriers to change and proper management of change in the organization. This strategy will help the mangers in managing organizational change since it is an important part of the organization. In this strategy, we shall look into the needs of the organization in terms of its policies, goals and missions and into the needs of all other employees in the organization. It is a comprehensive strategy because it aims at ensuring that change is effective in the organization and the implementation process is made easy. The organizational change strategy for the organization contains responsibility, advocacy and commitment to the changing policies. The adoption of this policy is because it is all rounded in that there is consideration of all aspects of the organization including the employees, the management and the goals of the organization (Black & Gregersen 2002). This strategy for organizational change includes ensuring that all employees who take part in the change are held responsible for effective implementation of the change. This means that there is accountability of actions among all employees responsible for the achievement of the change. This strategy will enable each member to play his role effectively so that the change implementation becomes successful. There is also advocacy in this strategy. Advocacy enables employees whom the change might affect to give their views on it. This means that they feel free to express what they feel about the change in relation to how it is going to affect them. If in their opinion the change will negatively affect them, then the management considers that. In case it is found that their opinions are correct, then there is no implementation of the change. Incase they give a positive opinion regarding the change, then the management adopts the change and this makes the implementation process easy because employees agree with it. Commitment is another aspect of this strategy. This aspect of the strategy ensures that all parties in the organization take active roles in the change management process. This aspect means that everybody in the organization participates in the process. This includes the top management and the lower levels of management in the organization participate in the implementation of the change (Black & Gregersen 2002). There should be commitment of all members of the organization so that the process becomes fast and easy. Commitment by all levels of management in the organization ensures a successful result of introduction of the change in the organization. The implementation process becomes difficult and unsuccessful if employees and management do not fully commit themselves to it. Communicating effectively the analysis, diagnosis and proposals for change to influence key stakeholders in and around the organisation Communication is key factor in influencing change in any organization both within and outside the organization. When mangers want to implement a new policy in the organization, they have to ensure that they communicate effectively to the employees and other stakeholders about the change. This will ensure an interactive process between the mangers and the other stakeholders in the organization regarding the introduction of the change. This effective communication ensures that the implementation of the change is successful or not. Any change that will take place in an organization affects both within and outside of the organization. Therefore, proper analysis should be done by the management to ensure that they communicate effectively with all other stakeholders in the organization. This communication involves giving them the chance to give their views and opinions regarding the subject of change (Black & Gregersen 2002). There should be consideration of their opinions and views in making the final decision as to whether to continue with the change or to stop. This will ensure that there is effectiveness in the communication because their views are put into consideration by the top management. Effective communication on the change also involves communicating about the change earlier to the stakeholders so that they get enough time to respond to it (Leban & Stone 2007). This means that the stakeholders have enough time to research about the change and do consultations so that their opinions are detailed and are to the benefit of the organization. Effective communication also entails disclosing all the details about the change to the stakeholders of the organization. This means that there should be transparency by the top managements as they disclose their plans on the policies that they intend to change in the organization. This will ensure that the management does not hide any important information from the stakeholders of the organization. Conclusion The company of Virgin Blue airlines has gone through several changes since its formation so that it competes effectively in the market. All these changes have had their impacts on the organization. The CEO of this company is responsible for the growth of the Virgin Blue airlines over the years. This is because he uses policies and strategies that are effective and he consults other levels of management in the organization. From the report given, this company has had many changes including the uniform change policy (Hireling 2007). The introduction of this policy aims at making the employees appear neat and presentable. The CEO believes that this acts as a way of attracting more clients to its flight industry. This policy became effective because there was the consultation of the employees as it affects them. There is also the change in terms of prices of the flights. All these changes taking place in this company are effective because of the strategies that the management uses to introduce and to implement them in the organization (Hireling 2007). Therefore, this company acts as a good example of how the use of strategies in organization helps in the success of its policies. The Virgin Blue Airlines in Australia is also an example of companies that introduce many changes that contribute to the success of an organization. In conclusion, mangers have an important role to play regarding introduction of change in the organization. They have to develop strategies to use to counter the resistance to change among employees in an organization. The policies that they use should be effective enough to ensure that it does not oppress the other members of the organization (Leban & Stone 2007). That means that their opinions in the organization regarding changes to be made by the mangers count. Mangers should give the employees the chance to present their opinions, especially those employees whom the change greatly affects them. Bibliography Hireling, M. (2007): The Australian Airline Industry and the case of OzJet-A strategic analysis report: GRIN Verlag. Black, J. S & Gregersen, H. B. (2002): Leading strategic change: breaking through the brain barrier: FT Press. Shani, A. B, Pasmore, W. A & Woodman, R. W. (2011): Research in organizational change and development: Emerald Group Publishing. Cameron, E & Green, M. (2009): Making sense of change management: a complete guide to the models, tools and techniques of organizational change: Kogan Page Publishers. Leban, B & Stone, R. (2007: Managing organizational change: John Wiley & Sons. Coghlan, D & Rashford, N. S. (2006): Organizational change and strategy: An interlevel dynamics approach: Taylor & Francis. Read More