What is organizational change
Change is evident among various businesses in the world and occurs in many ways. There are two primary drivers of change, external that occurs outside and internal that happens from within the firm. In the internal aspects, the first element that can be analyzed are the employees. After Planet Air Travel had been privatized, they went ahead to change the working conditions of the staff. The employee morale, which is an internal driver was at stake given the change that had been introduced to the company. As such, the salaries of the cabin crew and pilots were increased significantly by thirty percent. On the other hand, the ground crew and other frontline and support staff got a twenty-five increase. Moreover, the working terms and conditions were also altered in that their working hours were reduced as an internal driver for the business (Ramdhony, 2013). In this way, the staff would not have a negative attitude towards the entire privatization process but would instead be receptive. They would also put in more effort and strive to do the best in their work positions as well since the salary increments act as a motivation (Glazunov, 2013).
Finance is one of the major aspects of business. A company cannot operate efficiently without the right funds, and as such, they are directly related. The management of finances is quite influential in the entire business organization. The sudden rise of the salaries may be defined as an action that was not well calculated before being fully implemented. As such, Planet Air Travel did not manage the global financial crisis in an efficient manner. They did not have a financial cushion (Anderson & Ackerman-Anderson, 2010). With the financial crisis came the aspect of competition. In most cases, it is usually brought up by globalization. However, in this case, Planet Air Travel faced competition as a result of the financial global financial crisis. The rival airlines began to offer terms and conditions of employment that were less favorable. This was in an attempt to survive through the financial crisis, and this would eventually force Planet Air Travel to review their terms and make them less favorable as well (Ramdhony, 2013).
In this case, the economy is one of the most relevant external drivers. There is a direct link between Planet Air Travel and the economic environment as well. It is evident that the occurrence of the global financial crisis affected the firm in a negative manner. This is as a result of an increase in prices of fuel and a huge rise in airport tax (Glazunov, 2013). Furthermore, the financial catastrophe also resulted to an increase in the prices of merchandises that were linked to air travel. These were items such as beverages and food as well as other goods that are meant to make the passengers comfortable (Ramdhony, 2013). In the end, the effect of the financial crisis to the economy resulted in a decline in the profit margins and revenues as well.
In the air transport sector, being eco-friendly is an important factor to consider while conducting business operations. It is essential for them to ensure that they reduce the rate of carbon emissions and thus go green in their activities (Kakazoukis, 2011). Planet Air Travel faced pressure to invest in ‘green technologies’ that would entail elements such as fuelling their airports with ultra-low sulfur diesel gas. Moreover, they would also need to take actions such as mounting the electric hand dryers to replace the paper towel dispenser (Lyster, 2013). All the efforts to ‘go green’ would mean that Planet Air Travel would need more funds which would be difficult to obtain as a result of the global financial crisis that led to a decline in their revenues and profits margins.
Examples of organizational changes
Planet Air Travel transition to a private organization is one that resulted in a comfortable and more impressive working environment for all the workers. The management in implementing changes failed to align them with the top priority goals of the company. This was as a result of executing the changes only in the salaries and working terms and conditions and not any improvement in the tools to conduct their duties. As such, the employees of Planet Air Travel and the information technology department did not have the right instruments to manage the change. In any form of change that takes place in a firm, it is important to track the progress and conduct an evaluation of it as well. Planet Air Travel did not come up with a way of tracking the progress after they were privatized. They were too focused on implementing changes in the working environment and failed to come up with a parameter that would ensure there was development in most of the departments or sections of the firm. Once the global financial crisis occurred, the business was critically affected such that their revenues and profit margins declined. They further incurred a loss of ten million Euros and the losses per day were over 50, 0000 Euros (Ramdhony, 2013).
On the other hand, after the global financial crisis has affected the firm in a negative way, they want to bring up new changes to continue operating. Forming a merger with Air Nimble means that they would have to reduce the number of employees and improve the terms and conditions of working that would, in turn, affect the remaining ones regarding motivation to work in an undesirable manner. The quick change in the working conditions of the workers has further been described as autocratic as a result of the style of leadership and the intimidating culture in the organization. The performance of Air Travel is thus likely to be critically affected as the staff will not have the same morale in their various duties. Furthermore, they would not be fully engaged in working together and fully contribute to their respective posts. The trust of the workers is also at stake as a result of the shift in their terms and working conditions. Planet Air Travel decisions are short-sighted since they are in a time of hardship and therefore the organizational trust will be ruined (Ramdhony, 2013).
Effects of organizational change on employees
The proposed changes in the terms and working conditions of the workers are likely to be received in a negative way. The union reacted in a manner that depicted anger and approval at the same time. They did not have a problem with the decision by Planet Air Travel to form a merger but were not contented with the mandatory cuts in jobs and the changes that had been introduced in the terms and conditions of employment. The new method depicted a dictatorial form of management of the company (Ramdhony, 2013). The employees are likely to conduct a go-slow in their various duties in an attempt to get the attention of the management into considering a revision of the new changes that have been introduced. This form of reaction will put pressure on the management as it will affect the quality of service delivery to clients (Rutigliano, Wedderburn & Beckem, 2017).
The development of fear is also a common aspect that is likely to be developed by the employees. In this case, they will raise questions about their job security as a result of the merger that is to be formed with Air Nimble (Ramdhony, 2013). Job satisfaction is also at stake in this case as a consequence of the variations in the requirements of employment. They are likely to get a less form of satisfaction in their duties. Moreover, questions will also be raised due to the demotions and pay cuts that have been proposed. The development of severe fear is also likely to result among some of the workers believing that they are proficient at making the change. They may even end up developing health problems as a result of stress or panicking (Bateh, Castaneda & Farah, 2013).
Hostility is likely to develop among the workers due to the changes of the status. The anger may be noticeable in the form of an emotional outbreak. It may, however, be repressed in which case an employee who has worked in the company for a long time suddenly quits. Additionally, the frustration may even result in the member of staff raising questions in public about the leadership of the enterprise. This is especially if an employee who is already angry is assigned to a new supervisor (Hayes, 2014). The change efforts by Planet Air Travel may further be sabotaged by the workers through gossiping and double crossing. This may be prompted by an employee who has been angered or even mismanaged by the company leaders or those in authority (Travis, 2017).
There may be positive reactions among some of the workers who may choose to remain neutral or marginally positive to the changes. However, in this case, it may not be possible since the changes are not being managed in an efficient manner. As such, most of the employees are not likely to participate in the new policies in a reliable way (Wittig, 2012). Moreover, Planet Air Travel has not developed an efficient communication process of informing the staff of the changes. The possibility of terminating the contracts of most of the workers is not a wise move since they have not considered the effect it will have on their personal lives (Ramdhony, 2013). As such, it is advisable to inform them in advance and prepare them such that they will even have ample time to look for other means of survival should their contracts be terminated.
There is a group of employees that may view the changes in an enthusiastic manner and as such embrace them in a warm way. These are mostly those who will have an understanding of what is going on with the economy and thus understand that the changes are necessary for the firm to survive. As such, the workers who are supportive of the process may be hard to let go in the course of terminating contracts since they can have a positive influence on the staff who are cynical of the proposed changes by the management of Planet Air Travel (Travis, 2017). It is, however, necessary to note that various reasons may have motivated the workers who may receive the change in a positive manner. These are such as more responsibility, status, personal satisfaction that may result from being a part of the other organization, Air Nimble. Furthermore, they may also see it as a way of developing better personal contacts and better working conditions in the newly merged company or if the firm joins the Proxima Alliance. The changes may also be welcome if it will make the job easier and thus less effort and time required as well (Genet, 2015).
It is thus evident that the reaction of employees to organizational change can be with micro-levels of acceptance and resistance as well. Their general response is also reliant on the feedback that will be stronger, that is either acceptance or resistance (Wittig, 2012). In this case, most of the workers are likely to resist the changes that are being introduced primarily concerning pay cuts, change in working terms and conditions and the sudden termination of contracts.