2. Compare and contrast the structure and culture of both organisations and explain how both impact on their business performance?
3. Identify and analyse the motivational theories you believe management at each of your chosen organisations adopt and evaluate the effectiveness of both in motivating the workforce?
1. The two companies the managerial approaches that best suits the organization. The airways industry is not so fluctuating in any manner so the application of the managerial approaches do not change as frequently. Though, the pattern of use may vary with change in the labour force.
Shortfalls of Human resource approach at Cathay pacific airways:
1. Limited to classroom lectures: The HRM approach should include more training and development but it is actually confined to class room lectures and orientation.
2. Difficulty in assessing: The HRM approach is for the management as a whole and does not work for the organisation as a whole; hence it is difficult to assess the approach.
Shortfalls of scientific management at EasyJet airways:
1. The Scientific approach is a classical approach so it gives the whole authority to the supervisors and to the employees, so the employees find less scope to develop and are not flexible in generating new ideas.
2. The job of the employees becomes very monotonous and they face boredom after a very short time. The scope of changing the environment is very less. The pattern of job is the same every day.
3. Due to excessive specialization of the supervisors/managers, the employees cannot take their own decisions.
Shortfalls of Blue Ocean Strategy at EasyJet Airways:
The Blue Ocean strategy is fine strategy for many firms, but in case of others it is like a fast moving strategy, cost, leadership, differentiation or focus strategy may be far more successful. Bleu Ocean model is a theoretical model that was revelation for many managers. The employees have very less to do with the strategy as it is completely under the control of the managers. Of course, the strategy is designed keeping in mind the welfare of the employees. The strategy has to do very little with the employees.
2. Easy jet is has an organizational culture that is committed to develop a high performance culture and promoting employee engagement. The company believes in delivering excellent customer service. The organisational culture of Easy jet is friendly and positive. They aim to render the best services to its customers, in order to attain this aim they have maintained an excellent chain of communication with their employees. The employees enjoy working in the organization and the rate of absenteeism is slow.
Attendance rate of the staff
[SOURCE: (corporate.easyjet.com, 2015)]
The source showing the attendance percentage of the employees of Easy Jet shows the low rate of absenteeism and employee turnover rate in the organization. In the year 2012, the staff attendance was 95% and it rose to 96% in the year 2013. There was increase in the level of attendance in the succeeding year. The same goes with the rate of staff turnover rate. The staff turnover rate was 7.5% in the year and 6.5% in the year 2013. This shows a declining level of staff turnover, which means the employees are well satisfied with the management and its policies.
Recognition and Rewards to the employees:
The company offers a spirited reward package and salaries to its employees for good performances. The company focuses to provide its employees more cash benefits than fixed salaries. The incentive package includes a bonus that is driven by an annual performance, the company also provides benefits based on personal and company performance, it grants shares to its executives (McShane, Travaglione and Olekalns, 2012). The company based on the performance of the airline encourages its employees with good yearly bonus so that continue to be a part of the strategic development of the company (Shaw, 2011).
Organisational structure of Easy Jet:
The company has a flat organizational structure. There are very few hierarchical levels and symbols in the structure.
Sources (Corporate.easyjet.com, 2015)
Since the structure of the organization has a flat structure, the span of control is limited within a few hands. The authority to order is also low. This helps the organization in handling confusion of delegation. The work process is simple and easy to delegate (Mattes, 2011).
The impact of this organizational structure and organizational culture:
1. The organizational culture is simple and positive, they aim to achieve excellence and this obviously has a positive impact on the company.
2. Employees in the company understand the meaning of a cultured organisation.
Organisational culture at Cathay airways:
The organisational culture at Cathay airways is very collaborative. They have an employee assistance programme that supports its staffs. Information and counselling are provided to employees on work related issues, employee grievances, trauma etc. this employee assistance programme helps the company in being more attached to its employees (Flouris and Lock, 2009). In fact, Cathay airways are a very employee friendly organization that supports its employee. The company also has a huge employee retention capability (Cathay Pacific, 2015). The work cultural at Cathay airways promotes diversity, mutual respect and trust. This is not seen in all the companies in Hong Kong (Nyampong, 2013).
Australia 1% Canada 5% Hong Kong 51% India 2% Indonesia 3% Japan 6% Korea 3% Malaysia 6% Philippines 6% Singapore 3% Taiwan 6% Thailand 3% United Kingdom 3% United States 3%
Organisational structure of Cathay airways:
The organisational structure of Cathay airways is also flat. The companies in aviation industry generally prefer to have flat organizational structure. This organizational structure as mentioned above is very simple and easy to understand by the employees. The span of control is in few hands just like Easy Jet airways and the benefit is to both the employees and the organisations. The organisation does not have to spend much on getting huge paid executives and they do not face confusion of a huge organization structure (Buelens, 2011).
Leadership at the companies
Leadership at EasyJet Airlines Company is something that the company values. They believe that the success comes from the people within the organization. Thus the company ensures that it has capable leaders and managers who will drive the people to deliver results in the present and in the future. The company spends considerable time developing leadership teams and incorporating leadership qualities in the people. this is done so that he leaders of the company are able to understand the strategies of the company. Moreover it allows the company to understand the challenges associated with the business and also lead the teams so that they are able to deliver according to the strategies of the company. The company introduced a management development programme so as to train the employees and also to help the people to understand the way the company earns commercial success with the help of the employees.
In Cathay airways the people or the employees are managed by the respective departments in Dragonair, Cathay Pacific, and their subsidiaries. At Cathay Pacific, this is leaded by their Director Personnel and by the Head of Personnel at Dragonair. The company’s code of conduct sets out the rules and the principles that are to be followed by the employees for achieving the commercial success of the company. The rules see that the employees of the company and also the subsidiary are maintains the rules regarding the code of conduct and the respect for the organisation are to be ensured by giving them proper guidelines. The company aims to make sure that their employees are flexible, productive, and competent and also operate within a fit environment. The company ensures this through a process of training and development programmes. The company attempts to handle the people in a method that recognises variety and diversity.
3. Maslow`s need hierarchy states about the various needs of an employee at work. This needs have to satisfy so that an employee can work properly in an organization. The first need that Maslow talks about is the biological or the physiological needs. This comprises of the basic need that a normal human being has. This need includes food, water, shelter, sleep, sex etc. the next need that Maslow has propounded is the safety needs. The safety needs includes social security, stability, freedom from fear etc. An employee then tries to satisfy his needs for belongingness and love. This friendship, affection and love are very important needs as man is a social being and he cannot live alone on this world. A man feels motivated when he has family and love bonding. When a man has fulfilled his needs of love and affection, he starts looking for esteem needs. Esteem is a very important factor. His self-respect, prestige, and dominance make him feel his existence in the society. The final stage of self- actualization then arrives. In self-actualization, a person goes above all the bondages of life. He tries to find out his true potentials and self-fulfilment. He peaks off experiences and achieves self-fulfilment and growth (Bissell, 2012).
In Cathay airways the employees are motivated by the Maslow`s need hierarchy theory. The physiological needs are satisfied as the employees are well paid and the issue of survival are secured. The security needs are fulfilled by stable working conditions and ample of benefits that an employee gains from the work. Very cooperative peers and good employers satisfy the social concerning needs of the employees. The respect and recognition needs are fulfilled by the incentives and job titles that they earn at work. When the employees achieve a level of self-actualization they become the subject matter experts and attain a higher level of achievements and gain huge respect in the organization (Belobaba, Odoni and Barnhart, 2009).
The Glass ceiling theory of motivation:
The Glass ceiling is an invisible barrier that restricts an individual from achieving success in an organization. It is mostly seen in the situation of an individual`s gender, ethnicity, age etc This is seen mostly at a workplace. An example of glass ceiling would be that of with women. Woman in an organization with better education, merit and talent than any male employee is not promoted to higher position, regardless of better skills this is glass ceiling theory. In this (A, 2013) theory it is propounded that nothing can stop a woman from rising in a hierarchy. However, in real life the female employees face many troubles at work place. Employees in an organization irrespective of their age, sex and other abilities are entitled to get promoted to various higher positions but when some barriers restrict them from doing so come under the purview of glass ceiling theory.
In Easy Jet airways, the woman employees are given fair chances and the flight crew of the airways comprises of huge female employees. These female employees have been able to help the company in many ways to develop the business. The company truly believes in encouraging female power. The manager in the company is mostly females who look after the various departments.
Managing employees and organization takes into account the various approaches and the approaches that are used in EasyJet airways and Cathay airways discussed in the study. The motivational theories that encourage employees to perform well should be implemented in the organization. These theories help the organization in employee engagement, their development, retention and motivation. Some employees welcome this organizational culture and structure and there are employees who face trouble in doing so. The managers have to be very precise in dealing with such employees because this becomes the basis of employee retention and turnovers. The organization has to involve its employees in all the planning; it would make the employee feel included and valued. The organizations while applying the motivational theories also try to take feedbacks whether the employees really feel motivated or not. The employee`s annual performance analysis is very necessary to estimate the approaches of management.
Both the companies must ensure that they handle the employees well so that they help in realising the goals of the organisation. Moreover the employees need to have proper training so that they are able to work along with the changing demands of the organisation as well as the airlines industry. The person who avails this mode of transport seeks comfort and luxuries. The employees must ensure that the people are getting what they need and their requirements are fulfilled. The employees must be motivated and properly incentivised so that they are motivated to work hard and they associate with their work. Moreover the employees needs to feel assure that the management are by their side during the time of emergencies. Constant training to the employees can improve their performances and they will also be motivated and their performances will also be improved.
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