The external influence for Lufthansa airline was the gulf war which realized a decline of traveling passengers. With the increased number of flights the they had to com up with a strategy to enable them to survive in the market. To do this the company started by redeveloping workshops tat would see change management instilled in the managers and the whole company as a whole. This therefore enabled the workers to be sensitized for the need for a radical change. This initial crisis management meeting was the starting point for the recovery team.
The other step towards change was when the company decided to move from being publicly owned to privatization and the need to embrace restructuring that could see to it that there is an increase of cost and revenue transparency as well as market proximity and thus reducing the disintegration in decision process. There was a need for the company to focus on their external relationship. This was a result of experiencing overcapacity. Therefore there was the need to change their strategy of growth through internal strength to an alternative strategy of growth through partnership. In the end of the 20th century the strategy of the airlines changed from competition between airlines to competition between networks. So there was need to strengthen integration and alliance strategies.
Change is inevitable in the endeavor of a company or an organization to remain relevant in its business. Change comes along with its advantages and disadvantages. For instance due to technological change some of the employees might be found redundant and therefore be retrenched. Also change might require some expertise manpower and therefore leading the company to hire skilled labor. It is therefore the responsibility of the managers to manage all manners of changes in the organization that matters, hence determining the success of the organization (Elsevier, 2005).
At Lufthansa Airways the managers have been trained to counter change strategically. They are sensitized such that they consistently redesign the company to fit the change in line with a new product. This is seen when the company takes on a new route. The company makes the staffs to readjust frequently to the changing trends in business. For instance, the sometimes considers readjusting its payment mode to counter the fluctuation of the US dollar currency which the company is currently using. Though this redesigning has not yet been approved, it shows that the company is ready to seal the loss it is encountering through this fluctuation.
In the endeavor to manage the changing trends in the marketing field the company consistently comes up with new marketing strategies. The example provided earlier of the company contemplating of changing their trade currency due to fluctuation and its unpredictability shows that the company is proactive since the management foresees problems in the market which has already had an impact in terms of their revenue. For instance if the management decides to change the denomination of trade, they have to consider the pros and cons of the move before finally settling for the decision. The company is currently researching on the issue and this shows that indeed the management is sensitive on the issues thus manifesting a sound management
The management of Lufthansa Airways handles change by prioritizing the change they have to take. In doing so, the management informs all the staff through written forms and meeting about the change. Of course, some of the staffs tend to resist change but the move is pacified by the management by ensuring the staffs that apparently resists change are informed about the need for change at the particular time. The staffs are taken through training and are shown the relevance of the change to particular individual and the importance of the change in reflection to the company’s goals.
For instance when a new office is established on a new route, the staffs that are to be affected are put on a training session so that they are enlightened on the need for the expansion, how they will benefit individually and how they will be resourceful to the company. In essence the employees’ attitude is taken care of and the employees get motivated to take the responsibility they are given.
This also tackles the issue of resistance to change since the employees are made to be part of decision making in the change process. Thus the company successfully manages change by ensuring that its vision is articulated. In addition the management ensures that they establish core values on which the workers will consistently work on (Handy, 1993). Thus in the process of managing change the management also succeeds in enabling the workers focus on quality services by encouraging them to participate, and pump a sense of ownership into them and shared accountability.
The company’s Information Technology is wanting and this is affecting their communication. Lack of a thorough networked computer within the company’s premises makes it difficult for information to be relayed from one point to another. I T is indispensable in any business at this point and time in the contemporary world. The company has to invest in this technology and use it to do most of its transactions thus doing most of the business. It has to develop a website that will enable them to market their products globally.
This problem of inadequate Information Technology has been deliberately caused by lack of prioritizing it as important. This in turn costs the company extra costs by keeping many employees who could have otherwise have been done away with. Therefore the main challenge in implementing this issue is that the current employees have a negative attitude towards the introduction of the new technology.
The company should endeavor to improve the quality of their service. Partially their importation and distribution process is thwarted by the insufficient technology. They ought to employ the right employees in terms of the qualification too. This will make them to be more professional in their operations and thus increasing their productivity.
In the endeavor to improve the quality of the company’s services the company ought to employ more employees and probably establish a synchronized customer care department. In this breath the company has to ensure that each department within their operation has defined roles and thus whenever a client asks for a query he/she is directed to the right department. This will make work easier for each person in the organization and thus leaving the client who is paramount in this organization pleased with their work. This also creates a win-win situation between the company’s management and other employees.
The company can improve in minimizing the cost they incur by introduction of a synchronized technology and ensuring that information flows within the hierarchies of the company. Most of the losses the company incurs as a result of poor communication between the company and its chain of distribution. This poor communication results to lose of customers’ due to dissatisfaction of their services. The company should not fear to hire competent people because they might be expensive in their charges and salaries, but they (competent people) are bound to work and bring results.
The company should also ensure that its employees are trained and sensitized about time management. In so doing the company will save a lot in terms of the backlog of the work not attended to due to poor time management. The company will also have to solve the problem of perennial absenteeism among its employees. Time management is crucial in any organization that deals with supply and distribution of commodities since and if it is not taken into consideration, it might lead to loses as a result of cancelled orders due to late delivery and sometimes cancellation of the services. The challenge that might come along with implementation of strategies to manage time is that some employees might feel that their freedom is curtailed and feel that they are monitored around which might reflect negatively in their attitude and eventually their performance.
The organization can resolve resistance by taking into account the needs, attitudes, and beliefs of the individuals involved as well as forces of the organization (Greenbury, 1999). The company should come up with a strategy that will ensure individuals are personally benefiting from the change so that they can be willing to participate in the change process. Positive and strong pressures for change can be established by creating shared perceptions by the group members of the need for change, thus making the pressure come form within the unit.
The company can also reduce amount of opposition to change when those people who are to be changed and those who are to exert influence for a change have a strong sense of belonging to the same group. There is a receptiveness for change from within to be easily acceptable than that that emanate from outside (Armstrong, 2002) it is therefore wise for the company to initiate change from within. Sometimes it is indispensable for change to come from outside, for instance technological change has to be borrowed from outside and at this time it is the duty of the company to enlighten their employees on the benefits of this kind of change. The company should at this point train their employee. This will make them to be positive in their attitude towards the change and thus work towards the success of the implementation of change.
In addition the company must ensure that all relevant people in the group share the information relating to the need for change. They should plan for change and be ready to face the consequences of change. There is also the need of all the managers at all levels to deliberately open communication channels for the success of the process of change. Also for the success of a change process the company has to specify the progress criteria against which improvement will be measured. This will reduce the possibility of conflict among the members of the organization thus reduction of resistance to change.
List of References
Armstrong, M. (2002) How to Become Even a Better Manager. London: Kogan Page
Barbara S. (2006) Change management. NY Person Education
Elsevier, B. (2005) Positive Working Relationships. London: Kogan Page
Greenbury, J. (1999) Organizational Behavior. New Jersey: Prentice Hall
Handy, C (1993) Understanding Organizations. Berkshire: Penguin
Mullins, L (2000) Management and Organizational Behavior. Berkshire: Penguin
Rollin, D (1988) Organizational Behavior and Analysis. New York: Wiley