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The below report is based on two airlines in the United Arab Emirates and they are Emirates Airlines which was established in the year 1985 and up to now is one of the best airlines worldwide flying to over 124 destinations by operating the latest airbuses also providing and offering the best services to its customers and Fly Dubai an upcoming low-cost airline established in 2008 operating about 51 destinations with a fleet size of 23 by giving the travel solution to the customers who wish to travel abroad for cheap fare with no additional services.
The report shows an analysis of the two organizational structures on how emirates has a Tall, hierarchical organizational structure in comparison to that Fly Dubai has a flat structure with very few key people and others in same par. It further extends to the understanding of the relationship of the organization structure and its culture, the different approaches of management and leadership styles on how Tim Clark CEO of Emirates and Ghaith Al Ghaith CEO of Fly Dubai lead their organization and the effectiveness of the style they follow.
The two companies practice of the classical approach to management is also analysed and an evaluation on the different approaches to management.
The task two which is the presentation is based on the understanding of ways of using motivational theories within the two organizations and the mechanisms for developing effective teamwork.
The below report is an analysis of the two airlines, that is Emirates Airlines and Fly Dubai. It focuses on the organizational structure and the behaviour of individuals and groups within two organizations. As a trainee management consultant of emirates airlines I have managed to get information regarding the structure of the organization, the cultural behaviour of the employees of the organization and also the behavioural problems and how they are solved. in the report we identify two main characters in the two Airlines and analyse how the different styles of leadership have helped to guide the subordinates and to help the growth of the organization The assignment covers a presentation which will be presented to the assessor on the due date.
1.1 Structure and culture analysis
An organization is a structure through which individuals and groups cooperate systematically to conduct business. With the comparison and contrasting of the two companies which is Emirates Airlines and Fly Dubai we can analyse the structure and culture of the two organizations to get a better understanding on the relationship between the organizational structure and culture.
Emirates is Airline that was established in October 1985, since the beginning up until now there are very distinctive growths that have taken place and as of now Emirates is an award winning airline flying to over 124 destinations across the 6 continents by operating over 177 aircrafts and employing over 55000 employees that speak different languages. Emirates have diversified into related industries and sectors, including airport services, engineering, hospitality services, catering, and tour operator operations.
Fly Dubai was established in July 2008 by the Government of Dubai and was supported by Emirates at the beginning stage Fly Dubai commenced operations on the 1 June 2009 and up to now they are flying to around 51 destinations with a fleet size of 23 aircrafts. Fly Dubai is an airline mainly based on web sales I.e. It is mainly a web based airline where not much of interaction happens between the airline personals and the customers. Even though it is a budget airline it has a very high since 2009 to now they have a significant growth within the industry.
Organizational Structure of Emirates Airlines.
The organizational structure of emirates is a very tall, rather hierarchical structure hence the structure starts with Chairman, Vice presidents, Executive secretaries, Divisional VP , Senior VP, Regional managers, Area managers, Department heads and Supervisors below that the staff reporting upwards. The structure presented below contains the main people as well as the structure of the organization more in to the passenger sales executive management until the operational level managers
Organizational Structure of Fly Dubai
The Chairman of Fly Dubai and emirates Airlines are the same however it is two different organizations managed by a totally different management with few heads and the rest of them in the same par.
In analysing the two structures it is clear that Emirates Airlines has a Tall organizational structure as the organization is a large global organization hence the more the company grows the levels of management will rise which will make the structure of the organization tall (hierarchical). When a company has a Tall organizational structure there are various advantages. In a tall structure we can observe a very close supervisory control because of the hierarchical structure involved and also it is a more authoritative structure as the consequences, the roles and responsibilities are clearly defined. The other good thing about this structure is that the responsible person is accountable to higher authorities therefor mistakes are less as well as considered decisions will be made at all times. However sometimes it may be disadvantageous towards the side of the employees as the level of motivation may stand somewhat lower which will in return affect the company also another major disadvantage is that the tall structure creates a huge communication barrier with the top management, middle level managers as well as the lower level manager.
Emirates group is a large group with many managerial levels. There are many departments involved various tasks, from the departments serving the customers' needs to the engineering department as well as the catering departments and also many more. However each of them are managed by a department head and reported upwards to the middle level and so on to the top management . Emirates airlines is not fully based online like Fly Dubai, there is a major role played by the staff in different stations hence regional managers, area managers, department managers and supervisors are appointed. In the case of Fly Dubai the management is limited and also it is still a new airline that was established about 3 years ago.
In analysing Fly Dubai it is clear that the airline has a flat organizational structure as there are only few key people to manage as mentioned above. However there are few directors as well as airport officers appointed to make sure the operations run smoothly. In flat structure have only few management levels where each level controls and managers a large area. The advantage of this structure is that there is a greater communication with the employee and employer and also easy decision making as less people to discuss with but sometimes it may be based on a one person's ideas which can be disadvantageous. It becomes unfavourable in as the key people have to solve all problems of employees and in the organization and also the Lack of layers may reduce opportunities for high level strategic management.
1.2 Evaluation of how the structure of each company supports its culture and how this relationship affects the business.
The culture is based on how the business is done. Mainly the belief, norms, customs, values and ideas of the employees within the organization is what it is built upon. A cultural environment should always motivate the employees of the organization to give out their best towards the enhancement of the business performance. The culture of Emirates Airlines is a more quality and service oriented and also has a very forward -looking culture that takes into consideration the customer's requirements and makes sure the customer is given out the best at all times whereas in Fly Dubai it is more of power culture, which is all decisions are centralized around one key individual, there isn't much of an interaction with the customer and the airline employees. Emirates has a more role oriented culture where the entire organizational structure has a role to play in order to make sure each of the flights departs on time with all booked customers with to all required facilities. All employees as well as the top management are responsible for every action taken.
The Tall structure of emirates works in a favourable manner in the process of decision making as many different ideas can be obtained by the multicultural set of managers as well as the employees. When working according to a vision, having different ideas, having different values will lead to the conducting of business in an ethical way and in return it will enhance the performance of the employees and motivate them to perform well to give out the best.
In the case of Fly Dubai, the airline has a more task oriented culture as the main is to make sure the maximum amount of customers are on the flight and also they have only limited intervention with customers hence the customers welfare is not really considered. However each company's culture differs depending on the top management and the employees behaviour patterns. Fly Dubai has few key people and out of which the Owner of the airline is the same as emirates but the cultures of both organizations are completely different. One which is Emirates Airlines, a customer service oriented airline that servers customers to the best by offering various different comforts and additional benefits in order to and make the customer feel good, to satisfy the customer for the price paid and also to retain customers for the long run. The other is Fly Dubai which is a budget airline in Dubai for customers seeking a travel solution for the cheaper fares, in this airline the customers are not given additional benefits the culture they impose is that anything is money even the food on board should be bought even the basic baggage allowance is also charged for separately but they give out good deals for customers with less budget. However there are some similarities in the cultural aspects of both airlines, that is both airlines are innovative, they are full of people with new ideas and experiences both airlines have a very friendly background. They also have created a challenging culture.
Emirates manly have three main intentions of how to behave in the organization in order to achieve the ultimate goals and objectives of the company.
Challenge Conviction - Here the employees and managers are influenced by the culture of the organization which all employees should adapt to and that is to accept any challenging situation that come your way. For that the employees should be
Curious, Brave, Imaginative
Pioneering, Innovative, Ambitious
If the organizational structure supports the company culture there will be good improvement in the business performance and also it will motivate the employees in many ways as then they have a clear idea on what is expected and how the organization works.
Anticipate and Exceed Customer Expectations - This is another way that the customer oriented and service oriented culture can be brought out. For this the staff has to act accordingly with the help of the management.
Cosmopolitan, Visionary, Empathetic
Human, Intelligent, Hi-tech
Have a 'Can-Do' Attitude - the attitude has been created among the employees that anything is possible. The organization has a very positive culture hence all employees are motivated by it to work to the best of the ability.
1.3 What each company does in order to identify and solve employee behavioural problems
In each company there are problems that are unique to the employees job role accordingly these problems must be identified by the supervisor and should be communicated to the management and make sure decisions have been made to make these problems minimal.
In Emirates airlines the main control point is Dubai however each station in different countries has their own problems, sometimes it may be common problems. Taking into consideration Emirates Colombo station, they identify problems by having meetings weekly to discuss issues that have arisen during the week, and solutions are given for these problems by discussing with the relevant management. The employee's attitude towards work is also important. Some employees have issues in performance on time for his problem deadlines should be given in order to make sure the job is done on time. Another problem is that if there is a job that needs to be completed the staff will wait till the supervisor instructs them to do so where as they should be advised to make sure no work is in pending status.
Some of the key problems that might be common in an organization
Unethical behaviour- this can be described in many different actions of employees
Theft to disclosure of confidential information to the misrepresentation of products and services,"
These types of issues are serious as information is conveyed incorrectly and also there may be financial losses for the company. There are agreements that have been signed in order to make sure of the honesty of the employees continues in the future..
Time Management - the other problem is on timely performance. When a reservation is made and it is not issued on time the customer will be lost. Employees and time spent for personal matters should be clearly communicated so that employees know whether or not they can answer text messages and personal emails during work time. Employees also need to manage their time wisely when it comes to rest and lunch breaks as well as getting to work on time. If an employee is not managing that time wisely, the company ultimately loses.
Fly Dubai is an Airline that directly deals with the customers online through a website. The customers do not have contact with the employees or management but there are a set of employees and managers who work behind the scene. In this case also the above discussed problems will arise hence the with good communication, supervisory and also identifying the strengths and weaknesses of the employees it will help the management to solve the employee behavioural problems amicably.
2.1 Effectiveness of the leadership styles
Leadership is the glue that holds all elements in a team together. Good leadership has the ability to transform and inspire both individuals and groups. Emirates airline being one of the leading airlines in the world has many people behind its success and out them Tim Clark as the CEO has a prominent role played in order to manage the organization with the guidance of the chairman His Highness Sheikh Ahmed bin Saeed Al-Maktoum. In analysing Tim Clarks leadership patterns we can identify that he has the qualities of an Autocratic, where he has to command to the management below in a situation where an instant decision has to be taken and Democratic when in a situation that he has to communicate with the rest of the structure to make important decisions. He also has qualities of a dynamic leader, a person who looks as each situation in a different way and adapts to the chargers. As a leader he is quick thinker and a wise decision maker.
Tim Clark is a leader who is full of innovative ideas, integrity, dedication, openness and magnanimity. Whatever he does is done with great passion and love for the company and the employees. He is a CEO who makes sure that all employees are treated well. Many new ideas and innovations have been initiated from him; eg the idea of re-launching the brand to hello tomorrow and making it a lifestyle brand, solving some issues related to the A380 aircraft order. He is a person who is not hesitant when it comes to taking risk. He does not follow any traditional ways of doing business but a man with a business mind, who will lead the employees to be easily motivated by the changing world, innovation and upcoming business opportunities that will enhance the business growth and bring success to organization as a whole.
(article Group world )
In analysing the leadership styles of Ghaith Al Ghaith the CEO of Fly Dubai, it is clear that he is a very democratic leader; decisions are made by taking ideas from other managers. Within a short time period fly Dubai has succeeded in capturing the market looking for travel solutions. Ghaith Al Ghaith is a very innovative thinker, a leader driven by the vision to be a low-cost and reliable link to key destinations around the globe. Over all a very understanding, brave, challenge accepting and a leader who is believes that nothing is impossible
"Over the course of my career I have realized the secret to success is team work, attention to detail, dedication and tenacity to go the extra mile. Learning this from the early stages of my career has stood me in good stead for where I am today"
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2.2 How do the two companies practice the classical approach to management?
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. There are different approaches to management, Classical approach to management is mainly concerned with increasing the efficiency of workers organizations based on management practice which were and outcome of careful observation. In Emirates the y focus on a worldwide standard that is if any customer calls any contact centre in the world they will be handled in the exact same way as all other station mainly some of the things are done in the idea of "one best way to do the job" but when situations are unique then the approach differs.
In emirates they identify the employee's capability of doing each job that is been assigned to them and on that they develop a standard method of performance for each job, the employees are given standard educational training in Dubai on the system and the how to handle the customers as well as the introduction and background of emirates as a group. They also evaluate on how the employees perform their job and if there is an improvement and an enhancement in business practice. In return for good performance and motivational purposes the employees are appreciated and rewarded.
Fly Dubai uses the classical management approach only in the decision making process where they emphasise on the purpose of providing the travel solution .Since Fly Dubai is based on web sales the management uses classical approach in a very minimal way however the idea they impose is that the best way of doing business is through the web since they are a new airline and young to the industry they are trying their best to grow as much as they could.
2.3 Evaluation of different approaches to management used by the two organizations
Both organizations follow two or more management approaches as some of them change depending on the situation, when we say Classical approach is emphasises on the organizations formal structure, technical requirements and set of principles and in both companies we can see the formal structure and also the principles on how everything is done. There is a rule for everything and a standard way that things are done.
forecasting and planning - looking into the future and drawing up action plans
organizing - building up the material and human structure of the undertaking
commanding - maintaining activity amount personnel
coordinating - unifying and harmonizing activity and effort
controlling - ensuring that things conform to rules and instructions
The Human Resource perspective to management suggested that jobs should be designed to meet higher levels needs by allowing workers to use their full potential.
In the Human relation point Emirates uses tack tics like Better treatment, need for recognition, better salaries and bonuses, promotions and recognition to the employees to the level that it is needed so that they are easily motivated to do the job in a more positive sense. The employee's social welfare is looked in to at all times, there is high job security as well as medical benefits.
In Fly Dubai they treat all employees equally and opportunities are given to everyone, the employee's ideas and new innovations are taken in to consideration. The people working under fly Dubai is motivated by the secure working environment, profit share salary and other benefits. They also make sure that the employees are problem free from any aspect at all times as if any personal problem it will affect the performance of the employee.
The contingency approach to management is an extension of the humanistic perspective which is based on the idea that in an organization there is no one best way in the management process (planning, organizing, leading, and controlling) to successfully resolve any tailored circumstances; because organizations, people and situations vary and change over time. Thus, the right thing to do depends on a complex variety of critical environmental and internal contingencies. In the airline industry many things depend on the customer needs and wants hence many situations differ from one customer to another so depending on the kind of issue the solution will be based and this approach is common in both airlines.
We can conclude saying that Emirates airlines and Fly Dubai two distinctive airlines as Emirates is a conventional airline and the other is a low- cost carrier. However in the analysis on the organizational structures we identified that Emirates has a Tall structure where there is a large number of employees in the managerial level appointed and given the responsibilities of certain areas and Fly Dubai has a flat structure with few key people. The report consists of behavioural problems within the organization and the solutions and also the leadership styles of the CEO's of both organizations. Based on the last few analyses we are able to understand the different approaches to management.