Fluent Essays

HR practice Students will prepare an assignment that evaluates a strategy for motivating and engaging workers in an organization in the business case study assigned individually. Deliverable Document 1: The Business Case Resolution (85\% of total grade) The Business Case Resolution should have no more than a 500-word executive summary and a 2’000-word main text. It should comprise of the following key components: I) A 500-word Executive Summary II) Report: Part 1. Selected HR practice related to leading success through human capital: critical literature review of a selected a selected Leadership topic, Organizational Behaviour (OB) aspect, a specific Human Resource (HR) management practice, for example Dysfunctional Leadership, such an OB aspect as Stress or Motivation, or such an HR practice as Recruitment, Selection, Training, Appraisal, Development, Compensation, Employee Relations, or alike (1’200 words minimum). Part 2. Critical analysis of the business case (500 words minimum) Part 2.a) Business case summary (200 words minimum). Part 2.b) Identification of the strategy for motivating and engaging workers in an organization (50 words minimum). Part 2.d) Description of a selected HR practice for leading success through human capital and evaluation of its relevance/effectiveness; justification of such evaluation by referring to the case study and the literature reviewed (250 words minimum). Part 3: Global conclusion about the effectiveness of current strategy for motivating and engaging workers (300 words minimum) d. Reference list, using at least 5 literature sources (using only English based literature from credible sources, such as a book chapter, a professional association review, or an academic journal article) The coursework should follow the assessment brief. Please ensure that you do cite correctly the adequate number of references and follow the below guidelines in order not to lose any points for presentation elements unnecessarily: 1. Font size 12, Times New Roman 2. Spacing 1.5 3. Names of all the students including their student numbers need to appear on the cover page 4. Word count needs to appear on the cover page 5. A contents page also needs to be included 6. Main text pages need to be numbered and the topic also included in a footnote 7. Word count should not include cover page, contents’ page, appendices, reference list, only the main text 8. Use a variety of credible and academic references and strictly follow the Harvard referencing style 9. Ensure that you do utilize the e-resources available to you such as Emerald, EBSCO etc. Deliverable Document 2: Presentation of Business Action Plan (15\% of total grade) The 10-minutes Presentation with 10 PowerPoint slides is followed by a Question and Answer session about the whole Business Case Resolution. If a student is not able to deliver a live presentation with the lecturer for a valid reason, an online presentation with audio/video camera on must be scheduled within 7 days after the originally scheduled presentation date at latest. The Presentation should focus on Recommended areas of improvement and Action plan, by referring to the critical literature review results: - Business recommendation (approximately 100 words): maintaining currently successful strategy for motivating and engaging workers in an organization or for improving it. - Action plan (approximately 300 words): objectives, strategy, and selected HR practice analysed in the literature review for maintaining currently successful strategy for motivating and engaging workers in an organization or for improving it. It can take form of a table with milestones and deliverables. The student should present the case findings in relation to the literature reviewed and the business case, as well as participate in “Question and Answer” session regarding the business case resolution. Assessment of the presentation is the following (each weighting 5\%): · identification of the recommended continuation or improvement areas (business recommendation) · development of the action plan (objectives, strategy, and selected HR practice for maintaining currently successful strategy for motivating and engaging workers in an organization or for improving it) · justification of the proposed objectives, strategy, and HR practices · case discussion quality · reflection, quality, relevance, and originality of visual presentation materials Students will be allowed to submit drafts to check the level of plagiarism. Plagiarism is not tolerated, and if students are found to have plagiarized then the group project will be awarded a zero grade and referred to the Academic Board for evaluation and proposed further action. The Assignment will be assessed according to the following criteria: Overall clarity, style, logic, coherence of the written submission and use of Harvard style referencing =20\% (the business report) Selection, review and application of appropriate literature=30\% (the business report) Critical analysis, evaluation, and discussion quality=50\% (including 35\% allocated to the case evaluation and 15\% allocated to the presentation of its resolution) Etihad Airways: reputation management – an example of the Eyjafjallajökull Iceland volcano Melodena Stephens Balakrishnan Etihad Airways is the national airline of United Arab Emirates (UAE). From its formation in 2003 to 2011, Etihad has grown its fleet size to 62 aircraft that serve 72 destinations in 47 countries. Like all international airlines, Etihad is no stranger to unpredictable crises, and has had to deal with successive challenges arising from the SARS pandemic in 2003; the global recession from 2008-2011; the H1N1 pandemic in 2010; the Iceland volcanic eruption and resulting ash cloud in 2010; the extreme weather in the United Kingdom in late 2010; and more recently the earthquake and tsunami affecting Japan in March 2011. The 9/11 attacks in the USA and SARS the following year, were estimated to have cost the airline industry over US$ 25 billion (www.iata.org/pressroom/speeches/Pages/2003-10-07-04.aspx). According to former International Air Transport Association (IATA) chief executive, Giovanni Bisignani, the industry lost US$ 9.4 billion in 2009 as a result of the global recession (www.canada.com/story_print.html?id¼2634e836-695e-4769-99d6-ad03d59bf5ab&sponsor¼). Still more recently in 2010, the first three days of Eyjafjallajökull volcanic eruption in Iceland resulted in revenue losses of US$ 400 million each day for airlines. At one stage during the crisis, it was estimated that 29 percent of global aviation and 1.2 million passengers a day were affected by the airspace closure ordered by European governments (www.huffingtonpost.com/2010/04/ 21/iceland-volcano-costs-air_n_545649.html). The entire event, which lasted over a week, led to over 100,000 flights being grounded and caused an estimated loss of more than US$ 1.7 billion for the aviation industry (www.theepochtimes.com/n2/content/view/36015/). The Iceland volcano took the aviation industry by surprise when the main eruption on April 14 2010 sent pulverized volcanic rock, ash and glass shards as high as 11,000 meters (over 30,000 feet) into the atmosphere. Iceland can be avoided on most flight paths but what complicated matters was that Eyjafjallajökull lay under a jet stream. A jet stream is a narrow stream of strong concentrated winds extending from 10,000 to 40,000 feet above the ground. This resulted in a plume of volcanic ash being blown towards Europe at strong speeds of about 400 km/hour expanding at a width of 50 to 100 kilometers (Figure 1). This scattered ash reduced visibility. Volcanic ash in the past was known to cause jet engines to stall, could affect sensitive electronics and scratch glass[1]. This case documents how Etihad as an organization successfully managed a crisis that took the whole aviation industry by surprise. 1.1. Etihad Airways: reputation management Corporate reputation can be defined as: [. . .] a collective representation of a firm’s past actions and results that describes the firm’s ability to deliver valued outcomes to multiple stakeholders. It gauges an organization’s relative standing both internally with employees and externally with its stakeholders, in both its competitive and institutional environments (Fombrun and Rindova, 1996). The reputation of a company is largely driven by successful management of the brand and service (which includes operational reputation); and the congruence of brand elements with brand identity components (de Chernatony, 1999; Figure 2). There is a strong relationship between reputation and financial performance of a firm (Roberts and Dowling, 2002). Reputation is managed collectively by all departments that directly interact with passengers, including cabin crew; catering; and the network and operational safety team; and the This case was written by Dr Melodena Stephens Balakrishnan. It was prepared using company information and interviews and its intention was to provide material for class discussion through publication. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. Copyrightq Balakrishnan 2011; Case Courtesy of UOWD Business Case Study Centre and AIB-MENA. Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision making. The author/s may have disguised names; financial and other recognizable information to protect confidentiality. DOI 10.1108/20450621111192753 VOL. 1 NO. 4 2011, pp. 1-17, Q Emerald Group Publishing Limited, ISSN 2045-0621 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 1 Melodena Stephens Balakrishnan is an Associate Professor of Marketing in the Faculty of Business and Management, University of Wollongong, Dubai, UAE. marketing department, which also manages product and service development, marketing communications and sponsorship. 1.1.1. Strong service and product Etihad was set up by Royal (Amiri) Decree in July 2003 and commenced commercial operations in November 2003 with Abu Dhabi (the capital of UAE) as its hub. In seven short years, Etihad has established itself as one of the world’s fastest growing airlines. In 2010, Etihad saw passenger numbers top seven million for the first time and revenue passenger kilometres rise 20.1 percent. Etihad’s revenue exceeded US$3 billion in 2010. As part of its long-term growth strategy, Etihad plans to operate to up to 100 major business and leisure destinations around the world by 2020 (Figure 3). As of July 2011, Etihad’s fleet of 62 aircraft and five fleet types; was operating over 1,000 flights per week and serving an international network of 72 destinations in 47 countries. Etihad has 30 codeshare partners which increase its global reach and offer its passengers more choice and convenience. Over the next ten years as part of its expansion strategy, Figure 1 Spreading of the Ash Plumes Sources: April 15, 2010; NASA’s Earth Observatory (available: http://earthobservatory.nasa.gov/NaturalHazards/view.php?id=44068) PAGE 2jEMERALD EMERGING MARKETS CASE STUDIESj VOL. 1 NO. 4 2011 Etihad will take delivery of: three A330s by the end of 2011; 20 A320s between 2011 and 2015; 10 Airbus A380s from 2014; 25 A350s between 2017 and 2020; 35 Boeing 787s between 2014 and 2020; and 10 Boeing 777s between 2011 and 2013. Etihad offers exceptional service both on the ground and in the air. Ground services include chauffer pick-up for premium passengers in 27 global destinations, and premium lounges in Abu Dhabi, London, Frankfurt, Dublin and Manchester. In the air, Etihad offers a choice of Diamond First Class, Pearl Business Class and Coral Economy Class; Onboard Chefs, a Food Figure 2 Managing reputation Figure 3 Etihad Airways – projected growth VOL. 1 NO. 4 2011 jEMERALD EMERGING MARKETS CASE STUDIESj PAGE 3 and Beverage Manager delivers fine a la carte dining in premium cabins and all passengers have access to a state-of-the-art, on-demand in-flight entertainment system which includes over 600-hours of movies, TV shows, music and interactive games. Etihad has tied up with Swarovski to create new amenity kits for male and female passengers travelling in First Class to reflect its premium image. Etihad’s Loyalty program, Etihad Guest, which was launched in August 2006, has in just four years attracted more than one million members. Etihad’s superior service has also been recognized through a wide range of awards that reflect its position as one of the leading premium airline brands in the world, including the ‘‘World’s Leading Airline’’ at the World Travel Awards twice in 2009 and 2010[2]. 1.1.2. Strong operational reliability The airline today enjoys a significant share of business in key markets across its network. The geographical spread of this network, and the geographical spread of its network means a crisis in one part of the world is very likely to affect its operations and impact upon logistics, in another. For a deeper perspective; on average, Etihad currently operates around 150 flights per day; 1,050 flights per week; 4,200 flights per month; and 50,400 flights per year (current estimates) (see Figure 4 to get an idea of global reach). Etihad’s on-time performance (OTP) in 2010 was 72 percent for zero minutes, and 87 percent for below 15 minutes[3]. Safety is the most critical factor in operational reputation, followed by reliability and OTP. Etihad has one of the youngest fleets in the world. Its commitment to using latest technology, safety and customer comfort are evident in the fact that Etihad had announced what was at the time the largest aircraft order in commercial aviation history at Farnborough International Air Show in 2008, for up to 205 aircraft – 100 firm orders – 55 options (guaranteeing the price of the aircraft and the delivery date) and 50 purchase rights. 1.1.3. Brand associations and sponsorships and promotions Etihad means ‘‘Union’’ in Arabic. The Etihad brand value demonstrates the innate Arabian Emirati qualities of respect, generosity and hospitality. Etihad’s mandate from the Abu Dhabi Government has three main objectives: to be sustainably profitable; to be best in class; and to support the economic diversification of the Emirate through the development of travel and tourism and the provision of aviation links to key commercial centres. Figure 4 Etihad destinations – route map PAGE 4jEMERALD EMERGING MARKETS CASE STUDIESj VOL. 1 NO. 4 2011 According to a study conducted by Oxford Economics, a leading UK think tank and a world leader in economic impact analysis; Etihad is playing an increasingly important role in contributing to the economic growth of the UAE. In 2010, Etihad contributed US$5.5 billion to the Abu Dhabi economy. Besides the brand association with Abu Dhabi and the UAE, Etihad is associated with and sponsors a number of premium sports brands and events including, Manchester City Football Club, Harlequins, Etihad Stadiums in Melbourne and Manchester, the Sport Australia Hall of Fame, and the Etihad Airways Abu Dhabi F1 Grand Prix that takes place in November each year and is broadcast to a television viewership of over 80 million people. Etihad also sponsors and engages with a number of regional and global celebrity brand ambassadors including names like Danni Minogue from Australia; Katrina Kaif, internationally acclaimed, multi-award winning actress from India; and the popular Pakistani rock band strings. 1.1.4. CSR and philanthropy Etihad Airways is fully committed to sustainability and has a partnership with the Masdar Future Energy initiative to create a more fuel efficient fleet, and abide by the internationally recognized environmental principles of ‘‘reduce, reuse and recycle’’. Two of Etihad’s employees who are also the airline’s sustainability ambassadors took part in an once-in- a-lifetime expedition to Antarctica with polar explorer and sustainability pioneer Robert Swan in 2011. Etihad receives public recognition for its support towards philanthropic activities. In 2004, Etihad sent 18 flights full of humanitarian aid to Colombo, Mumbai, Bangkok and New Delhi following the Tsunami on 27 December 2004. In January 2010 Etihad Crystal Cargo operated a special Red Crescent and Khalifa Welfare Foundation charter flight to Haiti, carrying over 80 tonnes of medical and humanitarian supplies. In February 2010 Etihad Airways and its employees made a combined donation of US$6,800 and shipped more than 6,700 kg of aid to victims of the earthquake in Haiti. On 28 August 2010 Crystal Cargo provided a freighter aircraft to carry 59 tonnes of medical and humanitarian supplies to Pakistan following extensive flooding. Etihad staff collected money which was donated to the Emirates International Mobile Humanitarian Hospital for Children, which has been operating mobile clinics in flood ravaged areas and has treated 3,500 children. Etihad set up a program to allow its Etihad Guest Loyalty members to donate their Etihad Guest Miles to a number of key charitable organizations assisting with relief efforts and the results show a strong level of engagement with the Etihad customer. 1.1.5. Corporate communications A key element of Reputation Management to be greater emphasized is the ‘‘sword and shield’’ approach adopted by the Corporate Communications department: B The Sword approach actively promotes and publicises the brand qualities in a highly credible way, beyond plain marketing communications, ensuring that it is engaged in regularly communicating the latest news and developments to all internal and external stakeholders across a variety of channels (intranet, newsletters, social media platforms, figureions and events and a comprehensive local, regional and international media relations program. B The Shield approach provides rapid rebuttal on issues and topics that may negatively impact and affect the airline and/or the industry, and that it has a tried and tested Crisis Communications plan and trained personnel in place, should it ever be required. Etihad’s goal is to ensure that external stakeholders and the local community are constantly updated on its activities with a regular flow of news announcements appearing in the local media. In 2008, Etihad issued 165 media releases; 175 media releases in 2009, and more than 185 media releases till November 2010. VOL. 1 NO. 4 2011 jEMERALD EMERGING MARKETS CASE STUDIESj PAGE 5 Etihad also constantly monitors the media coverage it gains in foreign markets. Etihad’s Corporate Communications department plays an integral role in the emergency response plan (ERP) and a robust process exists to manage crisis communications issues appropriately. This includes a dedicated 24/7 ‘‘on-call’’ media roster, ensuring media can reach Etihad at any time of the day with their enquiries. It also includes a process for collating and assessing all the facts on an issue to ensure that the media and customers receive accurate, relevant and timely information. 1.1.6. Guest affairs department and contact centres The purpose of both departments is to ensure that all passenger queries are responded to promptly and appropriately. There are 24-hour contact centres in Abu Dhabi, Australia, Canada, India, South Africa, and the USA. Our customer care policy is clearly outlined in the Etihad Guest Charter (www.etihadairways.com/sites/etihad/global/en/aboutetihad/ CustomerCare/customercarepolicy/pages/customercare.aspx). 1.1.7. Organization-wide response To protect the organization’s reputation and the Abu Dhabi brand from the negative impact of crises and major operational disruptions, Etihad has established a state-of-the-art corporate ERP that lists the emergency role and responsibilities for each of the key departments across the organization. The plan is extensive, and regular exercises take place internally and jointly with external stakeholders to test the system and to ensure familiarity. During a crisis, Etihad has to maintain the highest standard of safety and operational integrity whilst ensuring the least disruption to the customer. While safety is always the priority, most passengers still want to know at first instance whether their flights will still operate to the destination as planned. Etihad is committed to keeping inconvenience to passengers to a minimum. This takes the form of rerouting, scheduling more flights, and constant communication. To ensure optimum performance during a crisis, Etihad draws from its skilled management team and a well-defined organizational structure supported by over 8,000 employees, representing 120 nationalities. 1.2. Emergency response plan (ERP) The ERP details Etihad Airways’ policies, plans and procedures to assist the company during a major crisis. This includes all aspects of the investigation of incidents, as well as the provision of humanitarian support for Etihad customers and employees, and for their respective families. The Etihad ERP complies with all IATA, International Civil Aviation Organization and General Civil Aviation Authority recommendations and requirements and adheres closely to industry best practice for response to an aviation accident or incident. Etihad regularly engages in disaster simulations internally and with business partners, to test the system, benchmark and learn from other companies’ crisis management capabilities. Internal exercises increased in 2010 to a total of seven from the previous three. The ERP contains the following components: 1. ERP manual/station emergency response manuals. A comprehensive ‘‘master plan’’ publication for use at headquarters is supplemented by customized ‘‘local plan’’ manuals for use at each airport and city office location across the Etihad network. At present this includes more than 70 passenger and freight airports on five continents. 2. Emergency Response Centre (ERC). The implementation of the ERP is managed and supported from the highly specialized ERC at the company’s headquarters. This state-of-the-art purpose-built facility is operational (mission-ready) 24/7 and contains a range of emergency applications, equipment and supplies. It is designed to function independently of main building systems (power, air conditioning, etc.) and can accommodate up to 35 nominated representatives that may be required to manage and resolve a crisis. A separate meeting room located across the street from the main headquarters building is designed as a dual-purpose daily meeting room and as the back-up ERC (should the primary facility at headquarters become inoperable). PAGE 6jEMERALD EMERGING MARKETS CASE STUDIESj VOL. 1 NO. 4 2011 A large call center capacity (supported by both the Etihad Global Call Centre and a specialized emergency vendor) exists to handle the potentially thousands of emergency enquiries after a major incident. Special toll-free telephone numbers are kept in reserve, ready to be published immediately should the need arise. 3. Special Assistance Team (SAT) (family assistance) for humanitarian support. The SAT is a standby group of volunteers from across the organization that is available to provide humanitarian support after an accident, major incident or during a crisis impacting airline operations. In-depth training provides the volunteers with the tools and knowledge necessary to assist accident survivors and friends/family members of accident victims. In 2009, Etihad enhanced its emergency response capability by training 45 ERP staff and 500 SAT volunteers and all outstations were provided with online training modules. In 2010, the number of employees provided with ERP training increased to 190 – and the number of trained SAT volunteers increased to 560 employees. All team members undergo annual refresher training. 4. Critical incident stress management (CISM). The CISM Team comprises staff volunteers uniquely trained to provide specialized peer support (in cooperation with the Etihad Medical Department) for employees involved in critical incident emergencies or other potentially traumatizing workplace events. 5. iSaturn emergency database application. iSaturn is a state-of-art web-based aviation emergency information management system, which is interfaced with key resources, to collect and input critical information for use by the ERC, the Global Call Centre, and for on-line access throughout the Etihad network. 1.3. The case of the Eyjafjallajökull volcanic eruption When the Eyjafjallajökull volcanic erupted on April 14, Etihad was operating over 90 services a week to 12 destinations in Europe. As the volcanic ash cloud spread across Europe it eventually led to a near-complete shutdown of European airspace between15 and 21 April 2010. For Etihad, the first impact was felt on 15 April, when all airports in London closed, immediately affecting five of Etihad’s scheduled flights and hundreds of passengers either going to or departing the UK. Flight disruptions were at their most extensive from 17 to 19 April, as the crisis progressively deepened and more airports across Europe were closed down. At one point in the airspace closure, Etihad had to cancel all flights into Europe except Italy. Airports remained closed for almost a week causing unavoidable mass flight cancellations (see Table I for Etihad flight disruptions), precipitating a significant crisis situation for airlines operating within and into Europe. An Etihad aircraft was grounded in only one destination, and through successful monitoring of the situation, the other aircraft were able to return to the airline’s hub in Abu Dhabi, enabling Etihad to retain its operational capacity. This is critical in an industry where significant revenue is lost for every hour a plane sits idle on the ground. 1.4. Etihad crisis management response As soon as Eyjafjallajökull erupted, Etihad began monitoring the situation. By 14 April, as the volcanic ash drifted over European airspace, the ERP went into action. The key focus for Etihad was to manage the evolving situation by predicting the potential impact to its global operations; finding collaborations and opportunities to mitigate reputational risk; and make sure that customer inconvenience was minimized with no impact on safety and security of passengers, crew and cargo. To manage the crisis Etihad implemented some of the following steps which highlight the extremely difficult and complex process embedded in reputation management and crisis recovery: VOL. 1 NO. 4 2011 jEMERALD EMERGING MARKETS CASE STUDIESj PAGE 7 T a b le I F lig h t c a n c e lla ti o n s Y e a r o f c o m m e n c e m e n t D e s ti n a ti o n S e rv ic e p e r w e e k A ir c ra ft a A ir p o rt s h u td o w n A p ri l 2 0 1 0 d a te s A ir p o rt o p e n in g 2 8 M a rc h 2 0 0 4 L o n d o n , U K , H e a th ro w b 2 1 A 3 3 0 -3 0 0 ; A 3 4 0 -5 0 0 ; A 3 4 0 -6 0 0 ; A 3 3 0 -2 0 0 1 5 , 1 6 , 1 7 , 1 8 , 1 9 , 2 0 2 1 2 7 M a rc h 2 0 0 6 M a n c h e s te r, U K b D a ily A 3 3 0 -2 0 0 1 5 , 1 6 , 1 7 , 1 8 , 1 9 , 2 0 2 1 2 J u ly 2 0 0 7 D u b lin , U K 1 0 A 3 3 0 -2 0 0 1 6 , 1 7 , 1 8 , 1 9 , 2 0 2 1 1 J u n e 2 0 0 6 F ra n k fu rt b , G e rm a n y D o u b le d a ily A 3 3 0 -2 0 0 1 7 , 1 8 , 1 9 , 2 0 2 1 5 J u n e 2 0 0 4 M u n ic h , G e rm a n y 6 A 3 3 0 -2 0 0 1 7 , 1 8 2 1 2 S e p te m b e r 2 0 0 7 M ila n , It a ly 5 A 3 3 0 -2 0 0 N o t c lo s e d 3 M a y 2 0 0 6 P a ri s b , F ra n c e 1 0 A 3 3 0 -2 0 0 1 7 , 1 8 , 1 9 , 2 0 2 1 3 1 O c to b e r 2 0 0 5 B ru s s e ls , B e lg iu m 6 A 3 3 0 -2 0 0 1 7 , 1 8 , 1 9 , 2 0 2 1 5 J u n e 2 0 0 4 G e n e v a , S w it z e rl a n d 5 A 3 2 0 -2 0 0 1 7 , 1 8 , 1 9 , 2 0 2 1 2 J u n e 2 0 0 9 A th e n s , G re e c e D a ily A 3 2 0 -2 0 0 1 7 , 1 8 2 1 5 A u g u s t 2 0 0 9 M in s k , B e la ru s 3 A 3 1 9 ; A 3 2 0 1 7 , 1 8 , 1 9 2 0 1 D e c e m b e r 2 0 0 8 M o s c o w , R u s s ia D a ily A 3 2 0 1 7 1 8 N o te s : a S e a ti n g c a p a c it y o f a ir c ra ft : A ir b u s A 3 1 9 -1 0 6 p a s s e n g e rs ; A ir b u s A 3 2 0 -1 3 6 p a s s e n g e rs ; A ir b u s A 3 3 0 -2 0 0 -2 6 2 p a s s e n g e rs ; A ir b u s A 3 3 0 -3 0 0 -2 0 3 p a s s e n g e rs ; A ir b u s A 3 4 0 -5 0 0 -2 4 0 p a s s e n g e rs ; A ir b u s A 3 4 0 -6 0 0 -2 9 2 p a s s e n g e rs ; b m a jo r h u b s PAGE 8jEMERALD EMERGING MARKETS CASE STUDIESj VOL. 1 NO. 4 2011 B A crisis management team, led by the Chief Operations Officer and Vice President Airports and Network Operations, was formed with representation from various key departments. 24-hour monitoring of the event ensued, with regular meetings scheduled and detailed communications provided frequently, so as to keep all departments apprised of the latest situation (see Plate 1 of the Crisis Room). Briefings on the status and security of the event, its impact on airports closed, flights affected, and passengers stranded, were documented and the impact on each department were discussed. Key departments or groups involved were the network planning; revenue management; flight operations; ground services; technical operations; in-flight services; sales, security operations; call centres, airport management, catering, cabin crew, insurance, corporate affairs, insurance and legal and respective duty managers. The inclusion of all areas of the business ensures a composite view of company operations at any point in time. The focus was to secure, staff, customers and assets while managing the reputation of the company. All this needed to be done whilst keeping in mind legal and financial costs. For example, in the Europe Union, any customer booked on a flight with a six-hour delay has to be compensated by hotel rooms and a penalty payment. B Second the communications with passengers in general, especially those who had not yet started their onward journey had to be managed. Customers were regularly updated through the internet about the volcanic ash situation and flight status. A call centre and helpline were opened on a 24/7 basis. The Call Centre was extraordinarily taxed by the unprecedented volume of inbound and outbound calls, and the entire ERC in addition to other company facilities were used to provide back-up support. All local offices were prepared to handle Etihad Guests with queries and flight changes. After the UK airport closures, press releases were distributed to all media and posted on the internet to update customers on the status of their flights and tickets. B Etihad aircraft were flown to their scheduled destinations, or diverted to alternate airports, for as long as possible until ever-diminishing options for landing sites were finally exhausted as the ash cloud spread across Northern Europe. The various special arrangements made for specific sectors are listed in Table II. B Exceptional measures were implemented to care for stranded passengers at outstations across the network, and especially at the Abu Dhabi hub, where some 2,500 passengers were accommodated at the expense of Etihad Airways. Such care included first class Plate 1 Crisis Management Team VOL. 1 NO. 4 2011 jEMERALD EMERGING MARKETS CASE STUDIESj PAGE 9 accommodation, meals, transportation, leisure tours, as well as on-site assistance from Etihad representatives at every hotel assisting with travel enquiries and arrangements. Visas were organized where possible for all passengers stuck in transit in Abu Dhabi. Abu Dhabi Airports Company, Abu Dhabi Tourism Authority, and the airport police and immigration authorities, worked with Etihad during this challenging period. The airline also worked with embassies around the world to ensure the safety and care of passengers that had been delayed in outstations. Tours were also organized for passengers stuck in Frankfurt. Based on information provided by the metrological authorities, Etihad was able to warn people not to undertake their journeys and promised to revalidate their tickets at no additional cost. This was preferable to taking the risk of being stranded in transit. Managing logistics at this time was key to managing passenger flows. The unsolicited testimonials (see Exhibit) provide highly credible third party endorsements, and go far beyond being just free publicity (Figure 5), and are key factors in building a positive reputation and reinforcing, brand loyalty among new and existing customers. The testimonials also show the effort the Etihad team put into managing the crisis across its international network. B Tracking customer whereabouts, travel intentions and any possible post-event backlog within the network proved to be a complex challenge. This task was made increasingly difficult due to the ever-lengthening duration of the airspace closures and the unpredictable nature of requests for alternate travel arrangements. Tickets needed to be revalidated or re-routed, which was covered by the airline. In some destinations on the Etihad network, passengers holding tickets to their original final destinations were uplifted to Abu Dhabi, where they were accommodated on later flights to their final destination. Customers who chose not to travel and cancelled their flights were also fully refunded the cost of their tickets. Once flights returned to normal, James Hogan announced in a press release: Bookings for passengers currently in transit, and UAE residents around the world will be priority for the airline as services are reintroduced. Our staff will be communicating directly with those that are in accommodation in Abu Dhabi and other cities to advise them of their updated travel plans, once available. By 21 April, over 1,500 passengers had departed from Abu Dhabi to their final destination. 1.5. Post crisis: event summary The Eyjafjallajökull volcano tested the worldwide airline industry. For Etihad specifically the impact was huge as documented below: B Passengers affected across the Etihad network. More than 22,000 Etihad passengers were affected by … Table of Contents Executive Summary....................................................................................................... 3 1.0 Literature Review.....................................................................................................3 1.1 Leadership............................................................................................................ 3 1.2 Situational Leadership Theory............................................................................. 4 1.3 Path-Goal Theory................................................................................................. 6 1.4 Four-Drive Theory................................................................................................8 2.0 Case Analysis........................................................................................................... 9 2.1 Case Summary......................................................................................................9 2.2 The Leadership in the Case................................................................................ 10 2.3 Evaluation...........................................................................................................10 3.0 Recommendations.................................................................................................. 12 Reference List...............................................................................................................13 Executive Summary This report is about a critical analysis of leadership in the case of Pho Hoa Dorchester, a Vietnamese restaurant. This report adopts the method of literature review. This report reviews the literature from four dimensions: leadership, situational leadership theory, path-goal theory and four-drives theory. Then the case is analyzed and evaluated according to the relevant theories in the literature review, and recommendations are given. The results show that the situational leadership theory is not applicable to this case because of the influence of Vietnamese culture on employees leadership style preference. The path-goal theory and the four-drives theory can provide recommendations for the management of Tam. Based on the path-goal theory, most employees of Pho Hoa Dorchester belong to the submissive, which requires Tam to adopt the guiding leadership style for the directive. In terms of the four driving forces, Tam lacks the consideration of comprehend and defend, and needs to incorporate them into the development of the action plan. 1.0 Literature Review 1.1 Leadership Leadership is the art of mobilizing people to work for a shared vision (Wang, Chontawan and Nantsupawat, 2011). It is the art covering foresight and planning, communication and coordination. Harold Koontz believes that the essence of leadership is power (Koontz and Weihrich, 2010). The concept of leadership evolved from leaders. In the early studies, the research on leadership is mainly focused on leadership characteristics, leadership mode, leadership behaviour, leadership style and leadership contingency. In earlier research, generally regard lead as the process in which leaders exert influence on followers (Kark and Shamir, 2013). The sum of influences power generated in this process is leadership. And this kind of influences power is usually based on professional knowledge, people respect and personal traits to achieve organizational goals by influencing followers behaviour (Oc and Bashshur, 2013). Leadership traits theory is about discovering the commonalities of outstanding leaders. W.Henry points out that successful leaders should possess twelve qualities, such as good organizational ability, self-confidence and quick thinking (Henry, 1998). This point is supported by C.A.Gibbs work. C.A.Gabb found that leaders with excellent leadership tend to possess seven traits, such as intelligence and eloquence (Gibb, 1947). However, in general, leadership trait theory has some limitations. There is no single trait that is a sure predictor of excellent leadership. Because it ignores the relationship between leadership effectiveness and the employees and the situation they are in. The emergence of transformational leadership theory has brought change. Transformational leadership refers to the leadership that stimulates and expands the high-level demands of employees by making employees realize the significance and responsibility of the tasks they undertake, so as to make them put the organization interests above their interests (Wang, Chontawan and Nantsupawat, 2011). The emergence of this theory indicates that scholars gradually shift the focus of research to the collective’s characteristics and its relationship with a specific situation. The following, this report will conduct a literature review from three aspects: situational leadership theory, path-goal theory and four-drive theory. 1.2 Situational Leadership Theory Situational leadership theory, which emphasizes that in varying situations, leaders need to adjust their leadership style to adapt to different requirements in specific situations (Northouse, 2021). Different from traditional leadership theories, situational leadership theory breaks the outdated thinking mode of binary epistemology, which emphasizes more that leaders should be flexible. Ken Blanchard believes that every employee has their career path and personality traits. Therefore, different employees need to match different leadership styles. Similarly, the same employee needs different leadership styles in different development stages and different work tasks (Blanchard, 2018). Therefore, based on the leadership life cycle, he and Paul. Hersey divided leadership styles into four leadership styles from two dimensions: directive and supportive (Figure 1). Among the four leadership styles, employees are also divided into four different development stages. New employees are usually at D1, and they are not fully prepared for the job. Leaders need to take a directing approach to guide employees. Leaders need to tell employees exactly what needs to be done and how to do it. When employees are in D2, the leader needs to take a coaching approach to help employees. Make employees achieve a certain level of confidence and ability, to improve productivity and work efficiency, become high-performance employees; When employees are in D3, the leader needs to take a supporting approach to match. Usually, employees have the certain ability but lack confidence at this stage, so they need psychological and atmospheric support and encouragement from leaders to help them establish confidence. When employees are in the D4 stage, leaders should adopt a delegating approach, and give full authorization and trust to employees. In order to obtain the best work effect, employees are fully responsible for tasks (Lynch, 2015). In summary, an excellent situational leader needs three core competencies: Judgment, flexibility and building good partnerships. There is no best leadership style, only the most appropriate leadership style. Only by correctly judging the stage employees are in, and flexibly adjusting the leadership style accordingly, and reaching an agreement with the individual development stage of employees, can the organization achieve the best performance. However, situational leadership theory also has a limitation. Demographic characteristics will influence employees preference for leaders leadership style (Northouse, 2021). Situational leadership theory doesnt take this into account. 1.3 Path-Goal Theory Path-goal theory is a contingency theory developed by Robert House. The theory aims to explain how to motivate employees to achieve specified goals. This theory is based on expectation theory and situational leadership styles (Northouse, 2021). In other words, excellent leaders need to help employees by clearly identifying their work goals and paths to their achievement, removing potential obstacles and providing support, making it easier for employees to do their work (Figure 2). Figure 2: Path-Goal Theory Source: Confluence, 2018 According to path-goal theory, leaders behaviour patterns can be divided into four types: directive, supportive, participative and achievement-oriented. And according to personality characteristics, employees can be divided into four types: team, submissive, dominant and self-judgmental. Team-based employees need to match supportive leaders. They want to be cared for, and a warm environment can increase their enthusiasm for work. Submissive employees need to match directive leaders. They need straightforward tasks objectives and structure. Dominant employees need to match participative leaders. Let them participate in specific jobs and express their views. Self-judgmental needs to match achievement-oriented leaders. Make them passionate about the challenges they need to accomplish (Li, Liu and Luo, 2018). In general, the application of path-goal theory follows a specific procedure. Firstly, the leader needs to make a correct judgment on the personality characteristics of employees; Secondly, the leader should have an accurate understanding of the goal and environment of the task; Finally, leaders should adopt appropriate incentive measures according to the changes in the actual situation. The path-goal theory also has some limitations. In path-goal theory, the leader bears most of the responsibility (Northouse, 2021). It is easy for employees to become too dependent and lose the ability to carry out tasks independently. 1.4 Four-Drive Theory The four-drive theory refers to the four basic emotional drives of human beings: acquire, bond, comprehend and defend (Meske, Junglas and Stieglitz, 2019). These four drives underlie everything people do. Leaders should also follow these four drives to motivate employees. Roy Choudhury believes that if one of the driving forces is weak, even if the other three are strong, the overall incentive degree of employees will be significantly reduced (Shafi, Khemka and Roy Choudhury, 2015). Therefore, to achieve optimal performance, leaders should not ignore anyone driving force. Corresponding to these four driving forces, there are also four indicators to measure employees motivation: engagement, satisfaction, commitment and intention to quit (Harisa Putri and Ronald Setianan, 2019). Chalofsky and Krishna found that bond driving force had the most significant impact on employees commitment. Comprehend driving force is closely related to engagement (Chalofsky and Krishna, 2009). In general, if an organization can coordinate all the four driving forces well, it can maximize the overall motivation of employees, to improve organizational performance. The four driving forces are independent of each other. There is no primary or secondary one, and they cannot be substituted for each other. 2.0 Case Analysis 2.1 Case Summary This case mainly tells a story about a family business of Pho Hoa Restaurant in Dorchester. Thanh Le is the founder of the restaurant. He joined Pho Hoa Noodle Soup as a franchise in 1992, and to establish Pho Hoa Dorchester. He now wants to hand over the restaurant to his eldest son, Tam Le, and enjoy his retirement. His eldest son, Tam, has been helping the restaurant since he was a child and has accumulated 15 years of experience. He is now the general manager of the restaurant. Before becoming the general manager of Pho Hoa Dorchester, he studied for an MBA and gained operational experience at other restaurants. Duong Le is Tams uncle. Has rich experience in restaurant operation. He currently serves as the unofficial front-of-house manager at Pho Hoa Dorchester. At the same time, when the kitchen needs help will also be involved in the kitchen. Currently, Tam faces three significant problems before taking over Pho Hoa Dorchester. The first is how to build effective leadership in the employees. Tam and his family are of Vietnamese descent, as are the restaurants employees. In Vietnamese culture, respect and obedience are mainly based on age. Tam is younger than all of the restaurants key employees. He worried that he would not establish effective leadership when he took over the restaurant. The second problem is how to overcome cultural barriers in the process of improving restaurant operations. Due to the influence of Vietnamese culture, the waiters in the restaurant are very resistant to having a positive interaction with customers. This will undoubtedly reduce the efficiency and performance of the restaurant, and reduce the income of the restaurant. The final question is how to establish a structured organizational and management strategy. Tams father, Thanh, runs the restaurant by instinct and experience. There is no formal organizational structure and management process for both the front-of-house and the restaurant’s kitchen, and it is the most uncomplicated management by the most veteran employees. For example, Tams uncle. 2.2 The Leadership in the Case In this case, Tams father relied on his intuition and experience to manage his employees. The employees obeyed his instructions unconditionally, based on respect for the elders in Vietnamese culture. Since Tam was younger than all the key employees, it was challenging for him to establish effective leadership after he took over the restaurant. In this case, Tam used the strategy of improving the restaurant environment and raising the salary to motivate employees in another restaurant before. 2.3 Evaluation Under the Situational Leadership Theory, Tams father, Thanh, had used a directing leadership style for managing his employees in this case. Give them clear work instructions, and the employee obeys his absolute authority. Thanhs leadership is based mostly on people respect. In Vietnamese culture, elders are treated with unconditional respect from others. In terms of personal development stages, Pho Hoa Dorchester employees are mostly in the D1 or D2 stage. They dont have a lot of relevant work experience. They needed to match the directing leadership style, which was also consistent with Thanhs leadership style. But for the few back kitchen workers and Tams uncle Duong, they are all in the D4 stage. They have a wealth of relevant work experience. Directing did not match the leadership style they required. They need to match Delegating leadership style. However, for Tam, the situational leadership theory is not applicable. Because the situational leadership theory does not consider the influence of employee demographic characteristics on leadership style preference. In this case, the employees were all of Vietnamese origin. Tam was too young to gain their respect. Even if he has good expertise. This weakens Tams power and prevents him from establishing effective leadership. The path-goal theory is more applicable to this case. Tams plan list shows that he has defined the goals that employees need to achieve and the essential path to implementing the goals (Figure 3). Increasing revenue is the goal, improving service quality and achieving consistency is the path. Tam is also well aware that he needs to overcome cultural barriers to achieve his goals. Based on this, he developed incentive and support programs, such as raising salaries, training employees and optimizing working conditions. But based on the four-drives theory, Tams plan does not take into account the comprehend and defend aspects. Hes only thinking about acquire. And the bond based on Vietnamese culture is always there. In the four-drives theory, all four driving forces need to be considered. The weakness of any one of the driving forces will reduce the overall motivation of employees. 3.0 Recommendations In this case, Tam has excellent judgment and decision. Have a clear understanding of the goal and paths. Based on the path-goal theory and the four-drives theory, four recommendations will be given for the problems Tam faces. First of all, since most of Pho Hoa Dorchester’s employees are submissive, Tam can manage them with a directive leadership style. Set clear and understandable goals and procedures for their work. And set up practical indicators for regular supervision and management. But for a small number of kitchen employees and his uncle, Tam needs to adopt the style of achievement-oriented leadership style to manage. Set high goals and give them more autonomy. Employees lack respect for Tam due to cultural factors. Tam can enhance his power by leveraging his expertise and great personality traits, so as to build effective leadership. Secondly, for cultural barriers in the operation process, Tam can design the culture of its restaurant based on the Vietnamese culture. To convey a sense of identity to the staff and improve the stability of the restaurant. Moreover, Tam can design reasonable training and reward policies to motivate employees to break through cultural barriers and enhance the quality of service. Thirdly, Tam should let employees understand their importance and significance to the restaurant, so that they feel they have contributed to the restaurant. And design transparent and fair process and mechanism, and build trust with employees. Last but not least, Tam also needs to survey employees satisfaction and feedback regularly. So that he can adjust accordingly at any time. Because employees are not immutable, when their development level changes, their demand for leadership style will also change. Tam needs to adapt his leadership style to their changes continually. 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