Overview of Organization
The report throws light on understanding the role of leadership in developing a healthy organizational culture. The corporate leadership mainly emphasizes on developing the leadership skills along with abilities which are relevant across the organizations. Proper evaluation of the impact of leadership on Air New Zealand will be analysed with the implementation of the different leadership theories.
Proper investigation of the usage of the entrepreneurial creativity and thinking will be studied which will be utilized to identify the trends and to recognize the opportunities. Lastly, the role of innovation along with knowledge management is evaluated which will be enhancing the effectiveness of Air New Zealand.
Air New Zealand Limited is flag carrier airline of New Zealand which is based in Auckland wherein the airline operates the scheduled passenger flights to more than 20 domestic and 31 international destinations in more than 19 countries (Airnewzealand.co.nz, 2018). The airline company commenced their operations from 1st April 1965, and they are operating in the airlines’ industry. The key person who is involved in making Air New Zealand best in comparison to the other competitors are Christopher Luxon who is the CEO of the company. The revenue earned by the organization is NZ$5,231 million till the year 2016, and the employees who are employed in the organization is 10527 till the year 2016.
The mission of Air New Zealand is to deliver the different customers by providing the in-flight experience. Furthermore, the vision of the company is to make civil aviation sustainable. The opportunities which are available for the airline is that the strategic alliance with Qantans will be beneficial for them to strengthen their position in the entire industry. Moreover, the leverage on the award-winning airlines can be helpful to create a strong brand image and identity in the whole competitive market. However, the threats which can affect the competitiveness of Air New Zealand is the intense competition from the different foreign players. Furthermore, the increase in fuel and labour cost are the two major threats which can affect the overall identity of the organization (Air New Zealand, 2018).
According to Doz (2017), leadership is essential for the firm as this leads to higher performance by the different team members along with improving the morale and motivation within the various individuals and they are the ones who respond to the change. Proper leadership facilitates organizational success by creating proper accountability and responsibility among the various members of the organization, and this increases the value of Air New Zealand.
There are different principles of leadership which can be considered for analyzing the role of leadership in Air New Zealand. Firstly, the independent judgment and intuition play a significant role in Air New Zealand for the continuing success as the different employees can share their viewpoints on the various aspects which will be useful in the process of decision-making. The CEO and the other managers in Air New Zealand have skills along with expertise in taking the decisions and applying the same to the organization (Tvnz.co.nz, 2018).
Evaluation of Impact of Leadership on Organizational Behaviour, Culture and Vision
On the other hand, the leaders in Air New Zealand provide the employees with the scope to showcase their viewpoints and they are being valued which is helpful in the final decision-making of the organization. The CEO of Air New Zealand feels that the independent judgment is valuable for the collective decision appropriately making for the organization.
Secondly, the political behavior can positively impact the Air New Zealand as the workplace politics involves power and authority as this is the tool which helps in assessing the operational capacity which will be beneficial for balancing the views of the different interested parties (NZherald.co.nz, 2018). However, in case of Air New Zealand, there has been resistance to change among the employees working in the organization as there has been threatening of the employees which cause decreased job satisfaction among employees, and it increased anxiety among the employees (Georgalis et al., 2018, p.113).
As there is substantial political pressure on the Air New Zealand, this can be identified that to remain competitive in comparison to the other competitors; there has been pressure on employees which changed their attitude towards performing the tasks as there is an increase in stress which demotivated employees. However, after the profits have been decreased due to the other competitors, the employees were not motivated to work (Air New Zealand., 2018). Due to the turnover of the employees, there was a reduction in the performance level of the employees. Lastly, this was being seen that the main concern of the company is to provide the satisfaction to the customers and increasing their profit.
The third principle deals with the high-performance team which plays a significant role in the organizations as all the members in the group are working towards the same goals, and the team members are clear on the goals which are required to be achieved by the members (Hislop, Bosua & Helms, 2018). In case of Air New Zealand, this can be identified that the airline has won airline of the year for the fifth running year for motivating the employees. After the previous few tragedies faced by Air New Zealand, the company has now introduced different financial and non-financial rewards for the employees and this is being provided to them as per their performance.
Moreover, Air New Zealand has committed to providing a safe workplace to the different employees who help in delivering highly engaged workforce. The high performing team is one of the significant strengths of Air New Zealand which allows them in fostering the culture along with ensuring diversity in the leadership approaches utilized at Air New Zealand (Diversityworksnz.org.nz, 2018). The respective airline has now focused mainly on the different kinds of motivational aspects which increased the performance of teams along with helped the company in gaining enormous productivity in the market (Diversityworksnz.org.nz, 2018).
The fourth principle is the transformational leadership style in which this will help the leaders to work with teams to identify the change which is required. There are significant four contributions of the transformational leadership which is inclusive of individualized consideration, intellectual stimulation, inspirational motivation and idealized influence (Airnewzealand.co.nz, 2018). These are the major four components which are related to creating strong and positive organizational performance. In the case of Air New Zealand, there has been the introduction of the transformational leadership in which the employee’s opinions are being considered for the process of decision-making (Hitt & Duane Ireland, 2017, p.63).
There has been the inclusion of the different innovative techniques which will be beneficial for the overall success of Air New Zealand. Due to the adoption of transformational leadership, Air New Zealand has lowered the turnover rate of the employees, and the change has been managed effectively as well (Stuff.co.nz, 2018). There has been the creation and introduction of enthusiasm among the employees which will be beneficial for motivating the employees to improve the quality of the performance. Moreover, this has been noticed that the new corporate visions are quickly formulated which will be beneficial for the overall success of the airlines in a positive manner.
Communication is the other principle wherein language plays an essential role to understand others and to welcome diversity in the workplace. There have been different issues related to communication which has been faced by Air New Zealand which affected the overall performance of the company along with created an adverse effect on productivity. In the year 2013, the CEO of the organization Air New Zealand faced various kinds of cultural challenges that increased turnover of employees as they met diversity-related issues (NZ Herald., 2018).
However, with the help of the communication, the previous CEO Christopher Luxon sent a strong message which was that by the year 2020, more than 40% of the senior leadership team would be women who will be efficiently leading the different higher positions. Air New Zealand tries to maintain and provide equal opportunity to all the employees by providing them with various possibilities for appropriately managing the culturally diverse culture (Diversityworksnz.org.nz, 2018).
Lastly, the resistance to change is the last aspect in which this has been noticed that in the last few years, the turnover rate of the employees has increased to a large extent which affected the overall efficiency of the firm in a negative manner. However, after the company was losing their profitability in the market, Air New Zealand tried to include different aspects wherein the employees are involved in the process of change which will make them feel that they are essential, and their opinions are being valued as well (NewsroomAir, 2018).
In Air New Zealand, the higher officials tried to analyze the reasons for the resistance to change by examining the feedback from employees. Moreover, with the introduction of innovative procedures, Air New Zealand decided to include all the employees in the decision-making process which improved the overall productivity of the organization positively. The engagement of the proper and right resistance managers is required to be hired who will be helping in managing the resistance in an appropriate manner (Innovation, 2018).
The entrepreneurial thinking along with creativity plays a significant role in managing the different aspects of the organization positively. The mind of the entrepreneurs revolves around for new ideas along with opportunities for innovation. The entrepreneurship tries to involve the continuous examination of existing business workflows in such a manner which will be devising different other techniques to improve the organizational effectiveness as the entrepreneurial thinking works towards optimization of business (Li et al., 2018, p.698).
In case of Air New Zealand, the entrepreneurial thinking and creativity help in identification of the needs and opportunities with the help of Entrepreneurship Innovation theory, this has assisted higher officials in Air New Zealand in gaining organizing and risk-taking abilities to create successful innovation (Bayon, Vaillant & Lafuente, 2015, p.49). With the different innovative techniques used by the organization, this was in favor of Air New Zealand to innovate the different kinds of in-house airline experience for the different customers travelling with them.
It has been noticed from the different articles that the airline is increasingly looking to digital technologies which will be beneficial for enhancing the performance of the customers and deliver the best to their customers as well (Li et al., 2018, p.698). The different innovations include Airband which is the wristband wearable for the children who are travelling unaccompanied which will be providing the guardians more significant type of visibility of the journey of their children. Moreover, there has been the introduction of artificial intelligence chatbot named Oscar along with unique coffee ordering technique which is making the airline more innovative in comparison to the other competitors who are performing in the same industry.
Moreover, with the help of such creativity and entrepreneurial thinking as the creative thinking increases the quality of the solutions to the different organizational problems which will help in stimulating the successful innovations along with upgrading the personal skills and revitalizes the motivational aspects. In the case of Air New Zealand, there have been innovations which increased the satisfaction level of the customers travelling with them. On the other hand, the entrepreneurial activities revitalized the motivation among the employees and increased their dedication towards performing the tasks (Li et al., 2018).
Due to the creativity, the different opportunities of Air New Zealand are being increased which includes the leadership skills to improve the morale of employees working in the organization. In case of the employees working with Air New Zealand, there has been the introduction of different financial and non-financial rewards which benefits the employees to become more effective in their operations (Li et al., 2018). The CEO of Air New Zealand have tried to create an environment conducive to growth that has proved to be successful for the employees working in organization along with creating an environment wherein the employees have the right to share their ideas with the proper utilisation of the different skills and knowledge (Bayon, Vaillant & Lafuente, 2015, p.49).
Wang et al. (2016), have commented that knowledge management and innovation play a major role in enhancing organizational competitiveness and effectiveness. The knowledge management and innovation are the set of business processes which are being developed in the organization to store, create along with apply knowledge (Meyer, Neck & Meeks, 2017, p.44). The purpose of the knowledge management is to provide the right information to the right individuals at the right time which will be helpful in increasing and enhancing the effectiveness of the organization.
In the case of Air New Zealand, Knowledge Management is the heart of the performance of the organization, and this enables the companies to realize the value of human capital as well. It is the mix of experiences, benefits along with information which helps in making the organization useful in the different kinds of operations performed by them. The employees are the biggest asset of the organization Air New Zealand wherein they provide sufficient and efficient knowledge management (Omotayo, 2015).
In Air New Zealand, this was being noticed that the employees were not being valued and these decreased the morale of the employees working in the organization as well. However, after the increase in the turnover rate of the employees at Air New Zealand, the company tried to use the innovative capabilities which facilitated the decision-making capabilities. Moreover, this helps in stimulating the cultural change along with innovation which will be achieved through the combination of motivation and recognition by evaluating the performance through performance measurement systems (Wheelen et al., 2017).
Furthermore, knowledge management improves and integrates the growing willingness of the firm which has a positive influence on increasing the overall productivity of the airline in a positive manner (Hislop, Bosua & Helms, 2018). Lastly, this was being noticed that organizational culture is the mediator between personal and organizational knowledge and the knowledge management helps in better management to prove to be useful and beneficial for the effective functioning of the organization in a positive manner (Jones, 2016).
Air New Zealand has played a significant role for both the employees’ effectiveness and for satisfying the different demands of the customers appropriately through the inclusion of knowledge management. Due to the addition of knowledge management, the organization Air New Zealand has been able to increase the profitability of the organization along with motivating and improving the morale of the employees in positively performing the organization.
Conclusion
Therefore, this can be concluded that Air New Zealand faced various difficulties regarding the turnover rate of the employees and the political behaviour aspects. From the entire discussion, this has been analysed that there are multiple issues faced by the company as the resistance to change among the employees were huge and this affected the overall profitability of the organization negatively.
However, on the other hand, the communication and transformational leadership of the present leader of Air New Zealand helped in making the organization effective in achieving the different aspects positively, and the involvement of employees in the decision-making process has helped the company to be more competitive in their approaches. Furthermore, this has been noticed that the entrepreneurial thinking and decision-making approach was successful which led to innovation in the in-flight experiences for the customers in a positive manner (Robson, 2015).
Lastly, the role of knowledge management and innovation played a significant role in the development of organizational effectiveness and competitiveness. This has been noticed that with the sharing of the right information at the right time with right people, the overall profitability of the firm increased and this increased morale of employees to serve the customers of the firm in an appropriate manner.
From the above, this can be recommended that there are different strategic recommendations which can play a significant role in managing the strategic objectives of the organization positively.
- Firstly, the strategic alliance is the best option which can be adopted by Air New Zealand for enhancing the profitability of the current set up and gain a competitive advantage in the market in an appropriate manner.
- Secondly, the inclusion of the entrepreneurial creativity and activities can be adopted by Air New Zealand in which the customers can be retained, and the innovation will be beneficial for the overall success of the firm in an appropriate manner
- Lastly, the political behaviour in the organization is required to be reduced in such a way which can impact the organizational effectiveness in a positive manner
References
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