Organisations & Management – Air New Zealand

Introduction

AirNewZealand is an international and domestic airline group which provides air passenger and cargo transport services within New Zealand, as well from Australia, the South West Pacific, Asia, North America and the United Kingdom. AirNew.Zealand also compasses business units providing engineering and ground handling services. Subsidiaries extend to booking systems, travel wholesaling and retailing services

History

AirNewZealand's began in April 1940 when its forerunner airline, Tasman Empire Airways Limited (TEAL) was incorporated. TEAL began its first trans-Tasman services with flying boats, and over the years steadily expanded the size and scope of its operations. The route network was expanded from Australia and the Pacific to Asia, the USA, the UK and Europe. In October 1953 TEAL became jointly owned by the New Zealand and Australian Governments, and in April 1961 the New Zealand Government assumed full ownership.

The main purpose or the main vision of the air New Zealand is that to be everywhere in the world. Air New Zealand operate the smallest aircraft in the Air New Zealand Group they also connect people to more destinations across New Zealand to do everything never failing to impress their customers. Customers are the primary reason for their existence. The focus of everything to do is on providing the highest standard of service and convenience to the customers. The Purpose is to connect people to New Zealand and to the world Objectives Of Air New Zealand

• Passionate- That get up and go factor that sparks us to perform
• Proud- Having a sense of achievement that goes with knowing a job is well done
• Resourceful- Making a positive contribution through being innovative, flexible and efficient
• Respectful- Being honest, open and co-operative. AUTHENTIC - Genuine in everything we do
• Committed- Focused on getting the best outcome for everyone

According to Dr. Henry Mint berg, there are three types of roles which a manager usually does in any organization.

Interpersonal Roles: - In this management the information from one source and distribute to one or more than one source For example :- Air new Zealand gives the information about the arrival and departure of flights up to date information.

Decisional Role: - manager use to plan strategy and utilise the resources to achieve goals in decisional management. For example: - Air new Zealand management gives the decision that they will start a new flight service from Auckland to India.

Interpersonal Roles: - the role of managers that deals with the working with other people is known as interpersonal. For example: - Air New Zealand management share their information with their staff and communicate with them by doing meetings this is known as interpersonal roles.

Technical: - AIR New Zealand Technical offers a comprehensive range of engineering and airline support services world-wide from its technical units in Auckland and Christchurch. For example:-

• Design Services
• Operator Services
• Production Services

Human: - Human management skills help to operate for the human power which is being associated with the organisation. For example:-Air New Zealand management helps their customers by giving a discount on their flights or by giving a lot of variety to their passengers

Conceptual: - conceptual skills are able to see the main basics in any situations who can see the total management carry on relationship and identify the changes. For example: - Air new Zealand management discuss the basic concepts or problem with each other. In this way they achieve their goals and attain success. 

Structured problem :- It involves the goals that are clear and are familiar which have been occur before and are easily and complete information about the problem is available. A repetitive decision can be handled by a routine approach. For example: - Air new Zealand management have problem in landing as there is sometime windy and the moisture went extremely low and the plane losses its balance.

Unstructured problem:-the problems that are new or unusual and for which the information is ambiguous or incomplete and that will require custom made solutions. In this the decisions are unique and non- recurring also are generating unique reasons. For Example: - the accident which caused to the Malaysian airlines is only a unique thing which we can’t imagine or thing . This type of problem is known as unstructured problem .it needs a quick response.

(d) If air new Zealand has any structured problem like the have any problem regarding their flights or staff or if they have any problem with the landing of the plans they discuss their problem with their management or with the manager by doing meeting. In this way they solve the structured problem

(Q4)  Task focus: - In task focus the management focus on its work to be done in a specific period of time.

For example: - As Air new Zealand management focus on the manufacture of their new flight. They do their manufacture process in a proper time period.

People focus: - In people focus the management focus on the new benefits which they can offer to their customers. For example: - Air New Zealand management focus on their new offer they gave special discount on their specific flights to attract passenger.

Efficiency: - It means the ability to do something or produce something without wasting time or money. It means doing things right. For example: - Air New Zealand makes aircraft which consume less fuel and give better output.

Effectivenes: - Effectiveness is the capability of producing a desired result .it means as in management we set a target. For example:- Air new Zealand target to attract more customers and to get as many passengers as possible to get the desired result. The Inner strengths and weakness can effect the process of an organization. Internal factors can strongly affect how well a company meets its objectives, and they might be seen as strengths if they have a favourable impact on a business, but as weaknesses if they have a deleterious effect on the business. There are two type of internal factor SWOT Analysis and 5m model

The internal analyses:

Strengths

• Any activities the organisation does well or any unique resources that it has. For example: - Air new Zealand management has its strengths in their aircraft and in their staff.

Weaknesses

• Activities the organisation doesn’t do well or resources it needs but doesn’t possess. For example: - Air new Zealand management has the problem of delaying in the time of flight and of the meals served in the flight.

Man

• In Air New Zealand management the staff plays a very important role. The employee or the staff look after the shifts of the air hostess and have to look for the turn of the captain. They have the knowledge about the arrival or the departure of the flight.

External Factors: -The factors which effect Outsideinfluencesthat canimpactabusiness. Various externalfactorscan impact theabilityof a business or investmenttoachieveitsstrategic goalsandobjectives. These external factors might includecompetition; social, legaland technologicalchanges, and the economic and politicalenvironment.

PEST analysis

• Political factors
• Economic factors
• Socio-cultural factors
• Technological factors

Political/legal

• Environmental protection laws
• Taxation policy
• Employment laws
• Government policy
• Legislation
• Example:-air new Zealand management has taxation policy they pay tax to government every year. They also employ new person so that they can also show their talent.
• Economic factors
• Inflation
• Employment
• Disposable income
• Business cycles
• Energy availability and cost

Example: - Air New Zealand changes its staff regularly due to which it give employ new ones and also spend money on buying new aircraft. Sociocultural factors

• Demographics
• Distribution of income
• Lifestyle changes
• Example :- Air new Zealand management’s staff has lifestyle different from others and the manger distribute their salary according to the grade they have in the management

Porter’s model is based on the insight that a corporate strategy should meet the opportunities and threats in the organizations external environment. Especially, competitive strategy should base on these forces determine the intensity of competition and hence the profitability and attractiveness of an industry. The objective of corporate strategy should be to modify these competitive forces in a way that improves the position of the organization. Understanding of industry structures and the way they changes.

Threat of New Entrants

The competition in an industry will be the higher, the easier it is for other companies to enter this industry. In such a situation, new entrants could change major determinants of the market environment (e.g. market shares, prices, customer loyalty) at any time. There is always a latent pressure for reaction and adjustment for existing players in this industry. The threat of new entries will depend on the extent to which there are barriers to entry. Example: - Air New Zealand management changes its market share or the prices of the flight when they are in the need of it.

Threat of Substitutes

A threat from substitutes exists if there are alternative products with lower prices of better performance parameters for the same purpose. They could potentially attract a significant proportion of market volume and hence reduce the potential sales volume for existing players. This category also relates to complementary products. For example :- If the Singapore airline or Malaysia airline has lower flight fares then air new Zealand faces a great loss.

Air new Zealand management is currently facing a problem that Industry-wide cyclical problems are contributing to Air NZ’s operating performance difficulties, with factors such as high fuel prices and the low value of the Australian and New Zealand dollars against the US dollar impacting on its cost structure; Air NZ-specific problems are further contributing to the airline’s operating difficulties, including heavy competition in the Australian domestic market and the recent grounding of the Ansett aircraft at Easter that has pressured Air NZ into bringing forward its aircraft replacement plans for the airline.

There appear to be three key options Air NZ could consider to address its financial problems:-

• Immediate relief to its high debt levels and intensive capital investment requirements might be provided through a sale of all or some of Ansett;

• Initiative could be taken to free up cash in the short term to provide Air NZ with sufficient flexibility to enable it to weather losses while attempting to turn the fortunes of Ansett around; this might provide a window of up to two years to achieve improvement in the Ansett operations which might restore investor confidence leading to more fruitful capital raising exercises in future;

• Seek Government intervention by either easing ownership limits to enable Air NZ to attract additional foreign airline equity and/or inject capital, or provide some other form of financial assistance, to the airline. Other issues that may be of interest to Ministers are whether:-

• Air NZ’s ownership of Ansett gives rise to public benefits for New Zealand through, for example, increased tourism; education etc. 

Kotter’s Eight Step Change Model

• Step 1: - create urgency
• Step 2:- Form a powerful coalition
• Step 3:- Create a vision for change
• Step 4:- Communicate the vision
• Step 5:- Remove obstacles
• Step 6:- Create short-term wins
• Step 7:- Build on the change
• Step 8:- Anchor the changes in corporate culture

Step 1: Create Urgency:

First of all for a proper management the organization must clear why there is a need or urgency for the change at this point of time. As in air New Zealand they should have they quick service to provide best facility to their customers

Step 2: Form a Powerful Coalition:

The organization must need to ensure to the employees that a strong leading is there to guide through the change. Manager in air management must have meeting with the staff to tell them about the goals.

Step 3: Create a Vision for Change:

Senior members must put forward the future aspects of the change. They should have variety in their food and also provide good comfort to have good relation with their customers. So that they can achieve goals in future.

Step 4: Communicate the Vision:

Organization must communicate the benefits to this change with their employees. Manager must have group discussion about the benefit or profit they had made with their staff management

Step 5: Remove Obstacles: The staff should be motivated to accept the change with positive attitude. They should follow the every rule which the management says.

Step 6: Create Short-Term Wins:

Everyone wants positive results to be fast, so the employees needs to be ensured that there are short term successes.

Step 7: Build on the Change

Kotter argues that many change projects fail because victory is declared too early. Real change runs deep. Quick wins are only the beginning of what needs to be done to achieve long-term change.

Step 8: Anchor the Changes in Corporate Culture:

The change must need to be culturally accepted, this can happen through proper management principles. Everyone must be co-operative and have to accept the change with smile.

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