Management and Organisational Behaviour Qantas
Assignment 3
Management and Organisational Behaviour
Prepared for
Dr Retha Wiesner
Faculty of Business & Law
University of Southern Queensland
Toowoomba, Queensland
by
Student name: W. Amal Peiris Student number: U1031128
MGT5000
INTRODUCTION
Qantas faced the crisis in 2011. However it has commenced in 1990 when it was deregulated the government through privatization. Culture of Qantas remained unchanged and it operated as a government organization.
Since Qantas was a government owned organization its cost base was not competitive compared to other Airlines.
Qantas responded with low-cost Jetstar and just like Virgin Airways, the latter also moved into international flight paths to provide an alternative to passengers. Since then Qantas set out on a modernization path whilst adapting to the global environment. However its cost base continued to climb.
Three unions went on a strike and it resulted in 80,000 passengers being affected, more than 600 flights cancelled and seven aircraft grounded. The impact has been felt at both domestically and internationally. On 29 November 2011, Qantas chief executive Alan Joyce made the decision to ground the airline’s entire fleet. This action stranded 68,000 passengers around the world and locked out Qantas employees in response to the protracted industrial dispute.
Since parties have failed to resolve the dispute within 21 days, went through a binding arbitration.
As consequences to the Qantas crisis the main challenges are to rebuilding of trust, restoring good working relationships and rescuing Qantas’ reputation with its staff, customers, the government and other stakeholders.
CRITICAL DISCUSSION ON THE POWER ISSUES EVIDENT FROM THE CASE
Power could be define as, * the ability to mobilize resources (human and machine) to get things done. * a resource, not an act. It is an ability, a capacity, a potential; and it does not have to be used. * something which is
Management and Organisational Behaviour
Prepared for
Dr Retha Wiesner
Faculty of Business & Law
University of Southern Queensland
Toowoomba, Queensland
by
Student name: W. Amal Peiris Student number: U1031128
MGT5000
INTRODUCTION
Qantas faced the crisis in 2011. However it has commenced in 1990 when it was deregulated the government through privatization. Culture of Qantas remained unchanged and it operated as a government organization.
Since Qantas was a government owned organization its cost base was not competitive compared to other Airlines.
Qantas responded with low-cost Jetstar and just like Virgin Airways, the latter also moved into international flight paths to provide an alternative to passengers. Since then Qantas set out on a modernization path whilst adapting to the global environment. However its cost base continued to climb.
Three unions went on a strike and it resulted in 80,000 passengers being affected, more than 600 flights cancelled and seven aircraft grounded. The impact has been felt at both domestically and internationally. On 29 November 2011, Qantas chief executive Alan Joyce made the decision to ground the airline’s entire fleet. This action stranded 68,000 passengers around the world and locked out Qantas employees in response to the protracted industrial dispute.
Since parties have failed to resolve the dispute within 21 days, went through a binding arbitration.
As consequences to the Qantas crisis the main challenges are to rebuilding of trust, restoring good working relationships and rescuing Qantas’ reputation with its staff, customers, the government and other stakeholders.
CRITICAL DISCUSSION ON THE POWER ISSUES EVIDENT FROM THE CASE
Power could be define as, * the ability to mobilize resources (human and machine) to get things done. * a resource, not an act. It is an ability, a capacity, a potential; and it does not have to be used. * something which is
References: University of Southern Queensland, Faculty of Business and Law, 2012, MGT5000 Managing organizational behaviour, Study book, University of Southern Queensland, Australia, pp. 120-141. Wood, Zeffane, Fromholtz, Wiesner, Creed, A2010, Organisational Behaviour core concepts and applications, 2nd Australian edn, , John Wiley & Sons Australia Ltd, Milton, Qld, Australia. ABC (2011) What is the Qantas dispute all about? http://au.finance.yahoo.com/news/What-Qantas-dispute-abc-2933944078.html?x=0 ABC Updated October 31 Val Gostencnik and John Tuck (2011) Six lessons from Qantas, http://www.corrs.com.au/THINKING/INSIGHTS/SIX-LESSONS-FROM-QANTAS/ http://en.wikipedia.org/wiki/2011_Qantas_industrial_disputes; viewed on 31 May 2012.