HRM 587 Final ExamSet 2 Answers

1. (TCO All) For the next set of questions, you will first select ONE of the TCOs of the course. Then, you will be asked to write an essay about the project you worked on this term over your two companies’ change program based on the TCO you selected above. Select the TCO your essay question will cover: TCO A - Given that progressive and successful companies require their employees to embrace change, examine how changing work conditions impact the employees. TCO B - Given the inherent reality that all organizations must experience change in order to improve, demonstrate how “models” are used in Change Management, for diagnosing an organization’s need for change. TCO C - Given external, internal and/or multi-levels of organization factors that drive change, assess and create a leadership model which supports and promotes each type of change within the organization. TCO D - Given that an organization’s mission and vision will determine its strategy towards change, ensure that an organization’s change initiative is aligned with and capitalizes on its culture and mission in preparation for change. TCO E - Given a selected Change Management implementation “model”, determine the causes of change and develop a plan of action to implement the change. TCO F - Given that both organizations and their employees commonly resist change, understand how to recognize and overcome barriers to change and develop a strategy to manage resistance to change that will ensure successful implementation of change. TCO G - Given that developing a “vision for change” and communicating that “vision” is a critical part of the change process, analyze the key elements of the “vision for change” and develop a strategy to communicate the change to the stakeholder. TCO H - Given the organization’s goal of creating and implementing a sustainable change while moving toward becoming a “learning” organization, develop a plan to implement change in a sustainable manner that can be applied to any change. Using the TCO you selected from the list above, which you felt was most relevant to your project this term, write an essay answer explaining how the change management you saw in one of your companies from your project this term followed or failed to follow the theory of success ingrained in the TCO you have selected. State the #1 thing you think that company’s change agent did which most contributed to the success or failure of the change and why that relates to the TCO you selected. · Include in the answer the name of the company you are discussing. · Explain/analyze why you think this way. (Points : 35) Ans I have selected the TCO B which states that “Given the inherent reality that all organizations must experience change in order to improve, demonstrate how “models” are used in Change Management, for diagnosing an organization’s need for change.” The Burke-Litwin Model highlights the main elements or source of major transformational change and also the changes that are incremental in nature. The four transformational factors are external environment, mission and strategy, leadership, and organizational culture. The main cause that makes a company to make changes is the external environment. It can force any organization to make changes to its mission, culture, leadership, and operating strategies. Changes in the 12 drivers in The Burke-Litwin Model bring a series of change to the overall structure. Various internal and external organizational factors that influence the changes in the organization are: Four transformational factors External environment Mission and Strategy Leadership Organizational Culture Internal organizational factors Structure Systems (Policies and Procedures) Management Practices Work Unit Climate Tasks and skills Individual Values and Needs Motivation Level Individual and Overall Performance Sources: (Palmer et. al., 2009). For my research project, both airlines "Delta" and "United Airlines" have environmental factors that have affected their performance. Jet Fuel prices have driven up the operational cost of both companies. Internal factor such as unions and employee issues have impacted the both the airliner’s performance and have also impacted the top line and bottom line of these two merged companies. Both airlines have had to make some tough decisions in terms of downsizing employees and dealing with unions. Leadership for both airlines has played a chief role in changing the company's course of direction. The airline mergers and bankruptcies have also influenced external factors for airline industry. There are guidelines that have been put into practice by Federal bankruptcy courts on the future of the merged airlines to avoid or deal with the bankruptcy issues. Both the airlines have been making significant integration and restructuring efforts as part of their mission and strategy. Both carriers had a lot of expectations from these mega-mergers in the airline industry that made them the two largest airlines in the world. Delta executed well in blending technology from Northwest and in keeping employee morale high whereas the United has been struggling post the merger and have had some of the toughest year in integrating the merger with Continental. Leadership team in both these airlines companies has played a crucial role in the post merger and integration activities. Delta got its pilot unions to agree to a common contract. This has helped Delta to have a crucial labor group on board from the start. Delta’s pilot union has accepted equity ownership arrangement in the new company. Financially, the merger provided a big boost to Delta’s bottom line. (Mouawad, 2012). In case of United Continental Airlines, Jeff Smisek, executive and integration teams within the company have tried to integrate various systems within the company and have made some tough decisions related to operational issues like cleaning of airplanes, employees, perks to offer in the frequent-flier program. That culture of cooperation existing in Delta contrasts with the poor relations that Northwest had with many of its own labor groups. One of the things Delta has always had with their workforce is flexibility, and that drives their culture. Delta is being rated as the airline providing the best customer service. In Delta, employees strive for excellent customer service standards and understand it as one of the important factor for Delta’s success as a company. United Continental airline has struggled to deal with labor issues and seems to have offended its most important customers, business travelers. All these major transformational factors have had a major impact on the Structure, Systems such as Policies and Procedures, Management Practices, work Unit Climate, Tasks and skills, Individual Values and Needs, motivation Level and Individual and Overall Performance for both these airlines. The Burke-Litwin Model shows all these changes and also proves a point that any of the factors of this model impacts the overall organization’s functioning. Delta has made great strides and has been able to manage the high fuel prices and a macroeconomic downturn. United Continental Airlines have not been doing well financially and have posted lower earnings and they have also reduced their employee headcount. There are things which are out of control for the company and the leadership team is trying to put the system in place. In case of both these airlines, The Burke-Litwin Model clearly shows that both these companies need to improve on the internal organizational factors and work to address the external challenges faced such as high fuel prices, increasing competition, economic recession, low air travel or demand and tough governmental regulation. References: Mouawad, J. (2012). For United, Big Problems at Biggest Airline. Retrieved Dated 16th January, 2014 from Palmer, I, Dunford, R. Akin, G. (2009). Managing Organizational Change: A multiple perspectives approach. 2nd Edition. The McGraw-Hill Companies. 2. (TCOs A,E) Your project this term asked you to compare and contrast two companies’ change projects or programs for change. This question will review what you learned about the change projects in a continuation of your project. It will ask you to apply course information to your project companies. For your answer, be sure to reference the names of the companies you studied in your project this term to help your instructor determine the score of your response. Recall that external and internal pressures often impact implementation of change in companies. For this question, please write an essay answering these questions: 1. Define specific (at least 2 each) external and internal pressures that will (or did) affect the implementation of the changes in your two companies. (10 points) Ans: Two external and internal pressures that affected the implementation of the changes in these two companies are: - The airline industry crisis has been accentuated by the September 11th event, high prices of gasoline, Hurricane Katrina and finally the economic recessions. The effect of these events has led to too many problems and issues for the airline industries and companies. - Consolidation in airlines and markets, labor troubles and increasing gas prices are some of the most obvious issues impacting the industry. There have been major restructuring, bankruptcy, liquidations, or consolidations of major network carriers. Both airlines had environmental factors that have affected their performance. 2. Name two strategies of handling these pressures that you would (have) suggested to the company leaders as being the most effective in managing those pressures during the implementation phase. (10 points) Ans: Two strategies of handling these pressures are: 1. The structure of both airlines has its hierarchical place. But, the communication, authority, and decision making also needs a formal structure at the lower levels of the airline companies. When all four airlines merged into two airlines, both brought their own way of working, management systems, structure and work unit climate. Both had their own separate ways of approaching rewards programs, reservation systems, and cargo loading procedures. These had to meld into one working model that both airlines could relate and understand. Management must be on board with new ideas, visions, and procedures. 2. Both the airlines should try to avoid union conflict by reaching a labor deal. Delta and its management persuaded its pilot unions to agree to a common contract which helped avoid resistance from the union post the merger. This has helped Delta to have a crucial labor group on board from the start. Unlike the situation at Delta, United has struggled to combine reservation systems, flight operations and work groups. Also, they have been facing various union issues such as United pilots picketing over a new contract. Delta’s pilot union has accepted equity ownership arrangement in the new company. The merger definitely places Delta in a better position to ward off growing competition from European and US airlines. United Continental has struggled to efficiently deal with labor issues, such as the re-signing of contracts.