HRM

kingfisher Airlines Workers Scenario

DIAGNOSING THE CHANGE

Change is inevitable to every organization. For the sustainability of the company Kingfisher Airlines it is necessary to diagnose the various change agents and keep them upgraded so that the flexibility against the unforeseen market failures could be mitigated at large.

For effective change management and the implementation of newer changes, Kingfisher Airlines needs to reshuffle its workforce, and human resource management needs to be improved at large (Hindustan Times, 2012). The post-FDI effects on domestic airline industries are shocking and have stirred huge momentum among Kingfisher’s workforce.

Recent headlines show that the management of this sinking, cash-strapped airline has been asking its staff to return to work as employee turnover has crossed the benchmarks.

The employees and many senior strategic managers are unhappy with the decision-making approaches of the current CEO, Sanjay Aggarwal, and the whole hierarchical support has been disrupted and misbalanced at large (Hindustan Times, 2012).

Under such circumstances, it is essential to identify the changes and provide recommendations to tackle them effectively. The following factors must be addressed for diagnosing and managing change at Kingfisher Airlines.

The success and failure of today’s firms are largely dependent on their ability to diagnose changes and implement them optimally. Change may have positive and negative results, but the best-able firms will only support positive results (Hindustan Times, 2011).

Human resource management supports the organizational change models holistically. A number of models are there that will provide clear representation of the organizational position and effects of the change. Among the major diagnostic models the McKinsey’s 7-S model of organizational change management would be the most effective.

The model supports seven factor supports as the change agents namely shared values, strategy, structure, systems, style, staff and skills (Kaur, 2013). The model will provide Kingfisher with a handful of benefits as under,

• The current situation of the organization could be easily examined from a widespread platform.
• Change management would be easier as both rational and emotional aspects are considered.
• Integrated address to the problem areas would be possible and both employee-employer aspects will be considered.
• Every corner peek aspect of employee agitation in aspects of unpaid salary count, poor fringe benefits, improper bonus count and other such financial issues will be rectified economically.
• Higher employee Turnover and decreased staff motivation could be sorted out effectively and the root causes could be provided with the best solution (Kumar and Anand, 2013).
• Value system within the organization will be improved and employee morale will increase that will support structural framework at Kingfisher.
• Improved relationships with stakeholders and potential investors will also support the firm’s long-term sustainability.

The framework though is a complex model but is best suited for firms experiencing failures and Kingfisher Airlines will have much benefit from the model of 7S framework by McKinsey (Mishra, 2010).

The model is framed as below. Each factor is interlinked to one another and change of one agent will affect the whole framework.

Each component part in the company is affected by the major issues caused as a result of ineffective staff management and workforce discrepancy is mitigated at large. The staff relationship at Kingfisher Airlines is affected as a result of salary deadlock issues and the operational finance of the company is struggling under debt situations.

Salaries are creating havoc on employees’ productivity, and a decreased level of work motivation is affecting their potential skills and competency areas (Prasad, 2013).

The relationship between senior management and employees is getting worse every day, and strategic decision-making is not producing fruitful outcomes. The organization’s system of operation is hindered, and so are the leadership styles. This framework will widen both internal and external supporting factor analysis.

Vijay Mallya’s autocratic leadership has ruined the whole HR structure of the organization and thus the shared values of the firm suffer from unethical biasness (Rawat, 2012).

Style of negotiation suffered largely and the lack of trust has widened up the scope of conflicts. The senior management hierarchy is been facing issues as the mangers are dissatisfied with the CEO’s decision.

SWOT analysis of the changes based on the diagnosis

S-STRENGTHSNewer investment infusion policies Momentum gain from potential investors Viable business plan support Increased flexibility and systematic plan development for mitigating risks Additional reward payment for delayed salary payment Effective licensing strategies has supported further sustainability Frequent meetings and discussions has melted the situation to some extent and employee relationship enhanced largely (Singhal, 2012).

W-WEAKNESSESHigher business viability Improper hierarchical support Employee-employer agitation Struggling debt enhanced the pace of bankruptcy (Singhal, 2012). Demotivated employees Lack of trustworthiness will hinder the good relationship among the staffs Improper staff management will hamper the other areas of system, strategy, skills and styles.

O-OPPORTUNITIESFairer future plans in regard to financial situations Account freeze lifted to support increased cash flow Non-strategic investors are showing increased interest in Kingfisher Airlines (Rawat, 2012). Curtailment of several dozens of flight will keep the airline industry financially afloat

T-THREATSLoans are non-performing assets Higher agitation among employees will ruin the overall relationship and the organization will be on the verge of extinction. Increased staff turnover will cause peak season difficulties (Rawat, 2012). Frequent employee downsizing will cause the airline to face future risks Fall of airline stock will create more difficult situations for Kingfisher

The changes thus facilitated will help the airline industry to survive at the end of extinction and employee trust factor could be regained back.

The strengths and opportunities should be emphasized the most and the changes thus recommended will help a lot in lowering the ill-effects of staff agitation (Subha and Archana, 2012).

The constant approach from the management side will help in effective decision making and present difficult situations could be dealt with largely.

Major areas of resistance with their recommended strategies includes,

• Intense resistance from employee side with high level of agitation and low productivity. Non-payment of salaries will demotivated them and the performance level of the airlines will reduce considerably (The Economic Times, 2012).
• Struggling financial conditions and non-performing assets will ruin the sustainable base of the airline industry and the market position of it will be worsened in future times.

Recommendations include,

• Fair system of compensation with periodic fringe benefit support that may not always be financial support. Non-financial support and benefit will also motivate the employees to perform better and their long term partnership with the organization will remain unaffected (The Economic Times, 2014).
• Loans and other financial support could be gained from business alliances and strategic partnerships. The organization has recently shown interest in non-strategic investors that will help regain the financial status of Kingfisher at large.

 COMMUNICATING THE CHANGE

Part A

Topics considered	Timeline	Shareholders	Purpose	Communicator	Message	Author	Delivery method	Measures
Plan preparation for supporting better operational approach for Kingfisher Airlines	Required now	Employees and workforces including crew members, staffs, pilots and other strategic managers.	Tell and share. Value providence to the employees’ efforts with proper compensation system and salary providence.	CEO, Sanjay Aggarwal and owner Vijay Mallya	Message circulated through e-mails, frequent meetings and discussions. Other means include news letters to employee, billboard messages and video-conferencing tool usage.	CEO and strategic and HR executives	Both verbal and non-verbal method will help in information delivery and general meetings and press conferences will aid better results.	Change acceptance by the employees and also by the employers will reduce inconveniences and the strategic sustainable base of Kingfisher will remain unaffected (The Economic Times, 2014).
Strategic communication for acknowledging employee empowerment measures at Kingfisher Airlines	Needed urgently at present	Employees and staffs	Ensure employee satisfaction levels and thus promote relationship management among the employees and the employers. Positive reinforcement will increase level of motivation (The Economic Times, 2014).	CEO and other strategic managers	Aid of both formal and informal communication will increase the flow of information within the stipulated time frame and message distortation will be reduced thus uplifting the genuinity of the message.	CEO, MD, HR Executives and other strategic managers	Both formal and informal measures will help in important information delivery and relationship will have transparent base.	Acceptance of the required change will reduce union engagement and productivity level will increase along with increased employee morale.

Part B

Dear partners,

Thanks are extended for your high level of dedication and support to Kingfisher Airlines over the past years. With your support as our main strength, our company has recently adopted a number of strategies for uplifting operations and collaborations.

Current issues regarding non-payment of salary and other compensation are on the rise, and change measures are mandatory to stabilize compensation policies and plans.

Certain perquisites are essential for the organization’s sustainability, and transforming the functions will provide answers to the staff support alternatives. Considering the following focus areas will mitigate the resources’ underperformance.

• Increased focus on strategic alliance and strong partnership prospects will decrease service gaps.
• High focus on public relation especially employee relationship management will enhance the goodwill of the company and competitive advantage could be achieved easily.
• Employees should be treated as the most valuable assets of the organization and higher recognition support to them will increase the productivity of the airline industry.
• Increased value supply chain will lower financial constraints and effective and transparent communication will increase decision making flexibility. Changes could be accepted positively and the transformation will be fruitful at large. Thus every single input from both your side and our side will help in uplifting the global position of this sinking airline giant.

Thanking you

Sincerely

CEO

Sanjay Aggarwal

Part C

The transformative communication agenda will add fuel to the strategic corporate communication and relationship management will improve at large. The bureaucratic management style at Kingfisher has limited the organizational structure expansion of the airline industry, and its formal line organizational structure is hindering the desired changes.

The changes will be supported by enhanced communication and market sustainability will increase. The transformative communication media is being chosen because it will support change implementation in the most effective manner (The Economic Times, 2014).

Newsletters, meetings, and press conferences will provide transparent information flow, and employees could increase their trust in their management. The periodic evaluation of changes will give a true picture of the progress path and the effectiveness of the models incorporated (Rawat, 2012).

The agitation of the employees is clear from their opinions and one of them mentioned ‘We are asking for our living, and that is not negotiable. We are not going to agree to any management negotiations on part payment of salaries for two, three or four months.

After sticking back with the airlines, we have been called criminals. We do not think anything acceptable will come out of the meeting’ (Hindustan Times, 2012). However, the CEO has a different opinion, and he stated, ‘There are positive developments that give us confidence in our future plans.

Also, post the announcement by the Government of India permitting Foreign Direct Investment in domestic airlines by foreign airlines, the dialogue with potential investors has gathered momentum. Even non-strategic investors are showing interest in investing in Kingfisher Airlines, which is a good sign’ (Singhal, 2012). T

he above opinions explain the tussle in between employees and management striving for changes. Only collaborative negotiation in this regard will provide better instincts and long term business relationship could be achieved by transformative communication (Subha and Archana, 2012).

Continuous communication will reduce the scope of agitation, and future stakeholders’ relationship maintenance will be healthier.

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