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Affect of the SOPs, behavior, and organisational culture
The 4Ps which are product, price, place, promotion, and a fifth which is people, is a marketing strategy employed by most firms to gain competitive advantage. Marketing strategy indicates the specific markets towards which activities are to be aimed. Negative organizational culture has impact on market activities. Every part of the marketing mix can be severely affected by organizational culture and cultural differences.
The marketing concept states that a firm should satisfy its customers by providing products that satisfy its customers. Customer satisfaction is a part of the marketing mix which is a major goal of the marketing concept (Jobber and Lancaster 15). For an airline company, quality service is its primary product, and a marketing strategy should be to satisfy passengers inside an airplane. There are other products that an airline may venture, and this includes buying and selling of airplane parts, but the major product is air transport.
Price is how the firm converts its product or service into revenue (Keillor 64). The price should reflect how a service or product is positioned in the market. Inconsistently positioning the service with the price is a mistake. If an airline states in its promotion that its airline tickets and all of its other products are affordable but then the charges are relatively high with respect to the service (in terms of quality) it offers to the passengers and customers, it creates a negative repercussion on the airline.
Another part of the marketing mix is promotion. Promotion includes image and reputation. If a firm has bad image it reflects its organisational culture and will negatively impact the operation and the business as a whole.
An example of a negative effect of organisational culture is the Air India experience. Despite government intervention, the four Ps suffered drawbacks for Air India. In fact, it should be government intervention that must be eliminated to make the airline be competitive with the rest of the commercial airlines.
Their first initiative of restructuring and eliminating the bureaucratic mindset managers and employees drew some positive results. But again the airline suffered low cash flows, or it was not earning at all. In accounting parlance, cash out was greater than cash in, and so a deficit.
Prices for airline seats of Air India could not be raised as they were not competitive. And there was no quality for their products and services. The airline had to sell second-hand parts and engines to recover costs of operations. But of course, this was only temporary. Promotion wasn’t good enough as there was a negative feeling from the public about the airline’s service. As a whole, the airline needs a long and complete overhaul to erase the negative feelings from the general public. Employees also need to be trained and professionalised.
An example of a positive result of organisational culture is the Air France and KLM experience. Out of the merger, prices were lowered but became competitive, and this is because of the quality service.
When we say competitive, it doesn’t mean it is low price, but it could be higher over other airlines, and due to the quality of the services offered by the airline crew and the staff, the price cannot be questioned. The positive culture in Air France-KLM merger created a good reputation so that advertising and promotion were well accepted by the people.
Advertising is a paid-form of non-personal communication that uses television, radio, and other forms of media including the internet. The marketing strategy that Air France-KLM introduced focused on information about the new organisation with the two sets of policies and philosophies from the two nationalities, French and Dutch. How these two organisations adopted to the two set of cultures was a big challenge but it was what made Air France-KLM unique.
Affects on financial planning
SOPs and culture influence how financial planning is done. In a research (BMAS 2008, qtd. in Sackmann 210), it was found that organisational culture, that includes behavior and management, affects about 31% of the variables in a financial performance measurement. Culture also affects workplace quality and adaptability. (Sackmann 210)
The corporate culture of Air France-KLM enabled the managers to formulate a viable financial plan that considered the fundamental factors in choosing an appropriate partner, taking into consideration the cultural, strategic, organisational and financial traits of the proposed partner.
A proper match was planned and created. There was a need for involvement of the important stakeholders and articulation of an effective formula. The executive team evaluated and constructed a plan that considered strategic and tactical goals. Alternative options were also considered, and it was concluded that the merger was financially and commercially viable.
Affects on performance of the staff in adapting to new introduced strategies
The right culture can influence people to perform well in an organization. Culture can also lead to a climate of learning and creative response to new threats and challenges. A strong culture motivates employees to perform according to the dictates of their mind and conscience without the manager dictating them what to do. It can shape and guide behaviour to attain organisational goals.
Employees are influenced by negative behaviour in the workplace. For example, ethics is expressed in the office and co-workers influence the ethical choices of others, and this may reflect in their unethical behaviour. The more an employee is exposed to unethical practices of the organizational environment, the more he/she practices unethical behaviour. (Pride and Ferrell 108)
Negative culture is also expressed when corruption is rampant in the organization. A corrupt culture does not encourage creativity and productiveness, and employees are not open to change and do not suggest what is good for the organization. (Pfister 139)
Studies have shown that there is a positive connection between culture and performance. Kotter and Heskett (qtd. in Daft 387) in a study indicated that firms that gave a priority to cultural values were more successful than firms that did not.
Affect of SOPs
SOPs influence behaviour of employees. Tasks and responsibilities of crewmembers are spelled out in the SOPs. How these SOPs are adhered to determines the quality of service the aircraft crew and the airline in general deliver to its clients and customers. SOPs are taught or passed down to the crew members and employees by airline instructors, trainers, check airmen and management pilots, during seminars or on-the-job. If junior officers do not follow SOPs, it means that captains are tolerating this kind of attitude, and it will reflect on the junior officers and the crew members’ behaviour, and eventually on the quality of service of the airline. (Tullo 70)
Case studies
Air France-KLM
The merging of Air France and KLM is a big event for the countries involved and for the entire aviation industry. This is the era of mergers and acquisitions, of growing big. Global organisations feel that growing big is one way of getting edge in the airline industry; growing big means consolidation. (Janik 8)
But Air France is no stranger to mergers. Air France was founded in 1933 with the merging of five carriers; KLM Royal Dutch Airlines started in 1919. After World War II, Air France was under government management. In 2004, it joined forces with KLM. Today, this formidable airline works on three business activities: passenger, cargo, and maintenance services for parts and engine overhaul. The new merger is effectively run and managed by professional managers resulting into positive behaviour on the part of employees and airline crew members.
Organizational Culture
The French corporate culture follows the traditional hierarchical structure but the Dutch culture forces anyone to have a “thick skin”. But the whole merger created a dual hub operation, i.e. between Paris and Amsterdam, instead of a competition. The merger also created a coordination of sales activities and a network and schedules between the two were optimised. (Clark 72)
Air France has strong financial standing because it is state owned. It also has a good reputation as an airline with positive organisational culture. The airline speaks of quality leadership which results in punctuality and comfort in service. This also translates into high frequency on routes on domestic and international markets or clientele. Because of good organisational culture, it has distribution effectiveness. (Kernchen 46)
Positive SOP
This positive organisational culture influenced the working behaviour of employees, especially its pilots. When Air France flight A430-300 (F-GLZKL) met a disastrous accident, the investigation stressed that the accident was due to human error which was caused by severe weather condition.
This human error caused mechanical stresses on the aircraft’s design that eventually led to the accident. But the human error was not blamed on organisational culture, unlike Garuda Indonesia. Investigators in the Garuda accident went beyond human error because of the organisational factor. Moreover, the pilot and crew of Garuda were not used to following SOPs, and SOPs were always taken for granted.
But in the case of Air France, the investigation was limited to human error; organisational culture was not to blame considering that Air France has a positive organisational culture. With the merging, the multi-culture of the new merged organisation did not affect the staff and the operation.
During the merging, the airline industry witnessed the creation of a new kind of organisational culture wherein both airlines were able to retain individual brands at the same time the shares of the merged entity, which is now called Air France-KLM, were traded in the stock exchanges. The merger met a new challenge of dealing with cultural differences between Dutch and French employees. (Clark 72)
Effects of change
In creating one entity out of two organisations, there are repercussions, i.e. it can create a negative impact on the employees who are experiencing a new kind of management and leadership. This management style is different from the one they experienced before the merger.
There is also the issue of ‘cultural fit’. Cultural fit is defined as ‘attitude toward risk, decision-making approach, and preferred control and communication’ (Cray and Mallory 82). But in the case of Air France-KLM, the effect was minimal considering that the two managements expertly handled the problems and possible risks in the merger activity.
Some firms rush to action without proper premerger preparations. The culture of the two organisations has to be integrated and the employees have to adjust to such change. A study of mergers of large organisations found that managerial talent is the most important instrument for creating value in a merger activity. (Marks and Mirvis 64)
Air France and KLM formed a pre-combination phase which involved analysis of the two company’s profile, culture and other relevant information needed for a new beginning as one organisation. Top managers of the two organisations were prepared and all the necessary data and information were provided.
The merger created a positive behaviour on the part of the crew members and ground employees of the two airlines. (Clark 73) There was a positive effect on the organisational behaviour as the performance of Air France-KLM was superb because it was perfectly managed.
PESTEL Analysis
Political – Air France-KLM operates within the stable political climate of the European Union. The EU declared an ‘open sky’ policy to the thousands of flag carriers and commercial carriers entering Europe. This creates a healthy competition and beneficial to the riding public.
Economic – the company relies on the business climate that the EU has created. The member states collaborate with each other when it comes to commerce and trade and this is where flag carriers can have the opportunity of transporting people and goods. The economies in the EU member states have significantly grown as a result of the integration. The financial crisis in Spain is affecting business activities in the region but the European Council has come to its succour.
Sociological – There are some drawbacks with the presence of trade unions; labor unrest threatens the stability of the local economies and the business climate. The carrier is also affected by terrorist threats, rising prices of oil, and other negative factors. Employee performance is affected by the unstable climate created by strikes and lockouts. Within the EU member states, trade unionism is very much alive.
Although it is imperative that workers exercise their rights, it seems in the EU workers’ rights are absolute, creating an atmosphere of uncertainty for business. Moreover, employees’ future also becomes uncertain. It affects their behaviour and performance at work.
Another social uncertainty is the terrorist threat which creates fear and panic on the part of the workers. If workers are afraid, they won’t go to work and stay at home. Drive for work is overpowered by fear. If there are chaos and uncertainty in the workplace, the business climate also becomes unstable.
Technological – the great bounds and improvement of technology can convince people to stay home and not to travel; thus tourism may suffer because of this. But technology too has helped the carrier in many ways and in serving its clientele. The introduction of an up-to-date and state-of-the-art website is helping the airline achieve its goals.
Though technology may have some negative effects, it has more positive results such as fast and effective communications, transportation much faster, and business can be conducted without much effort. Technological innovations triggered the information revolution and enhanced globalisation.
Employees are more effective with technology and their services much appreciated. Crewmembers and pilots of an aircraft are kept abreast of the latest information about their aircraft, which is very beneficial to their performance in flying. Technical aspects of an airplane are made easy, and aircrafts of Air France-KLM are equipped with new electronic components that helped pilots and crew fly their aircraft effectively and provide quality service to passengers.
Moreover, communication between an aircraft in the air and in the ground is effective and uninterrupted, and instructions for the crew are relayed and followed to the letter, as guided by the company’s SOPs. The crew are inspired and motivated. It makes service quality oriented.
Environmental – Air France-KLM has introduced environmental programs to reduce impact on climate change.
Legal – there are some emission issues that the carrier has to deal with EU authorities. Legal aspects could negatively impact on the carrier. (Longo 9)
Emirates Airlines
The Emirates Airlines was founded by Dubai ruler Sheikh Saeed bin Maktoum Al Maktoum, and is part of the Emirates Group. The company started its humble beginnings in1985 with just one leased aircraft.
Emirates Airlines has grown: it is now ranked No. 2 in terms of profit, second to Singapore Airlines. Profit has reached $637 million in 2005 at a time when the airline industry was losing up to $6 billion (Newsweek 2006 qtd. in Debbage and Alkaabi 157).
It grew into a fleet of 173 aircrafts and is a much awarded airlines company with a population of about 62,000 multi-ethnic and multi-cultured employees who speak about 100 languages. Its main hub is in Dubai International Airport and operates more than 2,500 flights a week to more than a hundred and twenty cities in the different countries of the world. (“Emirates: Airline Review – Emirates Airlines” par. 1)
Corporate citizenship and SOPs
The Emirates Group places great importance on corporate citizenship and practices corporate social responsibility by answering to the needs of the community in which the company thrives. Each member of the staff is given the responsibility to help in the success of the company objectives and to commit to improvement.
The organisation in turn acknowledges the positive work and dedication of the thousands of employees and so it provides a range of excellent benefits, such as profit sharing and other programs for individual career advancement. Aside from providing the needs of employees, the Emirates Group also rewards stakeholders.
With positive and effective work provided by managers and employees, the Emirates Airlines has reported maximum profits never recorded before by other airlines within the Middle East region. The Group has invested billions of dollars in the purchase of advanced aircraft. To date it has flown one of the most eco-efficient aircrafts around the world. (“The Emirates Group: Responsibility, Our Culture of Respect” par. 1-11)
Positive culture is seen within the workforce of the Emirates Airlines. This starts with training. Training is handled by in-house and outside experts who see to it that motivation is part of training, trainees are taught on ethics and work discipline, added with a sense of patriotism.
There are certain drawbacks in the training process, and one of these is the reliance on Western technology and methods which sometimes contradict with the Muslim culture. This results into a weakness on the part of the organization or the Muslim world because it affects organizational effectiveness. (Ali 194)
From this efficient workforce, recruited from the different countries of the world, quality service evolves. Flight attendants provide warm, friendly and quality service to customers in hundreds of flights around the world.
Positive effects on marketing (4 Ps)
Price is competitive and one of the lowest compared to other airlines in the Middle East. The airline has its main hub in Dubai International Airport, a very busy airport because of the growing business climate in the city.
PESTEL Analysis
Political
Countries in the Asia Pacific and Dubai have been making trade agreements to enhance trade and commerce and easy flow of goods and services including transit of products and people through the use of airlines. Agreements are also conducted between European countries, the United States and Dubai which opened up the United Arab Emirates to the world leading to the development of the airline industry. (“Articlesbase: Organisational Strategy-Emirates Airline 2010” par. 2)
Political stability creates a positive attitude on the employees. In the workplace, people become creative and work for the organisation’s objectives.
Economic
The United Arab Emirates is a growing economy. The country faced many problems in its efforts toward economic and political development, but the Emirates is continuously growing into a mature and independent country. In Dubai, it hosts thousands of businesses and private corporations ready to be a part of a thriving economy. The airline industry is a contributor to this thriving economy.
The airline industry depends much on the price of oil, so it has to cut costs to remain in business. Because of the fluctuating price on oil, the industry has to reduce unnecessary costs. Recently, the airline traffic in the different parts of the world has been reduced, but in the Middle East, airline traffic has improved, particularly in the Emirates region.
The main cause and trigger for economic upheaval is Dubai, which is growing at a pace no other country or city could match. With the rapid growth of Dubai economy, the airline industry goes along with it. People, businesses and organisations flock to this city; real estate and capital investments are soaring. The only fastest means of transportation is of course air travel. This is why the Emirates Airlines is on its way to big financial successes and more profits. (“Articlesbase: Organisational Strategy-Emirates Airline 2010” par. 3-4)
Social
Emirates Airlines has to deal with thousands of multi-ethnic employees of diverse cultures. The employees don’t receive high salaries but numerous benefits have been implemented recently by the company. Labour issues are a cause for concern for the company because of growing demand for higher wages. There is also the problem of labor unions which is enticing workers to go on strike. (“Articlesbase: Organisational Strategy-Emirates Airline 2010” par. 6)
Technological
Emirates Airlines has also used technology to pursue its aims and objectives. The company has a state-of-the-art website that answers to the stakeholders’ queries and complaints. Its fleets of aircraft use technology to provide quality service and to make the Emirates the No. 1 aircraft in the Middle East and throughout the world.
Environmental
Emirates Airlines has reasons to be proud of when it comes to environmental concerns and solutions. No less than the chairman, His Highness Sheikh Ahmed bin Saeed Al Maktoum, has led the Emirates Group’s programs for environmental sustainability. The Emirates aircraft fleets have been using technology to reduce greenhouse gas emissions. They implement other measures to reduce environmental impact like the 3Rs: recycle-reduce-reuse, to reduce the impact of waste materials. (“Emirates: The Environment” 2012 par. 1-4)
Legal
When it comes to legal aspects, the Emirates Group follows the rules and the legal requirements of the states where it conducts business. There are no legal hitches when it comes to the Emirates Group’s transactions with other organisations and governments. This is the reason why it has earned awards and recommendations from various organisations and governments.
Air India
The passage of the Air Corporation Act of 1953 by the Indian Parliament led to the creation of Air India, at first with the word ‘International’ in its corporate name. Later this word was dropped and now its official name is simply Air India. Supervision and control is vested on the Board of Directors.
Manpower management in the Indian airline industry is a big challenge: it is a complicated goal. There are continuous changes in the manpower structure so that management of flights are sometimes uncontrolled. There is no effective management of the staff, particularly in the day and night shifts, creating a problem in the rostering.
Many of those assigned in night shifts do not report for work, prompting those in day shifts to work overtime. This creates strenuous work by overworked employees. Manpower planning is not systematic when in fact it has to manage 18,000 employees. Air India managed to maintain this large workforce which has a record of high inefficiencies. (Pattanayak 114)
Air India fosters a punitive culture: it punishes employees who are caught committing acts contrary to the organization’s rules and policies. Employees are forced to work more than the lawful time of work. Workers become unproductive and uncreative and their behaviour at work is not normal. Culture defines productivity and behaviour of employees. There is also the presence of trade unions which entice people to go on strike and stoppage of work.
The operational and administrative functions of a firm should reflect the quality of its policies. The other important levels include strategic and normative levels which must also reflect quality policies as significant as the operational and administrative levels. (Beckford 15)
Negative effects on organizational culture
Air India is feeling the turbulent weather in its operations. Some of these forces have impacted on the day-to-day operations. The high cost of operation cannot be solved right away. Another one is the bonus scheme being implemented which is contrary to the interests of the majority of employees. High operational costs include rentals of buildings, salaries of employees, and the costs in providing hotel rooms to stranded passengers during flight delays, stiff competition, etc.
There is also the issue of low quality of on-board services which are very low compared to international standards. Customers are forced to transfer to other aircrafts because of these inefficiencies and delays of flights. Bureaucratic and political control also negatively impact on the operations. Sometimes, some of its aircraft have to withdraw from routes which are considered commercially viable. As a whole, organizational culture of the airline is sometimes in conflict with the manpower performance. (Banerjee 911)
PESTEL Analysis
Political – Air India is still under control of the government in which the political environment is still considered uncertain. Air travellers travelling with Air India do not feel secured and so it can cause them to look for alternatives. With stiff competition, Air India is losing favour from the side of customers and stakeholders.
There is also the reported corruption and bribery committed by officials within the government. The September 11 attack against the United States and the continuous threats of global terrorism have also impacted on air travel within India and other international flight.
Economic – The recession impacted not only on the airline industry but other industries and the rest of the economy. With this, the airline has to enforce cost-cutting measures and lay off thousands of employees.
Sociological – Air India is composed of a workforce that is multi-ethnic who come from the various sectors of society, many are varied income groups. Human resource management of this type has to be expertly done and enforced. The government has to professionalize human resource management by employing professional managers. But again the problem is funding. How can this be enforced when management is conducting cost-cutting measures in all areas of management?
Technological – Technology always benefits airline companies in many respects. The introduction of a company website makes company and customer interaction quite easy. Customers can have easy access on information about flights and the many available services of the airline. Functions within the organisation are also made easy and systematic through the application of information technology.
Environmental – This is one of those areas where Air India lags behind. There has been no environmental program implemented by the airline. Gas emission is an issue.
Legal – Air India has no legal hitches considering that it is controlled by the government. But if things are to be straightened out, there have been reports of bribery and nepotism, depriving the employees of productive output.
Garuda Airlines
In June 2007, Garuda Airlines suffered a crash on one of its aircrafts, the Boeing 737-400. Because of this tragic event, EU banned Garuda Airlines and all Indonesian airlines from flying into European skies. The cause of the accident was blamed on human error. But the blame by investigators did not end on human error alone.
It was the result of the negative organisational culture created in Garuda that resulted into a negative behaviour on the pilots and crewmembers. This was one reason why the EU also banned all the other airlines from Indonesia. Investigators of the crash had concluded that Indonesian commercial airlines had negative organisational cultures, and this should not be tolerated because they might cause accidents.
What is the root cause for these incidents? Let us examine Garuda’s history, on how it came into being.
Garuda features in Hindu mythology, part eagle and part human, and the name has been given to the national flag carrier of Indonesia. It started the Singapore-Kuala Lumpur route but soon it improved network after many challenges.
The different periods in the history of Indonesia’s airline industry played a role in the cultivation of organizational culture of Garuda Airlines. The first period, 1950-1967, paved the way for the establishment of the Garuda Indonesia Airways (GIA). There was little competition at that time.
But the second period was characterized by commercialization of airlines. Private airline companies mushroomed and were successful in the process. But during this time, cheap aircraft became abundant for domestic airlines; aircraft for international flight were reduced as a reaction to the September 11 attack against the United States. (Akyuwen, Abdulgani, and Nanere 16)
By the next period, 1993-1997, Garuda Indonesia experienced losses and slow performance characterized by inefficient service to passengers and customers. The company was unable to adjust to the changing business environment when the government deregulated the airline industry in 1978. Negative cash flows experienced by the company resulted into insufficient funds to finance operations. Product and service quality declined. Low on time performance (OTP) reflected a negative image for Garuda. (Akyuwen et al. 16)
Effects of change
Garuda management implemented a cost reduction program (CRP) with aims at recovery. But the impact of the financial crisis was evident on the performance of management and employees. Instead of cooperating with each other, top management created a mechanism that was ineffective (Hitt et al., qtd. in Akyuwen et al. 17).
The corporate culture created in Garuda reflected that of the bureaucratic environment, since Garuda was once owned by the government. Service was poor while inefficient actions were tolerated. A negative impact was felt when route networks and aircrafts were reduced. Prices were not competitive and cash flow was down. The company borrowed money from banks and financial institutions at the same time sold and rented aircraft engines. The problem continued.
By 1998, the problem became worse when liquidation had to be implemented and the 14,000 employees had to be reduced, many would be terminated. The impact was severe on domestic flights. The government intervened and program to improve the airline’s management started.
Some programs to improve efficiency were implemented, such as reducing costs at the same time making the price competitive. Moreover, employees’ behaviour and mindset had to be changed. Change was effected through Kotler’s change concept. The main thrust of the change program was to transform the employees’ bureaucratic behaviour to business behaviour through the introduction of the entrepreneurship principles. There was a turnaround, and a positive impact. (Akyuwen et al. 18)
More organizational challenges and changes occurred for Garuda. In 2003 and 2004, it suffered severe financial losses. Cash flows went down again and services became negative. In 2005, the government had to temporarily close operations and implement another restructuring.
The airline suffered more challenges when in 2007 one of Garuda’s aircraft, the Boeing 737-400, crashed. As a result, the EU banned Garuda, including all Indonesian airlines, from flying into European skies. Human error was found to be the cause of the accident.
Commentators believed that organizational culture played a key role into the negative repercussions that happened on Garuda aircrafts. Service was at its worse. Growth was negative. It was also found that standard operating procedures (SOPs) had been ignored by flight crew and employees of the airline.
Garuda has been listed as one of the ten most dangerous airlines in the world (“TravelViVi.com: Top 10 Most Dangerous Airlines” par. 1), although it was reputed by blogger Joseph Saul that Garuda is certified by the International Air Transport Association (IATA) as having safety standard program.
Negative effects on the 4Ps
Marketing is a managerial process wherein individuals and groups exchange products and values (Kotler, Brown, Adam, and Armstrong, qtd. in “WriteWork: Marketing Mix at Garuda Indonesia” par. 1).
How does Garuda Indonesia exchange its products and services to the public? Quite differently and negatively! Garuda has been experiencing negative growth because of the culture that managers and employees have been experiencing.
The price of airline seats is believed competitive but they can’t match with other leading airlines. It is believed that Garuda needs an overall overhaul considering that its growth has registered negative.
The airline needs promotion more than ever to recover its lost reputation or to deny what negative publicity has created. The people or the employees need to focus on selling quality service and products. They have to start all over again. Management has to provide training and development.
PESTEL Analysis
Political – Garuda is still owned by the government of Indonesia. Although this has some benefits, deregulation is still a good option for businesses to thrive and be successful in this age of globalization. The best solution is to fully deregulate the airline and let the private sector own and manage it.
Economic – the airline has encountered losses and the programs instituted have not been very effective. In 2010, it reported more losses as reported in its financial statement. (“OPPapers.com: Garuda Indonesia: Become Leading Airlines” par. 1)
Social – As mentioned in the discussion above, some moves and programs were instituted to reform the mindset of employees who are used to being a part of a government bureaucracy. But it seems this is not working.
Technological – Garuda uses technology to attain its goals. It has a good website where customer can obtain the latest information and where they can air complaints and questions.
Environmental – There has been no record of environmental programs from the company.
Legal – When it comes to legal issues, Garuda has no problem with it because it is still owned and managed by the government.
Conclusion: Advantages of positive culture and disadvantages of negative culture
Positive culture is attained through a well coordinated effort between management and the workforce. But this collaboration works under regulations, SOPs and organizational culture. Senior management, pilots, engineers, and crew members have to follow SOPs and work within the guidelines set by senior management. Organizational culture also shapes their behaviour and the way they deal with the airline’s clients or customers.
The organisation has to develop the right mindset for managers and employees because mindset is difficult to change. This is what happened to some of the case studies mentioned above.
Our examples of culture that developed negative behaviour on the part of employees, crew members and all the other stakeholders involved in the mentioned airlines, had a mindset that developed negative behaviour. They had a bureaucratic mindset because the airlines were owned by the government. Efforts to change their mindset proved futile. The workforce has to be changed and professionalised in order to start a new.
On the other hand, a positive culture is developed when the organisational culture develops a positive behaviour on management and employees. SOPs and organisational culture are tuned toward a better workforce, well equipped, well trained, and well behaved. This kind of workforce is productive, creative, and is destined to attain the goals and objectives set forth by the organisation.
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