Organizational Behavior in Multinational/Global Aviation Essay

IntroductionOver the past few years the s ready industriousness has continued to typesetters case challenges on how well(p) to manage the sedulousness on both operational and oversight level in relation to interests of different stakeholders in the labor. Customers submit increasingly demanded for reform work while sh atomic number 18holders demand for more profits. With globalization of aviation effort, the market has be deal more competitive and demands the pains to be bluely competitive to survive on the global market.This comeback of global competition encourage complicates the achieving of guests, shareholders and early(a) stakeholders take by the application. Thus, the intentness demand to change its organization behavior and structure to catch up with these new challenges. Studies show that fabrication performance is highly abnormal by its behavior. Dessler (2001) stresses this point when he points unwrap that, organization behavior and structure de termines the success of an industry. These new challenges has made the industry to rethink its business behavior, objective and aims coming up with strategies that has made the industry more successful than before. (Dessler, 2001)GlobalizationGlobalization has had varied invites on policy making in the aviation industry, by influencing the making of key decisions in the industry. Globalization in this case has influenced economic policy making in aviation industry. One of the effects or influence to economic policy making in aviation industry is that, it has made it more complex. According to give-up the ghost managers in aviation industry, globalization has made this policy making quite challenging due to the real(prenominal) m either factors that are globally affecting it and the various needfully of the different stakeholders that has to be fulfilled.Globalization has affected aviation industry in its decision making. This is because all the decisions made in this industry harbor to influence along with international standards. This is so because globalization comes along with standards which all the industries have to adhere to. Decisions that are made in aviation industry in addition have to be according to international trade policies. airmanship industry faces big challenge in line with global competition and balancing of various stakeholders call for. (Dessler, 2001)StakeholdersM whatever propagation different stakeholders requirements do conflict, and at eras the requirements of each(prenominal) stem are non well understood. balance the requirement for the different groups in the industry becomes a challenge to the policy bemusers in the industry, many questions have to be asked before formulating a structure that tush satisfy each separate group. Some of the questions asked when formulating policies areHow to balance the needs and know when trade-off can be appliedHow to analyze the needs to come up with a win-win resolution for all the concerned groupsHow do to conclude if the win-win- solution for each group is real feasibleEventually economic and some other needs has to be included in the policy making process in relation to satisfying the various groups with a stake in the industry.Stakeholders and requirementsThe aviation industry like any other industry has nine basic or generic wine stakeholder groups with different class of people in each group. These groups are (Cox, 2000)The governmentBoard of directorsOwners/ shareholdersManagement decision makerCustomer employeesSuppliersCommunityWe shall examine only four groups which are owners, guests, employees, local environmental groups which are very beta in the industry and how their individual needs are balanced.ShareholdersShareholders in an industry or a company are the owners of the industry the upper-case letter invested in the industry comes from the shareholders who expect a reasonable reelect over the invested capital. Freiberg & Freiberg ( 1998) clearly states that, the objective of shareholders in an industry is primary(prenominal)ly long term fiscal step-up or short term financial gain in terms of dividends. The needs of shareholders may as well include greater kindly enhancement, protecting the environment among other things. Shareholders basically put their financial capital in the business to have an opportunity of making money. (Freiberg & Freiberg, 1998)The executive management group in aviation industry is the one which is answerable to the shareholders in terms of results of the business, in a situation where the executive management to do produce positive results, the shareholders may replace the executive management or the shareholders may string their money and invest it elsewhere. Any industry which is not well managed at the end it will have to collapse. The shareholders in the aviation industry basically expect the following from the industryLong term financial returns ( cast up in relation to sha reholders amount)Short term financial returns (dividends)Observance of social norms (environment and ethics) Freiberg, K., & Freiberg, J. (1998CustomersIn any crabby industry the most important group of stakeholders are the customers. Normally, customers demand high quality of assistants and a competitive price. (Legge, 2004) In order for the industry to realize profits it has to provide quality services at competitive determine so that it threads more customers to increase profitability of the industry. Supposing the level of profits falls and losses are made, the shareholders will complain. Thus, the challenge is to set prices and quality that can attract the customers and at the same cartridge clip make profits that can sustain the industry. (Legge, 2004)Customer segment in this industry do not differ so much, customer will have different expectations from the industry and the executive managers will face different challenges in formulating ways to satisfy the varied requir ements of the customer segment. One cross issue that has raised a lot of concern in the industry is the security issue. Ever since the September 11 terrorist fervour in America, the concern of security in aviation industry has increased and all stakeholders and in particular the customers have demanded for high security and guard duty in the industry. (Legge, 2004)It is important that customers have to be listened to so that their needs are understood, in order to make improvements where possible, and where not possible customers be informed of the impossibility. Generally the industry is pursing customer requirements that are in line with the interests of other important stakeholders. Basically, customers demands in the aviation include profit of the services the industry is providing especially in terms of security and safetyBetter competitive pricingA commitment of the industry to address their requirements (Legge, 2004)EmployeesThis groups consists of all levels of employees who are down the executive management level, at times it may too include the upper middle level management, the middle level management, the supervisors and individual employees. The biggest concern of all employees in any industry is having good working condition, secure workplace and financial security. How invariably, other requirements also exists that employees require. (Cox, 2000) Basically employees require the followingCompetitive salaries and benefitsJob securityOpportunities for career teaching and growthSafetyCommunityThe community though is a less formal stakeholder group in the industry, it is still important and it has a big influence on the industry. Yukl (2002) explains that, the community can either limit to support a business or not, depending on whether they concur with the way the business or industry is carrying out its activities. (Yukl, 2002)Yukl (2002) further explains that, the main interests of a community in any industry are safety of the environment, employment for the local community and cooperation from the industries in other community issues. Community members may become painful sensation to the industry or be a support base for the industry depending on the relationships that exists between the industry and the community. The community has three main requirements which areEnvironmentalEconomicSafety (Yukl, 2002)Balancing stakeholders needsThe biggest issue thus is how to balance the various needs of the above mentioned stakeholders. It seems that there are three major issues or challenges that aviation industry faces in balancing the different requirement of the diverse stakeholders, this are underlined belowIdentifying the ad hoc main stakeholders in the industry in relation to different business situationsUnderstanding the different needs and the main priorities that should be given to this needsBalancing the requirements which conflicts with each other (making trade-offs) (Cox, 2000)In order to work the above challeng es the industry has formulated a matrix formula, this has highly helped the industry in solving the challenges and in balancing requirements of each group of stakeholders. Generally using the matrix implies identifying the most important needs of each group of stakeholders. These are generally similar for each kind of stakeholders, for examples all customers will need expose services and competitive prices, and all shareholders, whether ordinary of preferential will need high returns over their capital. To procure this, the industry has undertaken different approaches to satisfy each group of stakeholders. (Cox, 2000)Balancing Shareholders needsThe main aim of shareholders is to birth good returns on their capital they have invested. To this end the industry has to attract more customers to progress to high profits so as to ensure high returns on the capital invested by the shareholders. This can be attained through prudent management and good policies and marketing to achieve h igh profits at the same time ensure that other stakeholders needs are taken care of.The industry has responded well by using new technologies in improving its services. The industry has utilized the use of online marketing and also incorporated the use of new technologies in production and operations activities which has resulted in significant increase in r even upue and thus attained the shareholders goals. The industry generally has responded to globalization by redefining its services and expanding to new markets to increase its market share and hence profitability of the industry. (Larson, 1997)Balancing the needs of customers Industry has continued to provide better services and at the most cost effective prices which have increased the number of passengers over the years. another(prenominal) aspect that the industry has undertaken in relation to customer is improving security in airports, in the aircrafts and even coming up with better designed aircrafts and air fields which put safety/security of the customer as a first priority. (Phegan, 2000)Customer satisfaction is vital for the success of Aviation industry. Phegan (2000) points out that, with ever increasing competition on the global market those industries that commission on customer orientation and customer satisfaction have chances of maintaining and even improving their customer base. Customers remain the most important group which ensures choice of any industry. Aviation industry has clearly balanced the goals of the customer (in relation to customer loyalty, satisfaction, profitability and sales) compared to other industry stakeholder needs.A significant consideration the industry has undertaken is an overall altitude of organizational commitment to customer objectives, without taking this commitment customer satisfaction will have a very limited impact. Aviation industry has made strategic market plans, which includes, how the company should divide the market and which segments of the mark et the industry should focus on basing on the Aviation industry capabilities and or industry competencies. Aviation industry has to have a clear consideration of how the customer satisfaction will be netly balance with other needs of other stakeholders. (Phegan, 2000)Balancing employees needsToday, employees are no more human resource to be worn but employees have become human capital, thus an asset to an organization that need to be saved and developed. Globalization has opened up new opportunities and employees have become more difficult to retain in an industry that is not competitive enough. To this end aviation industry has to undertake motivation as the main aspect of getting well qualified professional who can achieve the goals of the organization and even batter them. (Robbins, 2004Motivational practicesTo be able to be successful in the current global and domestic markets, motivation, for any organizations workforce is a solution in realizing competitive advantage. Aviat ion industry therefore, has the ultimate function of retaining good staff members who are the main drivers of the industry. It takes a considerable amount of time to train an employee in the industry to attain better standards for any specific duty. To lose such an employee at any stage of the production process is suicidal for the industry. Specific emphasis is therefore taken into account to make sure that such employees are kept for as long as they are required. (Robbins, 2004)Better conditions for service and financial rewards are examples of measures applied to motivate employees within the industry. In addition the industry is motivating the employees in terms of annual, leave, insurance or shorter working periods. Aviation industry has set good employee wages to attract human capital in the industry.Top managers in aviation industry have provided information that is serviceable in the making of decisions for the Aviation industry with regard to balancing the amount of wages to be gainful to employees and the actual financial situations for the industry in relation to other stakeholders. It must be noted that, employees play the most important part in realizing the targets of the industry. The aviation industry currently is among industry with well give employees, this has ensured that the employees are satisfied and thus they can drive the industry to new heights and help it achieve the other stakeholders needs. (Robbins, 2004)Balancing community needsThe issue of community social state has become an important issue in the recent years. Today, many customers want to be associated with companies that have good community social responsibility policies, and many industries are realizing that for them to succeed they have to operate within community social responsibility framework. Many industries all over the world are adopting and practicing community social responsibility. At the same time the local communities have become more aware of their environ ment and demand industries to protect it.Aviation industry has balanced this need of the community by becoming more environmental certified by charge on ways of reducing environmental degradation issues such as global warming and pollution. It is possible for the industry to achieve this at the same time satisfy other stakeholders. The aviation industry also gives the local community a say in issues concerning environment management and employment to ensure nonaggressive coexistence that can enable the industry to grow without friction with the community. (Handy, 1985)ConclusionDifferent stakeholders have different needs in any industry, customer, shareholders, employees and the community remains important to the success of an industry. The aviation industry has a challenge in balancing these needs. The industry has undertaken changes in its organization behavior and its marketing policies to balance these needs. Some of the changes that the industry has undertaken are prudent ma nagement to satisfy the needs of the shareholders, high quality services and secure industry to respond to the needs of the customers, good remunerations and better working conditions to satisfy the employees and being more environmental conscious and taking more social responsibility to respond to the needs of the community. However, in this global era the industry will still be faced with challenge on how best to formulate policy decisions which can satisfy all needs of the various stakeholders in the industry.ReferenceBartol, K, et al. 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