Blog 3: Change Management

Change management has been defines as the process of ceaselessly renewing the direction, structure and capabilities of an organisation to oblige the needs of external and internal customers (Moran and Brightman, 2001). It is also refers to the enactment of an idea, procedure and behavior that is new to the company (Pierce & Delbecq, 1977).

According to Meaney and Pung (2008) there are only one-third of management change that considered successful. Apparently, implementing this method in an organisation is not easy. The Low success rates have influence the employee to resist the change (Ford et al, 2008). Palmer (2004) thinks that resistance drives unsuccessful change touchstone, and determination is required.

The impact of Brexit is one of the largest potential economic impacts on the UK economies, in both the short and long term as has been argued by research publishers. However, the consequences on these effects remains unclear as they depend on the conditional form of Brexit, and knowledge of the post-Brexit UK economic environment. Therefore, this blog will emphasis more about the impact of Brexit that generating change in the UK airline sector industry and conviction of solution in this regard.

Brexit impact on EasyJet

EasyJet Airline Company Limited is a no-frills airline based in London. It is the best low cost budget airline which operates mainly within the European aviation markets; and it will have tremendous effect on the business operation relating to Brexit. EasyJet is one of the largest airlines corporation headquartered in UK which experienced an instantaneous drop in its share price by 20% due to the Brexit that is happening right now (World Finance.com, 2018).

Airline industries were not prepared for Brexit, as once it is happening, airlines holding operating licenses issued by the UK will be no longer have an automatic access to the single EU aviation market. Therefore, their rights to operate within EU need to be provided with alternatives arrangements (Bird & Bird, 2018). Moreover, EasyJet have to recalculate their fares and routes, taking into account the cost of visas. This will effect the revenue of EasyJets as the company is running in the low budget airlines and they must increase the prices due to this circumstances.

Solution for Airline Industries

The solutions for EasyJet company is by adopting the Lewin’s 3-Step Model. The Lewin’s (1951 cited by Yukl 2013:89) model consists of 3 steps; unfreezing, changing and refreezing. Problems respecting Brexit in the operation of EastJet can be solved by using the unfreezing model. In the case of traffic rights, EasyJet have to emphasis the UK government and the European Commission to engage the UK remaining part of the single EU aviation market. The company also need to take a few steps to reconstruct its operations to maintain an EU operating license and ultimately access to the single EU aviation market. The company must also adequate the employees of the necessity to change in management hence minimizing the reluctance to change (Rice and Cooper, 2010).

Kotter (1996) developed a model that can be used at the strategic level of an organisation to change its management and therefore transform the organisation. Kotter (2007) also argues that implementing change will make the company unstabilised. In the case of EasyJet, it is not beneficial to implement this austere eight step model as the company needs to take a quick action regarding the Brexit to minimize the losses of the company, hence it will be worked by using the model discussed above.

Action to overcome the problem

Collins (1998) states that worker who resists to change tend to be lack with the knowledge to deal with the change, and can also said to be weak and fearful of change, whereas, those who support change are remarked as a person who have the ‘right-stuff for career success. Therefore, Cameron and Green (2013) “Cycle of Change” model can be implemented to establish an evaluation of the change management.

Learning Outcomes

Airlines industries will be very effected by the issues of UK leaving the EU and the overall EasyJet company will be reduced, hence the strategies that is mention above is required to be undertaken. To overcome the issues, Lewin’s model is suitable for this situation followed by the Cameron and Green cycle of change which will benefit the whole EasyJet company. Thus leaders and managers are required to be aggressive to manage the change in today’s changing world.

References

Bird & Bird. (2018). How will Brexit affect the airline industry from a regulatory perspective?. [online] Available at: https://www.twobirds.com/en/news/articles/2016/uk/how-will-brexit-affect-the-airline-industry-from-a-regulatory-perspective [Accessed 29 Mar. 2019].

Cameron, E., Green, M. (2013) Making Sense of Change Management: A Complete Guide to the Models, Tools and Techniques of Organisational Change. 3^rd Edn. London: Kogan Page.

Collins, D. (1998) Organizational Change: Sociological Perspectives, London: Routledge.

Kotter, J. P. (1996) Leading Change (Boston, MA: Harvard Business School Press).

Meaney, M. and Pung, C. (2008), “McKinsey global results: creating organizational transformations”, The McKinsey Quarterly, August, pp. 1-7.

Moran, J. W. and Brightman, B. K. (2001) ‘Leading organizational change’, Career Development International,6(2), pp. 111–118.

Palmer, B. (2004) Making change work: Practice tools for overcoming human resistance to change. ASQ Quality Press: Milwaukee, WI.

Rice, R. and Cooper, S. (2010). Organizations and unusual routines. Cambridge: Cambridge University Press.

Worldfinance.com. (2018). The industries hit hardest by Brexit. [online] Available at: https://www.worldfinance.com/home/the-industries-hit-hardest-by-brexit [Accessed 28 Mar. 2019].

Yukl, G., (2013) Leadership in Organisations. Harlow: Pearson Education.