Organizational management in the 21st century means more than just having tactical and strategic skills in handling matters within an organization. People have become quite knowledgeable on almost everything in the world, especially in management matters with many training institutions opening up with such offers. In fact, even people who have no interest or chance of getting into leadership positions in business and other organizations know much about organization management as compared to their leaders. Therefore, it takes more than the knowledge to achieve effective management in business in both managing people and the organization. Managers, CEO’s, and other leaders in business must possess certain skills that qualify them to become effective managers. People’s skills as well as innovative abilities are two main factors that enable managers in the current world to manage organizations and people. In this connection, this paper will discuss the management of tiger airline by focusing on the current situation of the organization and the possible solutions to various issues affecting the firm (Tan 4).
By the time the company was shifting its leadership, many issues needed attention within the firm. Therefore, the CEO was met with many expectations, which would determine his leadership abilities. In normal cases, new leadership is usually given a chance to adapt to the organizational culture but in the case of tiger, the company needed more help that the CEO did in adapting to the firms principles. The first challenge that the CEO had to deal with is dissatisfied customers. It is a known cliché that customers are the bosses in business, but in transport industry, it is more real than just a cliché. If people refuse to use tiger airways then the company is guaranteed to make losses. Another challenge is pressure and high expectations from stakeholders. Due to the issues that had befallen the company in both management and financial areas, the CEO is expected to deliver quite fast to keep shareholders and stakeholders in the business. For instance, the company at the time was making a lot of loses, therefore, to break even; the firm had to triple its earnings which is not an easy thing in the current economy. Lastly, the CEO had to deal with unsatisfied employees who were loyal to his predecessor considering that the new CEO was more of an outsider (Today 5).
To beat these challenges, the CEO must possess certain skills other than the normal management techniques learned in business schools. First, the CEO had to win the workers confidence to help navigate his plan of resurrecting the company. Every leader has his or her own ways of doing things and the success of this is enhanced by the ability of the leader to coerce the rest of the organization to join his or her camp. Mentoring and coaching skills are essential in creating loyal followers. The skills make employees feel that the leader appreciates their contributions to the organization hence success. Other skills that can guarantee a leader success in the above-discussed situation are insight, curiosity, engagement, and determination. Insight and curiosity will enable the leader discover areas that need change for the organization to meet the set goals. Additionally, determination and engagement ensures that the set objectives are achieved against all odds for the sake of the organizational success. For tiger airways to overcome its challenges, the new CEO must meet challenges head on to win the confidence of stakeholders.
Compensation packages vary among nations and it is the mandate of an organization to honor the laws of the land in which they operate. This means that people get different compensations for similar activities. In a normal case, there is nothing wrong with paying people different wages as long as it is within the agreement. However, the tactic becomes morally questionable and ethically incorrect when organizations use it for their own selfish gain. Most companies move their businesses to developing or underdeveloped countries not because they are seeking to expand but because they are looking for cheap labor. Many nations including the United States do not permit such business deals thus making it not just an ethical issue but a legal matter as well.
On the other hand, an organization can come up with things that are considered worth by different groups of people in different nations. Including different items in the compensation package can help take care of the imbalances. Besides, the cost of living differ with nations, therefore, a pay that is too much for a person in a certain country might be quite low in a different nation. Therefore, the idea is more of equity rather that equality because the main idea is to keep employees happy and satisfied through reasonable compensation.
Across culture issues affect every business that operates globally or in more than one country. Due to globalization, issues of across culture have become so common in businesses because people are free to move to any part of the world and so are businesses. Different things have different meanings in different parts of the world. Therefore, coming up within a common organizational culture is rather difficult for businesses in different parts of the world. Tiger on its part must appreciate the cultural diversity of its internal and external customers to deal with across culture issues (Tan 6). In fact, the company can make use of the power of diversity in organization development. The leadership of the firm should instill trust among different people in the organization. Trust inspires responsibility among employees as well as respect for different cultures. This will ensure that employees understand the differences among each other and respect those differences for the good of the firm. Additionally, the management must treat all cultures represented in the organization equally. This handles issues arising from cultural assimilation within an organization. Lastly, the management can come up with an organization culture that does not support any particular culture in the world. In this way, people will not have a chance to bring their cultural issues at work because there is already a different culture to be upheld in the workplace.
The development of tiger airways receives many hindrances from the organizations association with Singapore airline. Singapore airline (SIA) focuses on the greater good and it is easy for the firm to overlook things that tiger airways considers necessary for its development. First, this association slows down the process of decision-making in tiger airways because executives in SIA must approve decisions before they are put into action (Tan 7). This slows down development of tiger and allows negative impacts that would otherwise been avoided had people in tiger had the power to make their own decisions without consulting higher offices. Second, coercing employees to focus on SIA strategies reduces their effectiveness in business operations. Employees do not have the chance to exploit their potential in tiger airways because of the overshadowing effect of SIA; therefore, this de-motivates the staff hence slow development in tiger. Additionally, SIA strategies hinders tiger to improvise certain tactics that are necessary for the growth of the company especially those dealing with finances.
Dealing with losses for tiger requires effective management in business operation and most importantly stakeholder management (Tan 3). Most people argue that the customer service of the company is lacking and that reduces the number of people willing to fly with tiger airways. Therefore, the first step in overcoming the financial issues in the company is by improving its customer care services. Customers have the power to determine the profitability of an organization in many ways. Therefore, the company can employ the use of customer feedback services where customers are given a chance to evaluate the company’s services. In most cases, companies use this technique but those feedbacks are never read; therefore, tiger must rise above that habit and find a way to respond to customer’s criticism in a more effective way. Secondly, the company can come up with a better baggage handling team. This is one of the areas that the company is failing terribly. When and if customers feel that their luggage is safe, they will definitely fly with tiger thus improving its earnings.
The company can as well make use of corporate governance. The strategy helps an organization give employees the right room they deserve to operate effectively and exploit their potentials while managing how decisions and other business operations are carried out. It is one thing to give employees a chance to operate without limitations and another to have the control of the situation. Corporate governance helps managers and supervisors oversee business operations without making employees feel as if they are being overshadowed (Today 5). Rebranding and refocusing is another strategy that the company can employ to deal with current losses. This will enable the company cut off unnecessary expenses by reducing unprofitable business ventures in which the company is involved. Additionally, rebranding and refocusing will give the company a chance to explore new markets that can lead to high levels of profitability.
In conclusion, managing people and organizations require a lot of input on the manager’s part because people have become quite knowledgeable in the current world. Stakeholders today expect so much from organizations with which they are associated. Managers get many scrutinizing messages on a daily basis form this team thus making managers to operate outside the norm to deliver. Additionally, because of technology, it has become hard to keep employees within an organization because of the many offers from different companies. As such, managers must come up with better people management skills to help keep the best people on board to improve on the company’s profitability and for the sake of overcoming competition. Tiger airways is in its transition period, therefore, the firm must make use of current people and organization management skills to achieve the expected success.
Tan, Amelia. “Bosses keeping digital eye on employees.” The straights time 16 July. 2014: 3-8. Print.
Today. “Battered tiger airways replace CEO with SIA executive.” Today 7 may. 2014: 5-7. Print.