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Companys background
Delta Airlines Inc. is one of the oldest operating airlines in America. The corporations history indicates that it was established in the year 1924 in Macon, Georgia (Jones, 2013). Currently, the company is one of the fastest growing global airlines. Recent data indicate that the airline is a prolific profit earner (Jones, 2013). It employs over 80,000 workers worldwide and has a turnover of about $277.6 billion. The company has many classy and luxury aircrafts. Since its inception, Delta Airlines has been gaining international acceptance. The companys operation and management plans have attracted millions of clients making it the top largest carrier of passengers with approximately 348 destinations worldwide (Jones, 2013). The article below focuses on Delta Airlines readiness for change.
Delta Air Lines has won several excellence awards. Its workforce is diverse. As such, its employees come from different countries across the six continents. The success of the company is attributed to the hiring of varied and experienced workers. The company has put in place appropriate sourcing policies that attract a diverse variety of high-performing candidates. The approach made the company a competitive employer internationally. Besides, the company has greatly motivated its employees through better remunerations.
Current HR practice, policy, process, or procedure that you believe should be changed
Following the current economic situations in the aftermath of 2008-2009 recessions and increase threat from terrorism, the airline industry acknowledges that undue and poorly controlled risk could result in financial damages. In this respect, the company should come up with a custom-made risk management system. The program should comprise of risk documentation, risk evaluation, risk monitoring, and risk control. Comprehensive risk management initiatives will enable the airline company to take risks knowledgeably, decrease risks where suitable, and endeavor to plan.
Reasons for change
Delta Airlines should adopt the proposed amendments if it wants to remain competitive in the industry. An increase in the threat posed by terrorism is the major reason the company should adopt the proposed changes. The 9/11 attacks on the United States civil aviation industry demonstrated the extent to which terrorism can cause damage to the economy of a country and mass murder of innocent individuals. The terrorists proved that airliners could be turned into powerful missiles. It is approximated that the terrorists used $500,000 in preparation for the attack (Jones, 2013). The incident caused a damage of trillions of dollars. Based on this fact, the company should adopt an appropriate risk management program to prevent and thwart such threats.
Secondly, the company should implement the proposed changes to meet the terms established by the regulatory bodies. As such, many airlines do not possess appropriate tools to have an inclusive and feasible maintenance and quality plan. Delta Airlines should acknowledge that quality management of aviation is vital in the industry. In this regard, the airline should put in place measures to enhance its risk management, its internal control, and its compliance with the national and international regulatory bodies.
Thirdly, Delta Airlines should adopt the program to prevent undue and poorly controlled risk. A risk management system is justified because it increases the likelihoods of attaining projects objectives. Through it, a plausible foundation for any project can be accomplished indicating if it is feasible. If the project is possible, it should be executed. Otherwise, it should be aborted. Risk analysis can lower costs and chaos, fine-tune plans to reduce risk, and enhance project communication and control.
Diagnostic tools
Before Delta Airlines initiates the above changes, it must evaluate its readiness for change. Regardless of the magnitude of the proposed transformation, it is imperative that all stakeholders evaluate if a part or the whole system is ready. Disembarking on an organizational change without considering readiness increases the chances of wasting prospects and assets. In this regard, the company will adopt two diagnostic tools. They are the 7-S Model and PESTLE.
The 7-S Model comprises of seven elements. They are strategy, structure, systems, shared values, style, staff, and skills. By evaluating the relationship between these aspects, organizations can identify and realign discrepancies in these aspects before the change is initiated. The underlying principle of this model is that all the seven aspects are linked with each other. For an effective structural change, each of the seven aspects has to be realigned and reinforced with the other six elements. By adopting this method, Delta Airlines can analyze the implications of the chosen alterations, identify the associated mistakes, and determine how the changes can be executed.
The second diagnostic tool is PESTLE. PESTLE is a tool used in market evaluation and assessment of external factors that have an impact on the profitability of an organization. Its objective is to identify the threats and weaknesses, which aids in the SWOT analysis. Its acronym stands for political, economic, social, technological, environmental, and legal factors. The above factors are crucial in the determination of the companys success.
Why I believe the diagnostic tools selected are the best choice for diagnosing change in the organization
The 7-S Model is best suited for the business because it is founded on the theory that for a company to operate efficiently all the seven features must be associated and conjointly reinforcing (Volberda, 2012). Concerning this, the model is very useful in determining the requirements to be realigned to improve operation and uphold alignment during and after the change implementation.
PESTLE Model will enable Delta Airlines to analyze their operating environment (Siegel, 2015). Through this, the firm will be able to monitor political, economic, social, technological, environmental, and legal factors in the environment. By predicting the variations in macro-environmental factors, the company will be able to determine when and where to initiate organizational changes, and develop policies and structures strategically to support the changes.
The organizations readiness for change
As indicated above, PESTLE analysis will predict the variations in macro-environmental factors. Currently, the company enjoys some positive macro-environmental factors, which include proper US government policies, favorable legal policies, low-interest rates, and minimal inflation levels. The US policies favor the growth of the company. For instance, the availability of incentives and reduced taxation ensures that the company faces low operation cost.
The rights of ownership and other legal framework ensure that companys patents are protected. The presence of a stable government motivates and attracts both local and international investors. The economic factors in the United States favor the growth and profitability of the company positively (Volberda, 2012). Most of the US citizens have buying power because of the existence of well-paying jobs. Thus, most of the families have decent salaries and hence can afford purchasing the services offered by Delta Airlines. As such, the company currently enjoys a huge market share in the US population. High population in the US has provided the company with a significant market share and consequently increased profits.
Delta Airlines is facing increased competition, increased labor charges, unstable fuel prices, and increased legislations. The companys top executives are informed about these changes. They accept that these factors present a challenge to the companys future viability. For instance, the company recently merged with United Continental (Dess & Lumpkin, 2014). Through the union, the firm hopes to reduce the cost of operation and take advantage of emerging markets in Asia.
Interpretation
Based on the above PESTEL analysis, it is apparent that Delta Airlines is prepared for transformations. For example, the merger with United Continental indicates that the company is ready and has already initiated the much-needed changes to safeguard its financial viability in the future (Siegel, 2015). In this respect, the company will not hesitate to adopt the changes proposed above. The effective merger between the company and United Continental indicates that the company has high change agility. If a custom-made risk management system is adopted, little resistance will be experienced during its implementation process.
Equally, the Company has gone an extra mile in promoting the employees skills and expertise. The above is achieved through training seminars and allowing workers to further their education. Based on this fact, it is apparent that if changes are implemented, the employees will adapt with ease. Another factor that will ease the adoption of the amendments is the favorable working environment offered by the company.
References
Dess, G., & Lumpkin, G. (2014). Strategic management: Creating competitive advantages (7thed.). Boston: McGraw-Hill/Irwin.
Jones, G. (2013). Delta Air Lines. Charleston, S.C.: Arcadia Pub.
Siegel, D. (2015). Special Issue of Strategic Organization. Strategic Organization Journal, 13(2), 163-165.
Volberda, H. (2012). Strategic Flexibility Creating Dynamic Competitive Advantages. Oxford Handbooks Online, 14(3), 23-34.
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