Project Outline A Contingency Theory of Organizational Change

Question: Discuss about theProject Outline for a Contingency Theory of Organizational Change. Answer: Introduction Organization Profile Etihad Airways is based in Abu Dhabi, United Arab Emirates. It is one of the leading airliners in the United Arab Emirates. It is a passenger airliner and travels to major international destinations. The brand also operates Etihad Holidays and Etihad Cargo, which has assisted the business entity to build a reputed name in the International market. Organization Structure Etihad Airways is governed through a board of directors, and operates according to the legislation and the guidelines as well as the article of association in the company (Riwo-Abudho et al. 2012). These two committees are the executive committee and the audit committee possessing own distinct rules and regulations. Change Drivers The decision process is wholly centralized to the management or the core leadership in the organization. According to Benn, et al. (2014), the management of the business organization takes the key business decisions and this has an effect on the entire operations of a business entity. It is the primary responsibility of the middle- ranked management of the business enterprise to carry out the operational policies of the business enterprise as per the rules and guidelines established by the company set at the outset. The middle ranked management of the company has also an additional responsibility in allocating the jobs to different teams. Cameron and Green (2015) mentioned that the essential change drivers in the organization are organizational needs and the market demand, government laws and regulations. Besides, this enhancing each business processes in the organization can be one of the reasons for implementing changes in Etihad Airways. Vakola et al. (2013) stated that the needs of the business organization are the most important criteria when implementing changes in the business entity. Thus, the internal factors that can lead to changes in the organization are the cost of operations and the annual revenue of the business organization. The external factors of the organization are the nature of the market competition as well as the rising prices of fuel in the market (Battilana and Casciaro 2012). Besides this, the market demand of the consumers is also an important factor that can be attributed to the changes in the policies of the business enterprise. Key Stakeholders The changes shall mostly affect the internal level in the business organization. The operational department of the organization would be mostly affected by the changes in the business organization. This would have also had a pertinent impact on the financing decisions made by the stakeholders. Battilana and Casciaro (2012) mentioned that the key stakeholders also include the investors of the business organization. There shall be mixed reactions from the stakeholders. Initially, there would be resistance to the changes in the business organization. This shall be doubts about the alterations that would be implemented in the business organization. It is expected that this would have a considerable impact on the operations of a business entity. As per the Week 2 Desert News Case, this would have a serious impact on all the pertinent aspects of the business organization. Thus, the operational, financial and the marketing aspects of the organization would be influenced by the changes implemented in the business organization. According to Vakola et al. (2013), the changes adopted in the business organization shall have a potential impact on key business decisions taken by the business enterprise. It is important that the brand assess the existing operational policies of the business enterprise and reacts accordingly. In addition, the presence of the substitute brands in the market has also been instrumental to the presence of the change in the market (Battilana and Casciaro 2012). Therefore, it can be said that the change drivers have been essential to the change implemented in the business organization. The change would have a mixed reaction to the changes implemented in the business organization. (Cameron and Green 2015). The primary unanswered questions relates to the implications of the changes implemented in the business organization. This would directly relate to the business sustainability of Etihad Airways in the coming years. Besides this, there would be resistance from within the business organization. Change Initiative The primary aim of the change initiative is enhancing the business operational policies of the business enterprise. This would result in decreasing the operational costs of Etihad Airways . As per Nisam and Sushi (2011), the change initiative has to consider the following factor in establishing the changes in the organization - the needs of the enterprise. Therefore, Etihad Airways needs to consider the financial as well as the non-financial resource of the business enterprise in re-innovating the changes in the business enterprise. The success and the failure of these services can be measured through the year ended business performance. The change implemented in the business organization shall reduce the cost of operations of the company, thereby, strengthening the financial resources of the firm (Battilana and Casciaro 2012). The performance assessment can be done quarterly or half-yearly to identify the discrepancies in the production process of the firm. This would assist the business entity to execute business performances at a consistent rate. The following are the ethical considerations that need to be taken care of, in executing changes in the organization. Transparency- Any change implemented in the organization must conform to the ethical rules and guideline established for the organization at the outset. It is necessary that transparent policies and strategies are established to enable the business enterprise retain the existing goodwill and reputation. Employees - It is necessary that the organization does not exploit the rights of the employees. As such, it becomes necessary that the employees be not presented with an unfair deal. Financial strategies The financial strategies presented in the business organization. There should not be any financial irregularities or undue advantage taken by the organization, in the pursuit of implementing the changes in the organization. Environmental sustainability - Environmental protection and sustainability should be the primary concern of the business organization. Thus, it is necessary that the brand adhere to different environmental laws and regulations in implementing the operational strategies of the business enterprise. References Battilana, J. and Casciaro, T., 2012. Change agents, networks, and institutions: A contingency theory of organizational change. Academy of Management Journal, 55(2), pp.381-398. Benn, S., Dunphy, D. and Griffiths, A., 2014. Organizational change for corporate sustainability. Routledge. Cameron, E. and Green, M., 2015. Making sense of change management: a complete guide to the models, tools and techniques of organizational change. Kogan Page Publishers. Nasim, S. Sushil (2011) Revisiting organizational change: exploring the paradox of managing continuity and change,Journal of Change Management, 11 (2), pp.185-206. Riwo-Abudho, M., Njanja, L. and Ochieng, I. (2012) The role of strategic leadership during change, Kenya Journal of Business Management, 4 (1), pp.48-61. Vakola, M., Armenakis, A. and Oreg, S., 2013. Reactions to organizational change from an individual differences perspective: A review of empirical research. The Psychology of Organizational Change: Viewing Change from the Employee's Perspective, pp.95-122.