Introduction
This paper will examine the changes that have been occurring in the airline industry against models of change. The changes in the industry have been occurring rapidly primarily due to technological and economic changes (Belobaba, Odoni and Barnhat, 2009). The airlines have been responding accordingly so as to remain competitive and profitable in an age when competition is stiff and the market has undergone changes in preferences exacted by the changes in technology and economics. The paper will examine these changes against models of change management.
One of the theories to be looked at will be Lewin’s three phase theory of change. This theory reveals three steps of change beginning with unfreezing of an organization from its current state, to making the changes and then refreezing in its new state (Johnson and Scholes, 2006). Schamner’s theory will also be examined. This theory examines change as a process of opening up to the new possibilities in solving the problems. Change occurs in a person or organization as a result of the openness. A third theory, the congruency theory by Nadler and Tushman examines change as a critical analysis of the problematic situation that an organization finds itself in.
The last theory, Lippitts phases of change theory, change is presented as a seven step process that initiates the change and sees it to completion. The paper will also look at the structure that British Airways can take for its change management. In the last part of the paper, recommendations are made based on the case study. The paper ends with a conclusion of the investigation made during the case study.
Theories
Lewin’s theory of change
One of the theories that can explain the changes that have been happening in the airline industry is Lewin’s theory. The airlines have been in their comfort zone for a long time especially the legacy carriers. According to Lewin, during changes, organizations start with the acknowledgement that change is inevitable or impending (Kritsonis, 2004-05). Due to the threat of new carriers which offered less prices, a contention of the airlines, the legacy carriers have had to admit that they need to make changes (Meyer and Oster, 1987).
One of the most competitive ways of doing that was reduction of fares (Belobaba, Odoni and Barnhat, 2009). As a consequence the legacy carriers have brought down the prices. According to Lewin, this is the first step where areas that need change are identified and the organization prepares for the changes to be effected. The second stage which involves the process of effecting the changes has been characterized by the reduction in fares by competing airlines. According to Meyer and Oster (1987), the reduced fares have only been one of the changes with other expense reducing measures being used as well. There have been other changes like cutting down the employees and in-flight services (Meyer and Oster, 1987).
Schamner’s theory of change
Schamner’s theory of change also recognizes a point from which the person undergoing change or the organization starts to evaluate the change as necessary. According to Schamner’s a person changes not by being closed but by accepting the new along with the old. Changes require an open heart, mind and will (Scharmer, 2009). Beliefs have to be suspended so that new patterns and behaviors can be envisioned and effected. This is especially necessary for the leaders on whom the organization depends to guide change. To create room for new patterns, the old has to be let go.
Systems that have worked in the past have to be reevaluated against current needs that a person or organization has in order to determine their relevance (Johnson and Scholes, 2006). As a result, the airlines have had to accept the new ways of doing things which the market demands and which are cost effective for their businesses (Tidd and Bessant, 2009). However, the legacy airlines are still best poised for the high end demand. This is because of the reputation they have built over the years (Macario and Van de Voorde, 2010). British Airways for example has cultivated its reputation for many years (Gaskell, 1999). Despite the new entrants to the market, it would still be one of the choices for the high end market.
According to Scharmer (2009), this model also involves looking into the future in order to make changes that incorporate what is to come. This is the kind of observation that the airline industry is making. As a result, the new carriers are leaving behind old systems that can not be envisioned in the future. One of this is the use of electronic ticketing (Macario and Van de Voorde, 2010). Paper tickets are not a fading fad and as a result, embracing the use of technology is the future of airlines.
Nadler and Tushman congruency model
The third model the congruency model proposed by Nadler and Tushman examines change as a process through which information is analyzed and changes that need to happen are strategized (Cameron and Green, 2004). According to Cameron et al (2004), this model goes beyond looking for prescriptions for situations to the problems thereby generating ideas about what actions are necessary for different contexts for the growth of the organization. For this reason, the model is a way in which organizations come to understand information and how it affects them as an entire organization (Cameron and Green, 2004). As a result, alignment is made a necessary part of the process of change.
According to the theory, more congruency therefore yields better performance as the two are directly related (Cameron and Green, 2004). According to British Airways, the challenges that the airline has been facing need to be addressed outside or beyond a remedial context. This is because the airline needs to find long lasting results as it faces its challenges and seeks answers to staying competitive. The answers do not lie in reduced fares and expense efficiency alone (Tidd and Bessant, 2009). There is need to cultivate a competitive edge and to capitalize on the brand (Macario and Van de Voorde, 2010). There is also need to prepare for situations like the economic meltdown in the future.
Lippitts phases of change theory
This theory is considered an extension and expansion of Lewin’s theory. In this theory change is approached as a process that should follow certain steps in order top effectively manage change for the benefit of the organization (Kritsonis, 2004-05). According to Kritsonis (2004-05), the theory proposes seven steps to be followed. The first step is problem diagnosis. Brititsh Airways as well as other airlines have been examining the problems that they face, for example fuel problems and looking for solutions (British Airways, 2010).
The next step is an assessment of capacity and motivation to make the change (Kritsonis, 2004-05). British Airways (2010), states that its change has been driven by the inescapable changes making a big motivation for change. Next, the change agent is assessed to determine if it has the necessary motivation and resources to see the changes through. The airlines have been using their accounts and statistical trends to determine resources that can be spared for the necessary changes (Macario and Van de Voorde, 2010). Next, progressive changes need to be made. The airlines have been shifting towards use of technology to fulfill this demand for progressive changes that fit the changing society.
The next step is clarification of role. The British Airways has been ensuring that each department plays its role in bringing about changes. Part of that can for example be seen in the new marketing strategies it has been using to reinvent itself as a modern carrier (British Airways, 2010). The next step is maintenance of change (Kritsonis, 2004-05). This step can be seen as the trend where many airlines have for example reduced their fares and keep them low in order to increase and maintain their market share in the industry. The last step is the withdrawal of the change agent (Kritsonis, 2004-05). This will be part of airlines as they solidify change and the changing processes are relaxed.
Structure for managing changes
Unfreezing
For British Airways, the first step in the structure of change should be unfreezing (Kritsonis, 2004-05). According to Lewin, this is a necessary part of preparation if change is to be effective (Cameron and Green, 2004). British Airways needs to unfreeze from the state it is in given the identification of problems it is facing as a legacy carrier. This will yield a situation where it can reduce resistance and increase compliance of groups. In the first part of unfreezing, the airline should create means in which the company moves away from the old practices paving the way for new ones. Whatever forces are driving the change should be increased. This will create an opportunity to address the context in which changes become necessary and the equilibrium is sufficiently disturbed (Tidd and Bessant, 2009). The next step would be to create ways in which resistance can be reduced in order to facilitate movement from the old to the new direction. The last step would be a combination of introducing change and reducing resistance.
Movement
The second part of the Lewin’s change process would be movement (Kritsonis, 2004-05). This would allow for changes to become effective. One of the first parts of facilitating the movement is convincing the participants and especially the employees the necessity of change based upon the failures of the status quo (Kritsonis, 2004-05).
According to Kritsonis (2004-05), by next allowing the participants to view the situation from a new perspective, they are more geared towards abandoning the status quo. The use of technology, for example, as one of the areas in which the airline is looking to increase should become part of the system supported by the management (Macario and Van de Voorde, 2010). This support will make the movement much readily acceptable to the participants.
Refreezing
The third step is the refreezing where the changes are solidified into the organizational structure and become part of the new equilibrium (Kritsonis, 2004-05). In this step, British Airways will integrate the changes it has made into its traditions and values. British Airways will generate a framework within which the changes can be made part of its practices.
Recommendations
The first part of managing change is the thoroughly understanding the problem. This is the first part of the structure that British Airways needs to create in order to leave its comfort zone and unfreeze. British Airways needs to adequately understand the problems it is facing in order to comprehend that change is necessary and to come up with what changes need to happen (Macario and Van de Voorde, 2010). The airline has been undergoing changes but it is still open to changes. It is only through an understanding of the problems that efficient solutions can be reached (Tidd and Bessant, 2009). Part of understanding the problem for British Airways includes investigation of its own unique problems and understanding of what it has to offer in the market.
Stakeholders and management should have meetings in which the problems and potential changes can be discussed (Tidd and Bessant, 2009). The second part of managing change will be the use of proper resources and processes to effect the changes. Without streamlining the process for change, success is compromised. British Airways needs to invest in good leadership and strategic management (Robbins and Judge, 2003). They do not need to play catch up with their competitors. Having been in business for a long time, they should aim to be trendsetters. Whether it is changing from legacy carriers to low cost, they should ensure that the changes they make work for them and are in line with the organization’s goals, mission and strategic planning (Robbins and Judge, 2003). Failure to pay attention to their own situation may lead to losses as they follow patterns and systems that do not favour them.
The last recommendation is that British Airways should invest in making changes as much as it can afford to. The changes that have come into the industry do not indicate any going back. Even with better economic times, the changes that have been threatening to take over the industry will most likely prevail (Macario and Van de Voorde, 2010). As a result, British Airways should position itself as a modern airline in tune with the demands of the market while maintaining its revenues and aiming for profitability.
Conclusion
The case study of British Airways indicates the important role that change management plays in handling changes in an industry (Robbins and Judge, 2003). While change is often inevitable, it is the management of the change that has the potential to keep an organization profitable and relevant to make its services seem obsolete (Gaskell, 1999). Management of change should be a primary concern of every organization and handled in the best way possible in order to make the least negative impact on the organization while accruing the most positive changes possible (Macario and Van de Voorde, 2010).
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