Innovation and Management Decision Making of Etihad Airways - Samples

Question: Discuss about the Innovation and Management Decision Making of Etihad Airways. Answer: Introduction: The report gives an overview of innovation and management decision making of Etihad Airways (etihad.com/en-in/ 2018). Innovation refers to the application of improved solutions for meeting newer requirements. Management decision making refers to the process of implementing choices for identification of a decision, gathering of information and assessment of an alternative solution. Etihad airlines have been running in losses and hence there has been a change of CEO. The report aims at discussing the role of leadership of new CEO of Etihad Airways and how it helps it in pursuing a better future. Body: Actions of the New CEO The actions that the new CEO of Etihad Airways must undertake for ensuring its success of airlines must be unique since he is stands at top and from whom the other members usually takes cues(Abu Dhabi, 2018). The new CEO must therefore undertake a meaningful transformation. People usually move to those extraordinary lengths for reinforcing their commitment. Thus, the impact of the transformation should depend on the willingness of the CEO whether he wants to make it personal or ensure an open engagement with others. The new CEO can create newer ways for assessing the performance of the Etihaad Airways objectively. For instance, he should look at the weaker spots that require necessary action. He might also look at additional means that gives an external perspective to his leadership approach. Although Etihad Airways came into the picture as a competitor of Emirates, looking at the present condition the new CEO should not follow herd and consider the context of the company and thereby leverage scientific means for accessing their starting points. For instance, Tony Douglas must consider the economic profit performance of Etihad Airways compared to the peers that would serve as a context for assessing the odds that the newer potential moves needs to pay off. Moreover, it is also necessary for the CEO to plan out a set of comprehensive moves without trying to implement everything at a single go. This will help in improving the performance of the company (Karaevli and Zajac 2013). CEO Setting as an Example To set as an example the new CEO Tony Douglas must be able to realign personal leadership (Drucker 2017). This implies that for leading a turnaround for a company like Etihad Airways that is already undergoing losses the leader must have clear understanding of the priorities and values along with the necessary motivation for undertaking such herculean task. He must also focus on the best means for the organization by creation of a unified team that will help in eliminating the hurdles. According to Tony Douglas, Etihad Airways represents a global aviation force that must constantly evolve and adapt not only independently but also with the help of its industry partners (Garca-Snchez, Rodrguez-Domnguez and Gallego-lvarez 2013). Therefore the Airways must get into an alliance where becomes beneficial for both and not like alliance with Alitalia that made Etihad Airways lose an amount of around US$1.5 years in a matter of five years. It is usually difficult in changing the perceptions of investors when a company is already undergoing losses due to its wrong decisions. In such cases, the CEO must ensure an open, straightforward and honest conversation putting forward the reasons for the losses thereby mentioning the fact that Etihad Airways is going to be the best choice in future for the other airways provided they get into an alliance. The CEO must also set an example by marking a difference by becoming one of the best citizens on recognizing the responsibilities. New Vision of the Future Etihad Airways believes in following a holistic approach towards it corporate responsibility along with the efforts to become one of best airline of the world. Thus, under the new CEO, Tony Douglas, the company should develop a newer vision that must focus on adding value not only to the people, the communities and the planet. Thus, the company must undertake cohesive program for implementing initiatives that helps in covering the aspects of operations and business (de Boer 2018). The initiatives should be undertaken within the together framework followed by Etihad. The company should believe in growing together for supporting the 2030 vision of Abu Dhabi. Etihad Airways must also develop a vision of minimizing the environmental impact. Tony Douglas must also ensure that the airline company works together for the well being and development of its diverse employees. There should also be initiatives that would allow the airline company to make contributions to humanitarian relief and c harities. New CEO Inspiring Others towards a Common Purpose The new CEO plays for Etihad Airways must play an active role in the group that he leads. This will help in creating a bond that will help in holding the team together (Goleman 2017). However, it must be remembered that the manager must create a culture is not only vibrant, courageous, hard to beat and courageous that helps in inspiring the team towards a common purpose. The culture should be such that every individual of the team should be able to stand together and put forward an open, clear and candid conversation regarding agreement and disagreement. The whole team must also know the goals and the intentions and values of the organization. This will help the team in putting aside all the perceived limitations and doubts, unleash their creativity and imaginations and thereby to work towards the purpose as a cohesive group. They then also possess the willingness of taking risks and thereby show their accomplishment. Thus, identification of a common purpose not only inspires the tea m but also helps them in operating more effectively (Tideman, Arts and Zandee 2013). However, to get to the commitment of the common factor the team must know the reasons well. This will help in streamlining the data for ensuring the accelerated development of its employees. This will help in uniting the group for working towards something that is really inspiring. Promoting an Environment of Creativity and Risk An environment for promoting creativity can take place by promoting collaboration amongst the employees so that employees from the different departments are able to work together in developing creative solutions (Elerud?Tryde and Hooge 2014). It should also be made sure that the barriers between the upper management and the employees are eliminated and their decisions and feedback considered in any bigger changes related to the company so that they are able to realize their importance in the company. Even if their ideas are not used, it will help in promoting collaboration. Promotion of creativity is also ensured by allocating resources such as money and time for the purpose of experimentation with newer ideas (Razavi and Attarnezhad 2013). Ensuing job security along with ensuring proper rewards for the employees with promotions and financial benefits also contributes to creativity. On the other hand, promotion of risk takes place through the development of an atmosphere where the employees can constantly explore and possess the habit of undertaking newer endeavours (Neves and Eisenberger 2014). Employees should also possess the ability of freely sharing their opinions in a constructive manner even if they are different from the people in charge. There should also be instances for acceptance of constructive failure that will act as opportunities and stepping stones for successful ideas. For developing a risk taking culture it is also necessity for sharing success along with its mistakes. Building a Cohesive and Spirited Team However, for building a cohesive and spirited team it is very necessary for establishing a mission for the team. This helps in determining the goals and the means of accomplishing them (Kouzes 2014). Diversity is the key to a successful team since it has different people with varying skills, backgrounds and experiences. Ensuring exercises for team building will also ensure how the team members work towards accomplishing a goal. It is also important to determine the individual strength of individual team members and assign them tasks specified to their strengths. A cohesive team and spirited team ensured with effective communication. Necessary feedback is also important for the team (Sohmen 2013). The feedback should be projected towards the entire team and should mention the methods that brought success and failure. The feedback should be based on a give and take policy and hence employees should be also being asked about their opinion. This will help in throwing a light on the flaws existing in the process. There should also be a celebration of success when the team is able to accomplish mission. A note of appreciation is what is required. Thus, ensuring a spirited and cohesive team is process that is never ending. Every project brings along with them certain challenges so it is necessary for making sure that the team is working effectively and accomplishing the necessary results. Sharing Power Yet Maintaining Accountability There are certain essential ways that helps to share power yet help in maintaining accountability. There should be a focus on creation of a shared purpose. The team should therefore be engage actively in answering questions whenever required (Katzenbach and Smith 2015). There should also be an alignment of the team members around shared goals and team purpose. Team members should also be given a clarity regarding the achievement of the goals. The operating principles of the team should also be defined together. Being specific and open about the expected results also makes the team members accountable. The team should be involved actively in deriving the expected results and stimulated the team members for expressing expectations towards the contribution of one another as well as support one another. Necessary attention must be paid to the behaviour of the team when things do not go right. The team should be made to feel that their success matters and priority should be given on makin g a stronger team. Unnecessary pressure must be reduced and the team members must be made to feel that mistakes can happen provided one learns from it (Ren and Zhang 2015). The teams energy should be focused in how each team member helps one another and what needs to be done for setting things straight. Building Sense of Well Being The sense of well being can be build by connecting with the surrounding people and improving their social well being. This is necessary because most of the employees spend longer hours with the co-workers than they do with their family (Shuck and Reio Jr 2014). Hence there should be designated chat room where the employees can freely express personal and work related issues. The employees should be provided a clear picture that will not only motivate them in striving towards the goals but also see the possibilities of their personal growth. The management should be specific and transparent about showing the future growth in the company. To ensure well being of the team members it is also necessary to focus on the emotions of employees. Stress related to work is a major factor in determining the mental well being. Therefore, it is necessary to encourage the employees for taking breaks. Proper staffing of the organization is also necessary for relieving pressure and ensuring that leade rs and employees possess the same thoughts regarding the goals and the hours of work. The well being of the employees can be ensured by offering future opportunities for education. Through this the employees are given a change of performing their highest quality and contributing to betterment. Well being of the employees is acknowledged through the recognition of hard work (Reb, Narayanan and Chaturvedi 2014). The manner in which leaders acknowledges accomplishments might influence not only the employee but also the company well being. Recommendations: The recommendations for a sustained future success of an enterprise include an authentic purpose. A strong purpose will not only drive profitability but also growth. The company should therefore have consistent sense of focus and also try to develop an emotional bond both internally and externally. The company must also undertake pragmatic innovation. It is also recommended to build a powerful brand. This helps in creating a scalable business and also helps in building an emotional connection with the customers. Partnership and collaboration also ensures a sustained future success of an enterprise. However, there this should be wisely chosen otherwise the business might run into losses. Customer retention is also recommended for ensuring business success. It has been found that acquiring newer customers can be around five times costlier for an organization than retaining older customers. An increase of two percent customer retention ensures an impact similar to decreasing the company s cost by around 10 percent. The successful retention of the customers of a company starts at the initial contact of it business and continues throughout the lifetime. Business ecosystem refers to the economic community of individuals and organizations that encourages interaction in countless manners. Community or ecosystems also plays a crucial role in sustained future growth of an enterprise since they help in providing a structure that supports and surrounds business. For a business to have a sustained future growth it is also recommended to adopt an adaptive and flexible leadership. In this context, it can be said that for continuous growth business owners, managers and entrepreneurs must serve as the leader as per the business needs for each stage of its growth. As the needs of the company changes at each stage so its leaders also needs to evolve through self awareness, introspection and keener strategy sense. Conclusion: The report ends with recommendations on how a company is able to achieve a sustained future growth. Etihad Airways can revive back to its growth and profitability by focusing on the recommendations provided. The actions undertaken by the CEO also seems quite effective and can act as boost for making it one of the fastest growing airlines of United Arad Emirates (UAE). References: Abu Dhabi 2018.Tony Douglas appointed Chief Executive Officer of Etihad Aviation Group. 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