[Institution’s Name]
Introduction
Management has been referred as a synergy of four things that particularly are planning, leading, organizing and controlling. Each of these elements has their own importance and recognition in a broad nutshell. The essence of management has been associated with everything as it relates to individuals as well; however it is also accounts for organizations as well (Ahlstrom & Bruton, 2009).
Without doubt, organization is basically referred to a place that has been formed and established for the sake of economic prosperity and economic based expansion and it is highly appreciated, if the management of a company would play a definite role in this regards. Proper management from the viewpoint of an organization is important that gives a sort of strength to the companies as far as generating net income is concerned (Cravens, 2011).
The essence of management and leadership is extremely vital for an organization as it relates to the long and short term financial belongings of an organization. Latest researches and studies have identified that the style of leadership is an important thing that deems essential for an organization as far complying with the standards is concerned and increasing the revenue is concerned.
The main perspective of this paper is to analyze the stance of leadership, along with ethical stance of leadership on three different companies. It is required to select three different companies for the same analysis and each of the company would have been analyzed on below mentioned four levels
- Cultural Context
- Ethics and Social Responsibility of the company
- Analysis of leadership
The names of the companies that have been chosen for the same are Air New Zealand, Qantas Airways and Virgin Australia. Each of the analysis required to adhere with the above mentioned four points in particular to analyze the thing accordingly.
Air New Zealand: Analysis
Air New Zealand is referred as the national airline with offering transportation services to both passengers and cargo within New Zealand and major destination across the globe. The company founded between in 1940, when the private airline named TEAL was incorporated in it. Air New Zealand is headquartered in Auckland, New Zealand, and are engaged in operating scheduled flights for passengers that stride upon 27 dealing domestically and 29 for international spots mainly comprised on different continents except Africa. Their vision is to try hard in each of their dealing areas through originating a working environment where working groups are committed to their end-users typically in the region of New Zealand, resulting in the return of competitive industries. The company is an active member of global star association affiliated in 1999. The operating fleet size of Air New Zealand is comprised on105 aircrafts particularly under the group of jet aircraft and Turbo-props. Moreover, Air New Zealand has generated revenue of NZ$4,483 million with profit margin of NZ$715m in the fiscal year 2012. However, the revenue made from ordinary service was stood at $2,388m, a 3.6% growth from prior year 2011. This flag carrier corporation also contains business units that are engaged in providing engineering and other ground handling services. During the period of financial crunch, the company was adversely affected by it as a result of restrain in the number of long-haul routes. At the time when Virgin has quit from domestic market, the Air New Zealand came in to fill up the gap through lifting competence in such markets where virgin Australia had strong existence.
Air New Zealand is known as the flag carrier of New Zealand, and it is known as the largest domestic airline of the country. Total Assets and Equity of the company comprises on the level of NZ$ 5,459 million on NZ$ 1,688 million in the year 2012 that is showing that the company is attracted heavily by the external investor (Air New Zealand Annual Report. 2012, pg.12-50).
The management of the company is very active and effective in terms of making and implementing strategies. Powerful management and their strategic power is the one, that known as an important key for the company in particular
Leadership is an integral behavior and it is equally beneficial for an organization in particular. Likewise other companies, the essence of leadership is also important for Air New Zealand as well (Cravens, 2011). The theory that is exactly focusing over the behavior of the leaders of the chosen company is McGregor’s Theory of X and Y. The leaders of Air New Zealand is focused specifically on the working of the people and they think that employees who are working in the company are loyal and dedicated, thus they not required any sort of coercive behavior from the management.
Cultural Context in Organization
Culture plays an important role in the context of an organization, and no organization can increase their financial and strategic belongings without managing the conflicts relating to culture within their premises (Cravens, 2011). Cultural difference or cultural context always lies under the ambit of diversity management and Air New Zealand is one of those companies of the company that has a perfect and remarkable strategy as far as eradicating its effects are concerned. The company has a transparent hiring and firing process with special consideration on giving job to minorities and women. Leaders of the company are active and they always try to enhance the level of communication among different employees of the company as, it is one of the integral measures to completely eradicate the identification of any sort of cultural difference or diversity.
Ethics, Social Responsibility and Stakeholders Goal
Ethics and Social Responsibility are some of the major things that have their importance lies in a broad nutshell. A firm has to be ethical and should be adhered with social responsibilities in favor of their consumers and in favor of their employees as well. Air New Zealand is one of those companies that are effectively complying with the standards of business in the country. The company is active in terms of granted taxation and other social based issues. The company is proving effective services, and not charging any sort of hidden charges with their consumers that are one of the most important sign of their perfect adherence with the social responsibility. The shareholder’s equity of the company increased by 15% in the year 2012, that is yet evidence that the company is also eager towards their external shareholders and they are providing effectiveness to them in terms of enhancing their financial belongings.
Analysis of Leadership
Qantas Analysis
Qantas is a well reputed Australian based airline and is committed to provide transportation services both nationally and internationally. The company came into existence way back to 1920 and initiated their operation on Queensland. Qantas is deemed to be the Australia’s largest with having a fleet size of 142 encompass with different aircrafts that are in service at the start of 2014. The Qantas is divided into two airlines consist of Qantas which is a full service carrier and the other one is Jetstar that is low service carrier. They both are operating nationally, internationally and providing regional services as well. Moreover, the portfolio also comprised with Qantas Frequent Flyer and Qantas Freight, producing a variety of revenue sources, and adds value for customers and stakeholders. Qantas is also recognized as the leading brand of covering long distance worldwide. The company has employed 33,000 workers with 93% of them are Australian nationalist. They have established excellent safety, operational reliability, quality engineering and maintenance, and customer service reputation. The numbers of passengers that are facilitated by Qantas were stood at 48.2 million in the year 2013, while the stock of aircrafts grew by 1.2%, which increased the volume to 312 in the same year. On the other hand, the company has reported annual turnover of A$15.9 billion with having a net profit margin of A$6 million in the year 2013. In the coming 10 years, Qantas Group has committed to invest funds worth about US $ 17 billion in fuel efficient advanced aircraft technologies like Airbus A380, Boeing 787 and other same pattern based aircrafts (Qantas Annual Report. 2012, pg.15-55)
Qantas Airline is the flag carrier of Australia. The assets and Shareholder’s equity provision of this company is also on a higher range as it covers an amount of A$ 20.2 billion and A$ 5.954 billion in the fiscal year (FY) 2013. Likewise Air New Zealand, the management of the company is also effective, but it more towards productivity oriented, rather than Employees oriented.
Leadership is an important process from the viewpoint of an organization. It is required to apply the same techniques and leadership theories on the analysis of Qantas as well (Cravens, 2011). In terms of management and leadership, there is no significant change has been envisaged in the process of Air New Zealand and Qantas, however Qantas is more towards having a productivity oriented behavior instead of an employee’s oriented behavior.
Theory of McGregor of X and Y could also been applied on the same and it is found that the Theory X is applied more seriously over the behavior of Qantas, as the leaders of the company think that the employees of the company are don’t like to work and they require coercive actions to controlled and threatened. Apart from this theory behavioral theory could also be applied on them, as the leaders are more towards the production rather than towards the employees. Leadership style that is associated with the leaders of Qantas is Autocratic, as the leaders of the company would like to take decisions on their own and does not require any sort of assistant from their employees or subordinates.
Cultural Context in Organization
Qantas looking forward to use their employees for the production purpose and the leaders of the company is aware with the fact that, without effective cultural context, the company cannot initiate a power strategy related to the company’s future, therefore there is no cultural difference or discrimination is found among the employees of the company (Northouse, 2012).
Ethics, Social Responsibility and Stakeholders Goal
The laws of social responsibilities and ethics are extremely powerful and stringent herein Australia and every company have to comply with it in order to sustain in the industry for a long span of time. Qantas is ethically a perfect and well organized company, that has a tremendous behavior towards the Social Responsibilities. Apart from that, the company is also fulfilling the rights of their stakeholders comprehensively.
Analysis of Leadership
As mentioned in the above heading, the leadership style that is using by the company is Autocratic, due to that all of the decision making power retains to the leaders of the company (Northouse, 2012). This particular aspect could be extremely effective at some stage, but it would be more painful than any other thing. However, if the company really wishes to operate in same productivity oriented behavior, then they should give extensive intrinsic and extrinsic rewards to their employees.
Virgin Australia Analysis
Virgin Australia is owned well reputed brand named Virgin groups. The group was established in 1970 and now it is considered as the respected brand name of 21st century. Virgin Australia that was prior termed as Virgin blue airline has started its journey in the year 2000 by entering into the Australian aviation market and sooner became the real competitor in the world of air transportation industry. Virgin Australia came up with a vision to transform the entire air travel in all overall segments in the market. The company is dedicated in providing a picture perfect experience in national and international markets, while maintaining an identical quality of service. Virgin Australia is taken as second leading airline in the Australia encompasses with fleet size of 94. Presently, the airline is covering 50 destinations across the globe. It is one of those airlines, who have made complete transformation right from LLC to comprehensive air carrier services. The company has posted annual earnings of A$3.990 billion for mid-year of June 2013 by having a split of A$98 million in the account of company’s net profit. The airline has now become in a position to serve around 29 cities with Australia. At initial stages, the company operated as a low-cost airline, and then it enriched its line of services to become a so-called (self-introduction) "World Lee" – that is mainly a business model that provides a competitive advantage to Virgin Australia compete effectively with Qantas in the contest of business travel section (Virgin Australia Annual Report. 2012, pg.22-60).
Virgin Australia that formally known as Virgin Blue Airlines is the second largest Airline of Australia in terms of revenue and size as well. The company has high amount of total assets and total equity as well, that is one of the best things from their own standpoints.
In terms of revenue and size, Virgin Australia is comparatively larger than that of Air New Zealand and Qantas as well and the management of the company is also extremely eager.
The Style as well as theory of leadership is totally different in the context of Virgin Australia as compared to two other Airways Giants in particular. The theory of leadership associated with this particular company is Situational theory, in that leaders become more focused on the behavior of the employees and it could be mold with the current scenario or situation of an organization. The style of leadership that is having by Virgin Australia is Democratic, in that the company listen the suggestion of each and every employee and then take their decision. This approach is the best one as compared to the above mentioned techniques.
Cultural Context in Organization
This particular provision is in the similarity index in all of these companies as there is no cultural problem is associated with each of the company that is again a perfect and positive sign (Northouse, 2012).
Ethics, Responsibilities of the Company
Ethically and in terms of Social Responsibility, Virgin Australia is more powerful than that of other two companies (Northouse, 2012). The company contributes heavily in different social based programs specifically designed for the people of special cases. The company has grown with a robust pace, just because of adhering with ethical standards.
Analysis of Leadership
The leadership style that is associating with the behavior of Virgin Australia is Democratic, that is one of the most effective styles of leadership in that the company may decided to have the recognition of their employees a bit and then do the one, that is best in the stake of the company.
Conclusion
Leadership has been described as a process of social influence, in that a person can enlist the aid and support of the others in terms of accomplishing a certain task is concerned (Northouse, 2012). Apart from this definition, there is yet another important definition of this term, in that it is found that leadership is just a behavior to influence the other people accordingly and effectively and it is quite important in the context of organizations. The main perspective of this paper is to analyze the stance of leadership, along with ethical stance of leadership on three different companies. There are three different companies have been selected for the assignment, and it is found that all of these companies are in similarity in some part, but the style of leadership relates to each of the company is different from the other, and in a broad nutshell, these leadership style are essential for them in particular. The most effective companies in all of them is Virgin Australia, that has a perfect leadership style as compared to two others.
References
Ahlstrom, D. and Bruton, G. 2009. International Management: Strategy and Culture in the Emerging World. New York: Cengage Learning
Air New Zealand Annual Report (2012), [Online], retrieved from http://www.airnewzealand.com/gateway Accessed on 2014-Feb-09th
Cravens, D. W. 2011, Strategic Management for the Pacific Region. Kindle ed. Philadelphia: Cengage Learning.
Northouse, P. G. (2012). Leadership: Theory and Practice Sixth Edition. New York: SAGE Publications, Inc.
Qantas Annual Report (2012), [Online], retrieved from http://www.qantas.com.au/travel/airlines/home/au/en Accessed on 2014-Feb-09th
Virgin Australia Annual Report (2012), [Online], retrieved from http://www.virginaustralia.com/au/en/?cmpid=sem_Brand_VABrandExact_SEM_PK__Brand+Virgin+Australia+(Exact)_virgin+australia&s_kwcid=AL!3764!3!32848410206!e!!g!!virgin%20australia&ef_id=uRVP2XJmOzkAAEyU:20140209065812:s Accessed on 2014-Feb-09th
