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Central South University of Forestry and Technology
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Question1：With reference to the case study, summaries the relationship between goals, objectives and policy and advice the management of Scotia Airways of the contribution each will make to effective managerial performance.
Answer1：
Goal: Organizational goal is to complete the mission and purpose of the carrier organization. It is a future state that an organization strive to achieve, and it is the basis and motivation to carry out the organization's activities. Every social organization has its own intended purpose or result, it represents an organization's direction and future. For the organization, the purpose is the common goal; to the members, the common goal is to organize the stage needs to reach the destination. The organisations are usually determine the direction that it will take over the long term and are not always very specific, but some goals may be unintelligible and hard to understand.
There are 4 types of organization: Operational goals, Product goals, Consumer goals, and Secondary goals.
Operational goals that means increase efficiency, promote the work efficiency vigorously. Like the Scotia Airways, they have the culture of trust has been emphasized and developed by both the management and workers, and this has served to enhance the effectiveness, efficiency and overall performance of the business. When they have the awareness, team spirit, have the incentive measures, the working efficiency will increase.
Product goals signify better service to consumer and higher products qualify, to ensure sustained and stable quality system. The Scotia Airways do well in this side, it offers several value added services, such as, valets to assist the passengers in boarding the plane, gourmet meals and a range of in-flight services and entertainment. And Scotia Airways is the first airline to offer full business class services, but at prices that are equivalent to the economy class of its competitors. A key driver of the success of Scotia Airways is the management focus upon the level and quality of service output.
Consumer goals means satisfied the different demand from the different consumers. Scotia Airways is aimed at it, their operate scheduled flights mainly targeting business and leisure travelers and aims to provide exceptional value for money, unparalleled comfort and
convenience to its passengers. It illustrated that everyone in the world is not the same, so an organization especially a company should adapt diverse needs.
Secondary goals by organisations which are not the most important things that they would like to achieve but are nevertheless important. It is mainly about the social responsibility, making a profit or improving award. The Scotia Airways has been reinforced by positive management approaches and wide ranging reward policies that were agreed and supported by Trade Union representatives. And as far as possible to promote social harmony and integration, to create a better atmosphere.
Object: Business objectives are more clear and specific than goals and identity the specific path to be taken in order to achieve goals. In this step, how can we do next, how quickly can we do it and how do we know when we have been successful are the important questions.
The objectives should be SMART, include 5 aspects: Specific, Measurable, Attainable, Realistic and be Time-bound. These are the core of objectives’ requirements.
To promote the market share increase, the airline has an increasing presence at Scotland’s main airports in Glasgow, Edinburgh and Aberdeen. And currently covers eight destinations across Europe, including Brussels, Paris, Frankfurt, Madrid, Rome, Lisbon, Amsterdam and Copenhagen as well as domestic flights to Manchester, Birmingham, Bristol and four London airports. It is also expanding to major business centers in Eastern Europe and the Middle and Far East. This several plans for improving the market share, expand the business scope is very effective.
Pay more attention to suitable consumer groups is significant, too. The airline to operate flights mainly is the special value of providing funds for business and leisure travelers, incomparable comfort and convenience of passengers. To provide different services for different customer groups demand, is important to increase the performance and able to establish good relationship with customers.
Policy: The policy is a requirement for the organization’s operating and transaction. It provides a guideline to channel a manager's thinking in a specific direction, it can also provide the path to complete goals and objectives. It provides a framework of rules or guidance within
which management and staff can make decisions. Policies contain some different, for example, Inward investment policy, Welfare policy and Reward or Punishment policy.
Inward investment policy: The equipments are freshing, all staff receives adequate training, the establishments of the new division and gain more market share are both in it. It has seen that the company expansion over resent year in many aspects and departments. Then they found new distributions in Eastern Europe and the Middle and Far East during this year. Reward or punishment policy: For the completion of the expansion target, organizations should set standards, regulations and purposes to evaluate employees' performance, and then take reactions respectively. The Scotia Airways has been reinforced by positive management approaches and wide ranging reward policies that were agreed and supported by Trade Union representatives.
Relationship: The goal is the totality, it can including many objects, goals and objectives provide different kinds of requirements of organization. After make goals and objectives, the organization must have the policies to guides behavior by defining how something should be done. Suitable policies can help the organization to achieve goals and objectives, but inappropriate polices will result in bad effects and cannot complete the goals and objectives. Finally, healthy relationships among goals, objectives and policies are the basis of effective performance. The three affect each other and are both in hand.
Q2: Explain the main principles of Open Systems Theory with reference to Scotia Airways. A2: The environments that are both internal and external would influenced the organization. The inter-related parts of a system can interact with the external environment. Changes in the external environment will affect the internal environment changes, the internal factors will also affect the overall changes, resulting in a chain effect.
There are 4 aspects in this system. Input contains Staff, Managers, Clients orders, Bank loan and Equipment. Process contains Admin support, Allocation of projects, Communicate with clients, Promotion and Production. Output consists of High quality designs, Skilled staff, Satisfied clients and Service or product. Environment consists of Economy, Social trends, Policies, Legislation, Technology and Culture.
When the EU and UK government relax their control over the licensing of airline provision, the input in the airway will increase, and then the output will also increase with the input. That is the external environment policy affect the change of the internal environment. And the government imposes taxes on high emissions of enterprise, then the cost will rise and the profit will reduce. So the company will decrease production, the airways maybe reduce a few airplane and maybe open up just one or two air lines.
Q3: Identify the main differences between the formal and informal organization within Scotia Airways.
A3: The Scotia Airways both formal and informal organization characteristic. The aspects at formal organization characteristic are, it has clear goals, objectives, policies and missions; defined structure, clear division and classification; and the organization will be controlled. For example, the airways currently employ executives and managers in marketing, finance, HR and flight operations with operational and administrative staff within each department. Rosa Dallevic is in overall charge, assisted by her long-term colleague, Azim Ishtiaq. She has also employed the same personal assistant, Katrina Wright. That is a holonomic structure in the company.
And the aspect at in formal organization characteristic is, it has ambiguous relationships in the airways. For example, the company is very much regarded as a family-style business and has established a range of suppliers and clients that are seen as the extended family. So it has relaxed and harmonious atmosphere, not very serious and tense.
Q4: Describe four primary stakeholders of Scotia Airways and explain their interests in, and influence on the organisation.
A4: Government: Whether the taxation violate related laws, whether the company compliance to related laws and whether solve the problem of local employment, that are the government concern about, is their interests. The influence in this case is the EU and UK government relax their control over the licensing of airline provision. Then the airways business will improve and the profit will increase, so the government could charge a higher tax.
Creditors: The creditors are concern about the credit score, liquidity, repayment ability and new contracts. When to borrow the money and when to return is the most important key to creditors. Only the airways credit rating better, can it borrow much money when they need, so the turnover of the fund more convenient.
Investors: Have interest earning income from investment; have profitability, market share and business achievement are the significant matter to the investors. The influence are have big expansion plans and hire a team of administration. The investors in Scotia Airways have set an ambitious programme for expansion over the next 5 years, introducing flights to major European tourist destinations and to establish new branch in Eastern Europe and the Middle and Far East. Besides, They set about appointing a management team whose experience and expertise was firmly grounded in the budget aviation market.
Employees: They concern about the rates of pay, job security, respect, truthful communication and work condition. The attitude and enthusiastic in working will influence the quantity and efficiency. The Scotia Airways have to develop a wide range of rewards and punishment system, let the employees enthusiasm greatly improve.
Q5: Identify an effective control strategy that the management of Scotia Airways could successfully implement, and justify its suitability.
A5: I think the Bureaucratic control is the most effective control strategy to the Scotia Airways.
Bureaucratic control means it can dominate the process, is the use of the determined rules, policies, hierarchy of authority, reward systems and other formal mechanisms to influence employee behavior and assess performance. The advantages are it could increase efficiency of the company, and can be controlled with market or price mechanisms, it is so stable. The disadvantage is the Poor flexibility. Bureaucratic control through the Organization Structure,
perform their respective
duties, everything in good order and well arranged
Bibliography:
1. Stephen P. Robbins, (2008), The Principle of Management, 3edt,
Beijing, China Renmin University Press Co. LTD
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Beijing, China Renmin University Press Co. LTD
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Beijing, Chinese International Book Trading Corporation. LTD
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China Machinery press. LTD