American Airlines Group Assignment | Custom Essay Services
Attached is my group assignment I am responsible for the Action, Plans, Strategies, and Techniques section. If you could please read what my classmates have written so my part can flow. For the (Action, Plans, Strategies, and Techniques) section I need 2 pages and please reference. I also need a 1 page on lessons learned (one of my classmates has already done her portion so you can look at what she wrote as an example) Also I need a few paragraphs about the business trends and corporate culture. Thank you!!
American Airlines: Challenges and Strategies in the COVID-19 Pandemic
HURD741 Organization Development
Karen Coles
Rachel Solomon
Tymica Waters
Akilah Williams
Isaiah Williams
TABLE OF CONTENTS
Business and Industry Trends 7
Five Stages of Organization Development 8
Anticipate the Need for Change 8
Develop the Practitioner-Client Relationship 8
Action, Plans, Strategies, and Techniques 10
Self-Renewal, Monitor, and Stabilize 10
References 14
American Airlines
Background
AMR, the parent company of American Airlines was founded in 1930. Based in Fort Worth, Texas, “American Airlines Group was formed in 2013 as a merger between American Airlines and US Airways Group (US News and World Report, n.d). Among the various airlines in the world, American Airlines Group is one of the largest” (US News and World Report, n.d.). More than 900,000 jobs worldwide have been established, to include positions at the Airport, as Flight Attendants, Pilots, Reservationist, Technical Operations and Maintenance and within Corporate. American Airlines Group has supported nonprofit organizations and given back to the community with enhancing stability, health and care, supporting United States military members, volunteering and supporting communities.
“American Airlines Group along with their regional partner American Eagle provides an average of nearly 6,700 flights daily to 350 destinations in 50 countries” (American Airlines, n.d.). The oneworld® alliance, with one of its founding members being American Airlines Group offers close to “14, 250 flights daily to 1,000 destinations in 150 countries” (American Airlines, n.d.). “In 2016, American Airlines Group Inc. was featured in Fortune magazine’s list of best business turnarounds and its stock (NASDAQ: AAL) joined the S&P 500 index” (American Airlines, n.d.).
“The oneworld® alliance is a group of the world’s leading airlines; dedicated to producing superior service and convenience to frequent international travelers” (American Airlines, n.d.). “American Eagle and American Airlines Group operate 3,400 daily flights to 240 destinations in the U.S., Canada, the Caribbean, and Mexico” (American Airlines, n.d.).
Mission Statement
“American Airlines is a founding member of the oneworld®alliance, which brings together some of the best and biggest names in the airline business, enabling them to offer their customers more services and benefits than any airline can provide on its own. Together, its members and members-elect serve more than 900 destinations with more than 10,000 daily flights to 149 countries and territories” (Comparably, n.d.).
S.W.O.T. Analysis
| Strengths | Weakness |
| ● Loyalty Flyer Program
● Strong Tie-ups and Alliances ● Operational Network ● Reputation for Onboard Entertainment ● Majority Market Share in the USA |
● Competitors
● Stock ● Loss of Revenue/COVID-19 ● Bankruptcy ● Debt ● 9/11 |
| Opportunities | Threats |
| ● Decrease Cost of Transportation
● Lower Inflation Rate ● Government Green ● New Taxation Policy ● Opening of New Markets ● Market Development ● Core Competencies ● New Technology ● Glowing Global Tourism ● Growth in US Airline Industry ● Growth in Air Freight |
● Coronavirus
● Climate Change ● Security Issues ● Strong Competitors ● Technology |
Corporate Culture
While it makes sense for an airline to promote diversity, American Airlines Group goes above and beyond to make diversity and inclusion part of their corporate culture. They even report on their website that, in 2016, they received “a perfect score on the Disability Equality Index for our leadership in the community and diverse employment practices” (American Airline Group). The prominent display of their diversity practices on their website as well as their accolades demonstrate top management’s commitment. Diversity and inclusion are key components of American Airlines’ ideology and practices.
Business and Industry Trends
In the aviation industry, there has become a shortage of pilots that is only projected to increase (Garcia, 2018). While this is not as strong of an issue for commercial companies at this time, the high salary and benefits of pilots in commercial companies have drawn pilots away from the military and smaller private companies. Another issue causing the shortage is that there is a low level of age diversity with most of the pilots being Baby Boomers who are planning to retire. Finally, due to Congressional safety requirements and the high responsibility levels, pilots are required to be experienced, which may take years to achieve.
Five Stages of Organization Development
Anticipate the Need for Change
Develop the Practitioner-Client Relationship
The Practitioner was contacted by Chairman and CEO, Doug Parker of American Airlines Group regarding concerns within the organization. An initial meeting was scheduled with Mr. Parker and the administrative staff to gain additional insight of the concerns and assess the organization to determine its corporate structure, the perceived current challenges, and the ability of American Airlines Groups to be adaptable to organization development (OD) and change. Prior to the meeting, the Practitioner researched American Airlines Group organization’s history, mission, vision, and values to obtain additional knowledge and understanding of the organization’s culture.
During the initial meeting and in developing an open and trusting relationship, the Practitioner inquired about past experiences, gathered information, discussed the organization position and job reward system, established if there was noted stress and group pressures among staff and inquired about the interaction and role of staff members. Lastly, the Practitioner inquired about how Mr. Parker saw the organization. It was noted Mr. Parker and the administrative staff believed the loss of revenue and possible pending bankruptcy was based on consumer complaints, competitors, decrease in stock, COVID-19 and on-going debt. Mr. Parker believed his staff performed their task; however, he was interested in receiving assistance with developing a plan for change and organizational improvement to counter crisis situations. It is especially important to establish open communication and trust to receive the appropriate responses and be able to implement the appropriate process for change.
Through this process, the Practitioner determined American Airlines Group was interested in OD and implementing a renewal process and changes within their organization. Mr. Parker and the administrative staff agreed and advised they will work to promote the recommendations of changes to establish a successful outcome for American Airlines Group. A second meeting was scheduled with Mr. Parker to discuss and formalize the contract to confirm consultative service between American Airlines Group and the Practitioner. A discussion was conducted regarding expectations and agreed upon a collaborative approach to include trust and shared responsibility among both parties. The contract established the primary point of contact, the Practitioner’s role, the fee for services, the schedule and length of services, the anticipated results, and the operating ground rules. The Practitioner requested access to interview all staff members, the ability to observe the workplace, participation in established meetings and access to review all pertinent data of American Airlines Group. In addition, it was noted that American Airlines Group will view all recommendations as it relates to the probability of a successful outcome. The expectations were drafted into a contract and signed by both parties.
American Airlines Group was informed that creating a climate for change is never easy and can be challenging. Specifically, when there has been no consistent change within the organization and the staff has become used to the daily work as “normal” or “routine”. In working with American Airlines Group, the Practitioner listened effectively and expressed ideas clearly and concisely. The Practitioner assisted American Airlines Group with sharing ideas, providing assumptions, perceptions, feelings and accepting personal responsibility for their actions within the organization. There was a balance between power with the Practitioner and American Airlines to avoid any difficulty in developing a collaborative relationship. This action assisted with merging the gap between the Practitioner and American Airlines Group by working collaboratively to create and build opportunities to involve staff at all levels and convince them to “buy-in” to the change.
Based on the initial and second meetings, as well as information gathered, the Practitioner will move forward with instituting efforts, identifying where problems are occurring, establishing the specific OD techniques to initiate and suggesting changes in order to increase overall organization improvement.
The Diagnostic Phase
In the Diagnostic Phase, the Practitioner needs to fully assess the organization to better understand what issues they might be facing. While management did initially identify a need, particularly with the dropping value of stock and need to acquire substantial credit, the problems that they identify might not actually be the problems that the Practitioner should address. This primarily occurs for two reasons; either the problem is not fixable or the problem identified is a symptom of a larger issue. In this case, the Practitioner suspects that the former will be the greater culprit. As discovered in the stage in which they identified and assessed need, the COVID-19 pandemic has disrupted their operations and caused this change. While the pandemic is ongoing and is not in the control of American Airline Group, they must find ways to adjust their practices. The best suspected method would be to increase safety measures. This involves surveying engineers to determine which changes are feasible and surveying other staff and customers to determine which changes would make them feel the most safe. Medical experts should be consulted through interviews to determine which changes would be the most effective.
Since the Practitioner has developed a relationship with American Airline Group, they determined that an industry trend and issue for the airline has been a pilot shortage. While COVID-19 poses a reactive, crisis environment, the Practitioner wants to be aware of issues that can allow the organization to respond appropriately without the issue becoming critical. Thus, the Practitioner should also survey pilots in particular to understand how to best retain pilots as well as those interested in becoming pilots to see if this crisis can serve as an opportunity to also address those underlying issues.
The results of the safety survey to engineers showed that a pull down screen divider would be most efficient to provide additional safety measures on planes without having to invest in re-designing the machines. They also suggested a better use of space inside to avoid packed lines and improve efficiency. Most customers reported high safety fears of going on an airplane or being in an airport due to closeness to others and being stuck in the same space with the same air. It appears that efforts to reduce that closeness would assuage their fears and allow people to return to travel. Finally, the medical experts suggested social distancing with a six foot gap between all non-family passengers. They also recommended the requirements of facemasks and limited capacity upon reopening, although these measures could diminish over time, if the pandemic does not worsen.
Customers also responded to questions about interest in becoming pilots. There did appear to be an increased level of interest for those who were unemployed due to the virus. In regards to the survey for pilots, the main response of advantages in their position was that there were high salary and benefits. Some main concerns were that American Airlines may fire them and that they were getting older and considering retirement, especially due to the pandemic. These data should guide the Practitioner to creating a plan of action for the corporation.
Action, Plans, Strategies, and Techniques
Self-Renewal, Monitor, and Stabilize
Recommendations
Lessons Learned
Karen Coles
As Practitioner, I learned it is extremely important to gather all pertinent information regarding the organization as it relates to the corporate structure, S.W.O.T., mission and organizational culture. In having this information prior to meeting with the client, the Practitioner is prepared to ask questions, clarify responses, and engage the client in dialogue to build an open and honest trusting relationship. This is a change process for the organization; therefore, the Practitioner needs to ensure the organization is adaptable to the change and the Practitioner is able to provide the consultation service. As this change process is occurring and the Practitioner is conducting interviews, observations or surveys, the Practitioner would need to be prepared for the unforeseen within the organization and understand what the client may foresee as the problem, may not be accurate.
Creating an intervention to resolve the problem and improve the effectiveness of the organization is challenging, however, if the Practitioner has communicated to the client throughout the process and collaborated on ideas, the client will be in agreement and eager to implement the intervention. It is essential to monitor the intervention and determine if it needs to be modified, terminated or if it has been successful. As Practitioner, I learned the most important aspect for an organization to understand is change is continual and for an organization to continue to be successful they must adapt to the change.
Rachel Solomon
Tymica Waters
Akilah Williams
Isaiah Williams
References
American Airlines: Most Fragile and Speculative (2020, April). Seeking Alpha. Retrieve from https://seekingalpha.com/article/4336813-american-airlines-fragile-and-speculative
American Airlines Group (n.d.) Retrieved from https://www.aa.com
American Airlines Announces Additional Schedule Suspensions in Response to Reduced Customer Demand Related to COVID-19 (2020, March). American Airlines Newsroom Retrieve from
Brown, Donald R. (2011, 2006, 2001). An Experiential Approach to Organization Development, 8th Edition. Saddle River, NJ: Prentice Hall.
Enem, Mark (2020, March). Fasten your Belts, American Airlines Investors: You’re Flying into Another Bankruptcy, CCN. Retrieved from https://www.ccn.com/fasten-your-belts-american-airlines-investors-flying-into-another-bankruptcy/
Garcia, M. (2018, July 27). A ‘perfect storm’ pilot shortage threatens global aviation. Forbes. https://www.forbes.com/sites/marisagarcia/2018/07/27/a-perfect-storm-pilot-shortage-threatens-global-aviation-even-private-jets/#77617e991549
Levine-Wineberg, Adam (2020, March). The COVID-19 Pandemic Slams into Airlines: Are There Any Bargains? The Motley Fool. Retrieved from https://www.fool.com/investing/2020/03/13/the-covid-19-pandemic-slams-into-airlines-are-ther.aspx
Miller, Alex (2020, January). US Airlines with the Best and Worst Customer Service, Upgraded Points. Retrieved from https://upgradedpoints.com/us-airlines-best-and-worst-customer-service/
Whiteman, Lou (2020, February). Why Shares of American Airlines Down Today, The Motley Fool. Retrieved from https://www.fool.com/investing/2020/02/25/why-shares-of-american-airlines-are-down-today.aspx
American Airlines Group, Inc. (n.d.) U.S. News and World Report. Retrieved from
https://money.usnews.com/investing/stocks/aal-american-airlines-group-inc
American Airlines Group. (n.d.) American Airlines. Retrieved from
https://www.aa.com/i18n/customer-service/about-us/american-airlines-group.jsp
Let Good Take Flight (n.d.) American Airlines Retrieved from
https://www.aa.com/i18n/customer-service/about-us/let-good-take-flight/
American Airlines (n.d.) Retrieved from https://jobs.aa.com/
Comparably (n.d.) Retrieved from
https://www.comparably.com/companies/american-airlines/mission
