Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ORGANIZATIONAL CHANGE
& DEVELOPMENT
1.1
Oscar Holiday is a unique and fast growing travel company, having a corporate office in
Kuala Lumpur, Malaysia. It was incorporated in 2007 to render comprehensive travel
agencies all over the countries. Oscar Holiday has capitalised its dynamism and wellbeing,
towards differing demands to their customers.
They are proud of their achievements that they have made throughout all these years. They
have started up with 5 staff including 2 directors at one of the shop lots at Jalan TAR, Kuala
Lumpur. Now, after 9 years of hard work they have now operating in a big scale whereby
they have shifted from a shop lot office to a bigger office space at Menara Multi-Purpose,
Jalan Munshi Abdullah, Kuala Lumpur. They have made through with dedicated and highly
experienced staff who have immensely contributed to their consistent growth and the staff are
well trained with full IATA/UFTA qualifications who also now can be awarded as an
expertise in providing the full range of travel and its related service making.
Their main travel partners include extensive number of established giants in the leisure
industry across the globe. This success today is also a reflection of their long-standing values
in providing superior customer services, innovation and their ability to source and provide
value for money travel products to all of their customers. The staff meet the needs, the tastes
and of course the budget of the customers. Their services are efficient yet friendly,
professional yet personalizes, qualitative yet good for value for money.
The world now is continuously moving forward towards a demanding phase that revolves
around travelling has become everyones passion. Based on that, they are providing a very
good customer services and never failed to have a repeated customer and not to forget a new
one as always.
Oscar Travel Services Sdn Bhd is another milestone for them. It established on 1st March
2016 as a GSA for SriLankan Airlines. A general sale agent (GSA) is a sales representative
for an airline in a specific country or region. Typically, the GSA is responsible for selling all
products of the airline in its region which includes flight tickets and cargo space. A GSA will
typically sell the product of more than one airline.
Airlines normally use a GSA in areas that it does not operate to or from, allowing them to
have a sales presence in a country at lower cost than opening their own offices in short term.
It may also use their services because the GSA has historical ties with travel and cargo agents
which will be too time consuming for the airlines to build itself.
The GSA receive a commission of around 3-5% on all tickets and unit of cargo space hold in
the region that it represents.
All cost related to running the GSAs business are the responsibilities of the GSA including
insurance, rent, general office expenses and any travel within the country or region needed to
promote and sell the product.
And now Oscar Travel Services Sdn Bhd has been appointed as GSA for SriLankan Airlines
in Malaysia. This shows how far Oscar Holiday has been achieved throughout this 9 years of
services in travel and tourism industry.
This airline is Sri Lankas premier airlines and also one of the largest in the world. The team
has gone through many issued regardless positive or negative during the time they have been
appointed as GSA in Malaysia. There a several process which has been set up in order to
obtain the title of GSA. Start from tender, participation, getting into the tenders, and few
other process. This will be our main focus in this case study.
Chairman
Director
Director
Director
Director
Director
Country Manager:
Mr.Dilshan Kudahetty to run the station with assistance of appointed GSA staff
Management Staff
Mr.Malkit Singh General Manager
Ms.Sujithra Manoharan - Manager
1.5 Products
Fleets
SriLankan Airlines currently has an all-Airbus fleet of 21 modern, sophisticated aircraft
which includes:
Thirteen A330 (long haul)
Eight A320/A321 aircraft (medium haul)
With SriLankan Airlines, long trips are meant for relaxing. From the moment passenger board
till land safely, its all about enjoying every comfort a journey could possibly bring. Our
A330 aircraft come with comfortable seating, entertainment options and the calming
ambience. Its all about happy flying.
Airbus A320/A321
With easy reclining seating and a relaxing ambiance, our A320 aircraft operating short and
medium-haul flights are the very embodiment of tranquillity. The Airline currently operates
six A320 aircraft and two A321 aircraft on its short and medium-haul routes operations.
SriLankan Holidays:
SriLankan holidays, it is the holiday division of the airline, which encourages travel from and
to Srilanka and also all directions throughout entire network of airlines. Its partners having
several top hotels, tour machinists and other sightseeing related associations to help the
travellers an extensive selection of time off opportunities with an all-encompassing concept,
which consists of customized packages. SriLankan holidays endorses travel for musical
concerts, shopping festivals, sporting events and former activities, and it has premeditated
agreements with a no of regional sightseeing bodies to encourage tourism from and to a
specific destination. It won an esteemed title called " Best Outbound Tour operator" at the
awards of presidential for tourism and travel in the years of 2008 and in 2009.
Drastic drop in the world fuel price and petroleum is the largest sources of revenue for
Malaysia
Due to budget constraints most passengers prefer to travel on low cost carrier
Holiday makers prefer short haul destinations e.g Indo Cina, Thailand, Bali
Younger generation and IT savvy passengers prefer to buy their tickets and ground
packages on-line
Cost conscious corporate companies also book on low cost carriers for their business
trips, incentive trips /ground arrangements.
1.8 Customers
Business Travelers
Foreign Student
b) During the students choose the company to be the focus of the case study
We have gone through the websites which talks about Oscar Holiday and what is their current
activity and the achievement they have made throughout the years. We also checked the
review given by the passengers on website about Oscar Holidays. We also found that they
have strength and weakness in running the business. Hence we have decided to choose the
company so that it will match our project.
Unobtrusive Measure
Unobtrusive measures are a research method of data collection that does not involve direct
contact with the research participants. This differs from direct measures like surveys,
interviews, and questionnaires that involve interaction with the participants. Structured
observation is an example of an unobtrusive measure - there is no direct interaction with the
participants, only observation from a distance.
Here, we did a research on internet and also we have read about Oscar Holidays in the
newspapers and social media. From here we have decided to take Oscar Holidays case for
our project. We observe clearly about their change and how do they get into it. Other than
that, during our visit for Matta Fair, they have promoted about SriLankan Airlines, and we
got a picture that they have gone thru major changes.
3.0 FINDING
The planned change process in Oscar Holiday started when they got the tender. Manager
sense an opportunity for the organization performance can improved through organization
development. Oscar holiday is a local registered travel agent company based in Kuala
Lumpur under the tourism ministry since 2007.
In order to get their license to operate they had to meet the requirements of an airline travel
agent, Oscar holiday never hired an OD practitioner so there was no contracting they have
utilized their existing staff to help set up the project.
As an interest of study in the change that Oscar holiday gone through we set up an interview
session with the executive director madam Glory, we introduced ourselves as researchers
with the mission of doing a case study of change at Oscar Holiday. The executive director
talked about the history of change at Oscar Holiday and asked questions about the value the
project would have for them. She saw several benefits, including the opportunity to generate
a history of the change, to learn about the impacts of the change process on the organizations
culture and members, and to build a database that could be used to advance the travel. The
interview was mainly focused on how they got the tender for airline and the changes faced.
Top of the requirement to get their license was to know and have an experience in passenger
air transportation, so they really dedicated a team inclusive of 4 people to research and obtain
all the relevant data they needed to know to be selected. The researchers spent days talking to
professionals about the travel agency, its strategy, structure, and culture, decision accelerator
process. They did interview session with pioneers of the airlines to get the correct advice on
how to run airlines and what would be the best way to ensure handling the airline runs
smooth. The team has done a lot of research on SriLankan Airlines through internet; they
have gone thru each and every website which talks about SriLankan Airlines to ensure their
future is secured and to provide profits to both parties later, Oscar was indeed a unique
organization. Lastly, the researchers presented their understanding of the project of how to
run and handle an airline.
Part of the requirement was also being a non IATA agent, IATA is one of the most basic
resources for travel agent since most airline bookings are done through the IATA portal, But
its still possible to buy and sell tickets without getting affiliated with IATA. Non-IATA travel
agents either purchase tickets from other IATA travel agents or from the airline, they collect
orders, send bookings to IATA travel agencies and forward the booked tickets to their clients.
This has a major impact on travel business, number of non-IATA travel agents increased in
past years using modern technological solutions that allow travel agents to build businesses
from the ground up, tools such as TTS Consolidator Solution that enables a travel agency to
take care of its ticketing business without having to be affiliated to IATA, and without being
forced to make any sort of change to its ways of operating, the advantage of this is that its
easy to use, flexible and accessible 24/7, thus eliminate the need to become an IATA travel
agent and offer an IATA-like experience minus hassles, financial implications and extra
processes.
As soon as Mdm, Glory and Mr, Johnson done with their research and paper work they had to
face another change challenge which is to find an office space that is sufficient for their
company size as well as near to public transport and accessible easily by public, now Oscar
holiday is located in heart of KL at Menara Multi-Purpose. After settling down with location,
Madam Glory went through challenges such as organization structure and managing existing
employee as well as hiring new ones. Hiring new people is a constant challenge to try to find
the best candidates in short time and to meet Oscar Holiday demands, Furthermore, educating
the existing employee also was a tough part for them to manage, as they are used to work
with their old tasks adapting to a new task has not being easy for them. The issue facing
Oscar Holiday must be clarified early in the OD process so that subsequent diagnostic and
intervention activities are focused correctly.
In trying to improve the productivity of Oscar Holiday managing existing employees and
hiring new ones, the relevant client may need to include the HR officials as well as managers
and staff personnel. Here, at Oscar Holiday continuously challenged by different tasks it may
be necessary to expand the client to include members from multiple departments. The
manager of sales department may seek help in resolving conflicts between his/her unit and
other departments in the organization. The relevant client would extend beyond the
boundaries of the sales department because that department on its own cannot resolve the
issue. The client should include members from all departments involved in the conflict as
well as the executive to whom all of the departments report, suppliers and customers from
outside of the firm.
In such complex situations, we found that we need to gather additional information about
Oscar Holiday to determine the relevant client, as part of the initial data collection that occurs
when clarifying the issue to be addressed. When interviewing personnel, we can seek to
identify the key members and organizational units that need to be involved in entering and
contracting stage.
Regardless of technical training, as an acting consultant one must be able to maintain a
boundary position, coordinating among various units and departments and mixing theories,
technology, and research findings in an organic rather than in a mechanical way. Interpersonal
relationships are tremendously important and skills. Consultants bear a heavy responsibility
in finding whether there is a match between their skills and knowledge and what the
organization or department needs. Thus, clients should be explicit about their strengths and
weaknesses and their range of competence.
To get to know more ideas on how to obtain and attract the board of committee of SriLankan
Airlines during interview session they had with all the participants, the travel agents on the on
sales and marketing, other travel agent who has got GSA for other carriers to ensure what is
the process of getting into tenders and interviews and etc. During this time, Oscar Travel
Services had gone thru many obstacles as well. There are people who involved in the
interview session who had given some false news as well so that they will not win the
bidding but Oscar Travel Services with their market research and influences would be able to
collect the correct date during the interview session.
Complete applications along with required documents received by the due date will
get fair consideration.
Applicants will have to meet the minimum laid down criteria to be shortlisted
(minimum laid down criteria list is provided below):
Applicants meeting the minimum benchmarks will be shortlisted for further
processing.
Financial statements including annual balance sheet and Profit & Loss statement for at
least 2 years to be evaluated.
These documents must be audited accounts by a chartered accountancy firm and in
English. Where accounts are not in English, a certified English translation must
accompany the Accounts sent for evaluation.
While evaluating financial position of the applicants, the following will be
considered:
Capital Structure
Liquidity position
Structure there are changes took place in the structure. When the current GSA took
over SriLankan Airlines, they have restructured the whole plan according to the need
of HQ. They were few staff been offered by the current GSA to work with them with
better remuneration and recognition. Even though the previous GSA was not happy
give the staff to the new GSA, the staff have decided to leave since they found better
restructuring process took over. They have applied Matrix Structure for the whole
plan. Matrix structure originally evolved in the aerospace industry where hanging
customer demands and technological conditions caused managers to focus on lateral
or resources and procedures, and to achieve a series of projects objectives. Every
matrix organization contains three unique and critical roles. Like in Oscar Travel
Services, GSA for SriLankan Airlines, the top position holds by Country Manager,
who heads the operation and the management of SriLankan Airlines. Country Manger
basically from the originating country of the Airlines. Followed by General Manager
who reports to Country Manager on the sales and marketing. Next position after
General Manager will be Manager who handles the operation of the front counter and
in house sales. And there is also Sales and Marketing team as well. Each of these roles
has its own unique requirements.
Tasks Most jobs were redesigned including more responsibility for staff in
management roles and multi-functional tasks for other staff. One of these job designs
is called job enrichment, which is the increase and deepening of motivating factors
built into a job. Some of these enrichments used by new management were increased
responsibility and accountability, less control and more freedom in the job and more
recognition.
People 3 staff been selected from the previous management to be part of the new
management. Hence the selection and recruitment process was slightly smooth since
they have experienced staff to run the show. However, they were recruitment been
done and advertise through newspapers and social medias as well for sales and
marketing, account and also customer services. the staff interview session held at one
of local hotel in Kuala Lumpur and they were many. For all new staff, they were
training been given for them to know about the product and also knowledge about
SriLankan Airlines. The training given basically about system, handling product and
sales knowledge as well.
Strategy Operations and planning were clarified at monthly and quarterly meetings.
These were between Country manager and manager staffs regularly and CEO
meetings irregularly, to engage staff. Leadership has changed from the traditional trait
and behaviour approaches to transformational, charismatic, visionary focus and is
separate from management. The leadership team at Srilankan Airlines formally
includes the Board of directors from the HQ. Their leadership function can be
observed by their language and behaviours they use a transformational and visionary
change approach to motivate their employees.
Objectives- Specific performance targets were set allowing staff to earn a higher
commission by overachieving set targets, recognition and prizes to increase
motivation consistently.
Power this includes providing people with enough authority to make work related
decisions covering various issues such as work methods, task assignment, performance
outcomes, customer service. The general manager and manager were assign on this segment
where they both been given task to handle the various issues faces by their down liner on
their daily routine, this covers system usage up to customer services which handle by front
desk staff
Knowledge and skills training provided regardless in house training or out station,
the employee been mould with many skills and knowledge on how to handle things. The staff
been well groomed about airlines industry and how to ensure it reach its target during peak
and non-peak season.
Rewards Because the management is still new, they were less concentration given
in this part. some sort of incentive will be given once target reach consecutively and bonus
will be paid based on performances of the year.
Goal setting:
Involves managers and subordinates in jointly establishing and clarifying employee goals.
Goal setting can affect performances in several ways, it influences what people think and do
by focusing their behaviour. Here the HQ will set a goal to each station operated by
SriLankan Airlines and they will work towards achieving the targets. And the intervention of
GSA will be there because they will be getting the overriding commission on monthly basis
after operation been performed every month. GSA entitled for 3-5 % overriding commission.
Hence to get a profitable figure at the very end of the month, both SriLankan Airlines with
collaboration of the GSA has to work really hard to achieve the station target. Goal setting
will be solely by the HQ and the implementation will be from the GSA. HQs goal will be
always achieving target for all routes regardless peak or non-peak, but here the GSA depends
on the Malaysias season. And it will also other carrier marketing activity to some same
destination. Sales & Marketing team really has to work hard to achieve the goals that has
been set up.
3.9Lessons learned
Performance Change
Since the intervention occurred, Oscar Holiday recorded a growth rate in their full time
employee (FTE).
Recognition
Employee of the month award was created by encouraging staff to use an online
submission for their preferred co-worker who had gone over and above their job
requirement displaying one of the company values. In addition, the company awards
the sales department with the person with the highest dollar value in sales and yearly a
larger reward of which one year was a new car. Similarly, a newsletter recognizes new
sales people who achieve early in their job. All of these reinforcements are called
extrinsic which are rewards given to someone by another persons valued outcome
and because they are environmentally impactful are valued in influencing behaviour
through the law of effect. Cultural change can take years; however effective cultural
change strategies can be used to shorten the time frame. It is important to align the
culture to support the desired change in behaviour. For example, True local needed a
professional, customer focused culture which required staff to develop professional
skills and behaviour. The result was all departments undertook a full training program
designed to increase awareness in communication, with a focus on questioning and
empathy.
4.0 Recommendations
For their planned changed, Oscar service did not go through proper steps. They hire
internal persons to be their OCP. So they never follow proper contacting steps. There
were no basic contacting steps followed in the intervention. OCP directly start
working from the diagnosing step
Engage new planned change for human resource intervention
As we examine that Oscar Service faced major problem in their planned changed is
hire and resigning their employee to new strategy work. So we will suggest that they
should take it as a new planned change project to improve their human resource
intervention. They can hire one person from human resource to be OCP and come up
with a solution for their problem.
3) Refreezing is the evaluation and reinforcement of the changes that took place The
new management will recruited for their experience in organisational
transformation within the type of professional, high performing, corporate
environment the organisation desired and who worked at their competitor
company. These were expected to manage the entire change process themselves.
Change agents are people or groups who take responsibility for the change
of behaviours and existing patterns in a supportive manner. The perceived risks
however, are the responsibility of the organisations leader who decides on
the direction of the change.
4.0 Conclusion
Oscar is a new company and part of the superior and still comparatively new organisation,
Srilankan Airlines. The industry it operates in one of the fastest mounting and shifting
tourism globally. It changed from a structure and culture of casual, unprofessional work
practices managed within a more official structure that was under performing to
a transformational, high performing, innovative and professional values that are customer
focused. They achieved its goal of growth, productivity and change in behaviour, not much
planning appeared to be in place. It is unclear as to the lack of planning, communication
or use of external consultant in the case of radical change that occurred.
5.0 References