Organizational Behaviour

Task 1: SCENARIO

Merging of Northwest airlines and Delta airlines

Tourism is one of the fastest growing industries in the global business. The year 2009 was the global economic crisis it has a great impact on the airline industry. I remembered when I've done my internship in Northwest airlines in the Ninoy Aquino International airport (NAIA) Terminal 1 in my home country Philippines as a ground attendant.

Northwest airlines closed it deal to Delta airlines last October 29, 2008. The new carrier's 13 member board will include 7 representatives from Delta and 5 from Northwest. It will operate under the name of Delta airlines. Richard Anderson, CEO of Delta will also be the CEO of the new company. Delta chairman Daniel Carp and President Ed Bastian will hold the same titles in the new company, while Northwest chairman Roy Bostock becomes vice chairman.

At first the pilots union at Delta uttered support of the deal, the planned combination has already brought objections from the Northwest pilots and flight attendants. Last January 2009, objections from the pilots' unions helped hold up the deal. While the airlines do not necessarily need their unions' approval of the deal, labour conflict could cause operational problems for both the airlines and their passengers.

All the employees particularly the front liners who assisted the passengers in arrival and departure are worried about the merging of their company to the other airlines. There are (29) twenty nine batches of employees in the organization. Timothy John also known as TJ belongs to the second newest batch which is 27. He worked in the company for 3 years as a ground steward. The last batch was dissolved and TJ is worried about the changes and he used his right for voluntarily resign instead of being terminated. He wants to receive compensation from the company because if he will be terminated he will just receive a small amount rather than doing it voluntarily. All the remaining employees are unhappy and worried about their job.

Due to economic crisis the company need to undergo cost cutting. After dissolving the new batches they hired more casual employees for front liners position. The new hired employees need to wait for a vacant slot in regular employees to be one of them. Chai is one of my co-trainees before and hired as a casual employee after few months and go through the four months training until now she is on a contract basis. She is disappointed with the new system. She cannot receive the travel benefits and her salary is not the same as the regular employees.

Working in an airline industry is a pressuring job especially if you are in a ground handling sector. We don't have the normal office schedule instead you are required to have shifting schedules because airport service is 24 hrs. All employees will experience both day and night shift. Despite of the nature of the work it is customary to all employees to deliver customer satisfaction in providing service to the clients.

Task 2:

1. Leadership Approach

Leaders characterize as change agents, goal focussed, visionary, decision makers and very efficient.

Transactional and Transformational approach

Transactional approach is the leaders pursue a cost-benefit, economic exchange with the followers (Sarros, JC & Santora JC 2001, p. 6).

Transformational approach is encouraging performance beyond expectations; elevate the consciousness level of followers by applying higher level of values: liberty, justice, peace and equality (Sarros, JC & Santora JC 2001, p. 2 - 3).

The leadership style is formal where the new CEO is appointed by the shareholders. The new CEO of the new company assured that they enter to consolidation transaction for it was right for all their constituencies and Delta and Northwest are perfect fit. The deals have beneficial effect for both companies.

Their sets of goals are as follows:

? Delta and Northwest will generate a new global US carrier

? A more financially stable airline.

? Customers and communities will benefit from a new global route system.

? Additional destination, schedule options, and increase more points in frequent flyer miles.

The leaders direct and encourage their employees in their task to achieve the goal for a better performance of the new company. The essence of leader is to lead with determination and enthusiasm (Popper, M & Zakkai, E 1994, p. 1).

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