Emirates Airline Company’s Organizational Leadership

Introduction

Economic prosperity is the goal of many organizations. Airline industry is crucial in the world’s economy as it acts as an economic backbone of many other businesses. Globally airline industry cuts across many industries like holiday destinations and tourism sector. Emirates Airline is a successful UEA based company that is in the airline industry. The company has realized eminent financial growth over the years and has a well established brand name. It should be noted that, the industry is influenced by environmental fluctuations. Emirates Airline has however remained resilient to such fluctuations, as evidenced by growth and financial expansion over the years.

Literature Review

Many scholars have investigated factors primal to organization culture. Focus has been on different aspects that determine productivity and profitability of the firm. Job satisfaction is one of factors that affect productivity of a firm (Palmer, 2006). Employees who are satisfied with their jobs are more likely to be productive in an organization than those who are not. In this regard, motivation has been considered essential in process of ensuring that employees are satisfied with their jobs. Both extrinsic and intrinsic values are enhanced by motivation (Perreault, 2003). Team work practices affect performance of any firm. Management and leadership style affects team work practices. Management should engage employees and entire human resource in decision making process.

Conflicts in any organizations should be managed effectively, so as to ensure that they do not get to unhealthy level. Job satisfaction is further promoted by valuable awards that are given to outstanding employees, so as to boost both intrinsic and extrinsic values. Managers of the organization are also developed through mentoring events, thereby promoting development of managerial skills (Doganis, 2006). As a result, there is smooth management in the airline which further diversifies success and profitability.

Level of communication is also essential in production of any firm. Firms that have small power distance have higher cohesion. Cohesion is proportional to productivity (Mealiea & Latham, 2012). The more employees are united the more they are likely to work together. Further, cohesion means combined efforts that ensure more returns for the firm (Doganis, 2006). Consumer satisfaction is incorporated in literature of organization culture. Services and products should seek to satisfy demands and needs of consumers as much as possible. Management of human resource is paramount as it ensures that organization culture promotes success of any firm (Kleymann & Seristo, 2004).

Background Information

Emirates Airline is owned by Emirates Group that is based in Dubai. Emirates Group was established in 1959 and has been associated with long term success so far. Emirates Airline was founded in 1985 and has recorded great economic growth as well. Emirates Group is owned by the government of Dubai. Emirates Airline is the largest in the Middle East region and enjoys great competitive advantage. Operations of Emirates airline are centered at Dubai International Airport, where approximately 3,500 flights occur weekly. The airline operates in 74 countries and has more than150 destinations. In 2007, Emirates Airline was ranked tenth globally, in terms of capacity and distance. Surveys conducted in 2012, revealed that the airline was world’s fourth-largest based on capacity and distance. Dominance of Emirates Airline in Middle East includes annual revenue as well.

Emirates Airline engages in operations of Airbuses and Boeing aircrafts. Notably, Boeing crafts are expensive and are used by very few airlines in the world. 2007 was extraordinary for the airline as it purchased 130 aircrafts. The success of the airline can be attributed to its strong brand name and communication strategies that are incorporated in business model. Emirates Airline focuses on provision of excellent services to consumers, a fact that has been essential in its rapid expansion and profitability. As a matter of fact, Emirates has won many awards that are based on its services, commitment, consumer satisfaction, safety and economic performance. Notably, the airline has assumed an upward trend and has recorded profits ever since it was establishment in 1985 (Palmer, 2006).

Hierarchy of Strategy

Hierarchy of strategy embraced by Emirates Airline incorporates communication significantly. There is an Executive Chairman and Finance Director within the Board of Directors. There are only two Non-Executive Directors of the Company. Four of these officials constitute corporate strategy. They focus on determining direction to be assumed by the company. In this regard, communication is integral to success of Emirates Airline. The officials communicate to board of directors concerning strategies or direction that Emirates Group should follow. Management is delegated to management group that is comprised of senior officials from all departments. The senior officials are assigned business strategies and decide on relevant activities that individual companies should adopt. For instance, Emirates Airline has senior officials who advice and guide process of decision making within the company. Senior officials are expected to present progress of subsidiaries that they represent.

Employees of the company are expected to present their suggestions or views to senior officials who would take it to Group level, if deemed necessary. The functional strategy incorporates employees of individual companies in Emirates Group. The board meetings are chaired by Executive Chairman of Emirates Group. It should however be noted that, Emirates Group is the supreme body and they only devolve their power to managerial organs. As a matter of fact, there are some decisions that are only made by Emirates Group. The subsidiary companies hold regular individual meetings that are chaired by the Group’s General Counsel. Arising matters that warrant consideration of Emirates Group are reported by Group’s General Counsel (Perreault, 2003).

Individual subsidiaries are responsible for entry of business contracts. The contracts have to be reviewed by a Contract Review Board (CRB) that is made up of senior officials from the Group. CRB is responsible for evaluation of economic and legal perspectives that are likely to influence business process. Company’s board has established a register of risks and uncertainty management which is reviewed on a monthly basis. The review is essential as it ensures that strategies adopted promote economic growth maximally and harbors minimal or no threats to the organization.

Conflicts of Interest

Conflict management is effectively adopted by the company. Healthy conflicts are encouraged so as to ensure cohesion and increase chances of success. Conflicts are supposed to be reported during Board meetings by the directors. Conflicts may arise from internal or external environment. They are addressed on a monthly basis. They are updated on minutes by the company secretary. Senior director is also required to identify and document conflicts that arise. If the conflicts fail to be settled at company level, they are taken to Group level for further consideration.

Management Board is tasked with daily operational activities. Remuneration is chaired by Non- executive director alongside the Executive director and the other non executive director. The Remuneration Committee is in charge of the formulation of remuneration policy and making financial arrangements, like pension and expenditure of the employees at the executive level. Remuneration of Non-Executive Directors is determined by the Chairman and other executive members of the Emirates Group Board. It should be noted that, directors are not allowed to make decisions regarding their own remuneration.

Remuneration Committee is expected to reach an agreement about the policy to be adopted, after considering relevant factors like legal requirements and recommendations. The committee is responsible for the appointment of consultants and can engage in any kind of relevant surveys in the organization. The remuneration policy ensures that fair incentives and salaries are given to executive employees so as to promote motivation and productivity. The policy ensures that the executive employees are rewarded for their intervention that brought much success to the company (Palmer, 2006).

Audit Committee

Independent Non-Executive directors team up to constitute an Audit Committee of the Board. Finance director and external auditors are allowed to attend meetings that are organized by the audit committee. The Committee is given the mandate to investigate on any issue that is likely to provide financial related information in the organization. Further, external financial advisers are encouraged to attend meetings. The committee is in charge of ensuring that external auditors are selected in a fair and free manner. The committee is expected to predetermine auditor’s fee and present it to the board. The Committee is in charge of monitoring and evaluation of financial reports and ensuring that efficiency is emphasized. It is expected to provide its view regarding financial systems, challenge the existing ones and give recommendations where necessary.

Emirates Airline has an established website that has been essential in its success and competence. Customers get to access services via the internet. Employees of Emirates Airline interact with consumers. Online communication promotes consumer satisfaction. For instance, online booking is convenient and cheap. One of the reasons why Emirates Airline has been competitive is due to low prices when compared to its competitors. The website is used as an effective communication and marketing tool. It fosters brand knowledge and salience. Relevant information regarding the airline is accessed by consumers at minimal rates (Mealiea & Latham, 2012). Consumer decisions are thus informed ones, since empowerment is emphasized in the organization. Online communication promotes time and place utility. Needs of consumers are satisfied at the right time and place. After sale services that are integral in maintenance of Brand loyalty are also promoted. Online communication assumes emotional approach that further promotes consumer satisfaction.

The website of Emirates Airline contains company’s information, services and respective charges. Focus is on ensuring that the needs of customers are met despite the physical barriers and supply meets demand. Objective of the website is to ensure that customers can access efficient services and are updated on progress of the company. The website highlights variety of services offered by the airline. Adoption of technological strategies is essential as it ensures that the company is competitive. Consumers fill in forms with details of their needs based on categories available. Employees of the company respond to customers as soon as their requests are received.

I would advise Emirates Airline to improve online management of its website. For instance, the company could adopt blog techniques that would foster interaction and capacity building. Feedback and suggestions by consumers are essential in identifying strategies that should be adopted. I would advise the company to ensure that its website promotes consumer satisfaction by collaborating with other companies and agencies that are in line of business. For instance, collaboration with online industries that would make activities like booking easier would increase competitive advantage. Focus would be on consumer satisfaction thereby, I would advise the company to investigate on its impacts using its website.

Management of the human resource is wrapped around the bold, empowerment, accountability and fun pillars. The four aspects of Emirates Airline revolve around communication strategy. The Bold aspect ensures that the company focuses on improving management of human resources by use of innovation and creativity. Emirates Airline upholds that success of the firm is influenced by commitment of customers, suppliers, partners and employees. In this regard, the airline is always willing to try and invent even better services that will ensure maximal satisfaction to its human resource. Transparency as opposed to ambiguity is advocated in the organization. Employees are bold since they are aware of information necessary in their operations. For instance, periodic trainings as well as updates are disseminated to respective parties in the organization.

The accountability pillar fosters sense of responsibility, since the firm is willing to accept the consequence of its every move. The airline encourages its human resource to be always accountable and work towards team success as opposed to the individual one. In this regard, all members of organizations are updated and are expected to communicate to other members regarding their progress. The airline relies on the support of the human resource to improve its operations all over the world. Focus is on ensuring that the customers get the best services possible, so as to improve the profitability of the airline. Further, accountability will help understand the progress and trend of the business better in all its destinations. The airline advocates for empowerment that ensures maximum production. The idea is to avail relevant information to the customers so that they can be able to make informed decision that will increase their satisfaction.

The fourth aspect of management of human resources applied by Emirates airlines is that of fun. Focus is on ensuring that the human resource associates the airline with fun, due to the strategies adopted and implemented. The collective approach is to improve services and ensure that needs of all stakeholders are met, thereby making the airline outstanding and more competitive. The aspect is well reinforced by the effective communication system implemented by the company.

Communication ensures that human resource is satisfied and motivated hence promoting productivity and profitability of the airline. The four pillars are well articulated in the business plan of the company and aligned with ethics and other programs of the organization (Kleymann & Seristo, 2004). Emirates Airline recognizes essence of development of the human resource so as to be at the same pace with evolution of technology and globalization. The mission is to recruit, develop and maintain high performing employees as they will promote profitability.

Conclusion

Profitability and economic growth are considered as measures of success in organizations and other business institutions. Emirates Airline is one of the firms that have focused on identification of business opportunities and adoption of related objectives and plans. Notably, there are many other organizations that adopt the consumer satisfaction approach. As a result, consumer satisfaction process is now a competitive process. Only organizations that implement set objectives are likely to achieve brand salience and enjoy competitive advantage.

References

Doganis, R. (2006). The Airline Business. New York: Routledge Press.

Kleymann, B. & Seristo, H. (2004). Managing Strategic Airline Alliances. Washington: Ashgate Publishing.

Mealiea, I. & Latham, G. (2012). Skills for Managerial Success: Theory, experience, and practice. Irwin: Chicago press.

Palmer, R. (2006). Managing Marketing Performance. Edinburgh: Butterworth- Heinemann Press.

Perreault, W. (2003). Basic Marketing Applications Manual: Supplement 2003-2004. Sydney: McGraw Press.