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Silvertail Airline sample essay

A change in Australian policy has led to changes for Silvertail which includes revising the staffing requirements and needs. The top hierarchy was replaced by staff head hunted from USA, the new board decided to restructure Silvertail’s management such as large size downsizing and closure of regional facilities. This led to rebranding to represent fresh, modernization and target market shifted towards under 30 year olds. This decision has imposed a problem towards the SIlvertail’s cabin crew. Silvertail’s Director of Recruitment, Sam Milroy has turned to a Management Consultant, Bobbi Stephen to discuss the issues regarding their staffing issues.

The consultant approach towards this issue was biased towards the existence of the older workers. Instead of working on the problem, he chose to eliminate the problem by using reverse psychology such as penalizing their incentives such as downgrading their accommodation such as from five stars to three stars.

The aim of the company was to re-structure the airline without putting their publicity at risk. The need to hire younger staffs to be in line with the new image became crucial for Silvertail. The existing pool of older crews suffered tremendous consequence such as benefits and privileges was reduced and long haul flights were to be made mandatory to limit their time for ‘family commitment’

The issue highlight was mainly due to the existing staffing which includes old cabin crew which did not fit in their image without realizing that older workers are predominant in the comapy. Based on Rosen and Jerdee 1988, managers have negative views despite their actual performance. Conversely, it is crucial to sustain these experience workers.

Furthermore, the older workers may not be educationally inclined, the consultant suggested filtering the workers based on the qualifications. Hence recruitment and training for cabin crew was suggested to be more stringent. Minimum qualification for cabin crew was decided to be a degree holder whereby the airline would willingly off education benefits with respect to this requirement. However the airline made if practically impossible to allow cabin crew to complete their course of study within five years while serving the company. The airline’s internal competency requirements were be physically challenging for the older cabin crew as it will be much tougher and physical. Promotion of younger staffs used as one of the strategy to eliminate the older workers as it will create emotional tension between the workers.

The Silvertail management did not take careful consideration to find the best solution to increase their productivity and retention of best employers. Failure to recognize the experienced workers worth, might lead to failure of the new rebranding efforts. The issues were not realizing that younger workers will also mean lack of experience compared to the older ones especially in terms of good customer service. This would also reduce existing staff motivation in the future for the airline.

Another issue is re-engineering which completely disregard all the assumptions and traditions of the way business has always been done, and instead develop a new, process-centred business organisation that achieves a big improvement in performance (Hammer & Champy, 2000).

The solutions for above mentioned issues are. Firstly for the organizational structure of downsizing, the appropriate strategy should be to clarify the organization’s strategy such Silvertail need to communicate with their staff-what,why,how (Waddel et al, 2007) SIlvertail need to assess downsizing options where they should consider other alternatives such as systemic or organization design before considering workfoce reduction ( Waddel et al, 2007). Implementation of changes should be consistent with Silvertail’s strategy across the whole organization ( Hornstein, 2009).

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