1. With reference to the case study, summarize the relationship between goals, objectives and policy and advise the management of Scotia Airways of the contribution each will make to effective managerial performance.
① Goals can separate into four parts.
The first one is consumer goals, it means providing for the clients need and wants.(specialist one of products) It is consider to be needs that the consumer wants.
In this case, the airline operates scheduled flights, especially aim at business and leisure travelers and to provide exceptional value for money, incomparable comfort and convenience to its passengers, they are always at work. Consumer needs high quality and convenience service, well cost performance product. So it is coincident with the goal.
The second one is operational goals, it implies wanting to improve efficiency. That means survive and make effort on enhance productivity.
From this case, they set about appointing a management team whose experience and expertise was firmly based on the budget aviation market. A preeminent management group can present at the proper aims and make the advisable decision to prove the efficient, thus they can survive and make more profit. So it is suit for the material.
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The third one is produce/Service goals. It indicated that providing services of outstanding quality. That means give the splendid service to client and satisfy their needs.
In the case, the airline provide several added value services, for instance, valets to assist the passengers in boarding the plane, delicacies and a series of in-flight services and entertainment. Consumer can enjoy various kinds of high quality service. It can make them authentic feel like that customer is god. This is consistent with the standpoint above.
The last one is secondary goals that points out social responsibility and inward investment which related to environment and social factors etc.
In this case, Scotia Airways used to target at UK domestic market but now flies to some of famous business centre of Europe and connect them to the main cities of Scotland. Their inward investment has made an effort on increasing the air route and it is a social responsibility that they have made a contribution to complete the transportation network. Besides, with the expansion of the scale of the enterprise, it pushes the development of relevant industries.
② Objectives can divide into four parts
Typical objectives include growth maximization, sales policy, social obligations and inward investment policy.
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Growth maximization means to increase their market coverage that means expand the scope of their market.
Scotia Airways urge to mark its international market share, by introducing flights to major European tourist destinations, as well as expanding to major business centers in Eastern Europe and the Middle and Far East. It is be widely known by major Europeans that they introduce their flight to them. With more and more people know about their flight, customer’s needs will increase thus it can pull the scale of the enterprise growth. So they will establish more flies to increase their market coverage.
Sales policy refers to sell to anyone who is credit worthy.
The airline has some especial aircraft which the management team considers that will enables to satisfy the business needs and challenges of the market. According to different client, they separate the customer into different levels. They provide different service to them to meet their satisfaction, and to maximize the profit.
Social obligations indicated that providing work for the local economy.
The airline presently employs 80 staff across all departments which alleviate employment pressure and stimulate economic growth.
Inward investment policy means employing the services of all the local firms.
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The development of local subsidiaries will save cost and it is to the benefit of the understanding by local people.
③ Policy contains 3 parts.
Health, safety and well-being policy
Scotia Airways has built many airlines across Europe, so it set up a huge transportation connection. Besides, it has a reputation for its strict adherence to the UK civil aviation standards which ensure the safety of airlines.
Equal opportunities policy
Scotia Airways has an increasing presence in Glasgow, Edinburgh and Aberdeen. The job opportunity for every applicant is equivalent, no matter where they are from and how the status is. Every applicant has chance to be hired.
Inward investment policy
This policy pushes the development of aviation and some other relevant industries such as catering industry and realty business. With the development of the series enterprises, it provides more job opportunities to domestic around the airport.
In conclusion, goals are macroscopic and it is not particular. Objectives are more specific than goals and identify the specific path to be taken in order to
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achieve goals. Policies provide a framework of rules or guidance within
management and staff can make decisions. They are causal relationships that go forward one by one and interactional.
My advise to the management is to clear and definite the goals, then strictly perform objectives according to the right policy which has already formulate. So it will lead the team more efficiency.
2. Explain the main principles of Open Systems Theory with reference to Scotia Airways.
The Open System Theory includes three parts: inputs, process and outputs.
Input contain: qualified staff, managers, raw, materials, finance, premises, client orders and equipment. The Scotia Airways employs executives and managers in marketing, finance, HR and flight operations with operational and administrative staff within each department. That means high quality managers and staff can make efficiency decision that brings a lot of profit to the company. The airlines built wide bodied aircraft and would not offer economy class travel. That indicated they need more international flights to make the profit maximize. Scotia Airways offer full business class services, but at prices that are equivalent to the economy class of its competitors. With the finance support, the business can go smoothly. The airport is the most important premises of an airline, thus the expansion is base on it. Comparing with the service of other enterprises, Scotia Airways offers high quality services and aim at satisfy customers’ needs. So it is
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an advance which other company do not have.
Process include: organization of project liaison with clients, admin support sales.
Scotia Airways regarded as a family-style business and has established a range of suppliers and clients that are seen as the extended family. So client will have a good relationship with the company, thus it can make more profit.
Outputs include: service delivery, designs, orders, trained staff, satisfied clients.
Scotia Airways offer some special services to meet customer’s needs, such as delicious meals and unparalleled services. Through the training of the staff, the satisfaction of clients will be achieved.
External include: economic conditions, social trends, legislative requirements, technological advancement. If the economic conditions goes bad, passenger flow volume will decrease. The government loosen the control to licensing of airline provision will probably stimulate the process of this industry. A fleet of five aircraft which has taken into use may enable to satisfy the needs of the special groups of people to enlarge the profit.
3. Identify the main differences between the formal and informal organization within Scotia Airways.
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The elements of a formal organization include structure, goals, objective, policies and mission statement. A formal organization is one that has defined reporting structure and written procedures providing formal support to the structure covering rules for behavior and discipline. For example, Scotia Airway is a private and formal organization. Basically, a formal organization has an objective and a defined reporting structure which an informal organization doesn’t have. An informal organization only contains communication and social networks. For instance, family-style business obviously is not a strict pattern to do business, so it is informal organization. An Informal organization has no formal purpose but will meet social needs of members and no formal structure, rules and control.
4. Describe four primary stakeholders of Scotia Airways and explain their interests in, and influence on, the organization.
Stakeholders are divided into many groups according to their different profit and influence on the organization.
Firstly, in Scotia Airway, the investors are stakeholders, as they have the profitability of the organization, strategic, tactical direction and market share of the organization. Also, they received dividends.
Secondly, the EU and UK government relax the control over the licensing of airline provision. The government can influence the development of an enterprise. Government needs compliance with the health and safety regulations and laws, adherence to employment regulation and law, VTA compliance, interest in tax
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returns, thus it affect the strategies that an organization will make.
Thirdly, Scotia Airway’s current 80 employees recruited are also stakeholders since they are concerning about the extent of job security, work conditions, the awarding of salaries and remuneration terms and availability of promotion opportunities. Beside, employees can affect the quality of services.
Finally, local community near the airport can be seen as another stakeholder. The expansion of the company may influence a lot, for example, the noise that is produced by everyday’s flight. Local communities are aimed at protecting environment and offering organization protection. So they are interested in pollution levels and availability of jobs.
5. Identify an effective control strategy that the management of Scotia Airways could successfully implement, and justify its suitability.
The management of Scotia Airways could control through recruitment and training. The expansion of the company causes the increase of the amount of employees. It used to exist 80 staff across all departments, but now the company needs new-blood to renew. The company can decide who would be recruited and provide trainees with their professional training courses. In this way, the company can train the special talents as a support of the operation for the company, and optimize the whole staff quality, so that the company can develop itself consistently.
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Book citation:
SCOTISH QUALIFICATION AUTHORITY (2004), Managing People and Organisatinon, Third edition of the first printed in July 2009, first published by
CMEPH
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