Module: Organisation Design & Organisational Development
Understand, analyse and
critically evaluate the processes and systems that need to be in place to
maintain such structures and relationships and evaluation of same.
Understand, analyse and
critically evaluate possible change management strategies and activities
through the application of organisation development strategies, which might
support organisation design and realignment outcomes.
Understand, analyse and
critically evaluate organisation culture, norms and behaviours.
Formed in October 2013 as a
result of a number of mergers, Travel Group (TG) is a public limited
company. TG’s head office is in Germany and The Group employs 56,000
people worldwide. Providing services to more than 40 million customers from
around the world, TG’s key operational areas are 1600 travel agencies, 7
airlines, 350 hotels and 14 cruise liners. Travel UK is the UK tour operator
subsidiary and airline. Travel UK has the following operational divisions:
Airline, Commercial, Customer Operations and the following business support
departments: Finance, IT, Marketing, Public Relations/Business Change and Human
Resources. Each operational division is clearly defined and has its own
sphere of competence. Each division has a hierarchy that is clearly
defined with operational rules and processes that guide managers in making
objective decisions. Each operational division has its own business
support departments. Following the most recent merger a decision was made
to put in place new organisational structures in recognition of the duplication
that existed in some functions, and where different brands were in place for
travel agencies these have now been rebranded Travel UK. Differences also
exist in terms and conditions of employment and working practices of TG’s
employees depending on which pre-merger company the employees worked for.
Some of these differences can clearly be identified in job descriptions whereas
others exist in agreements that were the result of consultation and negotiation
with trade unions. The trade unions are strong and have high levels of
membership. For example, in the UK department heads have been reluctant
to make changes to cabin crew hours and working practices because of the
underlying threat of strike action. Joint Consultative Committees meet on a
monthly basis and the scope of issues can include almost anything from terms
and conditions of employment to costs and allocation of employees to flying
schedules. This consultative machinery has a significant impact on
Organisational performance is
measured in a number of ways. In addition to the standard financial
measures (such as turnover and profits that are important to all public limited
companies) TG as the parent company has three key non-financial measures.
These are customer satisfaction, employee engagement and sustainability.
In this highly competitive market, customer satisfaction is crucial in ensuring
that customers book future holidays with TG and recommend TG to friends and
family. The second key non-financial measure is engagement. TG believes
that happy and engaged employees will help to achieve sustained competitive
advantage in a fairly turbulent market. The third measure, sustainability
within the travel industry, is seen as crucial. The Global Sustainable Tourism
Council (which establishes and manages global sustainable standards with the
aim of increasing sustainable tourism knowledge and practices among public and
private stakeholders) sets two criteria. Their website states these two
criteria are, ‘…those that relate to destinations and those that relate to tour
operators that provide the guiding principles and minimum requirements that any
tourism business or destination should aspire to reach in order to protect and
sustain the world’s natural and cultural resources, while ensuring tourism
meets its potential as a tool for conservation and poverty alleviation’.
Practical examples of how TG meets these criteria include using e-ticketing,
reducing waste, saving water and reducing carbon emissions.
Sustainability is a key organisational goal and TG aspires to be included on
the Dow Jones Sustainability Index (DJSI) and the FTSE4 Good Sustainability
Index. Having the right organisational culture is viewed as being central
to achieving this goal.
The travel industry has been
affected by a number of different external factors in recent years including:
terrorism affecting flights, airports and resorts; industrial action taken by
baggage handlers and air traffic controllers at various airports in Europe;
volcano ash and extreme weather grounding or rerouting flights; Norovirus on
cruise ships, etc.
Critically analyse TG’s current
organisational structure Evaluate its appropriateness for the future.
Provide a detailed analysis of
external factors currently affecting TG and the impact that these may have on
change and organisational development at TG.
development and design recommendations of how TG can achieve its sustainability
goal. In doing so you should consider the extent to which organisational
culture can be changed and whether a culture change is important in achieving
the sustainability goal. You should use research evidence and your knowledge of
organisational practice to support your recommendations. Consideration should also
be given to possible implementation issues and/or tensions.
All submissions should be added in
the Harvard Referencing Format.