Leadership Management

This report analyzes the leadership style of Christopher Luxon at Air New Zealand, focusing on his democratic and visionary leadership styles. It also examines the influence of CSR, ethics, stakeholders, and goals on his leadership. The report discusses situational factors and the use of leader power, as well as approaches to leadership in diverse cultural contexts.

Running head: LEADERSHIP MANAGEMENT
Leadership Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light on the overall analysis of the leadership style which has been
focused on by Christopher Luxon in managing the different activities of the Air New Zealand
in a positive manner. Furthermore, the different kinds of difficulties along with other aspects
such as managing the efficiency and cultural diversity are being managed in a positive
manner. The comparison with the Hofstede’s framework has been done that has helped in
improving the overall effectiveness of the company in a positive manner.

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Table of Contents
1. Context...................................................................................................................................3
1.1 Introduction of CEO Christopher Luxon of Air New Zealand........................................3
1.2 Overview of Air New Zealand.........................................................................................3
2. Styles of Leadership...............................................................................................................3
2.1 Description of Two Dominant Styles of Leadership of Christopher Luxon....................3
2.2 Analysis of Relationship between Leadership Style and Level of Leadership of
Christopher Luxon.................................................................................................................4
2.3 Analysis of Relationship Between Leadership Style to Air New Zealand Organization 5
3. Influence of CSR, Ethics and Stakeholders and Goals on Leadership..................................6
3.1 Discussion of Corporate Social Responsibility Ideals of Air New Zealand and Impact
of CSR Ideals on Leadership of Christopher Luxon..............................................................6
3.2 Analysis of CSR Initiatives of Air New Zealand and Relation with CSR Ideals............6
3.3 Identification and Description of Organizational Stakeholders and their Goals and
Responsibility of Christopher Luxon to Enable Stakeholders to Reach Goals......................7
3.4 Identification of Two Ethical Issues and Impact of Issues on Leadership.......................8
3.5 Identification of Two Social Responsibility Issues in Society and Impact on Leadership
of Christopher Luxon.............................................................................................................8
4. Situational Factors..................................................................................................................9
4.1 The size of the organisation.............................................................................................9
4.2 The structure of the organisation......................................................................................9
4.3 The stages in the business life cycle..............................................................................10

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5. Use of Leader Power............................................................................................................10
5.1 Analysis of One Type of Power Possessed by Christopher Luxon in Air New Zealand
..............................................................................................................................................10
5.2 Relationship Between Power and Leadership Level of Christopher Luxon..................10
5.3 Relationship Between Power and Air New Zealand......................................................11
6. Approaches to Leadership in Diverse Cultural Contexts.....................................................11
6.1 Analysis of Organizational Culture Type Manifested in Air New Zealand...................11
6.2 Approaches of Christopher Luxon to leadership within Organizational Culture and
Effectiveness of Approaches................................................................................................11
6.3 Analysis of Cultural Diversity Ethnicities.....................................................................11
6.4 Relationship of Diversity to Hofstede’s Framework.....................................................12
6.5 Approaches of Christopher Luxon in Managing Cultural Diversity and Effectiveness of
Approaches...........................................................................................................................13
References................................................................................................................................14

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1. Context
1.1 Introduction of CEO Christopher Luxon of Air New Zealand
Christopher Luxon has been appointed as the Chief Executive Officer of Air New
Zealand in the year 2013 and under the leadership approach followed by him, the company
has been able to deliver the record profits, high scores on satisfaction of customers along with
high levels of engagement between the different staffs. Furthermore, CEO Christopher Luxon
followed the transformational approach to leadership which helped in improving the overall
aspect of the company positively and he is in the Pinnacle level of leadership as he had high
degree of skills along with natural leadership ability.
1.2 Overview of Air New Zealand
Air New Zealand Limited is flag carrier airline which is based in New Zealand,
Auckland, wherein the airlines operate scheduled passengers’ flights to more than twenty
domestics along with thirty-one international destinations in more than 19 countries in Pacific
Rim along with United Kingdom (AirNewZealand.com, 2019). The company was
incorporated in the year 1965 and the key people involved in the company is CEO
Christopher Luxon. The number of employees working in the company includes 10527 and
the revenue earned by the company is NZ$5,231 million till the year 2016. The company is
operating under the travel and leisure industry and it has earned a huge profit is NZ$463
million till the year 2016.

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2. Styles of Leadership
2.1 Description of Two Dominant Styles of Leadership of Christopher Luxon
The two major styles of leadership which is being followed by Christopher Luxon
includes the following:
Democratic Leadership Style- It is the first and foremost style which is being
followed by Christopher Luxon in managing the different activities at the company. In the
respective style of leadership, the subordinates are involved in the process of decision-
making. The respective style of leadership is centered with the different subordinates and
there is inclusion of delegation of the different tasks (Yukl et al., 2013). For instance- In case
of Christopher Luxon, he tried to involve the different members or the subordinates in the
process of decision-making, wherein the main aspect followed by him was he looked after
welfare of staffs and staffs looked after the clients which affected overall efficiency
positively (The West.com.au, 2019).
Visionary and Inspirational Leadership Style- On the other hand, the other style of
leadership which is being followed by Christopher Luxon is visionary aspect in which it is
inclusive of leaders who recognize the steps, processes along with methods of leadership
which can be obtained with as well as through people. For instance- The vision is the main
aspect which is being followed by Christopher Luxon as it has helped him in achieving the
different goals such as for him, innovation is the key element as inspirational CEO has been
looking for discerning critics such as passengers along with advice on innovations on
products of airline (Sosik & Jung 2018).

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2.2 Analysis of Relationship between Leadership Style and Level of Leadership of
Christopher Luxon
As commented earlier, the democratic style of leadership followed by Christopher
Luxon is considered at the high level as he prefers to motivate the different subordinates
effectively (Wilson, 2013). The main aim of Christopher Luxon has been to motivate his
staffs as it helped the company in achieving the desired goals and satisfy the needs of the
different clients as well. The leadership philosophy of “I look after my staff; my staff look
after my passengers and the passengers look after shareholders” has been steering the
airlines to yet another bumper year and it helped in positive change of airlines.
On the other hand, the visionary and inspirational style of leadership followed by
Christopher Luxon is related in a medium manner to the level of leadership. As per the
different evidences, it has been found that Christopher Luxon has been more inclined towards
the job satisfaction of the employees as he felt that high job satisfaction will result in
customer satisfaction. In case of Air New Zealand, it has been ranked as number one in terms
of high satisfaction ratings for employees and customers (Puddington, 2014).
2.3 Analysis of Relationship Between Leadership Style to Air New Zealand
Organization
The democratic leadership style is one of the most preferred and appropriate aspects
in case of Air New Zealand as in the airlines company, the leaders need to motivate the
employees who are the major asset of the company and as there are so many competitors in
the market, motivation and encouragement are the key factors that is provided to employees
to attract more employees and make them stay for longer span of time (NZHerald.co.nz,
2019).

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On the other hand, the visionary and inspirational style of leadership is the other
appropriate aspect which should be followed by Air New Zealand Company as in the airlines
sector, there is huge level of competition in market and due to which proper inspiration and
motivation is the key element in case of employees. Moreover, the customers are required to
be provided with proper and excellent services which will be attracting large number of
premium customers in future (NZHerald.co.nz, 2019).
3. Influence of CSR, Ethics and Stakeholders and Goals on Leadership
3.1 Discussion of Corporate Social Responsibility Ideals of Air New Zealand and Impact
of CSR Ideals on Leadership of Christopher Luxon
The corporate social responsibility ideals of Air New Zealand include the following:
 Ethical Practices of Business- It is the first aspect of Air New Zealand wherein the
providing fair labor practices are provided to employees and suppliers. The equal pay
for work along with living wage compensations are provided which has been helpful
for terming the organization as ethical. Moreover, the ethical practices related to labor
include proper usage of products that are certified as meeting of the fair-trade related
standards (Parris & Peachey, 2013). Environment Related Sustainability- It is the other aspect of CSR of Air New
Zealand wherein the company is trying to limit the pollution along with reducing
greenhouse gases. Air New Zealand company has tried to provide the different kinds
of awareness related to environment related issues which helps in benefitting the
society as well (Nicholson & Carroll, 2013).
The major impact of the respective ideals of CSR practices has created a positive
image on the leader of Air New Zealand as the main motive of Christopher Luxon is to run

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the business through managing the welfare of the society and the customers which will be
attract large number of customers in a sustainable manner.
3.2 Analysis of CSR Initiatives of Air New Zealand and Relation with CSR Ideals
The wellbeing of the workers and suppliers working with Air New Zealand is the
first and foremost initiative of Air New Zealand and it is related to ethical practices of the
business. The equal pay provided to the employees working in the company is the most
appropriate aspect which can be followed by the Air New Zealand and it satisfies the
different requirements of the clients in a proper manner as well. For instance- Air New
Zealand use the fair-trade products such as aircraft products which helps in improving their
presence in the market McCleskey (McCleskey, 2014).
On the other hand, the environmental safety related practices are the other aspect
which is being followed by the Air New Zealand Company as there are different kinds of
practices such as planting trees along with promoting and development of boards who will be
taking care of the different needs of the environment and it will be helpful for the safety of
the entire environment properly (Taylor, Cornelius & Colvin, 2014).
3.3 Identification and Description of Organizational Stakeholders and their Goals and
Responsibility of Christopher Luxon to Enable Stakeholders to Reach Goals
The two major stakeholders of the company include employees and the customers
wherein the major goal of the employees is to setting and achieving goals through proper
rewards and accomplishments. The employee welfare and satisfaction are the other goals
which should be managed by the company. On the other hand, the goals of the customers of
Air New Zealand includes the safety and welfare of the customers which is the major
priority of the customers (Leitch, McMullan & Harrison, 2013).

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In addition, Christopher Luxon can achieve the goals of the employees and customers
through analyzing the different feedbacks and reviews as it will be beneficial in managing the
overall success of the company (Iqbal, Anwar & Haider, 2015). The company and CEO of
Air New Zealand Christopher Luxon can provide rewards to the clients which will help them
in managing the demands and satisfying them to achieve goals. Similarly, Christopher Luxon
can offer discounts and offers to customers which will be helpful for the company to satisfy
the clients.
3.4 Identification of Two Ethical Issues and Impact of Issues on Leadership
The two major ethical issues which are faced by the company includes perils of the
favoritism of the employees along with privacy concerns. In the present scenario, there are
different kinds of technology along with privacy concerns that affects the overall
effectiveness of the company negatively. Moreover, there can be favoritism of the employees
that is affecting the efficiency of the organizational capabilities and it is illegal in nature as
well (Hendriks & Karsten, 2014).
Due to the favoritism of the employees in the organization, it can affect the leadership
approach of Christopher Luxon in a negative manner as due to the bas approach of
leadership, it has affected the overall growth of the company in comparison to the other
competitors which are present in the market. It is unreasonable for the leader to compare the
different works of employees which can affect the approach of leadership negatively (Harris,
2013). In addition, technology and privacy related concerns are the other aspect which can
create negative impact on leadership of Christopher Luxon as it may be stated that due to the
lack of focus on the different aspects of the company, it can affect the overall efficiency of
the company negatively and it will affect the organization negatively as well.

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3.5 Identification of Two Social Responsibility Issues in Society and Impact on
Leadership of Christopher Luxon
The different social responsibility issues in the society includes the following:
Firstly, there is lack of the consensus amongst the different local agencies relating to
the CSR related projects, and due to the same, it results in duplication of the activities in
areas related to intervention. Due to the respective issue of CSR, it can be identified that
leadership of the company is not efficient enough to handle such factors. The Air New
Zealand Company has not taken initiatives to make the society focused towards achieving the
desired goals (Elkington et al., 2017).
Secondly, there is lack of interest among the local communities in participating as
well as contributing to the CSR related activities of the companies. In such scenario,
Christopher Luxon did not include the training and development programs for the society
which affects the growth of company negatively.
4. Situational Factors
4.1 The size of the organisation
The size of the organization will be affecting the leadership aspect of Christopher
Luxon as there will be increased in different kinds of responsibilities for managing the
different departments appropriately (Day, 2014). When there is hierarchy in the organization,
there can be situations when it is not maintained, and due to the same, there can be issues and
the entire blame will be on the leaders as well. In many instances, the leader needs to
showcase their expertise as to manage the work performance of the employees effectively.

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4.2 The structure of the organisation
Furthermore, the structure of organization can affect the leadership approach of
Christopher Luxon as in Air New Zealand, for instance- there is hierarchical structure which
will be including less and restricted information and it will be difficult for Christopher Luxon
in making the decisions effectively. However, through hierarchical structure, there will be
control orientation and it will be helpful for Christopher Luxon in creating strong brand
image of company (Day, 2014).
4.3 The stages in the business life cycle
As per the stages in the business lifecycle, such as launch, growth, maturity along
with decline, in the four respective stages, proper leadership of Christopher Luxon is
necessary and essential to be followed as it will be making the company effective for the
improving the growth-related opportunities. Due to the lack of proper leadership, there can be
decline in the productivity of Air New Zealand, however with constant innovative procedures
followed by Christopher Luxon, the company has grown and it has reached to greater heights
(Day, 2014).
5. Use of Leader Power
5.1 Analysis of One Type of Power Possessed by Christopher Luxon in Air New Zealand
The Expert Power is the most effective power which is possessed by Christopher
Luxon in Air New Zealand which is closely related to informational power wherein he has
knowledge on the different kinds of projects and like an excellent leader, Christopher Luxon
has been able to set up the framework for the success. As per the expert power, he tries to
provide efficiency among team members to help them in achieving the goals successfully.

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5.2 Relationship Between Power and Leadership Level of Christopher Luxon
As per the expert power is concerned of Christopher Luxon, it can be identified and
analyzed that the level of leadership of Christopher Luxon is high as he tries to influence the
behavior of employees due to the knowledge as well as skills related to the work being
performed. As Christopher Luxon holds the expert power, he tries to respect the different
decisions made by the different employees and it has helped him in building self-confidence
in the workplace (Cheema, Akram & Javed, 2015).
5.3 Relationship Between Power and Air New Zealand
In the case of Air New Zealand, it can be identified that expert power is the most
advantageous aspect for the success of the company which will be helpful in improving the
operations in a successful manner. With the help of expert power, the organization can create
a strong reputation as well as power base upon which it is built. Through the inclusion of
holding the expert power, it will be helpful in building trust as well as respect of others within
the company.
6. Approaches to Leadership in Diverse Cultural Contexts
6.1 Analysis of Organizational Culture Type Manifested in Air New Zealand
In Air New Zealand, the Hierarchical culture is followed which is termed as
formalized along with structured work environment. Christopher Luxon is effective for
functioning smoothly and it is the most crucial aspect which is being followed and the value
drivers include effectiveness, timeliness along with uniformity (Cheema, Akram & Javed,
2015).

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6.2 Approaches of Christopher Luxon to leadership within Organizational Culture and
Effectiveness of Approaches
The functional approach of leadership is followed by Christopher Luxon and is
connected with Hierarchical culture of organization. As per the functional approach, it can be
identified that innovation is the first instance which is being maintained and followed in Air
New Zealand and due to the same, the company has achieved greater heights as well.
6.3 Analysis of Cultural Diversity Ethnicities
The diverse ethnicities which are followed in the organization Air New Zealand
includes values and attitudes along with personality traits. Under the leadership of
Christopher Luxon, there has been innovation which has helped in creating diversity in the
different teams and it has helped in making the diverse workforce in an appropriate manner.
Christopher Luxon tried to manage diversity by uniting employees through values and
attitudes and managing diversity through taking into consideration which will be helpful for
the company in achieving the goals successfully. There is equality among employees and it
has helped the company in achieving the goals.
6.4 Relationship of Diversity to Hofstede’s Framework
Particulars Power
Distance
Masculinity/Femininity Uncertainty
Avoidance
Collectivism/Individualism
Application
to Air New
Zealand
relating to
Low as all
the
members
are
provided
There is low
masculinity wherein
the organization is
relationship oriented
and the main focus is
It is low as
there is
open ended
learning
along with
There is low individualism
wherein wisdom is
essential and people work
for intrinsic rewards as

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with equal
opportunity
to provide
their
viewpoints
in the work
on quality of life decision
making
aspects and
there is
openness to
change
well
6.5 Approaches of Christopher Luxon in Managing Cultural Diversity and Effectiveness
of Approaches
Christopher Luxon can manage the cultural diversity and effectiveness through
promoting the appreciation of the cultural differences along with learning culture of clients as
to manage the cultural diversity. Proper creation of written policies is the first and foremost
approach to promote diversity in workplace and there will be inclusion of anti-discrimination
laws along with compensation related policies (Cheema, Akram & Javed, 2015).
Furthermore, providing sensitivity training is the second aspect which can be
followed by Christopher Luxon as to create better workplace culture and understand the
viewpoints of different employees positively. The respective training can be helpful in
valuing the different viewpoints which are different and understanding the words is the other
aspect which can be followed.
Lastly, imposing zero tolerance policy is the other aspect which can be followed by
Air New Zealand wherein there will be proper training provided to employees as to deal with
such issues of cultural diversity (Beerbohm, 2015).

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From the different approaches of cultural diversity management, it can be identified
the effectiveness of Christopher Luxon is positive as through imposing such approaches,
there will be positive work culture that will be supporting the different viewpoints in an
efficient manner.

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