Organizational Development Report 2022

ORGANIZATIONAL DEVELOPMENT
STUDENT DETAILS
STUDENT DETAIL

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Contents
Introduction................................................................................................................................3
Problem and challenges that are currently facing by the company............................................3
SWOT analysis...........................................................................................................................6
Strength..................................................................................................................................6
Weakness................................................................................................................................6
Opportunity............................................................................................................................7
Threat:....................................................................................................................................7
Recommendations......................................................................................................................8
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
For this report, the selected organization is Qantas Airways. Qantas Airways Limited is the
banner bearer of Australia and its biggest carrier by armada size, universal flights and
worldwide goals. It is the third most seasoned aircraft on the planet, after KLM and Avianca,
having been established in November 1920; it started universal traveler flights in May 1935
(Qantas.com, 2020). On 9th March, Chairman. Richard Goyder had announced to cut almost a
quarter of all flights due to the corona effects. At the initial level of flight cancellation,
Qantas Airways first urge to cancel flights from Australia to the UK and the USA. Apart
from this, due to corona epidemic, the company has canceled all the flights booking till 31st
July 2020 (Bbc.com, 2020). In this report, there will be a discussion about the problems and
challenges that are facing by the association due to the corona epidemic. Apart from this, the
SWOT analysis of the company will also be done by considering the current condition of the
market. In the end, recommendations will also be marked.
Problems and challenges that are putting adverse impact on the company
Due to the corona epidemic, major parts of the world are going through the phrase of
lockdown. Even in Australia, the federal government has announced the lockdown in the
whole country with specific rules and regulations. In this phrase, majorities of the industries
including the transport industry, tourism industry, entertainment industry, etc. are adversely
impacted. Due to the global phrase of lockdown, the company also had to close their
operations. As of now, it is officially announced that all the flights are canceled till 31st July,
2020 (Bbc.com, 2020). Not only the business of Qantas Airways, the carrier business
regularly winds up on the corporate bleeding edge when worldwide catastrophe strikes. The
crown infection emergency denotes another perilous minute for aircraft, which areas of now
confronting multi-billion-dollar income misfortunes as the sickness hits request. Worldwide

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aircraft remain to lose $113 billion in deals if the crown infection keeps on spreading, as per
the International Air Transport Association. (Coulter and Farrer, 2020) The misfortunes
would be like those accomplished by the flying business during the worldwide monetary
emergency of 2008, IATA cautioned as it drastically expanded its gauge of the harm brought
about by the flare-up. It said carriers could lose 19% of their business if the infection isn't
contained soon (Amornpipat, 2019).
Below are the specific challenges that Qantas Airways is facing because of the global
lockdown:
 Providing regular remuneration to 30,179 employees (including employees working
at a domestic and global level):
Due to the corona epidemic, all the operations of the company are completely closed.
Thus, the management is not getting any inflow of cash. However, there are around
30,179 employees of the company including global and domestic operations.
Currently, all the operations of the company are closed and it is resultant in
restricting cash inflow. Thus, it is creating an immense challenge for the management
to offer remuneration to their employees. It is estimating that the management will
offer remuneration to their staff members until the lockdown. This is adversely
impacting their retain earning funds (Duddu, 2020).
 Still, the company has to bear fixed cost expenses, only variable cost expenses are
minimized:
Even in this situation, the company is bearing all the fixed cost expenses. It can be
analysed that only the variable cost expenses of the company are minimized but the
management is currently bearing all the fixed cost expenses (Li, He and Wu, 2016).
As, it is not possible that the management denies bearing their fixed expenses as well
because it is sure that after the global lockdown period all the operations of the

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company will resume to the normal state. However, until the period of global
lockdown, it becomes extremely important for the company to bear all the expenses
related to the fixed cost such as minimum electricity bill of the premises, hanger
rental, rent of the locations, maintenance of the airplanes, paying remunerations to
employees, taxes and annual registration fees, etc (Heikkurinen, Young and Morgan,
2019).
 This global epidemic is putting an adverse effect on the company's retain earning
funds:
The cash inflow is restricted because the operations of the company are closed. This
Global epidemic diseases it resultant in restricting cash inflow because all the flights
operations are closed. Thus, customers are not allowed to book tickets, even for
future dates. For example: the booking of flight tickets is closed until the lock down
i.e 31st July 2020. So, all the booking is closed till this date but the company is not
accepting online booking in advance for after 31st July 2020 also because of the
government orders. Thus, it is restricting the cash inflow of the company which is
creating various challenges for the management.
Still, the company is paying all their fixed cost expenses and they are providing
remuneration to their employees. In this context, their retain earning funds are
adversely impacted. However, the management is expecting that the federal
government will bring any relief policy for them so that they can continue their
operations (Price, 2017). Until then the company is handling all the fixed cost
expenses from their retain earning funds but the major challenge is that if the
lockdown gets continue then it will create difficulties for the management to offer
remuneration and to bear even fixed cost expenses (Li, He and Wu, 2016). Not only
this, if employees of the company will not get timely remunerations then it will put

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an adverse effect on their lifestyle as well. Thus, it is extremely important that the
federal government should bring the relief fund as early as possible and all the
operations should be back to the normal in an effective and efficient way (Paynter, et.
al., 2020).
SWOT analysis
Strength
 Steady and consistent growth:
Qantas Airline is in the business of international flights since May 1935. Since that period of
time, the company is experiencing consistent growth. So, it can be said that consistent growth
in the market created the immense goodwill of the company and their goodwill can be
calculated as their strength (Srivastav, et. al., 2019).
 Massive workforce:
According to the data of 2019, there are over 30,000 employees of the company. Their
massive workforce is known for adopting innovative methods and professional tactics to
conduct operations in an effective and efficient way (Amornpipat, 2019).
Weakness
 Union problems:
When the group of employees forms the union then the management faces immense problems
in negotiating with union members. Currently, in this corona epidemic, if management stops
offering remuneration to their employees then there are chances that employees can again
form a union (Tahan, et. al., 2017).
 Company is putting their hope on the funds of the federal government in this
epidemic:

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The management is putting their hope on the federal government and central bank that they
will surely bring relief funds for them in order to protect the airline industry. As, putting
hopes on them is the major weakness of the management.
Opportunity
 Global crude prices are slashed by 30%:
In this corona epidemic, global crude prices are slashed by 30%. Thus, this is the greatest
opportunity for the company to make a reserve of the oil at this reduced price. About a month
ago, Saudi country started a price war with Russia which resultant in the reduction of oil
prices by 30%. This brings an immense opportunity for the company (Bbc.com, 2020).
 Business-class traveling facilities:
Qantas Airlines also offers business class facilities for its travelers. Offering business-class
facilities allows the company to charge higher prices from the travelers as compare to those
travelers who opt for economy class (Teker, Teker and Güner, 2016).
Threat:
 COVID-19 epidemic:
Currently, the corona epidemic is creating a major threat because now the management has to
close down its operations for a while. This threat is putting a major adverse effect on its
operations.
 Restricting cash inflow:
Closing operations is dealing in restricting cash inflow which is creating a major threat for
the company. Even at this time, the company has to bear all their fixed cost expenses in order
to maintain their processes (Qantas.com, 2020).

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Recommendations
In this situation, it is suggested that management should work on the aspects of business
intervention strategies. As, the adoption of these strategies will enable the management to
work on the different approaches to create change among their organizational structure.
Among the 4 business intervention strategies, the management should opt for organizational
development (OD) interventions to deal with this problem. The reason behind suggesting this
specific intervention is that the problem of the corona epidemic has to put a negative impact
on the management. The COVID-19 epidemic problem is the major problem, thus the
management has to again set up their internal as well as external operations in order to
establish their operations again in an effective and efficient way (Qantas.com, 2020).
As organizational development interventions are designed to help the organization in order to
outperform going challenges by building an efficient team and by taking effective strategic
decisions. Strategic planning is an important component of OD intervention. By adopting the
norms of OD intervention, first, the management should focus on minimizing the outflow of
cash Currently, focusing on cash inflow is not appropriate because cash inflow is only
possible after all the operations such as flight bookings, traveling, etc. come back to the
normal routine. So, first, the management should focus on minimizing cash outflow.
Currently, the company’s outflow of cash is going into two major expenses that are providing
remuneration to their employees and handling fixed cost. The management should make a
polite request to their employees to 20% reduce the salary for the period of time. The art of
management considers employees as the asset of the company and the employees are also
aware that the corona epidemic is putting an adverse effect on the company's operations. In
this way, it can be expected that employees will understand management’s situation (Ghosh,
2020).

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Secondly, the management should take their competitor into considerations. After that Qantas
Airlines with all its major competitors should approach the federal government for issuing the
relief fund for the airline industry. As, the airline industry is among those industries that got
majorly affected by the operations of the COVID-19. It can be expected that the federal
government and the central bank will surely bring relief funds for the airline industry and the
management can utilize this fund for their further operations in an effective and efficient way.
However, it is not appropriate to entirely department of the government’s relief fund. The
management should primarily focus on their retain earnings and they should focus on the
measures to control the cash outflow.
Thirdly, in the period of lockdown, the company should also focus on next-generation
technological aspects such as artificial intelligence and machine learning. As, the majority of
the staff members including the research and development team are under the lockdown and
the company is also offering them regular remuneration. Now, the company has the chance to
guide its research and development team members to work on the long-term project with the
purpose to install the AI and Machine learning process (Duddu, 2020). Concentrating on AI
and ML will also resultant in enhancing the customer experience in the effective and efficient
way. However, it can be analysed that the company requires huge funds for research and
development of AI and ML but in the long run, the management can experience the reduction
in the additional cost because of the AI and ML process.
Conclusion
In this study, it is concluded the corona epidemic is adversely affecting the operations of the
company at both levels, domestic and international level. This corona outbreak created major
challenges for the company such as offering remuneration to their employees even when they

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are not getting any cash-in-flow, bearing all the expenses arises from the fixed cost such as
hanger rental, maintenance of aircraft, etc. Apart from this, situational analysis of the
company is also conducted in this report. From the situational analysis, it is concluded that
global crude oil prices are reduced because of the price war between Saudi and Russia. This
brings massive opportunity for the management as now they will get crude oil at the reduced
prices. Apart from this, in the recommendation section, it is concluded that the company
should adopt the norms of organizational development interventions. Through the OD
intervention, the management can follow various measures to control the external adverse
impact. Moreover, it is also recommended that the management should work on the next
generation technology such as Artificial Intelligence and Machine Learning.

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References
Amornpipat, I., 2019. The Relationship Between Positive Psychological Capital and Job
Burnout: A Study of Thai Airways International Flight Attendants. Psychology, 9(5),
pp.189-196.
Bbc.com. (2020) Coronavirus: Airlines cancel thousands of flights. [Online] Available at:
https://www.bbc.com/news/business-51818492 [Accessed on: 9th April, 2020]
Becker-Ritterspach, F., Saka-Helmhout, A., Lange, K. and Geppert, M., 2019. Exploring the
interaction of firm-level change and national institutional environments in shaping
employment and union relations: a comparative case study of four European
airlines. The International Journal of Human Resource Management, 30(2), pp.276-
305.
Coulter, M. and Farrer, M. (2020) Coronavirus: airlines face meltdown as global travel bans
multiply. [Online] Available at:
https://www.theguardian.com/world/2020/mar/15/coronavirus-airlines-face-
meltdown-as-global-travel-bans-multiply [Accessed on: 9th April, 2020]
Duddu. P. (2020) Coronavirus outbreak: safety measures at major international airports.
[Online] Available at: https://www.airport-technology.com/features/coronavirus-
measures-world-airports/ [Accessed on: 9th April, 2020]
Ghosh, I. (2020) This chart shows how airlines are being grounded by COVID-19. [Online]
Available at: https://www.weforum.org/agenda/2020/03/this-chart-shows-how-
airlines-are-being-grounded-by-covid-19/ [Accessed on: 9th April, 2020]

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Heikkurinen, P., Young, C.W. and Morgan, E., 2019. Business for sustainable change:
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Li, Q., He, Q.M. and Wu, X., 2016. Timing order fulfillment of capital goods under a
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Paynter, J., Luskin-Saxby, S., Keen, D., Fordyce, K., Frost, G., Imms, C., Miller, S.,
Sutherland, R., Trembath, D., Tucker, M. and Ecker, U., 2020. Brief Report:
Perceived Evidence and Use of Autism Intervention Strategies in Early Intervention
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Price, M.J., 2017. Strategies for Mitigating Low-Cost Airlines' Passenger Complaints.
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Qantas.com. (2020) Coronavirus (COVID-19) travel updates. [Online] Available at:
https://www.qantas.com/in/en/travel-info/travel-updates/coronavirus.html [Accessed
on: 9th April, 2020].
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Teker, S., Teker, D. and Güner, A., 2016. Financial performance of top 20 airlines. Procedía-
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