Change Management in Qantas Airline

This document discusses the history and current position of Qantas Airline, along with an internal and external analysis of the company. It also explores different change management strategies and models that can be implemented in Qantas. The document provides insights into the strengths, weaknesses, opportunities, and threats faced by the company, as well as alternative strategies such as the ADKAR model, Lewin's Change model, and Bridge's Transition Model.

Institutional Affiliation(S)
Organizational learning and change
Change management in Qantas Airline
Student Name
[Date]

P a g e | 1
Contents
Introduction................................................................................................................................2
Internal and external analysis of Qantas....................................................................................3
Summary.................................................................................................................................5
Literature review........................................................................................................................6
Alternative possible strategies....................................................................................................8
ADKAR model.......................................................................................................................8
Lewin’s Change model...........................................................................................................9
Bridge’s Transition Model...................................................................................................11
Recommended strategy............................................................................................................12
Kotter’s 8-Step Change Model.............................................................................................12
Required resources for implementing change..........................................................................14
Conclusion................................................................................................................................15
References................................................................................................................................16

P a g e | 2
Introduction
The history of Qantas can be linked with the development of Australian Civil
aviation. This company began with fragile biplanes that carried very few people in open
cockpits and have progressed to introduce new Airbus A380s, carrying some 450 passengers
around the world in a day. However, the story of Qantas success can be given to human
endeavours and not just machines. Many determined individuals overcame tough situations to
establish Qantas operations smoothly in Queensland and northern Territory Ariel Services
Ltd. (QANTAS) since 1920. Now, the company have grown into one of the largest airline
companies in Australia and is supported by its loyal and committed customers. At present,
Qantas also records a position of second oldest airline company in the world who have built a
reputation for excellent service, engineering and maintenance, operational reliability and
customer service. The main business of the company is to transport people from one
destination to the other using two complimentary brands, Jetstar and Qantas. The company
also operates in other subsidiary businesses that includes airlines and airline specialists’
markets like Q Catering. More than 30,000 people get employment opportunity with Qantas
out of which around 93% of them are based in Australia (Qantas, 2018). Qantas Domestic
airlines offers premium full-time service that carried over 22 million people in around 4,300
flights per week in 2018 around Australian suburban and rural areas. International premium
service of Qantas airline provides transportation between major countries like South and
North America, Asia, Europe, Africa and many more using the brand name, Qantas. In 2018,
the company carried over 8 million passengers in around 680 flights per week. Other than
transporting people, Qantas operates in freight industry also and operates its largest freight
service in Australia from 14 dedicated freighters that carry their supplements in key
International and Domestic routes (Qantas Data Book , 2018).

P a g e | 3
Internal and external analysis of Qantas
Qantas internal and external analysis can be made using SWOT analysis tool that is
used extensively by businesses while making strategic planning to ascertain changes required
in its management. It can be used for building a competitive position in Qantas in accordance
with system approach where the organisation interacts within their own environment as well
as with outside world along with creating a positive and ethical organisational behaviour in
its workplace (Gurel & Tat, 2017).
Figure: SWOT analysis framework (CFI Education Inc., 2019)
Strengths: Organisation strengths comprises of those competencies that plays active role
while achieving organisational objectives. Steady growth and consistent improvement seen in
airline operations have made Qantas achieve success since 1920 that have also gained
company a strong market reputation. This has been made possible due to strong managerial
capabilities seen in its management. Qantas is famous for its cheap and excellent service
providing that have turned many customers loyalty in favour of the firm. Alongside, the
company shows utmost care for including corporate governance and business ethics to ensure

P a g e | 4
every operation and policies enhances stakeholders’ value and protects the sustainability
factors of the company (Qantas Data Book , 2018).
Weaknesses: Organisational weaknesses are those activities which can potentially lead the
firm to ineffectiveness and inefficiencies that requires to be improved or changed completely.
In Qantas, the major weaknesses can be seen in its human resource management that have
made the firm face unionised strikes and lockouts many times. To face market competition,
the company adopted various cost-cutting strategies including reductions made in staff
salaries that created resentment among Qantas people and thus they made an approach
towards Transport Workers Union and other associations to revolt against new systems in the
company (O’Connor, 2014). Other weakness identified in Qantas management includes
tremendous pressure from rivalry companies that made the firm reduce its costs to attract
more customers following cost-leadership strategy (O'Sullivan, 2016). Qantas airlines have
been seen making many errors recently in its airplanes and staffing that caused accidents
while travelling from one place to the other, causing risks to people lives even (The
Guardian, 2015).
Opportunities: For organisation, opportunities are a kind of situation or time that
environment presents to make organisational goals achievable in improved manner. For a
reputed and larger firm like Qantas, globalisation is one biggest opportunity that can help the
firm in reducing the identified weakness. Since the firm struggle in managing market
competition, it can make strategic alliances with foreign brands in other countries alongside
expanding its businesses in developing and underdeveloped nations that are usually ignored
by many airline companies. Increase seen in hospitality and tourism industry can also cater
business growth in Qantas through which the company can consider making investments in
hotels especially in tourist destinations, thereby making it as a complimentary product for the
airline company (Qantas, 2018).

P a g e | 5
Threats: Organisational threats are those elements which creates difficulties for the firm in
reaching organisational goals. Such situations usually arise because of distant changes or
environmental shifts that prevents organisations in maintaining its existence and thus are
referred as unfavourable conditions. For Qantas, first threat is intense market competition
from the brands like British Airways, Ryanair, Lufthansa and Air France that have made
Qantas reduce its prices considerably to remain present in Australian market. Second threat
for Qantas is subject to long-term and short-term climatic shifts and changes in fuel prices
that creates difficulties while making physical transitions (Hatch, 2016).
Summary
The above analysis made of Qantas airlines internal and external environment reveals
that the recent issues faced by the company majorly involved human resources function that
have even caused the firm suffer financially (O'Sullivan, 2016). Though the company website
asserts that it provides meaningful jobs with superior benefits and competitive salary, they
seem to have failed in providing such promises. Henceforth, Qantas faced many unions
strikes and lockouts that impacted their international recognition and market share reduction.
Additionally, the firm also ascertains providing sufficient training and education programs for
their staff, however, many accidents seen in its airlines shows inefficiency among Qantas
employees that requires the firm enable appropriate change management strategy to improve
its internal staffing and human resource management.
Literature review
Organisational change can be referred to as a process in which changes takes place in
terms of employee’s involvement, market it serves, products or services offered or the
manner it interacts with the customers. These are few basic concerns among various others

P a g e | 6
that have made many authors and organisational behaviour study consider theoretical
frameworks and models for implementing change strategies to improve organisational
conditions (Njuguna & A, 2016, p. 11). Accordingly, change management theorists stated
that in change management theories, power must be avoided and softer attitude must be
included in firm’s management, leadership, communication strategy, empowerment and
governance to motivate individuals and maximise organisational performance during change
interventions. Even, Kucukozkan (2015) claims that “change speed became out of control in
modern societies and this brought many important consequences as adaptation problems” (p.
84). However, Mogogole & Jokonya (2018) argues that during the times of change, firm’s
must focus more upon its resources, processes, structure, tools, policies, measurements and
change procedures. Other drivers that are involved during change management includes
external forces like increased market competition, economic changes, international and
governmental regulations etc. Internal forces driving change in companies includes growth in
organisation, administrative processes, people management issues, economic and social
restructuring, etc.
Organisational change continuously goes hand-in-hand with moral and ethical issues
and therefore, leadership and change managers inevitably encounter dilemmas and ethical
issues during entire change process. Such dilemmas not only concern with organisation
benefits but also impacts on individual motivation and infringement of employee autonomy,
self-esteem and privacy. However, change is still required and remains inevitable part in
today’s organisation that made many authors and researchers develop various change models
and frameworks (Veer, 2013). According to Al-Haddad & Kotnour (2015), many authors
developed change management strategies in different way among which first one was
developed by Kurt Lewin in around 1940s. Lewin suggested that organisational change
process begins with unfreezing stage in which organisations start recognising organisational

P a g e | 7
issues and creates implementation of desired changes after selecting change leaders and ends
after refreezing stage when the desired objectives behind change has been achieved by the
organisation. Lewin believed in involvement of dialogues for avoiding unethical situations
and that change procedure requires active contribution of change leaders while
comprehending organisation and change related issues (Hussain, et al., 2018, p. 123).
Another significant change model was developed by Kotter who proposed that “transforming
organizations must create an artificial void for establishing a sense of urgency for a change to
be accepted and driven by the people” (Ramasamy & Ganesan, 2017, p. 184). Kotter
designed a change framework that consisted of eight critical steps and promoted his method
as all-inclusive which means, this method can potentially assist organisations in avoiding
failures while implementing change alongside increasing the chances of its success through
establishment of motivated workforce.
Among new change management theories, ADKAR model has gained much
significance that states that change management is goal-oriented approach that allows change
management groups to look upon their activities to provide firm’s with specific results.
ADKAR model was initially used by organisations as a tool for demonstrating change
management activities such as training to employees and communication to accomplish
desired objectives (Goyal & Patwardhan, 2018, p. 298). According to Leybourne (2016), to
cope with and manage change, 21st century organisation’s faces many turbulent and uncertain
environments including natural resistance and anger within employees. It therefore, calls for a
more emotionally equipped model that can create positive impact on employees like making
them understand the necessities behind change, engaging them in change interventions, and
coping the change environments that can benefit the firms while undergoing the evolution
and adjustment stage. The two theories, Kubler-Ross Grief cycle and Bridges work on
managing transition are two most under-utilised yet powerful frameworks that believes in

P a g e | 8
assisting employees to cope with transition from one point to the other during change that can
significantly improve entire change transition (Leybourne, 2016, p. 24).
Alternative possible strategies
ADKAR model
Figure: ADKAR Change model (Creasey, n.d.)
Awareness: This stage will involve identification of change requirements in Qantas like
issues in Qantas human resources and finance management. This stage will also stimulate
communication within the firm.
Desire: This stage will develop and facilitate change within Qantas through effective
leadership and guidance along with managing any resistance observed.
Knowledge: In this stage, training and necessary coaching will be provided to Qantas
employees to make them understand the necessities behind change and how to handle them
efficiently.

P a g e | 9
Ability: With time, training and motivation, ability in the organisation’s individuals will be
realised and henceforth, the intended changes can be performed after measuring desired
performance level.
Reinforcement: After the recognition of success in change management plan, corrective
actions may be taken in this stage for avoiding future failures and reinforce the changes to
make them permanent in Qantas (Goyal & Patwardhan, 2018).
Lewin’s Change model
Source: (Mulholland, 2017)
Unfreeze: This stage will make Qantas management and its people realise about the need to
change and how things will be done during change phases. Every step will be analysed like
human resource capabilities, training and development intervention and people performance
metrics etc. By doing such, all the existing biases and key mistakes taking place in Qantas

P a g e | 10
management will be analysed that will give change leaders with specific perspectives about
change needs.
Change implementation: Once all the ground work is been completed, Qantas can move
towards next step in which actual change takes place after realisation of key issues and how
those issues can be dealt with. This stage can involve training and education for improving
human resource and other financial leaders along with introducing staff with new
technologies or knowhow through which their performances can get enhanced and motivated.
At this stage, it is essential that Qantas management makes regular meetings with its staff to
establish a strong relationship with them as previously Qantas employees had shown
resentment towards the company’s management. Performance appraisals and incentives can
also be used to boost employee’s morale during change phase along with reducing resistance
among them, if seen any.
Refreeze: The changes made in Qantas management will either show a positive or a negative
atmosphere within the company. Once it starts showing positivity and that changes
implemented are been successfully deployed according to the feedback received, Qantas can
refreeze the new status quo (Hussain, et al., 2018).

P a g e | 11
Bridge’s Transition Model
Figure: Bridge’s Transition model (Leybourne, 2016)
Ending, losing, letting go: In this initial stage, Qantas employees will be introduced to
change necessities and thereafter they may show resistance to work more or show emotional
discomfort. Some of the emotions that are marked in this stage includes resentment, fear,
sadness and denial to almost disorientation. Here Qantas employee’s resentment can be
lessened if they are made aware that the change interventions are been adopted for their
betterment and to avoid human resources management errors.
Neutral zone: In this stage, companies face various kind of confusion, impatience and
uncertainty. This stage is also regarded as a bridge between old systems and new ones when
individuals are still attached with their old methods but try and adopt new approaches. In this
stage, Qantas employees may feel isolated and de-motivated that can even reflect in the
firm’s productivity as many people, including top executive may experience scepticism and
anxiety while going through neutral stage. Though this stage brings various emotional

P a g e | 12
stresses, Qantas can introduce innovation and renewal policies alongside declaring
performance bonuses to boost its employee’s morale.
New beginning: After passing through neutral stage through guidance and support, this stage
is realised by firms in which energy and acceptance is been realised. At this level, Qantas
people will begin to embrace change after understanding significance behind it. They will
gradually begin to build skills that will be requited for building and reaching new goals and
thereby start experiencing benefits of the change taken place (Leybourne, 2016).
Recommended strategy
Kotter’s 8-Step Change Model
Figure: Kotter’s 8-Step Change Model (Hansen, 2018)
Establishing a sense of urgency: In this stage, Qantas management will communicate with
its employees regarding strategic decisions taken for internal changes and make negotiations
with them. In this stage, Qantas have to implement training and development classes or even
set a new human resources team to improve its people management. The firm’s cost cutting
strategy will also be considered that have impacted company’s market share.

P a g e | 13
Form a power colliding team: In this step, Qantas will select and assemble specialised
teams that can be hired from outside sources like change management agencies or hire
leaders from internal management to provide and support change interventions expertly. This
stage may involve role-modelling, counselling for the employees along with various skill
tests to see which employees are been positioned inappropriately within the firm.
Create a vision: This step requires setting new vision for the firm that will be taken as a lead
while conducting future operations. At this stage, Qantas new vision must be centred around
its employee’s welfare and managing business competition with effective team management
that will involve increase in employee pay, job entitlement and job security to establish a
sense of job satisfaction within them.
Communicating the vision: In this step, the new vision recognised will be communicated
with internal management while conveying overall change strategies and new goals. With
effective communication channels, this stage will provide employees with certain time frames
under which change will take place.
Staff empowerment: To recognise fast success, it is essential that employees are given some
autonomy to perform their role in efficient way. Qantas will also require providing its
employees with empowerment so that all the delegated tasks and responsibilities are worked
upon in superior manner.
Creating short term wins: In this stage, Qantas will require enabling performance appraisals
to motivate employees. The ones who perform in favourable may receive job entitlement or
rewards which may be permanent or temporary that can boost other employees also to work
more.
Consolidating improvements and keep up the change: Once the new systems adopted start
giving positive response, Qantas management can acknowledge that old systems can be

P a g e | 14
discarded completely and replaced by the new ones. New human resource teams can be
introduced in the firm which specialises in maintaining human capital and remuneration
systems after considering Qantas financial capabilities.
Institutionalising firm’s new approaches: This is the final stage of Kotter’s 8-Step change
model in which the form realises new and changed organisational behaviour that matches
with corporate culture. In this step, Qantas will engrave its new mission statement and share
the same with media and external sources that can help the firm regain its lost reputation due
to issues seen in its internal management (Ramasamy & Ganesan, 2017).
Required resources for implementing change
The internal and external analysis of Qantas reveals issues in its internal management
concerning human resource department and incapability to manage intense competition
thereby resulting in adopting unsuitable cost-cutting strategies. To implement change in such
environment, one of the most crucial resource required will be experienced and capable
change leader or agent that can manage change within big companies. For Qantas, external
change agencies will be more suitable that can effectively handle issues arising during change
phases. Second resource required is money or monetary capabilities that can help change
agents in introducing training and development classes required for explaining change
methods to Qantas employees. Thirdly, Qantas will require arranging land space or property
where the training for change management and role modelling can take place. Last and most
significant resource is time that will be required for enabling change process in the firm in
which all the employees and firm executives will be required to invest their valuable time to
accomplish change management (Al-Haddad & Kotnour, 2015).

P a g e | 15
Conclusion
The above report has been prepared after identifying key issues in Qantas internal
management that requires innovative change management under the guidance of strong
leadership and through application of effective change model. After making the internal and
external analyses of Qantas with the help of SWOT analysis framework, this report finds that
Qantas faces many issues especially concerning human resource management that have made
the company face significant loses. In literature, it is been mentioned that human capital is the
firm’s most important asset that requires to be managed effectively and ethically, without
exploiting employees hard-work or contribution made towards the firm. Since Qantas cost
differentiation strategy made the firm reduce its staff salary beyond expectancy, it created
chaos in the organisation like union strikes and lockouts along with quitting of job. After
evaluating and reviewing reasons for change, this report suggests Qantas management to
adopt an appropriate change strategy that can enable establishment of positive workplace
culture within the firm along with effective relationship within teams and leaders during and
after the change process. This report analysed four critical change management model out of
which Kotter’s 8-Step model seems most appropriate for Qantas as this model includes every
necessary element that helps the firms in avoiding tough ethical dilemmas.

P a g e | 16
References
Al-Haddad, S., & Kotnour, T. (2015). "Integrating the organizational change literature: a
model for successful change. Journal of Organizational Change Management, 28(2),
234-262.
CFI Education Inc. (2019). SWOT Analysis: Analyzing a Company's Strengths, Weaknesses,
Opportunities, and Threats. Retrieved from
https://corporatefinanceinstitute.com/resources/knowledge/strategy/swot-analysis/
Creasey, T. (n.d.). Using the ADKAR Model to Build Better Sponsers. Retrieved from
https://blog.prosci.com/using-the-adkar-model-to-build-better-sponsors
Goyal, C., & Patwardhan, M. (2018). Role of change management using ADKAR model: A
study of the gender perspective in a leading bank organisation of India. International
Journal of Human Resources Development and Management, 18(3/4), 297-316.
Gurel, E., & Tat, M. (2017). SWOT Anaysis: A Theoritical Review. The Journal of
International Social Research, 10(51), 994-1006.
Hansen, E. B. (2018). Kotter's 8-Step Change Model as a tool in Program Management.
Retrieved from http://apppm.man.dtu.dk/index.php/Kotter%27s_8-
Step_Change_Model_as_a_tool_in_Program_Management
Hatch, P. (2016). Qantas facing profit drop after shock cuts to capacity. Retrieved from
https://www.afr.com/business/transport/aviation/qantas-facing-profit-drop-after-
shock-cuts-to-capacity-20160418-go9ass
Hussain, S. T., Lei, S., Akram, T., Haider, M. J., Hussain, S. H., & Ali, M. (2018). Kurt
Lewin’s change model: A critical review of the role of leadership and employee

P a g e | 17
involvement in organizational change. Journal of Innovation & Knowledge, 3, 123-
127.
Kucukozkan, Y. (2015). Change Management: A Theoretical Framewor. Journal of Social
and Administrative Sciences, 2(2), 83-92.
Leybourne, S. A. (2016). Emotionally sustainable change: two frameworks to assist with
transition. Inernational Journal of Strategic Change Management, 7(1), 23-42.
Mogogole, K. E., & Jokonya, O. (2018). A Conceptual Framework for Implementing IT
Change Management in Public Sectors. Procedia Computer Science, 138, 835-842.
Mulholland, B. (2017). 8 Critical Change Management Models to Evolve and Survive.
Retrieved from https://www.process.st/change-management-models/
Njuguna, E. N., & A, M. S. (2016). Critical Review of Literature on Change Management on
Employees Performance. International Journal of Research In Social Sciences, 6(3),
9-22.
O’Connor, P. (2014). Australian trade unions move to enforce Qantas layoffs, wage cuts.
Retrieved from https://www.wsws.org/en/articles/2014/03/01/qant-m01.html
O'Sullivan, M. (2016). Qantas keeps focus on costs as competition sparks fall in
international fares. Retrieved from
https://www.smh.com.au/business/companies/qantas-keeps-focus-on-costs-as-
competition-sparks-fall-in-international-fares-20161021-gs7dyy.html
Qantas. (2018). Our Company. Retrieved from
https://www.qantas.com/travel/airlines/company/global/en
Qantas. (2018). Qantas Annual Report: 2018. Retrieved 05 28, 2019, from
https://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1t

P a g e | 18
pgyw/file/annual-reports/2018-Annual-Report-ASX.pdf
Qantas Data Book . (2018). Qantas Data Book . Retrieved from
https://investor.qantas.com/FormBuilder/_Resource/_module/doLLG5ufYkCyEPjF1t
pgyw/file/data-book/2018qantasdatabook.pdf
Ramasamy, R., & Ganesan, R. (2017). A critical analysis of John P. Kotter's change
management framework. Asian Journal of Research in Business Economics and
Management, 7(7), 181-203.
The Guardian. (2015). Qantas flight struggles to take off as child passengers tip balance.
Retrieved from https://www.theguardian.com/world/2014/sep/03/qantas-flight-
struggles-to-take-off-as-child-passengers-tip-balance
Veer, G. t. (2013). Organizational Change and Business Ethics. Retrieved from
https://dspace.ou.nl/bitstream/1820/8233/1/scriptie%20Glenn%20ter%20Veer.pdf