SalamAir Case Study: Action Research, Change Management, and HRM

This case study examines SalamAir, a low-cost carrier from Oman, utilizing action research to analyze its competitive environment and organizational structure. Employing Porter's Five Forces, the analysis identifies brand rivalry, supplier and buyer power, and threats from new entrants and substitutes. The study explores the impact of SalamAir's hierarchical organizational structure and culture on its employees, considering functions, geography, and services. Lewin's Change Management Model is suggested to improve the airline's performance, with a focus on managing the impact of change on staff. The report concludes with recommendations for Human Resource Management to enhance service quality and maintain a strong brand image. Desklib provides access to this case study along with numerous other solved assignments and study tools for students.

Running head: ACTION RESEARCH USING CASE STUDY APPROACH: SALAMAIR
SALAMAIR: CASE STUDY
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1ACTION RESEARCH USING CASE STUDY APPROACH: SALAMAIR
Executive Summary
The aim of the report is to prepare a case study of the SalamAir airline company from Oman.
The case study begins with the critical analysis of the changing external environment wherein
SalamAir is located. The Porter five forces are utilized for analyzing the competitive
environment of the company. This is followed by the analysis of the organizational culture
and structure. The Model of Change Management implemented in this case study is the
Lewin’s Change Management Model. The impact of this change on the staff is further
explained in details. The case study is concluded with some recommendations for the Human
Resource Management of SalamAir.

2ACTION RESEARCH USING CASE STUDY APPROACH: SALAMAIR
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................4
Critical Analysis of the Changing External Environment......................................................4
Porter’s Five Forces...........................................................................................................5
Organizational Structure and Culture.....................................................................................6
Impact of Organizational Structure....................................................................................6
Impact of Organizational Culture.......................................................................................9
Models of Change Management..........................................................................................11
Impact of Change upon Staff...............................................................................................15
Change Management Process..............................................................................................18
Recommendations for Human Resource Management 440.................................................21
Conclusion................................................................................................................................23
References................................................................................................................................24

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Introduction
SalamAir, established in 2016, is a relatively new low cost carrier from Oman
(Salamair.com 2019). The Muscat National Development and Investment Company
(ASAAS) is the owner of the company, with Khalid Al Yahmadi as the chairman and
Mohammed Ahmed as the CEO. SalamAir operates from the Muscat International Airport
and has its headquarters in Muscat, Oman (Salamair.com 2019). The report is primarily a
case study of SalamAir, identifying the changing external competitive environment of the
company through the Porter’s five forces. The analysis of the organizational structure and
culture of SalamAir gathers some insight on the influence of the same on the company’s
employees. Since the company is relatively new, the changes that can be incorporated for the
better performance of the airlines are identified through the models of change management.
This change is further analyzed by understanding the manners in which this change can
influence the staff of the company. The report is concluded with academic reflection on the
change process along with certain recommendation for the Human Resource Management of
SalamAir.
The orientation of the Sultanate of Oman for diversification of the economy had
shifted the concentration of the sultanate from gas and oil sector to preserve the sustainable
growth of the economy and hence the ASAAS was established in 2014 (Madbouly 2017).
The SalamAir is a recent investment of the ASAAS, with its fleet diligently selected to permit
effective utilization of fuel as well as provide congenial experience for the passengers. The
SalamAir’s first flight test occurred on 18th November 2016 with its first commercial flight
on 30th January 2017 from Salalah to Muscat (Planespotters.net 2017). The brand identity of
the organization reflects the pacifying blue seascapes and exuberant green landscapes of

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Oman. The airlines is embedded with the deep rooted Omani culture and is the first low cost
airlines of Oman (Salamair.com 2019).
Being a new enterprise, the SalamAir encounters several difficulties in spite of which
it maintains its steady hold in the market. The customer reviews regarding the airlines in
varied online avenues does not promote a successful brand image. There are issues regarding
the airline services, incompetent staff, poor customer service, several technical faults and
such other complaints from the customers who have availed the services of the company due
to the low cost fares (Tripadvisor.in 2019). In order to keep the prices at all-time low the
company has sacrificed in areas where quality and services have failed to satisfy the
customers, thereby gaining a degrading name for the company. The report consists of certain
change model suggestions that can assist in improving the service quality and performance of
the company. It also states how the changes might influence the structure and the employees
of the company and thereby provides suggestions to manage such situations efficiently. The
CEO of the company is hopeful that the time for the company is right to expand and in order
to ensure this process, it is necessary for the company to maintain its brand name in the
global market.
Discussion
Critical Analysis of the Changing External Environment
The Middle East aviation industry and its market are rapidly growing with regards to
the international traffic. The upcoming two decades portrays a promising rise in the number
of air travel in the above mentioned region. This is beneficial indication for the SalamAir
since it has Saudi Arabia as the second terminus for international migrants and the sixth
terminus for international students and the Dubai Airport being the third largest hub globally
(ATAG 2014). The Middle East also incorporates several other airlines such as Flydubai,

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Bahrain Air, Jazeera Airways, Nas Air, Sama, Air Arabia and such others that pose as major
competition to the newly formed SalamAir. Although the countries in the Middle East seem
to be rapidly growing in the international traffic, the prime challenge for the countries remain
with the increasing flight delays. In accordance with the National Center of Statistics and
Information, the tourism industry contributed in 2.8% growth in the GDP of Oman in 2015
and nearly 2.5 million international tourists came to the sultanate in 2016 (Through Sea and
Air only). Hence, there are expectations that there shall be a 7% increase in the number of
international tourists within a span of 10 years (Ncsi.gov.com 2019).
Porter’s Five Forces
A framework tool utilized for the analysis of any organization’s competitive
environment, the Porter’s Five Forces have been implemented in identifying the changing
competitive environment of the SalamAir (Porter 2008).
 Brand Rivalry: The fact that the SalamAir is a newly accommodated entry into the
Airline industry of Oman, it has a number of well established competitors in the
market such as the Ethiad Airways, Air Arabia, Rotana Jet, Emirates, Oman Air,
FlyDubai, Qatar Airways and so on. To gain an edge over such competitors, the
SalamAir can incorporate better service and even ecofriendly changes within the
organizational structure (Wu, Cheng and Ai 2018). The rivalry among these brands
are high and thus creates a healthy situation for the company to develop in a better
and improved manner.
 Bargaining Powers of the Suppliers: The major suppliers in the airline industry are
Airbus and Boeing (Netessine, Kleindorfer and Wind 2009). While the inputs in this
industry are standardized, the airline organizations differ in amenities that they offer
to the customers. Since the manufacturing process of the planes are huge investments
and are occupied by the aforementioned organizations, the SalamAir has no other

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option than to purchase from these two companies. This makes the bargaining power
of the suppliers more in comparison to the chosen organization and with the
availability of two prime suppliers, the options for switching are also limited for the
SalamAir.
 Bargaining Powers of the Buyers: With the availability of the varied types of
airline organizations, the buyers of the services provided by these companies have the
power to switch from one company to another. It must be noted that every airline has
its own niche and while some keep their focus on cost, others focus on amenities
provided to customers The SalamAir being a new organization has entered the
market with the motive of providing cheap air fares so as to attract more customers
(Vallero 2018). This strategy has been successful however, accompanies certain
service related issues. The bargaining power of the buyers in case of the SalamAir is
low since the company already has reduced fixed prices for every type of flight fares.
 Threat of New Entrants: The threat of new entrants is of significance to the
SalamAir since the organization itself is a new entry into the airline industry and
already has a list of existing competitors. However, it must be mentioned that the
entry into the airline industry is not easily accessible, due to the low switching costs
and the large investments that are required, without any promising returns for the first
few years. These facets make the threat of new entrants in the industry to be low,
thereby enhancing the market position of SalamAir to a considerable amount.
 Threat of Substitutes: There are a varied number of substitutes available in the
airline industry. The customers can easily switch their choices in accordance with the
services provided by the varied airline companies in accordance to the price range.
The SalamAir has an edge in this aspect as it the first low cost carrier in Oman and
hence is an option for people who prefer cost to amenities. However, in case of

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amenities, the other competitors of the chosen organization are far ahead. Hence, the
threat of substitutes for the company varies with the customer preferences.
Organizational Structure and Culture
Impact of Organizational Structure
The varied changes implemented and strategized by organizations, enhances their
profitability and yield, which inevitably comprises of certain influences on the organizational
culture and structure (Olson, Slater and Hult 2005). The structure of SalamAir is hierarchical
in nature wherein the employees and staffs belonging to the organization are segregated into
distinct teams and groups that overlook varied operations of different fields of the
organization. The hierarchical structure in an organization is usually observed to be effective
and efficient for the management and allocation of the resources and responsibilities within
the organizational sectors. The method of division of responsibilities among varied teams of
employees, assists the organization in order to track the functions, processes and operations
as well as evaluate the performance levels of each division (Shafritz and Jang 2015). The
varied facets on whose basis the several teams within the organizations that are modelled in a
hierarchical structure is segregated can be identified as:
 Functions: The organizational scope of the SalamAir consists of varied functions,
which requires to be effectively executed so as to ensure smooth operation and
thereby a stability in the yields of the organization. Such other functions that an
airline company like the SalamAir includes are customer service, ticketing facilities,
hospitality services, financial management, addressing the grievances, management of
online portals. The employees and staff of the organization are segregated in
accordance with their skills for performing the aforementioned functions within the
organization.

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 Geography: It must be mentioned that SalamAir has plans for expansions and is
currently approaching varied allocation of resources in respect to the plan
(Salamair.com 2019). In order to expand the scope of the varied operations of the
organization, the company must engage in the division of the duties within the
structure of the organization. The geographical facets needs to be analyzed well in this
matter in the cases of resource allocation that shall suffice the expansion plans of the
organization.
 Services: Being a new entrant in the airline industry, SalamAir offers the varied
primary services such as hospitality and catering. The company also provides online
solutions through its official website, which contains information regarding the flight
fares, timings, services like check in facilities, refunds, exchange, upgradation of
baggage and seats, and such others. All these varied services provided by the
organization, needs proper allocation of efficient staff for meeting up to the
requirements of the customers. The organizational structure of SalamAir takes into
consideration all the varied services provided by the organization in order to ensure
high net yield and customer satisfaction. It must be noted that the sector that requires
most amount of attention for improvement is this particular service sector within the
structure of SalamAir.
The Chief Executing Officer who is responsible for the varied sectors of the
organization and the employee’s performance heads the company, SalamAir. There are a
number of supervisors who function under the Chief Executing Officer of the organization.
The Chief Financial Officer of the firm, who reports directly to the Chief Executing Officer,
focuses on the financial actions, budgeting and planning for future expansions of the
company. Further, the Chief Operating Officer who oversees the administrative and
operational activities and functions of the firm on a daily basis and directly reports it to the

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Chief Executing Officer. There are segregated teams that take care of the service sectors and
sales sectors of the organization. In addition to these posts and departments, there are
segments within the structure of the firm to manage the commercial activities and branding of
SalamAir such as the Engineering departments, Business and corporate development
departments, Media and communication teams and lastly the Human Resource Management.
The influence of the hierarchical structure of the SalamAir on the performance of the
varied employees and teams of the organization reflect that the managerial decisions
commanded from the leaders and managers of the organization keeps the execution of the
company processes smooth and effective (Donaldson 2001). The segmentation of skilled staff
in specific teams makes it easier for the organization to locate and analyze the issues within
the organization. Furthermore, the efficient performance of the Human Resource
Management ensures the well being of the employees, addressing their grievances and
resolving them as per requirements. The overall segmentation of the duties and the
responsibilities of the varied sectors of the SalamAir, in accordance with the hierarchical
structure, the organization further encourages and motivates their staff in order to
amalgamate the individual and collective interests of both the employees and the firm and
align them with the objectives and prospectives of SalamAir.
Impact of Organizational Culture
In order to determine the level of involvement of the individuals and employees of an
organization, the organizational culture renders a pivotal role. The conception of a culture
within an organization implies within its scope the beliefs, assumptions and values that are
typical to the organization as well as pertains to the ways of interaction between the varied
sectors of the organization, its staff, employees, supervisors and such other facets
(Linnenluecke & Griffiths 2010). The social and psychological environment of the firm is

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directly determinable in accordance with the culture that is pertained within the
organizational scope.
Pertaining to this attribute, it can be inferred that the SalamAir incorporates within its
scope the qualities of respect, trust and belief among the employees and staff of the
organization. The transparency maintained within an organization keeps the integrity of the
varied segments intact. Thus, it can be assumed that the work culture at SalamAir is
employee centered as far as the goals of the company is attained.
SalamAir has incorporated a clan culture that is operative within the parameters of the
organization. The clan culture is a type of culture wherein the integration of differing facets
of an organization is focused on, so as to adhere to a stability within the company (Slater,
Olson and Finnegan 2011). The value of collaboration is highlighted in this type of culture
and the same is reflected by the employees of the company, as they think themselves to be
intrinsically an active attribute of the company. The managerial style influences the
productivity of the employees and the same is reflected in case of SalamAir, wherein the
employees follow the lead of the supervisors and through the hierarchical structure maintains
harmony within the company operations. The leadership style followed by the SalamAir
supervisors have had huge impacts on the performance of the employees and this is visible
through the swift growth of the company in the global market.
The influence of the clan culture over the SalamAir can be determined by the
significance given to such values as high commitment and loyalty by the employees of the
company. The spirit of collaboration within the several distinct sectors of the organization is
hugely significant to the complete development and progress of the organization. As seen
from the performance levels of the company, SalamAir is currently encountering certain
difficulties in meeting up to the expectations of the customers in terms of the service

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provided by the company. Since the company is still relatively new in the market, the brand
image of the company and its reputation can easily be stained. The collaboration of the varied
managerial leaders and the employees of the organization can together insist on improving
the condition of the organization and thereby create for themselves a secure and work
friendly environment within the threshold of SalamAir. Therefore, the significance of the
culture in which the employees of the organization work is a matter of pivotal concern
(Alvesson 2012). The culture should also promote healthy and transparent relationships
between the hierarchical structure of the organization.
Models of Change Management
Change Management is an essential aspect, which provides a headway for progress of
any organization, since change is inevitable and ,must be accepted for the prupose fo
complete development. It is a collective term comprising of all approaches implemented to
support and prepare to the employees and teams of an organization, for certain specific or
general changes within the structure and culture of the organization (Todnem 2005). There
are several models for the change management to be implemented within the organization
such as The Lewin’s Change Management Model, Kotter’s Change Management theory,
Kubler-Ross Five Stage Model, McKinsey 7 S Model and such others (Hayes 2018). The
Change Model appropriate for the chosen organization for implementing changes in the
service process of the organization and thereby to enhance the sales and brand image of
SalamAir, is the Lewin’s Change Management Model.
Kurt Lewin and his Three-step Change Model had provided the foundations for the
Change Management theories that are still implemented in the modern times (Wirth 2004).
The Model comprises of simple terms and methods that shall ensure the proper execution of
the required changes in an organization. The Model incorporates three steps for the change to
occur and be accustomed to the organization, namely Freeze, Change and Unfreeze. Lewin’s