Business environment are impacted due to external environment, one such impact has been caused by COVID 19. COVID 19 is the infectious disease caused by the novel coronavirus (WHO 2020). The lack of data in the pandemic has fractured thinking and optimization which changed the decision making across the organization. The virus and disease were unknown before break out in China (WHO 2020). COVID 19 is declared as pandemic after it affected countries globally (WHO 2020) . The pandemic has affected the airline industry with a blanket travel ban on the air carriers. The situation that has almost crossed 7 months since its early warning signs in December 2019 in China has captivated the world with its reach (The guardian 2020). With no prior and lack of knowledge creates the barrier among the people to predict amid uncertainty. Qantas has its operation across the world and is one of the oldest air carriers in terms of size and capacity (Qantas 2020). The major operational revenue through ticket booking and services had affected the airlines and it had taken steps to curb all its expenses. The brief step than further action taken by the CEO with more than 15000 employees are under scanner and more than 1/5th have been laid off (The guardian, 2020). This essay highlights the impact of the COVID 19 and the uncertainty caused on the company Qantas.
Uncertainty has various form and one has to aware of dichotomy while dealing with uncertainty (Anuradha 2016). Uncertainty can be classified for weak uncertainty and strong uncertainty (Anuradha 2016). Strong uncertainty is when it is not possible to define the problem. COVID 19 has spread across the world and has turned into a pandemic and can be classified as high uncertainty with prediction to future outcome difficult. The absence of a vaccine and the fast spread of the virus has led to the growing concern for countries across the world. Industries have faced tough situations with economic loss and resort to pay cuts, job loss to save themselves from a complete shutdown. The reasoning for the future state is based on probability derived from past experience. The future occurrence is determined through cost efficiency and expenses reduction. The uncertainty is dealt with coping behavior by leadership. Humans deal with adapting and coping with the situation in situation of uncertainty, optimizing is related to coping as a measure (Glaso 2017). Qantas chose to respond by adjusting its business expenses and choose to lay off staff in the uncertainty and blanket travel ban. Optimizing uncertainty is difficult as the future outcome can be decided (Lledo 2017). Optimization did not work in this case and sounds irrational. Uncertainty creates ignorance zone, the coping behavior is based on the narrative of heuristics. Heuristics narrows the ignorance which the company may apply, rule of thumb is part of heuristic (Pol and Reveley 2017). The strong uncertainty the coping behavior is rational and sound judgment is made on the basis of the situation. The reliable inference is essential for coping under strong uncertainty. Increase resilience can defeat hopelessness. Resilience socioeconomic arrangement help is support for social transformation. Taleb (2018) leaders shall expose themselves in the same amount as the amount of risk as they expose the staff. This is a normative claim and shows the notion of leadership. The symmetrical leadership says that leaders are aware of the symmetries in decision making. “The skin in the game” should be adapted as a mark of ethics in leadership. In contemporary times leaders have failed with display of action with positive symmetry (Taleb 2018). People tempt to playout to be a good leader. The absence of any penal risk makes the leader appear good. The staff salary cut down has been different across all levels with top management taking salary cuts and lower management with leave without pay and laid off, furloughed, or months (The guardian 2020). The major reason for estimation of control cannot be determined but the move is in question with ethical issues.
The market uncertainty, suffering and empathy difference is highlighted with a major impact on company revenue. The company and the board on its business plan decided to remove the staff and had taken a salary cut at top management. The job loss cannot be in equal comparison with contract workers or flight ground staff. The income disparity and pay cut vary across the organization shows negative asymmetry. The condition of uncertainty is realized due to the fear of COVID 19 and economic situation that impacts the development plan of the organization and activities at hold until a continuous revenue stream is designed. The impact of the illness and the total death caused across the world has to lead to a sharp decline in travel and an increase in stay at home as a precaution. The cost of fuel and oil price decline has invariably hit the market (The guardian 2020). The demand that has been at the pre-COVID time cannot be at normal season due until there is a vaccine developed for the virus to prevent its flow (The guardian 2020). The COVID 19 pandemic has kept the area under lockdown with loss of revenue. The job cut and pay structure variation did not consummate for long term action as it is to keep the company floated. The annual debt burden has affected all carriers and Qantas has not been alone in it too. The management decision on salary furlough has impacted the major workforce who have suffered from job loss and unable to sustain (The guardian 2020). The management has been powerful with substantial salary difference, the action by Qantas is deemed unfair as there is no equality in suffering. This questions the utilitarian aspect of the same, does the management severance package and taking care is equal to the working and currently employed, which in answer cannot be equal. The initial response by the carrier was to discontinue operations than it has shaped the change in its operative strategy with complete lockdown and no carrier for international flyers (Reuters 2020). The pandemic has forced the virtual dimension and traveling will take more than a year to recover (Australian Aviation 2020). The safety and border opening is to decide the long term fate of Qantas as it moves forward with its domestic flights (Australian Aviation 2020). The employee who had to been lost of pay has remained the same through unsymmetrical suffering. The rich suffer less and the poor suffer more due to wealth distribution. The significance of the power shift has been major in the industrial units. The management thinking and ideology should be consummate to the performance structure and variable thinking. According to Taleb (2010), positive symmetry is marked by the personal hit on sacrifice and the greater good. This is generally shown in benevolent leadership and equality where the person takes a hit for the greater good. The leader opposes to self-protection expose others to harm before themselves. The managerial body frequently takes decisions that affect the organization and does not takes suggestions for the implication.
Qantas has used the rationality of coping behavior for its decision making. The optimizing behavior is the cause for coping behavior as humans seek to deal with changing reality in the case of the pandemic with a natural reaction to save themselves from the economic downturn. Coping behavior is a rational idea of thinking about the future that is unknown for judgment (Glaso 2017). In the case of strong uncertainty, the decisions are based on heuristics. The pandemic has changed the future development when the reasoning has failed for Qantas with pro long virus impact.
Qantas decision making is based on similar progress for design structure and design and obtaining the system modifications and built in the chromic structure for the display. The major influx is dependent on the end structure of the companies in the pandemic affected though uncertainty with high risk on existence. The major influx are created by measuring capacity requirements. Qantas design has been changed with liberal forecasting and task measurement. The organization has shown solidarity but is griped with societal uncertainty and developing the structure for aligning the flying schedule cutting manpower and running the organization on salary cut (Australian Aviation 2020). The countries of operations are majorly Australia and western growing are among the growing economies. Qantas on the basis of above this decision shall set-up design thinking and utilitarian approach. The low-cost set-up is a boost for establishing an office in Australia.The Qantas has survived the recessionary environment of 2008 which shows its dynamic outlay under worsening economic conditions (The guardian 2020).
Qantas is the oldest airline in Australia and was operated by the government previously. The organization since privatization in the year 1995 has changed its structure and setup carrier for the domestic market (Qantas 2020). Qantas is a highly centralized structure and the CEO majorly is involved in responsible for the day to day operations and has authorization power. The matrix structure shows Qantas towards the integration side, the organization's differentiation is highly important as it will help in information and communication clearly. Differentiation in business with sub environment will help the firm to perform well, the matrix system by _shows concern with multiple commands that affects the functionality it will caret greater complexity in structure in a certain situation. Qantas is seen under a pluralistic form of organization with Alan Joyce as CEO being a major decision-maker within the different group composition.
Qantas's top leadership has passed the major risk to there staff. Negative asymmetry is seen here with management benefiting while potential cost down to employees. The ultimate responsibility of a team with good leadership shows taking a personal hit which is rare. Taking a stand for others and keeping them ahead shows a courageous move. Disassociating others from self on the good fortune is related to negative symmetry. Qantas applies bonus for its staff to keep them motivated in pre-COVID time (Qantas 2020). Bad leadership will affect the organization and harm the organization's effectiveness. The selection of a leader who is asymmetrical will harm society at large (Ni 2015). The leadership at Qantas has been bureaucratic using a top-down approach while decision making in the managerial matter and company board decision making. The notion of a leader who sacrifices himself for the benefit of others is part of a positive symmetry cannot hold true for Qantas .Judging leadership on success and failure does not qualify entirely for good leadership and bad leadership. The lack of skin in the game qualifies Qantas leadership to be bad leadership in the prudent ties of the pandemic.
The large organization with less face to face communication and the penalty of shame is less. Qantas CEO felt sad and sympathetic about the situation. Leadership behavior is related to interpersonal norms with uncertain environments focus on more task-oriented interpersonal orientation. The Qantas group has its subsidiary in the airline with its independent flying operations equally impacted by the turbulence due to COVID 19 (Qantas 2020).
COVID 19 has given time to introspect the business environment, structure, and fragility that has impacted business. COVID 19 as Black Swan event has impacted the industry structure with loss mounting from non-operation forcing the world to practice social distancing. The event of 2008 has impacted the financial downturn due to crisis in the USA and the magnitude of the impact will be lasting longer and creates high uncertainty for Qantas to take action other than cost cut and reducing operations. Prospect theory shows that economic agents focus on changing their wealth in decision making under uncertainty. The status quo is compared to an alternative scenario. Qantas group had cut international capacity due to the outbreak of COVID 19 that has impacted flight bookings and airline business world-wide (Australian Aviation 2020) . Organization consideration and change management plan will impact the ethical conduct of the organization with no hierarchal structure towards staff reduction and leadership at large organizations such as Qantas, this can be done through building strong personal networks. Organization furlough and operational cut vary across structure this shows negative symmetry.
The CEO had taken no salary of the year starting March and the board will take 30 percent deduction in fees and group management will take 30 percent pay cut (Australian Aviation 2020). The drop in revenue has led Qantas to cut costs by taking management salary cuts. The normative neoclassical utility stipulates sensitivity towards loss.
Ethical leaders are characterized by caring, honest. and taking fair decisions. Transformational leadership is a leader's avoidance of coercion and influence. The positive end value and concern for the management is missing at Qantas with job cut action taken. Fair treatment of employees and involving them in decision making shows a culture-based dimension that supports the reward system. The action at Qantas is based on the with Alan taking salary cut with management shows the firm's response on consciousness with as a part of ethical leadership construct. The voluntary actions by the firm are less with management discussion on trimming all-expense with unpaid salary and direct job cut. Qantas’s approach is to revive revenue in the long term once the situation normalizes (Australian Aviation 2020). The airline plans to raise funds to accelerate recovery with full recovery in the year 2022 (Reuters 2020).
The leadership dimension is taking the risk for future investment post understanding the numerical prediction. In the scenario of Black Swan, company look for confirmation bias through the historic sequence and try to find the pattern and seek conformance of the link that does not exist (Taleb 2010). The company is using flight flexibility and digital inflight experience to adapt to changes while restoring domestic operations. The operations of the firm through in case of situational antis Qantas have decided to cut 15 percent cut in Asia, and 5 percent plain operations between the areas of Australia and New Zealand (Australian Aviation 2020). The event as far as pandemic has impacted the intitutive judgment capacity due to partial information on the predictiveness of its spread. The impact of COVID 19 has changed the market dynamics and forced firms to innovate to sustain with change innovative more high differentiation to impact the market. The digital impact and technological change through marketing and operations shift the company environment towards less uncertainty as to the growing importance of research and development
Qantas has faced challenges due to COVID 19 and its impact on aviation operation. The organization has taken measures amidst huge uncertainty. The uncertainty will impact the organization. Qantas has taken measures on limited operations with leaders taking action with job cut with the bureaucratic structure adopted by the organization. The power structure is centralized in the organization which impacts its stance that makes predicting future.
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