Analysis of cultural, ethical and CSR implications of the planned organizational change
Complete an essay propose and evaluate different strategic options for addressing HR issues in your
scenario organisation, including the cultural, ethical and CSR issues identified in your Week 9 assignment
(NOTE, week 9 assignment is attached in the attachment files below). Add further detail about your
organisation and the scenario if needed.
In completing your assignment, consider the following questions:
�What measures or tools might you use to better understand the issues you identified previously and
their impact on the organisation and its staff?
�What HR strategies, practices or systems might you implement or enhance to address the identified
issues? Why would you choose these options and not others?
�With whom would you need to work or collaborate in order to implement these strategies?
�Might the strategies you are proposing create any new issues or problems, and how might you mitigate
those?
�How would you know if your decisions had the desired effect? What kinds of measures or metrics might
you use to assess your impact on the organisation?
Introduction
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When an organization does not change it dies. Since this is the case it is a poor
organization that does not make every effort to manage the change there-of. HRM covers the
various aspects and practices that will inevitably bedevil organizations as it seeks to manage
change successfully. When planning or pondering over the possibility of altering any aspect of
Corporate Social Responsibility, culture or ethics, it is imperative to consider all aspects. This
paper will use Etihad Company as a case study to show the various factors and their implications
on planned change as a result of acquiring Jet Airways of India. The airline will enhance its
local and regional business.
Scenario
Etihad is a national airline for the United Arab Emirates operating out of Abu Dhabi.
The company recently acquired a majority shareholding in Jet airways of India. This acquisition
fits seamlessly with Etihad ‘string-of-pearls’ global strategy that seeks to make Abu Dhabi a
critical hub. Founded in 2003, Etihad has grown both organically and by acquisition and
developed a formidable global alliance. Etihad’s business model revolves around an expansive
web of bilateral agreements building on the reality that airline hubs bring economic prosperity.
The airline employs over 20,000 employees and has over 105 aircrafts that fly to over 110
destinations around the world. Founded in 2003, Etihad has grown steadily to earn its status.
Where other companies have flown for decades or even generations and have mature networks,
large fleets and global presence, Etihad has to achieve scale if it is to compete effectively. As a
result Etihad has adopted a business model that is grounded on organic expansion, code share
partnerships, minority investments in other airlines and deep commercial agreement. The airline
is committed to honoring the laws, cultures and customs of all the nations in which it operates.
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Cultural issues
When any organization sets out on the path to restructure, it must do so while considering
the cultural aspects that would affects its operations (Church, 2014). As a concept, culture
covers ideologies and /or beliefs that an individual or group of individual behold. Given they are
mostly acquired not inherent; each individual will interpret their value individually. India has a
very strong culture and thus Etihad will have to ensure it does not clash with the organizational
culture (Black, 2003).
In India, despite having English as a primary language, Etihad will have to grapple with
Hindu and its many dialects. It also has to face national culture in the form of national values
and taxes and other legal regulations among others (Parker, 2000). At Jet Airways, the local
employees should greatly assist in ensuring seamless operations. The national values will also
differ between United Arab Emirates and India.
Etihad as with other airlines and organizations in general, they will have their own
culture – the Etihad way. This will vary from one company to another and from one industry to
another. Thus it will be wise that any organization getting to a new market take time to
understand the new culture to ensure they deliver quality on services and products. Just like the
owners of a culture, that of the organization will be based on ownership, the organizational
structure, technology and critical business incidence among many others.
Given that Etihad will have to face a number of cultural factors like time management
challenges, value and norms, dressing code among others, it must adopt its operations to project
a the needs of the customer. Amalgamating the two cultures will ultimately require one to be
assimilated. Etihad will thus need to retrain the new staff in the new culture. With this, Etihad
will be equipping them with the requisite skills to professionally execute their duties as required
by operations demand.
Ethical issues
For any business, ethics is an aspect that is intertwined with its governance. Those
businesses that have strong governance – ethics, have exhibited strength in operations and
stability during tribulations. No organization can operate without an ethical code of conduct. It
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might not be universally acceptable but it must exist to guide the organization. From research,
adoption of ethical practice has made organizations easily embrace and engage in healthy
competition (Papa, et al., 2008). Etihad had to deal with ethical issues on the Jet transaction. Jet
Airways was hemorrhaging cash so badly that analysts did not give it much hope. This situation
had persisted for some time. However, to Etihad with its deep pockets, an aggressive expansion
strategy and an opportunity to gain entry to the highly lucrative and potentially large Indian local
market, Jet airways offered all this solutions in one package. This transaction fitted very well
with Etihad’s expansion strategy of turning Abu Dhabi into a business hub.
Organizations do also have to deal with ethical issues revolving around working
conditions. Different jurisdictions have different interpretations with respect to salaries, working
hours and working conditions (Vanhala & Ahteela 2011). Many organizations have been caught
in the trap of expending all its resources to maximize profits without taking care of the very
resources that are the factors of production. Within the organizational system, loopholes may
exist that undermine ethics through practices like favoritisms during employment and corruption
to win tenders and contracts.
CSR Issues
As organizations have grown and transcended political boundaries, they have become
global citizens. With citizenship comes responsibility. Organizations have thus chosen to
exercise responsibility through corporate social responsibility. Here, organizations ensure the
communities they operate in also benefit from its activities (Owazuaka & Obinna 2014). With
responsible citizenship, organization embrace safe and clean environment as a core goal.
Overall, all organizations must be sensitive to all their stakeholders who are affected by their
operations (Labbai 2007).
In working closely with the community, Etihad should be able to support the local
communities by supporting activities that offer them opportunities at work. This does not
necessarily be at Etihad – given its specialized nature of operations, but also from enterprises that
rely on the industry. CSR should never be seen as the company trying to bribe the stakeholders
or the stakeholders take it as a right. As with every individual, doing good is a personal decision.
The level of good one does is personal. When one feels as if they are being pushed to do good,
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the satisfaction derived from this activity – and which motivates and perpetuates the activity, it
lost.
HR Implication
In any organization it is the duty of human resource to search, identify, hire and retain the
right talent and systems to make its operations as smooth and profitable as possible. When
initiating change, Human Resource Management (HRM) have and do play a critical function.
The HRM guarantee the strategies adopted have the best interest of the organization at heart
(Bloom, Genakos, Sadun & Van Reenen 2012).
As a whole, cultural, ethical and corporate social responsibility must be carefully
considered when undertaking any kind or form or change in an organization. This is because
they affect the HR functions and the very staff who are to be managed and to do the managing,
as to contribute to the organizations success and achievement of its goals and objectives. The
HR could use efficiency and smooth transition as factors that could improve this overall. When
recruiting staff, it must be done and seen to be done freely and above board. This way the
organization gains from stakeholder loyalty.
Etihad in acquiring Jet will be achieving more integrated diversity in its workforce. In
addition to retaining the best talent, it must be able to articulate the organizational vision and
mission in addition to delivering on its best practice. While remuneration must be
commensurate, when coupled with good working conditions, it offers employees ideal condition
to productivity. To customer, the atmosphere created is one that makes them want to experience
it over and over again. As a whole, Etihad stands to gain stakeholder approval and good will
even as it builds a very positive image by participating in CSR.
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Reference,
Angus-Leppan T, Metcalf, L, & Benn, S 2010, ‘Leadership styles and CSR practice: an
examination of sense making, institutional drivers and CSR leadership’, Journal of
Business Ethics, vol. 93 no. 2, pp. 189-213.
Black, R 2003, Organizational Culture: Creating the Influence Needed for Strategic Success,
London UK
Bloom, N, Genakos, C, Sadun, R, & Van Reenen, J 2012, ‘ Management Practices Across Firms
and Countries’, Academy of Management Perspectives, Vol. 26 no. 1, pp. 12-33.
Church, N 2014, ‘ Impact of culture on retail industry compliance’, Journal of Business & Retail
Management Research, Vol. 9 no. 1, pp. 89-97.
