Northwest Airlines Confronts Change

Deregulation of the airline indus filtrate in 1978 change magnitude competition, new travelers needs, problems, strikes, concern ab prohibited the safety of aircraft, oil crisis problem northwestern has a reputation for being very conservative financial manoeuvre and kind rules work very hard. Despite the six years since the starting time of deregulation, Northwest does non yet have the technological capabilities (electronic reservation systems ) or human skills that are more customer-oriented and service.Steve Rothmeier took over the management and committed to his attitude a psychological quite a little Myers to help change the com strength (potentially belligerent environment) in depth Have more balance between mgmt and workers absorb more service-oriented Rothmeiers Story Part 1 The strong point of the friendship is the trust and employee pride The main weakness is meatism (95%). Dr. visions job is to lift supervisors and managers to adopt a more participatory ro le.Ken style (bearded donnish) Is quite different from mgmt in go under (weird) He did non rank high non to be perceived as a member of mgmt but is a general help to communicate, realise the problems of organization and motivation, to pass messages. Northwest is now in a strong position on the domestic market with a strong presence The near difficult thing is to maintain this leading position and that change offer help. A peculiarity of such a large aviation fraternity is that people are still running and it is therefore difficult to bugger off factual messages. Rumors faster than new.Drivers etc are dif ficult to gather to stunher (via cassettes solution does not really work either for channeling rumors). The efforts of Dr. Ken led the company to call on4thin customer service. To deal with all major operators in 1986 announced Rothmeier acquiring Republic Airlines (Minneapolis, stpaul). Kens Story Part 1 Arrived in 1985 in an organization where there is no No marketing (a nd sellers), no HR (relations punitive, negative), no operations (old infrastructure). For him this represents a great challengeI was coming out there to do my magic. We do not give unfortunately not re s sources or view he asks. He gives the first 6 months to build a network of relationships (as a politician) and to gather information on the organization. to build myself into the system, and to build more or less k nowledge and credibitiliy. In me me time, travel and visit for a maximum come upon confidence and Co-operation of employees, he immersed himself as much as possible to sympathise the pr e occupations workers (hostility, emotions, frustrations, difficulties). Finally, it refers to Rothmeier regularly its experience, and interpretation of events it becomes necessary.They establish a person-to-person relationship. Mission Dr Kenanalyze the market-gardening and lead to a culture more oriented to meet customer and people oriented. Build a new spirit, professionalism, p ride in the company. Develop and conduct the training that forget support these goals, and destroy processes that go against the expected change Rothmeier someone has the catch Who Does not care about people. Ken launches campaign with logo pin and People Pride Performance with party and announced in the newsletter.It is also launching a 3-day program for supervisors on communication and behavioral techniques. Managers were able to meet and talk. It also reviews with a mixed group of employees in the form of performance that everyone hates. Despite these small successes, Dr. Ken is frustrated because Steve does not follow at financial support (buying a projector ) and Ken pushed farther and faster than it wants to move. Regarding the merger, Dr. Ken believes that the two companies have not prepared large fusion of cultures (service-oriented old militaristic structure) with team building and planning.The merger took place in October 1986, and 33 500 employees and the company is nowthe5th largest misfortune sector. Rothmeiers Story Part 2 He wants to merge all departments and systems at once. Disaster very fast Flight delays, double-booking of passengers, baggage lost, numerous logistic problems, etc Not to mention the war between the two worlds unionists from each company. employ inequality, cuts in wages etc.. Unions of Corporate Republic Planned program has HAD to try and destroy the service levels of the airline company and bring the knees to icts.They destroy the build of Rothmeier in the press, pretending to be a boss who does not communicate. Thinks Steve at it again, it would impose more control over the merger (procedures, discipline, structure). He original death threats and tone hardens with unions in daily confrontations. A plane crashes in Detroit 156 dead. Kens Story Part 2 We could have avoided many of the problems by unwrap planning Prepare employees how their jobs and responsibilities would change. As he predicted everything that i s finally produced, seen as a prophet and called for advice.He then feels really good. except the company continues to suffer, the operations do not work. He launched the Crew Chief and Supervisor Academies for one workweek seminar for leaders Very positive effect on the leaders, but stage set of Trade Unions (vandalism ). Rothmeiers Story Part 3 Meeting all employees knotty in the incident and sharing his experiences with them and listen. The publics reaction is amazing Complaints about incidents that neer occurred on flights that do not exist. But catharsis effect for employees who understand that change is necessary.Ken then starts to dialogue programs to deal with problems without the intervention of management etc.. corking success. Ken enthusiastic people. The barrier decreases with the unions but Ken gets the status of stave Vice President which provides a barrier with Steve. It loses its power to influence employees, it exceeds the limits of its competency and loses gen eral aid. 1988 is the year of profits, union agreements and reduced passenger complaints. But hostile takeover of Marvin Davis we regret the time wasted in wars union Kens Story Part 3For him, the company has managed the post-crash exemplary manner. This unit employees and accelerated integration. Ken launches On-the-lineFor managers. The program Operation BreakthroughIs his greatest achievement over 9 months. Another merger announced in 1989 and Steve is more occupied with that. This undermines the relationship with Ken and Ken frustrating. Budget Ken is also reduced. With the sale of the company, Ken feels that collaboration ends. According to him, Northwest has never been sufficient resources to carry out the change. Report KenTo achieve integration it takes 3 things Indoctrination Reduce the anxiousness of change, take care of personal and professional needs, identify themselves with the company and get to carry out his work. Should be informed about the position, benefits, p rivileges, new rules of night club etc.. Socialization Symbols info continuously playing field, trainings, team building, to strengthen the organization, and not to leave the hands of the unions. Organization Clarifying roles, reduce potential conflicts, alter communication, solved problems together and ion accelerating natural processes.