Automated Quotation (NASDAQ) Stock Market, and is listed under the symbol AAU. United Airlines, as a whole organization continues to be dedicated to cost improvement, increased revenue and sustainable operations that will augment a margin that is most competitive. United portfolio of services and products that are offered ensure that customers get the appropriate prices. United also spends a significant investment on their employees in order to instill the right amount of accountability that will ensure operations are at peak-performance levels. United Air Lines, 2009) Healthy Work Culture United Airlines spends a lot of time working and negotiating with, the unions and labor-management task forces. In, Workers seek to recoup bankruptcy concessions, there is cause for concern in the area of bankruptcy. The relations between United Airlines and labor-management have gotten to be tense as talks regarding contracts get heavier in a time of financial loss for the airline. Because of the recession, United Airlines, along with many others, have been forced to strategically ground planes in order to cut costs. USA Today, 2009) United Airlines is currently the number three carrier serving the globe. However, talks are underway about merging with airlines like Continental, US Airways, Raritan Airways, Southwest Airlines and Alaska Airlines. Even American Airlines, the current number two airline, has talks regularly with the unions, though no agreements have been contracted. (USA Today, 2009) Unions currently represent approximately 90,000 flight attendants in the airline industry. This has been the first of many talks for some unions since there were cutbacks in pay and benefits after the 9/11 terrorist attacks in New York.
The incident gravely impacted travel and led to the bankruptcy of many airlines. Many airline workers still need to get back what they lost in wages and benefits, and are hoping for a rebound later this year. (USA Today, 2009) The same discussions are on the fence with the pilots’ unions as well. Many pilots are putting on the pressure by threatening to disrupt flights if they do not receive new contracts. At United Airlines, pilots were accused of breaking the law when they opted for a “sick-out” in 2008 in order to disrupt flights and press United for further negotiations.
The resentment still lingers, though the sick-out has long ended. (USA Today, 2009) Times in the airline industry are increasingly difficult. Since January 2003, the industry as a whole has let go of 75,000 jobs. “United executives rewarded their shareholders, their banks and themselves,” says Captain Steve Wallach, who is the chairman of the pilots union. “Pilots’ expectations are high. ” (USA Today, 2009) No carriers are in the clear right now. Though most of the major commercial airlines have talks about mergers, most feel that their futures are pretty bleak. No one in the industry believes airlines are in a position of (financial) strength,” says Jeff Brigandage, the senior vice president for human resources at American Airlines. (USA Today, 2009) Many analysts promote the idea of ending the long tradition of rewarding workers, and executives alike, with annual raises that are fixed regardless of the carrier’s profitability. Jerry Glass, a Washington-based consultant and former airline executive, believes that each side would be much better off if they gave their workers lower annual salaries along with bonuses if the airline prospers. In an industry like this that’s always under pressure, it’s a common-sense approach,” Glass says. USA Today, 2009) The crisis of bankruptcy, and the downward spiral resulting from it, is shaping a new culture of the airline industry filled with bitter employees who feel unappreciated and unfairly paid. The scope of this culture reaches to every flight, every airport, and every domicile. It is banding employees together, but not in the way that United ever had anticipated or desired.
Where there is unity among employees, who are joining forces against authority, there is a lack of unity present now between employees and their managers, as well as corporate United. Management and Leadership Market control played am important role in forming the different sectors that United Airlines offers. United Airlines offers six types of services designed to keep the airline competitive. First, the Global Network, focused on the portfolio of products and services that are unique to each of the different customer groups, which uses Market Control to gauges pricing variations and.
Next Economy Plus, which offers an upgrade of more legroom. Also, United Express, which caters to the regional and provides more than 1 , 700 scheduled flights in the United States and in Canada. Another service that proved to be in demand was the Premium Service (P. S. ) flight, primarily trans-continental and caters to PIP and highly- valued customers. Also offered is United Airlines Cargo, which gives their customers guaranteed same-day domestic and international shipping that offers options for small packages in addition to heavy freight. United Air Lines, 2009) Lastly, the Star Alliance has succeeded in making United Airlines a more globally-known carrier by teaming up with some of the world’s top airlines. This network is now the largest global airline alliance, and has offered connections for assigners and cargo customers to over 965 world destinations in around 162 countries. Some of United Airline’s well-known partners include: Air Canada Lufthansa, Scandinavian Airlines, Singapore Airlines, South African Airlines, and Air New Zealand, just to name a few.
All of United Star Alliance partners are complete participants in the lucrative Mileage Plus Program, which offers customers a chance to earn miles as they fly which can later be retrieved and reused for other flights and is the runner-up to being the most successful loyalty programs worldwide with 54 million global members. United Air Lines, 2009) The system of governance at United Airlines is a straightforward Bureaucratic control. At the core of their governance are principles that are the foundation for investor and shareholder respect and trust.
The principles that are practiced are essential to the reputation of United as a whole and are solely focused on organizational excellence, effective operational performance, and above all, integrity. The Board of Directors and the management teams at United Airlines work collaboratively under this corporate governance and guidelines, and include the policies and practices that key to guiding operations at the company. They present an idea of responsibility for directors, and are set to coincide with the policies implemented by the Securities and Exchange Commission (SEC) and the NASDAQ Stock Market. United Air Lines, 2009) United Airline’s President and Chief Executive Officer (CEO), Glenn Tilting, explains: “Our commitment to maintaining the highest business standards and following the best practices in effective governance is essential to all of United stakeholders, including our employees, customers, investors and global ratters. Together, we must all strive to maintain United integrity and performance. ” (USA Today, 2009) Managerial and Leadership Roles What people want and need from their leaders is help to achieve their goals.
Professional goals do not necessarily have to include increased pay and promotional opportunity; but can also include advocating personal development in order to overcome obstacles that may be in the way of them performing at maximum performance levels. Treatment from leaders should always be with respect, fairness, and should always be ethical. Leaders will do best if they can alp cultivate good, intuitive judgment. This will allow them to develop into better leaders and become a contributing force. People seek a competent manager in their leaders. Bateman and Snell, 2009) Successful managers do not always fit the mold for proper leaders. In many cases, administration, supervising staffs and high-level executives fulfill their obligations as managers effectively without truly leading. However, these situations are great opportunities to become better leaders. The skill to lead successfully makes great managers stand out from the rest. While management eels with a lot of the daily operations, real leadership involves facilitating essential change.
Whereas management deals a lot with planning and budgeting, leading provides direction for the company. It involves restructuring, finding quality human capitol, and supervising activity. Leadership goes far past daily function and works to inspire those who will be. Really good leaders can hold peoples’ focus on moving forward to a common goal, and motivates them to rise above obstacles and barriers. (Bateman and Snell, 2009) A manager can develop into a great leader by acting out five different elements. The first is challenging the process and its practices and beliefs in order to create change.
The second is inspiring a shared vision that will appeal to the organization’s culture and peoples’ values and then encourage them to care about important goals. The third is enabling people to act by allowing people to have access to resources that will give them the means to reach the goal with their potential. A leader should also model the way by not just giving directives, but also leading by example. Lastly, a leader should always encourage the heart y showing their appreciation in various ways, such as rewards and positive incentives. Bateman and Snell, 2009) Four Functions of Management Management can be described as a practice of working with fellow colleagues and utilizing resources in order to achieve certain organizational goals. Great managers are effective in accomplishing goals. Being efficient is defined by achieving these goals, and doing so with as little overuse of resources such as time, money, and people. A great deal of managers fail at this on all fronts, or they lose focus on one task by directing their attention to another one. These timeless principles are what build good managers.
They are leading, managing, planning, and controlling. (Bateman and Snell, 2009) Strategies of Implementation Organizations also have specific need for their leaders. In an organization, leaders should meet peoples’ needs, but in a way that effectively implements strategic direction. That being said, companies should place people in the proper leadership roles in which they achieve the goals of the organization. (Bateman and Snell, 2009) Conclusion While times can change, and businesses develop, these ideas of leadership and management remain a constant for success.
Innovations, like United upgraded sectors of service, or their use of marketing research to stay competitive, can shape a company into a different type of entity. However, leaders and managers are still needed to lead, inspire, and fulfill daily operations effectively. In today’s business world, leaders need to be adaptable and accept change in conditions with the fundamental essentials of leadership in mind.