Delta Airlines an Intervention

Andrea FultsCatherine Bollig

Delta Airlines Overview

Serves 160 million customers each year

70,000 employees 16,000 flights daily Hubs in Amsterdam,

Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, and Tokyo-Narita

541 destinations in 115 countries

Delta Airlines Overview Headquarters: Atlanta, GA Frequent Flier Program:

SkyMiles (established 1981); more than 74 million members

2008—Delta and Northwest Airlines merge, creating an airline with major operations in every region of the world

Annual Revenues (2009):$28.1 billion

Stock Price: $13.87 (as of 04/16/10) -52 Week High at $14.94 &

52 Week Low at $5.31

Delta/Northwest Merger Do to the merger changes have been made

◦ Addition of another full airline staff◦ Operation under a single operating certificate

from Federal Aviation Administration◦ Additional Terminals◦ Changes in Check-in and gate locations◦ Changes for flyers

regarding booking check-in etc. Food service World perks program integrated into SkyMiles

program

Model for Change

The Burke-Litwin Model of Organizational Performance and Change

Used for “OD interventions directed toward structure, management practices, and systems (policies and procedures) result in first order change; interventions directed toward mission and strategy, leadership, and organization change” (French and Bell, 1999)

For the company to be successful, all aspects of the model need to function appropriately

Burke- Litwin Model

• External Environment– Current world economy

• Organization Culture– Unionization Vs. Non-unionization

• Systems– The combining of both NW and Delta employees

• Work Unit Climate– Employees with a sense of non-involvement and

devalue

Identified Areas for Change

Current United States Economy

◦ United States Economy suffering from biggest recession since Great Depression Cost of Fuel is high Additional operational costs are raising Fewer people are traveling Fewer people choosing to fly while traveling

External Environment

• Survey of Current Customers–Determine why they choose to fly–What keeps them flying with Delta

• Survey of potential Customers–Determine what customer expectations are–Why do they choose not to fly

• Analyze data for truths • Incorporate customer recommendations• Publicize and promote new additions and

changes

Intervention Recommendation

Retain Current Customers Build a new Client base for the airline Educate customers on what Delta has to

offer Help move the company forward Increase profitability for the airline

What will these interventions do?

Unionization Vs. Non-unionization -work groups' union representation, job

security, pensions and seniority at the combined carrier in question

-NW has had flight attendants and mechanics, as well as other airline personnel unionized for decades, Delta has not

Organizational Culture

Walton’s Approach to Third Party Peacemaking is encouraged

-Confrontation: two principals must be engaged and confront that conflict exists (French and Bell, 1999)

-Third Party- diagnoses conflict situations

Intervention Recommendation

Ground Rules Unions and Delta want a positive result in

the situation- each has motivation to achieve this result

Balance of power Dialogue is open Each can understand each other Confrontation efforts in synch

Third Party Peacemaking Intervention

Diagnostic Model Based on Four Basic Elements: 1. Conflict issues 2. Precipitating Circumstances 3. Conflict- relevant acts of the principals 4. Consequences of conflict

- Requires problem solving and bargaining behaviors- Each party will have different goals and different needs- Expectations can be highly influenced by differing goals

and can hinder or help the process, if aligned (Chang and Sanders, 2009)

- Cooperation, competition and independence all must be factored in this type of intervention (Chang and Sanders, 2009)

Third Party Peacemaking Intervention

Specific deadline imposed to reached a decision on union status for each employee group by Delta and unions

Pros and Cons of Unions, what happened in the past for NW, how can this help in the future for Delta?

How will this affect employees? Bargaining for both sides Legal involvement?

Third Party Peacemaking Intervention

Agreement for both sides/less conflict Happier workforce Representation of Union Understanding Everyone is on the same page and informed Seniority, job roles, pensions, etc. are no

longer a question

What will these interventions do?

Combining of NW and Delta employees◦ Merger of two staffs brings two sets of procedures

and practices◦ Leaves employees to question new company’s

operating practices and procedures◦ When two different procedures/practices are

operating tension arises between employees

Systems

• Survey both Delta and NW employees–What is similar–What is different

• Review both Delta and NW practices–Which procedures are most effective–What procedures can be used from both airlines–Outline a new procedure process

• Train staff – Re-train all staff regarding new procedures

Intervention Recommendation

Give both Delta and NW staff a chance to express concerns

Allows for a feeling of appreciation and helps create buy-in for employees

Pin points practices from both airlines that were not successful

Through new company training:◦ Helps to unify both employee bases◦ New practice information is delivered properly◦ All individuals have same practice information

What will these interventions do?

Employees feeling devalued through non-involvement in merger process

Employees not always receiving all information

Employees not able to give feedback on their needs and suggestions through transition process

Work Unit Climate

Appreciate Inquiry “AI seeks, fundamentally, to

build a constructive union between a whole people and the massive entirety of what people talk about as past and present capacities: achievements, assets, unexplored potentials, innovations, strengths, elevated thoughts, opportunities, benchmarks, high point moments, lived values, traditions, strategic competencies, stories, expressions of wisdom, insights into the deeper corporate spirit or soul-- and visions of valued and possible futures” (Cooperrider and Whitney, 2008)

Appreciative Inquiry Four Phases (Cooperrider) -Discovery- strengths of organization (small

->large groups) -Dream- envision potential in the future-

10-20 years -Design- create initiatives to bring dreams

to reality -Destiny- drafting action plan, mission,

vision, etc.- focus on strengths of ideas

Intervention Recommendation

What will these interventions do?

• Provide happier, more committed and valued employees

• Provide opportunities for employees to voice feedback and a place to have their ideas heard

• Gain great insight and new ideas from people on the frontlines

Questions from the group?

References Adesola, Sola, & Baines, Tim. (2005). Developing and evaluating a methodology for business

process improvement.. Business Process Management Journal. 11(1). Retrieved from http://ezproxy.lib.uwstout.edu:2082/Insight/ViewContentServlet?contentType=Ar

ticle&Filename=Published/EmeraldFullTextArticle/Articles/1570110103.html

Alexander, Jackie. (2002). Organizational Diagnostics: Integrating Qualitative and Quantitative Methodology. Journal of Organizational Change Management. 15(2). 156-168.

Chang, Yang-Ming, & Sanders, Shane. (2009). Raising the cost of rebellion: the role of third party intervention in intrastate conflict. Defense and Peace Economics. 20(3). Retrieved from http://www.informaworld.com/smpp/section~db=all~content=a913046811~fullte

xt=713240928~dontcount=true#s913046862

Cooperrider, D, & Whitney, D (Draft). A Positive Revolution in Change: Appreciative Inquiry. Retrieved from http://appreciativeinquiry.case.edu/uploads/whatisai.pdf.

Delta and Northwest Merger. (2010). Retrieved from http://www.delta.com/help/faqs/merger/index.jsp

Delta, northwest approve merger deal. (2008, April 14). Retrieved from http://www.cbsnews.com/stories/2008/04/14/business/main4014360.shtml

Delta Airlines Inc. (2010, April 25). Retrieved fromhttp://topics.nytimes.com/topics/news/business/companies/delta_air_lines_inc/index.html

Foust, D. (2008). Delta-Northwest Deal Grounded. Bloomberg Businessweek. Retrieved from http://www.businessweek.com/bwdaily/dnflash/content/mar2008/db20080318_527222.htm

French, Wendell, & Bell, Jr., Cecil. (1999). Organization development. Upper Saddle River, New Jersey: Prentice Hall.

Http://www.delta.com/about_delta/index.jsp. (n.d.). Retrieved from www.delta.com

Johnson, Dana. (2004). Adaptation of Organizational Change Models to the implementation of Quality Standard Requirements. International Journal of Quality and Reliability Management. 21(2). 154-174

Martins, Nico & Coetzee, Melinde. (2009). Applying the Burke-Litwin Model as a Diagnostic Framework For Assessing Organizational Effectiveness. South African Journal of Human Resource

Management. 7.(1). 144-156.

Moylin, Martin. (2009, October 29). One year later, delta-nwa merger sees few kinks. Retrieved from http://minnesota.publicradio.org/display/web/2009/10/28/northwest-delta-merger

Moylan, Martin. (2010, February 10). Delta-northwest merger nearly complete. Retrieved from http://minnesota.publicradio.org/display/web/2010/02/08/delta-nwa-merger-nearly-done

Unger, C. (2010, January 6). Delta-Northwest Merger Nearing Completion. Retrieved from http://www.smartertravel.com

References