Executive Summary

The following report would analyses the organizational behaviour at Air New Zealand by looking into the different conjecture and hypothesis that exist in each stage of organizational improvement. The report analyses the organizational behaviour in the Air New Zealand by differentiating and evaluating distinctive speculation of organization behaviour and its plan of activity.  We are the group of senior supervisors of the ‘design and culture’ group in this association who would present the strategy documents to the SEO expressing techniques towards the synthesizing variety of business strategies to arrange the association, groups, and people with the goal of achieving the higher efficiency by performing at an utmost level.


“Organization behavior is the branch of management associated with the understanding, predicting and influencing the behavior of an individual, group and organizational group in the work environment. It is crucial to conduct the organizational behavior assessment to implement the successful functional plan within the work organizations. It is totally normal to conduct the behavior analyzation as every individual in the organization has his particular arrangement of personal mental and social qualities that differ from other. There are rarely two or three individuals in an organization who shares the same qualities. Executives must have the capacity to evaluate, clarify, alter and adjust the individual behavior in the organization by applying the different portrayals and hypothesis of the “organizational behavior”. Majority of the time people generally confuse organizational behaviour with the organizational theory, human resource management and human psychology which are far from being similar (Wilson, 2010).

Background of Air New Zealand

Air New Zealand is the flag carrier airline company of New Zealand, based in the Auckland offering the transportation services around the globe. The organization has been a respected member of the Star Alliance- one of the world’s largest airlines since 1999. The company mainly focus on the route networks of the South Pacific, Australia and New Zealand. The organization is known for a high level of adaptability which has played an important role in making New Zealand a center for commerce, operations, custom and games. Air New Zealand has become a leading a leading aviation association around the globe. The company understand the value of the straightforwardness, acceptance, open arrangement and support of reasonable rivalry and (airnewzealand.co.nz, 2016).

Air New Zealand stand on its “world class in flight” and serve clients with the sentiment of solitary joy, warmness, sociability, amiability and general organizational force. Air New Zealand is famous for managing its activities unlimitedly and has implemented “vertical coordination” into the inside trade system by including extended resources (Hahn, 2007).

Main Body 1

Air New Zealand is the main advocate of the worldwide rivalry. The company continue to inspire other aviation to accomplish a new position in the global market. The company never hesitate to take one step ahead and study about their capability and how they can utilize it to meet the demand in the market. This further convinces the company to move toward the “markets-under-served” by contenders and accomplish the competitive edge associated with cargo, trade and air travel demand (air Newzealand.eu, 2016).

Air New Zealand – Organization of Operations

There is no hesitation in declaring that the utmost hard work and dedication Air New Zealand has shown in their services has helped them become more preference over other aircraft in the business. The company has been recognised for successfully carrying out the operations techniques over the association that serves as tough support for its general business system. The general function of the organization highly depends and influenced by the competitive measurement relating to the functional expenses, client service, productivity, work connections and incorporated innovation (Fitzsimons, Ames, & Denyer, 2011).

Main Body 2

Analysis of Organization Behavior

Organization behaviour is the study of the behaviour of an individual working in an organization through different approaches and theories. The representation connected to the authoritative were conducted inside Air New Zealand to get the following result (Grout & Fisher, 2011):

Comparing Diverse Hypothesis


Personality is the word that was derivate from the Latin word persona which means speak through. In the current context, personality refers to how the characteristics of a person affects the others and how does he view or understand himself. In short, personality could be defined as psychological features that represents how a person reacts to a particular work environment. The personality of the person is a private element. Due to the contrast in the personality, the implementation of the strategy differs one from the organization to another.

Personality Traits:

Personality traits refers to characteristic patterns of feelings, thoughts and behaviors. In organization behavior, personality traits imply the stability and consistency of someone who scores high in the specific traits. One of the most popular and widely used systems for personality traits is called the five-factor model. There is a never-ending debate that people do not actually act constantly from one situation to another one and are highly influenced by the situational forces.

 “Maturity Theory of Argyris Chris related to the Personality”

The theory of Argyris Maturity in personality presented by Chris Argyris is known as one of the most important theories in the organization behavior. The theory seeks to highlight human nature and behavior. According to the presented theory, the development of a person starts proceeding from the immaturity situations to the maturity situations. An immature person usually characterized for being dependent, passive, lack of confidence and needs to be controlled by others. On the contrary, a mature person is being characterized for being active, confident, self-controlled and self-confident (Argyris, 1964).

“Learning and Reinforcement”

Learning is believed to be the principle that motivates many employees in the organization to stay. Learning has a major impact on the behaviour of an individual as it highly influences the abilities, perception and motivation. Many believe that learning is incorporate with inner procedures like feeling, thinking and attitude. There is a various hypothesis of learning that is followed by Air New Zealand to improve the capability of the individual on the basis of learning. (Steven, Normand, & Glavas, 1998):

“Motivation in Work Settings”

Maslow’s hierarchy of needs is a motivational theory in the context of human psychology. According to this theory, there are the five basic human needs which are often depicted as hierarchical level or pyramid of needs. These five basic requirements are safety needs, physical needs, belongings and love needs, esteem needs,and self-actualization. After completing the first stage of needs the person move toward the next stage and take action as its motivational variable. Whilst “The two-factor theory presented by the Herzberg” Suggests that job satisfaction basically depends on the two factors namely satisfaction and dissatisfaction. Satisfaction factor involves motivators and satisfiers and dissatisfaction incorporate hygiene factors and dissatisfiers. He suggested that both factors work on the same plan and are not just the polar opposite. By taking away the dissatisfaction of the employee he represented that just because the organization is paying a higher salary to its employees doesn’t mean that employees will be satisfied. The employees are just no longer dissatisfied. He further suggested that 4 different combinations can actually exist at the work environment namely; high hygiene and high motivation, high hygiene and low motivation, low hygiene and high motivation, low hygiene and low motivation.

There is a difference between the Herzberg and Maslow’s theory of motivation. At one hand, Herzberg’s theory was fundamentally based on the satisfactory and dissatisfactory factors. Herzberg and his fellow mates interviewed 200 employees from different organizations including accountants and engineers. In the survey, employees were asked about the components of their jobs which makes them happy or unhappy. Their answers were clear in yes or no format which makes it clear if they’re working environment cause them happiness or dissatisfaction.  On the other side, Maslow’s theory of needs was divided into two parts namely growth needs and deficiency needs. The theory was based on the fundamental human needs where psychology needs were at the bottom of the pyramid and self-esteem were on the top. The higher level needs cannot be fulfilled until the bottom needs are properly satisfied (Maslow, 1943).

Herzberg also analysed that hygiene needs were related to the physiological needs of Maslow’s theory of needs and motivations factors were associated with social esteem.

 “Vroom’s theory of expectancy motivation”

Apart from Maslow’s and Herzberg theory of motivation the Vroom’s expectancy theory also exists in the organization behaviour. Whereas Maslow and Herzberg’s theories were focused upon the internal needs and satisfactory factors of an individual, Vroom’s needs were focussed upon the efforts, performance and outcome. As per the Vroom’s theory the behaviours results derivate from the options whose purpose is to minimise the pain and maximise the satisfaction and pleasure. The theory also highlighted that the performance of an employee also depends upon factors known as skills, knowledge, experience, personality and capabilities. He also stated that motivation and performance are directly linked to the person’s willingness to work. He also focused on the variables like variables Expectancy, Instrumentality and Valence to explain this.

Expectancy: – Expectancy refers to alludes that increased efforts will generate the increased performance. For instance; if an employee works hard, he could achieve higher goals. The expectancy is highly influenced by factors like;

  • Availability of the right resources.
  • Set of skills required to perform or execute the task.
  • Necessary support for the task.

Instrumentality: – Instrumentality is a belief that if you perform well then, the valued outcome will be received. The first outcome you will achieve will lead toward the second level outcome i.e. if you performed the assigned task then, there will be something in it for you. The instrumentally is highly influenced by major factors like;

  • The proper understanding of the relationship between performance and outcome.
  • Trust on people who will take outcome related decisions.
  • Transparency in the outcome process.

Valence: – Valence in the organization behaviour refers to importance an individual put on the desired outcome. In order to make the valence positive, it is necessary to focus upon attaining the outcome.

These elements interrelated with each other develop a motivational force.

“Valence*Expectancy (Instrumentality) = Motivational force”

Air New Zealand must look after the democratic styles with the specific goals to complete the coordination.

Main Body 3

Decision Making within the Association

The process of decision-making needs the specific academic arranging related to the particular options that basically rely on the demands of the situation. There are various types of decision making that are stated below (Steven, Normand, & Glavas, 1998): –

  • Reversible decisions: – These are choices that are impermanent in nature and is not ultimate. These decisions can be altered in case of the incorrect choice of decisions that can lead toward the disappointment.
  • Irreversible Decisions: – As apparent from the name irreversible decisions are enduring choices. Once taken, it cannot be changed. Associations usually take irreversible decisions when there is an absence of choices or alternatives.
  • Quick decisions: – Quick decisions are those choices that are taken right away due to the demand of the circumstance and scarcity of time. Not all the individual in an organization can take quick decisions only successful executives and authorities can settle down on the exact choices.
  • Delayed Decisions: – Delayed decisions are those choices that are set aside in order to maintain its status. In a different perspective, delayed decisions are the loss of various opportunities that could be taken into account with quick decisions.
  • Trial and Error Decisions: – Trial and error decisions are the techniques of finding the best solutions. In this technique of decision-making, different trials are made to choose the main reasonable option.
  • Experimental Decisions: – Experimental decisions refers to the choice that incorporates the guarantee along with the certainty of the past decisions before implementing the extreme decision.

Main Body 4

Organizational Culture and Design

The organizational design, culture and framework are generally evaluated by qualities such as ideas, qualities, as well as with the tasks of Air New Zealand. There are two types of organizational designs known as traditional and contemporary. Both official and unofficially announced strategies lead the plan and arrangement of the organization that is highly motivated by the multi-cultural surroundings.

Organizational Changes and Stress Management

Air New Zealand use the idea of “high-handed” to manage better control. The concept was highly inspired by the stress and absence of motivation. Change is an inescapable reality that is related to the alterations. Air New Zealand is recognised for implementing the adjustment and alteration in the organization through the creative methods (Bamber, Gittell, Kochan, & Von, 2009).

Present Business Model of Air New Zealand

In the current situation, Air New Zealand is following the sustainable strategic business model which examines the “open skies environment” and offer several benefits to the organization. The presentation of the methodology remains similar for all the groups. In addition, sustainable strategic business model give benefits to the Air New Zealand. The business model deals with the lack of staff, lower cost economics, and excessive support from the government, strategic distance, fleet price and opportunistic policy (Azar & Brock, 2010).

The Conclusion

Air New Zealand is one of the most recognised aviation organization of New Zealand which has gained the reputed position in the business sector. Along with the sustainable strategic business model they key capabilities, capacities and potencies support the crucial administration that further increases the satisfaction of the pre-designed goals. Through the different practices, methodologies, management inspirations, theories, alterations, and stress management the Air New Zealand has the capacity and capability to fulfil the desired needs of the clients and employees and along with this capacity to hold them for a long time in the association. Such strategies will assist the association to take the competitive advantage in the worldwide business sector.


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