EFFECTIVE DECISION MAKING OF ETIHAD AIRWAYS

1. Introduction

Etihad Airways is one of the key actors on the global aviation market faces strategic management issues in areas of strategy, operational performance, and customers. For enhancing the quality-of-service delivery, customer needs have to be met and employees engaged in the delivery of services which have to be reliable. In recent times it has been seen that improper operations of the organization have resulted in the downfall in returns for the Etihad in the aviation sector (Etihad, 2021). The respective paper seeks to determine the advantages of good decision-making impacts on organizational performance of Etihad Airways and proposes relevant strategies to enhance motivation of employees at the organization through proper communication and overseeing of the ideal decision-making procedure for resonating management issues.

2. Review of Relevant Business Issues

2.1 Identification and Analysis of Business Issues

Three of them are fundamental to decision-making issues in the organizational set-up of Etihad Airways are namely the strategic positioning, customer satisfaction, and productivity (Etihad, 2021). These are all important problem areas because they inherently affect the airline’s ability to sustain operation in a risky world market environment. Strategic planning deals with making decisions in conditions of risk in the global economy including the changes in demand and supply and the establishment of new rules. In this area, faulty choices entail sunders of opportunities and strategic misfits that are certain to poll negatively on the airline’s sustainable advancement. As for instance, in case of Etihad Airways the new rules and regulations in the aviation sector has impacted in the motives and strategic decisions of the organization, which has impacted it’s business hold in the competitive market (Emil, 2021). In particular, such stakeholders as senior management and investors apply pressure and expect proper strategy and strategic management to guarantee appropriate profit and market competitiveness. Another important area is the need for an improvement in customer services, as it impacts on the financial returns, especially now that the customers expect companies especially the giants in a sector such as Etihad Airways to provide them with fast and individual services (Etihad, 2021). These expectations have not been met which will lead to a decline in the customer satisfaction hence a potential loss of the airlines reputation, and possibly its income. One of the most important groups of stakeholders is passengers, who expect high level of service, and choosiness of decision-making to improve passenger service and identify the areas of its deterioration. It is therefore important and a best practice that organizations seek to improve their operational efficiency by containing costs and rationalising resource use, especially where capital investment is significant as it is in the aviation industry. Lack of optimisation in operations through employees’ disengagement and ineffective leadership affects the overall productivity besides raising operational costs. Workers as are the source of operational input and recipients of the generated outcome which are arguably the most affected by such inefficiencies, as they lead to low morale and productivity. These are expectations of a clear communication, participation in decision making processes, and competent management of the challenges that are likely to arise.

2.2 Research and Review of Information and Knowledge

The sources of information and knowledge reflect the fact that decision-making problems of Etihad Airways are unfavourably predetermined by internal and external conditions. On the internal side, there are no employee engagement and failure in communication among them. Many times, employees do not feel involved in the decision making process, which demotivates them, and increases their performance level (Kaleel, 2020). Externally, competition, constantly shifting market conditions and the changing regulatory environment of the Etihad airways present major uncertainties to the organization and present major decision-making pressures to the organization. For the resolution of the respective challenges one can resort to the use industry reference standards and standard practices. For example, the decision could be made to practice the participatory decision making especially in the field of customer satisfaction regimes that was done in other successful airlines, such as Emirates to increase the levels of the employee’s involvement and general working effectiveness (Al-Nakeeb, Darwish, & Alhajri, 2023). Thus, the use of technological resources for more effective analysis and informing of strategic development plans and customer satisfaction enhancement could also be more efficient. Being aware of such factors and how they may be used to make reference to Etihad Airways will help make more informed decisions that can overall improve the organisation’s performance.

3. Exploration of Decision-Making Approaches

3.1 Evaluation of Information Gathering Processes

At Etihad Airways, data collection is a crucial factor that is relevant to decisionmaking as a business organization. The company collects the required data through data analysis, market research, and feedback from its employees. Another advantage is that Etihad focuses on big data usage as a tool for improving the understanding of the customers, competitors, and the business's own overall performance. This is in line with the Bounded Rationality Model in which the decision-makers do their best to arrive at the most feasible decisions by utilizing available resources and the limited knowledge in their brains. Nonetheless, there is a major disadvantage of the current approach to decision-making: the danger of getting overwhelmed with data and not being able to adequately address it (Andari, Trilaksono, & Munandar, 2022). Furthermore, using employees' suggestions is useful though it makes use of biased data that can in one way or another affect managerial decisions. Market research is indeed helpful in understanding customer needs however it is not always accurate as to capture the fast-changing environment of aviation. In sum, though Etihad Airways has devised a practical approach to gathering information pertinent to its operations, it could further fortify its procedure for handling data complexities and confirming the pertinence and timeliness of the gathered information.

3.2 Decision-Making and Dissemination

The decision-making procedure of Etihad Airways takes into account the collected information and then performs the verdict that reciprocates the business strategy of the company. Etihad's decision-making is consistent with the Administrative Man Model, where decisions are made within a set rationality aiming at satisfying as opposed to achieving an optimal solution. Rationalizations of the actions are attributed to the exigency that constrains the multiple needs of the stakeholders, clients, employees, and shareholders inclusive. The combination of data analytics and market research tools gives a logical model of decision-making to increase the probability that the decision taken is the right one founded on facts and current data. Nevertheless, the effective communication of these decisions throughout the organization is an area of difficulty (Ellis & Foster, 2023). In response to this, Etihad has put in place an extensive and effective system of communication whereby all its decisions are communicated using internal memos, meetings, and other digital tools available so that all relevant parties are made to understand the decisions that have been made. Its application is useful in reducing confusion and making certain that everybody is on the same page regarding the strategic direction of the firm. They have however not fully captured how the decision-making process can be made more transparent to allow stakeholders to feel as if they are part of the process. Decisions made are communicated through formal structures including notification, circulation of memos, and or organizing meetings to brief those who need to be informed. However, there are opportunities to utilize more effective means of dissemination such as real-time updates of the progress of tasks as well as the use of interactive platforms to improve the dissemination process within the organization. This would also help in the improvement of implementation, and facilitate a culture of informed decision-making at the airline, paramount for the long-term success of this venture.

4. Recommended plans to communicate and oversee new decision-making approaches for Etihad Airways

4.1 Planning and Communicating New Decision-Making Approaches

The issues of ineffective decision-making and demotivated personnel at the Etihad Airways should be tackled through the consequent measures should include a long-scale plan to inaugurate new decision-making procedures. The plan should also focus on the active use of problem-solving, problem-seeking strategy which will enable avoiding situations where a dictator makes a set decision without consulting the rest of the organization (Buchanan & Davidson, 2024). Pareto Analysis can be incorporated into improving the decision making process by focusing on the decision that will have a great impact on the organization. Effective communication of these new approaches, therefore, should be done through a multi-channel approach that would include, for example the approaches, such as data sharing through real-time dashboards and internal messaging tools in addition to meetings and live workshops (Buchanan & Davidson, 2024). There is a strategy in such a system that guarantees that decisions are communicated effectively and without delay hence promoting openness and people’s involvement. These processes are mainly directed through leadership networks. Managers and top employees have to offer the proper direction, make sure that the changes align with the objectives of the organization, and be change agents that involve employees and bridge the gap towards using these new strategies.

4.2 Measures for Evaluating Decision-Making Effectiveness

For the assessment of these new decision-making processes it is imperative that Etihad Airways identify the following decision-making KPIs, such as the measurements could be levels of engagement, decision implementation success, the speed with which decisions are made, and rise in organizational performance (Gadekar, Sarkar, & Gadekar, 2022). End of day evaluations and follow up such as daily employee check-ups and feedback, suggestion receptacles and performance appraisal and feedback system are some of the ways through which the effectiveness of the decisions results can be evaluated continuously. The process of seeking input from the employees when making these evaluations makes the decision making process active, relevant and in tune with the company’s objectives and what the employee expects from working in the company.

5. Conclusion

The main issues that has been found regarding decision making in Etihad Airways are the problems in its strategic management, customer relations, and organizational performance for which great decision making is crucial. These are pegged on the need to increase employee engagement, improve organizational communication, and addressing the issue of analytics. By adopting these strategies, the company will be able to promote a culture of informed operational environment and hence the motivation of employees, improved satisfaction of customers and overall enhanced performance levels of the company. Ensuring that decision making is as transparent and involves the stakeholders as much as possible will be very vital in the future of Etihad in the international aviation sector.

 

References

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