South African Airways
‘A Tale of Two Cities’ written by Charles Dickens begins with the words “It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness…”.The case reminds me of these lines. The newly appointed CEO has the opportunity to make decisions that lead the company to a brighter future. There is huge potential for economic growth, yet the employees have lost trust in the management at this crucial stage. The most important thing that needs to be done is gain the trust of the employees. Research indicates that trust has a strong positive effect on organizational commitment. Employees are the life force in a service industry. The new strategy to transform SAA aims at providing outstanding service quality that surpasses competitors among other things. Service to the customer needs wholehearted cooperation from the staff of the organization. Trust becomes especially important in this context. The Company has a history of employing CEO’s that have either made bad financial decisions or have made decisions for personal gain. In this climate, a CEO’s first priority would be to begin a dialogue with the employees. He must also communicate to them the need for cost cutting measures despite posting gains. He must explain to them that the company is focusing on consolidating its position in the long term for which the confidence of the shareholders, creditors, bankers and other stakeholders must be gained. The need of the hour is to ensure informational justice is adhered. The text states it is all about ensuring that the decision making procedures and outcomes are explained in a comprehensive, reasonable, honest and candid manner. The Government has pinned a lot of hopes on the organization. They expect the company to be one of the drivers of economic growth and to support it in its empowerment schemes. The CEO of such an organization must display sound moral judgment. Our text defines moral...