Business in any form should be backed by ethical and moral backgrounds which is one of the principle facts of any enterprise. However, in the modern world with the greed of earning more profit and business ideas, some of the enterprises in the business sector strives and yearns to go through the false process and fake ways in which the profit can be earned. To a business, the whole ethical manner serving to the customers hold pivotal value and for which the business has to undergo some of the vital theories and models for consideration (Dion 2012). According to the ethical theories stated in Saksena (2012), the Flight Centre which is one of the major travel retails of the province of Australia and serves to more than 80 countries all over the globe has been accused of serious allegations like surcharging the customers, underpaying their employees, workplace bullying and even unorganized long working hours which is totally unethical. The following report analyses the company, the incident and allegations related to it and along with the problems, the theories that are to be considered in the whole span. The following paragraphs highlight the recommendations and model features that are there in the overall company profile and the ways in which the following allegations can be removed. The overall report is thereby an amalgamation of the problems as well as the recommendations for the matter.
Flight Centre is one of the premium and largest retail travel outlet group in the province of Australia which was founded in the year 1982 and headquartered in Brisbane, Australia. The industry in which the company operates in travel and serves the area of 80 countries including Australia, New Zealand, Canada, United States of America, UAE. South Africa, Hong Kong, Singapore and India among others (flightcentre.au 2018). There are approximately 20000 employees working for the company with an approximate net income of $257 million. The company is one of the most effective companies listed in Australian stock exchange which states the importance and grandeur of the place.
The Australian travel giant has faced a number of claims in the matter of underpaying their own staffs, workplace bullying and even surging up flight prices for their customers which is one of the biggest issues which has been raised. The employees of the firm are paid at approximately $33,500, not even the minimum wage allocated in the Australian pay commission which is approximately $4000 below the minimum wage rate (Joshi, Sharma and Kumari 2016). The employees are then trained to charge tremendously high prices from the customers to make their wage adjustable to their needs.
The long working hours as well as the lack of proper payment means makes the workers resort to unfair means in the whole business and as a result of which the workers are forced to surge up their prices to make profit out of it (Oliver and Schoff 2017). The amount of surging totally depends upon the type of booking as well as on the worker which is unethical to the core.
Another problem that has been faced by the employees of the Flight Centre is the lack of proper working hours and the long shifts which is again not under the rule for the work ethics (Becker 2012). The longstanding duration of work can any employee have least interest to the overall working culture and loss of morals in the considerable span of time.
The third accusation being the fact of work place bullying which is again one of the major problems in the whole lot. According to Crane and Matten (2016), the lack of workplace ethics can refrain any employee from maintaining their work ethics in the overall lot which again can impact the work.
Therefore, the number of incidents seen in the workplace includes the surging up of flight prices and looting the customers, underpaying the employees, workplace bullying and long working hours. The advertisement published for the recruitment of Flight Centre says all about the allegations.
There are a number of problems that has been detected in the overall management of the organization which can be deemed under the following headings
According to Aguinis (2013), Performance management is defined as the process and measure by which both the authorities as well as the employees of a particular organization tend to plan and work together to monitor and review the work objectives as well as the planning of the work for making an overall positive contribution to the organization. The understanding by the managerial authorities for the contribution of the work goals of a place in terms of appreciation and appraisals is termed as work management in a place for making sure that the organization has the ability to drive and venture into a better place for better work results.
The process of effective performance management system is essential to the good working of a business as that helps the business as well as the employees to grow and have a basis of their own in the concerned span of time (Koslowski 2013). The essential of performance management in Flight Centre is also of great importance as in this way, the company as well as the employees will have a mutually beneficial saga of profit (Appendix 2).
There are a number of theories that is related to the Performance management concept which are as under –
The Goal Setting Theory – The theory invented by Edwin Locke in 1968 is one of the basis of the theory in which the employer sets goals for the employees for a particular span of time. This motivates the employees to work towards it and achieve it (Locke and Latham 2013). This kind of motivation helps the employees to aim for better goals at the end of the time which becomes more realistic and ultimately improves their performance at the end of the time.
The Expectancy Theory – This theory invented by Victor Vroom in the year 1964 is one of the base theories which states that the individuals or employees set their performance standards according to their behaviour in the workplace (Renko, Kroeck and Bullough 2012). This is determined by the level of satisfaction they have and modifications are done accordingly. The performance of the employees are totally influenced by the future events occurring in the span of time.
On the analysis of both the theories, it can be said that the Flight Centre is not adhering to any of the theories in a positive way. The company is setting goals for the employees for hiking the prices as per their convenience which again is measuring their performance. The employer itself is encouraging and measuring the performance on the unethical grounds which makes the overall disrupted performance one of the most anticipated works of the time. The company gives allowance to not measure performance by quality but by the amount of looting which is to be done (Dion 2012). The overall performance management of the organization is therefore one of the negatives of the organization as there is no positive feedback in the performance management system and leads to the employees to have false allegations in terms of the overall venture.
Coaching in terms of performance management is defined as the type of performance appreciation or feedback that is driven from the employees for the managers to improve the overall productivity of the employees and to improve the capability of the employee in their work performance and correct the amount of performance adhered (Robertson 2016).
There are a number of ways in which the coaching is given for the employees in a particular organization which can be assured to give the employees the required amount of work motivation as well as the scheduled and consistent ways to grow within the workplace. The value of coaching lies in the fact that it helps to improve the performance of the individuals to the point that it inspires both the employees and the managers to have a decent amount of knowledge and skills for the betterment of their work for making sure that the business is increased with the increase in the amount of profit.
The model that is to be used for coaching in terms of performance management is the GROW model for coaching. The GROW model is one of the basic coaching models that was developed in the 1980s and 1990s and contributes to the problem of setting up of goals and solving the problems in association with it (Grant 2012). The model which was developed in United Kingdom is directed to help the employees to have the required amount of growth in the workplace for the betterment of work.
According to Grant (2012), the GROW model is an abbreviation for the terms of Goal, Reality, Obstacles and Opinions and way forward. These points help the business as well as the employees to achieve their potential level of business in the amount of time. The goal is to be set at the end where the end result is to be achieved, the reality is the current situation of the place in the concerned span of time. The obstacles determined the number of problem that are there and the options are the determinant of the ways that the overall stages of performance has. The way forward is the way in which the overall measure is being addressed (Appendix 5).
Analysing the GROW principle in Flight Centre, it can be seen that the company lacks all the necessary stimulations of coaching and does not want to make any amendments in the employee policy of the brand. The company has no fixed coaching policy that will help the employees of the organization to have the required amount of benefits in the concerned span of time. The coaching centre is one of the principle ways to motivate and engage the employees whereas in Flight Centre there is no policy for the better performance in terms of coaching.
Delegation in the business world is defined as the one way of ordering tasks from the superior in the business to the subordinates in an organization for the performance of the work. The authority confers upon the task or power to a particular person and help to get the work done in the particular span of time (Chevrier and Viegas-Pires 2013). The assignment of any form of responsibility or authority to the workers working under by the people is termed as the delegation across the business organizations.
The concept of delegation is very serious in the overall business of the Flight Centre as in the concerned business, the overall work load of looting and conferring the work of overcharging the customers fall upon the employees for which they get an additional incentive and percentage over the surcharged amount. According to Chevrier and Viegas-Pires (2013), this act of delegating the work of unethical manner to the employees of the organization is to make sure that the unethical work is not done by the authorities on a direct basis but by the workers on whom the blame can be put.
This work of surcharging is one of the principle ways in which the business of Flight Centre works which means that they make their profit out of the unfair means of looting and underpaying their staffs in the manner (Graham, Harvey and Puri 2015). The delegation of the business is generally done to make sure that the work of the delegation process is being done to earn profit by the people of the business in an unethical manner.
Conclusion
At the end of the analysis, it can be concluded that the Flight Centre is one of the esteemed organization which will make sure to include all the detailed aspects of the analysis to make sure that the organization has all the detailed aspects of working including the moral grounds of working. The overall conclusion of the analysis is on the fact that the analysis is done based on coaching, delegation across business and the methods of performance management. The recommendations as well as the analysis of the recommendations are also mentioned in the report. The overall report is an analysis of the ethical means of the Flight Centre.
Reference
Aguinis, H., 2013. Performance management (Vol. 2). Boston, MA: Pearson.
Becker, G.K. ed., 2012. Ethics in business and society: Chinese and western perspectives. Springer Science & Business Media.
Chevrier, S. and Viegas-Pires, M., 2013. Delegating effectively across cultures. Journal of World Business, 48(3), pp.431-439.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Dion, M., 2012. Are ethical theories relevant for ethical leadership?. Leadership & Organization Development Journal, 33(1), pp.4-24.
Dion, M., 2012. Are ethical theories relevant for ethical leadership?. Leadership & Organization Development Journal, 33(1), pp.4-24.Flight Centre. (2018). Cheap Flights, Hotels, Tours, Cruises and Holidays – Flight Centre. [online] Available at: https://www.flightcentre.com.au/ [Accessed 4 Oct. 2018].
Graham, J.R., Harvey, C.R. and Puri, M., 2015. Capital allocation and delegation of decision-making authority within firms. Journal of Financial Economics, 115(3), pp.449-470.
Grant, A.M., 2012. An integrated model of goal-focused coaching: An evidence-based framework for teaching and practice. International Coaching Psychology Review, 7(2), pp.146-165.
Joshi, T., Sharma, S. and Kumari, S., 2016. Ethics in Business. E-Commerce for future & Trends, 1(3), pp.1-2.
Koslowski, P. ed., 2013. Contemporary economic ethics and business ethics. Springer Science & Business Media.
Locke, E.A. and Latham, G.P. eds., 2013. New developments in goal setting and task performance. Routledge.
Oliver, J. and Schoff, P., 2017. Agency and Competition Law in Australia Following ACCC v Flight Centre Travel Group. Journal of European Competition Law & Practice, 8(5), pp.321-328.
Renko, M., Kroeck, K.G. and Bullough, A., 2012. Expectancy theory and nascent entrepreneurship. Small Business Economics, 39(3), pp.667-684.
Robertson, J., 2016. Coaching leadership: Building educational leadership capacity through partnership. New Zealand Council for Educational Research. PO Box 3237, Wellington 6140 New Zealand.
Saksena, P.N., 2012. Ethical theories and the incidence of occupational fraud. Advances in Management.
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