Organisational Behaviour: A Case Study of Qantas

Introduction and Background of the Study

Organisational behaviour involves understanding people, their emotions, and other factors associated with business and its external and internal environments. These factors particularly impact employee motivation, either positively or negatively, on various scales. Employees’ behaviours are shaped by their needs and wants. Specific reasons and logic, in the form of needs, shape particular behaviours. The primary focus of any organisation is to manage these behaviours to increase productivity by boosting employee motivation and satisfaction. This involves applying motivation theories to support management in achieving their targets (McShane et al., 2015).

Qantas, a pioneering Australian airline, has a long history of successful business. However, during the COVID-19 pandemic, the aviation industry suffered significant economic setbacks, forcing Qantas to lay off 6,000 staff members out of 30,179 employees. Furthermore, 80% of the organisational staff were furloughed without pay (Atkinson, 2020). This caused fear, anxiety, and low motivation among the remaining and redundant staff members (Farrer, 2020). This study explores this issue in the context of applying motivational theories to find solutions.

The Absence of Emotional Intelligence in Qantas' Case

The Qantas case differs from typical theoretical discussions because employees were not made redundant due to poor performance but due to the halt of business activities, rendering the organisation unable to pay salaries (Atkinson, 2020). The impact can be categorised into short-term and long-term effects. The organisation, as noted by McShane et al. (2015), seems unable to perceive and manage emotions at work, widening the emotional intelligence gap. This caused emotional dissonance, indicating psychological tension among remaining and redundant employees. Concerns about job security, belongingness, expectations from employers, and the absence of procedures are all issues that needed observation before making any final decision.

According to McShane et al. (2018), the absence of recognition and regulation principles of emotional intelligence indicates that Qantas management has failed to perceive and manage employees' emotions, showing a lack of organisational commitment. This caused work-related stress among employees and reflected the uncivil behaviour of top management.
The Concept of Employee Engagement and Its Importance

There is a strong connection between working conditions and human behaviour, which significantly impacts job performance. The way people are treated at work, along with employees’ needs and social pressures, contributes to performance quality (Harvard Business School, 2012). The conceptual framework of Behavioural Management Theory differs from Scientific Management because employees must be recognised as human beings and based on their performance, engagement, and contribution. These factors drive employee satisfaction.

Disengagement and low motivation at work are concerns that require essential consideration. Organisations use reward schemes and motivation policies to resolve these issues for long-term benefits (Harvard Business Review, 2016). According to Bersin et al. (2017), top companies in the US prefer increasing employee engagement to improve employee experience. Improving employee experience is used as a marketing tool and to boost motivation among underperforming employees.

The aspect of employee engagement at Qantas, as McShane et al. (2018) argue, largely depends on job satisfaction involving good pay, job security, low working or psychological stress, manageable workload, and minimal individual differences among employees. However, remaining employees at Qantas might suffer from job insecurity if the COVID-19 period extends further. According to Seppala (2016), there are visible signs of a human relations management gap between employees and organisational management at Qantas. This needs to be bridged using a model that encapsulates the benefits of motivational principles to understand the relationship between motivation and productivity.
How Motivational Theories Can Help in Employee Engagement

Maslow’s Hierarchy of Needs

Motivation, synonymous with employee engagement, involves maintaining employees’ emotions. Human needs and wants motivate certain behaviours, leading a person to strive for achieving targets that satisfy those needs (McShane et al., 2018). Maslow’s Hierarchy of Needs Theory is one of the earliest approaches to determining human needs by their scale or intensity. Maslow’s theory addresses various aspects of human motivation, including survival, security, and belongingness. The primary concern for any employee is to satisfy basic needs related to food, water, and shelter. Job security and safety are secondary considerations.

The Qantas case revolves around job safety and security. Stein (2020) denotes that the stand-down of 20,000 staff is catastrophic for employees, who question, "how can they do that?" However, the Australian Act of Fair Work allows employers to stand down employees who are not needed or cannot contribute to useful work. Marin-Guzman (2020) points out that other businesses may adopt similar decisions. Labour unions have lodged a legal appeal against Qantas's decision. Survival is crucial for everyone, and this situation, according to McShane et al. (2018), can lead to psychological depression rather than quenching psychological needs. Such a situation can raise questions about safety and belongingness among remaining employees. The satisfaction of lower needs persuades an employee to strive for achieving higher-level needs, strengthening motivation. Self-esteem and self-actualization, according to French et al. (2011), are higher-level needs that lead an employee toward personal and professional growth. Critical appraisal indicates that employees are more concerned about satisfying lower-level needs, especially monetary gains.

According to Maslow's theory, people move forward to gain higher needs when they are sufficiently satisfied (French et al., 2011). The top management at Qantas needs to ensure that justice is done with Qantas employees (McShane et al., 2018). Employees, according to Marin-Guzman (2020), have the chance to return to their jobs after the pandemic is over. This might engage employees positively and, according to McShane et al. (2018), will generate positive emotions for better future prospects. The present situation of Qantas employees shows high cognitive dissonance, perceiving they have been tricked by the organisation during this critical time of survival.

Expectancy Theory in the Context of Qantas

Victor Vroom’s Expectancy Theory focuses on three dimensions involving effort as the primary factor behind performance resulting in (E-to-P) expectancy, performance to outcome (P-to-O) expectancy, and outcome valences. This theory indicates that performance level depends on the expectancy of higher rewards (valence). The belief that efforts will be rewarded as per employee expectancy improves performance (Daft & Marcic, 2014).

Skills, resources such as knowledge, techniques, and information availability to do a job influence the expectancy level. E-to-P expectancy indicates an individual’s perception of performance and possible reward gain (McShane et al., 2018). However, the stand-down initiative by Qantas, as noted by Stein (2020), has reduced motivation levels, making chances of good performance slim, forcing the organisation to reconsider its strategic policies. According to an Australian Associated Press (2020) report, the paid holiday appeal lodged by Qantas employees has been rejected by the Federal Court of Australia. This has significantly discouraged employees. McShane et al. (2018) note that P-to-O expectancy shows the scale of performance to gain a reward. Some employees believe that high performance will bring high rewards, while others think the opposite. P-to-E remains between both expectations. Outcome valence, according to Daft and Marcic (2014), is about expectations related to satisfaction or dissatisfaction. There is no boundary to define the positivity or negativity range related to valence.

Successfully applying expectancy theory is essential to engage remaining employees at Qantas. It is crucial to assure employees that they can work successfully and that the stand-down of other employees is not permanent (Marin-Guzman, 2020). To motivate the morale of remaining employees, as noted by Daft and Marcic (2014), a serious engagement plan is essential to boost confidence and reduce fear or anxiety about future decisions. Qantas needs to highlight essentials concerning P-to-O expectancy, indicating that hard work will bring good rewards, alleviating job safety fears.

Equity Theory and the Case of Qantas

Equity theory, according to McShane et al. (2015), is about maintaining fairness at the workplace. Some individuals perceive unfair treatment despite their hard work, while others receive more than their efforts merit. In such situations, as noted by Petri and Govern (2012), employees reduce their efforts to what they consider fair. Equity involves comparing personal qualities, skills, and abilities with those of others in the same organisation. This comparison includes evaluating personal skills, benefits, outcomes, performance, learning, promotion, work hours, experience, efforts, and recognition with similar traits in others. The following figure illustrates the concept of equity and comparison approaches.

According to McShane et al. (2019), equity significantly impacts human motivation. The idea of unfair treatment generates negative emotions, leading to tension and changes in input for better outcomes. Emotions greatly impact humans and are central to perceiving fair or unfair treatment by the organisation.

The inequity among Qantas employees arises from the perception that they have been unfairly made redundant and stood down without pay (Australian Associated Press, 2020). A possible solution to remove this inequity factor is to offer compensation or rewards for their services, boosting morale and motivating existing employees (Petri & Govern, 2012). Another solution, according to McShane et al. (2018), is changing employees’ beliefs about the situation, as in the case of Qantas. Marin-Guzman (2020) notes that employee morale and motivation at Qantas are low because the union feels the organisation has treated them unfairly. However, Qantas has asked its employees to seek other jobs, with the possibility of returning once business is fully operational.

References

Atkinson, S 2020, ‘Coronavirus: Qantas to Axe 6,000 Jobs Due to Pandemic’, BBC News, https://www.bbc.com/news/world-australia-53173929

Australian Associated Press 2020, ‘Court dismisses Qantas employees’ bid for paid sick leave during coronavirus crisis’, Cited in The Guardian, https://www.theguardian.com/business/2020/may/18/court-dismisses-qantas-employees-bid-for-paid-sick-leave-during-coronavirus-crisis

Bersin, J, Flynn, J & Mazor, AH 2017, The employee experience: Culture, engagement, and beyond, https://www2.deloitte.com/us/en/insights/focus/human-capital-trends/2017/improving-the-employee-experience-culture-engagement.html?id=gx:2el:3dc:dup3820:awa:cons:hct17

Daft, R & Marcic, D 2014, Understanding Management, 9th edn. CENGAGE Learning.

Farrer, M 2020, REAL vulnerability: ‘Qantas job cuts show Covid-19 change the future of work’, The Guardian, 27 June. https://www.theguardian.com/business/2020/jun/28/real-vulnerability-qantas-job-cuts-show-covid-19-will-change-the-future-of-work

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Harvard Business School 2012, Employee welfare, Harvard University. https://www.library.hbs.edu/hc/hawthorne/02.html#two

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Khalil, S 2020, Australia in first recession for nearly 30 years, https://www.bbc.com/news/business-53994318

Marin-Guzma, D 2020, Unions weigh legal action over Qantas job cuts, https://www.afr.com/work-and-careers/workplace/unions-weighing-up-legal-action-over-qantas-job-cuts-20200625-p555z6

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McShane, SL, Olekalns, M, Newman, AH & Travaglione, A 2015, Organisational behaviour: Emerging knowledge, global insights, 5th edn. McGraw Hill.

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Seppala, E 2016, ‘To motivate employees, do 3 things well’, Harvard Business Review, https://hbr.org/2016/01/to-motivate-employees-do-3-things-well. Accessed 18 May 2017.

Stein, L 2020, Qantas has just stood down 20,000 staff. How can they do that, https://www.abc.net.au/news/2020-03-19/qantas-has-just-stood-down-20000-staff.-how-can-they-do-that/12069964

Organisational Behaviour: A Case Study of Qantas