Abstract
External shocks have severely affected the aviation sector with detrimental impacts on airport service employees. Service-sector organizations tend to implement radical organizational change to survive and front-line managers face often-opposing demands. This study aims to shed light on how front-line managers cope by utilizing social exchange-based strategies during radical organizational change. This study uses an exploratory qualitative design and thematically analyses data obtained from 40 semi-structured interviews with senior managers, front-line managers and employees working for an airline services provider operating in a major international airport in Australia. The study finds that front-line managers employ several social exchange approaches to overcome the paradoxical challenge of facilitating change while maintaining current operations. We find evidence of four approaches that the front-line managers utilize that are based on social exchange: (1) building relationships with clients’ representatives; (2) utilizing relationships with experienced employees to facilitate radical organizational change practices; (3) rewarding employees in exchange for helping to manage personnel shortages; and (4) motivating employees by various morale-enhancing techniques. The study contributes to organizational sustainability and change research by developing a deeper understanding of the importance of social exchange in facilitating the work of front-line managers in the airport services sector.
Highlights
IntroductionOrganizational change comprises dualities of different forces—elements that oppose but still complement each other [2]
Organizational change refers to a “relatively enduring alternation of the present state of an organization or its components or interrelationships amongst the components, and their differential and integrated functions totally or partially, in order to attain greater viability in the context of the present and anticipated future environment” [1] (p. 81).Organizational change comprises dualities of different forces—elements that oppose but still complement each other [2]
By revealing how front-line managers overcome the paradoxical demands using social exchange at the workplace, this study aims to help managers and researchers better incorporate the human element in radical organizational change where front-line managers play a critical role in this process
Summary
Organizational change comprises dualities of different forces—elements that oppose but still complement each other [2]. In line with these opposing features of change, for sectors that are highly exposed to external factors, the consequences of external shocks exacerbate the change process and increase its complexity. The aviation industry is such a sector that, highly regulated, is subject to many external elements that can affect operations and bottom lines in very considerable ways, for example, sudden changes to oil prices, terrorist attacks, volcanic eruptions, and grounding of fleets due to safety issues. Combined with the highly competitive nature of the Australian airport services industry, this has forced many organizations to either exit or conduct radical organizational change to remain viable. Several airport services companies operating in Australia have closed or filed for bankruptcy in the last few years [3]
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