CASE STUDY Regaining Trust After a Merger When US Airways and America West joine

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CASE STUDY Regaining Trust After a Merger When US Airways and America West joined forces to become US Airways Group, 102 were critical to the new company's survival. The merger was intended to make both carriers more efficient. "This is a teamwork business," the CEO says. "You have to have people work together in some sort of team." As he greets employees just off the tarmac at the frozen Philadelphia airport, the CEO says he wants US Airways employees to knd that the company is changing in a positive direction. "As much as I would like them to see that this [company] will be different, I know trust is earned," he adds. "I'm going to earn it, "103 The culturesofth e two companies are quite different-US Airways is more mature and formal while America West is seen as more of an enthusiastic youngster. To help merge the two different cultures, Larry leSueur, a longtime America West employee, was appointed as vice president of culture to impart CEO Doug Parker's message that every employee is valued and that we "expect you to treat customers well, and we, as a leadership team, will do the same for you.#104 Because of several previous bankruptcies, along with wage and benefit givebacks, the US Airways workforce had lost trust with management. To rebuild trust, LeSueur spent time listening to their pentup frustration and anger. 105 Because of the challeng ing economy and competitive industry, earning employees' trust and focusing them on performing their jobs well cannot happen quickly enough Questions: 1. If you were an employee at US Airways Group, what would your main concerns be? 2. How could your trust be earned by the company following the merger? 3. What might happen if employees continued to distrust management? Explain wh using what you have learned in this chapter

Explanation / Answer

1-As an employee Main concern would be-

a)skills gaps

b)relocation issues

c)appropriate policies and procedures

d)pay differentials

e)Proper distribution of assignment

f)Equal Opportunity

2-Trust be earned by company if company is-

a)Motivating employees during this difficult time.

b)Focusing on training.

c)While lay–offs most often cannot be avoided, reducing uncertainty amongst employees is best. Those employees that are being laid off should be told immediately and be provided with severance packages, if possible, and most importantly treated in a respectful manner.Remaining employees should have clear guidelines on their role within the new organization, and a development plan that will help them adjust to subsequent changes.

d)More over company must have provided a channel for open discussions for the problem being faced by employees.

e)I shall be ensured that I shall have equal opportunity and merger will benefit in my career growth.

3-Employees are the asset of any organization and employees confidence hardwork and proper planning leads to organization success.

If trust factor is lost than company will not grow and mis management would lead to losing of key people and declining company profitability.

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