Royal Brunei Airline Case Study

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Survival is vital and it is one of the most important business entities. The airline industry affected with the global economic downturn and the increased level of competition. Bresnen and Fowler (1994) stated that in order to survive, the organizations particularly airline industry need to design and consider fundamental changes in terms of organizational change and management practices. The changes made could be through developing strategies of restructuring and downsizing of the organization as a measure to cope with unfavorable business conditions such as financial crisis.

Large organization like airline industry, often undergo restructuring and downsizing to secure survival through reduction of staffs to minimize overhead cost. It
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The methodology of collecting information is done through Emerald database and The Brunei Times newspaper. The flow of this case study would be start with the background of RB, the management of RB including the leadership, the problems and difficulties during the restructuring, decision made by the top management, impact of restructuring to both company and employees performance and the…show more content…
During the announcement, he clarified that process of restructuring the organization is the first step towards developing stronger foundation allowing the airline to improve its value of the organization among customers, employees and society (Too, 2011).

One of the decisions made in the retrenchment scheme was to encourage early retirement of its employees. The early retirement provided with compensation package was a voluntary option for its employees who were willing to go for early retirement; the employees were not being forced to do so. From 207 employees who were given option for early retirement only 103 employees volunteered to undertake early retirement scheme provided that they received $200,000 compensation if the employees earn $3,000 monthly together with the incentives provided (Hana,

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