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ASTRO ARLINES Was established in 1980 Arthur Bruton vision for the new airline was to provide service to people who could not afford to travel air. Secondly the airline aimed to have a type of organization with provided an effective management for people to work in a team. Bruton took any opportunit...

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ASTRO ARLINES

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Was established in 1980 by Arthur Bruton  Bruton’s vision for the new airline was to provide low-cost service to people who could not afford to travel by air. Secondly the airline aimed to have a type of organization with provided an effective management for people to work in a team.  Bruton took any opportunity that was provided to him to show his vision and his creativity to teach his staff and to inspire them.  He was regarded by many of his employees as an inspirational leader which made you believe you could achieve anything.  Bruton’s goals where to hire young and passionate employees who were willing to learn new jobs and function as part of a supportive team.

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At this stage Astro Airlines was having a huge success due to the discount fares that was provided to customer the would usually travel by car, train bus, or not travel at all. This was a strategy to compete with other competitors by keeping operative costs low will attract new customers. The salaries of the manager and employees were lower than normal for the airline industry. Customers where charged for some frills such as meals and baggage handling that airlines included in the price of the ticket.  In less 3 years Astro Airline was an immediate success which grew from few hundred employees with 3 airplanes to 3,000 employees with 22 planes serving 20 cities.

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Was Bruton a charismatic leader in the company at this time? At this time Bruton was defined as a charismatic leader in the Astron Airline company. He was defined by his employees as an inspiration leadership who made anyone believe they could achieve anything. His leadership style was based as a charismatic leadership where his vision gave an opportunity to create an organization where people worked together which they released they creativity and their presence was important to the Astro Airline. He built a social relationship with his followers which allowed him to be seen as a leader which presents a transcendent image or ideal which goes beyond the instantaneous. His employees considered him to be unusual because of the qualities that Bruton had as a leader. Bruton had the ability to inspire and build confidence and promoted radical ideas. He had the qualities which were self-confident and moral conviction which he builds this with his followers (employees) through being optimism and have abiding faith. Bruton presented that his leadership style was a charismatic leader as he allowed to build trust and support with his team which acceptable contribution whenever making vast decisions.

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Despite the huge success the rapid growth created serious organisation problems. Wrong communication problems increased, work-load remained overwhelming and decision was taking long to be made. These problems were because of the informality and absence of structure. Bruton refused to recruit experienced manager from outside the company, preferring to promote current employees into positions. Managers and employees companied about the pressure and stress overloaded. As number of routes, facilities and flight increased, operational problems became more complex, but formal structures were not developed to deal with them effectively. At this stage employees where not receiving the extensive training and socialization necessary to prepare to provide quality service and use team management practice. Operating problems just as cancelled fights, rude attendants alienated customers which created an eroded reputation for the company.  In 1982 the president of Astro Airlines who was responsible for the strategic planning and operational management resigned which was due to the conflict between him and Bruton.

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Bruton was heavily involved in the training management as he felt he had to take all the responsibility that was left behind, however changes in the management process where not implemented and the position of the president was still not field. Rather and focusing on the whole mess and implementing changes Bruton decided to add another rapid expansion. The airlines added new routes and purchased new and larger aircraft and hired more new employees.  In 1984 Bruton no longer seemed content to run a successful regional airline. He continued to make changes and compete with major carriers. At this point the company began to experience losses instead of profits.  Internal problems worsened in 1985, where there was a number of pilots quitting due to mistreatment and demoralized. At this point employees started to question Bruton’s sincerity and accused him of being a manipulator and his actions are providing him as a dictator.  In 1986 as, financial performance continued to worsen, Bruton abandoned the strategy of discount fares and no-frills service and began offering full service with higher fares. Operating losses continued to mount and Bruton changed back to his original strategy.  By the summer of 1986 the losses increased, and the company entered bankruptcy proceedings.

Kahoot Quiz: 1. Which of the following is Not a trait of a personalised Charismatic Leader? - Empower their follower to think for themselves (right) - Use reward and punishment to manipulate followers - Change data to preserve image of leader infallibility - Possess a narcissistic personality 2. Charismatic Leaders… - Are action oriented (right) - Are physically attractive - Don’t follower their emotions - Have an unshakeable self-confidence (right) 3. A transformational leadership style would? - Serves to change the status quo - Creates and shares knowledge - Inspires followers - All of the above (right) 4. From the Astro Airline Case study Bruton’s leadership style was perceived as? - Task oriented - Charismatic - Transformation - B and C (right) 5. From what we have learnt do you think that transformational leadership style needs to be charismatic? - Yes - No (right) - Depends on the circumstances 6. Charismatic Leaders have high risk orientation - True (right) - False 7. Which of the following specifies behaviour qualities which a charismatic leader might have? - Consciousness of industry trends - Low risk orientation - Awareness of resource need and constraints. (right) 8. Leadership that raises the morality and motivation level of followers is. - Situational Leadership - Transformational Leadership (right) - Adaptive Leadership - Transactional Leadership 9. The desired outcome of using transformational leadership is to - Help followers accomplish more than expected (right) - Help followers achieve their jobs description tasks - Help leaders interact better with other leaders - Help leaders reward followers for satisfactory work. 10. An example of a ‘Socialized Charismatic Leader’ is

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Richard Brandson John F. Kennedy (right) Adolf Hitler Donald Trump

PRESENTATION

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1- SLIDE: CHARISMATIC AND TRANSFORMATIONAL LEADERSHIP 2- SLIDE: ASTRO AIRLINES CASE STUDY SUMMARY - Established by Arthur Bruton in 1980. He has a vision which was implemented by 2 elements 1. Provide lo-cost, no-frills service to people who can not afford to travel via air. 2. Create an organisation which cultivated team-work to unleash creativity and improve productivity. Structure: 1. Decentralised; three levels of management (equality, informality, participative leadership & self-management) 2. Employee representatives within the board Management: 1. Mentoring 2. Participate in regular line jobs Strategy 1. Attracted new travels that would otherwise find alternatives 2. Keep operating low-cost; fare prices much lower than competitor - Salaries lower then industry norm; employee benefits - Reconfiguring aircraft - Scheduling - Charging frills; meals, baggage handling etc. Results 1. Expansion: $3,000 + employees, 22 planes, 20 cities 2. Early growth and rapid adaption to economic recession, national strikes, price wars

3- SLIDE: ARTHUR BURTON CHARISMATIC OR TRANSFORMATIONA?

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4- SLIDE: TRANSFORMATIONAL LEADERSHIP A definition: A transformational leader motivated followers and encourages them to look beyond their own self-interest for the good of the group or organisation and to perform ‘beyond expectations’. This is achieved by earning from followers: - Trust - Commitment - Respect - Not going to happen overnight

5- SLIDE: The transformational leadership process involved an exchange of valued benefits, based on defined expectations and motivations of both leaders and followers. - Followers or employees are being motivated by monetary incentives Easier to establish - As long as you have the rewards to use as an incentive Transformational leadership can take a great length of time to form the relationship and trust - In the long run, it is a much more effective form of leadership.

6- SLIDE: ARTHUR BURTON & TRANSFORMATIONAL LEADERSHIP Arthur Bruton was an ‘inspirational leader who made you believe that you could do anything’. The work environment was “enthusiastic, excited and optimistic”. The workplace structure forced on equality - Helps to develop the connection and trust

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Arthur Burton was a transformational leader by transforming the industry - All economy planes - Salaries lower than normal

7- SLIDE: Arthur Burton & Charismatic Leadership Definition: The social construct between the leader and follower, in which the leaders offers a transformative vision or ideal that exceeds the status quo and then convinces followers to accept this course of action not because of its rational likelihood of success, but because of their implicit belief in the extraordinary qualities of the leader. -

Traits of Arthur Burton: 1. Empowering Equality in Work Environment 2. Inspiring 3. Eliminates ‘Status Perks’

8- SLIDE: ANOTHER CHARISMATIC LEADER Qualities of effective charismatic leaders: - Vision - Superb communication skills - Self-confidence & moral conviction

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Effects on followers: Instil a strong sense of trust and bonding Unconditional acceptable of the leader Unquestioning loyal and obedience to the leader

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Motives that drive a charismatic leader’s behaviour: Self-transcendence Self-glorification Motives and values, then creates two types of Charismatic leaders: 1. Socialised charismatic leaders 2. Personalised charismatic leaders

https://www.youtube.com/watch?v=_Q-6H4xOUrs&bpctr=1537417160 https://www.youtube.com/watch?v=2nliGOuJL5A English Subtitels

ACTIVITY

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Same model of leadership - Charismatic are transformational by nature - Transformational leaders have charismatic traits Not all transformational leaders are charismatic

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With your table groups match up whether you believe the famous leaders is transformational, charismatic or both.

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Focus on the dominant leadership trait that made them successful

Bruton was certainly a charismatic leader. Like any other charismatic leader, he had the ability to communicate and behave in ways that reach followers on a basic, emotional way to inspire and motivate. He was perceived as someone with an enthusiastic capability to strike an emotional chord with his listeners. He was highly capable of install his ideas, philosophy and vision into the minds of his followers and also reinforce it. He had created an environment where everyone felt energetic and empowered. It was his ability to attract others with his ideas that he expressed through his impeccable oratory skills that inspired his employees. He inspired a shared vision, believed in delegation of authority. His commitment to building and sustaining team was undeterred. They had full belief in him and it was further reinforced when the company was able to achieve success in very short span of time. His major characteristics were his powerful ability of communicating a compelling vision of the future, he passionately believed in his vision, he relentlessly promoted his beliefs with boundless energy, he propounded created ideas, and he inspired extraordinary performance in followers. Burton was very passionate about his vision that he could make profit if he could make air transport affordable to the people who could not afford it. He always advocated his beliefs and reinforced it in his speeches. His speeches were emotionally arousing, and they weaved the employees together to achieve a common goal. A charismatic leader has a capability to link people by a common goal, he makes them forget their individual needs and objectives, sacrifice their interest to work for the achievement of a common goal shown by the leader. Burton’s ideas were highly creative; his vision of air transport for all was indeed great. His management skills were equally creative, his ability to reduce cost by onsite ticketing, thin layer of hierarchy, and independent working were highly creative. It was due to his charisma that the employees felt highly motivated despite the fact that they got lesser salary than the industry average; they worked more and had no assistants. Burton had the confidence of his team despite getting salaries which were lower than normal for the airline industry their commitment to company was undeterred. It was his charisma that within three years of operation the company grew from a few hundred employees with three planes to more than 3,000employees with 22 planes servicing 20 cities.

Questions1. Describe Burton’s leadership behaviour. Burton was a highly confident leader with ability to implant his vision into the hearts of his followers. His ability to associate his vision with the individual goals of the employees raised the Astro airlines to immediate success. With reference to the given case, Burton’s excellence was in his ability to communicate. He was an emotionally stirring speaker and he used his speeches to deepen his beliefs, ideas and principles into the hearts and in the lives of his followers. Arthur Burton is not only a charismatic leader but also a highly creative and innovative leader. He raised a company in the turbulent time with a distinct vision and eye on the existing opportunities. He believed in participation and teamwork. His commitment to equality, informality, participative leadership and self-management in the initial years helped develop a highly committed team who shared the vision of its chairman. He encouraged his managers to provide direction but not to dictate methods. It confirms his belief in motivation and participation. He encouraged continuous learning and emphasized in skill development of his employees. He could associate the organizational goal with the individual need of the Astro team. He expected his subordinates to handle multiple jobs, be independent and be less entangled in bureaucratic hurdles. He must have been a great convincer for the employees carried out responsibilities as expected. They did their own jobs for example executives answered their own telephones and typed their own letters. He believed in taking challenges and he sought the same thing in his team. While choosing new employees he took special care in hiring young, enthusiastic employees who were willing to learn new jobs. The other competency that Burton had as a leader was his focus on customer service and quality. He took special efforts to offer fares that were much lower than those of competitors....