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Backup of Backup of IC VNA

The document provides a comprehensive overview of Vietnam Airlines Corporation, detailing its history, organizational structure, and business model. It discusses the impact of the COVID-19 pandemic on the airline, including adjustments made such as cargo transportation adaptations and SWOT analyses before and after the pandemic. Additionally, it outlines Lewin's change management model and the typology of changes implemented by the airline in response to external pressures.

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0% found this document useful (0 votes)
17 views

Backup of Backup of IC VNA

The document provides a comprehensive overview of Vietnam Airlines Corporation, detailing its history, organizational structure, and business model. It discusses the impact of the COVID-19 pandemic on the airline, including adjustments made such as cargo transportation adaptations and SWOT analyses before and after the pandemic. Additionally, it outlines Lewin's change management model and the typology of changes implemented by the airline in response to external pressures.

Uploaded by

thienphuongvu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 29

Statement:

- Business model canvas: 338 words


- SWOT 1: 692 words
- SWOT 2: 398 words
- Lewin’s model: 84 words
- Table of contents: 109 words
- References: 818 words
- Statement: 40 words
 Total: 2479 words
Table of Contents
I. About Vietnam Airlines Corporation (VNA).............................................................1
1. Overview..................................................................................................................1
2. Organizational structure........................................................................................2
3. Business model canvas............................................................................................4
II. The COVID-19 pandemic prompted Vietnam Airlines to make certain
adjustments.........................................................................................................................7
1. SWOT analysis........................................................................................................7
2. Changes to exploit freight transport...................................................................10
III. Typology of change...............................................................................................13
IV. Consider the alterations Vietnam Airlines has implemented as a result of
COVID-19.........................................................................................................................13
1. SWOT analysis (after Covid-19).........................................................................14
2. Changes to exploit freight transport...................................................................15
V. Vietnam Airlines’s culture........................................................................................16
VI. HRM function of Vietnam Airlines......................................................................19
1. Change Agent........................................................................................................19
2. Motivation tool......................................................................................................22
a) Goal Setting.......................................................................................................22
b) Explicit and implicit coercion..........................................................................23
REFERENCE...................................................................................................................24
I. About Vietnam Airlines Corporation (VNA)

1. Overview
Vietnamese civil aviation began with the Civil Aviation Authority's January 1956
founding, which led to Vietnam Airlines. Vietnam Airlines was established in April 1993
as a big state-owned air transport unit. Vietnam Airlines Corporation was founded on
May 27, 1995, by combining 20 aviation-related firms with Vietnam Airlines at its heart,
according Prime Minister's Decision No. 328/TTg. Vietnamese industrialization,
modernization, economic development, social progress, and civil aviation industry have
benefited from Vietnam Airlines Corporation's 20-year rise. Vietnam Airlines' main
business is passenger and freight air travel. The national GDP gains greatly from Vietnam
Airlines. The Corporation controls 80% of Vietnam's domestic aviation and 40% of its
tourism markets. With an average flight age of 5.4 years, this airline has the region's
youngest and most modern fleet (Ori, 2024). Besides serving enterprises, commercial
partners, and other organizations, they sell airline tickets and flight-related services to
consumers.
2. Organizational structure
Figure 1: Vietnam Airlines’s Organization Structure (Source: Vietnam Airlines ‘ 2023
annual report)

On April 1, 2015, The Corporation formally changed its name to Vietnam Airlines
Corporation - Joint Stock Company. Charter capital was VND 10,576,380,000,000 when
the Corporation became a joint stock corporation. Vietnam Airlines had its 2021
Extraordinary General Meeting of Shareholders on December 14, 2021, to discuss major
organizational and corporate transformation in light of the COVID-19 pandemic.
Vietnam Airlines will reorganize from 2021 to 2025 to streamline and reduce
intermediaries to improve operational efficiency. It would reform corporate governance
by improving management and encouraging IT and digital transformation (Anh, 2021).
Diagram 1 shows the functional organizational model of the Corporation, which serves as
a general support apparatus for the Board of Directors and the General Director. This
apparatus includes the Deputy General Directors, Chief Accountant, office, specialized
and professional departments, and equivalent agencies. Their function is to advise and
assist the Board of Directors and the General Director in managing and operating the
work.

3. Business model canvas

BUSINESS MODEL CANVAS

KEY  Skyteam Alliance partners


PARTNERS  Aircraft manufacturers (Airbus, Boeing)
 Airports and ground services
 Providers of fuel
 Tour operators and travel agencies
 Vietnamese government (largest stakeholder)
 Providers of aircraft maintenance services
 Services related to food and drink
 Hotel chains that offer lodging for travelers

 Managing a fleet of planes that carry people and goods


 Offering comforts and services to passengers while in flight
 Maintaining planes in the air and making sure they're airworthy
KEY
 Overseeing the logistics and operations of the airport's ground level
ACTIVITIES
 Using both direct and indirect sales channels to sell tickets
 The administration of a frequent flyer program
 Cargo handling and logistics

 Safe, reliable, and punctual air transportation


 Comfortable passenger experience with full-service amenities
VALUE
 A vast system of routes both within the country and abroad
PROPOSITIONS
 Competitive rates and convenient booking choices
 Benefits and rewards scheme for frequent fliers

 A fleet of aircraft and the ground infrastructure to support


 Skilled aviation professionals (Pilots, flight attendants, and engineers
KEY with the necessary skills)
RESOURCES  Airport slots and the rights to certain routes
 Brand recognition and customer loyalty
 Technology systems (reservation, operations, maintenance)

COST  The purchase, lease, and upkeep of aircraft


STRUCTURE  Fuel expenses
 Aviation workers' pay and benefits fees associated with airports and
air traffic control
 The cost of advertising and sales
 Price tags for IT and underlying infrastructure

 Revenue from selling economy and premium class plane tickets


 Transporting goods
REVENUE  Other sources of income (such as in-flight purchases, luggage fees,
STREAM etc.)
 Membership in a frequent flyer program and redemptions
 Airline partnerships, including codeshares and interline agreements

 Direct sales via airline websites and call centers


 Customers can book flights and manage reservations online (self-
CUSTOMER
service)
RELATIONSHI
 Cooperation with travel agencies and online booking platforms
P
 Loyalty programs for frequent flyers
 Customer support and feedback channels (email, website, etc.)

 Airline website and mobile app


 Travel agencies and online booking platforms
CHANNEL
 Airport ticket offices
 Partnerships with corporate clients

 Leisure travelers
CUSTOMER  Business travelers
SEGMENTS  Cargo/freight customers
 Vietnamese diaspora and international visitors to Vietnam
Figure 2: Business model canvas

4. Personnel structure

II. The COVID-19 pandemic prompted Vietnam Airlines to make certain


adjustments.

1. SWOT analysis

STRENGTHS  Famous and trusted brand image: Many people trust the
airline because it is the country's long-standing national airline,
which is especially important when there are few alternatives to
air travel during the pandemic. On top of that, youGov, an
international data research firm, ranked Vietnam Airlines as the
number 2 brand in Vietnam in 2021. While the COVID-19
pandemic took place in 2021, Vietnam Airlines acted quickly
and decisively to implement comprehensive measures to prevent
the spread of the disease, ensuring maximum safety for its
passengers. As evidence, Vietnam Airlines, the first airline in
Vietnam and the 9th airline in the world to achieve this
certification, was recognized by Skytrax with a 5-star rating, the
highest level, for safety in preventing the spread of the COVID-
19 pandemic. Transporting doctors, nurses, frontline workers,
medical equipment, protective clothing, and bringing overseas
Vietnamese back home are just some examples of the social
activities that Vietnam Airlines has actively participated in to
promote epidemic prevention nationwide, in addition to focusing
on flight quality (Ngan, 2021).
 The best air network in Vietnam: Vietnam Airlines' flight
network spans 21 provinces and cities nationwide. The airline
has expanded its international flight network to 28 destinations
in 26 countries and territories, providing flights to major cities in
Asia, Europe, Australia, and the Americas.
 Having government support: its status as the national airline
and a reputable state-owned enterprise in the aviation industry.
With hundreds of flights carrying human resources, medical
equipment and products for business in the context of the
COVID-19 pandemic, Vietnam Airlines has shown its
determination to join hands with the Government, the Ministry
of Health and the people in the fight against the epidemic. This
will stabilize the aviation industry while ensuring the airline’s
operations. Both passengers and employees of the airline will be
protected (Tuyen, 2021).
 Strong financial resources to invest and develop more in
digital technology, online customer experience or marketing
(Ori, 2024).
 The reliance on the state management process: Vietnam
Airlines may be slow to make decisions and will not have much
flexibility from senior management. There have been a series of
problems involving its pilots and flight attendants in the past few
years, which shows that the management and training of
personnel and pilots are still lacking. From a grassroots level,
this shows that the airline's management is far from perfect.
WEAKNESSES
 High operating costs: Vietnam Airlines owns the largest
number of aircraft in Vietnam with 107 aircraft (Tu, 2021). The
aircraft that Vietnam Airlines owns are also modern and
advanced aircraft such as Boeing 787 or Airbus A350, so the
cost of maintaining operations is very expensive. Compared to
low-cost airlines, Vietnam Airlines' operating costs remain high,
putting pressure on ticket prices and competitiveness.
OPPORTUNITIES  Enhance credibility and reputation: At a time when the whole
country and the world are "straining" to fight the pandemic,
Vietnam Airlines can support the government and the health
sector in terms of transportation, ensuring supplies and
equipment, and facilitating the repatriation of Vietnamese
citizens living abroad.
 Taking advantage of the increase in cargo transportation:
Few airlines prioritize and expand cargo transportation services
during that period. Vietnam Airlines can take advantage of that
time to generate more revenue to maintain operations and
weather the storm.
 Invest in technology and online customer experience: To
make it easier and more convenient for customers to access the
company even during the pandemic isolation period. This will
help VNA expand the market and strengthen customer
relationships.
 Financial strain on the tourist business due to the COVID-
19: Vietnam Airlines has reportedly lost money for six straight
quarters, beginning in 2020 and continuing into 2021.
Accordingly, in the second quarter of 2021, the company lost an
additional VND 4,528 billion, bringing the accumulated loss in
the first half of 2021 to VND 8,585 billion (Thanh, 2021).
THREATS  There's a lot of rivalry among airlines: Both low-cost and
full-service airlines surround the airline (Hien). Vietnam
Airlines, Pacific Airlines, Vasco, Vietjet Air, Bamboo Airways,
and Vietravel Airlines are the six airlines operating in the
Vietnamese market at present. Consequently, there is a great
deal of rivalry among airlines over ticket costs, routes, and
operational frequencies.

2. Changes to exploit freight transport


The complex COVID-19 pandemic in 2021 affected the whole aviation industry. When
the virus spread throughout Tet and summer's peak, domestic travel dropped
dramatically. Only 14.6 million consumers used the domestic market, down 61% from
2019 and 47% from the mid-year estimate. Vietnam Airlines suffered from a sharp
income drop due to the government's ban on domestic and international flights. In April
2021, the International Air Transport Association released global air freight market data.
Air freight demand rose 12% from April 2019, before COVID-19. Since the pandemic,
international airlines have increased their cargo fleets to replace passenger transit
revenue, according to IATA (2021). Not to mention that Vietnam has no freight airline at
the time (Tien, 2021). Vietnam Airlines has altered its operations to accommodate cargo
shipments. Vietnam Airlines has adapted Boeing 787, Airbus A350, and Airbus A321
aircraft to transport cargo in the passenger cabin since the COVID-19 outbreak. This has
boosted cargo capacity of each airplane type by 1.8-2 times compared to belly cargo. The
airline also operates about 3,500 cargo flights, a 30-route international freight flight
schedule, and more (Hoa, 2021). Vietnam Airlines' cargo transportation promotion
through aircraft conversion moved hundreds of thousands of tons of lychees, seafood,
technological components, and textile materials domestically and internationally,
ensuring commercial and production activities during the pandemic.

Lewin’s model
Many companies worldwide use Lewin's change management methodology. Physicist
and social psychologist Kurt Lewin created it in the 1940s. He explained social
development using an ice cube metaphor thanks to his physics knowledge. Lewin's
change model involves unfreeze, move, and refreeze (Awati, 2022). In the first phase,
"unfreeze," Vietnam Airlines must mentally prepare for the transition and handle any
resistance. This makes the change simpler to accept and embrace, reducing opposition.
After communicating the change, implement it without delay or complications. During
transition, the airline must streamline regulations, plan and schedule, modernize
technology, and manage capacity. In the final step, Refreeze, the second phase's
improvements and adjustments are normalized into firm operations. Staff may need time
to adjust to new procedures, this process can be sluggish. This is vital to ensuring
changes stick and the current embraces new energy. It also prevents employees from
reverting to bad company practices.

Kurt Lewin developed a popular diagnostic tool called Force field analysis in the mid-
20th century. This model helps individuals and organizations decipher and map the
dynamics of change. The core of Lewin’s force field analysis is identifying and
evaluating the driving and restraining forces that impact a proposed change. This model
when applied to Vietnam Airlines:

Driving Forces Straining Forces


 Sharp drop in passenger traffic  Cost of modifications (Aircraft
due to Covid 19 (loss of reconfigurations, equipment
revenue) purchases, system updates)
 Cash Flow Pressure  Regulatory requirements
 Operating Cost Concerns  Operational complexity (New
 Higher Freight Demand and procedures, Different handling
Capacity requirements, safety protocols)
 Increased Online Shopping  Limited cargo handling
 New Revenue Streams experience (staff skills,
 High Demand for Transporting operational knowledge, resource
Goods (Medical Supplies, allocation)
Essential Goods, International
Trade)
 Convertible Aircraft - Existing
Infrastructure
 Business Continuity
 Maintaining Market Position

Vietnam Airlines needs to ease workers' minds by helping them adjust to new procedures
and by making sure those procedures are well-structured and risk-free. Simultaneously,
the airline may boost motivation and buy-in by increasing communication and engaging
stakeholders more. Furthermore, it can use outside forces, like changes in the market or
regulations brought about by COVID-19, to its advantage in order to instill a feeling of
urgency.
III. Typology of change

Change can be said to be a movement or transition from one state to a desired state.
Organisational change can be classified as both discontinuous (episodic) or incremental
(continuous) change (Nadler & Tushman, 1995; Weick & Quinn, 1999; Hayes, 2002).
Nadler and Tushman (1995) suggested that depending on whether or not the change was
anticipatory or reactive, organisational change can be sub-cate- gorized into four types:
tuning, adaptation, reorientation, and re-recreation.

Vietnam Airlines' conversion of passenger seats into cargo transportation is classified as


reactive because, as mentioned above, external events and contexts (Covid 19) forced
Vietnam Airlines to do so. Moreover, with only three types of aircraft converted, this
change by Vietnam Airlines is only incremental and not remarkable. Vietnam Airlines is
reacting to a tactic that other airlines in the world have been successfully applying with
this conversion. That proves that this conversion qualifies as adaptation. Due to pressure
from external sources, Vietnam Airlines has to make this move if it wants to maintain
operations and remain competitive in the current economic crisis, so this change is
mandatory.

IV. Consider the alterations Vietnam Airlines has implemented as a result of


COVID-19

1. SWOT analysis (after Covid-19)

STRENGTHS  Reputable and trustworthy quality brand following the


epidemic: Thanks to its humanitarian and charitable efforts
during the COVID-19 period, Vietnam Airlines has built a good
image in the eyes of the people. VNA has worked closely with
the government to achieve goals such as joining hands with the
whole country to fight the epidemic; ensuring the safe
transportation of nearly 300 tons of medical supplies, equipment
and vaccines; ensuring the safe return of nearly 15,000 doctors,
nurses and soldiers; and ensuring the continuity of flights
connecting regions and countries (Vietnam Airlines, 2022).
 As a result, Vietnam Airlines was ranked
second in the list of “Top 10 Best Brands in
Vietnam” at the end of 2021. The airline
has proven its reliability and popularity,
especially in the context of the COVID-19
pandemic.
 Compared to other domestic airlines, Vietnamese airlines are at
the forefront of innovating aircraft technology and
technologies that enhance the online customer experience.
 Highest rate of delayed flights: According to statistics, the
number of delayed flights is 32,260, accounting for 10.3% of
the total number of flights. There are a total of 280,581 flights
in the aviation industry in 2022, of which 89.7% are on-time
(OTP). The airline with the highest rate of delayed flights is
Vietnam Airlines, with 12.5% of delayed flights (equivalent to
WEAKNESSES
14,486 flights). Vietjet Air is second with 11.5% of delayed
flights (equivalent to 13,310 flights). The next three positions
belong to VASCO, Vietravel and Pacific Airlines respectively
(Du, 2023).
 Impact on customer experience and
VNA's reputation.
OPPORTUNITIES  The number of tourists traveling to and from Vietnam:
Vietnam Airlines can take advantage of this time to boost
revenue growth due to the demand for travel and travel after a
long period of social distancing
 The demand for online shopping among customers has
increased: Due to the online shopping habit since the time of
social distancing, airlines should develop and exploit more
promotional programs or come up with more marketing
methods to attract more customers on social media platforms.
 Competition from low-cost airlines: Vietnam Airlines runs the
danger of losing market share to low-cost competitors offering
more incentives, as customers' financial situations have not
sufficiently improved since COVID-19.
THREATS
 Customers in Vietnam are known to be price sensitive, and
sales and discounts work wonders to encourage them to shop.
Vietnam Airlines' ticket pricing and profits are being affected
by this.

2. Changes to exploit freight transport

Given the small volume of cargo carried in the belly compartment (only 2-10 tons), many
aviation experts argue that commercial aircraft are not effective for long-term cargo
transportation. On the other hand, removing seats from the passenger compartment to
transport goods is appropriate during epidemics to transport essential goods for
prevention of epidemics, relief goods, etc. (Dang T, 2021). Furthermore, since the
COVID-19 pandemic has passed, Vietnam Airlines is no longer threatened with the
cancellation of domestic and international passenger flights, thus it is reasonable to
assume that this is a transitory measure. This short-term adjustment is what allowed
Vietnam Airlines to boost production and company efficiency, link supplier chains, and
earn an expected 7,700 billion VND in 2021 (Vietnam Airlines, 2022).

V. Vietnam Airlines’s culture


When an organization's employees agree on and adhere to a set of shared values, beliefs,
and practices, this is called the corporate culture. Companies' logos, slogans, and offices
are outward manifestations of their culture, while employees' values, attitudes, beliefs,
and way of life are internal manifestations of the company's culture. The Vietnam
Airlines Culture Handbook was issued by the Corporation with the aim of strengthening
the cultural foundation of Vietnam Airlines and making it a prominent enterprise with a
unique identity. Using a "1-5-5" based on passing down traditions and incorporating new
and progressive ideas, the Vietnam Airlines Culture Handbook has created a relatively
succinct content structure. That is, one center - "taking customers as the center" -
supported by five pillars: Safety, Integrity, Uplifting services, Digital, and Learning
culture. There are five essential components to each pillar (Vietnam Airlines, 2023).

Vietnam Airlines' culture can be better understood by adopting Robbins and Judge's
seven characteristics (Judge & Robbins, 2018):

 Innovation and risk taking (Moderate)


The airline's aviation safety regulations and the fact that it is owned by the state
contribute to its average ranking. Along with its safety culture, it has a conservative
approach to business innovation. Furthermore, as a state-owned firm and adhering to
aviation industry regulations, its risk-averse attitude is noticeable. In order to proactively
identify and mitigate risks, Vietnam Airlines regularly searches out safety information. It
develops the system by aggressively seizing opportunities and successfully applying
technology and safety management tools (Nga, 2024).

 Attention to detail (Very high)


As a result of regulations pertaining to aviation safety, Vietnam Airlines consistently
prioritizes precision and dependability. Safety is one of the fundamental principles upheld
by Vietnam Airlines at all times. Whether it's by investigating, processing data, or
reporting safety, the flight crew is devoted to delivering safe services in all aspects of
their work, from support and logistics to supervision. The trust and lives of tens of
millions of passengers annually and thousands upon thousands of passengers daily are
placed on every flight of Vietnam Airlines, according to Chairman of the Board of
Directors Dang Ngoc Hoa. The airline's long-term journey will always include ensuring
safety and building a safety culture. Among other things, the corporate culture of
Vietnam Airlines emphasizes the need of being disciplined while flying and reporting
incidents. The employees of Vietnam Airlines are quite well-versed in both required and
voluntary reporting. That way, the airline can keep a tight rein on the quality of service in
every facet of it. In particular, Vietnam Airlines has effectively used a multi-faceted
safety management system to anticipate and detect potential dangers. Expert divisions
can swiftly deal with and avert threats thanks to objective data (Anh, 2022). All of these
items demonstrate how the airline is meticulous in its pursuit of customer satisfaction and
the greatest possible flight status.

 People orientation (High)


The company prioritizes employee growth, well-being, and teamwork. It also emphasizes
personnel certification and training. The company regularly generates many opportunities
for employees to discuss and share about safety concerns in corporate culture to improve
safety classes and realign certain human resources employees' safety views. Vietnam
Airlines relentlessly developed “Elevating Service Culture” for years. To improve
service, this program trains and alters employees' mindsets. Vietnam Airlines not only
invests in current technology, advanced facilities, but also the human component,
considering it the foundation of service (Vietnam Airlines, 2024). Along with training top
talent, Vietnam Airlines prioritizes employee development. Business regulations ensure
career advancement and skill variation. Their career rotation and development plan helps
employees enhance their knowledge and skills to work more efficiently and offers
favorable conditions for them to plan to advance to a higher position or shift to a job that
suits their abilities and interests. The hierarchical structure also represents Vietnamese
respect and hierarchy.

The adjustment was successful due of Vietnam Airlines' culture. Given their safety
commitment, Vietnam Airlines' passenger cabin conversion to a cargo hold is justified.
Vietnam Airlines achieved COVID-19 consumer and cargo safety. An airline that
prioritizes passenger needs will also emphasize cargo. Their detail-oriented culture helps
Vietnam Airlines increase cargo safety and sanitation. Through high-quality service and
honest cargo, the airline met its national airline criteria. To fight the sickness, VNA and
the government have shipped 300 tons of medical supplies, vaccines, and other resources.
Improved work ethic, freight transportation, and operations promote employee well-being
at the airline. Performance and output rise. Learning throughout life helps businesspeople
succeed. By improving abilities, a company can retain personnel. Finally, this culture can
assist Vietnam Airlines increase revenue and customer loyalty by improving customer
experience and reputation.

VI. HRM function of Vietnam Airlines


1. Change Agent
The Board of Directors is the the main change agent and has overseen efforts to control
diseases, keep production and business activities smoothly, operate with agility, and seek
out ways to boost profits while cutting costs. Two of their most notable accomplishments
in this regard have been the promotion of freight transport and the establishment of new
flight routes (Vietnam Airlines, 2021). Chairman of the Board, Mr. Dang Ngoc Hoa,
made the following statement: "The Board of Directors together with the Board of
Directors of the Corporation have proactively implemented many synchronous solutions
to respond to the pandemic, ensuring the maintenance of operations, in the context of
production and business being affected by the epidemic. Simultaneously, Vietnam
Airlines has expanded its cargo transportation services, increased its flights to bring
citizens back to the nation, and expanded its transportation of professionals in order to
maximize revenue. With the cooperation of the government, ministries, branches, and
appropriate units, Vietnam Airlines was able to cut its losses by roughly VND 5,800
billion (Vietnam Airlines, 2021)."
Based on the changes considered above during the Covid 19 period of Vietnam Airlines,
the image of the change manager is the Director because it fits the function of leading the
organization to the desired results. Director can be said to control and change as much as
possible according to the plan. As its name suggests, the change manager guides the
organization towards its goals. Change is a strategic management choice that impacts the
well-being and survival of the organization. The image of the director implies that the
new system can be designed effectively and work well, resulting in a high-performing,
externally aligned company (Abbas, 2022). To stay alive in the face of COVID-19,
drastic action is required. This writing style works well with Vietnam Airlines because it
aids in defining the company's strategic direction, which in turn boosts performance,
streamlines workflow, guarantees safety, and improves service quality.

Managing change as Director is supported by Fiedler's contingency theory. Fiedler’s


Contingency Model states that there’s no one best style of leadership. Instead, a leader’s
effectiveness is determined by whether the leader’s style and the environment in which
the leader is performing complement each other. He found that a leader’s readiness level
came down to two things: Natural leadership style and Situational favorableness (Nic,
2021).
During COVID-19, Vietnam Airlines' management faced a dramatic drop in passengers
and shifting government . Unexpected shifts forced the business to adjust swiftly. Strong
leaders are efficient, organized, and productive. In a passenger demand crisis, Vietnam
Airlines turned the cabin into a cargo compartment. Task-oriented leaders act fast, give
clear orders, and pay attention to detail. According to Vietnam Airlines' CEO Le Hong
Ha, "Vietnam Airlines aims to synchronously implement many solutions to improve
aircraft exploitation efficiency at optimal costs, adapting exploitation plans to the
situation and policies of the governments of the countries where it operates (Vietnam
Airlines, 2021).” In contrast to a task-oriented leadership style, which may be prevalent at
the moment, a relationship-oriented style will prioritise things like team morale,
collaboration, and clear communication. Relationship leadership is still important to
motivate individuals who are experiencing stress and uncertainty due to the pandemic
during major changes such as cargo. Leaders should guide people through major
workplace changes. Vietnam Airlines had to quickly reconfigure the aircraft to load cargo
into the passenger cabin without jeopardizing flight safety. This required systematic
procedures, including safe cabin changes, cargo-priority flight routes, and rapid aircraft
deployment. The urgency of the issue may have made leadership task-oriented. To handle
the problem, Vietnam Airlines had to communicate with its maintenance, cabin crew, and
logistical professionals. Due to the odd changes, employees may be anxious. Keeping
these groups motivated and confident requires relationship-oriented leadership. Fiedler's
contingency theory explains how Vietnam Airlines quickly adapted to the pandemic by
transforming seats into cargo compartments using task-oriented leadership. This decision
required a logical, structured strategy and speedy execution, making task-oriented
leadership ideal.
2. Motivation tool
a) Goal Setting

Goal setting is essential for organization like VNA to motivate employees, link them with
company goals, and ensure performance in everyday operations and crises like the
COVID-19 pandemic. Goal setting affects employee, team, and business performance.
By making goal setting part of its culture, Vietnam Airlines can boost morale, manage
people, and measure performance. Vietnam Airlines aims to overcome the pandemic and
capitalize on development opportunities by focusing on operational safety, epidemic
prevention, aviation sector leadership, digital transformation, and extensive restructuring
(Vietnam Airlines, 2021).
Vietnam Airlines is facing a very challenging production and business environment,
exacerbated by the ever-increasing complexity of the epidemic and the severe
competition from its rivals. The importance of "Self-reliance - Self-strengthening - Self-
mobilization" is openly acknowledged by the company. Also, the Vietnam Regional
Branch of the company is always ready to take on challenges, has no fear of trying new
things, and is always following the orders of higher-ups when it comes to operational
resolutions and action plans. This has allowed them to adapt to the pandemic market
conditions or to other emergencies (Vietnam Airlines, 2023).

b) Explicit and implicit coercion

Management and leadership at Vietnam Airlines may have felt intense pressure from the
government, either directly or indirectly, to make changes to the company's operations in
order to stabilize its finances, given that the airline is a state-owned enterprise. Senior
management or government officials would issue formal instructions that the airline's
leadership was expected to comply with, regardless of how tough or unpopular the
decision may be. This type of coercion would be clear-cut and formal. Senior
management at the airline would have communicated the decision to shift cabins clearly
to lower-level managers, crews, and operations teams. Converting cabins, rearranging
flights, and retraining employees to handle freight instead of people would have been part
of this. Given the critical nature of the situation, these directives would have been
portrayed as absolutely necessary.
Due to the hierarchical structure of the company, employees may feel implicit pressure to
accept management choices without inquiry in the Vietnamese commercial and cultural
context. Managers and subordinates may feel compelled to comply with unpopular or
difficult decisions to rearrange the passenger cabin because of the seniority of the
decision-makers.
REFERENCE

1. Vietnam Airlines (2023) Vietnam Airlines Báo Cáo Thường Niên 2023, Vietnam
Airlines. Available at:
https://www.vietnamairlines.com/~/media/FilesDownload/AboutUs/Investor-
Relations/Bao-Cao-Thuong-Nien/BCTN-2023/Bao-cao-thuong-nien-2023-VI.pdf
(Accessed: 01 November 2024).
2. Anh, L.D. (2021) Vietnam Airlines Vượt Bão Covid-19 bằng các giải pháp TỰ
Thân, Spirit Vietnam Airlines. Available at: https://spirit.vietnamairlines.com/tin-
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