Air Namibia for tying commercial, operational and financial targets to the overall corporate strategy. There is no tracking system in place to provide up-to-date information on the specific progress being made in achieving the company’s performance objectives. Air Namibia need to implement a cohesive target setting and performance measurement framework e.g. balance scorecard. Despite its small size, Air Namibia suffers from a lack of communication, coordination and alignment. There has been recent progress but more needs to be done if the airline is to meet the new Business plan aggressive targets. A more efficient organisational structure would improve communication and put the right people, with the right skills, in the right positions.
‘Why are employees in high-performing work units more inclined to have the capacity to interface their work execution to wide association objectives? Our examination proposes that directors, especially center supervisors, assume enter parts in encouraging a ceaseless procedure of incorporation in which they connect representatives existing an incentive to association esteem instead of imparting association vital objectives and compensating execution with those objectives. This procedure of combination includes deciphering key esteems regarding worker’s esteem and nearby work duties and utilizing formal administration frameworks, when conceivable, to encourage social cooperations (Paarlberg,2007:387-408).
5. Challenges of integration
To succeed in the digital economy, association must deal with the joining of business, innovation, individuals, and procedures inside big business as well as crosswise over broadened undertaking. As per Lee and Whang (2001:17-26) characterize combination as ‘the nature of the condition of coordinated effort that exists among divisions that are required to accomplish solidarity of exertion by the requests of the earth’.
‘Senior administrators now comprehend that they can’t simply center around business and store network activities to make efficiencies. The test is to integrate supply chain execution with the overall corporate business strategy and to use the supply chain as a catalyst for business transformation or business reinvention (Hewlett-Packard, L.P. (2004).
These challenges are truly impediments that must be overcome if Air Namibia is to be successful in integrating its business. The organisation structure, supply chain integration can be enabled by the use of cross-departmental teams, by creating processes that cross organisational boundaries and eliminates silos as can be seen in Air Namibia. ‘Organisational structure spells out the ways individuals will, work connect and identify with each different over the association, including detailing progressions, and obligations and duties. The wrong hierarchical structure can avoid key partners and key assets from imperative choices, and can make it exceptionally troublesome for individuals to work cooperatively to accomplish arrangement and linkage. ‘What’s more the abilities of the general population themselves are critical to the accomplishment of all associations. Working and settling on choices in a coordinated way requests aptitudes and abilities that should be produced in a considerable lot of the present inventory network experts (Jennings, 2009:53).
Air Namibia whether from a lack of skills and expertise or a failure of leadership and focus. The biggest challenge is a failure to properly execute the organisation plan and integrating business objectives successfully. The challenges can be mitigated by aligning management behind a performance-driven implementation plan that holds everyone accountable and that brings in critical outside skills and expertise to provide expert support where needed. According to Jennings (2009) stated that ‘many supply processes cross traditional functional organisation boundaries. For example, sourcing teams must be cross-functional to include the many demands that will be made of suppliers.
‘Organizations have formalized channels of correspondences that empower key arrangement and cross-practical and cross – organization process. Successive and customary correspondences among capacities that make up the inner inventory network are fundamental for the execution of technique. Moreover, correspondence must spill out of inside the association to the supply organize, to clients, to contract fabricates to coordinations providers and to specialty units with benefit and misfortune obligations. Individuals to-individuals correspondence, formal and casual, is expected to detail and execute of data is required on business patterns, future business prospects, innovation guides et cetera. At business production network process level, formal and casual correspondence is expected to keep process working at expected levels of execution (Jennings, 2009).
Air Namibia management should align, integrate good working practise and must meet this key challenges in organisation to achieve true supply chain integration. They must establish a vision of how financial-non financial results will improve with supply chain integration. Develop people, culture and an organisation that support organisation vision and objectives. They should develop customer-centric metrics. Develop multiple supply chain to meet the needs of different customer and market segments. Set up the right situating of work on worldwide premise. Fuse inventory network thought into item and administration outline choices. Keep up sourcing as a first – level need. Remain engaged and steady involved with clients and suppliers. Make a viable deals and tasks process. Create substantial and solid database, information and data. Build up the capacities and scientific instruments required to settle on viable choices in an inexorably mind boggling and hazardous condition. Manufacture trust inside and crosswise over association in the store network. Discover approaches to share chance fairly among supply chain partners. The aircraft should discover approaches to share remunerates evenhandedly among supply chain partners (Jennings, 2009:19).
Although Air Namibia has spent several millions in developing strategic plans, all failed to produce the desired outcome which is profitability.
Air Namibia’s strategic plan is merely a business document and it is not communicated across the organisation. It doesn’t create and inform an organisational culture and its value. Employees work in isolations. Effective supply chain integration requires alignment of goals and objectives in Air Namibia. The airline also requires a communication and information linkage across organisation and process. The implementation of the strategic vision for integrated supply chain is a long and complex transformation in Air Namibia. Hence, usage must be separated into organized activities with engaged and quick execution to accomplish huge and feasible outcomes (Jennings, 2009:20).