The Reasons for the Travelers' Discontent with the Service Quality in Flight - Case Study Example

INTRODUCTION This case study is to evaluate the issues faced by s in aircraft flights and how they affect the airlines business. These days the main focus of most of the companies is to make profit. However customer satisfaction cannot be compromised upon at the cost of profit. According to a research and official facts, 80 percent of customer passengers around the world experience unfriendly and bad flights. These problems increase every year and so are the number of complains. Many people complain that airlines are increasing their airfares but are not keeping customer care as their prior priority. (Sue-the-airline, n.d.) In this paper we will look at the major problems faced by customers and come with ways to overcome them in the light of HR. We will make a human resource strategy plan which these airlines should apply for their proper management. KEY ISSUES The world of airline business is increasing rapidly. The customers demand and expectations of people from airlines are increasing. But the only focus of airlines these days is to increase their market share, and in this bid they tend to neglect many other issues which impact customer satisfaction. According to HR it’s a duty of every company to provide good and satisfactory services to customers. This service doesn’t only promote the business but also makes loyal customer of company. Today’s customers aren’t very happy and content with the services provided by airlines. And most of these issues are related to customer services which eventually come under the human resource department. The ironic thing is that where today’s business world is paying a lot of importance and priority to human resource;, many companies are only focused to make profits. Some of the common issues faced by customers these days by airlines are as following: 1. Unfriendly services and behavior towards customers in flight 2. Security measures are taken in a way that causes difficulties to passengers 3. Staffs of airline services are unfriendly and impolite. 4. Biased treatment to customers on the basis of class that they are traveling 5. Unscheduled transit flights 6. Slow action towards customers problem 7. Unhelpful and hostile behavior towards customer demands and inquires VISION TO PROBLEMS AND SOLUTION As these integrated chips and latest technologies have made things smarter; they have also enabled them to produce things in high quality with cheap investments. (The New York Times) This is also a key criterion of airlines these days. It makes the life of things developed by such technologies short and also less reliable. But airlines are using this as key criteria for their business. They are neglecting the fact that almost every customer expects their flight to improve with the growing technologies around and expects a comfortable cozy flight. So customer’s satisfaction has become important part to look at in the strategic planning and models of airlines. All of these airlines are actually aware of their customers’ complains but maybe they are neglecting them thinking that air flights are the only viable option available to them for fast travelling. Moreover, they are only focused in regaining the fall in airfare market in previous years and maintaining a safe flight. But these two things are not enough for running a successful business in today’s world. (FT Times, n.d.) All these problems come from customer’s services and are concerned with customer’s satisfaction. For this a new human resource strategic plan should be developed. The issues which customers are facing show that the airlines these days are not paying much attention towards customers care. And the fact which they are neglecting and not giving importance is also leading to losses for the company; as all these problems are interlinked. When the customer will be satisfied and content, the airlines company will generate loyal customers which will improve their market value. The first strategy towards this issue is to make a detailed strategy plan for airlines related to customer service which is basically a HR strategy plan. HR STRATEGIC PLANNING A complete comprehensive HR strategy plan is very important for running a successful organization. A comprehensive strategic planning which evaluates all aspects is necessary but what is more necessary is to act on that plan and make it successful by applying it the right way. A strategic planning helps the organization to run in a smooth way with proper functioning. And plus also helps the organization to work efficiently in future under a proper plan; which helps them to improve in reflection of previous strategies. For a successful HR strategy following are the essential mediums which should be present to achieve a long term goals: Placement of right employees and staff Skillful training Right behavior and attitude of staff. (Workplace Performance Technologies, n.d.) Here are the components for a successful and reliable HR strategy plan: 1. Mission statement: HR is a human resource department, which focuses on customers and customer care. So the mission of HR strategy plan also focuses on the customers need and comfort. It primary aim is to satisfy customers. So the statement should be like “contend customers” or “customer’s preferences”. 2. Environmental Scanning: In HR environmental scanning includes the detailed monitoring of external and internal environment to detect the problems related to customers care and how to flush out problems with proper planning. (Morrison, n.d.) So in scenario of an airline HR strategies, the environmental scanning points out the customers’ issues as an external environmental problems and behavior of staff, problems in services and other issues from flight and office in an internal environment scanning. 3. SWOT: SWOT stands for strengths, weaknesses, opportunities and threats. This is a method of SWOT helps to analysis and study the organization in four perspectives. It is the stage of planning in which the key points are evaluated. (Marketing Teacher Ltd, n.d.) So if applying this in HR plans then strength and weaknesses are internal factors of the organization which are completely in the hands of organization to overcome. The strength of Airlines Company is that they are necessary for traveling and are a fast medium to travel. Whereas weakness is the poor services and unsatisfied customers towards flights and services provided. And external factors are opportunities and threats. So the opportunities would be developing market, regaining reputation, improving profit or making place in new market. Whereas treats for airline organization would be a better competition, new competitors, price war , better services and facilities and innovations. 4. Determination of budget: Determining a budget is very important for strategic planning, as according to this improvement, innovations and services would be determined. A year budget is evaluated according to which lists of actions are planned. For airline services, the key actions to take are to improve the services like food, dispatching of luggage, qualities maintenance of seats etc. 5. Strategic intent: This evaluated the major efforts to make by HR. This will includes all the improvement in customers’ services in both flights and offices. A training program for the stuff related to customer care should also be planned which will help to train the staff. Strategic intent brings focus to strategies and provides clarity in following the plan. (Alagse) 6. Migration strategy: Migration strategy gives a time period for achieving the goals which have been set by the organization. The goals are set by priority but with priorities the time line is also evaluated. The task to achieve is set according to priorities and their importance. So the first priorities for airline organization are to train their staff related to customer dealing. And with this improvement in services, do innovative marketing, provide attractive packages and develop the better atmosphere for customers in flights. LIST OF HR SERVICES The human resource strategic planning divides the HR plan into six functional sections. Each of these departments focuses and functions on their primary goals. A brief list of functions and responsibilities they take by are as following 1. HR Directorate: this department looks after the financial management and plans the strategic planning of organization and how it should work. 2. HR Services: this works over recruitments, payments, salaries, registration, and employee services etc. 3. Relations and Management Services: in works on the relationship between customers and staff and managing the healthy link with customers. Provide them information about future new offers and discounts through emails, phone calls or by post. This also aims for consultancy or advices on issues related to customer care. 4. Organizational and Staff Development Services: this focuses at providing workshops, programs and training to staff related to their duties. These services help the staff to understand and develop better which eventually improves their skills in services. It also enables them to learn about how the technology is growing and how important it is to care for customers as this is important for the growth of organization. 5. Safety and Health Services: In airline business the safe and hurdle free flight is very important. So the first priority is to take all the important measures for the save flight. And with that in backup the staff is always ready to tackle any issues which accidently arises and how to keep the customers calm in such situations. Other services includes like care for disables and first aid. 6. Equity and Diversity Services The airline companies targets the wide range of customers and clients. And every client has their own budget. So in the strategic planning of a company, the company should keep diversity of packages but with the equality in opportunities. The behavior of staff should be equally good with every customer. Like offering a specific number of seats with lower rates in peak times and holidays seasons to attract more customers. This will also enable them to develop loyal customers. They concession of fare would be for the customers which are regular and did their reservation first. 7. Policy Planning: For airline company, the part of policy planning should be client centered, it should evaluate the services and advantages provided to clients related to flights, luggage and logistic, booking or refunding of tickets. HR MODEL REASONS FOR SUPPORTING THE NEW HR MODEL Every HR department which is basically connected with organization eventually aims for gaining the profit but to gain the profit the other aims to satisfy customers and tried to gain profit through developing a good reputation with customers. According to Harry Houston, the general manager of company Form-Rite Australia says that any company which wants to take a place in the top market of world has aim at the satisfaction of clients and line management. (human resources magazine) So any organization whether it is private, semi government, government or nonprofit; they all work for the clients. And the market place of the company is compared to other companies is evaluated by the number of clients they have. And how much clients they attract. So for the successful organization and business run, following are the questions which every company should answer: 1. What do us offer/sale and who buys them? This defines the organization’s purpose and what their business is. Airlines offer the flights services to clients and to every person who needs to travel; take their services. Each day new customers enters and so the business in ever growing. So the main business of airlines is to provide good and safe services to clients. 2. What are the objectives to achieve? This question evaluates the priorities of the company and expected out come from their objectives The objective of airline is to improve and provide better services and gain more loyal customers to stable their business. 3. How the management of the organization should be designed to achieve the planed objectives? A brief answer to this will provide an outline and base for the strategic HR planning. To achieve the planned objectives it is important to work on the HR services and improving the client customer relation. (Human resources magazine, n.d.) The new HR model basically revolves around clients need and satisfaction. The primary goal of this HR strategic model is to satisfy clients through which the bi product itself will be the profit of the company. As the clients’ contentment will increase the numbers of loyal customers will also increase. So improving the level of services and providing the better atmosphere to client in both flights and offices will bring a vast change it market of company. Customers prefer those companies with which they are comfortable to get along and those who have good services, so the friendly and hospitable attitude of staff towards client will bring a noticeable change in the value placement of the company in market. So that’s why this HR model aims for the contentment of client and focuses on improved HR services towards customers. This model also aims for the development of innovating offers and services, as this will also attract clients and will increase the market value of company. These innovative services or offers can involve the different packages of flights, bonus and concession for regular and loyal customers. These innovative services are also linked with clients benefits as concession in airfare for regular customers will provide benefits for customers and customers will prefer the same airline again. But if the services would be not of standard then customers will prefer to pay a little more money for better services. The airline in this HR plan basically aims to increase the number of loyal customers through developing a strategy which is hospitable towards client and provides them various benefits. The aim of gaining profit is also linked with the customer care. The airline aims in increasing the number of customers with constant rate and with better services; the investment made for such offers will be compensated through the increasing number of clients. LIMITATIONS Following are the possible limitation of this HR model 1. It is time taking to apply 2. Regaining the reputation in market is a tough task. 3. The output of investment for regaining the market needs time, as customers gain trust slowly and that’s why the payback of investment might be slow in first step. 4. It needs lots of training session for the training of staff which will consume much time 5. It focuses at client and has somewhat neglected the prior aim or every organization which is profit making. 6. Innovating new offers need lots of brainstorming and ideas 7. Applying the new ideas need marketing to attract customers. All these limitations are not very subtle but these limitations can be overcome easily. They can’t be hurdle for a company in the path of success. Even the time taking task like training of staff can be done in groups and the difference in staff dealing will be definable be noticeable by customers. SUGGESTIONS To make this HR plan successful the HR department should work in steps; with the systematic model of learning and training. It has following five steps. 1. Analysis 2. Design 3. Develop 4. Implement 5. Evaluate So while applying the new client centered HR plan; the organization should follow and regulate it through these five steps. Following these five steps while applying the new strategic HR plan will help it become more productive So first the organization needs to evaluate the problems and then analyze the possible solutions. And then design a program for the solutions. Then the implementation of design is done with proper evaluation. Working with proper planning and strategy; the implementation of new plan is not even difficult. The entire drawbacks can be overcome if proper planning is followed. The plan developed above will give a new look to the airlines company and will help them to regain customers goodwill. Bibliography Alagse. Alagse Insights. n.d. . [Retrieved 24 December 2010] FT Times. FT Magazine. 25 Juns 2010. . [Retrieved 24 December 2010] Human Resources magazine. Opinions. n.d. . [Retrieved 24 December 2010] Marketing Teacher Ltd. lesson-store. 2010. .[Retrieved 24 December 2010] Morrison, James L. Environmental Scanning. 3 Septeber 2005. . [Retrieved 24 December 2010] Sue-the-airline.com. Airline-problems. 2010. 24 December 2010 . [Retrieved 24 December 2010] The New York Times. Technology. 7 June 2006. . [Retrieved 24 December 2010] Workplace Performance Technologies. Member Content . 2010. . [Retrieved 24 December 2010] Freeman, J.M. (1993), “Human resources planning-training needs analysis”, Personnel Management, Vol. 34 No. 3, pp. 32-4. Gro¨nroos, C. (1990), “Marketing Redefined”, Management decision, Vol.28, No.8. Gro¨nroos, C. (1994), “From marketing mix to relationship marketing: towards a paradigm shift in marketing”, Management Decision, Vol. 32 No. 2, pp. 4-21. Gro¨nroos, C. (1997), “Keynote paper From marketing mix to relationship marketing - towards a paradigm shift in marketing”, Management decision, Vol.35, No.4, pp: 322-339. Gross, A.C., Banting, P.M., Meredith, L.N. and Ford, I.D. (1993), Business Marketing, Houghton Mifflin, Boston, MA. Harris, L.C. (1999), “Barriers to developing a market orientation”, Journal of Applied Management Studies, Vol. 8 No. 1, pp. 85-101. Judd, V.C. (1987), “Differentiate with the 5th P: people”, Industrial Marketing Management, Vol. 16, pp. 241-7. Judd, V.C. (2001), “Toward a customer-orientation and a differentiated position in a nonprofit organization: using the 5th P – people”, Journal of Nonprofit & Public Sector Marketing, Vol. 9 No. 1/2, pp. 5-17. Read More