Service Management - Case Study Example

Service management - Fly Dubai airline Table of contents 0 Introduction 3 1 Objective of the study 3 2 Service firms, description and types 3 2.0 Fly Dubai airline 3 2.1 Profile and business activities of the company 3 2.2 Quality of service delivered by the company 3 3.0 Dimensions of service quality 4 3.1 ‘Walk-through audit’ – description and use 4 3.2 Service quality – description and dimensions 5 3.3 Tools available for analyzing service quality 5 4.0 Service quality improvement 6 4.1 Suggestions for the improvement of service in Fly Dubai 6 5.0 Conclusion 6 6.0 Bibliography 7 7.0 Appendix 8 (Words 1879) 1.0 Introduction 1.1 Objective of the study The evaluation of the quality of services provided by firms in different sectors can be a challenging tasks; firms involved in the provision of services of various types are likely to set different standards for ensuring the high quality of their services. Current study aims to show the various dimensions of quality in services; at the same time, tools for analyzing the quality of services are presented. Reference is made, as an example, to a specific company, the Fly Dubai airline. The above firm’s services are described and evaluated so that the concept of quality of services, as applied in modern firms, is fully understood. 1.2 Service firms, description and types The key objective of service firms is the provision of services of various types to the public. Different criteria have been used in the literature for describing service firms. According to Faulkner & Campbell (2006) service firms ‘are concerned with providing customers with an experience’ (Faulkner & Campbell 2006, p.504). Moreover, Jin (2005) notes that the service firms represent a high percentage, about 60%, of ‘the markets of developed countries’ (Jin 2005, p.37). In the study of Lamb, Hair & McDaniel (2011), the term service is described as follows: ‘a service is the result of applying human or mechanical efforts to people or objects’ (Lamb, Hair & McDaniel 2011, p.187). A key characteristic of service industries seems to be their volatility to local demographics, meaning the differences in their performance under the influence of the demographics of each market. Onkvisit & Shaw (2004) note that service firms are categorized as follows: ‘consumer and business service firms’ (Onkvisit & Shaw 2004, p.300). The first category incorporates those firms providing services directly to the consumers, such as a hairdressing; the second category incorporates a high range of service firms, including firms offering legal, accounting or advertising services (Onkvisit & Shaw 2004, p.300). 2.0 Fly Dubai airline 2.1 Profile and business activities of the company Fly Dubai is a low cost airline based in Dubai (Fly Dubai 2012). The firm was established in 2008 (Fly Dubai 2012). The firm offers a wide range of destinations, including India, Kuwait, Syria, Egypt and Jordan (Fly Dubai 2012). Recently, the firm ordered 54 new aircrafts, which, along with the firm’s existing aircrafts, will help the firm’s fleet to significantly increased (Fly Dubai 2012). 2.2 Quality of service delivered by the company In Fly Dubai, the quality of services is among the organization’s objectives. Still, failures have not been avoided. According to a Customer Scoring published by SkyTrax in 2012, Fly Dubai is scored with 6.7 out of 10 in regard to the quality of its services (Figure 1, Appendix). Different reasons are used for justifying the above score: for example, one of the customers, the first in the list of customers participated in the relevant scoring, highlights the delay in departure as one of the firm’s major problems (Sky Trax 2012); himself, he faced a delay of 5hrs when decided to travel using Fly Dubai (Sky Trax 2012). Another customer, 5th in the list, notes that customer service in Fly Dubai is ‘non-existent’ (Sky Trax 2012). Again, the delay in departure, as resulted to the missing of the connection flight, is highlighted as the firm’s key problem (Sky Trax 2012); the lack of provision for customers who had faced delays or cancellations in flights is noted as another weakness of the firm’s customer service (Sky Trax 2012). The above failures should not have a decisive role when evaluating the firm’s overall performance in terms of its customer services. Indeed, according to a report published in AME Info, in the‘2012 Business Traveller Middle East Awards the firm was named as Best Low-Cost Airline Serving the Middle East’ (AME Info 2012); the above nomination indicates the efforts of the firm in regard to the quality of its services. Of course, failures, as indicatively presented above, are difficult to be eliminated. As the CEO of the firm noted, the quality of services is one of the firm’s key advantages (Menann 2012). It is made clear that the quality of the firm’s services is not limited to the provision of online booking facilities, see the firm’s website, or offers but also to the management of customers’ demands and complaints. 3.0 Dimensions of service quality 3.1 ‘Walk-through audit’ – description and use The ‘Walk-through audit’ (WTA) is ‘an appraisal of a service operation undertaken to evaluate and improve the service’ (Walker 2010, p.192). The WTA is used as a tool for checking all aspects of a service firm’s performance and identify those organizational processes that need to be improved (Walker 2010, p.192). On the other hand, Mainardi (2011) explains that a WTA requires that the auditor ‘monitors closely every part of the audit process’ (Mainardi 2011, p.45); it is implied that the WTA can be time consuming compared to other types of audit. Thumann & Mehta (2008) note that the WTA is extensively used in the energy sector, where two other types of audit also appear: ‘the mini audit and the maxi audit’ (Thumann & Mehta 2008, p.33). Wells (2004) focuses on a key characteristic of walk-through audits: the physical presence of the auditor at the place where the processes under inspection take place. More specifically, according to Wells (2004) the WTA is developed as follows: the auditor inspects the facility himself, accompanied by employees, in order ‘to detect any problems in regard to the facility’s processes’ (Wells 2004, p.305). In other words, a WTA requires not only the detailed examination of all processes under examination but also the visit of the auditor to the company’s facilities; a WTA cannot be developed from distance (Wells 2004). 3.2 Service quality – description and dimensions The concept of service quality can have various aspects; in certain firms service quality is related to the ability of a firm to promote innovation while in others, service quality involves in ‘the repetitive application of rigid procedures’ (Lowendahl 2005, p.44), as for example in the case of McDonald’s (Lowendahl 2005, p.44). Different criteria have been used in the literature for describing service quality. There are theorists that promote a customer-based explanation of quality, noting that service quality is closely related to customer satisfaction (Brown and Swartz 1989, in Williams & Buswell 2003, p.47). From a similar point of view, Crouch (2004) notes that quality, in regard to services, can be related to customer expectations (Crouch 2004, p.193). There is also the view that service quality ‘is related only to excellence’ (Peters 1987, in Williams & Buswell 2003, p.47). In the context of the above view, service quality has been characterized as ‘the degree of excellence intended that meets customer requirements’ (Williams & Buswell 2003, p.47). The introduction of the service quality standards ISO 9000, that apply internationally, has resulted to the increase of quality of services in the international market (Pizam & Mansfeld 1999). Service quality, as described above, has a series of dimensions, which are, mostly, related to the customer’s perceptions in regard to the quality of services of a particular organization (Pizam 2010, p.279). From this point of view, the following dimensions of quality are highlighted in the literature: ‘reliability, responsiveness and assurance’ (Pizam 2010, p.279-280). These dimensions would be analyzed as follows: reliability is the ability of a service firm to provide to its customers the services promised to them, in terms of quality and elements (Pizam 2010, p.279); responsiveness denotes the willingness of the firm to respond to the needs of its customers (Pizam 2010, p.279); moreover, assurance refers to employees and their ability ‘to inspire trust’ (Pizam 2010, p.280). In practice, these dimensions are used in order to evaluate the quality of services provided by a service firm. 3.3 Tools available for analyzing service quality Service firm worldwide can use various tools for analyzing quality. The blueprinting process is often used for analyzing quality of services. The specific tool is based on ‘the lines of visibility and the failpoints’ (Brown 1991, p.74); the lines of visibility is a technique focusing on the separation of the firm’s processes into two categories: ‘those processes visible to customers and those that are not visible’ (Brown 1991, p.74). As for failpoints, this technique denotes the identification of those organizational processes that ‘have many chances to fail’ (Brown et al. 1991, p.74). Another tool, which is often used for analyzing quality, is the SERVQUAL (Carmona & Sieh 2004, p.350); SERVQUAL is based on surveys measuring quality of services using five dimensions: the three dimensions of service quality presented above, in section 3.2, plus the following two dimensions: ‘empathy and tangibles’ (Carmona & Sieh 2004, p.350). 4.0 Service quality improvement 4.1 Suggestions for the improvement of service in Fly Dubai According to the issues discussed above, the quality of service in Fly Dubai should be improved, so that the organization’s performance in regard to the quality of its services to be standardized. At the first level, a Walk-through audit (WTA) should be used across the firm’s facilities, so that all potential failures related to the firm’s daily processes to be identified. Emphasis should be given on the following points: a) limitation, as possible, of flight delays, b) increase of support provided to customers in case of delays or cancellations of flights and c) improvement of communication with customers; for example, customers should be aware in advance in case of a potential cancellation or delay of a flight. Also, the complaints of customers should be handled more effectively, so that problems are resolved early and the long-term effects of the failures on the firm’s performance to be avoided. The introduction of an appropriately customized IT system, could possibly help the firm’s managers to identify early all gaps in regard to the firm’s daily processes, taking initiatives for limiting their effects on organization’s performance. Also, the improvement of the firm’s website would help towards the improvement of communication with customers and the significant enhancement of customer satisfaction. Such practice should also help to the improvement of the firm’s image in the global market; for example, the incorporation in the firm’s website of chat options or social networking. 5.0 Conclusion The quality of services in Fly Dubai seems to be satisfactory. The recent rewarding of the organization, as analyzed above, for the quality of its services verifies the above assumption. However, it is clear that certain points of the firm’s customer services policies should be changed, aiming to eliminated failures, as reflected in the views of the firm’s customers (presented in section 2.2). After evaluating the firm’s services using the three dimensions of service quality, as described in the study of Pizam (section 3.2 above), the following assumptions can be made: the quality of the firm’s services can be criticized as of its reliability; however, in terms of responsiveness the firm’s services can be characterized as quite satisfactory. In terms of assurance also the performance of the firm can be considered as high. In other words, the firm should emphasize more on improving the overall effectiveness of its customer services, emphasizing on the points described in section 4.1 above. Failures in regard to particular points of the firm’s daily processes could negatively affect the firm’s image in the market, especially in the long term. 6.0 Bibliography AME Info (2012). Flydubai named Best Low-Cost Airline Serving the Middle East at the 2012 Business Traveller Middle East Awards. Retrieved in May 9 2012 from http://www.ameinfo.com/flydubai-named-low-cost-airline-serving-middle-298911 AME Info (2012). Flydubai celebrates opening of new Flydubai Travel Shop in Abu Dhabi with partner Al Masaood Travel and Services. Retrieved in May 9 2012 from http://www.ameinfo.com/297172.html Brown, S. (1991). Service Quality: Multidisciplinary and Multinational Perspectives. New York: Lexington Books. Carmona, M., & Sieh, L. (2004). Measuring Quality in Planning: Managing the Performance Process. Oxon: Taylor & Francis. Crouch, G. (2004). Consumer Psychology of Tourism, Hospitality and Leisure. Oxfordshire: CABI. Faulkner, D., & Campbell, A. (2006). The Oxford Handbook of Strategy. Oxford: Oxford University Press. Fly Dubai (2012) Corporate website. Retrieved May 9 2012 from http://www.flydubai.com/english.aspx Jin, Z. (2005). Global Technological Change: From Hard Technology To Soft Technology. Bristol: Intellect Books. Lamb, c., Hair, J., & McDaniel, C. (2011). MKTG 5. Belmont: Cengage Learning. Lowendahl, B. (2005). Strategic Management of Professional Service Firms. Copenhagen: Copenhagen Business School Press DK. Mainardi, R. (2011). Harnessing the Power of Continuous Auditing: Developing and Implementing a Practical Methodology. Hoboken: John Wiley & Sons. Menann (2012). “Consistent, quality service makes flydubai a well-loved brand,” says Sheikh Ahmed Bin Saeed Al Maktoum. Retrieved in May 9 2012 from http://menann.com/article/“consistent-quality-service-makes-flydubai-well-loved-brand”-says-sheikh-ahmed-bin-saeed-al Onkvisit, S., & Shaw, J. (2004) International Marketing: Analysis and Strategy. London: Routledge. Pizam, A. (2010). International Encyclopedia of Hospitality Management. Oxford: Butterworth-Heinemann. Pizam, A., & Mansfeld, Y. (1999). Consumer Behavior in Travel and Tourism. London: Routledge. SkyTrax (2012) FlyDubai Passenger Reviews and FlyDubai Passenger Trip Reports. Retrieved in May 9 2012 from http://www.airlinequality.com/Forum/flydubai.htm Thumann, A., & Mehta, P. (2008). Handbook of Energy Engineering. Lilburn: The Fairmont Press, Inc. Walker, J. (2010). Service, Satisfaction and Climate: Perspectives on Management in English Language Teaching. Bingley: Emerald Group Publishing. Wells, J. (2004). Solutions for Energy Security & Facility Management Challenges. Lilburn: The Fairmont Press, Inc. Williams, C., & Buswell, J. (2003). Service Quality in Leisure and Tourism. Oxfordshire: CABI. 7.0 Appendix Customer Review scoring : Flydubai Figure 1 – Fly Dubai scoring in terms of service quality – 6.7 out of 10 (Source: SkyTrax 2012) Read More