The Impact of TQM on Training and Development on Costumer Services Staff in Saudi Airlines - Research Proposal Example

The impact of TQM on Training and Development on Costumer Services staff in Saudi Airlines Name Institution Executive summary Quality management involves the overseeing of tasks and activities that are necessary to maintain the level of excellence any organization desires. In the rapidly growing and highly competitive airline industry, quality management is essential in ensuring that the quality of service delivered to the customers is up to the expected standards. Being one of the major players in the region, Saudi Arabian airlines has an established quality management framework that monitors and evaluates the quality of service offered to the customers. Quality management in this firm has several impacts on the development and training of the customer service staff. The impacts include innovation in terms of service delivery and application of the latest technology in the training process and the whole process of human resource management. Tables of content Executive Summary………………………………………………………………………..2 Background…………………………………………………………………………………4 Statement of the Problem……………………………………………………………………4 Research questions…………………………………………………………………………..5 Literature review……………………………………………………………………………..5 Research design………………………………………………………………………………12 Research method……………………………………………………………………………...13 The scope of the project………………………………………………………………………13 Conclusion……………………………………………………………………………………18 References……………………………………………………………………………………..19 Background Each organization treats quality as an important aspect of its operations. To build a brand name, quality management is a very crucial component. In the aviation industry, quality in service delivery is essential in ensuring the success of any airline. Quality management in airlines basically involves customer satisfaction, growth and learning. It can be defined as the overseeing of tasks and activities that are necessary to maintain the level of excellence any organization desires. In the airlines industry, areas where excellence is desired include delivery of services, customer and employee safety and customer satisfaction. What impact does Quality management has on training and development of the customer service staff? Better quality management models ensure higher levels of excellence. Training and development aims at ensuring better performance of an organization by focusing on the individuals within it and bettering their skills. It thus follows that quality management has a positive impact on the development and training of employees. Additionally, both human resource management practices and quality management practices affect the performance of an organization. Statement of the problem Quality management practices are important in all competitive industries. They ensure that an organization improves and maintains the quality of products they offer. The available literature in this area mainly focusses on the integration of quality assurance and strategic management. The airline industry is very competitive and in recent years, it has become an important player in the global economy. Given the importance the industry plays in the global economy, it is necessary to conduct a study that looks into how quality management has impacted training and development especially in customer service staff. Research questions The main research question this study aims to answer is what effects does quality management practices have on training and development of employees in Saudi Arabian airlines? The study will further address the following research sub-questions. 1. What quality management practices do the airline has in place? 2. What qualities / characteristics of employees does the airline aim to achieve? 3. How has quality management, training and development affected the airline’s performance and delivery of service? Literature review The airline industry is important in the global economy in that it is required in the transportation of goods and people around the world. It is a sensitive industry in that many factors influence it. The factors that influence the airline industry include competition, wars, global business cycles and government regulations (Vaara, Kleymann & Seristoe, 2004). There are three main characteristics of the airline industry that influence Human Resource Management in one way or another. The three are high competition levels in the industry, service orientation and the industry’s safety sensitivity (Appelbaum & Fewster, 2002). The airline industry is highly competitive and over time, has become exposed to competition (Gudmundsson, 2002). Deregulation by various governments, which has been taking place in recent years, is the main reason why competition has stiffened (Eaton, 2001). The industry has transformed from being non-labor-sensitive to being very labor sensitive. This has had several impacts on labor-management and relations to it such as part time positions and redundancies (Gil, 1990). In addition to that, deregulation has enabled privatization of most functions and the entry of private airlines. It has made it possible for Low cost carriers to enter into the industry thereby increasing the price pressure (Lawton, 2002). Low Cost carriers have resulted to an increased competition given the cheap fares they offer. These carriers are able to offer the low fares by operating in second tier airports, leasing of aircrafts as opposed to purchasing them and by selling tickets through direct channels,especially the Internet (Blyton et al. 2003). The market in the airline industry is highly competitive and the key to success in most of the airlines is exemplary customer service (Wang, Evans, & Turner, 2004). All airlines have an objective of providing their customers with the the highest level of service. This is not only due to profitability, but also to improve customer satisfaction and the airline’s brand name. Over time, Customers have increasingly continued to demand better services from airlines (Appelbaum & Fewster, 2002). Blyton et al. (2001) is of the view that since most leading airlines offer a near same level of service, most of the airlines are now seeking ways of having a competitive edge over their rivals. Most of the airlines now focus on their employees to deliver quality service. This means that the employees are the representative of the firm’s core competence as opposed to products, machine procedures, which were the representatives in the past. In addition to that, service delivery has become an important evaluator between airlines that offer the average products and the airlines whose products are excellent (Appelbaum & Fewster, 2002). Service delivery is crucial in the airline industry given the frequent and close interaction between the cabin crew staff and the customer. This type of interactions usually calls for high levels of professionalism in most instances (Eaton, 2001). Gitlow (2001) defines quality as a predictable level of dependability and uniformity which is suited to the market and at low cost. To achieve greater quality levels, management needs to optimize various stakeholders who depend on each other; they include customers, employees, regulators and investors. There are three main types of quality essential, quality of design, quality of performance and quality of conformance (Gitlow, 2001). Quality of design focuses on the characteristics of the services of products that best suit the market at a given product. It focuses on the trends and the needs of customers. Quality of performance on the other hand involves areas such as consumer research and performance analysis. Study of after sales services, reliability of the employees and maintenance trends helps study quality of performance. Quality of conformance describes the extent to which a business offers the services that are uniform and dependable. Quality management provides a competitive approach that focusses on customer satisfaction. Its main aim is success in the long term. Quality management involves every employee in the organization and their endeavor to enhance the services or product offered by the organization. Total quality management enables the business process to be streamlined so that the customers are provided with an improved experience. In the service industry where airlines fall under, service quality and pricing plays a crucial role in ensuring customer satisfaction (Suhartanto & Noor, 2012). The increasing pace of globalization has led to an increased demand for transport across the globe. The airline industry provides a quick and efficient mode of transportation across different continents. Over the past few years, the airline industry has experienced exponential growth especially with regard to the number of players and importance. The industry plays an important role in supporting tourism activities, world trade and international investment (Suhartanto & Noor, 2012). Their exist high levels of competition between different airlines in the industry. In addition to that, an increased number of customers value exceptional service quality. Various governments, in response to the fast pace at which the industry is growing, have come up with various measures that aim at deregulating the industry. The measures include enabling the formation of private airlines and applying of stringent rules on flight safety. This has made various players in the industry continuously evaluate their processes and innovate their products and the technology used in delivery of services. In the airline industry, profitability is mostly determined by customer satisfaction (Fojt, 2006). Business expansion is only possible if an organization is able to retain business through customer satisfaction. Quality management in the airline sector mainly looks at the quality of service offered. Service quality is determined by competition within the industry and technological development. Brand loyalty is widely determined by the quality of service which is a customer’s judgment of the total superiority of a service or a product . Management can ensure that the culture of quality management is improved by focusing on the improvement of the company’s products and services. In addition to that, the company should not relay on inspection to determine and achieve quality. Training is also important in ensuring development and retaining of valuable staff members. Apart from that, employees should be offered a good working environment. Quality practices have over time proved to improve the performance of various organizations. Quality management has thus been used as a foundation for generating an advantage in terms of competition. The international quality study by the American quality foundation and Ernst Young tabled results that showed that quality management has the highest effect on entities that already have a good performance record (International Quality study, 1992). Quality management practices are mostly influenced by human resource management practices. Both Human resource management and total quality management have an impact on the quality of service and products a given firm deals in. Abu-Doleh (2012) in his findings points out that human resource management practices such as recruiting, selection, training, development and planning of employees has a great impact on how quality management practices are implemented. In addition to that, he points out that both total quality management and human resource management affects the quality of organizational image, organization’s performance and customer satisfaction. Human resource management involves the management of people within an organization’s internal environment. Total quality management is necessary in sectors that are highly competitive. Total quality management brings together several management principles and merges them into one systematic framework. The main relationship between Total quality management and human resource management is that programs in Total quality management can lead to an increased importance of Human resource management. Human resource management on the other hand provides employee training facilitates employee empowerment and communicates to workers about their role in ensuring quality services and goods. Human resource management has a crucial role in the implementation of total quality management programs. It is able to improve group awareness, improve human relationships, improve the capability of employees and improve the attitude of employees. The aviation industry is dynamic and its growth is rapid. Given the constant changes in this industry, the human resource managers have to be on the lookout for new trends and skills need in various positions. The human resource manager must therefore come up with a system that would ensure regular evaluation of various needs. It should also be noted that the airlines industry has a wide range of positions that range from pilots to executives to flight attendants. HRM is crucial for TQM success in any organizational activities. There are a number of differences between quality management and human resource management in terms of nomenclature and practices considered. Practices considered include empowerment, training and teamwork. There is great volume of literature that pinpoints the important role human resource management plays in the implementation of Quality Management practices in any given organization. Firms that aim to increase their performance and quality of services they offer have to dedicate their efforts into implementing TQM and be aggressive in human resource management. A total quality system is made up of two main systems: the technical system and the management system with the management system being concerned with human resource management issues (Evans and Lindsay 1996). One major impact of Total Quality Management, from a Human Resource Management perspective is that it puts great emphasis on training. Total Quality Management views error and mistakes as resulting from untrained workers. Additionally, the errors and mistakes come about as a result of the quality of service the firm or organization offers. Training must thus be provided to workers in order to achieve quality service. Experimental designs and control groups are used to evaluate training in some of the organizations that utilize total quality management. Total quality management and Human resource management are quite similar on training. However, there exists a difference in performance evaluation. It should however be noted that most of the total quality management practices are applicable in Human resource management. When both total quality management and human resource management are applied efficiently, it can result to high quality service, performance and organizational growth. Training and development aims at equipping employees with the required skills, knowledge, skills, qualifications, and the right attitude to go about their jobs in the most effective way that would ensure corporate goals are achieved. Training makes it possible for firms to enhance their ability to attract and retain the employees who are talented in their areas of expertise. As opposed to pilots and plane technicians, the cabin crew members require an educational background that is quite standard (Gil, 1990). Training of pilots and plane technicians in most cases involves specialized safety training communication training, emergency management, decision making and teamwork. It should be noted that this varies from airline to airline and that some airlines have their own training schools where pilots, technicians and cabin crew members are trained. Pilots are trained differently from cabin crew members in that their training is more stringent and prolonged. Pilots have to achieve a compulsory number of flying hours in order to qualify to fly certain planes. In addition to that pilots have to pass a number of theoretical and practical exams (Eaton, 2001). Different airlines use different airplanes. Training of pilots is therefore company-specific. Most airlines permanently retain their pilots given the large investment and the great skills required to perform the piloting duty. Training offers any organization a perfect opportunity to increase the knowledge base of its employees. However, the development opportunities are considered expensive by most employers. In addition to that, employees usually miss the working time while on training sessions and this may result to labor shortage and delay in delivery of certain services. It should however be noted that training and development is important to the organization and the employees despite the time and money put into it. Training and development plays several important roles which include addressing employee weakness, improving the performance of employees, ensuring employee satisfaction and ensuring consistency (Frost, 2014). A training program makes it possible to strengthen the skills of every employee within and organization. A development program on the other hand makes it possible for all employees to have uniform knowledge and skills. This is important as it eliminates any weaknesses in terms of service delivery. Training is important since it makes it possible to have employees who are fully knowledgeable and who can easily fit into various roles in case of an unexpected shortage. In addition to that, it enables employees to work as a team or individually without supervision or help (Frost, 2014). In addition to that, training betters the performance of various employees and enables the employees to have confidence in whatever task they are doing. Continuous training also makes it possible for the employees to adapt to the constantly changing environment in the industry thus making it possible for the organization to compete effectively in the ever changing market. A well planned training and development program makes it possible for the employees to be consistent in their work and get background information on other industries. In addition to that, it exposes employees to information regarding procedures and expectations of the company. Training and development programs also make employees feel appreciated thus plays a big role in employee satisfaction (Frost, 2014). Research design To respond to the research questions secondary data will be used. This includes raw data and published works in this area of study. Secondary data collection methods will be used to collect secondary data. Secondary sources of information to be utilized include books, Journals, magazines and newspapers. After finding and going through the secondary data, it will be evaluated by setting up the data set variables together with their definitions and explanation of each variable. The data set variables will then be used to place all the collected data in a graphical or tabular form. This will make it easy to make comparisons and reach a final decision more easily. Additionally, it will give the findings a better general context. Saunders and Philip argue that secondary data is able to provide a conceptual and comparative data, which in turn makes it possible to triangulate our finding. The study will also utilize qualitative data method to answer the research questions. Qualitative data will be collected and analyzed in order to develop an appropriate theory. Research Method This study will be conducted at the Saudi Arabian airline. The structure of this organization is centralized and is split into 11 separate units. Each unit is made up of a number of business entities with each having a CEO, a chief financial officer and a HR head. This study aims to focus on the flight and cabin crew unit. The sampling strategies utilized include judgmental, convenience and quota sampling. The researcher, with the aid of the human resource head in the flight and cabin crew unit will distribute questionnaires by mail. The questionnaire is self-administering and takes about 15 minutes to complete. The questionnaire did not limit any respondent on the basis of time and came with all the necessary instructions to the respondents The scope of the project 1. Saudi Arabian airlines The Saudi Arabian airline is the Saudi Arabian flag carrier airline which operates as Saudia. The national carrier is based in Jeddah and operates both domestic and international flights. Its international destinations include Africa, Asia, the Middle East, North America and Europe. Stiff competition and the ever growing airline industry has seen the Saudi Arabian Carrier drop from being the largest airline in the region to being the third largest. It’s main Competitors are the Fly Emirates and Qatar Airways. The airline employs around 35,000 people and according to the airlines website, they seek to provide customers with the highest level of service, safety and comfort. The airline has 11 different business units. The units include cargo, airline service and an aviation academy (SAP customer service story, 2010). Each of the 11 units has its own human resource department. Customer service is the main concern for the airline given the competitive market in which it operates. The airline incorporated total quality management into its operations in 1991 (Al- Tahtani & Al-methheb, 1999). At the beginning, total Quality management was only practiced in Customer services and human resource in Jeddah and Riyadh. The total quality management programs for the airline were development within the different departments and in conjunction with certain consultants. The training was performed at home in most cases with most of the employees understanding the techniques. The quality management department is not only concerned with the quality of service offered, but is also concerned with flight safety and the quality of human resource available (Al- Tahtani & Al-methheb, 1999) The Saudi Arabian airline uses SAP software and technology to give employees the tools they need to be more effective. This software has made it possible for the employees to access e- learning while attending to customers at the same time. This eliminates time wastage and makes it possible for the employees to learn while on the job. The system adopted by the airlines makes it possible for all the employees to access training materials and develop their skills. The system makes it possible for various HR departments to coordinate and effectively evaluate the performance of various employees (SAP customer success story). Training and development in Saudi Arabian Airlines is one area of Human Resource Management in which policies have been laid down and employees have been directed on the company’s expectations. For the training and development programs, the director of training and development at the airline meets with the human resource managers of the 11 units that make up the organization. The managers then discuss the type of personnel needs each unit requires and the kind of training needed for the employees in each unit to be trained. The most important level of employees is the customer service staff which directly interacts with customers. They include cabin crew members, ground operators and pilots. The customer service staff thus needs up to date training since they have to be familiar with the recently developed products and processes. This includes ticketing, baggage handling and the check-in facilities. Apart from that, general airline information and its partners information, as well as the advantages of training and development is usually taught to all Saudi Arabian Airline employees. The minimum training standards are set by the alliance in which the airline is affiliated to. The training methods design and form are however determined by the airline itself. Apart from focusing on the processes and products offered by the company, the training offered also looks at effective teamwork and inter-group conflict. Intercultural awareness seminars are important given the diverse cultures in which the company operates in.Though it is important in the airline industry, the airline lacks a trainee program that focusses on international employees. It is also important to note that the airline has an academy that deals in training of pilots, cabin crew members and plane technicians. Recently, the airline signed an agreement with Boeing which allows both the organizations to collaborate in terms of training and service delivery. The agreement will make it possible for the airline and the aircraft maker to work together in terms of aircraft maintenance and pilot training, rotorcraft support, leadership and management and training and manufacturing. The agreement focusses on the expansion of the two companies’ presence in the region and development of aerospace skills in Saudi Arabia (Breakingtravelnews, 2014). 2. Quality management practices To achieve effective quality management, human resource management practices must be employed. Training and development are an example of human resource management practices. Firms that have already employed quality management practices need to enhance various human resource management practices in order to improve on the quality of services they offer. Most airlines strive to satisfy the needs of the customers. Airlines face a number of challenges that range from customer satisfaction to stiff competition. Quality management is thus important to most airlines including the Saudi Arabian airlines. Quality management makes it possible for airline to improve the quality of their services enable the airlines to meet the expectations of their customers. Service quality is the main determinant of an airlines’ competitiveness and is thus a necessary component in the airline industry. Airlines that pay close attention to their quality of service are most of the times differentiated from those that do not and therefore have an upper hand in terms of competitiveness. This is the case in most international airlines although some people are of the view that prices are the major determinant of the airlines preferred by customers. However, if quality is not managed, there will be no added value and assurance to the airlines (Peters, 1999). Quality management is therefore crucial in achieving success and a competitive edge over other players in the airline industry. Since quality management focusses on the delivery of quality service, it has a great impact on development and training. To achieve the expected quality of service, full focus should be on the customers. The training and development programs would thus be focused on the customers the best way to satisfy them. Training and development programs that focus on customers ensure that the services offered by the airlines are updated from time to time in order to meet the expected standards set by customers. It is important to note that poor performance by most firms in the service industry is usually due to inadequate knowledge of what the customers expect from them. It is important that airlines evaluate and consistently monitor what the customers think about their services and evaluate this with respect to what the customers expected. According to Gilbert and Wong (2003), the level of satisfaction acceptable to all customers is attained when the expectations of the customers have been met or surpassed. To ensure that customers are fully satisfied, everybody within the organization is require to highly value the customers and prioritize them first by working towards satisfying their needs and meeting their expectation. Total Quality Management makes it possible for innovation to take place since employees are able to be empowered to make decisions that would have an impact on their careers. Training and development also plays an important role in innovation in that employees are able to think beyond their working environment. Airlines require a flexible management structure that would allow different units to cooperate in order to come up with services that are innovative. It is important to note that empowerment, intensive cooperation and open communication makes it possible for innovation to take place. The airline industry basically involves a network of activities brought together by different operating units. Some of these units are usually outsourced. In Saudi Arabian airlines, the catering unit is outsourced in that the services are provided by a private company. Outsourcing is usually due to the regulations in the industry and also due to lack of expertise in certain areas and the need to make use of the expertise of the specialized parties. Seeking the services of specialized firms is also important in achieving economies of scale. . Total quality management implementation involves the acquisition of the different units involved in the delivery of services into the quality management practices. This should be championed by the airlines’ leadership. Conclusion Quality management in airlines basically involves customer satisfaction, growth and learning. It was defined as the overseeing of tasks and activities that are necessary to maintain the level of excellence any organization desires. Excellence is desired in areas such as delivery of services, customer and employee safety and customer satisfaction. The airline incorporates quality management systems in its operations given the competitive nature of the airline industry. Quality management has had various impacts on the training and development programs offered by the airline. Apart from encouraging innovation, it has made it possible for employees to attend training and development programs through e-learning. References Peters, V. 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[online] Retrieved from: http://www.saudiairlines.com/portal/site/saudiairlines/menuitem.d9a467d070ca6c65173ff63dc8f034a0/?vgnextoid=3d192caa08404310VgnVCM100000d59618acRCRD [Accessed: 13 Feb 2014]. Frost. P. (2014). The importance of training & development in the workplace. [online] Retrieved from: http://smallbusiness.chron.com/importance-training-development-workplace-10321.html [Accessed: 13 Feb 2014]. Stupak, R. J. & Leitner, P. M. (2001). Handbook of public quality management. New York: Marcel Dekker. Suhartanto, D. & Noor, A. (2012). Customer satisfaction in the airline industry: the role of service quality and price. [e-book] http://www.academia.edu/3215480/Customer_Satisfaction_in_the_Airline_Industry_The_Role_of_Service_Quality_and_Price [Accessed: 13 Feb 2014]. Read More