Institution of 'corporate
culture' in Jordanian air transport
Corporate culture can be defined as a package of fundamental
attitudes, practices and values, which should be institutionalized as an integral
aspect of the modus operandi and the policies of public and private corporations...
By Mohammed Asi, Special to The Star
JORDAN (Star)
- Concerted efforts are under way throughout a majority of economic sectors in
the Kingdom all geared toward yielding positive economic growth. Thus far few
of the efforts employed have reflected tangibly on the lives of ordinary citizens.
No one is more conscious and aware of this than King Abdallah, hence his relentless
efforts, numerous initiatives and constant follow-ups to improve citizens' circumstances.
Being a fundamental economic sector for the Kingdom,
air transport is affected by and in turn affects the state of the economy. This
sector was severely hit by both the 11 September attacks on New York and Washington
and the on-going 20-month Palestinian Intifada. These same factors nearly devastated
the tourism sector, which contributes some 11 percent to our GNP.
All in all considerable efforts are being made to revitalize
the economy under the prevailing difficult circumstances. Both institutions and
individuals need to employ their full efforts to affect change. A key point to
examine in such efforts is the idea of a corporate culture or corporate values
and their benefit to the air transport sector in particular, and ultimately, to
the benefit of the national economy.
Corporate culture can be defined as a package of fundamental
attitudes, practices and values, which should be institutionalized as an integral
aspect of the modus operandi and the policies of public and private corporations
and companies. No institution, public or private, can yield the common corporate
objectives of profitability and sustained growth without instituting and practicing
these values. These values are "Golden Keys" of modern management and should be
treated as the "Five Pillars" of corporate success.
Although these concepts are specifically tied to the
air transport sector, particularly the airlines themselves and the civil aviation
authority, all but the first value-flight safety-can apply to any public or private
corporate environment.
There are two prerequisites: The selection of a competent
and qualified board of directors on the basis of their own merit, qualifications
and professional achievements. These directors would be compensated adequately
to dedicate their efforts to board responsibilities. This aspect becomes all the
more pressing in the context of the on-going efforts at privatization and restructuring
of public institutions.
The second prerequisite is the creation of an organizational
structure for the corporation or company, if it does not already exist, and if
it does then to restructure it on the basis of aforementioned values.
The most fundamental responsibility of corporate management
is the creation of a streamlined organizational structure by recruiting, training,
developing and retaining a highly organized, motivated, cost-effective, very fit
but also compassionate productive work-force capable of achieving the corporate
objectives as set by the board of directors through the creation of a healthy
corporate culture/corporate values and the synergies within and between the human
and material resources of the organization.
The organizational structure should be tailored to match
specific measurable corporate objectives of the company based on a well-defined
mission statement. In a highly developed service industry such as the airline
business careful consideration should be given to the process of selection, recruitment,
training, retention and promotion of manpower.
Selection and staffing should follow and be subject to
implementable job descriptions and function/task requirements based on objective
needs of the organization. Performance of the work-force should be measured and
evaluated periodically against a well-defined, quantifiable criteria of objectives
and a set time frame.
The success of a service industry such as an airline
depends largely on the high quality of its work-force whose professional standards
should be at pace with those of the sophisticated state-of-the-art technology
of the airline business overall. Many airlines in developing countries suffer
from a gap between the sophisticated technology they acquire and the qualified
manpower in support of such technology. We particularly point to such existing
gaps in non-technical but critical areas such as marketing, planning, finance
and administration where specific criteria required for the selection of qualified
manpower does not exist and if it does, it is blurred and often not implemented.
Luckily such criteria are institutionalized for pilots, engineers and other technical
areas by necessity and by definition.
This said an examination of corporate values is in order.
Nothing is more vital and imperative than flight safety, which can tolerate no
compromise whatsoever. Flight safety should never be taken for granted. In an
airline environment specific departments such as flight operations, engineering/maintenance,
customer services (i.e. ground handling and in-flight services) are directly responsible
for flight safety.
Security is just as critical as safety. In fact the ramifications
for security breaches transcend the immediate boundaries of the airline profitability,
prestige, corporate image and customers-going right to the heart of national security.
Therefore safety and security are eternal twins.
Second, the realization of superior customer service
is a must on the ground and in the air, including on time performance, imperative
due to its vitality to airline success in terms of product marketing and product
differentiation. Every member of the airline at all levels, but particularly those
interfacing directly with customers, should do their utmost to achieve customer
satisfaction. Quality customer service should be continuously developed and maintained
for its own merits but particularly for the purpose of creating customer loyalty
and repeat business particularly among high yield customers. Service should be
based on the concept of "Value for the Money."
The idea of meritocracy is the third pillar. All staff
should be selected, recruited, compensated, retained and promoted based upon their
own merits. After all "you get what you pay for" in terms of recruiting quality
staff. This will directly reflect on their productivity, the quality of service
and customer service and customer satisfaction.
Meritocracy creates and enhances institutional loyalty,
dedication and ultimately high productivity and high quality of customer services.
The selection of key personnel based upon their own merits is very critical. In
this context political appointments are certainly not helpful and indeed are counter-productive
and should be minimized or ruled out if possible, especially for key positions.
Cost-consciousness should be introduced and cultivated
within the organization and engraved in the minds, consciousness and practice
of each and every staff member so it becomes second nature to each and every one
of them. The ultimate objective of the creation of cost-consciousness across the
entire spectrum of an airline is to translate it into a concrete practice of cost-effectiveness.
This can be achieved by designing, deploying and utilizing
corporate budgets as tools to achieve strategic corporate objectives. As important
as it is to cut costs, is where to cut cost. Cost-effectiveness is not necessarily
realized by cost reduction. Therefore cost reduction should not compromise flight
safety, the quality of customer service, the quality of marketing/sales and the
motivation/morale and job satisfaction of the work-force. If this is not kept
in mind cost reduction will become counter productive.
Cost-effectiveness means including the resource of time
to achieve corporate objectives. Time management is a critical aspect of cost-effectiveness.
Time is money. Every task should be measured and evaluated against a time scale.
Seen in this context on-time performance becomes a critical aspect of time management
and more importantly of cost-effectiveness for airline operations that are so
time sensitive. Delays are very costly in terms of misusing airline resources:
Keeping aircraft idling on the ground, incurring ground handling, hotel and catering
charges as well as losing repeat business due to the negative image created by
such delays.
Obviously delays can and do occur even in first class
airlines. The critical aspect here is delay management: The effective management
of delay in order to minimize customer inconvenience to the absolute minimum.
This is what differentiates one airline from the other.
The preceding four pillars are tributaries of and contributors
to the ultimate value of commercial profitability. This value should be an integral
part of and a deeply ingrained practice in the minds and hearts of each and every
staff member.
In addition to profitability an airline has other value
added objectives: National, social, economic and even international ones such
as the employment of a national work-force, the generation of hard currency, the
promotion of tourism and the carrying of the national flag across the globe. None
of these objectives, including the role of contributing to development and growth
of the national economy, can be realized without commercial profitability.
For maximum effectiveness corporate values should be
introduced, practiced and ultimately institutionalized into a corporate environment
as one complete coherent package. The proper implementation of such could prove
to be a quantum leap toward greater performance for the Jordanian economy.
May 18, 2002
Sources :
The Star |