Tuesday, May 20, 2008

20700443: Entry-11

A New Approach For Airlines
Each one of us wants and expects to be well served no matter where we go and what we do; and due to the atmosphere that is created inside of an organization more or less customers come back again.

Summary:
(The interview is taking form Tom Kochan, a professor of management at the MIT Sloan School of Management).
The interview is based on "How Airlines Can Compete by Engaging Their Workforce". Basically, it is said that companies should be able to differentiate the culture and approaches to labor relations; though, many organizations postpone it until they end up with financial issues, but also not all of them approach this relationship as it sometimes can be late.
A good relations with employees help to improve the productivity and service quality, this means that workers are eager to put all their efforts to solve passengers' problems as the authority motivates them to do so.
Southwest Airlines is an example of people's preference; the company always emphasizes improved productivity through employees' loyalty that they keep for a long time and it helps to maximize their ideas, and financial objectives. Although Southwest has a low cost, they've high quality jobs, and their employees are very highly paid.

Opinion:
From the article above we can see how relationship with employees and quality of products has a great influence on customers. It is efficient if the organization is decentralized when opinions of both employees and managers are shared, so that everyone feels that they're part of a whole and is responsible for each step they make. Sharing the value with employees reflects on the relationship with customers that are treated according to high standards.
If the product carries value and high quality it doesn't matter for many customers what the payment for that is, they are ready to pay more if they're sure that can be satisfied. Therefore, the main point is "Productivity Controls Cost".

A New Approach for Airlines
, The Wall Street Journal, May 12, 2008
http://online.wsj.com/article/SB121026578961977661.html?mod=2_1573_leftbox

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