Cave Hill School of Business

EMBA Pogramme

GEMA6102 Leading Organizations through People

Case Study: One Caribbean Airline

Group members:
 407000842
 20050269

Lecturer: Mrs. Judith Morrain-Webb

Number of pages:
Number of words
Date:

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Contents
Contents...............................................................................................................................2
The Service-Profit Chain..........................................................................................13

1.0 Executive Summary

2.0 Introduction/ Background

This paper seeks to identify and critically assess a case study involving the
negative effects of employee behavior which lead to serious implications for an
airline company. With the understanding that airline companies today operate in
a highly competitive environment, it is imperative that employers be totally in
sync with the expectations of their employees in the delivery of quality service.
The study describes an employee who experienced wok related stress which
resulted in poor work ethics and derogative statements to a customer. Further
examination of the case highlights other issues which are reflected, not only in

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the behavior of the employee, but showed poor management of the operation
itself.

The intended assessment of this study will reaffirm the understanding that
behavioral aspects of the employee’s attitude can in fact affect the organization’s
ability to achieve its goals. Existing literature and theories of organizational
behavior and human resource management will support the preceding statement,
as will be the focus in this paper. According to Mitchell (2008), "Most
organizations do not have very effective ways to handle the employee behavioral
problems…Companies need to move quickly to deal with such problems
because the negativity of just one individual is pervasive and destructive and can
spread quickly." As the analysis of this study will show, the actual effect of
negative employee behavior and a dysfunctional unit in an organization can
exude itself in the form of employee burnout, negative affectivity, negative
organizational citizenship behavior (OCB), conflict resolution and more
(Schepman and Zarate, 2007).

Customer service in the airline industry is critical for the survival of air carriers
around the world, including OCA (what is OCA? Law of first mention). In order to
alleviate the situation presented in the case study at hand, recommendations will
be made and an implementation plan will be developed. These will enable
management to effectively approach the situation with the aim of creating a
customer service culture that will benefit the airline in the long run.

2.1 Case Background

One Caribbean Airlines (OCA) received a letter of complaint from a customer

alleging discrimination based on disability. The customer also threatened to sue
the airline. The report was initially sent to the director of ground operations, who
upon recognizing its the severity of the situation, immediately sought the advice

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of directors of customer relations service and human resources as well as the
company’s legal counsel.

The customer claimed to have heard a OCA agent say to her relative, who was
in a is wheelchair bound, that she should stop traveling as it is a burden on her
(the agent) to move her in and out of the plane.

When contacted, the agent defended the statement which she said was made
out of frustration. The agent cited issues such as understaffing and the difficulties
experienced as a female, getting disabled persons onto and off the aircraft.
Investigations by OCA management revealed that a similar complaint had been
made about the same customer service agent in the past.

Further background checks revealed that the agent’s manager, who is 68 years
old, had been with the airline for more than 43 years and was 3 years past the
company’s retirement age. Several other complaints have been received about
staff in that department and their negative behavior towards customers. The
director of ground operations has indicated that the Manager has always had a
weakness in communication in the workplace, making ethical decisions and
applying sound knowledge of procedures and regulations.

When briefed about the situation at One Caribbean AirlinesOCA, the CEO, with
haste and frustration, decided to close and restart the operations of that
department. The Human Resources Director, however, intervened suggesting
that the company implement measures to turnaround the department. This
intervention is what we now seek to accomplish.

3.0 Objective

The objective of this paper is to critically assess a case at One Caribbean Airline
(OCA) regarding negative behavior of employees and within a dysfunctional

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department. Included in the assessment of this case, there will be an objective
revision and analysis of established theoretical studies. Pertinent issues will be
identified with an aim to revamp relevant organizational and human resource
practices and policies as a matter of priority for OCA. Additionally, an analysis of
all that has led to this juncture will allow the company the opportunity to re-
evaluate current operational guidelines or procedures and implement best
practices while seeking to develop a culture of excellence and an airline of
choice.

Despite the initial fall-out which will be a result of the specific incident under
review, the airline will be better prepared to operate with a high performing
workforce, talented employees and renewed customer relations culture, coupled
with a knowledgeable and empowered management team.

5.0 Problem Statement

Negative employee behavior and poor management practices within One

Caribbean Airline have leads to deprived customer care and a dysfunctional
department.

6.0 Presentation of Findings

Management of OCA has failed to engage their staff and this has resulted in poor
performance and poor customer care. The Gallup research found that
disengaged workers tend to be significantly less productive, are less loyal to their
companies, less satisfied with their personal lives, and more stressed and
insecure about their work than their engaged counterparts. Even the most
engaged employees can have their passion for work diffused if their leader does
not know how to elicit passionate performance.

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OCA has not developed a model for behavior in the organization which would
promote greater organizational citizenship behavior (OCB). OCB according to
Robbins (2008) is “the discretionary behavior that is not part of the employee’s
formal job requirements, but which nevertheless promotes the effective
functioning of the organization.” The perceived (why perceived?) level of
organizational support is also very low and this has contributed to the low levels
of job satisfaction. Employees of the airline do not feel equipped to perform their
duties, and management has failed to develop initiatives to boost morale and
professionalism.

The quality of employee-supervisor relationships is also questionable.

Communication between management and subordinates is poor and it is
believed to be impacted by the low levels of commitment and motivation.
Employees perceive that they are not treated fairly by management. J. Stacy
Adams states that we compare what we do and receive to what others do and
receive and the result of that comparison can play a significant role in
determining our motivational level. Higher level management failed to act in as
much as there was not a system that ensured that managers and staff are
assessed on the basis of the results they achieve. The perceived unfairness
could be indicative of the organization’s failure to implement or effectively utilize
human resource strategies which would result in the development and retention
of only employees of the highest quality. The organization has promoted and
retained employees who are way past the retirement age and who consistently
underperform.

Prudent human resource planning has not been implemented. Management has
been unsuccessful in anticipating the need for staff, resulting in understaffed
stations, and overworked employees. The HR selection process needs to be
reviewed. It appears that there was not that job fit/ personality fit. There is also
no congruence between goals of employees and those of the organization which
contributes to frustration.

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Following a detailed investigation into this matter it has been revealed that there
are a number of underlying and key factors which attributed to this outburst
leading to a dissatisfied customer and possible litigation. There are some issues,
which should have been addressed in a timelier manner. They will be
immediately addressed and some will be later addressed with the appropriate
policy or procedure put in place for future reference. (the presentation of findings
has a lot of information that was not in the background. It begs the question
about the METHODOLOGY? How did you gather this information?

7.0 Literature Review

In reviewing the case, some issues come came to light. These include a:

1. Low level of employee commitment and engagement.1

2. Lack of training and development.
3. Lack of employee motivation due to understaffing.
4. Lack of HR Planning shown by understaffing issues.

Following a detailed investigation into this situation (previous paragraph started

the same way), it was revealed that this was not the first complaint that the agent
had received (do you mean, not the first complaint against the agent?) that
jeopardized the company’s customer service and reputation. (There are also a
number of underlying and key factors which attributed to this agent’s outburst
leading to a dissatisfied customer and possible litigation.) repetition This
included her low level of employee commitment and engagement.

Employee engagement was defined in a seminar I (who is this I?) attended by

Ken Milloy of Milloy Management Consultants on “What is this talk about
employee engagement all about?” as “A heightened emotional connection that
an employee feels for his or her organization, that influences him or her to exert
1
Appendix 3 – Employee commitment index

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greater discretionary effort to his or her work.” This was obviously not the case
with the agent as she showed no commitment to the organization and no
motivation to respond positively to management’s communications.

Milloy went on to say that employees are either fully engaged, non engaged, or
actively disengaged. Fully engaged employees have a passion that drives them
to:
• Build and innovate
• Find new and effective ways to accomplish their roles
• Move the organization forward and work up to three times the rate of the
disengaged
• Take less sick days
• Are less likely to leave the organization

Non-engaged employees:
• Are stuck in low-risk, low-commitment mode
• Don’t feel a connection with or from their company, manager, or
coworkers
• Don’t feel a sense of achievement
• Become fixated on the activities of their roles instead of the outcomes
• Are just concerned about doing the bare minimum they need to do to get
by

Actively disengaged employees:

• Are consistently against virtually everything
• Are busy acting out their unhappiness
• Every day erode what their engaged coworkers accomplish
• Disengage customers.

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The case also shows a lack of training and development in the area of customer
service which the HR department should address. This is crucial to the
productivity of the company, as they are not the only airline that delivers that
service and need to stay competitive. The agent delivered bad customer service
to the disabled customer by failing to create a professional, comfortable
atmosphere as well as by showing a low level of concern for the customer. She
also made the mistake of conveying the notion that she was doing a favour to the
customer by assisting her rather than being grateful for that customer’s business.

It was also obvious that the employee was not motivated. She felt that she was
being overworked and this can cost businesses surprising amounts of money to
cover for the increase in errors on the job, as well as all of the stress related
illnesses that are associated with employee burnout

As stated by Dawn Rosenberg McKay of about.com, “When employees feel

overworked, it's detrimental for everyone -- the worker and the employer.
According to the study, overworked employees are more likely to:

• report making mistakes at work;

• feel angry toward their employers for expecting them to do so much;
• resent coworkers who do not work as hard as they do;
• look for a new job with another employer

The above can show how an overworked employee could be extensively

stressed out and could make an inappropriate remark out of frustration to a
customer. She could also have been frustrated from not having the right tools
and equipment to do her job (difficulties in getting disabled persons on and off
the plane). (the literature review is weak. For such a large group it gives the
impression that you did not rely on a lot of literature in analyzing the case)

8.0 Analysis

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Analysis

This review and analysis, however, is based on much more than an OCA employee being
impolite and insensitive to a disabled customer. There were occasions when management
missed the cues to address smaller but significant concerns.

The critical areas for analysis identified in the case are diversity in the workplace,
effective communication, practical policies and procedures including problem resolution,
occupational health and safety, high performance management, staffing needs, job
reviews, customer needs and training.

6.2 Communication - By keeping channels of communication open and actively

listening to employees, management can readily respond and attend to employees’ needs,
complaints and grievances in a responsive and objective manner. In this case ineffective
communication was highlighted which lead to results of confusion, lack of teamwork,
and low morale. It was further depicted, the manager failed to make use of information
provided to him before this incident to make necessary adjustments Communication
becomes.

As suggested by Jennifer M George and Gareth R Jones ( ), “one of the most important
functions of communication is to allow employees to express their feelings and
emotions”. There were previous complaints of the behavior of the service agent in
question and she had already communicated a number of concerns regarding frustration,
understaffing and the difficulties she experienced getting disabled persons on and off the
aircrafts. These were all “red flags” which have alerted management that there were
critical issues to be addressed.

6.3 Problem Resolution & Customer Service - Since this matter along with others have
been brought to light OCA is now faced with coming up with cutting-edge ideas which
are critical for managing front line employees and measuring what customers think.
Problem resolution policies should be extended not only to customer service but also to
deal with problems and opportunities that are sources of stress for employees.

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The current process and standards seem to be inadequate in light of the outcome of this
situation. The impertinence of the customer service agent shows no commitment to
providing great customer service. and the lack of self control while representing the
organization. Additionally, little or no attention was paid to the job-related stressors
stresses of the customer service agent.

The connection between satisfied employees and contented customers is an old concept
which has been further proven by research done by the Harvard University resulting in
the concept of the “service-profit chain”. This concept draws on the direct link between
the front line and satisfied customers. OCA must ensure service standards are in place to
help employees become more empathetic with customers.

6.5 Performance Management - The opportunity has presented itself to evaluate the
organization’s current Performance Management policies and activities to ascertain its
use, relevance and results. Possibly a weakness lies in the actual implementation of the
core tenets of the policy. There is an absence of documented on-going performance
routines i.e reviews, coaching, counseling, work improvement discussions, development
or action plans. If Managers are not being held accountable for employees’ performance,
development and satisfaction the workforce will continue to be disengaged, disenchanted
and lack that commitment to a high performance culture. According to The Chief
Learning Officer – November 2005 “Companies that have implemented coaching
programmes are 50% more likely to have low turnover, have 56% higher customer
loyalty and achieve 27% greater profitability.

Diversity - As globalization grows by leaps and bounds and organizations continue to

impact the lives of persons with varying circumstance, background, culture, belief and
expectation there is an obvious need for diversity training and sensitivity to be introduced
to OCA formally. The agent’s remarks regarding a disabled customer shows that lack of
understanding of diversity extending to clients, business partners and service providers. It

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is critical as an air carrier that OCA’s employees are committed to embracing diversity
through a well defined and impactful diversity policy.

Diversity among the clientele will increase dramatically in the coming years and to be
successful OCA must recognize the need for immediate action and be ready and willing
to spend resources on managing diversity in the workplace now.

7.0 Recommendations

One Caribbean Airlines should immediately develop a customer service plan on

handling of passenger with disability. It is recommended that they provide quick

reliable service in a dignified, professional, and courteous manner. A team of

employees should be trained in handling people with disability and regularly

consult with disability advisory groups on how they can improve airline

accessibility and the quality of service. Employees who interact with disabled

passengers should at all time exhibit kindness, awareness and respect being

sensitive and respectful by thinking about and using appropriate language and

behavior would help. Management need to be more vigilant and take immediate

disciplinary actions to prevent any future occurrence of bad customer service.

8.0 Conclusion

Customer satisfaction is integral to the success and sustainability of One

Caribbean Airline. Like all air travelers, people with disabilities are important

customers, particularly because they are a growing population. Front-line

employees and contractors have direct contact with the traveling public, including

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air travelers with a wide range of disabilities. Customer service is a major

responsibility of all personnel and contractors dealing with the traveling public.

Customer service means communicating and acting courteously and respectfully.

The goal is to make each passenger’s experience with the airline positive and

ensure a safe and smooth trip. Finally, greater awareness about, and sensitivity

regarding, the perspectives of people with disabilities will demonstrate the

difference between customer services.

9.0 Bibliography

Cunningham, J. B. & Eberle, T. (1990). A Guide to Job Enrichment and

Redesign. Personnel, Feb 1990, p.57 in Newstrom, J. & Davis, K. (1993).
Organization Behavior: Human Behavior at Work. New York: McGraw-Hill.

Appendix 1

The Service-Profit Chain

The service-profit chain establishes relationships between profitability, customer

loyalty, and employee satisfaction, loyalty, and productivity. The links in the chain
(which should be regarded as propositions) are as follows: Profit and growth are
stimulated primarily by customer loyalty. Loyalty is a direct result of customer
satisfaction. Satisfaction is largely influenced by the value of services provided to
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customers. Value is created by satisfied, loyal, and productive employees.
Employee satisfaction, in turn, results primarily from high-quality support services
and policies that enable employees to deliver results to customers.

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http://hbr.org/2008/07/putting-the-service-profit-chain-to-work/ar/1 - November 7,
2010

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