Making the Organization Fly

2010 ◽  
Vol 9 (3) ◽  
pp. 145-148 ◽  
Author(s):  
Kim Peters ◽  
Passagorn Tevichapong ◽  
S. Alexander Haslam ◽  
Tom Postmes

Recently, the service industry has seen a low-cost sector emerge alongside the traditional full-service sector. We explored whether these business models have different implications for employee cooperation, one factor that plays an important role in organizational functioning. Drawing on the social identity perspective, we argue that employees will identify less strongly with the lower-status, low-cost organizations, reducing their intrinsic motivation for such cooperation. We tested these relationships among employees in Thailand’s airline industry. In line with expectations, flight attendants working for low-cost airlines (N = 77) perceived their organizations to have lower status than those working for the full-service airlines (N = 77), and this was associated with reduced organizational identification. This in turn predicted lower levels of organizational citizenship behaviour and a stronger desire for organizational exit.

2019 ◽  
Vol 29 (1) ◽  
pp. 2-21 ◽  
Author(s):  
Li Hongbo ◽  
Muhammad Waqas ◽  
Hussain Tariq

Purpose By integrating affective events theory and insights from the displaced aggression literature, the purpose of this paper is to highlight that state hostility can serve as an explanation for how perceived undermining by co-workers leads to antagonistic consequences. Distress tolerance and organizational identification are theorized to moderate the hypothesized relationships that are investigated in this study. Design/methodology/approach PROCESS macro developed by Hayes (2013) was used to test all the hypotheses by using time-lagged, multi-source data collected from 218 Chinese employees associated with the service industry. Findings The paper finds that state hostility seems to trigger unethical behavior on the part of employees resulting in service sabotage. It is concluded that perceptions of undermining are positively linked to employees’ hostility, which in turn drive service sabotage behavior. Furthermore, employee distress tolerance weakens the effects of perceived undermining on employees’ state hostility, while organizational identification alleviates the effect of employees’ hostility on service sabotage behavior. Practical implications This study not only highlights the outcomes of perceived coworker undermining, the mechanism through which it occurs, and the moderating effects of given factors, but also provides insights to the organizations for managing service sector employees so that they can more effectively interact with customers. The findings suggest that employees with high organizational identification are less involved in service sabotage, thus, such measures are necessary to take which help employers to enhance employees’ organizational identification. The authors also suggest managers to clearly communicate the adverse consequences which employees could have to face if they exhibit unethical behavior. Originality/value This study addresses the question: when and how perceived coworker undermining affects customers’ services. To date, most of the existing literature considered customers’ negative event and customers’ mistreatment as an antecedent of employees’ service sabotage. However, this study concluded that these are not the only reasons for employees’ service sabotage, employees’ interpersonal mistreatment which occurred beyond customers’ interaction also causes service sabotage.


2015 ◽  
Vol 31 (8) ◽  
pp. 1-3 ◽  
Author(s):  
Mark Thomas

Purpose – This paper aims to show why public acclaim is not always a guarantee for healthy profits. A low-cost forerunner, Laker Airlines, also discovered this same fact to its fatal cost. A company needs to understand its true value proposition and ensure that customers are willing to pay for it. Ryanair was adored by the public when it began its low-cost flights from Dublin to London in 1986. That love nearly drove it to bankruptcy. Today, despite its poor image, it is one of the most successful and profitable companies in the industry. Design/methodology/approach – The article analysis of the changing fortunes of Ryanair from its launch to its near bankruptcy in 1991 and then its revival of fortunes. It draws a parallel with Laker Airlines and the low-cost transatlantic Skytrain. Adulated by the public, the company folded in 1982. It is supplemented with research the airline industry and low-cost business models. Findings – The article shows why companies should not fall into the trap of believing that a good public image will be the necessary condition for maintaining a sustainable competitive advantage. They need to fully understand the value proposition and what a customer is willing to buy.


Author(s):  
Cristina Stoenescu ◽  
Camelia Monica Gheorghe

Abstract Over the last years, the rise of low-cost airlines has determined significant changes in the airline industry and has shaped the evolution of the existing business models. Low-cost airlines started by offering basic services at very low prices; traditional airlines responded by equally cutting costs and reinventing the services offered, with an orientation towards braking down the fare and implementing add-ons, in order to become cost-efficient. As traditional airlines developed strategies to become competitive in this new environment, low-cost airlines started focusing on new ways of enhancing passenger experience and attracting new market segments. As a result, the fragmentation of the market segments addressed by low cost carriers and traditional airlines became less obvious and the characteristics of both business models started to blend at all levels (airline operation, distribution channels, loyalty programs, fleet selection). Thus, this new competition became the foundation of the development of a new „hybrid” carrier, between the low-cost and the traditional models. This article investigates the characteristics of the newly created business model, both from a theoretical perspective and by analysing several case studies. A particular attention will be granted to the evolution of the Romanian carrier Blue Air towards the “hybrid” model. The article focuses on determining the position of the “hybrid” airline in a market with carriers situated along both sides of this business model: lower cost vs. “better” experience and raises the question on how value can be generated in this context. Another aspect tackled is the understanding of the new segmentation of the market, as a consequence of the development of the new business model. In order to achieve this purpose, a survey has been conducted, aiming to mark out the travel preferences of the passengers travelling through the Henri Coandă International Airport.


Author(s):  
Renan P. de Oliveira ◽  
Alessandro V. M. Oliveira ◽  
Gui Lohmann

By focusing on the intrinsic relationship between business models and network configurations in the airline industry, this paper develops a two-stage methodology to estimate the strategic drivers of network design of the major carriers in Brazil. The empirical approach decomposes their domestic network-building rationales into the ones adopted by virtual archetypical carriers. We consider the previously conceived low-cost, full-service, and regional carrier archetypes. Our main contribution is the development of a model that allows airlines’ networks to be strategically designed in a time-evolving pattern, reflecting a dynamically chosen blend of these archetypes. Moreover, we also consider the effects that mergers and acquisitions may have had in inducing changes in these blends. Our results suggest that all analyzed airlines have repositioned themselves through their trajectories to adopt a hybrid configuration, aiming at the intersection of at least two archetypical network-design rationales. Besides, the effects of consolidations point to certain diversions of the acquiring airlines’ domestic network-building rationales toward the ones of the acquired carriers, providing evidence that the consolidations may have served as stepping stones for market-repositioning moves.


2016 ◽  
Vol 3 (1) ◽  
Author(s):  
Ketut Ayumas Prasetyaningrum ◽  
Nicholas Simarmata

Flight attendant is one of occupations that engages on service industry in airline sector. X Airlines is one of the airlines in Indonesia. Flight attendants’ duty includes giving service and ensuring the safety of passengers during an airline flight. With such high risk job, flight attendants are expected to fully commit to their work, in specifically to work voluntary. The voluntary behaviour is labelled as Organizational Citizenship Behaviour (OCB), which is performed outside the flight attendant job description, for instance helping out fellow co-workers and keeping their responsibility well. Flight attendants should possess Self-Efficacy and Emotional Intelligence, in order to develop Organizational Citizenship Behaviour (OCB). Therefore, this study aims to examine the correlation between Self-Efficacy and Emotional Intelligence with Organizational Citizenship Behaviour of Flight Attendants of X Airlines.This study was a quantitative correlational research. The subjects of the study were 81 senior and junior flight attendants of X Airlines, aged 18 at the least, possessing as a minimum a high school/vocational school diploma or equivalent, working for minimum 6 months, and the employment status must be permanent employee, contract employee, and outsourcing employee. The reliability scale of efficacy was 0,881, the reliability scale of emotional intelligence was 0,873, and the reliability scale of Organizational Citizenship Behaviour was 0,901. According to the hypothesis testing with multiple regression analysis, the significance level resulted in 0,000 (p<0,01). The level meant there was a correlation between Self-Efficacy and Emotional Intelligence with Organizational Citizenship Behaviour of Flight Attendants of X Airlines. The effective variable of Self-Efficacy and Emotional Intelligence contributing to Organizational Citizenship Behaviour was 20,7%, meanwhile, the 79,3% ones derived from other factors except Self-Efficacy and Emotional Intelligence.Keywords: Self-Efficacy, Emotional Intelligence, Organizational Citizenship Behaviour, Flight Attendants of X Airline.


Author(s):  
Elmarie Kriel ◽  
Jackie Walters

Background: The economic deregulation of the airline industry in South Africa in 1991 was a landmark event and brought about various changes in the air transport market, both locally and internationally. One important after-effect of deregulation was the entry of low-cost carriers (LCCs) in 2001, which increased competition in the market and offered passengers the freedom to choose between full-cost carriers and LCCs. It is generally accepted that LCCs have been very successful across the globe, and the main reason for this lies in their simplified lower cost business models. One way of achieving lower costs is for LCCs to operate from secondary or alternative airports. This trend is observed in most regions of the world. In South Africa, and more specifically the Gauteng province, Lanseria International Airport is considered as an alternative airport to OR Tambo International Airport (the main international airport of South Africa and located about 30 km east of the Johannesburg Central Business District [CBD]). Currently, two LCCs operate from this airport with a third LCC airline indicating that it will shortly begin operations from this airport.Objectives: The research presented here reflects on the aspects passengers consider when selecting a secondary airport for their travel needs. It also compares the research findings of passenger attributes when choosing Lanseria Airport as a secondary airport in 2010 to a similar study in 2013 after another LCC commenced operations from the airport.Method: In this exploratory research a face-to-face survey was used as the quantitative data collection method in order to identify the factors that influenced passengers’ airport choice decisions at Lanseria International Airport.Results: From this research it emerged that when airports in a metropolitan area are close to one another, one of the main considerations for passengers is access time when selecting an airport. Even after a second LCC started operating from Lanseria International Airport, the attributes passengers regard as important in their decision to fly from the airport remained unchanged.Conclusion: The aim of the research is to gain a deeper understanding of the factors involved in secondary airport selection and, building on this knowledge, to assist airport owners and managers in positioning their airports in a multi-airport competitive environment. Similarly, the findings of the research could assist airlines in their decision-making process to operate from secondary airports


2021 ◽  
Vol 13 (1) ◽  
pp. 263-274
Author(s):  
Mária MRÁZOVÁ ◽  
Antonín KAZDA

This paper deals with airlines business models, mostly full service network carriers (FSNC) and low-cost carriers (LCC) and their position on the airline market. Covid-19 crisis causes many negative impacts on all airline industry. Hybridisation process in aviation industry is described many times in the past; now it has a stronger impact on airline business model development and it is oriented on different aspects than before. The paper emphasises the fact that low-cost carrier’s business model is much closer to the features of the FSNC carriers from the price point of view and vice versa. Furthermore, the authors introduce some other diversifications of airlines business models and the paper offers the new stimulus to move forward in this tough time for airlines business, paradoxically, thanks to Covid-19. Finally, yet importantly, the authors emphasise the important role of the state in the further direction of the airlines during and after the Covid-19 crisis


2019 ◽  
Vol 66 (3) ◽  
pp. 335-349
Author(s):  
Kasım Kiracı

The airline industry has entered a rapid development and transformation process, especially after the Second World War. In this process, it is seen that the market structure changed and many private airlines were established. Due to increased competition, airlines have begun to follow various strategies and business models in order to gain a competitive advantage over each other. One of the business models successfully applied recently is the low-cost business model. Therefore, this study focuses on airline companies that applied the low-cost business model. The study aims to reveal the factors that determine the financial risk in airlines, which implements the low-cost business model. For this purpose, firstly, airline companies that implement the low-cost business model have been identified according to the classification in the literature. The study included an analysis of 13 airlines with the low-cost business model that was fully accessible to financial data for the 2004-2017 period. Panel data analysis was used in the study and Altman (1968) Z-Score and Springate (1978) S-Score were used in measuring financial risk. Empirical findings of the study reveal that firm leverage, asset structure, firm size, firm profitability, and liquidity ratio have an effect on financial risk.


2021 ◽  
Vol 12 ◽  
Author(s):  
Li Hongbo ◽  
Muhammad Waqas ◽  
Hussain Tariq ◽  
Farzan Yahya ◽  
Joseph Marfoh ◽  
...  

Taking support from ego-depletion theory, this study examines ego depletion as a mechanism that explains how employees’ organizational citizenship behavior (OCB) leads to antagonistic consequences, i.e., service sabotage. Employees’ positive psychological capital (PsyCap) is considered a moderator. PROCESS macro was used to test all the hypotheses using time-lagged, dyadic data collected from 420 employees and their 112 their supervisors associated with the service industry in China. This study finds that employees’ exhibition of OCB is positively linked to ego depletion, which in turn drives service sabotage behavior. Furthermore, employees’ PsyCap weakens the effect of OCB on employees’ ego depletion. This study highlights the dark side of OCB, the mechanism through which it causes adverse effects, and the moderating effect of PsyCap. It also provides insights to the organizations for managing service sector employees to effectively interact with customers.


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