MEMORANDUM #2
Value Added:
About David Neeleman's Jet Blue:Customer service is not what usually comes to mind when one is thinking about the airline industry. Only a couple airlines Southwest and Continental for example had been noted for there somewhat superior customer service. That is until now. Jet Blue Airways, which is David Neeleman's new airline, should definitely be added to the list. This new airline was launched in February of 2000 and according to its owner had already became profitable after only six months because of it customer friendly innovations.He has achieved this superior customer service by thinking of the customer first before he thought of ways to cut costs. He has done this in many innovative ways. To start with, he decided to buy an entire brand new fleet of planes. This may seem quite expensive, but he saved in buying brand new planes with repair warranties. If he would have used older models he would have been stuck paying out of pocket for recurring maintenance charges. In addition to just buying the new planes he had them equipped with wide leather seats which to him also seemed cost effective because while they are quite expensive, they do not have to be replaced nearly as often as cloth ones. In the long run, the price of the leather seats equals out and the customer is extremely happy. In addition to the quality of the planes, he also offers his patrons unlimited snacks which his customers seem to prefer over the usual unappetizing airplane food. He has gotten rid of the cart concept and replaced it with flight attendants providing his passenger's snacks and beverages on trays rather than blocking the aisles with bulky carts. His customers prefer the trays to the beverage carts because it allows them to use the bathroom even when the flight attendants are serving snacks. One of the best innovations he has added to his airline is satellite TV's at every seat. This addition definitely sets him apart from the rest and definitely puts him high up the area of customer satisfaction. Not only is David Neeleman concerned with customer satisfaction, he is also very in tune with his employees happiness on the job. Because he had purchased new planes with advanced technology he was able to create planes that require a smaller volume of crew per plane. This factor allows Jet Blue to offer its workers a great pay structure, benefits from the day that they are hired, and paid training. To motivate his workers even more Neeleman's employees are included in Jet Blue's profit sharing, this factor creates a team effort in his employees, they all seem to go the extra mile to provide 110% effort according to Neeleman because they too are concerned with the companies profitability. He also encourages his workers to work extra hard by offering double time on holidays, time and a half when his workers work over seventy hours a pay period and he allows all of his receptionists to work from home. Because of Neeleman's focus on service for his customers and employees he has created a booming business in a very competitive field. Jet Blue in relation to the Expectancy Theory Model:Neeleman has a very unique method for managing a company. Instead of hiring a lot of workers like other airlines and paying them all decent amounts of money, but not offering them much on the level of job satisfaction he does the opposite. Because his new planes do not require a vast crew and he is able to cut costs in other areas, such as meals he is able to compensate his employees in various ways.Because Neeleman cannot pay his workers that much more than other airlines he provides them with many emanates such as benefits from the date of hiring, the option of working at home where applicable and a fun atmosphere of everyone helping everyone in order to get the job done to it fullest potential. Profit sharing also gives his workers the incentive to to everything they can to give Jet Blue the competitive edge in order to keep their airline thriving, so that they can continue to benefit. In relation Expectancy Theory I feel that Jet Blue employees are motivated and therefore exert greater effort not only because of money, but because of the prestige and freedom working for this company provides. Jet Blue workers must value the goal and teamwork oriented environment as there valent outcome, not just a paycheck, because working for this company does not offer more money than another airline, but it does offer the status of working for Jet Blue. Thus, they must put forth effort to achieve the desired performance which is making the customer happy and wanting to fly with Jet Blue every time they fly, this performance will lead to their idea of the valent outcome, which I stated before is keeping Jet Blue competitive and their jobs in tact. Conclusion:In conclusion David Neeleman's airline can teach any new, or old business a thing, or two about customer service and effective managing. Through his innovative airline structure and great customer and employee satisfaction he has reached the goal he has striven for. Jet Blue is now making a profit and is planning to expand to many other airport hubs throughout the world. He has not sacrificed much to offer decently low ticket prices in a user friendly environment, which will probably keep Jet Blue soaring into the future ahead of its' competitors.
|
