The case outlines several measures that airlines have taken in an attempt to control their operations to navigate through dif

Case study

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The case outlines several measures that airlines have taken in an attempt to control their operations to navigate through difficult times. Explain the four steps in the control process in relation to one of these measures. (pg. 206)

Step 1: Establishing performance objectives and standards

In this step, the airline starts by planning the performance objectives and standards with clearly set goals. The objectives established aim at delivering critical results capable of making a significant difference in the success of the airline.

Step 2: Measuring actual performance

This step aims at measuring the actual performance results of the firm in terms of output standards and performance efforts in terms of input standards. The managers developing the performance plan should monitor the progress of the organization.

Step 3: Comparing actual performance with objectives and standards

In this stage, the planning group will compare the actual activities and results to performance standards. The report gives actual results that indicate whether the actual performance is in line, exceeds or falls below the expectations.

Step 4: Taking the necessary action

After comparing the actual performance with objectives and standard set on step 1, the management takes an action depending on the results. If the performance fails to meet the standards, managers take an action to fix them. Actions are taken only in two conditions. First, when the actual performance is below the set standards and second, when the actual performance is above the set standards.

Which of the organisational control systems outlined in the chapter are most applicable to the current situation faced by airlines? Why? (pg. 206)

Organizational control

It takes control of employee remuneration and conduct in the organization that helps improve productivity.

Financial controls

Financial control ensures the organization is run effectively while taking account of all resources used and spent in various operations. It also determines the profitability of the firm.

Inventory controls

It takes into account all the raw materials used in different operations in the firm eliminating chances of products getting lost.

How can an airline implement inventory control? (pg. 206)

Inventory control helps an organization control stored materials or products. Inventory control can be implemented through the following ways:

Proper maintenance of inventory records such as economic order quantity and ensuring scheduled activities take place in their respective times.

The airline should keep track of the amount of fuel consumed by each aircraft depending on the type of engine

Keeping proper records on food distribution from store to ensure no losses are incurred

Reference

Schermerhorn, J., Davidson, P., Poole, D., Simon, A., Woods, P. & Chau, S. L.

(2011). Management: Foundations and applications 1st Asia-Pacific edition, Wiley, Brisbane., p.206

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