Frequent Flyer Scheme And Policy

RunningHead:BUSINESSLEADERSHIP. BusinessLeadership. Nameofthestudent: Nameoftheuniversity: AuthorNote: 1BUSINESSLEADERSHIP. TableofContents PartA.........................................................................................................................................2 ReporttoCEO........................................................................................................................2 Memotostaff.........................................................................................................................3 FrequentFlyerSchemeandPolicy....................................................................................3 PartB..........................................................................................................................................6 CrisisReporttoCEO.............................................................................................................6 PartC..........................................................................................................................................7 MediaRelease........................................................................................................................7 2BUSINESSLEADERSHIP. PartA ReporttoCEO Thefrequentflyerpointsisreferredtothepointswhichanindividualofthe organisationgetswhilemakingtripstotheforeigncountries.Theethicaldilemma,however, ariseswhethertheemployeesoftheorganisationmustuseitforofficialpurposeonlyorthey canutilisefortheirownpersonaltrips.Since,theheadofficeisinBrisbaneandthelatest expansionhasbeentakenplaceinCanberramarket,thenumberofindividualstaking domesticflightsfromtheemployeeshaveincreased.Alongwiththat,forabetterglobal exposure,severalofthestaffhavetotakeinternationalflightsforconferencesandseminars aswell.IthasrecentlycameintoviewthatseveraloftheGourmetBean,Australiastaffare usingthepointsearnedfromthetravellingfortheofficialpurposesfortheirownpersonal flighttravelling.1 InthecodeofconductoftheGourmetBean,Australia,aclausehasbeenclearly mentionedthatonemustconductthemselveswithcareandskills,inordertomakesurethat theactionsarenotinconflictswiththerequirementsofintegrityandobjectivity.Even thoughthisclausestouchessomeofthepointsregardingthesituation,itdoesnotdirectly specifytheemployeesactiononhowtheymayusethefrequentflyerpointswhichtheyhave gatheredbytravellingforofficialpurpose.Uponfurtherinvestigationonthisissue,bothat thedomesticaswellasinternationallevel,itcameintoviewthatthematterhasbeenasource ofdebateforseveralorganisationsandtheirmanagement.2 1deBoer,E.R.,2018.Futureofthefrequentflyerprogram.InStrategyinAirlineLoyalty(pp. 227-244).PalgraveMacmillan,Cham. 2Zuo,L.,Xiong,S.,Wang,Z.andIida,H.,2018,June.AnAnalysisofGamificationEffect ofFrequent-FlyerProgram.InInternationalConferenceonE-LearningandGames(pp.53- 60).Springer,Cham. 3BUSINESSLEADERSHIP. FromtheforeignorganisationsuchasPanAmericanHealthOrganisation,itiscleared thattheyareenablingtheemployeeworkingwithintheorganisationtojointhefrequentflyer schemeandretainthosepointwhichtheyaccruedfortheirpersonalaswellasofficial business.Even,theVicePresidentofGlobalSalesandProgramManagement,AsiaPacific forCWThaveclearlystatedthattheemployeesmustbeallowedtokeepthepointsfromthe schemeforthemselves.However,severalothercountriesalsoarguethatthepointswhichare usedbytheemployeesfortheirpersonalutilisationarepracticingunethicalactionsbecause thecompanymadethepaymentforsuchtransaction,therefore,thepointsbelongtothe companyaswell.Ethicallyspeaking,theemployeesmustbeprovidedwiththepointbecause theyaretheoneswhoareflyingtoanothergeographicallocation,bearingallthehasslefor thecompany,andworkingonbehalfofthecompanyatanewlocation.Thisperkmustnotbe revokedfromtheemployeesasitwillbeanunethicaldecisionbytheorganisation,however, theemployeesmustbeaccountable,honest,fairandsincereintheiractionswhilecollection ofsuchfrequentflyerschemepoints.3 Memotostaff FrequentFlyerSchemeandPolicy GourmetBeanAustraliastaffareprovidedwithaFrequentFlyerSchemeconsidering thefactthattheyarerequiredtotravelfromtheheadquartertodifferentmarketsandcities, tocoordinatetheactionandprovideoptimumefficiencytothebusinessoperations.However, ithasrecentlycameintoattentionthatseveralofthestaffsareutilisingthefrequentflyer pointsfortheirpersonaltravellingaswell.Uponfurtherdiscussionwiththehigherlevel 3Terblanche,N.S.,2015.Customersperceivedbenefitsofafrequent-flyerprogram.Journal ofTravel&TourismMarketing,32(3),pp.199-210. 4BUSINESSLEADERSHIP. management,ithascomeintoconclusionthatcertainguidelineshavetobemaintainedwhen itcomestothisparticularscheme.4 1.Thefirstrequirementisthattheemployeeorstaffbeforeundertakingofficialtripto eithertheheadquarteroranyinternaldestinationforofficialpurpose,mustfirst consulttheauthorisedsupervisorandgaintheirpermissionthroughinawritten documentOtherthanthattheTravelingpolicyandtherelatedguidelinesmustbe followedbytheemployeesonthisregard.5 2.Thesecondrequirementisthatthecustomermustprovideadetailedexpenditure reportwhichtheyincurredbytakinganyflight,eitherdomesticorinternational.This expenditurereportwillcontaintheflightcost,costformeals,hotelsandother travellingexpenditures.6 3.Thethirdrequirementisthattheemployeeorstaffmustmentionthenumberofdays orhours,whichtheyhadspentonthatparticularvisitationandthenameofthe supervisortowhomtheyhavereportedduringthetrip,attheendofeverymonthto theHumanResourceManagementDepartmentofGourmetBeanAustralia.7 ThemanagementandhigherexecutivesofGourmetBeanAustraliahavecometothis conclusionthattheemployeesandstaffoftheorganisationareeligibletothefrequentflyer 4deBoer,E.R.,2018.ExploringtheEcosystemoftheFrequentFlyerProgram.InStrategyin AirlineLoyalty(pp.141-171).PalgraveMacmillan,Cham. 5Reales,C.N.andO'Connell,J.F.,2017.Anexaminationoftherevenuegeneratingcapability ofco-brandedcardsassociatedwithFrequentFlyerProgrammes.JournalofAirTransport Management,65,pp.63-75. 6Gao,Y.,Carrigg,M.,Lewinski,R.,Polderman,D.andTkalcevic,P.,2018.Theperceived valueoffrequentflyerprogrambenefitsamongAustraliantravelers.InternationalJournalof Aviation,Aeronautics,andAerospace,5(3),p.6. 7Orhun,A.Y.andGuo,T.,2018.ReachingforGold:Frequent-FlyerStatusIncentivesand MoralHazard.AvailableatSSRN3289321. 5BUSINESSLEADERSHIP. programpointsandmayusethemfortheirpersonaltravellingpurposes,iftheyarefollowing theprovidedregulationshonestly,fairlyandsincerely; 1.TheGourmetBeanAustraliastaffsandemployeesmustpossessatenureofmorethan twoyeartoavailthefrequentflyerprogrampointsfortheirpersonaltravellingusage. 2.TheGourmetBeanAustraliastaffsandemployeeswhosetenureislessthantwoyear andmorethanoneyear,canavail50%ofthepointsfromthefrequentflyerprogram fortheirpersonaltravelling.8 3.TheGourmetBeanAustraliastaffsandemployeeswhoareatenureoflessthanone yeararenoteligibleforusingthefrequentflyerprogrampointsfortheirpersonal usageandthecompanyisentitledfortheentirepointswhichtheyhavegathered. 4.IfanyemployeeorstaffofGourmetBeanAustraliaisservinganoticeperiodforthe company,theyarenoteligibletousethefrequentflyerprogrampointsfortheir personalusageandatthetimeofleavingthecompany,theymustreturntheirprogram card. 5.Duringthisprogram,theemployeeandstaffofGourmetBeanAustraliaiseligiblefor addedbenefitssuchtravelclassupgrades,airportloungeaccess,fasttrackaccess,or prioritybookings.9 8Araujo,L.andKjellberg,H.,2016.Enactingnovelagencements:ThecaseofFrequentFlyer schemesintheUSairlineindustry(19811991).ConsumptionMarkets&Culture,19(1), pp.92-110. 9Jiang,C.,2020.Frequent-FlyerProgram:TheConnectionbetweenCommercialPartners andSpin-off.InternationalJournalofEconomicsandManagementEngineering,14(5), pp.341-345. 6BUSINESSLEADERSHIP. PartB CrisisReporttoCEO Thereportwillconsistoftherecenton-goingcrisiswhichisoccurringwithin GourmetBeanAustraliawherefewstaffsandemployeesarecommentingonthesocialmedia relatingtothedecisionmadeaboutthefrequentflyerprogrampoints.Inthiscrisis,the employeeshavedefamedtheorganisationanditsemployersbystatinginsultingand threateningcomments.Theperspectivewhichtheyarepresentingisthatothercompanies allowstheiremployeestoutilisethepointsfortheirpersonaluse,consideringitastheperk forworkrelatedtravelling.10 Inordertodealwiththesituation,aconferenceormeetingmustbearrangedwhere everyemployeeandpersonnelmustbepresentfromGourmetBeanAustralia,wherethe employeescandirectlypresenttheirchallengesandissueswithhonestyandintegrity,sothat thehigherlevelmanagementcanpresentasolutionforthesame.Thehigherexecutivescan alsoconductindividualmeetingswitheverymanagerandteamleaderregardingtheissue whichhastakenplace.Toinfluence,supportandempowerthestaffinordertoachieveand implementasolution,ticketmanagementsystemcanbeimplementedwheretheemployees canposttheirissuesandenquiriesanonymously.However,inexchangeforsuchhonestand deliberateactionfromthemanagementspart,theemployeemustpostapublicapologyon theirsocialmediaaccountsandremoveeverypostorcommentwhichgoesagainstthe reputationoforganisation,whenasolutionfortheissueswillbeimplemented.11 10deBoer,E.R.,2018.TakingtheFrequentFlyerProgramtoMeasure.StrategyinAirline Loyalty,pp.173-191. 11deBoer,E.R.,2018.CoreElementsoftheFrequentFlyerProgram.InStrategyinAirline Loyalty(pp.59-114).PalgraveMacmillan,Cham. 7BUSINESSLEADERSHIP. Forsolution,resourceswillbeprovidedbytheemployeesthemselvesthrough anonymousmeansandthemanagementwillconducttheirownresearchaswell.The responsibilityofcollectingtheinformationfromemployeewillbewithhumanresource management.Insuchasituation,willbetransformationalleadership,wheretheleaderwill addresstotheissuewithappropriatesolution,tobeseenasarespectedleader.TOre-build thetrustandconfidenceoftheemployees,fortheleaderandtheorganisation,thesolution mustbeinfavouroftheirtermswhichwilladdresstotheirtroubleswhichtheyfaceswhile travellingforwork.Theoutcomewillcreateapositiveworkenvironmentbecausethe challengesandissuesofemployeeswillbeaddressimmediately.Therecommendedscheme willbetoenablingthepersonaluseoffrequentflyerprogrampointsforalltheemployees, expectthosewhoareservingtheirnoticeperiod.Suchachangewillensurethatthecompany caresfortheiremployeeswell-beingandhealth,whichwillhelpthecompanytoretaintheir loyalemployeesinthefuture.12 PartC MediaRelease GourmetBeanAustraliaisreleasingthismediareleaseinordertoaddressrecent criticismagainsttheorganisationonvariouscorporatesocialmediasitesandnewspaper.This releasewillconsistoftheplanofthecompanytoenterintoanewmarketandresponsesto therecentfrequentflyersituation.GourmetBeanAustraliahasrecentlyexpandedtheir operationfromtheirheadquarterinBrisbanetotheCanberramarket,inordertoservetheir productsandservicestothepopulationofCanberra.Thisstrategicmoveistakenbythe 12Platz,P.andJzsa,L.,2018.Cross-culturalanalysisoftheFrequentFlyerPrograms(FFPs): Themostcontroversialresults.AsianJournalofBusinessResearch,8(2),pp.72-93. 8BUSINESSLEADERSHIP. companytomakesurethattheirconsumersarereceivingmaximumvaluefromtheirsupply chain.13 Thesituationregardingthefrequentflyerprogram,regardingwhichnotonlyGourmet BeanAustralia,alsotheotherorganisationaredebatingonthefeasibilityandethicsrelated concernofthematter.InitiallytheGourmetBeanAustraliaconductedadetailedresearchon thematter,inbothnationalandinternationalcontextandconsideringthedecisionsmadeand eachandeveryorganisation.Fromtheresearch,theGourmetBeanAustraliaupdatedtheir owncodeofconductwhichspecificallyaddressedtothisparticulardebatableissue.14The managementofGourmetBeanAustraliadecidedtoallowtheemployeesandstaffofthe organisationtoutilisethefrequentflyerprogrampoints,however,specificationsand conditionswereprovidedonthetenureoftheemployee.Although,theupgradeofthecodeof conductdidnotsatisfytheemployeesandstaffoftheorganisationandcriticismwereposted againsttheorganisationoncorporatesocialmediasitesandnewspaper.15Consideringthe degreeofimportanceofthesituation,themiddleandhigherlevelmanagementofthe organisation,cameintothisagreementthatthecompanywilladdressthechallengesand issueswhichtheemployeesarefacingthroughananonymousticketmanagementsystem. Themanagementaskedtheemployeestoprovidetheresourceswhichwillpresenteachof theircases.Uponseveralmeetingandresearch,thehighermanagementdecidedtoremove 13Gassanova,A.andNabiyeva,A.,2018.EFFECTIVEMANAGEMENTOFTHE FREQUENTFLYERPROGRAMASATOOLOFINCREASING COMPETITIVENESS.., p.156. 14Wever,M.,2017.AdvantagesandDisadvantagesofDeployingFrequentFlyerProgramsas ImpacyFactorsAffectingAirlineCustomerBehaviourandRetention.AdvancesinBusiness- RelatedScientificReserachJournal,8(1),pp.23-34. 15Seelhorst,M.andLiu,Y.,2015.Latentairtravelpreferences:Understandingtheroleof frequentflyerprogramsonitinerarychoice.TransportationResearchPartA:Policyand Practice,80,pp.49-61. 9BUSINESSLEADERSHIP. theclauseofemployeestenurefromthecodeofethicsoftheGourmetBeanAustralia.The companyacceptsthatthebenefitmustbeprovidedtoalltheemployees,regardlessoftheir tenure,aseveryemployeeiscommittedtotheorganisation.Asanactofinclusion,the companydecideduponprovidingthefacilitytoalltheemployees,regardlessoftheirlevel andexperiencebecauseeveryoneisprovidingtheirbestefforttotheorganisation.16 References 16Farzana,S.F.andHossain,M.M.,2015.PerformanceEvaluationofBimanLoyaltyClubas FrequentFlyerProgram.JournalofBusiness,36(2). 10BUSINESSLEADERSHIP. deBoer,E.R.,2018.Futureofthefrequentflyerprogram.InStrategyinAirlineLoyalty(pp. 227-244).PalgraveMacmillan,Cham. Terblanche,N.S.,2015.Customersperceivedbenefitsofafrequent-flyerprogram.Journal ofTravel&TourismMarketing,32(3),pp.199-210. deBoer,E.R.,2018.ExploringtheEcosystemoftheFrequentFlyerProgram.InStrategyin AirlineLoyalty(pp.141-171).PalgraveMacmillan,Cham. Reales,C.N.andO'Connell,J.F.,2017.Anexaminationoftherevenuegeneratingcapability ofco-brandedcardsassociatedwithFrequentFlyerProgrammes.JournalofAirTransport Management,65,pp.63-75. Gao,Y.,Carrigg,M.,Lewinski,R.,Polderman,D.andTkalcevic,P.,2018.Theperceived valueoffrequentflyerprogrambenefitsamongAustraliantravelers.InternationalJournalof Aviation,Aeronautics,andAerospace,5(3),p.6. Orhun,A.Y.andGuo,T.,2018.ReachingforGold:Frequent-FlyerStatusIncentivesand MoralHazard.AvailableatSSRN3289321. Araujo,L.andKjellberg,H.,2016.Enactingnovelagencements:ThecaseofFrequentFlyer schemesintheUSairlineindustry(19811991).ConsumptionMarkets&Culture,19(1), pp.92-110. Jiang,C.,2020.Frequent-FlyerProgram:TheConnectionbetweenCommercialPartnersand Spin-off.InternationalJournalofEconomicsandManagementEngineering,14(5),pp.341- 345. deBoer,E.R.,2018.TakingtheFrequentFlyerProgramtoMeasure.StrategyinAirline Loyalty,pp.173-191. deBoer,E.R.,2018.CoreElementsoftheFrequentFlyerProgram.InStrategyinAirline Loyalty(pp.59-114).PalgraveMacmillan,Cham. 11BUSINESSLEADERSHIP. Platz,P.andJzsa,L.,2018.Cross-culturalanalysisoftheFrequentFlyerPrograms(FFPs): Themostcontroversialresults.AsianJournalofBusinessResearch,8(2),pp.72-93. Gassanova,A.andNabiyeva,A.,2018.EFFECTIVEMANAGEMENTOFTHE FREQUENTFLYERPROGRAMASATOOLOFINCREASING COMPETITIVENESS.., p.156. Farzana,S.F.andHossain,M.M.,2015.PerformanceEvaluationofBimanLoyaltyClubas FrequentFlyerProgram.JournalofBusiness,36(2). Seelhorst,M.andLiu,Y.,2015.Latentairtravelpreferences:Understandingtheroleof frequentflyerprogramsonitinerarychoice.TransportationResearchPartA:Policyand Practice,80,pp.49-61. Wever,M.,2017.AdvantagesandDisadvantagesofDeployingFrequentFlyerProgramsas ImpacyFactorsAffectingAirlineCustomerBehaviourandRetention.AdvancesinBusiness- RelatedScientificReserachJournal,8(1),pp.23-34. Zuo,L.,Xiong,S.,Wang,Z.andIida,H.,2018,June.AnAnalysisofGamificationEffectof Frequent-FlyerProgram.InInternationalConferenceonE-LearningandGames(pp.53-60). Springer,Cham.