The term performance gap analysis is concerned with the process of analyzing the difference between the current and the intended situation of a business corporation. This process aids the business entity in making identification of how far it has come towards the accomplishment of the goals and targets and how far still needs to go to attain the targets. The prime objective of this process is developing and advancing a concrete strategy for bridging and eliminating the gaps if any (infoprolearning, 2018). Moreover, performance gap analysis will aid the business firm in a determination of what aspects are lacking in the performance of an employee and also a business organization in comparison with its rivals. In both the cases, a comparison is done between the actual performances and with the established standards. Performance gap analysis deals with the monitoring and scrutinizing the situation, usually, this is done from the perspective of a business corporation, for checking how the business corporations or the workforce are making the attainments of the determined and set goals (Azfar, et al., 2012).This approach has been considered as one of the most popular forms of business analysis and also has widespread applications. According to the present scenario, the below presented is the performance gap analysis for the Air New Zealand.
Process: The process of performance gap analysis has been mainly segmented into three sections. On the basis of the current scenario, the performance gap analysis has been focused on and is presented for Air New Zealand. Cargo and in-flight services are the two quality management policies that have been selected for analyzing the performance gap (Aimewzealand, 2018). The prime motive of the analyzing the performance gap is to identify the issues or the causes that are bringing a decline in the performance of the business firm. The below presented are the three main stages of this analysis process:
Identifying the issue
This step in the analysis process is made concerned about making identification of problems and the issues faced by Air New Zealand and due to which a gap has been found in the performance of the business entity. On the basis of the research, it has been observed that the corporation is making use of cargo and in-flight services are the two operational policies adopted for executing the business practices in the firm. The first operational policy is Cargo that is concerned with the transportation of the cargo to the expected destinations On the basis of the research executed by Gill & Shergill (2004), it has been observed that for developing a proper management of the cargo operations the Air New Zealand, the business corporation is required to concentrate on implementation of quality measures devised by IATA (International Transport Association). And if the business entity is failing to perform the practices as per the expectations then there will be chances of the performance gap. This has been considered as one of the biggest issues due to which the business organization can experience a performance gap (Covello & Merkhoher, 2013). Another operational policy adopted by the business organization is in-flight services and this is concerned about providing assistance to the crew members in delivering quality services while boarding the flight. These services are focused on ensuring effective in-flight services and leisure services for ensuring a pleasant journey for the travelers. If the business entity fails to provide the expected services then the travelers will be unsatisfied and this will be an issue for the business entity. Furthermore, there is also a problem of rising complaints of the travellers that due to the lack of communication skills in the staff. Lacking communication skills is one of the greatest problems due to which the performance of the business entity is suffering. Moreover, Air New Zealand is also focusing on effective quality management procedure that includes appropriate training sessions to the crew members for managing safety and if the same does not adhere then it may rise as a problem for the business firm. Here also the communication gap can be considered as a significant point and that will come across as a barrier in the performance of the firm. This issue if raised then may lead to degradation in the quality of the performance of the crew members and a performance gap will be observed. There are also some operational problems that are faced by the customers and the performance gets affected from the same. For instance, the ground staffs is making deliberate mistakes while measuring the weights of the luggage carried by the travellers and hence this has been counted under the list of the issues.
Developing the criteria for defining current performance
Under this segment, the process various analysis and research are executed over the performance of the business corporation and they are observed and recorded by the established metrics and mechanisms of the business enterprise and also the required performance for solving the issues (Haimes, 2015).
Moving from current performance to the desired performance
On the basis of the research and financial statements presented by the business firm the current performance of the Air New Zealand has been described below:
Announcements have been done by Air New Zealand before taxation for 2017 financial year of $527 Million as compared to $663 in the last year. These are considered as the second highest results of the airline’s industry (infoprolearning 2018). And the net profit after taxation was $382 Million. Based on the airline’s strong financial position, future capital commitments and improving trading environment, the Board felt it appropriate to increase the dividend,” says Mr Carter. The final dividend will be paid on 18 September 2017 to investors on record at the close of business on 8 September 2017.
This step comprises of the formulation and implementation of the desired performance by moving from the current performance.
The concept is concerned with the development of a plan that will include an application of some approaches and tactics for establishing a control over the quality of the services offered to the consumers. In the given scenario Air New Zealand is the business entity that is offering transportation services to the travelers of New Zealand and all over the globe. The quality improvement plan has been executed for bringing an increase in the quality of the services served to the tourists and travelers (Ilie & Ciocoiu, 2010). The business entity can make use of various approaches for developing the plan and one of the recommended models for advancing the improvement plan is lean six-sigma. The below is the description of this approach:
Six-sigma is a methodology that provides business enterprises tools and equipments for bringing improvements and advancements in the capabilities of the business activities. The increase in performance and decline in the process variation will lead to that leads to the reduction in defect and boost to profits (Kotzab , Munch, De Faultrier, & Teller, 2011). The process of lean six sigma is focused on driving out waste and promoting work-standardization and flow. The prime objective of this approach is providing customers with the best quality, cost delivery, and a newer characteristic that is nimbleness. The mechanism has been considered as one of an integral means for removing waste. In this waste is referred to an activity that is not required while delivering product or service. Another benefit of this methodology is resolving the problems caused by any of the processes. The below presented are the practices that can be used by Air New Zealand for implementing the lean six sigma approach in the organizational structure:
The business entity is required to execute research defining the problem due to which the entity is facing several issues.
The next step in the process is quantifying the problems, an intensity of the issues is required to be measured so as to develop the plans and formulation of strategies can be executed.
Under this step, the team is required to execute analysis of the problems so as to get aware of the intensity and the severity of the issues (Li, 2014).
The next step in the process is to make implementation of the mechanisms that are offering solutions over the problems and verification of the implementation process is also required.
The last stage of the process is developing a control over the process and procedures so as to bring reduction to the errors. Moreover, a proper control will also provide correct directions to the efforts made by the team.
The approach of lean six-sigma is a crucial and empirical model of management that is required to be adopted by the business firm for bringing improvements in the processes and procedures. Another role of establishing this system is improving the performance and thus increasing the level of customer satisfaction. A well-structured quality management system will be identifying the issues and thus will lead in advancing quality of services offered. The objectives are required to be developed after making adoption of SMART approach and also they are required to be linked with the strategic goals of the firm (Lim, et al., 2013). Defining such goals will enable the business corporation in easy attainments of the desired targets. The below mentioned are the basic characteristics of the quality management system:
The following is one of the prime objectives of the quality management system:
Improving quality
On the basis of the analysis executed over assignment 1, it has been evaluated that Air New Zealand is a multinational corporation and is facing some issues that are related to the delivery of services. The business entity is making use of performance gap analysis for developing awareness over the gap and the issues developed from the same. On the basis of the research carried out over the services offered by the business firm and after making implementation of the approach of performance gap analysis it has been observed that the quality of the services is the main reason for the gap in the performance. And for which the business entity is developing business objectives. After analyzing the gap it has been evaluated that one of the prime goals of the quality management system of Air New Zealand is bringing advancement in the quality of the products and services offered by the business enterprise. The quality is such a system comprise of the three main components that are high quality, or high level of accuracy, acquiescence with the applicable and high customer satisfaction level (Mertens, 2014). The objective of the management system is also measuring each element and making attain the improvements. There are two approaches that will aid the business firm in measuring the various components. Product testing will aid in measuring the accuracy and compliance with the standards whereas, functional testing will demonstrate whether the products are meeting the customer expectations or not. The scores of these tests executed will yield information about the problems and will also be indicating the areas that require improvements.
On the basis of the research executed by (Centreforaviation, 2018). It has been analyzed that Air New Zealand generated the satisfactory amount of profits and the healthy profit reports comprise a pledge of continuing to improve and advance the airline’s offerings on domestic and international grounds. The positive performance will be aiding the business entity in offering an assurance to its corporate customers, these customers are still very much aware of the 2001 government bail-out that prevented the business enterprise from being dragged under by the collapse of its Ansett Australia Subsidiary. The New Zealand business enterprises are well known for their external focus and that depends on sale, reliable and economical air offerings, especially with the nations that are the trading partners of the business firm such as, China, Australia, Japan and the United States. Customers will be sustained by the strong performance of the Air New Zealand’s global operations and also by the intensification of the competitive environment and this is aiding the entity in maintaining a lid on growth. The business entity is making commitments for making advancements and improvements in the offerings and through this, the customers will be encouraged. The business organization will be initiating this by making airport lounge enhancements refurbishments and addition in the premium economic capacity (Purdy, 2010). This will be aiding the business entity in offering healthy competitive offerings as compared to the rivalry brands on key routes/
The above-demonstrated roadmap has been focused on the performance gap analysis of Air New Zealand. The business entity is one of the most recognized brand names in the sector of airlines in New Zealand. On the basis of the present scenario, the roadmap has been focused on the performance gap found in the operational activities of the business firm. The business enterprise is making use of cargo for transporting the goods and in-flight services is another business practice that is executed for delivering the varied range of services to the travelers (Tummala & Schoenherr, 2011). On the basis of the analysis carried out by making adoption of various approaches, the business entity has observed and found out the performance gap in the mentioned business practices within the organizational structure. The process of performance gap analysis will aid the business firmly on various grounds such as the entity will be aware of the errors and mistakes did and after that, the firm can develop appropriate strategies for tackling the gap or the issues due to which the gap is created. The road-map
The quality measures adopted in the quality management process are used for assessing and comparing the quality of Air New Zealand and some of the integral components such as structure, process, and outcome. This classification is a model and that is named as Donabedian model (ahrq.gov, 2011). After the formulation and researcher, the name was given by the physician and researcher. The below presented are the measures that can be adopted by the quality management system used by Air New Zealand:
Structural measures
The concept is concerned in giving the consumers (travelers) with a sense of Air New Zealand’s capacity, stems and procedures for serving high-quality services (Brazel , Carpenter, & Jenkins, 2010). For instance:
Process measures
The concept of process measure designates what the service provider is doing for the maintaining and improving the services offered (Chance & Brooks, 2015).These measures are typically are demonstrating the generally accepted recommendation for business practices in the business organization. For example:
Process measures adopted will generate awareness among the consumers about the services they are expecting and can also contribute towards improving the quality of services and outcomes (Chang, Tong, & Ameen, 2010).
Outcome measures
Outcome measures are the reflection of the experiences and the satisfaction level travelers. For instance:
These measures are considered as “gold measures” that are used for measuring the quality but the outcomes are the results of varied characters.
There is number of strategies that can be adopted by Air New Zealand for making accomplishments of quality management objectives (Chapman, 2011).The below mentioned are some of the tactics that can be implemented by Air New Zealand:
A risk management plan has been considered as an official document that is prepared by the manager for foreseeing the risks, estimating impacts and defines responses to issues. This document also comprises of a risk assessment matrix. A risk has been considered as an uncertain condition that if occurs will have positive or negative impacts on the objectives of the project or a business practice (Healy & Palepu, 2012). The risk management plan is the approach that includes an analysis of the risks likely with both high and low level of risks. Mitigation strategies should also be considered in this assessment plan for aiding the project to avoid being derailed should the common problem arise. The below mentioned are some of the prime steps that can be considered as significant one for developing a risk management plan by Air New Zealand:
The above presented is the risk management framework that is required to be adopted by the business corporation for the treatment of risk.
The above pasted is the criteria on which Air New Zealand will be able in developing priority for risks and treatment of the risk will also be done on the same basis.
The below mentioned are the basic principles of the risk management process that are required to be considered as significant by Air New Zealand while making implementation of the risk treatment process:
The following options are made available for the treatment of the risk that are required to utilized by Air New Zealand while making the application of the plan:
The next step in the process of implementation of the risk treatment is making adoption of quality strategy:
The below presented is the risk treatment plan that can be adopted by Air New Zealand for treating the risks:
After analyzing all of the above presented description it can be inferred that Air New Zealand can make use of the above presented approaches, steps and strategies for developing and implementing the risk treatment process successfully within the business.
The risk monitoring is a process of keeping a track or record of the identified risks monitoring the residual risks and making identification of new risks (solutions, 2018). Immediate risk action plans are required to develop in with the other project practices and operations as an empirical part of the overall management plan (Hull, 2012).
Communication of risk should be done to the whole organization. The stakeholders are considered as one of the most significant characters to whom the risk communication should be done in an effective manner (Mertens, 2014). A transparency should be maintained regarding between the operations and the activities executed within the business organization and stakeholders. This will increase the loyalty factor of the firm and formulation of string goodwill be observed.
References
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