ABC International: Global Travel Experts

Background of the study

ABC International Travel is a wholly private limited owned company based in Asia. The company has since established numerous successful business not only in South Korea but also recognized globally. Eventually, sub offices presences in Hong Kong and Singapore were set up to serve clients around the region. They have vast experience in planning and operating physician meetings globally, continuously for several years and is still very active in this field. From concept to fulfilment, ABC International designs, manages, produces, delivers and accomplish every goal which the end client requested. However, from concept to fulfilment, ABC International designs, manages, produces, delivers and accomplish every goal which the end client requested. In this prospect, it highlight component of preparedness the company holds towards changes internally and externally and tackling competition in the market in attempt to enhance in performance financially and consumer engagement.

Research objectives

To critically review existing literature on organizational performance, employee outcome, role of leaders in business profits, and approaches towards organization growth and sustainability

To assess ABC international travel company competitiveness, workers’ efficiency, and productivity

To critically analyse data collected from primary sources on improving the workers’ productivity and efficiency and the company’s approach on increase output

To critically appraise the data collected then make evidenced-based inference on ABC international market performance and employee output

Research question

How should the management of a company maintains their relation as a leaders and motivates the employees within an organization?

Should employees in ABC international Travel Company improve their skill of consumer relation in order to improve productivity?

How can company’s leadership motivates the employees to bring up a better sales margin and better profit?

What should the Company do to improve and develop more business opportunities and higher profit revenue?

Theoretical background

Arguably, competition and complexity in current business environment is in its all-time high. Business entities face high competition in market forcing need for efficiency, high quality products and services, innovation, and mergers (Gibson, 2011; Pucciarelli; Kaplan, 2016; Moore, 2016). Moreover, as expressed by Botha et al. (2014) and Charter (2017) past decades has seen widespread changes ranging from the organizational culture, technological advancement, market demands, globalization, and stratification of consumer demands. According to Pritchard & Howard (2015) and Smith (2014), services industry particularly travelling and tourism sector being the most affected. The contemporary business environment demands business management to integrate process of implementing changes driven by focus to align to these changes in the respective industry while taking into consideration strategies to maximizing business effectiveness and minimising employee resistance.

Methodology

This study on ways of improving organizational and employees’ performance by ABD International Travel Company will employ qualitative research method in attempt to capture insight into its current operations and strategies. It will focus on investigating methods set in place towards enhancing its sales and efficiency measured by employee output. Toward this aims, it will collect data from primary sources through interviewing managing personnel of the company. In sampling process, it will employee random process but managers or directors will only be included. Experiences and level of employment will have a significant influence in inclusion and exclusion process. Subsequently, it will examine the data for validity and consistency before using thematic analysis tool to transform into useful information. Further, it will ensure ethical considerations such as academic relevance and integrity and participant confidentiality are maintained through representing the data and information used accordingly and ensuring participants sign consent letter consisting of scope, usage, and importance of study.

Limitation and challenges

Due to the irregular time schedule and time difference as managing personnel are always away on business trip to different countries, collection of data and information from primary sources could be affected seeing delayed or constant rescheduling. Additionally, in order to have an insightful understanding of determinants of performance and productivity for an organization, it requires a large data and perspectives from different personnel. This is poses a big challenge due to small size of the company (small staff members). Therefore, interviewing only the management personnel will have a limited conclusion and inference may be regarded inconclusive. Additionally, using few participant may result in biasness.

Dissemination plan

This study aims to investigate the ABC international travel’s employee and organizational performance in line to the sales and efficiency of services delivery. Ideally, understanding the elements of performance and productivity requires reviewing the discussion, concepts, and theories within the field assessing different components influencing the productivity and performance of individual and in general an organization as well as capturing key relationships. Therefore, after highlight the objectives and goals of study it necessitate to evaluate existing literature on within the scope of the study. Afterwards, it will follow structured framework to collected data from primary sources through interview then used in drawing inferences about the research topic. The information acquired following assessment and analysis of data will be basis of conclusion on approaches development or implemented by ABC international travel agency towards enhancement of its productivity and general performance.

Part 2: ABC International Report

Research title: Ways of Improving Sales and performance of ABC International Company

Background of the study

In the past decades, travel industry has been recording increasing revenues. In the United States of America (US), the revenue generated by travel industry increased from $12.2 billion in 2010 to $15 billion in 2015 also estimated to reach $ 17.3 billion in 2020 (Statista, 2018). Similarly, United Kingdom travel sector saw a rise in income measured in annual revenues by 10% to £36.19 billion. Statistically, the growth of travels industry enclosed under tourism is not limited to the UK and US only but worldwide. Currently, it being regarded cocas largest industries across the global contributing directly, indirectly, and through induction over $7.6 trillion in 2016 (Statista, 2017). These continuous success and high performance in the field has led to increase in competition, changes, high consumer demands, and regulation (Cusumano et al., 2015; Smith, 2014; Mason, 2015). As such, high number of organizations exist in the industry offering near similar products and services but only differentiated by efficiency, employee productivity, and consumer relations measured by ability to align to changes internally and externally, conform to the demands and expectation of consumers, provision of high quality services, and importantly competitiveness. Operating mainly in Asian region, ABC International Travel agency has a vast experience in global travel operation and planning. It was established in 2000 by Mdm Molly. The company has since established numerous successful business not only in South Korea but also across also across the US, Europe, and Asia. It has expanded its operations opening sub offices presences in Hong Kong and Singapore were set up to serve clients around the region. As the business grew, the requirements for staff employment never fell below their par of required margin which has made it quite a challenge because not all employees are motivated to work in passion but rather work for passion (ABC International, 2017). The company put more emphasis on quality assurance and professionalism that include promptly turnaround time on all its projects and sound attention to details (ibid). It schedules each meeting and budgeting are prioritised and structures set in place for continuous maintenance throughout every production. Since 2008, the company has remodelled its operation goals switching focus on special niche activities and tasks that include conferences and meeting organizing. The most recent operation included holding such meeting and conference as G20 Summit, Medical Masterclass, and Fashion runway show. From concept to fulfilment, ABC International designs, manages, produces, delivers and accomplish every goal which the end client requested.

Research problem and justification

In addition to facing threats and challenges encountered by other business entities such competition in the market, changing operating environment, high consumer demands and expectation, need for constants restructuring of organizational cultural, and high service efficiency, ABC International as a travelling company at all time must conform to the needs and expectation of consumer. ABC International’s operations and duties are depended on consumers’ expectation and needs. Occasionally, some of the countries chosen by the client do not have right infrastructures and also meeting facilities. These challenges from overseas or even neighbouring countries can be fulfilled in respective nations but it tend to be expensive in other words will also increase the expenses of the given budget. Different cultures and customs in countries it basis it operation also play a role in the challenges. Having a meeting in China is no doubt less expensive and will provide a great exposure as they are one of the fastest developing nation. Nevertheless, travelling into the country can be problematic due to visa regulation. Mostly, employees and clients from most countries need to secure a visa for the immigration entry, which is a big problem for an international company because of its workforce. Employing local staffs where the event is being held helps to bring down the cost in a way but it also brings down the quality level of services and professionalism by ABC International. Sending their very own staffs will be a better option to enhance the quality level of services however, the budget cannot sustain too many flown in staffs to support the meeting. Furthermore, the company focuses less on advertisement or promotion but dependent on consumer satisfaction to market its reputation and quality of services offered. Building from this, management is particularly concerned with quality of every single meeting, conference, and satisfaction of consumer. As such, its approach not to do aggressive promotion and marketing, narrows its respective gap of exposures in the market and significantly amplifies the need for efficiency and delivery of high product and service quality.

Research questions

Within scope of this study, the focus was answering the following questions

How management in a company should maintain their relation as a leaders and motivators of the employees?

What should a company do to in order to improve and develop more business opportunities and higher profit revenue?

What is the role of organizational managing personnel and leaders in motivating employees towards higher performance and better profitability?

Should employees in ABC international Travel Company improve their skill of consumer relation in order to improve productivity?

Research aims

The study aimed to investigate the approaches in the form of strategized mechanism in which ABC International Travel Company has integrated to improving employee productivity and the organization’s performance.

Research objectives

The following objectives formed the basis of this research.

To critically review existing studies on performance of an organization, role of leaders in business profits, employee motivation, productivity, and outcome

To investigate approaches implemented by ABC International Company towards increasing organization performance and employee productivity

To critically analyse data collected from primary sources on ABC International Company approach on improving the workers’ productivity and efficiency

To critically appraise the data acquired then make evidenced-based inference on ABC International techniques towards market performance and employee output

Literature review

Organization and employee performance

Organizational performance describe analysed general tasks and output in relation to the pre-formulated goals and objectives within a firm. According to Richard et al. (2009) and Gomez-Mejia et al. (2014), evaluating organization performance is crucial to monitoring individual and overall progress of an organization involving setting actual results against aims and intended objectives. As asserted by Katzenbach and Smith (2015), organization’s progress aimed at achieving these objectives are mostly used as performance measurement elements. Although it may vary depending on industry, measurement of performance is widely projected against its intended objectives and goals as well as its relation to market structures. Primarily, business oriented organizations are structured in manner that it strive towards gaining profit and subsequently driven by need to increase these profits and revenues (O'brien, 2015). Melnyk et al. (2014) illustrated that determining these measurement of objectives and goals attained acts as relevant construct in strategic management used extensive as dependent variable. Organizational competitiveness is based on strategic and operational edge held by an organization in relation to other players within respective industry. Over time, globalization has been key elements in creation of high expectations and trends a key aspect of service industry. Despite considerably high acknowledgement of its significance to an organization, studies have failed to agree on its definition, dimensionality, measurement, features, indicators, and strategies for improvement of organization performance and its management. Scholars have argued that the essence and concept of measuring organization performance and then associating to employee output and returns in revenues (sales) is founded on ensuring company’s resources including human capital, facilities, and financial capital are optimised in pursuit of company’s goals (Hubbard, 2009; Zaied et al., 2012, Langley et al., 2009). In writing, García-Morales et al. (2012) argued that measuring performance is fundamental elements in organizational development and sustainability but managing personnel should own and demonstrate respective input-output association before requiring employees to outlining their productivity. Therefore, measurement should not be directed to represent a bottom-top approach but start from managers and directors. Recent studies conducted on relation of firm’s performance and respective management revealed a multidimensional employee productivity, efficiency, and heterogeneous product market (Noruzy et al., 2013; Choudhary et al., 2013). Changes in not only business-oriented entities but also other organization has forced realignment of approach, goals, culture, and importantly employee performance (Goetsch, and Davis, 2014; Shields et al., 2015).

Performance management

Management of organizational performance focuses on company’s core variables that consists of not only key staff (management and decision makers) but also individual employee, teams, processes, and all components part of input and output. Studies conducted by Gruman and Saks (2011) elaborate the performance management in workplace attributed its emphasis currently is due to ever-increasing pressure in organizations internal and external environments. In attempt to address demand for efficiency, consumer satisfaction, and remaining competitive, organizations have increasingly strategized towards integration of innovative solutions structured to capture delivery of real outcome while subsequently improving performance (Bryson, 2018; Rummler, & Brache, 2012). According to Gruman & Saks (2011) and Berger L. & Berger D. (2011), performance management in workplace is beneficial to not both organization and individual by acting as developmental agent and increasing each productivity. Ferreira and Otley (2009) illustrated that strategized performance management systems ensures through monitoring individual and teams outcome, a company can attain its goals and ambitions. Poister (2010) held a perspective that effective performance management has a significant role in making sure employees understand each contribution to larger organization performance and vice-versa. Subsequently, it provide an insight into expectation on each and collective employee workforce while ascertaining the qualification and values held by employees towards pre-defined organizational goals Gruman & Saks (2011). In addition to providing a reward and compensation pool, performance evaluation platforms setting a mechanism in which individual input and respective commitment are recognised and encouraged in equitable and fair basis. Recognising the significance and influence held by individual employee and overall organization performance enclosed within benefitting organization, management, and employee, researchers and scholars have proposed and theorised several approaches of management of performance at both workforce and overall company’s levels. These has set a precedence of argument of key components effective management process including taking into consideration of time, resources, supportive to both management and staff, measuring outcome and behaviour, and aligning organizations’ objectives and values to those held by workers (Sadikoglu, & Zehir, 2010; Gruman, & Saks, 2011; Hameed, & Waheed, 2011). Some of performance appraisal tool like balance scorecard measures such elements as financial measures, customers’ retention and satisfaction levels, internal business processes, learning and growth measures.

Organizational and employee performance improvement

Building from assertion by Manzoor (2012), concept of organizational performance enclosing employee, team, and overall output of a company is connected to efficiency and effectiveness. As such, studies on approaches and mechanism of improving productivity in industrial environment have demonstrated numerous strategies that include engaging employees, leveraging high-influence leadership practices, align organizational and employee metrics to goals, setting developmental and training strategically, and focusing on business strategies. Key performance indicators (KPIs) where measurable values demonstrating effectiveness of a firm in attaining core its objectives. According to Parmenter (2015) and Ogunlana (2010), KPIs measures organization’s success based on specific targets that include marketing metrics, sales metrics, consumer satisfaction, employee performance level and satisfaction, financial metrics (financial revenues and income), and consumer retention rate. Fundamentally, these indicators are described in the SMART perspective representing specificity, measurability, attainability, relevance, and Time factor drawn to keep employee and other shareholders in track and right path towards formulated goals and mission (Bovend'Eerdt et al., 2009; Day, & Tosey, 2011). Extensive studies exist arguing on optimal practices with each presenting different perspective. Nevertheless, prevalent perspective is that strategy adopted is depended on business industry, organizational culture, goals, and resources. According to Kompaso and Sridevi (2010), employee engagement ensures each has an in-depth understanding of core values and objectives of a firm while at the same time building sense of importance and being valued. Importantly, organization need to align its strategy to competition in the market

Methodology

Research methods

Broadly, the aim of this study was to investigate strategies integrated by ABC International Travel in attempt to enhance its overall performance and employee productivity. As such, focused on having a deep perspective of factors driving organizational performance and employee commitment and subsequently strategies that if implemented will result to increased productivity, high services quality, organization growth, and financial revenues. It, therefore, employed qualitative research approach. Neuman (2013) and Taylor et al. (2015) described qualitative research within social science as a driven by collection and assessing non-numerical information focused on aiding in understanding factors affecting a group of people in relation to their interaction. According to Daymon and Holloway (2010), unlike quantitative research deals with macro-level phenomena and trends, qualitative research approach aims at micro level of individuals’ daily lives. Following these research approach, it explored different variables aligned to organizational performance, elements driving workers to put more effort and commitment into duties and responsibilities given, relation between employee productivity and different incentives and rewards systems, and association between performance management and ultimate productivity. In data collection, researcher conducted interview acquiring data about ABC International performance, goals, consumer relation, and employee relationship. Ms Molly, founder and director of the company, was interviewed. In line to ethical consideration, the interviewee was informed the scope, dimension, purpose, and data handling process within the entire research process. Subsequently, the acquired data was assessed for validity and relevance to research topic and objectives before analysis and transformation in usable information. It employed the use thematic analysis tool to analysis the data outlining each different concepts in the form of trends and pattern.

Results

As mentioned, in depth interview was conducted in data collection. The researcher held only one interview questioning Ms Molly on various elements of ABC International performance and approach towards its productivity and employee outcome (Appendix 1).

ABC International employee relation

According to Molly, the company has five staff members working full time and 20 tour guides working in different countries leaders and members of services tour groups. As far she is concern, the company is not facing major business related problems but rather it has recently seen restructuring its business model into international conference and event planner. On issues concerning handling competition particularly related to low skilled workers, the company acknowledged lack of knowledge on routing and operation area by employees but it trained employees through group engagement, taking them on recce trips, and sharing introductory aspects and history of attractions. Importantly, the company has its structures of incorporating individuals’ employee into its values and ideologies done internally.

Moreover, it the organization beliefs in working with both experienced and young workforce in order to offer and share skills and knowledge with regards to firms’ and industry culture and operation. She stated “good blend of new generation to improvise the company structure and also the older ones to share with the newer workers on what was done before which were good or those which had gone wrong”

Performance improvement

In questions about skills to be improved by employees, Molly regarded gaining insight and working smarter on respective duties and tasks as they are essential elements in the industry. As incentive to improving skills and knowledge, ABC International introduced rewards and yearly overseas holidays for best performers. Other strategies include involving each employee in oversee events and conferences by leaders the contracted employees and teams. As such, being incorporated as key decision makers in the organization policies, strategies, and tasks. Concerning overworking or underworking the employees, the company ensures during off peak period between July and August and Mid Dec and January receive holidays and given light duties to regain energy wasted during peak seasons. During these off peak seasons, the employees are encouraged to pick up and learn new skills depending on their interest.

Furthermore, according to Ms Molly, the company outsource expertise to aid in writers and reporting on the conference while it remain in charge with media and press printing. The challenges such as producing paper size and required quality encountered during printing are avoidable through outsourcing printers with turnaround time of only 12 hours. Like any other business entity, ABC International experiences labour turnover but it influence is significant due to its business portfolio in services industry and diversity of workforce where it dependent on where the event is being held. This, according to Ms Molly, makes making labour turnover ‘inevitable’.

Discussion

Building from the data collected, performance by both employee and overall a company are fundamental to respective development and growth. Despite presence of various evaluation and mechanism for improvement, approaches adopted by an organization is solemnly grounded on its values, culture, and largely scope and industry (Manzoor, 2012; Antony, & Bhattacharyya, 2010). In services industry such as environment in which ABC International operates, it employee effectiveness and efficiency are key aspects in attaining competitiveness and higher performance (ibid). Theoretically, studies have outline such approaches as engaging employees, building good relation, maintaining effective autonomy, and involvement levels as well as establishing good communication and striving to eliminating obstacles as significant components in attaining effective employee and to large degree organization performance (Antony, & Bhattacharyya, 2010; Sadikoglu, & Zehir, 2010; Elnaga, & Imran, 2013). According to Ms Molly, ABC International Travels beliefs in continuity of its values through involving the experienced and young personnel in running of business. Evidently, the company has set in place number of strategies of engaging with employee in attempt to enhance respective commitment. Based on assertion held by Day & Tosey (2011) and Bovend'Eerdt et al. (2009), performance whether at employee level and general organization, it largely grounded on pre-formulated goals including respective practicability, scale, and achievability. Importantly, employee engagement and involvement in organizations key elements such decision making on management of daily process has significant impact on overall outcome in term of efficiency, product quality, and sales. As such, approaches integrated by ABC International like rewards system and letting employee run oversees businesses will create an environment of belonging and promoting feeling of importance and being valued.

Conclusion

The data collected from interviewing Ms Molly director of ABC International indicate the company’s focus on employee engagement and involvement on running and management of key business processes. According to data collected, employees are given autonomous responsibilities to manage contracted employees and making decision on strategies employed and best ways forward. Additionally, it has a reward system (holiday trip), taking breaks during off peak, and encouraging learning new skills are other ways set by the company aimed at improving employee productivity. These techniques are in line with concepts and findings of previous studies on employee and organization performance. Similarly, outsourcing of expertise and resources is another method of enhancing the firm’s performance. Additionally, the firm also provides significant value through initiatives of continuous improvement, disciplined process, shared responsibility and duties, openness to change, and negotiation.

Recommendation

The study used primary sources of data, interviewing Ms Molly (director of ABC International) in which the acquired data was used to make inferences on approaches implemented to improve organization sales (performance in the market) and employee performance. Although the approach provide an insight perspective into the firm operation and culture, it may have been compromised. The participant may have offered a biased perspective. Therefore, for further studies, it should use more participant to obtain different views. Additionally, both employees and management should be interviewed in order to obtain different take of approach set in place for performance improvement.

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