Managerial Control: A Turbulent Ride
Things haven’t been going too well for Alliance Airlines lately. Their flights are not taking off on-time and management can’t seem to figure out why. Meanwhile, customers are switching over to competitors. Can you solve the issue before the airline goes bankrupt?
The Correct Answer and Explanation is:
Correct Answer: Implement Effective Managerial Control Systems
Explanation:
The central issue facing Alliance Airlines is a lack of effective managerial control, especially in the area of operational efficiency—specifically, on-time departures. Timeliness in aviation is a key performance indicator. Delays not only frustrate customers but also incur additional operational costs and damage brand reputation. When management can’t identify the root causes of these delays, it signals a gap in their control systems, which are supposed to monitor, evaluate, and correct deviations from performance goals.
Managerial control involves four essential steps:
- Establishing performance standards – For airlines, this includes metrics like on-time departures, fuel efficiency, baggage handling, and customer satisfaction.
- Measuring actual performance – Alliance Airlines needs accurate data from all operational areas: gate management, aircraft maintenance, crew scheduling, and turnaround times.
- Comparing actual performance with standards – Identifying deviations like late crew arrivals, slow boarding, or maintenance delays is crucial.
- Taking corrective action – Once problems are identified, management must implement solutions such as automated scheduling tools, better communication between departments, or staff training.
It’s likely that Alliance Airlines lacks an integrated Performance Management System. Without real-time data and analytics, they can’t pinpoint where the bottlenecks are occurring. Additionally, poor communication between departments (e.g., maintenance, ground crew, and flight operations) may be contributing to inefficiencies.
Moreover, customer attrition to competitors suggests weak customer service or unsatisfactory experiences. That can be a result of delays or poor communication about delays—another managerial issue.
To stabilize operations, Alliance Airlines should invest in:
- Data analytics tools for real-time performance tracking
- Staff training programs
- Enhanced internal communication systems
- Regular performance audits
By reinforcing these control mechanisms, the airline can improve on-time performance, regain customer trust, and steer away from financial collapse.