NO. 1 2011 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 19
VOL. 1 NO. 1 2011 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 19
As of year 2009, Garuda Indonesia’s service is aligned towards Indonesian hospitality, or called as ‘‘Garuda Experience’’ which acquires following fundamental values:
B Product on-time and safety.
B Process quick and correct response.
B Premises clean and comfort.
B People reliable, professional, competent, and helpful. In addition, Garuda Indonesia also has to improve cooperation with other parties in order to
satisfy customers through corporate sales services, e-payment, destinations promotion in excursion program and any other facilities. Garuda Indonesia also has always been awarding honors for loyal customers who already joined in Garuda Frequent Flyer (GFF) program. In 2009, updates have been enacted on regulations, facilities, and product provided for GFF members which is divided into four groups; Blue, Silver, Gold, and Platinum, by presenting various interesting offerings such as free tickets, prizes, and shopping promos.
Other programs are performed to enhance added-value for customers are: extension of customer care online, development of product, and service consistency by applying SQC and service level agreement concepts with service providers, Extension of routes and development of international and domestic flight routes network frequency, as well as decreasing cancel on demand, a transparent pricing based on customers segments’ needs, brand communication and product differentiation, Direct selling enhancement to revise distribution portfolio, reformation of complaint management procedures: preparation of standard operation procedure (SOP) draft for claim and complaint management, also customer intimacy program: souvenirs consignment.
In addition, coaching and counseling program have been organized, as well as conduction of a better monitoring upon passengers’ complaints. This also impacts the decrease of complaint index in 2008, which was at 0.06/10,000 pax, or decrease at 54 percent from that in 2007 (0.13/10,000 pax). In order to sharpen its competitiveness in facing intense competition in airlines industry in the turnaround business phase, Garuda Indonesia is concentrating on reformation efforts and development of flight safety and service aspects as well as efficiency.
Human resources In order to acquire excellent employees that capable of conducting effective and optimal role
at various key positions, Garuda Indonesia is concentrating on human capital management approach by focusing on personnel as valuable assets for Garuda and not merely as a supporting factor or an available resource. Each employee is required to put an excellence on which includes; knowledge, skill, and working attitude, therefore, they may enhance
Downloaded by New York University At 19:05 31 January 2016 (PT) productivity and performance, either in working environment and individual life generally. To become a human capital shall be a main goal for each employee, likewise an opportunity in achieving a more fundamental long-term goal.
In 2008, human capital management (HCM) approach applied by Garuda Indonesia was emphasizing focus on culture transformation that develops Garuda yang to become not only a good one, but shall be a great one, creating a leadership mentality as well as promoting an integrated learning and development.
Operated within a competitive and dynamic industry, Garuda Indonesia is required to constantly acquire a correct working force composition, in order to maintain its superiority. Besides, developing its development strategy in human capital correctly in line with Garuda dynamics, Garuda has always been regularly reviewing its employee necessity, both in quantity and quality. Up to the end of 2009, the amount of permanent employees of Garuda Indonesia was 4,668 employees, lesser than that in 2008 (5,355 employees), and 2007 (5,322 employees). The numbers of pilots and copilots keep increasing from 553 in 2007 to 547 in 2008, and 539 in 2009. However, the number of air crews is decreasing from 2,354 in 2007 into 2,204 in 2008, and 2,033 in 2009.
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Garuda Indonesia’s commitment on learning process and development of employees are reflected in the attendance rate at Garuda Indonesia Training Center (GITC), which has been long operated. GITC, which located in West Jakarta, acquires completed learning center facilities, with various programs and learning systems, including electronic learning (e-learning), purported to create an optimal training quality at the entire levels of organization. In order to maintain international standardized training quality, GITC has acquired CASR 121 certification as well as CASR142 and 147, as some of requirements for GITC to be assessed capable of providing training to third party. In addition, ISO 9001 certification and training maintenance aircraft maintenance training organization certification have also been acquired; therefore, competency and quality of instructors and training provided in GITC have been more completed.
Through GITC, Garuda has conducted various mandatory and non-mandatory training program for aircrews and ground staff. Mandatory program includes training in regulation area, flight operations, and safety, in line with corporate strategic objective to fulfill flight safety, comfort, and optimal services. Basically, through the training conducted in special sessions or daily works activities (on the job training), Garuda has always been trying to develop leadership capability, insight, communication skill as well as development of Garuda’s culture/values and work ethics.
In Garuda Indonesia, development of competency and competitiveness are not only the line managers’ responsibilities, but they shall be delegated to all employees and shall be performed continually and consistent through correct and structured training and development program. This learning management is expected to be capable of building a learning culture through high-impact learning organization. In order to develop employees in accordance with Garuda’s strategic objective, learning process is designed as a derivation of Garuda’s strategy and business plan, which among others conducting integration of Fly-Hi value order into the syllabus of the existing training program. Afterwards, through the balanced scorecard approach in formulating strategy, a coherent learning process may also
be accomplished. Learning needs at corporate level shall be interpreted into each working unit up to individual level of employee, by comparing Garuda needs with skills acquired by the employees. Should there is any gap identified, it shall be a point of learning needs for the concerned employees.
Investment in human capital development has been conducted through a thorough study, including periodic survey on remuneration structure in airlines industry and other sectors. One of survey objections is to ensure that the remuneration package in Garuda Indonesia is still competitive, therefore, Garuda may be remain a chosen one for professionals who have potentials and interested in joining or remain working with Garuda Indonesia. Regularly, Garuda has always been conducting evaluation and monitoring continually upon reference standard of HR development and learning tools. Such efforts are performed in order to constantly enhance human capital quality of Garuda Indonesia as well as adjustment measurements and investment addition upon prerequisites and supporting learning facilities have already built. The application of knowledge management that has been launched already earlier years shall be enhanced in the upcoming years, as well as other initiatives that may contribute learning and a more conducive working environment. Development in 2008 was also a preparation in HCM for year 2009, when Garuda is planned to enhance its employees’ skills quality and quantity.
Financial During year 2009, management of Garuda Indonesia has conducted a number of financial
and accountancy programs; such as finalization and completion of debt restructuring, preparation for IPO, funding of new aircraft, cash flow optimization, and increase natural hedging. Steps for finalization and completion of debt restructuring actually have been made since year 2005. This was second restructuring step after period 1999-2001. Condition of both domestic and international scale aviation industry is less profitable since the incident September 11, 2001, which is supposed to become cause for the decrease on company