Etihad Company: ISO 9001 Implementation and Its Effects

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Definition and History

The current definition of ISO 9001 states that the framework is a set of standards that are accepted internationally as the tools for managing the quality of a company’s performance in the global market (Psomas & Antony 2015). First introduced in 1987, the ISO 9001 standards have been providing the foundation for consistent improvement of product and service quality (Psomas, Pantouvakis & Kafetzopoulos 2013) (see Fig. 1).

ISO 9001 has been used in the UAE for quite a while. Although generally being successful, the implementation process may be hampered in the UAE because of the lack of clarity in the definition of the constructs in ISO (Kumar & Balakrishnan 2011).

ISO 9001 Principles

There are several quality management principles that ISO 9001 incorporates. The quality management principles (QMPs) were designed to create the environment in which a company can experience consistent improvement in all domains of its existence, including production management, customer relationships, allocation of the corporate assets (including the human resources), etc. As Table 1 below shows, the identified principles imply that communication should be viewed as the key priority of any organization.

Table 1. 7 ISO Quality Management Principles.

No. Description
1 Focusing on the needs of the customer
2 Enhancing the leadership strategy
3 Promoting teamwork and engagement of the participants
4 Designing an appropriate process approach
5 Implementing the required improvements
6 Emphasizing the significance of evidence-based decision making
7 Managing the relationships within the organization appropriately.

Advantages

One must mention the fact that the framework allows for accomplishing three essential goals. ISO 9001 helps organize the workplace processes, enhance their efficiency, and introduce the idea of continuous improvement into the context of a company (Fonseca 2015).

System Management.
Figure 1. ISO 9001: System Management (Quality Systems Toolbox 2016).

Disadvantages

It should be noted, though, that ISO 9001 has certain problems. The system implementation is rather expensive deserves, and the framework requires that a lot of documentation must be handled.

Implementation Process

As Fig. 2 provided below shows, the current ISO 9001 standards are supposed to prompt a change in an organization by not simply introducing minor adjustments to separate areas of the company’s operations but, instead, by upgrading the entire body of the organization for consistent quality improvement (Manders, Vries & Blind 2015). The process of engaging the target audience, particularly, employees and the representatives of a management team, by the company leaders, can be viewed as the most peculiar aspect of the framework that deserves closer attention.

Framework.
Figure 2. ISO 9001 Framework (Precision plus completes recertification of ISO 9001 2016).

As explained in the ISO 9001 manual, successful implementation of the employee engagement strategies is crucial since “Competent, empowered and engaged people at all levels throughout the organization are essential to enhance its capability to create and deliver value” (ISO 2015, p. 7). Therefore, to motivate the staff members to excel in their performance, one will have to shape the company’s values and introduce the corporate philosophy that will promote the required organizational behaviors and place a powerful emphasis on the necessity to take the needs of the staff members into account.

Recommendations

It is strongly advised that the ISO 9001 standards should be followed closely and that the firm’s priorities should be shifted toward investing in the employees and viewing the human resources as the essential asset of a company. Consequently, the specified aspect of the ISO quality management principle implies that the environment which fosters the required qualities such as corporate social responsibility (CSR), global citizenship (GC), loyalty to the organization, etc., should be created.

Field Study

Introduction

Etihad Airways has been known in the airline industry for a while, making quite a name for itself in the target market and gaining a huge competitive advantage. The organization is currently defined as the flag carrier; in other words, it can enjoy certain privileges operating in the global market and carrying out international transactions. Etihad has recently reached a mark of US$ 9.02 billion and has been working on the introduction of sustainability into the realm of the airline industry (Net profit of US$ 103 million for 2015 2016).

ISO 9001: Implementation

Working on the consistent improvement of the quality of its services, Etihad has deployed a variety of tools that allowed meeting the existing standards and the target population’s needs successfully. The adoption of the ISO 9001 standards was one of the steps that the organization leaders needed to take to introduce the principles of a consistent improvement to the company’s design and, therefore, increase customer satisfaction levels, as well as passengers’ safety rates.

However, the adoption of the identified framework was also fraught with several difficulties. A detailed analysis thereof will help shed some light on the effects of ISO 9001 application (Mangula 2013). At present, the ISO 9001 standards define the work of organizations in 162 states (ISO: a global network of national standards bodies 2017).

Data Collection

In order to conduct the study, a semi-structured interview was used. The interview included questions about the levels of engagement, the motivation strategies used by the management team, the loyalty levels among the employees, etc. The personnel members, in turn, were asked about their experience of working at the organization, including the positive and negative aspects thereof.

The interview results showed that the managers were consciously adopting the approaches geared toward maintaining loyalty and engagement levels high among the employees. Particularly, a very strong emphasis was placed on providing the employees with the required safety and security during the flight. The interview results showed that 84% of the employees felt secure and satisfied at Etihad, 71% also mentioned that they felt encouraged to develop professionally. The management team results were, in turn, 93% and 78%. The lack of emphasis on diversity, however, was viewed as a source of concern for both staff members and managers.

Interpretation

A closer look at the way in which ISO 9001 has been implemented at Etihad will show that there has been a consistent focus on the strategy of managing the human resources, particularly, the design of the tools for empowering employees, and its change toward an improved model. To be more accurate, the organization has been exploring numerous ways of increasing employee satisfaction levels by offering the target population benefits and incentives (Kaya & Ergun 2014).

The recent incorporation of ambulant services into the list of the options that the company’s staff can enjoy points to the fact that Etihad’s approach toward employee engagement is both innovative and efficient. The increase in the number of options for emergency situations, as well as the purchase of the medical equipment that will help the staff in case of an accident, is truly impressive: “The ambulance is fitted with modern medical emergency equipment and supplies including heart defibrillators, oxygen cylinders, intravenous drips, spinal and traction splints, foldable stretchers and medicines” (Etihad Airways launches new ambulance service for employees 2014).

Therefore, the quality of the medical services offered to the people employed at Etihad has increased rapidly over the past few years. The identified change created prerequisites for improving the relationships between the company and its staff members.

It is remarkable that Etihad meets the ISO 9001 standards by introducing new values and improving corporate ethics. For instance, the shift toward stressing the significance of the personnel’s well-being shows that the company is ready to build an emotional bond with its personnel. The identified connection is bound to create premises for consistent growth in loyalty levels among the employees (Talay & Akdeniz 2014).

As a result, Etihad will invest in its staff members so that they could grow and develop new qualities, acquire new skills, excel in their performance, etc. Therefore, it can be assumed that the approach toward managing employee engagement, if not being flawless, is at the very least steered in the right direction. By keeping the focus on investing in the staff members, promoting their professional growth, and allowing them to feel secure in the environment of the organization, Etihad makes a perfect case of a company with strong values and impressive potential. That being said, the diversity issue needs to be addressed (Wood & Wilberger 2015).

Conclusion

By incorporating the principles of ISO 9001 into its quality management framework, Etihad managed to cement its position in the global market as a responsible organization that seeks to provide its customers, staff members, and other stakeholders with the required safety.

Furthermore, the incorporation of the identified standards into the company’s design made it possible for Etihad to reconsider its current approach toward managing its human resources efficiently; consequently, the prerequisites for investing in the staff members and building a team of loyal employees were created successfully. The implementation of the ISO 9001 standards may have required a significant amount of effort from Etihad, yet the effects thereof prove that the process of quality improvement should become one of the primary goals of any company operating in the global market environment.

Reference List

Etihad Airways launches new ambulance service for employees 2014. Web.

Fonseca, LM 2015, ‘From quality gurus and TQM to ISO 9001:2015: a review of several quality paths’, International Journal for Quality Research, vol. 9, no. 1, 167–180. Web.

ISO 2015, Quality management principles. Web.

2017. Web.

Kaya, N & Ergun, E 2014, ‘The effects of human resource management practices and organizational culture types on organizational cynicism: an empirical study in Turkey’, British Journal of Arts and Social Science, vol. 17, no. 1, pp. 43-61. Web.

Kumar, DA & Balakrishnan, V 2011, ‘A study on ISO 9001 quality management system certifications: reasons behind the failure of ISO certified organizations’, Global Journal of Management and Business Research, vol. 11, no. 9, pp. 43-50. Web.

Manders, R, Vries, HJ & Blind, K 2015, ‘ISO 9001 and product innovation: a literature review and research framework’, Technovation, vol. 1, no. 1, pp. 1-15. Web.

Mangula, MS 2013, ‘Effect of quality management systems (ISO 9001) certification on organizational performance in Tanzania: a case of manufacturing industries in Morogoro’, International Journal of Technology Enhancements and Emerging Engineering Research, vol. 1, no. 1, pp. 14-19. Web.

Net profit of US$ 103 million for 2015. 2016. Web.

Precision plus completes recertification of ISO 9001. 2016. Web.

Psomas, E & Antony, J 2015, ‘The effectiveness of the ISO 9001 quality management system and its influential critical factors in Greek manufacturing companies’, International Journal of Production Research, vol. 53, no. 7, pp. 2089-2099. Web.

Psomas, E, Pantouvakis, A, & Kafetzopoulos, DP 2013, ‘The impact of ISO 9001 effectiveness on the performance of service companies’, Managing Service Quality: An International Journal, vol. 23, no. 2, pp. 149-164. Web.

Quality Systems Toolbox 2016, Using process maps. Web.

Talay, B & Akdeniz, MB 2014, ‘In time we trust? The effects of duration on the dynamics of trust-building processes in inter-organizational relationships’, Strategic Management Review, vol. 8, no. 1, pp. 77-90. Web.

Wood, VR & Wilberger, JS 2015, ‘Globalization, cultural diversity and organizational commitment: theoretical underpinnings’, World Journal of Management, vol. 6, no. 2, pp. 154-171. Web.

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