Spirit Airlines

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Abstract In this paper, we described an approach for solving the decline in the performance of Spirit Airlines. Using reliable sources, we have constrained the scope of the study to establish the problems that are pointing to a lack of good organizational leadership practices. We have identified the problem as poor organizational leadership, which leads to low employee satisfaction and consequentially to customer dissatisfaction. We will detail the background of the problem and propose various solutions to solve or improve the problem at hand, which include; improve employee job satisfaction, job motivation, employee-management relationship, and effective leadership among others, with definitely will increase the customer satisfaction. The…show more content…
When customers are poorly handle, they tend to have negative attitude toward the organization and this can result to customer turnover. The U.S PIRG Education, which is a consumer advocacy group noted that Spirit was the most complained airline from 2009 to 2013, with three times more complaints per 100,000 passenger than any other airline. Poor leadership can also lead to low employee satisfaction. According to the Value-percept theory, job satisfaction depends on whether you perceive that your job supplies the things you value. Supervision satisfaction is one of the variables in the value percept theory and it state that it reflect employee’s feeling about their boss including whether the boss is competent, polite or good communicator.(Colquitt et al., 2013 pp 101, Chapter 4) Problem Background. Leadership is the use of power and influence to direct the activities toward goal achievements (Colquitt et al., 2013 pp 418 chapter 13). According to www.glassdoor.com Mr. Baldanza have 37% of approval as Spirit Airline’s CEO. The rating found on glassdoor is based on the employee…show more content…
this have lead Spirit Airlines to be in the lowest ranking on the ACSI ‘s Airline Industry Benchmark. The average score for the airline industry is 71, Spirit airlines scored 54 which is below the industry average (see figure 1). But Spirit Airlines closest competition is above industry average, Southwest Airline have scored 78 and JetBlue scoring 81 (see figure 1). Southwest and Jetblue are on the top of the ACSI ranking for the airline industry, while Spirit ranked the lowest in the industry. In chart 1 we can also see the salaries comparison among the different job positions between these three companies. We can see that Spirit’s salary is lower than what Southwest and JetBlue offer. This pay difference can make a an employee feel less valuable at the current company they are working for and might have low motivation, because they will start to compare and while doing the same job in this organization they will get more doing the same in

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