2. 2. 2. Administrative Innovation : reservation system There is telecommuting as an option for cost reduction. If the employees’ tasks are analyzed thoroughly, there would be duties that could be carried out at home. There is no reason one can’t work at home if he/she could understand the content of the task and its progress. If the whole economic population of American citizens who can work at home does so, the research result says that it is not necessary to import even an ounce of crude oil. David Nilman, the CEO of Jet Blue is the father of telecommuting system which uses internet.
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There is no reservation centre but rather 700 employees who want to telecommute, carry out reservation tasks at home. The managers of Jet Blue install monitors and card readers in their houses and trust them to work at the promised times. As a result, the biggest advantage this reservation system provides is that telecommuting allows huge amount of cost reduction. In other words, the need for office space specifically for reservation is low and eventually the costs on office supplies such as computers, desks, etc. an be reduced. Furthermore, expenses for office rents, construction fees and management fees can also be cut and the introduction of telecommuting system allows lower wage expense on reservation service workers who work at home rather than in offices. However, along with the cost reduction, Jet Blue’s reservation system was able to work because of the airline’s treatment of telecommuters were clearly different from others. “We treat our employees how the customers would want to be treated.
This is because the employees reflect the treatment, trust and the how they feel about the firm received from the company right back to the customers. If the workers are indifferent to the customers, the reason is obvious. Treat the employees as how you would treat your customers. People give back on what they received with interest. This is what the vice-president of Jet Blue Airlines said. Generally a firm which can’t trust its employees worries that they would not be able to carry out their duties properly because of taking care of their hild or doing other things. However, Jet Blue Airlines is famous for the responsible, kind and friendly phone service of the reservation workers. This is why Jet Blue was one of the few Airlines which made profits right after the 9. 11 terror. Like this, Jet Blue tries to deliver personal and friendly feeling when reservation is being made. The special reservation system is the core competency of Jet Blue reducing cost as well as managing organization humanities.