E-Management and its effect on the Added Value: field Study in The Royal Jordanian Airlines

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1 E-Management and its effect on the Added Value: field Study in The Royal Jordanian Airlines ABSTRACT Dr. Nazem M.M. Al-ahmad Malkawi Associate Prof., Chair of Management Information Systems Department, Business Collage, Jadara University, Irbid, Jordan, P.O. Box (733) Postal Code (20) Dr. Mansour Naser Alraja Business Department- Jarash University Dr. Abed alrauf Hamadneh Alhosson Collage- Al-Balqa Applied University The ultimate purpose of this study is to determine the role played by E-management in improving the added value in The Royal Jordanian Airlines. A sample of (75) employees were chosen randomly from the targeted population, so 75 questionnaires were distributed, the response rate was about 84% (63 usable responses), statistical tools were used such as: frequencies, percentages, means, standard deviation (Std.) and coefficient of variation to describe the variables, spearman correlation and multiple regression analysis to test hypothesis of the study. The study revealed that Royal Jordanian Airlines uses Electronic Management good percentages with a mean (3.9) compared with the expected mean which is (3).There is significant statistical relationship between Electronic Management and Value Added.The study also revealed that Electronic Management have a significant statistical impact on the Value Added and explains (29.4%) of the variation in Value Added. According to the findings of this study we can give some suggestions: The Royal Jordanian Airlines Company should give more attention for integration of Database. The senior management at The Royal Jordanian Airlines Company should support the application of electronic management. The Royal Jordanian Airlines Company should use the electronic management accurately to save time, effort and money, and should concentrate on added value as a competitive strategy. Keywords: E-Management, Added Value, The Royal Jordanian Airline, Jordan.. INTRODUCTION E-management will dramatically change the way business operates and consequently shift historical pattern of corporate spending on I.T., and the latter half of this statement is something that I.T. managers will need to recognize and accept as soon as possible they can. E-management, owing to its nature, has numerous capabilities. Through utilizing these capabilities, organizations can gain and add to the value of their business. The purpose of this paper is to explain how added value emerges from the work processes at The Royal Jordanian Airline. The paper begins with a review of the related literature and then takes a conceptual approach to discuss how E-management lead to added value. 2. STUDY OBJECTIVES The main purpose of this study is to determine the impact of E-management on the value added at The Royal Jordanian Airline. 3. STUDY QUESTIONS We can summarize the main problem of the study by asking: what is the impact of E-management on the value added at The Royal Jordanian Airlines? 4. HYPOTHESIS AND STUDY MODEL To answer the questions, the research depend on the following main hypothesis: There is a significant effect at level (P 0.0) of electronic management on the value added in Royal Jordanian Airlines. Electronic management Value Added Figure () Study Model

2 5. LITERATURE REVIEW E-management defined as a strategic approach of managing future and dynamic organizations through the implementation of a high-performance and technology-based system. Basically, e-management is a strategic approach. It starts with vision and mission. It stresses the value gained by the organization through information technology capabilities. It focuses on core value of the applications which will give the best quality output, effective cost and benefits to the organization. And the true efficiency and cost effective operations can only be gained through the strategic approach of e-management considering the future business style and organization style (Yao & others, 20). 5.. E-management principles Paperless system: Paperless environment is one of the most important elements in e-management, because paperless systems increase the ability to find things fast and saving space by using database instead of a file cabinet and boxes and easily to pull information out of the files to be used (David, 2009). Integrated system: System integration is the successful putting together of the various components, assemblies, and subsystems of a system and having them work together to perform what the system was intended to do (Kronke, 20; Laudon, 203). Dynamic system: the dynamical system is a function with an attitude. A dynamical system is doing the same thing over and over again. A dynamical system is always knowing what you are going to do next (Edward, 2000) in the E-management environment the systems should be designed to cater for changes at any time as required. Intelligent system: An intelligent system is a system that emulates some aspects of intelligence exhibited by nature. These include learning, adaptability, robustness across problem domains, improving efficiency (over time and/or space), information compression (data to knowledge), extrapolated reasoning (Imre, 2008) E-management s attributes Database management system (DBMS): in E-Management environment, the Enterprise Database should be a single integrated database in order to ensure data integrity and security. And this database shall be supported by the actual Database Management Systems(Yao & others, 20) Management information system (MIS): development and use of information systems that helps businesses achieve their goals and objectives (Kroenke, 20). Devices management: The devices will be interacting with MIS application and Database Management System, so everyone in the organization shall be alert with the new devices in the market, and grasp the opportunity to use the new device in order to improve the automation in the processes. User management: All the users must be identified and categorized properly to ensure every type of users are given a proper attention in terms of planning, designing, development and implementation. The critical categories of users are Data owner, Process owner, System owner and end users. 5.2 value added Value Added, the enhancement a company gives its product or service before offering the product to customers. Value added is used to describe instances where a firm takes a product that may be considered a homogeneous product, with few differences (if any) from that of a competitor, and provides potential customers with a feature or add-on that gives it a greater sense of value. A broad definition of value added is to economically add value to a product by changing its current place, time, and form characteristics to characteristics more preferred in the marketplace (David & others, 2000) Adding Value Approaches Adding value to products can be accomplished in a number of different ways, but generally falls into one of two main types (David & others, 2000), (McCaffrey & Hamilton, 2007): Innovation: Innovation focuses on improving existing processes, procedures, products, and services or creating new ones. Often, successful value-added ideas focus on very narrow, highly technical, geographically large markets where competition is sparse. Coordination: It focuses on arrangements among those that producing and marketing the products. Horizontal coordination involves pooling or consolidation among individuals or companies from the same level, while Vertical coordination includes contracting, strategic alliances, licensing agreements, and single ownership of multiple market stages in different levels. Vertical coordination, either through ownership integration or contractual arrangements, is necessary to link production processes and product characteristics to the preferences of consumers and processors 2

3 5.3 Related Works 5.3. (Harjit and Gurdev, 20) Cloud computing is an emerging new computing paradigm for delivering computing services. This computing approach relies on a number of existing technologies, e.g., the Internet, virtualization, grid computing, Web services, etc. Cloud Computing aims to provide scalable and inexpensive on-emand computing infrastructures with good quality of service levels. It represents a shift away from computing as a product that is purchased, to computing as a service that is delivered to consumers from the cloud. It helps an organization in saving costs and creating new business opportunities. This paper provides a framework, Education Cloud for the e- management of NGO s. The Education Cloud can transform a nonprofit, or an entire sector of nonprofits, achieves its mission and creates lasting impact in its communities. This paper also presents the case study of Kalgidhar trust, Baru Sahib, Himachal Pradesh, NGO which is using the education as the tool to solve the social issues (Fatimah & others, 200) Though many organizations have developed their own approaches in ensuring reliable decision making processes, not many have used technology to ensure effective participatory based decision making. This paper presents a model that incorporates reliable participatory based decision making practices and quality management indicators through strategic use of technology - an initiative of a faculty in a higher institution of learning. The model, called QuESt (Quality E-management System), integrates web-based technologies into an interconnected system to enable decision making by all stakeholders at multi levels of responsibility. Discussion in this paper is first focused on the bureaucracy and participatory models of decision making, then moves on to the research context, description of QuESt and discussion of the features and functions of the system. The paper concludes with an assessment of the potentialities of the system in taking an organization s internal and external processes to the next level using technology to ensure evidence based decision making, to interconnect staff roles and responsibilities and to use feedback to take appropriate action. Implications are drawn for knowledge advancement, policy making and practice (Ou, 20) Evaluation of the effectiveness of higher education has received unprecedented attention from stakeholders at many levels. The Voluntary System of Accountability (VSA) is one of the initiatives to evaluate institutional core educational outcomes (e.g., critical thinking, written communication) using standardized tests. As promising as the VSA method is for calculating a value added score and allowing results to be comparable across institutions, it has a few potential methodological limitations. This study proposed an alternative way of value-added computation which takes advantage of multilevel models and considers important institution-level variables. The institutional value-added ranking was significantly different for some of the institutions (i.e., from being ranked at the bottom to performing better than 50% of the institutions) between these two methods, which may lead to substantially different consequences for those institutions, should the results be considered for accountability purposes (Shokufeh & Roya, 20) Firms' values are result in financial capital value and intellectual capital. Despite the importance of intellectual capital, by the principles of accounting but also, intellectual capital used in companies in the financial reporting of Iran are not presented. Goals research is review Evaluation of corporate valuation and study the effect of EVA, residual earning calculated by accounting standards and component of IC in market value of firms. The population of the financial intermediation industry with 25 companies in Iran, About 2 companies in the group Banks, credit institutions and other financial institutions, other financial intermediation, investment and monetary intermediation in Models were tested in the study, the results at the confidence level of 95%, indicate that: There is no significant difference between research models, for the capacities to explain variations in firms' market value, if the proxy variable of intellectual capital is not added. The capacity of residual income calculated by EVA to explain variations in a firm's market value will be significantly greater than residual income calculated by generally accepted accounting principle of Iran to explain variations in a firm's market value if the proxy variable of intellectual capital is added. 6 METHODOLOGY 6. Population and Sample The target population for this study Consists of all employees of the Royal Jordanian Airlines company, A sample of (75) employees were chosen randomly from the targeted population, so 75 questionnaires were distributed, the response rate was about 84% (63 usable responses). 3

4 6.2 Data Collection Secondary data was collected based on the findings of published papers, articles, books, prior studies, and the World Wide Web. The primary data collection was carried out using a self-designed questionnaire, this adopted instrument comprises three sections, the first section covers the demographic information (Gender, Age, Period of working at bank, Education ), the second section contains () items measuring electronic management, the third section measures value added through (4) items also, Five Likert-type scales were used to score the responses. 6.3 Instrument Reliability The reliability of data collected instrument was measured using Cronbach's alpha coefficient; the reliability test was conducted to check for inter-item correlation in each of the variables in the questionnaire. The closer Cronbach's alpha is to one, the higher the internal consistency reliability (Sekaran, 2003). The test results are as follows: Cronbach alpha for Independent Variable = 0.804, Cronbach alpha for dependent Variable = 0.83, Cronbach alpha for over all instruments = which approached to the acceptable limit. 6.4 Data Analysis Methods Statistical Package for Social Sciences (SPSS) was used to analyze the data. Descriptive techniques such as; frequencies, percentages, means, standard deviation (Std.) and coefficient of variation were used to describe the variables. Spearman correlation and multiple regression analysis were used to test hypothesis of the study. 7 STATISTICS ANALYSIS AND HYPOTHESIS TESTING 7. Analysis of Personal and Functional Characteristics We used several questions to find out the distribution of the study sample, according to personal and functional characteristics, such as gender, age, Period of working at the company, and Education. Table () shows these properties. [ Table should be inserted here] 7.2 Study variables Description To determine the availability of the study variables, we measured the main independent, and the dependent variable, with a set of indicators shown in table (2) Electronic Management [ Table 2 should be inserted here] As it clear from the table (2) the total mean of independent variable is (3.9), and the answers of the study sample on these dimensions were close, the standard deviation was (0.53), which reflects the perception of respondents about the reality of electronic management and its applications at Royal Jordanian Airlines Company Value Added Also from table (2) we can see the total mean of value added is (3.928), and the answers of the study sample on these dimensions were very close, the standard deviation (0.58) Hypothesis Testing We use person's test to identify if there is relationship between Electronic Management and Value Added, As it seen in table (3), the output indicates that there is a positive significant correlation at (P 0.0) between Electronic Management and Value Added (R= 0.582). [ Table 3 should be inserted here] Regression analysis was conducted to test the hypothesis. Regression identifies how much of the variance in the dependent variable will be explained when a set of variables is able to predict a particular outcome. Using regression analysis is subject to normality of the data. 4

5 Main Hypothesis: [ Table 4 should be inserted here] [ Table 5 should be inserted here] [ Table 6 should be inserted here] As it clear from the results of regression analysis, the Electronic Management as it seen in table (8) affect directly (β = 0.542, P 0.0) on Value Added, as it shown from table (6) (R 2 = ) This means that Electronic Management have been interpreted (29.4%) of the variance in Value Added, and also we noted from table (7) that the value of the statistical test (F = ) is statistically significant at (P 0.0). this analysis lead us to accept the main hypothesis which said: There is a significant effect at level (P 0.0) of electronic management on the value added in Royal Jordanian Airlines. 8. CONCLUSIONS After analyzing the data and testing the hypotheses, the following major conclusions were reached:. Royal Jordanian Airlines uses Electronic Management good percentages with a mean (3.9) compared with the expected mean which is (3). 2. There is significant statistical relationship between Electronic Management and Value Added at the confidence level (P 0.0). 3. The study revealed that Electronic Management have a significant statistical impact on Value Added and explains (29.4%) of the variation in Value Added. 9. RECOMMENDATIONS According to the findings of this study we can give some suggestions: - The Royal Jordanian Airlines Company should give more attention for integration of Database. - The senior management at The Royal Jordanian Airlines Company should support the application of electronic management. - The Royal Jordanian Airlines Company should use the electronic management accurately to save time, effort and money. - The Royal Jordanian Airlines Company should concentrate on added value as a competitive strategy. REFERENCES. David M. Kaufmann, How to Setup A Paperless Office You Can Do It and Save Money, 2. Edward R. Scheinerman(2000), Invitation to Dynamical Systems, Library of Congress Cataloging-in- Publication Data. 3. Imre J. Rudas, János Fodor (2008), Intelligent Systems, Int. J. of Computers, Communications & Control, ISSN , E-ISSN , Vol. III (2008), Suppl. issue: Proceedings of ICCCC 2008, pp Andrea Prencipe, Andrew Davies, Michael Hobday(2003), The Business of Systems Integration, Oxford University Press 5. McCaffrey, Daniel F.; Hamilton, Laura S. (2007), Value-added: Assessment in Practice : Lessons from the Pennsylvania, Technical report. RAND Education. 6. David Coltrain, David Barton, Michael Boland (2000), Value Added: Opportunities And Strategies, Arthur Capper Cooperative Center, Kansas State University. 7. Harjit Singh Lamba and Gurdev Singh Cloud Computing-Future Framework for e-management of NGO's, International Journal of Advancements in Technology, Vol 2, No 3 (July 20) ISSN Fatimah Hashim, Gazi Mahabubul Alam, Saedah Siraj, E-management for administrative efficiency in Higher Education through participatory decision-making, WSEAS Transactions on Communications Issue 2, Volume 9, February 200, ISSN: Kroenke, David M., 20. Using MIS. New Jersey: Pearson Education, Inc. 0. Laudon, K. C., and Laudon, J. P., Essentials of Business Information Systems, th ed., Prentice-Hall, Inc., Upper Saddle River, New Jersey, Ou Lydia Liu, Value-added assessment in higher education: a comparison of two methods, High Educ (20) 6:445 46, DOI 0.007/s Shokufeh Etebar, Roya Darabi, The Role of The Economic Value Added Measure and Intellectual Capital In Financial Intermediations Market Value In Tehran Stock Exchange (Tse), Australian Journal of Basic and Applied Sciences, 5(2): , 20, ISSN

6 Table () Personal and Functional Characteristics (N=63) Variable Frequency Percent % GENDER male female less than 25 years AGE and more pre bachelor EDUCATION bachelor High studies 7.5 5years and less Period of working from 6 to at bank from to and more 7.5 Table (2) variables Description Characteristics (N=63) No Questions The company uses electronic databases company is very Interested for integration of Database company is very Interested for Application integration company uses specialized Database management system The company's organizational structure supports the application of electronic management company uses Management information system efficiently Company announces about its offered services through the website The company provides a suitable environment for e-planning process There are systems, laws and regulations governing electronic transactions in the company Communication between the company employees is through electronic means The company uses electronic control Electronic management mean Std electronic management Contribute in organizations to reduce costs and improve quality Electronic management contribute to increase operational efficiency Electronic management contribute to increase profitability Electronic management lead to add higher value to output Electronic administration is leading to develop the products and services Electronic management contributes to excellence, development and prowess in performing work. Electronic management provides a lot of flexibility and speed in the delivery of services electronic management lead to involve all parties of the organization in strategic planning Electronic management helps to get the information at any time and place Electronic management helps to reveal the strengths and weaknesses of the managerial work and Strengthen them. Electronic management contributes to saving time, effort and money Electronic management is leading to increase the efficiency of employees and motivate them to work together Electronic management lead to more organized work electronic management allows to adjustment the prices electronically, according to supply and demand Value Added

7 Table (3) Correlations (N=63) Value Added person's rho Electronic Management Correlation Coefficient.542(**) ** Correlation is significant at the 0.0 level (2-tailed). * Correlation is significant at the 0.05 level (2-tailed). Sig. (2-tailed).000 N 63 Table (4) Model Summary Mode l R R Square Adjusted R Square Std. Error of the Estimate a a predictors: (Constant), electronic management Table (5) ANOVA (b) Model Sum of Squares df Mean Square F Sig (a) a. predictors (Constant), electronic management b. dependent Variable: value added Table (6) Coefficients (a) Model Unstandardized Coefficients Standardized Coefficients t B Std. Error Beta Sig. (Constant) Value added a dependent Variable: value added 7