Customer preference for Thomas Cook

Customer preference for Thomas Cook FINDINGS DISCUSSSIONS Customer awareness, taken as a dependent variable and customer preference towards Thomas Cook taken as the independent variable, showed that the former has no significant impact on the latter (as described in the analysis of the first hypothesis where the null hypothesis was accepted and the alternate hypothesis was rejected). Therefore, it can be concluded from the first hypothesis that customer awareness does have a significant impact on customers’ preference towards Thomas Cook. This can be attributed to a variety of reasons, none of them conclusive however, with the lack of further research on the subject. Keeping in mind that the sample respondents reside mainly in Bangalore, it is possible that despite customers being aware that Thomas Cook is a travel management company, they do not prefer it because in Bangalore it does not provide good or satisfactory service. Customers may be unhappy or dissatisfied with the services that are provided by the Thomas Cook branches in Bangalore. Here again it cannot be said that Thomas Cook does not provide good service overall because it is still one of the top travel management companies in the world. Another possibility as to why customers do not prefer Thomas Cook despite being aware of the services can be the price factor. Thomas Cook provides its services at a premium price and customers might see this as too expensive and/or not worth the price that they have been asked for the service. In a country like India where disposable income is not an abundant resource that companies can exploit, it becomes difficult to market a premium service that the customers can easily look upon as an unnecessary luxury. Services such as premium tourism services may not appeal to the common man. Another possible reason for this is that the sample customers, a majority of whom do travel via a travel agency at least some of the time, are already satisfied with the travel agency they currently employ and find no reason thereof to shift to another agency despite knowing that another agency exists which perhaps provides slightly better services. These consumers are â€Å"set in their ways† so to speak and are happy with the current agency of their preference. They find no good enough reason to shift to Thomas Cook for their travel needs. Thomas Cook offers a variety of value added services. The specific value added services that were taken in this study are: Inbound and outbound travel reservations Foreign Exchange Travel insurance Travel packages Visa and passport services Reservations for car and hotel Foreign Exchange These services combine the core functions and services that Thomas Cook offers with added value to give them a uniqueness. This research found that there is a significant difference in these services and that consumers, when asked to rate these services, have a variety of views of these services, that is to say, the services that are provided for foreign exchange are of different quality than those that are offered for travel packages or travel insurance. It was found in this research that most of the sample do use Thomas Cook for their foreign exchange services and these were rated the best. Indeed, the foreign exchange services of Thomas Cook have been rated to be amongst the best in the world, and in fact, most people identify Thomas Cook only for their foreign exchange services and not their travel packages, which is in fact the company’s core business. It is shown in the hypothesis that the various services of Thomas Cook vary in quality, as per the respondents view. In the third hypothesis, it was found that there is a significant difference in customers’ preferences with respect to customers’ awareness about travel agencies. In other words, it is apparent that despite their knowledge about many travel agencies and their services, there is still a lot of variations in what the customers prefer to choose as the travel agency for their travel needs. This shows that customers have their own reasons to choose a specific travel agency and awareness of the services is not the only factor that they take into consideration. Customer preference for an agency is not a factor that can be easily studied or examined. For each customer, the deciding factor is different, and for each factor of customer preference that is taken, there is another that is left out. Studying customer psychology is an in depth with infinite variables that need to be considered, and it still may not be accurate due to the fact that human nature itself is unpredictable. The fourth hypothesis showed that there is no significant relation between the nature of the travel and the agency preference that a customer has. Here, the null hypothesis was accepted and the alternative hypothesis was rejected. This shows that whether a customer needs to travel for business or wants to travel for leisure does not determine the choice of travel management company that the customer makes. There can be a variety of other reasons that can be deduced to find out what other things may determine the customers’ choice of travel management company. Again, none of these are conclusive and need to be looked into with further research on the topic. Social status is one factor that is likely to have a significant relationship to agency preference. The higher up a customer is on the social ladder, the more premium will be the nature of his agency preference. When customers can afford something they have a tendency to show that they can afford it by very publicly using that product or service. This is human nature, and very likely to have an impact on agency preference. Affordability is a very important factor that needs to be considered in terms of preference for an agency. A premium agency may be unattainable by those who cannot afford its services no matter how much they may be aware of it, or no matter what the nature of their travel may be. Affordability and purchasing power of the customer are likely to have a strong relationship with the travel agency that they prefer. Expense is always an important factor that needs to be considered when measuring or trying to ascertain customer preference. Expense was not a factor that was given enough significance in this study. Social sentiments also need to be considered when looking into the customer preference towards any product or service. Certain customers from India may not choose Thomas Cook because despite its being registered in India as Thomas Cook (India) Limited and is now owned by Fairfax (Canada), its name is Thomas Cook, and was originally a company from England. On the other hand, certain customers may choose it for exactly that reason. There are a variety of social sentiments that have a strong relationship with and impact on customer preference towards an agency. They should not be disregarded if the company intends to survive in the environment. It is apparent from the research (hypothesis 5) that customers’ preference towards an agency and the value added service that they prefer have a strong relationship. This relationship can be easily envisioned. Customers will do their research on which travel agency provides which services and which value added services. With the advent of the internet, there is an enormous amount of information available to the customers at their fingertips and in this day and age customers are not easily fooled or misleaded. Customers will accordingly filter travel agencies according to the service that appeal to them and ultimately choose the one that best suits their needs. This will become the agency that they prefer and use for all their various travel needs. Hence, preference of travel agency and the value added services that they prefer have a strong, unmistakable relationship, which marketers can soon look to exploit. The sixth hypothesis works to find out whether or not there is any difference between the value added services and those services which offer mainly the core functions. Here the null hypothesis was rejected and the alternative hypothesis was accepted. Therefore a conclusion can be made that there is a significant difference between the satisfaction levels of the services that are offered by Thomas Cook that is, value added and non-value added. On further inspection of the analysis and the questionnaire it is abundantly clear that the value added services are much more profitable, than other services, in the sense that the customers of Thomas Cook are much more satisfied with these services and perhaps don’t mind paying a bit more for these services than the others. The seventh hypothesis finds that there is a significant difference in the customer preference with regards to the services that are offered by an agency. This means that customers prefer certain services provided by certain agencies and there is not necessarily any one agency which provides all the services that the customers prefer. Even in the agency that they prefer, the satisfaction levels of various services provided and the customers’ preference towards those services are not uniform throughout but vary. One service provided by one agency may good and another service may be better in another agency. Therefore, most of the sample respondents use more than one travel agency for their travel needs instead of sticking to one 1

Conflict, Decision Making, and Organizational Design Essay

1. Discuss how you could apply negotiation strategies to address potential conflicts in the workplace. The primary focus at Department of Veterans Affairs (VA) is patient/Veteran care and establishing new Veteran enrollees. This is done by direct marketing among other forms of outreach. For VA, negotiation will be important in not only establishing a new enrollee, but keeping that enrollee as well. According to Hellriegel and Slocum, integrative negotiations are used to â€Å"achieve results that benefit both parties† (2011, p.397). By consistently explaining and showing Veterans the benefits, they gain by maintaining their health care through VA, and how the outcome will benefit them, VA will continue to receive the federal funding to continue sustained operations for the coming years. According to Hellriegel and Slocum in order for integrative negotiations to be successful, VA should follow these principles: * Separate the people from the problem- VA’s staff must not allow their personal issues with Veterans to interfere with the negotiation process instead focus on the issue at hand. * Focus on interests, not positions – Understand the needs and interests of the clients instead of being concerned about title. * Invent options for mutual gains- This is where creative decision making comes into play. By presenting the client with several alternatives to meet their needs, Winston has a better chance of finding one that the client finds appealing. * Insist on using objective criteria – When dealing with marketing, it is imperative that goals are measurable and obtainable. 2. Determine how evidence-based management could be applied to the work environment you researched. Evidence-based management is defined by Hellriegel and Slocum as â€Å"the premise that using a better, deeper diagnosis and employing facts to the extent possible enable managers and leaders to do their jobs better† (2011, p.425). Hellriegel and Slocum also outline five diagnostic questions to be used to help leaders avoid â€Å"simpleminded quick fixes† (2011, p.425) which address how assumptions are used, if the assumptions are reasonable, and what alternatives could address the same issue more consistently. At Winston there are a few areas where evidence-based management could apply, specifically human resources and scheduling. The human resource department at Winston is responsible for recruiting talent and developing training. Both these tasks are found in almost all organizations, therefore extensive data about how to best approach them is available. In such an instance, utilizing tried and true techniques for evaluating prospective employees and training them to properly do their job saves Winston time and money because they do not have to risk failure trying to develop their own techniques. Scheduling is also an area where there is extensive data that supports how to properly schedule employees to ensure that all client goals are met in the predetermine time frame. In fact, scheduling is one of the major components of Operations Management. 3. Analyze the blocks, stages, and methods of creative decision making to determine the best approach the employer you researched should follow when making managerial decisions. The very nature of the business at Winston lends itself to creative decision making since all the tasks involve the use of some form of creativity. From packaging design to visual stylists, the team at Winston is constantly using their creativity to meet client expectations. As a result of the artistic environment, using creativity when making managerial decisions comes naturally at Winston. There are several blocks, stages and methods of creative decision making yet only one approach would work the best at Winston, Osborn’s Creativity Process. Creative decision making involves several things, but before beginning the process it is important to recognize the blocks that can it from working properly. Perceptual blocks happen when one does not interpret a problem correctly based on a limited scope of understanding. When applied to the type of work done at Winston this can happen if an Account Manager incorrectly stereotypes the target demographic based on their personal experiences. Cultural blocks happen when one has a desire to conform to societal norms, avoid conflict, be practical, and believe that open-ended exploration is a waste of time (Hellriegel & Slocum, 2011, p. 431). The staff at Winston must not be held back by cultural blocks because often the brands they work for are being marketed to an extremely diverse customer base with no clearly defined culture. In fact, part of what Winston does is create the brand’s culture so that like-minded individuals feel a sense of connection and will purchase the products . The final block, emotional, is most often seen as the presence of fear. Whether it is fear of failure, fear of others, or fear of making a mistake this emotion is a strong deterrent to the creative process. According to Hellriegel and Slocum, â€Å"For many organizations, fostering creativity and innovation is essential to their ability to offer high-quality products and services† (2011, p. 432). For Winston’s continued success, creativity and innovation must occur with every client on a consistent basis or they will lose business. For a brand to stand out in the increasingly crowded retail environment, their marketing efforts must be memorable and identifiable. This holds especially true when Winston designs the space a client will occupy in a brick-and-mortar retailer where brands are often thrown together based on functionality. If the space looks like something that has already been done, chances are customers will overlook it and go for something else that catches their eye. Once the three blocks are addressed, the creative process can begin. There are five stages to the creative process that are similar to the phases that are a part of Osborn’s creativity process. The first and second stages of the creative process, preparation and concentration, is similar to Osborn’s first phase, fact-finding. All three focus on identifying/defining and investigating the issue or problem. It is important to note that identifying the problem must be followed by â€Å"gathering and analyzing relevant data† (Hellriegel & Slocum, 2011, p 434) so that there is a solid base to build upon during the following stages/phases. For Winston this may mean discovering that a problem with accessibility and visibility, not the product itself, are the reasons why buyers were not interested in a particular brand at a trade show (supported by sales data). The team at Winston can then use pictures and diagrams of the last trade show booth and layout to create new des igns for the next one during the incubation stage or idea-finding phase. The incubation stage is the third of five stages in the creative process and is similar to the idea-finding phase of Osborn’s creativity process. During this stage/phase, management brainstorms alternative solutions to the problem or issue identified in the previous stage/phase. In order to come up with the best solution possible, no idea should be rejected during this stage and team members should let their imaginations run wild since this is the perfect opportunity to be innovative and separate the client’s brand from competitors. This stage/phase is the most important to a creative services firm such as Winston because the generation of several ideas gives the Account Manager several options to pitch to the client. With a variety of options it is more likely that the client will find one they like and decide to do business with Winston instead of another firm. The fourth stage in the creative process is the illumination stage which â€Å"is the moment of discovery† (Hellriegel & Slocum, 2011, p.432). Similarly, Osborn’s creativity process has the solution-finding phase which involves generating and evaluating possible courses of action and deciding how they should be implemented (Hellriegel & Slocum, 2011, p.435). During this stage management must come to a consensus about which of the ideas generated during the previous stage/phase would best address the problem or issue identified at the beginning of the process. At Winston this would mean narrowing down the ideas generated to the top two or three, pitching them to the client, and then working with the client to implement the one chosen. Verification, the final creative stage, has no counterpart in Osborn’s creativity process. According to Hellriegel and Slocum, this stage â€Å"involves the testing of the created solution or idea† (2011, p. 432). At Winston this may mean building a small version the revamped trade show booth and using it at a few minor shows as a test run before unveiling it at the industries larger trade shows such as WWD MAGIC in Las Vegas. Testing is important because it allows the kinks to be worked out before producing something on a large scale which could mean a huge financial loss if done improperly. Although there are other creative decision making methods, Osborn’s creativity process works best for Winston because it is straight-forward and simple to execute. The other models of creative decision making are electronic brainstorming and De Bono’s lateral thinking. Electronic brainstorming is also not a good option for Winston because the software required to correctly utilize this method is an expense that such a small firm cannot afford when trying to keep their prices competitive. Also, the artistic aspect of the work done at Winston is best collaborated on in-person so that drawings and models can be seen by all involved. De Bono’s lateral thinking method involves the usage of techniques such as analogy, cross-fertilization, and reversal. This method is not the best for Winston because the techniques used to foster the development of new ideas are not feasible for the type of work done at Winston. For instance, the cross-fertilization technique requires the use of outside experts from other fields which means additional expenses that a small firm such as Winston may not be able to afford. The analogy technique requires specific and concrete analogies, whereas the nature of the messages and work done by Winston are abstract. Finally the reversal technique â€Å"involves examining a problem by turning it completely around, inside out, or upside down† (Hellriegel & Slocum, 2011, p. 433). This is the one technique that may work for Winston, but it is a more complex process than Osborn’s and therefore harder to follow. 4. Discuss the environmental and strategic factors that affect the organizational design of the company you researched. Winston utilizes a decentralized network design to ensure efficiency and profitability. According to Hellriegel and Slocum, â€Å"Decentralization is the delegation of authority to lower level employees or departments† (2011, p.460). Decentralization relies upon upper management delegating certain tasks which allow lower level employees to make decisions within predetermined constraints. For instance, Winston’s field merchandisers often need to make changes to their schedules. There are a number of Staffing Managers who are able to review and approve these changes, thus allowing the Senior Manager of Staffing and Analysis to focus on more important tasks. Winston’s horizontal organizational design type is a network. â€Å"Organizational design is the process of selecting a structure for the tasks, responsibilities, and authority relationships within an organization† (Hellriegel & Slocum, 2011, p.446). In the case of Winston, although there are two main offices, New York and San Francisco, a large portion of the work is done by independent contractors throughout the nation in the field. According to Hellriegel and Slocum this is a network design, meaning an organizations â€Å"subcontracts some or many of its operations to other firms and coordinates them to accomplish specific goals† (2011, p. 467). There are several environmental factors that affect organizational design including suppliers, distributors, competitors, and customers (Hellriegel & Slocum, 2011, p448). The first environmental factor to be considered when developing an organizational design is suppliers. Although Winston does not use raw materials to create a product, they still need suppliers to provide office goods and technology. Office goods are used at Winston for basic needs such as printing, taking notes, etc., but also for industry specific tasks such as preparing storyboards and interior space design drawings necessary to acquire and service clients. Technology suppliers are needed for things such as phone and internet service as well as cell phones, analytical software, and computers. As a mid-sized company, Winston must ensure that they work with suppliers that are not only reliable, but also cost-efficient. To guarantee a streamlined ordering process, Winston employs a full-time Purchaser whose sole task is to negotiate with and order from suppliers. The second environmental factor that affects organizational design is distributors. Hellriegel and Slocum define distributors as â€Å"the various organizations that help other organizations deliver and sell its products† (2011, p.449). As a provider of a service, Winston has a small distribution channel in terms of tangible goods, but a large one in terms of intangible service providers. To deliver materials such as tags, name badges and other marketing goods to their network of field merchandisers Winston has a business account with FedEx. Within the organization the Account Managers are responsible for getting material to their subordinates get in a timely manner so that goals are met in the required timeframe. On the intangible side, Winston’s nation-wide network of independent contractors is responsible for delivering the in-store services that clients rely upon Winston to deliver. Competitors are the third environmental factor to be considered when determining organization design. Hellriegel and Slocum wrote, â€Å"Competitors can also influence the design of an organization because they drive the organization to become more productive† (2011, p.449). As a mid-sized company, Winston must work extremely hard to ensure they remain cost competitive against larger retail marketing firms. To do so, Winston needs to utilize a design that is â€Å"simple and easy to manage† (Hellriegel & Slocum, 201, p. 449). One way major way Winston does this is by keeping their employee count low. Account Managers handle several accounts at once, decreasing the need for a large number of employees on this level. Also Winston uses part-time independent contractors in the field instead of full-time staff to make the payroll process simpler as it does not include tax or benefit deductions. The final environmental factor that influences organizational design is customers. At Winston the customers are the retail companies that hire them to do a wide variety of marketing tasks such as merchandising, brand promotions, environmental design, etc. To develop and maintain accounts with valuable clients and remain competitive, Winston offers personalized services with an eye for detail. As mentioned in paragraphs above, Winston works hard to ensure that overhead remains low so that they can offer competitive pricing. References Hellriegel, D., & Slocum, J. W., Jr. (2011). Organizational behavior: 2011 custom edition (13th ed.). Mason, OH: South-Western Cengage Learning. Krivis, J. (2006). Can we call a truce? Ten tips for negotiating workplace conflicts. Employment Relations Today (Wiley), 33(3), 31-35. doi:10.1002/ert.20115 Supplier Relationships.(2012). Retrieved September 7, 2012 from http://www.entrepreneur.com/encyclopedia/term/82658.html

Regulatory Agency Paper Essay

The agencies that are in charge of monitoring health care facilities and practitioners are known as health care regulation agencies. These agencies also provide the organizations with information about changes in the industry. At the federal, state, and local level the agencies establish rules and regulations that health care organizations have to follow mandatorily. Some agencies, especially those that provide accreditation for health care professionals, require no mandatory participation. The objective of this paper is to examine one of those health care regulatory agencies; the Centers for Disease Control and Prevention. The audience will learn more about the history of the organization as well as responsibilities and effects of this agency on the health care industry. The Centers for Disease Control and Prevention (CDC) was created on July 1st, 1946 under the name Communicable Disease Center in Atlanta, Georgia. The whole organization occupied one floor of a small building. The f irst goal as an organization was simple; it was to prevent malaria from spreading across the nation. As a team with this goal the CDC was armed with a budget of $10 million and less than 400 employees. The founder Dr. Joseph Mountin continued to advocate for the public and its health issues, he pushed to have the CDC extend its responsibilities to other communicable diseases. Today, the CDC is one of the major operating components of the Department of Health and Human Serves and is recognized as the nation’s premiere health promotion, prevention, and preparedness agencies. (Our History – Our Story, 2013) This agency is not just focused on the disease and prevention either; their focus goes beyond that to addressing the issues, and including mental health and cancer research. Of all the organizations on all levels of government, the center for disease control is the most widespread and effective due to the amount of responsibility and information that is relayed and provided, and the  speed in which this is done. This organization runs on all levels of government, and must provide up to date factual information at all times. With the goal to educate and raise awareness of disease, death rate, precautions, and many other public health concerns there is a huge responsibility to ensure accuracy and effectiveness on all areas. The CDC is a 24 h our job; the organization is constantly working to protect Americans from health, safety and security threats both international and local. Whether disease begins at home or abroad, acute or chronic, treatable or terminal, human error or deliberate attack the CDC fights disease and supports the community and citizens to do the same. Most recently in the news there was an instance of an Ebola outbreak in West Africa. This is not a huge concern for most of us that aren’t traveling there, or don’t have family that travels back and forth, but for the Center for Disease Control this was a huge concern. This was the largest outbreak in history, and also the first on in Africa. The threat to the US is small, but the CDC being a national organization focuses on alerting us even when the threat is elsewhere and they also help provide facts and information. With this outbreak the CDC started working with other government agencies including: the World Health Organization, and other domestic and international companies to help activate the Emergency Operations Center. This is done to help coordinate technical assistance and control activities with partners. The communication between government agencies during these times is crucial to ensure supplies, shelter, medication, and assistance is provided when needed. The Center for Disease Control has ensured to deploy teams of public health experts to West Africa and will continue to send experts to the affected countries. This is evidence of the miraculous team work that begin with the CDC. Without the technology, information, and ability to coordinate countries, and public health experts, West Africa would be suffering more struggles than what this outbreak has already caused. (2014 Ebola Outbreak in West Africa, 2014) The Center for Disease Control is one of the most major operating components of the Department of Health and Human Services. The organization uses grants and contracts to fund 85% of the costs to promote health and quality of life by preventing and controlling disease, injury, and disability. Each year, the CDC awards approximately $7 billion in over 14,000 separate grant and contract actions, including simplified  acquisitions (CDC’s Procurement and Grants Office, 2013). Although this is a government organization, there are also state wide and county wide alerts, prevention, and management that are used to focus in on specific areas that may be affected when other areas are not. CDC’s Business Management and Accountability Activities are guided by the following principles: stewardship of public funds, continuously improving customer service and satisfaction, providing the best value for the investment, accountability through performance metrics, job satisfaction through workforce development, and searching for innovation in work processes (Business Practices, 2013). In order to remain affe ctive in a growing society based on technology, the Center for Disease Control has modified the business practices. An example of this is in order to have funding available for future threats, the organization has consolidated all 13 information technology infrastructure services, this in turn reduced operating costs of 21% ($23 Million) (Business Practices, 2013). Another way that the Center for Disease Control carries out the duty of helping manipulate the budget to prepare for any future threats or outbreaks is over the last two years the organization has conducted public-private sector competitions for various functions covering nearly 1,000 CDC staff positions resulting in saving over $40 Million through the development of the most efficient organizational proposals to carry out required functions. (Business Practices, 2013) The Center for Disease Control has a huge regulatory authority to health care. The responsibility to consolidate thousands of disease cases is hard enough, but the CDC must also remain anonymous in some areas to keep the patient’s health record information and personal information discrete, while also alerting the community of a possible disease spread. HIPAA, Health Insurance Portability and Accountability Act, is not only followed by health care professionals, but must also be regulated with the CDC as well. H ospitals must also report to the CDC when certain cases of certain diagnoses come up, and when new threats arise as well. Together the health care professionals and the Center for Disease Control must: alert the community, respect privacy, prevent panic, and provide a solution. These goals are a huge responsibility and yet this organization has managed to provide these services steadily since 1946. The Center for Disease Control has a certification and accreditation process that ensures all information systems  made available by CDC to implement the National Program Cancer Registries, or NPCR meet or exceed the C&A accreditation standards when operated with appropriate management review. It requires ongoing security control monitoring and reaccreditations periodically or when there is a significant change to an information system or its environment. Within the accreditation process there is security certification, which when talking about the Center for Disease Control is a comprehensive evaluation of the CDC’s management, operational, and technical security controls for an information system. This documents the effectiveness of the security controls in a particular operational environment and includes recommendations for new controls to mitigate system vulnerabilities. Security certification results are used to assess risks to the system and update the systems securit y plan. (The CDC Certification†¦, 2012) In conclusion there have been facts supporting the agencies structure, and the history of how the agency became successful in the public health eye. This paper covered the organizations’ effect on health care and improvements to everyday life in multiple communities across the world, and the regulatory authority that the Center for Disease Control has in relation to health care. Although we have many agencies working together toward a common goal of better health, the Center for Disease control definitely holds a high standard of impact. With all of the regulations, accreditations, partnerships, and knowledge that the Center for Disease Control is able to manage and coordinate how did the world of health ever run without it? With these facts, and examples the role and regulation of the CDC is more clear and understood, so next time there is an outbreak in research, or in disease there will be one thing we can count on and that is that the CDC will be on the frontline ready to organize, prevent, educate, and assist in the solution. References 2014 Ebola Outbreak in West Africa. (2014, September 6). Retrieved September 8, 2014, from http://www.cdc.gov/vhf/ebola/outbreaks/guinea/ Business Practices. (2013). Retrieved September 8, 2014, from: http://www.cdc.gov/about/business/business.htm CDC’s Procurement and Grants Office. (2013). Retrieved September 8, 2014, from http://www.cdc.gov/about/business/funding.htm Our History – Our Story. (2013). Retrieved from: http://www.cdc.gov/about/history/index.html The CDC Certification and Accreditation (C&A) Process. (2012). Retrieved September 8, 2014, from http://www.cdc.gov/cancer/npcr/tools/security/cdcca.htm

Vicarious Liability Problem Essay Example Pdf - Free Essay Example

Sample details Pages: 4 Words: 1292 Downloads: 5 Date added: 2017/06/26 Category Law Essay Type Essay any type Did you like this example? In order to advise Freddy Hobart Ltd, one would have to explore the rules of vicarious liability of an employer and case law which may apply. Vicarious liability arises where there is a relationship between the tortfeasor and the party who becomes vicariously liable which justifies giving the latter responsibility for the acts of the former[1]. This means that a victim of a tort, in the present scenario being Flora, can claim compensation from the employeeà ¢Ã¢â€š ¬Ã¢â€ž ¢s company if it is proven that the tort occurred as a result of the employeeà ¢Ã¢â€š ¬Ã¢â€ž ¢s fault when he was in the course of his employment. In order for Freddy Hobart Ltd to be vicariously liable for Jameelà ¢Ã¢â€š ¬Ã¢â€ž ¢s negligence, three requirements will need to be satisfied. Don’t waste time! Our writers will create an original "Vicarious Liability Problem Essay Example Pdf" essay for you Create order First, there must be an employer/employee relationship between Freddy Hobart Ltd and Jameel. Employers are only vicariously liable for the acts of their employees as is shown in the case of Ready Mixed Concrete v Minister of Pensions[2]; an employer is not liable for the act of its independent contractors as is illustrated in the case of Honeywill and Stein v Larkin[3]. This requirement has clearly been met since it is mentioned that Jameel was under a contract with Freddy Hobart Ltd with all the rights and duties of a full employee. Second, it must be established that Jameel has committed a tort. We are told that the lorry crashed because of Jameelà ¢Ã¢â€š ¬Ã¢â€ž ¢s negligent behaviour. So it would appear that this requirement has also been met. The third requirement is more complex. It must be established that Jameelà ¢Ã¢â€š ¬Ã¢â€ž ¢s negligence was engaged in while he was in the course of his employment with Freddy Hobart Ltd. If this requirement is not met, then Freddy Hobart L td will not be vicariously liable but Jameel will be personally liable in respect of Flora as was shown in Beard v London General Omnibus Co[4]. There are two tests used by the court to determine if the third requirement has been met; namely, the Salmond test as established in Salmondà ¢Ã¢â€š ¬Ã¢â€ž ¢s Law of Torts[5] and the à ¢Ã¢â€š ¬Ã‹Å"close connectionà ¢Ã¢â€š ¬Ã¢â€ž ¢ test as established in Lister v Hesley Hall Ltd[6]. Where the tort is committed intentionally, the latter test is preferable. However as we are dealing with negligence, we will consider both tests. Under the Salmond test, the third requirement will be met if the tortious act was either a wrongful act authorised by the employer or a wrongful and unauthorised mode of doing some act authorised by the employer[7]. Jameelà ¢Ã¢â€š ¬Ã¢â€ž ¢s act of negligence will not come within the first part of the Salmond test but it could come within the second part. He is authorised to drive the lorry to make deliveries. The problem which arises is that instead of being accompanied by another company driver, he took his niece, Flora with him. He moreover drove for seven hours without a break despite having company regulations which clearly states that company drivers should alternate driving shifts of no more than four hours each. In Century Insurance Co v Northern Ireland Road Transport Board[8], it was held that the fact that an employee was doing his job negligently does not necessarily take him outside the course of his employment. Again the court will examine all the circumstances. As noted in Cooke, an employer may be vicariously liable for an act if the prohibition applies to the way that the job is done, rather than the scope of the job itself. Similarly in the present scenario, company regulations only mentioned about the way long haul deliveries is to be carried out. The scope of the job was still the same à ¢Ã¢â€š ¬Ã¢â‚¬Å" making deliveries. In Limpus v London General Omnibus[9], the court stated that a bus driver is within the scope of his employment when he races other buses even if he is strictly prohibited from doing so. However in the present scenario, Jameel was not just going about his work. He also planned to visit Scotland with his niece. An important question that arises here is whether or not this act would amount to a à ¢Ã¢â€š ¬Ã‹Å"frolicà ¢Ã¢â€š ¬Ã¢â€ž ¢ of Jameelà ¢Ã¢â€š ¬Ã¢â€ž ¢s that takes him outside the course of his employment. This will be heavily dependent upon the facts of the case. In Storey v Ashton[10], an employer was not held liable when the driver completed his work and then went to visit a relative. This was a new journey which had nothing to do with the employment[11]. Other cases involved in frolics are Harvey v RG Oà ¢Ã¢â€š ¬Ã¢â€ž ¢Dell[12] , Hilton v Thomas Burton Ltd[13]. Similarly, if we apply this principle to our current scenario, it is probable that the court regards Jameelà ¢Ã¢â€š ¬Ã¢â€ž ¢s journey with his niece as being an independent one outside his course of employment. If such is the case, then Freddy Hobart Ltd is very likely to escape liability in respect of Flora. The second limb of the test has been rejected by the House of Lords in Lister. Modern case law suggests that the second part of the Salmond test may need to be modified to a close connection test. The close connection test asks whether or not the tort was so closely connected with the employeeà ¢Ã¢â€š ¬Ã¢â€ž ¢s employment, that it would be fair and just to hold the employer vicariously liable. Again all the facts are relevant. If Jameelà ¢Ã¢â€š ¬Ã¢â€ž ¢s contract of work provides that the lorry is only to be used for work-related business, then one might argue that he was not acting within the course of his employment. Finally the court might feel that there was no sufficient closeness between the employment in question and the tort in order to impose liability on Freddy Hobart Ltd. If Jameel had been accompanied by Barney, then Freddy Hobart Ltd could be vicariously liable for Jameelà ¢Ã¢â€š ¬Ã¢â€ž ¢s negligence since unlike with Flora, there would have been no à ¢Ã¢â€š ¬Ã‹Å"frolicà ¢Ã¢â€š ¬Ã¢â€ž ¢ this time. He would have been acting in the course of his employment when the tort occurred and therefore the three requirements for vicarious liability would have been satisfied. As noted in Cooke, an employer may be vicariously liable for the negligence of an employee which leads to the claimant employee being injured. The employerà ¢Ã¢â€š ¬Ã¢â€ž ¢s liability here is strict. Unlike the case with Flora, Freddy Hobart Ltd also owes a personal duty of care towards Barney since he is their employee. In Wilsons and Clyde Coal[14], the court stated that this duty is à ¢Ã¢â€š ¬Ã‹Å"non-delegableà ¢Ã¢â€š ¬Ã¢â€ž ¢- the employer must provide a competent staff, adequate material, a proper system and effective supervision. In the present scenario, we are not given suffici ent information on the experience of Jameel as a driver. Freddy Hobart Ltd may be personally liable in respect of Barney if Jameel is judged as not being sufficiently experienced and Barney is injured as a result. However, one might also argue that since Barney is a fellow driver, should he not have taken the wheel after the four hours. In that situation, it is up to the court to decide whether it is fair and just to impose liability on Freddy Hobart Ltd since it was partly because of Barneyà ¢Ã¢â€š ¬Ã¢â€ž ¢s fault that the tort occurred. [1] Catherine Elliot and Frances Quinn, Tort Law (9th edition, Pearson Education, 2013) p 377 [2] Ready Mixed Concrete (South East) Ltd v Minister of Pensions [1968] 2 QB 497 [3] Honeywill and Stein v Larkin [1934] 1 KB 191 [4] Beard v London General Omnibus Company [1900] 2 QB 53 [5] J Salmond, Law of Torts, (Sweet and Maxwell, 1907) p 83 [6] Lister v Hesley Hall Ltd [2002] 1 AC 215 [7] John Cooke, Law of Tort (11th edition, Pearson, 2013) p 536 [8] Century Insurance Co v Northern Ireland Road Transport Board [1942] AC 509 [9] Limpus v London General Omnibus Co (1862) 1 HC 526 [10] Storey v Ashton (1869) LR 4 QB 476 [11] Ibid p 537 [12] Harvey v RG Oà ¢Ã¢â€š ¬Ã¢â€ž ¢Dell [1958] 2 QB 78 [13] Hilton v Thomas Burton (Rhodes) Ltd [1961] 1 WLR 705 [14]