Part 1: The Singapore Aviation
Industry Overview
Singapore
Airlines famously known as (SIA) is a company celebrating over two decades of
exemplary performance in the aviation sector. This airline, one that has
outdone its competitors for over 25 years enjoys national career status in
Singapore. That is, it has stamped its presence in not only Singapore but also
in Asia. Moreover, the airline has direct flights to the United States of
America. The state has over 50% stake in the company. The state shares are
monitored by a company called Tamasek holdings. However, there is minimal
involvement of the state in the daily operations of the airline. Singapore
Airlines as per the year 2011 had 21,534 staff. The Airline employees’
interests are taken care of by five worker unions (Cendrowski, 2010). This paper seeks to discuss a number of issues
surrounding the management of SIA and how they affect the airline success.
The Organization Structure of
SIA
Singapore
Airlines has adopted a unique working style. The firm subdivides its Cabin crew
employees into groups of thirteen persons each. Group members are given joint
assignments. The reason behind this is to ensure group members’ nature a
relatively strong bond (Cendrowski, 2010).
Those leading these groups also play the role of counselors. Another unique
factor in the operations of SIA is the presence of check-trainers who often
monitor the performance of various groups.
Part 2: The Changing Trends in
SIA
Management Change
Singapore
Airlines is constantly trying to align with the ever changing market demands.
To thrive in attracting and retaining customers, the airline is looking to
improve its services and streamline its functions. To achieve this noble goal,
the airline is embracing innovation and new technologies. Moreover, SIA stresses
on the need for cost effectiveness in all its operations. This strategy is in
line with its long term plans of doing a general overhaul in its operations. The
airline is seeking to increase its general performance in the market without
necessarily increasing service prices. The move is aimed at taming competition
by improving the quality as well as quantity of services offered to clients. However,
on a number of occasions, the company has outdone its performance policy by
embracing major initiatives. A guess in point is the 2008 financial crisis;
here the management of Singapore airlines converted to business class all its
transatlantic flights. This was a radical managerial move. During the financial
crunch, the airline was facing a reduction in its revenues, internationally;
most airlines were trimming down their travelling costs. Despite it being pains taking, the strategy
rewarded well after the financial crisis was addressed (Donaldson, 2001).
Group Dynamics
The
division of employees into different groups fosters an effective service
culture. The Main objective of Singapore airlines is to increase its revenues
while at the same time staying ahead of its competitors. Chong (2007) asserts that the adoption and subsequent
reinforcements effective service culture is very well in line with the overall
competitive strategy of the company. The management of SIA has been able to
increase the productivity per employee by nurturing interpersonal bonding and
production mentality. The aforementioned implies that groups do not compete but
operate in accordance to the firm set goals. The management has succeeded in
making groups understand what is required of them by the organization and how
to work in order to meet these goals. The firm also evaluates the contribution
of each group to firms’ performance annually. This evaluation helps nature a
sense of belonging which diffuses tensions related to group competitions. With
diffused tensions, cabin crew employees are able to compare notes with other
individuals from other groups. The cordial relationship between Singapore
airline employees and their employer nurtures a good relationship between the
employees and consumers. This therefore improves the company image and
subsequently its performance.
Part3:
Planning
Planning
is often the nerve organ of a business establishment. It is a function that
requires the management/leadership of a company to ascertain the future
prospects of a company using present performance. Good planning is required to
ensure SIA stays ahead of its competitors. Being an uncontrollable process, the
management needs to analyze the factors that may derail SIA performance and
devise ways of addressing the same. This will ensure that the firm is enjoying
a strong footing as far as its goals and objectives are concerned
Organizing
Having
a sound plan does not guarantee success. Management needs to marshal resources
to help it implement plans. By getting organized, SIA is able to devise a sound
organizational structure i.e. one that is well aligned to its goals. In
addition, being organized enables a firm boosts its relationships with not only
customers but also with its employees. Management needs to devise ways that
seek to foster smooth departmental operations as well as sound ways of
addressing grievances and work related differences between employees
Directing
Directing
enables a firm management affect and monitors the behavior of its employees.
This is often centered on staff motivation and related performance. Motivation
plays a very critical role in improving the contribution of an employee to a
firm. Recognition and reward are two common ways that can be used to motivate
an employee. A company that motivates its employees is able to attract and
retain excellent market brains.
Singapore airline has embraced this function and has been able to
attract and retain its employees by constantly rewarding their efforts.
Singapore Airlines offer pay incentives in accordance to individuals’
contribution or the airline performance.
Controlling
Corporate
culture helps instill firms’ values, mission and vision on employees.
Management of a company is responsible for the inducement of these values. The
corporate culture of a company needs to align well with both the short and long
term goals of a company. To thrive in business and stay ahead of competitors,
SIA core culture ought to be aligned with client safety, customer relations and
team spirit. Singapore airlines are often facing cutthroat competition from its
competitors. The management needs to enact sound values that guide employee
operations to enable it stay ahead of its competitors. Employees’ services and
values play an important role in shaping customer perceptions.
In
conclusion, management plays a very important role in daily firm operations. Firms
with a sound management i.e. one that is able to align its functions with the
larger company goals often stay ahead of their competitors. From the above
discussion, it is apparent that Singapore airlines through sound management
have been able to stay ahead of its competitors for nearly three decades. Its
management design is well aligned to the ever competitive environment. Finally,
the firm airline policies are often aligned to consumer tastes and preferences.
Here, the consumer is often viewed as the boss.
References
Cendrowski, S. (2010). Singapore Airlines. Fortune, 161 (8), 22-22.
Chong, M. ( 2007). The role of internal communication and training in infusing
corporate values and delivering brand promise: Singapore Airlines Experience. Corporate Reputation Review, 10(3), 201-212.
Donaldson, L. (2001). The contingency theory of organizations. CA :Sage Publications, Inc, Thousand Oaks.
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