Organizational Environment and Behavior of Singapore Airlines

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Abstract

Environmental and behavioral analysis of a company forms an intrinsic examination of the key aspects that determine an organization’s ability to effectively operate both from internal internally and externally.

Effective understanding of the environment at Singapore airlines has been necessary towards improving management standards at the company. In addition, it has enhanced higher customer value in services delivery besides increasing levels of productivity and profitability.

Its leadership has remained steady and quite efficient since the establishment of the airline. This is due to the fact that the company has emphasized on the need for effective planning, technological development and shrewd leadership that provides the necessary focus for the company to achieve its objectives and strategies.

Introduction

Environmental and behavioral analysis of a company forms an intrinsic examination of the key aspects that determine an organization’s ability so that it can effectively. It is worth noting that an airline can hardly evade challenges in its operations just like other businesses units.

However, the effectiveness of daily operations is subject to other related and different business applications. Moreover, effective understanding of the environment and behaviour of an organization is necessary in enhancing better management in a company, higher customer value in services delivery, and increased levels of productivity and profitability.

In order to effectively bring out the behaviour of Singapore Airlines, the paper employs theoretical frameworks to explain both the environmental and strategic analyses. When Singapore Airlines came into being, that is in 1972, it enrolled 6000 members of staff.

It had 10 aircrafts while it operated in 18 countries within their cities. It has done exemplary well since then. It is currently operating in about 40 countries having a network of 90 destinations (Huselid, Jackson & Schuler, 1997).

It is an engineering company stationed at Changi Airport in Singapore and provides engineering services to other air carriers who are about 80 of them spread in other continents The paper concludes by emphasizing on the need for the correct organizational culture based on continuous improvement that is dynamic to technological progress as well as the need for modernistic consumerism patterns.

A brief background of the company

Singapore Airlines Limited (SIA) is one of the major airlines which ply various destinations across South Asia, East Asia and South East Asia (Varey, 2006). It is worth mentioning that its airbus A304-500 operates from Singapore to Los Angeles Ns Newark.

The SIA forms the main airline of Singapore with its hub at Changi Airport. Studies indicate that the company was formed in 1947 and was able to fully develop through technical assistance from Qantas Empire Airways and British Commonwealth airlines (Varey, 2006).

Figure 1: A diagram showing Singapore airline flight

A diagram showing Singapore airline flight.

Today, the company has numerous fleets and has diversified its structure into different industries and sectors.

The company’s leadership

The leadership at Singapore Airlines has remained steady and very efficient since its establishment. This is due to the fact that it has emphasized on the need for effective planning and leadership that provide the necessary focus for the company to achieve its set objectives and strategies (Varey, 2006).

The company has been able to generate the necessary demand for higher returns through effective leadership. The latter has been enhanced by the positive effects of the market.

Its leadership has also been able to empower the organization’s staff at the lower levels in terms of addressing the different problems of the company (Cunningham & Gerrard, 2000). This has been made effective through vertical and horizontal communication in the company.

Figure 2: A figure showing the organizational structure of the company

A figure showing the organizational structure of the company.

Decision making and negotiation process

As indicated form the above figure, it is evident that decision making and negotiations in SIA are processes that involve all stakeholders and employees. Communication acts as a good avenue for solving different problems that affect staff members and the rest of management (Cunningham & Gerrard, 2000).

It is worth noting that majority of the tasks within the company are directly linked to enhance better management and rational decision making as employees progress with their various duties.

It is from this consideration that the role of its human resource department is very essential in guaranteeing the necessary harmony between the staff as they continue with their major operations (Varey, 2006).

Besides, provision for response mechanisms and reporting networks at the field and the company level raised the overall assessment capacity of the company’s progress.

Communication networks

Communication is one of the major factors that dictate the ability of an organization to effectively articulate its goals and objectives both at the internal and external levels.

Cunningham and Gerrard (2000) argue that communication between the major departments, staff, and the top management acts as a major indicator of the progress to be expected from a given company.

In cases where effective communication is established, there is general harmony between the production systems, the overall production capacity and the expected target goals and objectives.

As the mission of the organization states, Singapore Airlines is mainly oriented at providing its consumers with safe and reliable transport services that meet the expectation of the shareholders.

It has therefore been the role of its human resource department to ensure that the correct communication considerations are articulated into the existing staff and new staff as time progresses.

As indicated by the term ‘reliable’ in the mission of the company, the total manifestation of reliability invokes the demand for interdepartmental cooperation with prompt response for the short term and continuous improvement of the organization.

Organizational change

Organizational change is an important aspect in modern business operations because it involves all stakeholders of a company. Their views are incorporated with the aim of enhancing their participation, and most importantly, generating their identity in order to reduce resistance (Varey, 2006).

Therefore, ensuring that change demands are acceptable in an organization requires intrinsic understanding of an organization’s culture and also operating within its outline. This should be projected towards an organization’s mission and objectives.

Mary Jo Hatch posits in her model of culture dynamics that employees form the most critical element in a change process because they are directly involved in a project’s implementation.

Even so, Varey (2006) observes that the ability to ensure organizational change is one of the hardest aspects that companies faced on a regular basis. As indicated earlier, it is largely due to the inherent demands of an organizational system that calls for all stakeholders to conceptualize the requirement and also internalize its possible repercussions.

Wirtz and Johnston (2003) assert that management should view an organization as a highly interdependent system that cannot effectively run with one malfunctioning unit.

In Singapore Airlines, the process of effecting organizational change has experienced a very slow pace of implementation due to poor cooperation and resistance from some units (Cunningham & Gerrard, 2000).

The extent of change at this Airline has been very minimal due to the perceived negative impacts of making adjustments among employees.

Organizational change demands effective employees at all levels of an organization while harmonizing the efficacy of the set strategies. One of the key strategies that Singapore Airlines has sought to implement is the establishment of effective communication systems.

Communication in this airline company is essential for relaying the correct information between employees and the top management. This would seal possible loopholes for employees who obtain wrong formation.

Power and politics

The influence of power and politics in its macro-environment has had massive influence in the operations of the company (Cunningham & Gerrard, 2000).

It is worth mentioning that the involvement of politics in its leadership and control has boosted its image while slowing down its operations.

The culture of the organization has also been eroded by the introduction of fresh initiatives and processes dictated by the political environment.

Organizational culture and innovation

One of the major roles of the human resource department in Singapore Airlines is to establish and promote the necessary objective-oriented organizational culture. Wirtz, Heracleous and Pangarkar (2008) point out that organizational culture dictates the values, beliefs, relationships, and harmony both at the internal and external levels.

Moreover, many organizations have neglected the role and notion of establishing effective organizational cultures. Although organizational cultures from most organizations are exercised in a more formal mode, it is the main subculture that dictates the ability of the main culture when it comes to effective application of culture.

Employees operate in major circles that do not merely dictate their inner perceptions of different organizations’ management, but also act as the main drive by either accepting or rejecting the ideas they perceive to have less value among them (Cunningham & Gerrard, 2000).

It is against this backdrop that Singapore Airlines has enshrined the roles of its human resource segment to the basic notion and understanding of various demands of the staff in order to reduce their overall resistance to the much desired progress.

As indicated earlier, by striving to infer positive images and relation networks between its management and workers, Singapore Airlines emphasizes that the roles of employees are indeed the most crucial bit in ensuring that consumers get the best services (Varey, 2006).

The creation of the belief system that employees are not just the main anchors for progress, but they also determine the future of the company is indeed true. Such a philosophy encourages them to boost their efforts in setting the necessary footprints in the company.

It is from this notion that the human resource management has effectively derived the necessary identity for the employees as they associate more with the company and participate in its decision making (Cunningham & Gerrard, 2000).

Furthermore, one of the main pillars at Singapore Airlines is the value for innovation. The company has directed its human resource department with the responsibility of ensuring that all procedures that lead to improvement of customer value are achieved.

As a major part of the organizational culture, recruitments, staff development, promotions, and internal relations have assimilated the necessary platform in dictating the ability of the organization to meet its own strategic objectives (Cunningham & Gerrard, 2000).

Needless to say, its management structure has been greatly sub-branched to ensure that the staff value is maintained at the highest possible level.

Besides, it is important to note that an effective organizational culture requires efficient cooperation between all the systems involved in the management of different aspects in order to ensure a stronger interlink with the external world (Varey, 2006).

Hence, the airlines’ role has perhaps been intertwined in a possible delicate balance where all aspects of staff needs in addition to those of the consumers are carefully articulated for the sake of improvement. It is worth noting that in all instances, consumers must be held much higher than all other factors bearing in mind that it is only through consumers that an organization like Singapore airlines is able to operate.

From this consideration, Singapore Airlines has effectively brought in major observable positive effects for the staff and management as a factor of cultural consideration.

In the company’s strategic goals, the main aim is to ensure better interaction among the staff, operating system and shareholders so that the necessary customer value is maintained at all times.

This has been the overriding force as the company continues to enrich its culture to fit in the new market amidst myriads of challenges.

Goals and structure

According to reports from the company, Singapore Airlines assimilated an effective structure that was based on the general call to enhance higher levels of efficiency in supplying the highly demanded services.

It is from this consideration that the company assimilated a phase-based organizational structure since its formation in order to ease major operations, provide room for assessment, and offer space for change and improvement (Varey, 2006).

Though the structure has attracted criticism from different scholars on its hierarchical outlook, the company insists that the whole system is highly efficient both in terms of design and application.

As the Singapore’s most crucial Airline Company, the government plays a major role in its operations and derivation of different policies (Cunningham & Gerrard, 2000). It is in this regard that its vision is tied to the citizens of Singapore.

The vision and goals of the company are tied to the people’s satisfaction through enhancing their lining standards by promoting the economic competitiveness of the country. From this notion, all the derivative principles and policies are derived in search for excellent services for the best values to achieve the same.

Though the values of the company as presented may seem to negate the very notion of stability previously advocated for by calling for imminent change, its consideration for progressively tracing modern technology, human satisfaction, and economic development actually gives the prior call for service to the people.

Particularly, the vision and values gives special reference to the role of its human resource department by calling for enhanced staff development as a key factor in determining the levels of success that can be realized in the organization.

According to Cunningham and Gerrard (2000), the call for optimization of resource utilization for greater development carves a special notion for human resources managers in an airline company.

It is especially emphatic on the need to ensure that all considerations for innovations and modern technological development are assimilated in the system for faster and even development.

As exemplified by the notion and considerations for the of the mission and the values of the company, it is no doubt that human resource development not only forms the centre for their realization, but in progressively determining their ability to fit in the highly dynamic globe.

It is the view of many analysts that energy globally acts as the main icon for development at the local level and international considerations too (Varey, 2006).

As a result, Human Resources development links the vision of the company, harmonizes the national laws demands, and projects the results to the national and outside community upon which its progress is determined.

Strategy and organizational design

Strategic analysis provides an examination of the strategies that an organization employs to competitively remain competitive in the market. They form the core of the organizations ability to succeed in the market and therefore dictate its internal and external operations in light of the competitive world.

According to Wirtz and Johnston (2003), assimilated strategies form the core determinant of an organizations ability to address its developmental demands in the market.

With the leadership of Singapore Airlines understanding the nature of the Asian region market, it opted for a low cost model that satisfies travelers of all social classes. This has perhaps been the major strategy used to attract its consumers in the region.

Besides, it also seeks to get a stronger grip of the regional and international market by merging with continental airlines and therefore extending its operations to the lucrative United States market through California’s Los Angeles and San Francisco International Airports (Varey, 2006).

Further expansion is considered essential in giving the company an international repute and therefore promoting its competitive advantage.

In order to counter the soaring competition in the country, the company woes more customers by giving special offers to frequent travellers through frequent flier program. The program extends preferential treatment for the customers who frequently travel using the airline and therefore encourage them to stick to the airline to enjoy the benefits.

According to Wirtz, Heracleous and Pangarkar (2008), special flier programs have been effectively applied in over 20% of the global major airlines with great success. By extending special offer to the customers, it becomes easy to win their loyalty.

Loyal customers are generally open and provide an organization with the necessary criticism to improve a system as they are able to associate with it.

It has a well established ground handling strategy. Services like aircraft security, linen laundry, cargo and passenger handling are well provided. In addition, they offer services such as catering, ramp handling and baggage among others. These services are provided by the airline in order to improve its market base.

Organizational behavior in Singapore airlines is highly rated in terms of job rotation. A worker is usually periodically shifted from one work to another but on a similar level (Schneider & Bowen, 1995). For example, a person who is handling tickets may at other times find him/herself handling baggage.

This strategy aims at maximizing flexibility while minimizing layoffs. Equally, this shifting promotes personal as well as career development. It also enables employees to become multi-skilled by enlarging their experience base and improving competency at the same time.

This job rotation system is beneficial due to the fact that it breaks monotony. Eventually, it guarantees efficiency of performance by employees. By spreading the scope of employee activities, it ensures that there is increased motivation since they are assisted to realize how organizational performance is boosted through their work.

In terms of managing services, delivery is usually given from the perspective of the customer. Consequently, an additional attention is offered to customers. Some of the services given have been termed as unwanted and excessive.

Their flights are cheap while there are many affordable hotels near Singapore’s Changi Airport which are booked online.

In addition, there are cheap car rentals within the same vicinity. The flight performance of Singapore airlines has always been rated to be timely with very limited cases of lateness.

Another outstanding feature in Singapore Airlines is their managerial approach. The manager allocates various portions of available tasks with respect to the experience of employees. The management style is also democratic.

Authority is delegated from up going downwards. Moreover, responsibility is given key attention instead of the servant-master relationship as seen in some other companies.

In cases where culture is involved, Singapore Airlines has a tendency towards being sensitive and considerate to various cultures. Customers are given total attention. Their stewardesses are well trained in matters related to effective communication.

The brand of this company is attached to the organizational culture whereby an employee becomes a part of the entire system especially after being in the system for a considerable length of time. This company has a belief system that the products being delivered to the market are goods and therefore should be handled with care

In terms of decision making, Singapore Airlines has an able and experienced management. Delays and cancellation of flights have been highly minimized.

Such a decision can only be reached after collective and thorough consultations have been carried out among the top management or if the prevailing situation such as bad weather does not allow any flights.

Even in such a case, the problems are usually solved promptly to ensure that things return to normalcy. Crisis is thus managed in the most amicable way.

The company hires employees who can withstand high pressure in a dynamic environment. In addition, they are given an additional training and equally advised on how they can improve on service delivery (Yagil, 2002).

Technology

Technology is perhaps one of the greatest developments that have been witnessed in this airline company. Singapore Airlines has been on the forefront in embracing the modern technology (Varey, 2006).

Latest advances in technology have been used it to enhance communication with consumers by obtaining quick feedback, facilitating smooth airline operations as well as assisting in overall design improvement of the airline.

The presence of technology within its environment is critical in ensuring that all the management, manufacturing and communication processes are carried out effectively (Chan, 2000).

Conclusions

Management of organizations in the 21^st century is highly dependent on the ability to analyze the overall operating capacity in addition to understanding their strengths and weaknesses.

In the case study of Singapore Airlines, it is imperative t note that the company has been faced with stiff competition that has seen major players assume strategic approaches in order to remain relevant in the market.

Even so, it has managed to remain quite competitive in the market following its management ability to understand the Asian market in terms of holistic integration of customer quality and incentives.

Besides, the environmental factors such as politics and technology have impacted on its efforts of building positive consumer relationships, devising effective organizational change and overall improvement of performance.

References

Chan, D. (2000). Beyond Singapore Girl: Brand and product/service differentiation strategies in the new millennium. Journal of Management Development, 19(6), 515–542.

Cunningham, J. B. & Gerrard, P. (2000). Characteristics of well-performing organizations in Singapore. Singapore Management Review, 22(1), 35-64.

Huselid, M. A. Jackson S. E. & Schuler, R. S. (1997). Technical and strategic human resource management effectiveness as determinants of firm performance. Academy of Management Journal, 40 (2), 171–188.

Schneider, B. & Bowen, D. (1995). Winning the Service Game. Boston, MA: Harvard Business School Press.

Varey, R. J. (2006). Flying high in a competitive industry: Cost-effective service excellence at Singapore airlines. Australasian Marketing Journal, 14(2), 51.

Wirtz, J., Heracleous, L. & Pangarkar, N. (2008). Managing human resources for service excellence and cost effectiveness at singapore airlines. Managing Service Quality, 18(1), 4-19.

Wirtz, J., & Johnston, R. (2003). Singapore airlines: What it takes to sustain service excellence–a senior management perspective. Managing Service Quality, 13(1), 10-19.

Yagil, D. (2002). The relationship of customer satisfaction and service workers’ perceived control: Examination of three models. International Journal of Service Industry Management 13 (4), 382–398.

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