Singapore Airlines : Singapore Airlines Submitted By: Table of Content : Table of Content Introduction
Overview of Case Study
Relevance to Change Management
Diagnosing the Need
Conceptual Approach & Process Models
Organizational Culture and Change of SIA
Leadership to Change
References Introduction : Introduction Singapore Airlines is one of the best airline service providers in the World
The steady improvement of services, market research, training and development of employees, management strategy, consistent quality maintenance, continuous competitors’ market research are the key factors behind the success of Singapore Airlines
Management always brings new strategies to improve the existing procedure to stay away from the market competitions by providing best quality services to the customers than other competitors.
Management always respects suggestions of all levels employees to improve the existing process
All the employees are rewarded by extra perks and are recognized by management due to their special works at the workplace.
Management never compromises with the culture of the organization increase the profitability of the organization
Organization is facing issues related to internal and external pressures which sometimes force the management to go beyond the way defined by the organization Diagnosing the Need : Diagnosing the Need Conceptual Approach & Process Models
SIA is having a strong management with innovative ideas and strategies.
Management always encourages the low group resources to come up with their ideas.
A rotation policy is there inside SIA management where each manager used to rotate from one place to another and also from one department to another in every five years. Diagnosing the Need : Diagnosing the Need Conceptual Approach & Process Models
Video conferencing, email, telephones etc. basically reduce the rate of travel of business people from one place to another.
SIA started giving offers like Frequent Fly Passenger in which regularly flying passengers used to get points and after certain points they used to get one free fly.
Increased number of competitors
Labor shortage in Singapore has become a major problem for SIA.
Changed Lifestyle of young Singaporeans Diagnosing the Need : Diagnosing the Need Conceptual Approach & Process Models
Singapore Airlines recruit Singaporean girls as airhostess with their charming face and good hospitality ability.
Airhostesses give a warm welcome to the customers by remembering customers’ name and show them their seats.
They serve a welcome drink to them and also provide very good lunch like main courses (vegetable or non-vegetable), delicious desserts, fresh fruits, alcoholic or non-alcoholic drinks etc.
The kids used to get toys, lozenges etc.
Passengers of Singapore Airlines are allowed to do phone calls from the flight.
Passengers get the facility of faxing documents, Dolby digital surround headsets for enjoying songs, individual gets the facility of watching videos, playing video games etc.
The business passengers can access share market information and can do transactions on board.
SIA is also planning to provide the facility of email to the passengers while traveling. Diagnosing the Need : Diagnosing the Need Conceptual Approach & Process Models
Outstanding service on the ground is meant for the services provided by the ground staffs.
SIA management focuses on the ground staffs performances and attitudes with special attention because they are the first representative of the SIA facing customers.
Most of these employees are from different agencies like from SIA’s direct competitors.
SIA management defines standards and provides special trainings to the ground staffs like OSG campaign, baggage handling, punctuality, attitudes, seat arrangement etc
According to OSG management ground staffs are free to take right decisions at right time.
Management also encourages them to go way out of the normal procedure to help passengers.
OSG has its own policies to motivate employees all the time to give their best for the customers. Diagnosing the Need : Diagnosing the Need Conceptual Approach & Process Models
Quality service provided by the Singapore Airlines lead this organization to the leader of financial performance and growth.
Good business strategies, excellent policies and procedures defined by the management were the key success of the organization.
At the beginning of the business this organization has not got any kind of financial help from Singapore government.
By the excellent financial performances the organization’s profit becomes to $615 million by the year of 1997.
By the year of 2000 the profit becomes $1 billion with the total revenue of $5.2 billion.
At the time of recession in Asia in 1998 the organization’s profit was much better than its competitors with the cash in hand of amount $1.5 to $2 billion.
The quality of services and customer satisfaction leads Singapore Airlines to fly over 90 cities in 40 countries.
In terms of employment also this organization reaches at a high number. The total number of people recruited was 24700.
Steady growth, diversified route network and consistent valuable quality services are the pillars behind the financial growth of SIA than major competitors in the market. Diagnosing the Need : Diagnosing the Need Conceptual Approach & Process Models
SIA maintains the consistency in its quality of service by analyzing the complaints launched by the customers and also by seeing the Performance Service Index.
Feedbacks of customers are discussed among management and staffs by means of meetings and discussions.
The index is the indicator of the success rate of the SIA service which is measured by taking 1800 customers’ feedback in 30 factors like quality of food, check in procedure, attitude of staff etc. Diagnosing the Need : Diagnosing the Need Conceptual Approach & Process Models
S-I-A staff action award which is given for good ideas put forward by the employees.
Managing Director’s award is given to the front line employees for their very good excellent performance.
Health of wealth award is of amount $3000 is given to look after the health of employees.
Annually deputy director’s award is given to the employees for their exceptionally well decisions taken at the time of critical situations and better customer services.
OSG feedback question answer sessions are carried out to solve the problems launched by the passengers. First 20 successful employees used to get $1000 from SIA for correct answers. Diagnosing the Need : Diagnosing the Need Change Processes
Necessary to meet the changing needs and requirements of the customers.
Prepare some dynamic strategy for increasing the satisfaction level of the employees.
The Singapore Airlines build and maintain trust with the customers.
The continuous improvement process should be followed to increase the quality standards.
Increase the efficiency of the operations to improve the satisfaction level of the customers. People Issues : People Issues Organizational Culture and Change
Management of SIA gives greater importance to maintain a good and healthy work culture inside the organization.
They believe Singapore’s culture is a mixed culture of western and eastern.
Due to western touch Singaporean girls are not lack in speaking fluent English.
Also due to eastern culture they are shy and have good hospitality capability.
This is the reason management always recruit Singaporean people inside the organization.
Also the culture has an effect on China that in turn adds values in terms of hospitality and attitude.
Management believes end of the day quality of services to the passenger matters for the organizational growth.
This is the reason SIA do not believe in acquiring other airlines.
But in the year of 1999 SIA acquired 49 percent of Virgin airlines. Due to the bad effect of cross culture management don’t believe in acquiring other organization which may degrade the quality of services to the customers. People Issues : People Issues Personal Change
SIA is very much selective in recruiting people from the market. For ground staff recruitment management defined certain procedures which help to recruit right people.
For cabin crew staff recruitment candidates should be below 25 years age and should have positive attitude, good communication skills and right postures.
Personality Profile System (PPS) is carried out by the recruitment team to remove uncertainty.
Trainings are generally related to supervisory skills development, product related training, customer handling, positive attitude building etc.
In the year of 1999 SIA has developed $80 million training center in Singapore to accommodate 240 trainees at a time.
All the cabin crew staff is bound to attain four months training which is much better than other competitors.
New employees are used to attain orientation programs from Singapore as well as from different regional offices of SIA.
Different campaigns and trainings programs include role playing, practical solution practice programs etc. People Issues : People Issues Leadership to Change
Management always motivates ground staffs and cabin crew members not to depend on the senior staffs.
Various leadership quality development training programs are organized by the management to build leadership quality among the employees.
Management of SIA thinks existing employees need to take initiatives to motivate subordinates to serve passengers better with excellent quality services. Conclusion : Conclusion Singapore Airlines is one of the best airlines in the world. Solid management base and strategic planning are the key success behind consistent growth of the airlines.
SIA has already built a strong position in the airlines business but still it has to maintain the existing position along with the continuous improvement of the processes. References : References www.ronkaufman.com/articles/article.sia.html (Web source: “How Does Singapore Airlines Fly so High?”)
“Fierce Battle for Hearts and Wallets,” Financial Times, April 19, 1993.