Organizational Report Singapore Airlines Limited

Question: Discuss about the Organizational Report Singapore Airlines Limited. Answer: Introduction The corporate environment continues to grow in terms of competitiveness as days go by. There is an inevitable need for organizations to put in place the right and effective strategies which would ensure consistency in quality delivery and hence the overall organizational performance. Some basic management strategies which have a direct link with organizational performance include; the nature and structure of leadership, the communication strategies as well as the motivational approaches. With reference to the aspects above, this report analyses Singapore Airlines (SIA) by outlining its leadership structure, communication as well as motivational strategies. The objective of this report is highlight how effective these approaches have been in placing the organization in its current position in terms of corporate. Through review of literature and company reports, the report shall also examine if these leadership approaches have been effective in enhancing good worker involvement as well as efficient consumer relations. The report shall then be summarized with an outline of some of the successful strategies used by Singapore Airlines Limited which could be borrowed by other managers in a bid to enhance organizational performance (Andersen, 2001). Singapore Airlines Limited Singapore Airlines whose history began in 1947 is one of the air transport herbs in Singapore. Despite being owned by the government, the management of SIA has been solely delinked from the government operations and the responsibilities given to a board of directors instituted by the Ministry of finance. The leadership of the company is therefore spearheaded by the ownership of both the Singapore government as well as Temasek Holdings Company. Consequently, the SIA is managed and controlled through a dual leadership structure. SIA comprises 36 subsidiaries each of which have the responsibility to accomplish the companys mission, vision and goals (Binggeli and Pompeo, 2002). The companys vision is to remain an excellent organization which positively impacts the lives of the people it interacts with. The organizations mission is to ensure consistency in offering high quality services to the clients in a bid to make maximum returns which not only benefits the companys stakeholders but t he employees as well. One of the subsidiaries is the SIA Engineering Company which deals with repair and maintenance as well as overhaul procedures.. The other subsidiary is the Singapore Airlines Cargo which deals with freight and movement of passenger cargo. The Silkair subsidiary handles regional flights destined for secondary cities while the Tigerair and Scoot are the subsequent subsidiaries which deal with low cost flights both within and outside the country. Leadership Style The successful endeavors of the organization can be attributed to the stable leadership structures installed by the various stakeholders (Anita, 2010). Each of these subsidiaries is led by a manager who is helped by the various departmental heads who in turn handle the lower level of the human resource hierarchy. The system of leadership is characterized by a diversified approach where duties are shared despite the existence of specialization (Braisby and Gellatly, 2012). Despite the fact that decision making majorly involves the board which is the highest level of authority within the organization, Singapore Airlines has installed effective strategies of communication which ensure that the input of at least all the employees is adequately considering during the crucial process of decision making. The style of leadership is therefore keen on enhancing a conducive environment for free and effective communication within the various phases of the organization (Campbell, 2002). The effectiveness of the leadership style at Singapore Airlines can be outlined by the nature in which the company has consistently outsmarted its competitors. Despite the emergence of several other competitors offering the same services at relatively lower costs, SIA has maintained its core strategies in maintaining quality delivery and effective customer satisfaction. The company management led by the CEO has ensured that each of the 36 subsidiaries operate alongside the organizations key strategies which are basically aimed at making profits while offering the best services to clients (Costa, Harned and Lundquist, 2002). Through the integration of differentiation and cost leadership, the Singapore Airlines management has continued to lay emphasis on innovation, training and efficiency in operation. The organization executes frequent training of the staff and workers in various departments. This strategy is aimed at enhancing the employees skills and competitiveness in their areas of responsibility. With an informed workforce, the leadership style at SIA has successful ensured organizational success by empowering its human resource fraternity. In addition to employee empowerment through a dual leadership strategy, the Singapore Airlines continues to woe its clientele through the incorporation of cost effective approaches. The fact that each subsidiary is led by its own manager adequately diversifies roles and reduces the cost of executing the companys strategic plans especially if the leadership was centralized and dependent on a single management approach. In addition, the leadership style within the organization upholds the use of information technology in enhancing the quality of operations. For instance, through IT, the company has developed a user friendly website where customers can easily access and check the flight schedules (Daft and Armstrong, 2009). The platform is also essential as it enables the company to speedily pass important information on flight changes, changes in prices and introduction of new packages just to mention but few. In a nut shell, the SIA leadership style is made up of a rigorous service de sign which keeps each member of staff on toes not only to deliver but also ensure that the quality of this delivery is outstanding. Each of these approaches have remained effective in enhancing the companys competitive edge despite the demanding nature of the clients in terms of the quality of service delivery. In addition, the SIA leadership style is keen on staff empowerment, training and motivation. This approach goes a long way in ensuring that the members of staff are developed holistically (Dattilio and Freeman, 2007). With proper employee engagement and efficient customer satisfaction, the organizational performance of Singapore Airlines has improved and continues to improve as days go by. The table below shows the trends in performance improvement exhibited by SIA within a span of three years Year Positive Customer Feedback Statistics Change in Profitability 2014 60% 70% 2015 75% 80% 2016 85% 90% From the table, we can deduce that the change in customer feedbacks has a direct influence on the companys profitability. This therefore indicates that the strategies installed by the leadership play a crucial role in triggering positive customer feedbacks and a subsequent increase in returns on investment due to stable market (Glisson, 2008). The trend also indicates an annual improvement in profitability as registered by the company which reveals that the leadership style has been effective in enhancing effective organizational performance. The companys leadership strategy is summarized below. Motivation and Reward Aspects at Singapore Airlines According to the equity theory of motivation, the level of motivation accorded an employee is directly equal to the extent to which the employee satisfies the companys strategies and goals. This theory stipulates that when an employee is treated in a manner that enhances their confidence and sense of belonging, their engagement is greatly improved which in turn culminates in effective organizational performance (Collins and Wood, 2009). The SIA has put in place various strategies which all play a crucial role in enhancing the fair treatment of the employees. For instance, the company continuously carries out a facelift of the Singapore Girl, which is a crucial organ of the human resource fraternity especially with regards to flight related issues (Doganis, 2006). According to Herzberg's motivation-hygiene theory also known as the two factors or dual factor theory, there are specific aspects at the work place which enhance job satisfaction. The theory further stipulates that there are those factors which cause job dissatisfaction. An appropriate leadership structure and dissemination of responsibilities is one of the key strengths at SIA. The dual nature of leadership enhances sharing of roles which in turn causes job satisfaction. Additionally, the organization achieves job satisfaction through staff empowering. In a bid to trigger a positive response from the workers, the organization is keen on enhancing staff training and exposure through various exhibitions and conference (Dattilio Freeman, 2007). This strategy is not only aimed at uplifting their level of motivation but also ensuing that each individual in their area of responsibility remain competent. (Anita, 2010). The employees who indicate improvement in performance gauged by the am ount of returns and the nature of client feedbacks are then subjected to a reward scheme (Dobbin, 2012). The nature of reward is always such that it comes in a measure equal to the standards set by the company. For instance, the individuals who achieve certain stipulated targets in their lines of duty are rewarded based on this achievement. These strategies have not only contributed in enhancing motivational levels at SIA but also ensure adequate job satisfaction. According to the needs theory, the motivational strategies by a company can be designed such that the reward given to an individual remains solely dependent on the extent to which the worker caters for the companys needs (Heracles, 2009). This implies that when the employees adequately execute their responsibilities, their motivational needs are accorded in good measure (Daft Armstrong, 2009). As highlighted by Maslow, individuals have various needs which include physiological or material needs, need for safety, love, and esteem as well as the desire to achieve self-actualization. The Singapore Airlines have remained active when it comes to creating a conducive environment for its employees which ensures that they feel loved and safe at the place of work. This is not only achieved through an open communication system but through recognized company procedures. In these procedures, the consistent performers are recognized during specially organized company occasions. These reward stra tegies also enhance the workers esteem in addition to giving them a reason to offer their best in responsibilities due to the desire for this very recognition and hence the associated rewards. The organization has effectively aligned its reward aspects with the organizational targets. This idea initiates the desire for self-actualization in the employees which in this case is more or less linked to the extent to which the workers achieve the set targets. Reward and motivation at SIA is therefore based largely on the extent to which the companys objectives are achieved by the employees. The job characteristics model highlights the fact that individual responsibilities ought to be treated as the main source of motivation. This occurs when the job environment is made attractive through the introduction of efficient but non-confining policies. The theory further outlines that the nature of a job has a special way of influencing worker motivation. At SIA, the management has remained keen on ensuring that the employees enjoy their work and hence give their best. The company operates alongside the guidance of accommodative work policies. These approaches do not only ensure effectiveness in service delivery within the human resource but also establishes an organizational culture in which the workers are confident and free enough to exploit their talents (Lewin, 2006). It is therefore a crucial responsibility for an organizations management to ensure that the nature of the job environment enhances maximum worker engagement before other motivational strategies are installed. The big five personality traits offer a perfect model which managers can use to learn the different personalities of the employees and hence come up with work policies which effectively complement these personalities. Singapore Airlines believes emphasizes on the motivation of employees as a key strategy in ensuring that they are open to experience which is one of the traits in the five factor model. In line with this, the motivational schemes used by the company spread across all the subsidiaries. The employees are accorded an equal opportunity for recognition and reward. With the knowledge that each is eligible for rewards, each member of the human resource department operates self-discipline and a dutiful desire for excellence. This amounts to conscientiousness, one of the big five traits. This collectively enhances the general performance of the organization. To enhance the effectiveness of the recognition schemes, they are constantly revised and the necessary adjustments made. T he strategy encourages extraversion among the employees as the motivation aspects tend to increase their assertiveness and energy at work (Hinings, 2013). The good salaries have been fundamental in maintaining the composition of the human resource. Most of the employees within the current team have served in the organization for long periods of time. This could be attributed to the appropriate job environment established by the companys management which enhances agreeableness and cooperativeness. An effective environment created by an organization does not only retain the current workforce but also reduces neuroticism and serves a part in attracting new individuals in future. In a nut shell, the motivational strategies at SIA have remained effective due to the fact that they are holistic. This implies that the rewards schemes do not only target the workers but also the managers (Ostroff, 1993). The table below shows the correlation between worker motivation and profit outcomes for a span of three years. Year Percentage Level of Worker Motivation Change in Profitability 2014 60% 70% 2015 75% 80% 2016 85% 90% From the table, we can deduce a direction correlation between the level of worker motivation and the organizational performance. It therefore implies that a high level of motivation increases the workers engagement which in turn enhances the organizational performance. This can be reflected by the reported profit margins. The information can also be reflected using the pie chart below. Communication Strategy at Singapore Airlines Limited Open and Result Oriented Communication The communication strategy in Singapore Airlines is not only open but also result driven. With the aid of IT, the company has developed a complex infrastructure which aids in the movement information which is effectively packaged and transmitted with clarity. As one of its basic approaches to communication, SIA has developed an interactive website (Hickson, 2015). Through the user friendly platform, crucial information can be passed to the workers and clients in a simple and accessible manner. To enhance the quality of information passed, the messages are scrutinized by the organizations communication experts. This does not only enhance the message richness but also ensure that the basic objective to obtain a result from the communicaion is perfectly achieved. Formal and informal strategies The communication system at SIA involves a combination of both formal and informal approaches. Information is passed from a central source and passed through multi channels with the intention of reaching as many people as possible. For instance the website is mainly used for formal transmission of crucial information to workers and clients. The strategy here involves the establishment of small online formal groups to aid in the process of information transmission. Each subsidiary has its own formal group. This ensures that each individual receives only the information relevant to their area of service. On the other hand, the organization uses other informal tools like then social media which may include facebook pages and twitter handles. Both of these tools are used in communication depending on the nature of the information. This implies that formal information can be passed through the website while relatively informal ones are transmitted through the social media platforms (Langh am and Rezania, 2006). Mode of communication: Involves both oral and written messages By reviewing the history of the company, it is evident that the communication styles have transformed over the past years. The SIA management continues to work over time by bringing in newer strategies aimed at improving communication. In the past, the mode of communication mainly involved verbal and written approaches for instance using notice boards, circulars and related communication articles (Ostroff, 2009). However, with the emergence of technology, the organization mainly uses the internet and other online platforms like the websites and social media. In these avenues the mode of communication mainly involves writing. For instance, the information on flight schedules, changes in packages and any information intended for the employees and clients is always posted in written form on the companys website. The method of communication largely involves both vertical and horizontal transmission. This trend indicates the transformation which has taken place in the communication strate gies used at SIA. Channel Richness Strategies The Singapore Airlines mainly uses IT based approaches in communication. This strategy can be evaluated by reviewing the extent to which it has proved effective in enhancing organizational performance. To begin with, the strategy is cost effective since it only requires information to be placed in an accessible platform where the recipients can visit and retrieve. This replaces the cumbersome approach of having to send information to each members of the organization. Secondly, IT based communication strategies are time saving (Posey, 2012). For instance due to the fact that the website is user friendly, workers and clients can easily access the platform and gain the necessary updates. It therefore takes a shorter time for the intended message to reach the audience compared to other methods of communication. In addition, the communication strategies are efficient enough in ensuring that all the members of the organization are reached (Trevisani, 2016). This is because the SIA has a da tabase of its employees and clients stored in the online platform. This ensures that the message passed reaches as many people as possible. The organization also uses other back up methods which include follow up emails, messages, notices live speeches as well as formal reports. These strategies adequately support the companys business needs in addition to enhancing good consumer relations which culminates in effective organizational performance. Conclusion The Singapore Airlines Limited remains one of the most recognized corporate organizations in Singapore and the surrounding regions. This success could be attributed to a number of factors and strategies implemented by the company. The companys leadership style is adept at enhancing the organizational goals. The dual structure and cost leadership has proved fundamental in enhancing the companys level of operation. The motivational and reward strategies have played a crucial role in improving employee engagement, commitment and their general output. Furthermore, the communication strategies implemented within the organization have remained effective in ensuring free flow of information within the organization. Each of these approaches has been crucial in enhancing the performance of the organization which could be confirmed by the high profit margins achieved by the company especially in recent years. References Andersen T.J. 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