Singapore
Airlines Case Study
(student
paper)

Singapore
Airlines was created in 1972 following a separation from Malaysian Airlines. In
the wake of reorganization, Singapore Airlines undertook aggressive growth,
investing and trading to maximize profitability and expand market share. Through
this change, a new company philosophy emerged, “Success or failure is largely
dictated by the quality of service it provides†(Wyckoff, 1989). By reinventing
the company infrastructure and introducing new initiatives focused on
excellence in customer service, Singapore Airlines became a global leader in
the service industry, elevating existing standards among competitors.
Evaluation of Workforce Management Program
The strategy widely utilized by
Singapore Airlines to ensure differentiation in an increasingly competitive
market was its attention to in-flight service. “Good flight service [was]
important in its own right and is a reflection of attention to detail
throughout the airline†(Wyckoff, 1989). This statement perpetuated the belief
that excellence in service was directly tied to the careful selection and
individual performance of in-flight crews charged with the responsibility of
fulfilling the needs of individual passengers and exuding the levels of service
demanded by the organization. Applicants destined to work as flight stewards
were drawn from a very young population, typically spanning the ages of 18-25
years of age with high school equivalency against the English system of
education. Selection of applications was competitive largely due to the degree
of skill, poise, and experience required of its candidates. These policies led
to the on-boarding of a highly skilled and youthful workforce with positive
attitudes and a willingness to be trained. Critique of this approach revealed several
disadvantages.The most significant being the potential for greater turnover
when hiring a younger population as opposed to an older, more experienced crew.
Experience alone would play some role in the development of new employees, as
greater experience would bring greater poise and confidence. However, in light
of the predominant population Singapore Airlines catered to, a younger
in-flight crew would remedy the awkwardness likely to be encountered by older
clients being served by older crew members. In addition, a younger crew would
likely be more accepting of new procedures and less cynical of the requirements
of employment.
In light of the young demographic most
desired in this role, recruitment, training and “conversion†processes were
both stringent and comprehensive. All aspects of in-flight service, including
training related to terminology, amenities and food preparation were provided
in great detail, as were training for emergency preparedness and response to
every potential scenario encountered in the air and on the ground. Formalized
on-boarding, training and continued development were the hallmarks of the
comprehensive workforce program. Even well into a crew member’s employment,
on-going training and cyclical evaluation provided a mechanism for employees to
be aware of individual performance and gain exposure to methods of continuous
improvement. With an on-going plan of evaluation, communication, and development,
the workforce was well-positioned for high levels of performance and quality
improvements.
Though it would seem that Singapore
Airlines’ work management program suited the organization well, it greatly
narrowed the pool of applicants and kept many, well-qualified and experienced
candidates from positions that would create diversity among the largely
homogeneous workforce and place the organization in a better position to serve
populations whose ethnic origins were not of Asian descent. If the organization
aims to be the leader in an increasingly global marketplace, the workforce must
mirror the diverse needs and perceptions of the greater population.

Advertising
Campaign

Singapore Airlines is known
in the airline industry for its quality of service. This emphasis on customer
service and customer satisfaction is largely reflective of the Asian culture
for which the company embodies. Attention to detail, impeccable presentation,
and care for others are traits synonymous with countries of Asian heritage. Similarly,
Asian countries revere conservatism, organization and hierarchy (Allik, n.d.) so,
it would follow that young Asian individuals demonstrate the same gracious,
caring behaviors to others. The expectation of “gentle, courteous service†is
consistent with these norms and with the approaches taken by the organization.
So much are these standards and stereotypes linked to Asian culture and the
epitome of service, that the symbol applied to the airline is that of a young
Asian woman. This image is resoundingly more beguiling and traditional,
recognized by nearly 50% of consumers over typical marketing imparted by
competitors, with a marginal recognition of 9.6%. In light of the positive
impact and recognition of the existing marketing campaign, it was considered
advisable to retain the current marketing strategy.
Systems for Measuring
Service Quality
Singapore Airlines has two primary
components involved in measuring service quality. The first is a system to
measure customer complaints and compliments for every 10,000 passengers. The
second measurement is a comparative rating of airline services prepared by the
International Research Associates (INRA).
The first component, customers’
complaints and compliments, stayed relatively the same despite rapid
organizational expansion. This type of analysis has shown a generally high
satisfaction level, but could be skewed due to the vast areas the complaints
and compliments could cover; from ticket sales and baggage areas to in-flight
crews. To address this concern the complaints were split between the areas.
However, to get an accurate barometer of customer satisfaction, it was
recommended that the airline conduct routine surveys of customers. Often,
customers submitting comments fell into one of two categories; those having complaints
or those having compliments.
The second component to gauge customer
satisfaction involved the INRA surveys. The airline executives paid particular
attention to these scores as they indicated levels of satisfaction among the
general consumer population and identified areas requiring continuous
improvement. In 1973 Singapore Airlines scored 68, in 1974 the company scored
74 and in 1979 they scored 78. The scores of 39 other airlines demonstrated
that two other competitors, Cathy Pacific and Thai International, were
improving rapidly. This provided one indicator of competitive advantage. In
order for Singapore Airlines to stay ahead of their competitors they would need
to evaluate their position against industry leaders and determine if changes
would be needed to stay competitive, particularly with respect to customer
service and customer satisfaction (Wyckoff, 1989).
Plan to Introduce Slot Machines
Singapore Airlines has responded to many changes in
order to differentiate itself within an increasingly competitive market place.
One responsive action was to remove sleepers, replacing them with a business
class section. Reactions from consumers were less than favorable.The move
strayed from what consumers came to expect of elite levels of customer service,
which were in large part, due to the attention paid to the personal needs of
its elite customers. Although intended to be innovative and distinctive, the
inclusion of slot machines on transatlantic flights was another idea met with
considerable consumer dissatisfaction.While potentially generating a new stream
of revenue, the idea only worked to incite passengers with a new category of
charges. In addition to generating cost for the consumer, the machines took
valuable space away from seats and posed problems in light of weight
restrictions (Time, 1981). These changes only compounded issues and introduced
new problems such as the potential for in-flight injury, rather than improving
in-flight services. While there was some opportunity for revenue, initially,
the gains would last for a season and werenot expected to extend out into the
long-term.
Conclusion
The Singapore Airlines Case Study highlights both
effective as well as ineffective management approaches within the company. The
subsequent analysis and evaluation of company operations and strategies offer a
compelling glimpse of organizational design and leadership amid change, as well
as provide a platform for future discussions of organizational development and
change management. Group evaluation of organizational design, organizational decision-making,
and organizational process at Singapore Airlines yielded some recommendations
for new approaches to address complaints, become more mainstream in an
increasingly diverse market space, and become more innovative without losing
sight of the customer service focus that has made Singapore Airlines so
successful.