1. Organization purpose
(a) Describe briefly the organization, its business, and purpose
The Singapore airline has started as part of Malaysian airline. The Malaysian airline has commenced its services between Kuala Lumpur, Singapore, Penang in 1947. However, in 1972, these two entities have separated from each other. Since then, the Singapore Airline has grown its business and reaches the top spot of the airline industry. In 2007, the airline has been chosen 17th most admired companies in Fortunes magazines list (Appannaiah and Reddy, 2010).
Since the separation from the Malaysian airline, the management body of the airline has decided to adopt the leadership strategies of cost. The director of the company is responsible for a high level of innovation as well as the top level of service to the people around the world. The management body of the airline has made it possible to take the airline to the top of the list for their innovative leadership. The management body of the airline is now able to create the airline as a brand (Campling, 2008). The management body of the airline has taken the few steps for improving the services of the airline such as the organizational changes, competitive advantage, and organizational design. The higher authority of the airline is engaged to the development of the design of the service rigorously. The technological advancement of the airline has put the front of the row in the list.
Their main purpose and mission are to provide the best possible service to the people around the world. Their premium services can be available within the appropriate range of the price. Their main motto of the service is to satisfy the need of the customer around the globe. Overall, their strategic business model has enabled the management body for the understanding the demand of the customer.
2. Organization structure
(a) what form of organization structure has SIA adopted?
The management body of the Singapore airline has adopted the premium level of an organizational structure such as the constant changes in the operation of the organizational function, expand route network, safety, technological advancement, the design of the organizational operation and so on. Apart from that, the organizational structure holds few elements such as the complexity of the organization, formation of the structure, centralization of structure and so on. These types of organizational structures have helped the higher authority for making the good relationship with the customer all around the globe (Czinkota, Ronkainen and Moffett, 2011).
(b) Explain 2 advantages and 2 disadvantages of this structure for SIA
? Formation of the organizational structure offers few benefits to the employee and the other staffs of the airline. The authority of the airline has never imposed any hard and fast rule over the employees of the airlines. This organizational structure refers to the freedom of the employees of the organization. The employees of the organization feel free to work at the airline.
? Another important benefit for the employees of the organization is the flexible timing for the training. The flexible training refers the comfort zone to the employees for the organization. This organizational structure allows the employees to learn new things in the course of the training process (Dlabay and Scott, 2011).
There are the few disadvantages of the structural design of the organization. The centralization of the structure possesses the control of the government of Singapore. Here the most disadvantaged of the organization structure is the centralization of the operation. Sometimes, the authority of the Singapore airline and the official of the aviation ministry of Singapore engage with the controversy over the operation strategy and the fixation of the price for the operation. This leads to the dissatisfaction of the customer over the issue (Human, 2008).
Another important disadvantage of the organization structure is the recently increased price of fuel. The management body of the Singapore airline now finding the new avenue to evade the situation. In a recent report, it is seen that the Singapore Airline has experienced $138 million which is considered as the largest in the history of Singapore Airline. Apart from that, the low-cost carrier has replaced the spot of the big carrier. The carriers of the USA and the other regional airline have strengthened their position in the airline industry. In addition, the political and the uncertainty of economic condition have found the big mistake of the organizational structure of the airline.
3a. What are the two reasons why a transformation of SIA is long Overdue?
The Singapore airlines mentioned that it would take some radical measures to have a transformation to improve the holistic condition of the airlines. There is some reason due to which the Singapore Airlines transformation is a long overdue. One of the reason is their overall business has incurred a notable amount of loss. The total profit of the Singapore airlines decreased by 20 percent per year which is a huge loss by the standards of the market. It incurred a loss of almost 99 million dollar loss which hindered the airline’s action plan of transformation. The loss is related to the global financial crisis which has a huge effect on the aviation industry with the decrease in the amount of the consumers in the market (Hussey, 2012).
Another reason for which the transformation is overdue is the changing the pattern of the market. The market is changing fast and it has become price sensitive with a steep competition curve form the other Airlines. It is very difficult to make an adaptation to this changing market by transforming in a fast manner. The capacity of the staff should be building in a proper way so that that the transformation can be made properly. The management should be flexible enough to perform the transformation in a proper way. This is the main reason the transformation of the Singapore Airlines is a long overdue (Jeyarathnam, 2008).
3b. what specific lesson in organizational structure can be learned from the Qantas transformation? In what way can it help SIA?
Qantas Airlines has made a good amount of transformation in the recent years to make holistic growth for the airlines. Some of the specific measures those are taken by the management of the Qantas Airways have they divided the International and the domestic operations. This was done so that Accountability would increase in providing the optimum service to the clients. The management of Qantas set specific targets to be achieved in a fixed timeline. Another important transformation which was done by the Qantas Airways is the introduction of the nonstop service from specific destinations which attracts more amounts of customers (Peng, 2017). These two transformations should be learned by the Singapore Airlines and they should totally incorporate these changes in their transformation so that they can have a holistic growth a stay in the competition.
If SIA divides the domestic and international operation then optimized service can be given to clients who will increase their business. The introduction of the nonstop flights will help SIA to have better coordination and service level of the company will enhance and it will affect the business of the SIA in a positive way. These changes should be incorporated in the management structured of the organization so that proper teams can be building for domestic and international operations.
4. Is SIA facing a structured or unstructured problem?
The structured issue is the issue which is related to the organization hierarchy of an organization and the unstructured problem is the problem which is created due to the economic problem human resource or technological problem for any organization. Mainly the Singapore Airlines is facing unstructured problems. The company is not able to compete against its main rivals in the market and sue to this they are facing a huge amount of economic loss which is one of the unstructured problems. The unstructured problems are the problems which are very complex and have relation with lots of parameters. The technical problem is also considered under the unstructured problems. The company is lagging to provide low-cost carriers to its clients which causing a huge amount of loss to its business (Chambers, 2011).
5. Give another example of an unstructured problem in SIA’s workplace.
The Singapore airlines are facing unstructured problems like managing the new environmental rules which are implemented in the country. The aviation industry generates huge of amount of waste and the new policy of the government is very much strict about waste generation. This is one of the unstructured problems faced by SIA in the workplace.
6. What kind of decision-making style do you think be least appropriate for the situation published in the article?
The decision making is very important for any organization it helps in the implementation of the short-term and the long-term action plans for the organization. IN the case of Singapore Airlines according to the article, it is very much important t to analyze the situation and make appropriate decision of transformation which will help the organization to make holistic development. There is mainly four decision making process one which is the least appropriate in this context is the directive decision-making process.
The directive decision-making process mainly comprises of an autocratic decision which is mainly taken by the CEO or the managing director of the company relying on the experience of him. Most of the time it is seen that this kind of decisions has a short-term positive effect and long-term negative effects. The proper decision should be taken by a board after analyzing all the data and discuss the situation with the top managers of the company (Campling, 2008). Innovative thinking should be done so that the diversification in the business and can be done and proper strategies can be taken so that Singapore Airlines can balance their loss and slowly increase their profit amount. According to the article, they are facing a good amount of loss due to that transformation of business is not possible. Conceptual and analytical decision making should be done so that the Singapore Airlines can Increase the amount of revenue from the market.
7. Application of first five steps in the rational decision-making process with elaboration for each step in the context of SIA’s problem
Ans: Effective decision-making process helps the organization to pressure their strategies properly. Recently, Singapore Airlines has faced severe decision-making problems. Singapore Airlines (SIA) has found it difficult to cop up with the price rise of fuel cost. They are witnessing a rise of 40% of their overall production cost which has compelled them to minimize their fuel productivity. Moreover, the emission regulation of Singapore government has also put SIA under immense pressure to take decisions on whether they would increase the market price or retain the price same. In addition, there is an alarming need for the SIA to control their aviation waste in order to increase the lifespan of SIA. Five steps can be recommended to develop the decision-making process of SIA.
Verification and identification of the problem
SIA also needs to locate the root of the problem. Here the problem basically lies in the rise of fuel cost and concern on waste reduction. The verification of the problem would help SIA to recognize the process of coming up the rise of the fuel cost without hammering the organizational profitability. The effectivenessin the decision-making process has helped Singapore Airlines to witness asatisfying revenue of $14,869 in the last financial year (Appannaiah and Reddy, 2010).
Setting success standard and failure potential
The SIA needs to be concerned about their potential area of success and failure. They must set a threshold to measure their failure of potential decision making. The improvement of the jet fuel productivity is one of the key concerns for SIA. However, for the last three months, they have saved over 245 tons of fuel on around 600 national and international flights. However, they require more analysis to assess the solution of the issues. The assessment would help to bring out the strength and weakness of the organization which can be helpful for their further decision-making process.
Determination of potential results
The analysis of the consequences of each solution of the issues would be helpful for SIA to develop their existing capabilities. They must choose the solution after analyzing the potential of the results. It would make them increase their value asset share to $11.07.
Acceptance of the best solution
The analysis reveals several solutions. However, SIA needs toaccept the solution that is less harmful in terms of its consequences. It can be helpful SIA to develop their dividend share by 20%.
Quick Implementation of problem
Once, the solution of the issuer is selected the implementation process must be quick. It would make the decision of SIA more rational and time-saving. The quick implementation of the rational decision would be helpful for SIA to reduce their expenditure up to $500 per year.
8. Identification of two leadership qualities of SIA CEO and explanation of their importance
Ans: Leaders define the operational efficiency of the organization and its capability to manage the organizational problems. The CEO of Singapore airlines is GohChoonPhong is a well capable leader to turn the organization into a positive way. It was found that in the 2015-16 financial year the profit margin of SIA was decreased to $622.8 billion from $681.2 billion which is a significant loss for SIA and GohChoonPhong found it necessary to implement creativity in the leadership quality as it would help them to find new financial solutions and find innovative ways to resolve the implement the solutions. Moreover, he looked for multi-skilled leaders who can perform effectively for all the necessary tasks.
First Leadership quality
The leaders must be creative in order to cop up the problems identified in SIA.
The organizations must have the capability to identify new and innovative solutions to every identified problem. Structured problem, waste reduction problem and problems regarding the rising of the fuel price are three key problems for SIA. This can be mitigated with creative leadership quality (Burns, 2012).
Second leadership quality
The leaders must be must be multi-skilled in order to resolve the organizational problems. The CEO of SIA GohChoonPhong must apply multi-skilled leaders to mitigate the issues.
Structural problems, fuel cost rise problems, and waste reduction problems are necessary issues for SIA that area needed to be resolved immediately. Thus, the organization needs multi-skilled leaders who can resolve these problems successfully in short span of time.