Managing human resources for cost effective service excellence

Managing human resources for cost effective service excellence

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Managing human resources for cost-effective and service excellence

Introduction

For many years, Singapore Airlines has managed to deliver excellent services to its customers. Despite the stiff competition from the aviation industry, it manages to beat its competitors and emerges to be the airline that is most awarded on planet. Example of these awards is the Skytrax’s Airline of the Year award winning it thrice for the past thirty years (Heracleous, Wirtz & Pangarkar, 2009). SIA has effectively managed its costs and also maintained it at lower levels as compared to most Europe and US carriers which are low cost. Any business services have strategies implemented and put in place to aid in efficient running of the company. These strategies may include human resource, operations and marketing. SIA has adopted these business level strategies especially focusing on human resources being the key aspect of the business hence building the company strategy. For SIA to deliver its services efficiently, it has five elements of human resources that aid in achieving an excellent business strategy services that are rendered by maintaining cost effectively. Below are the discussed five elements that closely work together to bring about a successful human resource strategy of Singapore Airlines (Heracleous, Wirtz & Pangarkar, 2009).

Specialness of SIA’s five elements of its successful human resource practices

The fives elements of human resources SIA are uniquely special in their own way. They are mutually interrelated in such a way that they support and work together to yield the required and admired results. These elements are the strongholds of a successful business strategy (Le, 2009). They play a key role in implementing a cost-effective level of business hence maintain low costs compared to those of budget lines. They have enabled SIA to recruit the most efficient staff through recruitment, selection, training, motivation, and retention of its employees.

They have brought about service excellence and innovation to the airline business. The five elements work hand in hand in order to come up with the best employees and the top management team that are essential. This team provides excellent services that are highly valued by customers as well as they are highly innovative in implementing a well organized business strategy. The top management is able to deliver leadership roles to other subordinates who are highly required in achieving the best and valued services as well as being role models as they carry out their day to day duties (Miller & McBrewster, 2009).

Effectiveness of each element’s contribution towards SIA’s leadership in service excellence and cost effective are explained in details below;

Selection and recruitment process

This selection helps senior managers to select and recruit highly competent and efficient cabin crew members. The crew selected is supposed to have attributes such as being humble, empathizing with passengers, cheerful, friendly and well mannered. In order to come up with the best crew members, they are subjected to certain tests such English fluency testing competency of the language. Other tests taken are psychometric tests and water tests. The crews’ academic qualifications, physical attributes ages are determined in this element (Jochen Wirtz, Loizos, &Pangarkar, 2008). Core values and competencies of the cabin crew required by the SIA are determined by the one on one interview with the senior management. Earlier results are confirmed by the psychometric test. It also ensures that SIA’s selection rate ranges between 3%-4% of the applicants. The applicants should have desired attributes.

Extensive investment in training and retraining

This element aids the cabin crew to gain confidence and maintain the image of authority in the minds of passengers by showing the warmth and friendliness. It also enables the crew members to provide excellent services hence promoting cost effectiveness. The crew undergoes two types of training including general management-type training and functional training. Besides safety and functional issues, the selected crew is taught how to converse with passengers and fellow members, beauty care, how to appreciate and value wine and lastly the gourmet food. The crew staff gains knowledge of change development in the business and learns how to deliver the new and recent services emerging regularly through continuous training and retraining (Wyckoff, 1986).

Building high performance service delivery teams

This element has promoted a sense of belonging to the members of the crew. The team consists of 13 members which they spent many flights together. They spent much time together which creates a sense of belonging. The cabin crew has talented employees that involves themselves in activities such performance arts, sports circles and gourmet that raise funds for charity hence showing empathy to others. This brings about excellent service delivery (Wyckoff, 1986).

Empowerment of frontline staff to control quality

This enables the employees to determine their job boundaries as frontline employees. They should feel in control and empowered to deliver their duties with being monitored by the management team. They should be able to increase their discretionary efforts. This has brought about excellent delivery of services and promoting cost effectiveness.

Motivating staff through rewards and recognition

According to Le (2009), motivating staff through rewards and recognition helps in recognizing excellence. This is usually done by giving awards to best performers. It also propels employees to adopt good and admirable behaviors at all cost. These rewards come in form of performance-base share options, a reasonable percentage of contributions from staff and the performance of the company’s financials. Communication has also brought about service excellence whereby the company holds meetings with staff after a certain period of time to update them on the latest developments and also gives newsletters to communicate to the personnel. Through this communication, service excellence is recognized (Miller, Vandome & McBrewster, 2009).

Why some organizations have not been able to execute resources that help service firms achieve high performance.

Some companies have not been able to execute practices that help service firms to achieve higher company performance despite the evidence because some of them lack a well established strategic alignment that is vital in aligning the competitive strategy of the company with its human resource practices. These adopted practices are significant in determining the service excellence of the particular company. The costs involved in the business level strategies of the unsuccessful companies may be mishandled rendering them to lose the consciousness of the cost capabilities (Heracleous, Wirtz & Pangarkar, 2009). These companies may lack excellent ways of training and developing employees hence lack a well established workforce that is essential to the company’s strategy. The behaviors and attitudes of employees are not well analyzed.

Explanation whether SIA’s human resource practices are encouraging “a race to the bottom” in terms of employ rights

Some of the SIA’s practices would be illegal in the United States. Explanation whether it’s a fair competition or those HR practices are encouraging “a race to the bottom” in terms of employee rights reveals that, human resources practices such as extensive trainings and retraining carried out by SIA may be termed illegal in United States (Wyckoff, 1986). SIA uses a very comprehensive and holistic approach that may not be applied in United States (Le, 2009). Employees in SIA are subjected to four months extensive training which is termed the longest in the industry. Some employees may not be able to practice their rights in order to be in line with the trainings in place (Miller & McBrewster, 2009). They may forego their rights to adopt new rules of trainings. Some employees especially the frontline ones are forced to do services that maybe beyond their work capabilities or level. These types of services maybe meant for the managers. Therefore, this may interfere with the employee’s rights by working more hours (Miller & McBrewster, 2009).

In conclusion, given the emergence of full service airlines which are of high quality and more sophisticated operations and human resource practices, SIA needs to work on the company strategies to be able to catch up with the socio economic changes that may affect it at the micro level. The full service airlines include Emirates in the Middle East AirAsia, the Asian budget carriers that are emerging to b a stiff competition in the industry. SIA needs to reassess its strategies put in place to implement excellent success and promote cost effectiveness to a higher note.

References

Heracleous, L., Wirtz, J., & Pangarkar, N. (2009). Flying high in a competitive industry. Singapore: McGraw Hill.

Le, T. (2009). First aid for the USMLE Step 1, 2009. Singapore: McGraw-Hill Education (Asia).

Miller, F., Vandome, A., & McBrewster, J. (2009). Singapore Airlines. [Place of publication not identified]: Alphascript Pub.

Wyckoff, D. (1986). Singapore Airlines (A). Boston, Mass: Harvard Business School.