The seniority rather than the management has

The service delivery gap is very low in
SIA as compared to other airline firms. Here, their training and recruiting
process is so thorough that SIA always manages to match its customer perception
to the brand promise.

SIA also believes in having leaders and
role models with their employees at all times. These practices done by SIA are
evidently known to boost organizational performance in a cost effective way yet
many do not succeed in implementing them. (Huselid et al. , 1997). SIA tends to
believe that the wrong people are a liability hence their lengthy selecting
process.

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Another edge that SIA has over its
competitors is the brand name and the prestige that comes with working in the
company. This brings fresh and talented recruits who want to be the part of the
SIA team along with increasing the pool of applicants to choose from. This
increases the work ethic and commitment that other brands may not have. SIA’s
reputation also helps the brand be cost effective in ways other company’s can’t.
Another example of this can be the low salary which SIA can afford as working
for the company offers other advantages. Like the recognition and pride of
working in a company that has been voted “best airline” and “best cabin crew”
for the longest time is and upright advantage SIA has over its competitors. (Pangarkar,
2008)

 

 

Evaluating the US Airline
Industry

 

US airlines are mostly connected by
three factors: time, pricing and competition. They are mostly known to have
lower service quality than Asian airlines and bad quality in compared to
Singapore airline. Unions certainly have a role to play in the lack of service
delivery often seen in the US airline. Other reasons include not regularly or
personally monitoring the employee’s performance. Not giving proper financial
or non-financial incentives as rewards for a job well done and not getting rid
of poor performers from the front line staff.

Even though the US airlines spends a lot
of money new seats and planes it all loses its impact due to the poor service
by the front line staff. The employees being controlled by the unions rather
than the company and the evaluation done by seniority rather than the
management has caused the problems faced today by these airlines. Some of the
front line crew that performs well does it because they are motivated to do so.
They do not gain any perks and have no incentive t perform better than
everyone.

So culture and the institution are a
major factor that goes hand in hand to make the service quality better. But as
long as they are only paid to go the route and commendations are the way to
performance evaluations, pay and benefits the airlines will not have done
enough or given enough to their front line workers to deliver exceptional
service. (Leff, 2013)

 

 

 

 

Cutting Cost Internally (Do’s
and Don’ts)

 

As mentioned above SIA being very
successful at service excellence comes at a very low cost to SIA literally. SIA
low provides low rates of salary to their employees according to global
standards and standard according to Singaporean airline. They have gotten into
trouble for not paying their employees well all the while being a company that
focuses on customers. In 2007, SIA was mentioned everywhere because the Line
Pilots’ Association Singapore (ALPA-S) did not agree with the salary rate for
airbus 1380 pilots agreed by the management.

However at SIA the cost cuts are linked
to other motivating factors for employees such as company’s growth and an
approach known as the motivating cost discipline (MCD). This method should be
used by every company wanting to cut costs in an effective and positive manner.
The MCD frame helps the company gain quick and unrelenting cost cutback which involves
and motivates employees.

 

There are six steps to the MCD frame:

1. Set up a procedure formed
by shared values

2. Start managing
unity and assurance

3. Generate the emotional along
with the rational business
case

4. Enroll the help of frontline
motivators

5. Engage the business for making cost cutbacks through four
angles

6. Execute managerial
solutions that produce long-term performance change

 

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