Explanation and Implementation of Contemporary HRM Practices in Singapore Airlines
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This essay analyses human resource management of Singapore Airlines (SIA) which deals in airline industry based in Singapore. It evaluates and explains three major components of HRM and how they can be successfully applied to SIA.
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P a g e|1 Explanation and implementation of contemporary HRM practices in Singapore Airlines The commercial airline sector has become very competitive, highly technological and safety-sensitive industry. People and employees related to the airline industry needs to manage by managers in a way that reduces issues among people and teams as human resource management has not been limited to manage human resources only(Wilton, 2016). The connotations behind managing human resources in contemporary organisations are various and persistent that affects organisation’s strategy, structure and culture along with other abundant operational activities. Yet, HRM is the most significant part of businesses as they are responsible for growth and success of the company. This essay will analyse human resource management of Singapore Airlines (SIA) which deals in airline industry based in Singapore. SIA is a public limited company that includes many subsidiaries related to airline industry. Presently, SIA is considered as one of the major passenger aircraft worldwide since the organisation hires best suited employees for improving the services offered by company(Wirtz et al., 2008). HRM of companies deals with developing, attracting and retaining quality workforce with its key functions like selection, recruitment and rewarding. Therefore, this essay will make an evaluationand explanation of three major components of HRM and how they can be successfully applied to SIA. The provision of good quality services and goods can begin with sound recruitment process. Recruitment can be defined as an activity and a process for obtaining sufficient amount of qualified staff at the correct position and time so that organisational goal and objectives can be gained in effective manner(Richardson, n.d.). Success in recruitment process can be gained by proper employment forecasting and planning for which contemporary manager’s follow a recruitment plan to acquire talented workforce from
P a g e|2 internal and external sources. Before implementing recruitment process in any organisation it is necessary to consider few factors regarding organisation’s size, country’s economic condition, availability of desired talent, firm’s salary structure and organisation’s growth rate(MSG, n.d.). Since SIA is a big organisation gaining huge turnover, salary and working condition issues might not be a huge problem. Also, Singapore is a developed country with high economic standard; the company can gain advantage from it and get most of the desired people(Singapore Airlines, 2018).Big organisations need large manpower and thus look for more people that comprise complex recruitment processes. In aviation industry there are several departments that deal with special skilled people like flight attendants, co-pilots, cabin crew, customer care department etc. The availability of desired people for correct placement becomes issue while making recruitment strategies and thus application of successful recruitment process becomes necessary in airline industry(Heracleous et al., n.d.). Since this essay is using SIA as a case study, recommending sound recruitment process will help the company if implemented under following procedure. Traditional recruitment process begins with job description where manager’s starts looking for desired candidates according to it; however, since this essay deals with aviation industry, it requires recruitment process to be designed in more strategic manner(Martin, 2016). Prior to recruitment procedure, SIA must first identify the vacancy rate and evaluation of need for the vacant position. The company must consider making a thought over whether their operation will be affected if vacancy is not filled or is there any requirement for making the position opens to be taken over by someone. If the reasoning is sufficient, then the recruitment process shall be stated immediately by HRM of the company(Wahl, n.d.). First step of the recruitment process starts with making a job analysis of the desired position to be filled. This step will make SIA’s human resources managers hire a managerand other management people to evaluate the job position along with mentioning a systematic manner
P a g e|3 through which job analysis can be done in effective manner. Second step involves in building a job description as managers must be sure what it needs and whom it desires actually. There may be requirements of placements that are not included in present job designing. Hence, creating a new job description is desired(Becker & Huselid, 2010). An appropriate job description for airline industry includes necessary information regardingjob title and other general information regarding position(Argue, 2015). The purpose behind recruitment and organisational goals are also mentioned along with essential functions required in the job. Basic qualification and requirements are even mentioned to avoid unnecessary cluster of people. Once job description is created, it must be reviewed thoroughly to ensure accuracy in the plan and whether the plan is feasible or not. The basic propose behind reviewing initial plan is to ensure consistent improvement in SIA’s organisational structure and evaluate competency for each position. Next step involves in sourcing talent for the company and let other know about job opening. Advertisements can be made through various modes like internet, print media and social networking and job posting made internally as well as externally by making announcements regarding job offerings(Roth, 2014). Since SIA is a reputable firm, its publicity itself can attract large number of people to apply for a position in the company and SIA can even capitalise on making advertisements regarding job recruitment. Before making selection of desired candidate, screening of applicants is necessary that again involves few steps. Preliminary screening can be done which will shorten the application list and make easier for managers dealing with them individually. Interviewing of passed out of preliminary screening can be done virtually or via telephones. Since SIA deals in many countries, it becomes difficult for managers to deal with interviewing process simultaneously in all the countries, therefore they can take help of internet and video conference to find out relevant
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P a g e|4 people for the open position. Selection can be made after making preparations for final interview depending on the position of job and discussions made by candidate. In human resource management, selection process plays a significant part as it is responsible for providing companies with desired people for enhancing company’s sale and fulfilling its demand for desired candidate. The consideration for talented people becomes important in big organisation as any small error made by them can effect entire reputation made through wrong selection. Many organisations of 21stcentury are selecting and hiring people into their integral part after considering basic elements during selection process(Appelbaum & Fewster, 2002). The selection process is strategically planned and approved by top management and professionals to be implemented following recruitment process. The process of selection begins with evaluation of applicants, which are sometimes made with the help of selection tools to make easier for managers in doing screening of job as well asapplicants. The job of managers becomes crucial as they need to make arrangements for adapting screening tools, interviews, background affirmation, tests, and check references before beginning to accept job applications. The selection criteria are also significant where the ultimate goal of HR mangers becomes making best match for job duty with company’s culture(Kokemuller, 2018).Since aviation industry and public companies need to follow various guidelines from organisational as well as governmental point of view, they need to consider legal factors critically. Any misalignment between selection criteria and job can make applicant claim discrimination and hence can pave way for infringement laws. Therefore, selection process in airline industry possesses more complex analysis than other form of industries for which managers need to follow a plan which act as a guide for themselves. The following selection process can be implemented in SIA’s HRM while making selection process analysis.
P a g e|5 After the completion of recruitment process, there are plenty of recruited people from which selection process can begin. The selection process helps in finding right people for the right job and thus human resource mangers make job analysis before starting selection process. In SIA, the human resource team responsible for making selection process shall be trained professional who can mange several steps involved in selection procedure like developing criteria, preparation of interview questions, reviewing resumes, and weighting candidates. During the implementation of selection criteria, sourcesthat can be used are determined along with finding out the ways selected sources can prove beneficial in entire process(Chattopadhyay, 2018). Culture, personal and other development criteria are investigated after making a close discussion with candidates regarding their skills, aptitude and special characteristics that are required for the specified job. Second step involves reviewing and evaluating resumes. This step can be performed through different procedures like computer programming, manual selection, making close comparisons etc. Interviews can be made by SIA’s HR managers to make confirmation about applicant’s qualification and other personal traits, style and presentation(Edwards & Holland, 2013).A sound firm will always prefer in making further medical examination of candidates to avoid further disruption in work flow. These tests may include physical tests, drug test and cognitive tests. Once this process narrows applicants, SIA can offer job position to pass out candidates through e-mails or letters. Compensation, allowance and other benefits shall be discussed before making final agreements with the job applicants to avoid further issues. Third most important role performed by HR managers in airline industry is to manage reward system in organisation to retain its qualified staff. Reward management is system through which businesses implements and forms strategies to reward its employees for performing fairly and in accord with organisational values(Bagga & Srivastava, 2014). Reward management steps involve business analysis and controlling of employees
P a g e|6 remuneration by giving other benefits to its employees. The designing, implementing and maintenance of reward system are dealt by HRM of companies to improve business performances by motivating employees to work more effectively. Absenteeism in organisation is avoided along with increasing loyalty among staff members. Cooperation among people along with team participation is also implemented as most of the reward policies signify team spirit among people to work collectively(Nduka, 2016). In airline industry, reward system can be managed by implementing and applying reward management that includes all the necessary guidelines according to which people are rewarded. SIA can implement reward system after classifying rewards into three significant categories like intrinsic /extrinsic rewards, financial/non-financial rewards and performance- based/ membership-based awards(Human Resource Management, 2018). Intrinsic reward can be describedas a state when employee experiences sense of achievement or growth from the job and is labelled to get intrinsic reward. While extrinsic reward includes promotions, money and other benefits. Usually these rewards are given in the form of promotions or increments in organisations. Financial rewards are the ones that relates directly with giving employees financial benefits like bonuses, wage increments and profit sharing schemes. Non- financial rewards does not enhances financial position of employees directly but makes job attractive like inclusion of pensions, providing with medical aids, sick leaves, maternity leave and other counselling services(Yousaf et al., 2014). Lastly, SIA can implementperformance based rewards also in which employees are provided with rewards based on performances like piecework payment, commissions, incentive schemes or merit pay for particular performance. Membership based plans includes benefits and salary increment, ranking and other credential or future prospective(Eerde, 2015). Since SIA is a large organisation, its HRM need to make its rewarding system in a criteria that suites its different department accordingly. Any single reward system cannot satisfy its rewards management and therefore
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P a g e|7 above mentioned reward applications can be successfully implemented in SIA’s operations to maximise its outputs. Retaining, acquiring and managing talented and qualified people are critical for organisations as job market is becoming competitive day by day. The required skills make managers recruit in diverse places and have become more selective in their preferences because poor recruiting can make negative effects in long term processes. Selecting best and desired people can minimise training and developing costs to the organisations while gaining high turnover through better performances. Earlier people used to criticise bad services and use of under-qualified staff but the society have transformed into more critical and arguable for which public organisations like airline operation must seek possible boulevard for improving their operations and satisfy their customers with deserved and required services. Moreover, reward management has made simpler for organisations to retain their qualified staff and prevent them from loss of valuable employees. Although Public organisations, especially airline industry, does not need to concern much about market shares as they deal with monopolistic environment still, new trends in marketplace has forced them taking close attention while delivering services due to increase in customer expectations. The above essay has made an implementation plan in human resource field of SIA after analysing its present market situation. The steps mentioned in the essay can help SIA gaining top position in airline industry as it contains necessary information regarding human resource management.
P a g e|8 References Appelbaum, S.H. & Fewster, B.M., 2002.Global aviation human resource management: contemporary recruitment and selection and diversity and equal opportunity practices. [Online] Available at: https://www.researchgate.net/publication/235259833_Global_aviation_human_resource_man agement_contemporary_recruitment_and_selection_and_diversity_and_equal_opportunity_pr actices[Accessed 30 May 2018]. Argue, M., 2015.The Importance of the Strategic Recruitment and Selection Process on Meeting an Organisations Objectives. [Online] Available at: https://esource.dbs.ie/bitstream/handle/10788/2873/mba_argue_m_2015.pdf?sequence=1 [Accessed 29 May 2018]. Bagga, T. & Srivastava, S., 2014. SHRM: ALIGNMENT OF HR FUNCTION WITH BUSINESS STRATEGY.Strategic HR Review, 13(4/5). Becker, B.E. & Huselid, M.A., 2010. SHRM and job design: Narrowing the divide.Journal of Organizational Behavior, 31, pp.379-88. Chattopadhyay, D., 2018.Contemporary HR Policies and Practices. [Online] Available at: https://www.globsyn.edu.in/blog/2018/03/contemporary-hr-policies-practices/[Accessed 30 May 2018]. Edwards, R. & Holland, J., 2013.What is qualitative interviewing?London and New York: Bloomsbury Publishing Plc.
P a g e|9 Eerde, W.V., 2015.Motivation and Reward Systems. [Online] Available at: https://www.researchgate.net/publication/313993584_Motivation_and_Reward_Systems [Accessed 30 May 2018]. Heracleous, L., Wirtz, J. & Pangarkar, N., n.d. Cost-Effective Service Excellence at Singapore Airlines. InFlying High in a Competitive Industry. Singapore: Mc Graw Hill. pp.145-73. Human Resource Management, 2018.Types of Rewards. [Online] Available at: http://hrmpractice.com/types-of-rewards/[Accessed 30 May 2018]. Kokemuller, N., 2018.Why Is the Human Resource Selection Process Important?[Online] Available at:http://smallbusiness.chron.com/human-resource-selection-process-important- 14399.html[Accessed 30 May 2018]. Martin, 2016.What is Recruitment? Definition, Recruitment Process, Best Practices. [Online] Available at:https://www.cleverism.com/what-is-recruitment/[Accessed 29 May 2018]. MSG, n.d.What is Human Resource Planning ?[Online] Available at: https://www.managementstudyguide.com/human-resource-planning.htm[Accessed 31 May 2018]. Nduka, O., 2016.EMPLOYEE MOTIVATION AND PERFORMANCE. [Online] Available at: https://www.theseus.fi/bitstream/handle/10024/120824/Employee%20motivation%20and %20performance.pdf?sequence=1[Accessed 31 May 2018]. Richardson, M.A., n.d.RECRUITMENT STRATEGIES: MANAGING/EFFECTING THE RECRUITMENT PROCESS. [Online] Available at:
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P a g e|10 http://unpan1.un.org/intradoc/groups/public/documents/UN/UNPAN021814.pdf[Accessed 29 May 2018]. Roth, A., 2014.Innovative Sourcing. [Online] Available at: http://www.hrotoday.com/news/talent-acquisition/innovative-sourcing/[Accessed 31 May 2018]. Singapore Airlines, 2018.Singapore Airlines-Our Story. [Online] Available at: https://www.singaporeair.com/en_UK/us/flying-withus/our-story/[Accessed 31 May 2018]. Wahl, C., n.d.HR in the Aviation Industry: Time to Develop a New Generation of Leaders. [Online] Available at:https://www.egonzehnder.com/functions/human-resources/insights/hr- in-the-aviation-industry-time-to-develop-a-new-generation-of-leaders[Accessed 30 May 2018]. Wilton, N., 2016.An Introduction to Human Resource Management. Los Angeles: Sage Publication. Wirtz, J., Heracleous, L. & Pangarkar, N., 2008. Managing human resources for service excellence and cost effectiveness at Singapore Airlines.Managing HR for service excellence, 18(01), pp.4-19. Yousaf, S., Latif, M., Aslam, S. & Saddiqui, A., 2014. Impact of Financial and non Financial Rewards on Employee Motivation.Middle-East Journal of Scientific Research, 21(10), pp.1776-86.