Leadership and HRM: Silvertail Airlines Case Study Analysis

This case study analyzes Silvertail Airlines' response to deregulation in the Singapore aviation market. The analysis begins with a critical examination of the initial situation, highlighting the impact of the government's policies and the emergence of low-cost carriers. The study then evaluates the downsizing tactics employed by Silvertail, focusing on the replacement of older staff with younger employees and the implications of these changes on the company's operations, employee morale, and brand image. The evaluation uses the Control Fan framework to illustrate the budgetary controls, cost optimization, staff replacement, and resource turnover related to downsizing. Finally, the study offers recommendations based on appreciative inquiry to address future needs and proposes an HR plan from both HRM and strategic HRM perspectives. The study underscores the challenges of organizational change, the importance of effective HR planning, and the need for a balance between cost-cutting measures and employee well-being. It also reflects on the significance of adapting to market dynamics and maintaining a competitive edge in the aviation industry.

CASE STUDY: SILVERTAIL

Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Critical analysis of the current situation and its implications....................................................3
3.0 Evaluation of the downsizing tactics and its implications.........................................................6
4.0 Recommendations using appreciative inquiry...........................................................................9
5.0 HR plan to address future needs..............................................................................................12
6.0 Conclusion...............................................................................................................................13
References:....................................................................................................................................14
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1.0 Introduction
Human resource planning may be considered to be one of them most success critical factors
(CSFs) for a business organization. The process of an efficient human resource planning deals
with the identification and careful analysis and subsequent undertaking of various measures
towards attainment of corporate goal. The given report delves into the analysis of one of the
critical aspect of regional planning that is downsizing as given in the case study scenario.
In the very beginning of the study the researcher provides a critical analysis of the current
situation and its implications. In the subsequent parts of the paper, the evaluation has been
performed with respect to downsizing tactics followed by the management. Lastly, the
recommendations have been provided using appreciative enquiry method (AI). Finally revised
career plan has been presented to address the future needs of the organization from HRM and
strategic HRM perspective.
2.0 Critical analysis of the current situation and its implications
It has been determined from the provided case study that the Singapore government has arranged
for an airline agreement between Silver Airlines and its national competitors Singapore Airline.
The government has conducted a specific agreement to increase the price fares of flights and
simultaneously limiting its schedules. The scheme has also been designed to ensure that none of
the airline organization had to put much effort or work hard to in attracting their potential
passengers. Initially, the management of both brands seemed satisfied with the new alterations
implemented by the government within the internal lines. However, with the passage of time, the
implication of the change methods came into action where it stated creating the severe difference
in the careers and operations of the internal resources. In spite of deregulation, the action related
to duopoly appeared set to carry on with only little aesthetic alterations occurring. Then, almost
on overnight, the aviation market of Singapore had been affected the most with the introduction
of one of its low cost carriers on both its international and domestic market.
The impact of this alteration on Silvertail had been severely dramatic and immediate. The share
price of the organization had fallen drastically and the management had been receiving furious
responses from its global investors., The Board of Directors of the organization had been
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replaced consisting of a board with intense and reviving marketers, accountants, advertisers, and
dash of ‘experts’ that had been imported from the United States, the entire operation was dealt
and controlled under the leadership of an open-minded and innovative CEO. In the opinion of
Szymanski, Linkowski, Leahy, Diamond, and Thoreson (2019), it can be noted that alterations in
the process are always necessary to cut down the probabilities of saturations. Moreover, the
aviation sector is getting fiercely competitive with the passage of time, which is demanding the
organizations operating in it to adopt new policies and methods including all the departmental
operations to ensure low risk of stagnancy. In a similar instance, Lee, Rocco and Shuck (2019)
commented that change can also bring high resistance from the internal resources, who are the
primary asset of an organization. The resistance can entirely reverse the situation if not applied
properly; in that case, the organization's intention of future success might not get served.
The case study highlights the fact that the alteration within the Singapore aviation system has
introduced certain changes like the board of director had to move quickly, the foremost mantra of
the organization had been leaner and meaner. The Bloated minded managements’ structures had
been dismantled, majority of the middle management's positions were found disappeared, several
regions branches were closed and the maintenance part had been outsourcing. The specific
change implicates the fact that several positions had been replaced by new experts and few of the
operations had been closed. Thus, it is evident that several resources including junior level staff
and the ones in the managerial and director's position had lost their employment. The specific
situation can never create a healthy working environment within the sector. Organization indeed
require initiating a cost optimization policy to ensure a steady profit if required to balance the
financial segment (Turner, McIntosh, Reid and Buckley, 2019). However, the present situation is
different, where the entire line of management including the top, middle and the lower level staff
of the organization had been replaced. Hence, the probability of resistance and refusal to the
change method is highly estimated.
Nevertheless, it has been observed that despite the disruptive industrial action, Silvertail
managed to emerge as an airline by establishing its new image, where it has been promoted as
young, new and innovative. Conversely, further information justifies the previous discussions
related to employee resistance to change implementations. It has been assessed that despite the
organization receiving adequate acceptance from the public with its new image, yet, it faced
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issues with its internal resources. Where the ground and the cabin crew department seemed to
decline in accepting the new change system. Since, the overall impact of the new system created
a maximum effect on the operations of ground and cabin crew departments. Case study
information details a conversation between the recruitment manager, Sam Milroy and Cabin
crew director, Bobbi Stephens, where discussions were raised regarding the cost optimization
process. In this several staff in the cabin crew, ground crew and the ones within on-flight duties
are about to face sever struggle due to the new system. In the consideration of Chams and
García-Blandón, 2019), it can be noted that the specific plan might serve lucrative outcome to
the organization, yet, it would create a severe threat on the career scope of the employees
working within the stated departments. On the contrary, Fletcher (2019) claimed that
organization always requires to keep its profit maximization aspect at first and then followed by
the employees’ considerations. Therefore, in this chosen organization if the recruitment manager
and the cabin crew director feel the need of implementing downsizing tactic to retain its
operational sustenance and budgetary balance in this highly competitive market, then the specific
approach is highly justified.
Since the business is considered to be an open ended system the external as it ranges from
various market driven factors including changes in the structure of labour market and
competitive scenario. As a result the management may need to provide a constructive and
efficient framework towards better corporate governance. The instant case depicts the issues of
downsizing and related conflicts arising out of the given scenario. It is needless to mention that
the event triggers externality in terms of employee attrition, dissatisfaction and consequent
turbulence on the business operation as a whole. The figure below substantiates the impact of
downsizing on the organization structure, operational excellence and the brand building exercise.
In this context it may also be conceived that management may need to consider these
determinants which are market linked as well as process generated like operational manual ,
policies and needs for revision in the area career development planning for the employees of the
organization.
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Figure 1: Open System: Effect of Downsizing
(Source: Created by author)
3.0 Evaluation of the downsizing tactics and its implications
According to Branicki, Steyer and Sullivan-Taylor (2019), downsizing tactic refer to the
reduction in a firm's operating cost and size incorporated by its management to enhance its
productivity, competitiveness and efficiency. It has been determined from the case study that the
entire alteration in the airline's sector done by the government of Singapore has led Silvertail to
downsize its strength and operation of its internal resources to maintain a balance. It has already
discussed in the previous section that the alteration within the internal method has decreased the
share price of Silvertail and also disturbed the mindset of its investors. Therefore, the brand had
faced several problems with its financial or monetary management. Hence, both the recruitment
and the cabin crew director had planned to replace the older staff with younger ones to ensure
more proficiencies, time efficiencies, multi tasking without resistance and finally an enthusiastic
team. Additional information detailed the fact that the travellers below 30 years and the budget
conscious ones might not respond to the latest image of the brand if the older executives assist
them.
It can be inferred from the specific conversation that the older executive in the cabin crew
department is not efficient to fulfil the demands and requirements of the new change methods.
The brand has enhanced its flight fares and reduces its schedules; hence, it is expected to create a
negative impact on the purchasing actions of the passengers, where they might look for better
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alternatives offering better service with high frequencies and at low fare rates. Since, Silvertail
had increased the price rate and reduce its schedules therefore, the service offerings need to be
precise and of superior quality to convince the passengers in booking its tickets over the
competitors. Hence, the staff including, cabin, ground and the ones with on-flight duties need to
be professional, polite, knowledgeable and adaptable to changes. It can be estimated that the
older in the majority of times have the tendencies of resisting to change methods as they get
accustomed with the older system and thus resist performing out of the box (Hansen, Güttel and
Swart, 2019). The similar had been the case with this organization, where the management has
intended to change its overall brand image to seek the attention of greater potential travellers by
enhancing its brand superiority in the market. Therefore, it has been observed from the
conversation of Sam and Bobbi that the older executives are not much profound to gel well with
the newly implemented plans and they had been offered many luxurious treatments and current
organization is looking forward to costing optimization aspects. Therefore, the employees
offered facilities would be reduced below the standards, which might not be appreciated and
accepted by the older executives. Moreover, the organization also requires new talent and fresh
energies; therefore, the younger staff would replace with the older ones. This would help the
management to bring fresh energies within the system, where fewer employees can be assigned
with multiple tasks to perform. The employees would be provided with adequate training in
order to learn the techniques of performing and handling multiple tasks at a similar point of time.
The overall scenario would be evaluated with the support of Control fan framework.
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Budgetary control
Cost optimization
Staff replacement
Resource turnover
Downsizing tactics
Lower staff facilities
Figure 2: Control fan
(Source: Created by author)
Moreover, the conversation between Sam and Bobbi also indicates the fact that the older ones
would also be replaced with the younger ones since they would resist taking instruction from
employee below their age. In this instance, Amberg and McGaughey (2019) denoted that
organization always face with this employee attitude, where the younger employee getting
promoted to senior level are always disgraced by the older ones that lagged required expertise to
attain the similar designation. The older employees always resist taking orders from the younger
ones and engaging other team members with negative and informal discussions. This lowers the
productivity margin and impact on the overall culture and environment of an organization.
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Herein, Sam and Bobbi also feel the same way that the older employees might refuse to accept
the directions from the younger ones and might not even collaborate with them to maintain a
steady operational balance. Therefore, both the senior level manager believes that the
replacement would be an absolute solution to this issue rather than experimenting with both the
age group for a certain amount of time, as it would incur greater cost and time as well, which
would limit the organization from its cost optimization motive. \
The organization is also about to reduce the comfort of the crew staff, where, instead of
providing five-star hotel experiences, the staff would be offered three start hotels. This might not
fit the criteria of the existing employees, as they got accustomed with the superior facility
offerings by the organization therefore, they might not get adapted to the implemented changes.
On the other hand, the new employees would be hired by stating the facts and the compact
scenario they would be required to handle within the organization. Since they would not be
offered with luxurious provision from the very onset and they would be trained to deal with
challenging circumstances, thus, the risk of resistance would be lower in this case. The
organization can focus on its actual motive to maintain a perfect balance in its budget and
assigning employees with multiple responsibilities and expecting them to perform each with utter
professionalism. Hence, the profit maximization margin of Silvertail would stand high in the
Singapore aviation sector.
4.0 Recommendations using appreciative inquiry
The management of the chosen organization could implement downsized alternative steps
following the approaches:
Discover
In this stage, the management of an organization enables to identify the best effective methods
that can be implemented within the system to earn greater productivity or outcome considering
both shorter and longer term. Herein, the management of the chosen organisation is also planning
to downsize its operation by following certain actions including, employee turnover, replacing
the older staff with the younger lots, lowering the facilities provided to the existing employees
like five start hotel services, etc. However, Faggian, Modrego and McCann (2019) argued that
resource replacement option might not fetch an organization to derive short term benefits or
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profit. Since, there would high probabilities for the younger employee to be inexperienced and
lagging product knowledge, which would incur an organization to invest additional capital on
their training and execution part. The overall induction process would demand a considerable
amount of time, which the organization might not be able to bear at the present moment.
Therefore, it would be a better option if the management strategized to retain the most
experienced and skilled employee after verifying theirs till performances and contribution. This
would provide the management relative time to train the younger resources to adopt the product
knowledge effectively and at the meanwhile, the experienced resources can handle the operation
in terms of dealing with the passengers and assisting them with a professional gesture.
Dream
Herein, the major objective of the organization is to maximize its profit. Therefore, the brand is
aiming to cut the cost by reducing the employee strength. However, the intention of employing a
fresh and younger lot of employee might be convenient in terms of keeping the expenditure low,
yet, the situation might get reversed in case the younger employees fail to understand the work
requirement and deliver the exact service to the passengers. As they would be fresher, thus, they
would require guiding actions from the trainers as well as from the senior level staff that has
adequate experienced in the organization (Lee, Pak, Kim, and Li, 2019). Hence, instead of
replacing all the older ones with the younger resources, the management needs to invest time on
screening existing employees in terms of their performances, behaviours and gesture records in
the organization. Based on which the retention action shall be initiated. According to Branicki,
Steyer and Sullivan-Taylor (2019), it is evident that older employees show greater resistance that
the fresher ones, but, they with experienced they adopt proficiencies and technique to resolve
uncertain issues. Hence, this retention would serve an immense benefit to the organization where
the issues and mistakes of the younger employees can be covered with the right instructions of
the experienced employees.
Design
Herein, the management of the organization needs to implement an open system environment
where the internal functions would get mixed and complex as a result of a growing relationship.
Branicki, Steyer and Sullivan-Taylor (2019) determined that the organization where employees
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maintain a proper professional relationship with each other tends to grow and sustain in the
future scenario. Herein, the employee tries to screen and review the behaviour of the other
members and attempt to resolve the issues within a team without letting any external member to
involve. Therefore, each one tends to help each other and thereby, employee understandings rise.
The management of the organization needs to provide the required support to all the employees
including the older and the younger ones to ensure perfect productivity.
Figure 3: Open System
(Source: Created by author)
Destiny
In this case study, Sam and Bobbie were discussing replacing the older staff with the younger
employees as they passed judgment on the abilities and skills of the older employees by the
examples of their previous organizational scenarios. Both the managers have not even
implemented the change methods and reviewed the performances of the older employees, within
initiating the change they were about to pass judgment, which might suit the scenario is real.
There can be a possibility where the older employees of the organization accept to adopt the new
change and continue serving the origination. In that case, the brand would gain more benefits,
where the training cost would be nullified and the existing members can prolong the operation
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with high expertise and experiences. Thus, the employees would collaborate with the
management and also prefer supporting during the change implementation process without
resisting.
5.0 HR plan to address future needs
Employers’ brand for Silvertail
It has been identified from the case study that the organization is aiming to enhance its price fare
and reducing the schedule or availabilities of the flights. This might not help Silvertail to stand
by its purpose of profit maximization. Thus, Branicki, Steyer and Sullivan-Taylor (2019)
believed that instead of focusing on replacing employees with the younger staff, the organization
could focus on other aspects through which its brand identity can be re-created. The provision of
discounts, social media marketing and notifying the loyal passengers with standard updates,
creating a goodwill in the market through its effective operation and service offerings might help
the brand to fetch its purpose of creating a positive brand will or identity in the Singapore
aviation sector.
Training
Both the employee's segment including the younger and the older employees would require
training to understand the requirements of the changed system. Amberg and McGaughey (2019)
mentioned that it is evident for the organization to recruit some fresh employees that fit the
organizational requirements, yet, the existing ones that have positing performance records in the
organization would also feel the need to be trained to understand the demands of the new system.
Conversely, the older employees would require lesser time to adopt the product or service
knowledge of the new system than the younger ones that would have to complete their induction
and then to attend the training classes. Hence, it would be a lengthy method to train the younger
cabin crew employee to adopt knowledge.
Career management
Since the organization is focusing to replace the older cabin crew members with the younger
ones. Therefore, the career management planning needs to be altered entirely, where the roles
and responsibilities of the new employees need to be designed structurally. It is expected that
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