Theme: The impact of recruitment and selection process in organisation. A case study of Singapore Airline
Competitive advantage is a circumstance that put a firm in a strong business position compare to its rivals in the industry (Breaugh, 2008). While the hospitality industry is faced with by micro and macro environmental factors, such as overcapacity, business cycle, high risk profile, difficulty of offering unique products and intensive competition in the industry, few companies such as the Singapore Airline have managed to maintain their market position and stay competitive.
There are many factors that could be linked with SIA competitiveness in the market which ...view middle of the document...
The company was ranked 18th in Fortune Magazine’s annual list of the Top 50 most admired companies in the world. In August 2013, SIA concluded a Collective Agreement with Air-Transport Executive Staff Union in regards to “Towards Optimal Productivity (TOP) for its general staff. The airline is aware and acknowledge the importance of human capital in its operation and several programme in 2014 one of which is “Experience Management System (CEM) and also commenced soft skills training for its ground staff, giving them the opportunities to upgrade skills and also improve productivity in order to provide excellence customer services to its customers in an efficient and effective manner (SIA, 2014).
As such constant training programmes in various functional areas including marketing, customer service, sales, airport operation, reservations and ticketing shows the effectiveness and efficient management of the company’s resource through its human resource policies in an effort to boost an motivate its employees. Some of its HR policies that has been implemented include QIS (Qualification Incentive Sponsorship), aim to level up staff skill and qualification; WINS (Workplace Improvement and Innovation Scheme), redesigning and improving workplace working condition; and lastly, a new Performance Appraisal System was action aimed to reward top performers in the company (SIA, 2014).
SIA holds 38% market share in the Asian market and have been able to sustain its leading position in Singapore by cutting capacity, marketing activities, and improving and innovating in offering cutting edge technologies for its services and products in the industry, which has been accomplished through its rigorous human resource policies and initiatives in the company (Euromonitor, 2015).
The key factor that has contributed to SIA’s competitive success in the industry has been its ability to navigate skilfully between poles that many organisations thinks are distinct, which is the delivering of great customer service in a cost effective manner. The company’s cost is far below industry average, so low that market analysts had to compare it closely similar to those of budget airlines in the industry, yet it is a premium airliner (SIA, 2014).
The five core elements of SIA’s HR strategy include:
Figure 3 (Wirtz et al, 2009).
From the figure above, it is clear that the first step in SIA’s HR strategy begins with recruitment and selection process and that would be the key point discussion in this thesis, as it form the bedrock of any company and performance.
1. The role of HR in SIA’s...