A MINOR PROJECT REPORT

ON

“The Role of Leadership on Employee Performance

in Singapore Airlines”

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF

THE DEGREE OF BACHELOR IN BUSINESS
ADMINISTRATION

UNDER THE GUIDANCE OF:

Ms. Kritika Nagdev
Assistant Professor, VIPS

SUBMITTED BY:
Hariharan M.
Enrollment No: 0491771715, BBA Sem III (2015- 18)

Vivekananda School of Business Studies

Vivekananda Institute of Professional Studies
AU Block (Outer Ring Road) Pitampura
Delhi - 110034
 STUDENT’S UNDERTAKING

This is to certify that I have completed the minor project titled “The Role of Leadership
on Employee Performance in Singapore Airlines” under the guidance of Ms. Kritika
Nagdev in partial fulfillment of the requirement for the award of Degree of Bachelor of
Business Administration Vivekananda Institute Of professional Studies, Delhi. This is
original piece of work and I have not submitted it earlier elsewhere.

Name: Hariharan M.

Enrollment No: 04917701715

Class & Section- BBA (3B)

 CERTIFICATE OF GUIDE

This is to certify that minor project titled “The Role of Leadership on Employee
Performance in Singapore Airlines” is an academic work done by “Hariharan M.”
submitted in the partial fulfillment of the requirement for the award of the degree of
the Bachelor of Business Administration at Vivekananda Institute of Professional
Studies, Delhi, under my guidance and direction.

To the best of my knowledge and belief the data and information presented by him in
the project has not been submitted earlier.

Ms. Kritika Nagdev

Assistant Professor

Vivekananda Institute of Professional Studies

 ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to VIVEKANANDA INSTITUTE OF PROFESSIONAL STUDIES,
GGSIP University, New Delhi for imparting us very valuable professional training in BBA.

I pay my gratitude and sincere regards to “Ms. Kritika Nagdev”, my project Guide for giving me the cream
of her knowledge. I am thankful to her as she has been a constant source of advice, motivation and
inspiration. I am also thankful to her for giving me suggestions and encouragement throughout the project
work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and library staff for
providing me opportunity to utilize their resources for the completion of the project.

Name: Hariharan M.

Enrollment No: 04917701715

Class & Section- BBA (3B)

 Table of Contents

CHAPTER -1
Executive Summary

CHAPTER -2

About the Organization / Company Profile……………………………………………

CHAPTER -3
Research Methodology of the study…………………………………………………..

CHAPTER -4
Findings and
Analysis……………………………….………………………………………………

CHAPTER -5
Suggestions………………………….……………………………………………………

CHAPTER -6
Conclusion ……….……………………………………………………………………..

Bibliography
 CHAPTER-1
EXECUTIVE SUMMARY
Purpose of study: The purpose of the study is to understand the importance of leadership in the
effective performance of employees in airline industry.I have got lots of information from the Indian
airline industry and Singapore airline industry. I have got sufficient evidence that leadership is a crucial
factor in effective performance of employees.

Research objectives: The objective is to explore about Singapore Airlines and to analyze its employee
performance and to establish relationship between good leadership and employee effectiveness
Research Methodology: Types of Research Approaches/methods

 Qualitative.
 Quantitative.
 Correlation/Regression Analysis.
 Meta-Analysis.
 The art disciplines.
 The science disciplines.
 The discipline of philosophy.
 The discipline of history.
This study uses exploratory research

Data Collection:

OVERVIEW OF DIFFERENT DATA COLLECTION TECHNIQUES

Technique Key Facts Example
 Interviews can be conducted in person or
over the telephone
 Interviews can be done formally
One-on-one conversation with
(structured), semi-structured, or
parent of at-risk youth who can
informally
Interviews help you understand the issue
 Questions should be focused, clear, and
encourage open-ended responses
 Interviews are mainly qualitative in
nature

 Responses can be analyzed with

quantitative methods by assigning
numerical values to Likert-type scales Results of a satisfaction survey or
Questionnaires  Results are generally easier (than opinion survey
and Surveys qualitative techniques) to analyze
 Pre-test/Post-test can be compared and
analyzed
  Allows for the study of the dynamics of a
situation, frequency counts of target
behaviors, or other behaviors as indicated
by needs of the evaluation
 Good source for providing additional Site visits to an after-school
information about a particular group, can program to document the
Observations
use video to provide documentation interaction between youth and
 Can produce qualitative (e.g., narrative staff within the program
data) and quantitative data (e.g.,
frequency counts, mean length of
interactions, and instructional time)


A facilitated group interview with
individuals that have something in
A group of parents of teenagers
common
in an after-school program are
 Gathers information about combined
Focus Groups invited to informally discuss
perspectives and opinions
programs that might benefit and
 Responses are often coded into categories
help their children succeed
and analyzed thematically

 Involves studying a single phenomenon

Shadowing a family while
 Examines people in their natural settings
recording extensive field notes to
 Uses a combination of techniques such as
study the experience and issues
Ethnographies, observation, interviews, and surveys
associated with youth who have a
Oral History,  Ethnography is a more holistic approach
parent or guardian that has been
and Case Studies to evaluation
deployed
 Researcher can become a confounding
variable

 Consists of examining existing data in the

form of databases, meeting minutes,
reports, attendance logs, financial
Documents and records, newsletters, etc.
Records  This can be an inexpensive way to gather
information, but may be an incomplete
data source
To understand the primary
reasons students miss school,
records on student absences are
collected and analyzed

This study uses secondary data obtained from journals and articles
 CHAPTER 2
INTRODUCTION
Leadership
A leader is one who guides and directs other people. He interprets the objectives of the group and guides
it towards their accomplishments because he has other subordinates to him and subject to his command,
the leader must give their efforts a direction and purpose. Managers at all levels must perform the
function of leadership to lead the subordinates towards a definite direction. In fact, leadership is an
essential element of managing for influencing people to achieve mutually compatible goals. It is a
psychological process of influencing followers or subordinates and providing guidance to them. To be
effective the leader should change the leadership style depending upon the situation.

“Leadership is the process by which an executive imaginatively directs, guides and influences the work
of others in choosing and attaining specified goals by mediating between the individuals and
organization in such a manner that both will attain maximum satisfaction.”
- THEO HAIMANN
The qualities of leadership according to Chanakya are:
1. Intelligent and Dynamic
2. Association with elders
3. Truthful in speech
4. Does not break promises
5. Grateful
6. Desirous of training
7. Easily approachable

1. Intelligent and dynamic

Intelligence and dynamism are two sides of the same coin. Every leader has to be intelligent.
Intelligence is often thought to be about academic brilliance or high IQ scores. Research has proved
that every person has equal intelligence at birth. However, as time goes by depending upon person’s
education and environment, his or her intelligence is sharpened. Reading good books, newspapers and
research journals will help in making you more aware and informed about the world. We must develop
the skill of analyzing the information you have gathered, taking important decisions and acting on those
decisions. Once the leader has understood the key problem through his study, research, discussion and
analysis, and reached a solution for problem, that is only the starting point. The next step is to implement
his findings. The second aspect is being dynamic. It requires initiative, guts and self-confidence to
implement your plan.
Great leaders start and make sure they succeed, in spite of problems.
2. Associates with elders
A leader must constantly be in touch with elders. This means learning from “real-life experts” in fields
such as leadership, management and finance. Your journey to meet and learn from real-life experts
should go on forever. We must always learn from the expert people and who are more experienced than
you are.

3. Truthful in speech
Speaking the truth is important for a leader. But one step before that is to “understand the truth”. This
is the key to success. A leader has to find out the truth before taking any

Decision. The leader should say what he feels is right and correct. A great leader is one who calls a
spade a spade. A leader needs to face reality and he should stand by truth.
A leader should remember that “one needs to understand emotions but not get emotional”.

4. Does not break promises

Leadership is not about over-promising and under-delivering. It is about delivering what is promised.
“Walk the talk” is the mantra. A leader should keep his promises. He should always remember that it
was not the promise that you made to others but the oath you took when you started on the journey...

5. Grateful
Gratefulness means humility. True strength lies in humility. There is belief that humble people are
powerless. But the opposite is true- powerful people are humble. Everyone may not be equal in power,
status or wealth. But the day you realize that is equal in the eyes of God…The leader in you is born.

6. Desirous of training
Being desirous of training has two aspects: the desire to get trained and training others. Training is a
very important part of life. We must always keep learning and push yourself for more knowledge in
your respective field. Learning should stop only at death.

One has to learn regularly and continuously. This is being desirous of training. But one who is trained
should also train others. A true leader never worries about knowledge being stolen or taken away by
others. In fact, knowledge grows when it is shared.
Investment in training should be of the highest standards.

7. Easily approachable
A leader makes himself available to the people when they require him, not just when
He requires them. Giving unrestricted entrance to people is important. A problem can be handled well
if it is in a nascent stage. If decisions are not taken, it becomes uncontrollable. For the information and
data come to you at initial stages itself, an open-door policy is required. Be a problem solver, and quick
decision maker.

ROLE AND IMPORTANCE OF LEADERSHIP

Leadership is regarded as the most crucial quality of behavior of the managers. The importance of
leadership can be discussed as follows:
1. Providing inspiration to employees: A leader creates a strong urge in employees for

Higher performance. By showing the proper way to do their job, the leader helps employees to do their
job, the leader helps employees to give their best to the organization. Leadership triggers a person’s
will-to-do and transforms desires for achievement into burning passions for successful accomplishment.

2. Securing Cooperation: A dynamic leader brings life into the group. He influences the behavior of
employees in such a way that they readily work for organizational objectives. He makes them realize
that by translating plans into action they can earn adequate rewards.

3. Creation of confidence: Sometimes, individuals fail to recognize their qualities and capabilities. The
leader creates confidence among them by his superior knowledge.

He provides psychological support and infuses the spirit of enthusiasm in the followers by his conduct
and expression.

4. Providing conducive environment: Efficiency of performance depends on the work environment.

Leadership aims at creating and maintaining a satisfactory environment for employees to contribute
their maximum towards achieving the goals. The leader or manager encourages subordinates to take
initiative and helps them in their personal advancement.
5. Building Higher Morale: Good leadership is indispensable in building high employee.

The leader shapes the thinking and attitudes of the group and maintains discipline. He develops good
human relations and facilitates interactions between the members of the group.
6. Facilitation of change:
Dynamic leadership is the cornerstone of organizational change and development.

A good leader prepares the people for the change and gives them the necessary support to adapt to
change.

The importance of employees

Employees are important to businesses because they enable those businesses to operate and offer
valuable knowledge that helps businesses become successful. They are loyal to a company if they
believe that they are treated well, another factor that enhances a company's success. It's important for
companies to strike a healthy balance between remaining profitable and treating their employees well.
Without employees, a company is limited in its ability to provide good customer service and realize its
future goals. Some businesses choose to eliminate employees in order to cut costs and save money.
However, this may hurt a company's bottom line in the long run, notes Inside Business 360.
 While automation, the use of control systems that minimize human intervention, is useful in some
instances, it cannot replace the necessity of human interactions in other situations. This is another reason
why employees are important to businesses. Jobs that don't have a significant amount of routine tasks,
as well as those that require abstract reasoning, such as transportation jobs and firefighting, rely heavily
on human employees.

Employers can better retain employees by showing them appreciation, states Glassdoor. Businesses can
show appreciation by thanking employees for work done well or offering gift cards and cash bonuses
during holidays and year's end.
The relationship between leadership and employee performance

Leadership has drawn great attention from scholars in various fields in the recent years. The present
work, however, focus on the transformational, transactional and laissez‐faire leadership model and the
relationship between these leadership styles and employee performance. The study is a comparison
between selected public and private sector enterprises and the data comprises of 43 middle‐level
managers and 156 subordinates. The paper looks first at various factors that add to the effectiveness of
leadership through Garrett scores. It then discusses whether there is any differences in the leadership
choice between the public and private sector enterprises. Finally, the relationship between
transformational, transactional, laissez‐faire leaderships and employee performance is explored through
correlation and regression analysis. The results are likely to suggest that leaders must have the ability
to attract / influence their subordinates, be able to set clear standards of performance to their peers and
act as a best role model to the subordinates. The subordinates expect that their achievements must be
recognized and rewarded either with monetary or with non‐monetary terms. The Garrett’s score that
gives the preferences of the Middle level managers and the subordinates from among various leadership
styles recommended the transformational leadership style in both the public and in the private sector
enterprises. The results of correlation and regression analysis suggests that the transformational
leadership style has significant relationships with performance outcomes; The study thus adds some
additional knowledge for a better understanding of the preferred leadership approach and appropriate
style for use with subordinates in various professional levels.

Various leadership styles

1. The pacesetting leader expects and models excellence and self-direction. If this style were
summed up in one phrase, it would be "Do as I do, now." The pacesetting style works best when the
team is already motivated and skilled, and the leader needs quick results. Used extensively, however,
this style can overwhelm team members and squelch innovation.

2. The authoritative leader mobilizes the team toward a common vision and focuses on end
goals, leaving the means up to each individual. If this style were summed up in one phrase, it would
be "Come with me." The authoritative style works best when the team needs a new vision because
circumstances have changed, or when explicit guidance is not required. Authoritative leaders inspire
an entrepreneurial spirit and vibrant enthusiasm for the mission. It is not the best fit when the leader is
working with a team of experts who know more than him or her.

3. The affiliate leader works to create emotional bonds that bring a feeling of bonding and
belonging to the organization. If this style were summed up in one phrase, it would be "People come
first." The affiliate style works best in times of stress, when teammates need to heal from a trauma, or
when the team needs to rebuild trust. This style should not be used exclusively, because a sole
reliance on praise and nurturing can foster mediocre performance and a lack of direction.

4. The coaching leader develops people for the future. If this style were summed up in one
phrase, it would be "Try this." The coaching style works best when the leader wants to help
teammates build lasting personal strengths that make them more successful overall. It is least effective
when teammates are defiant and unwilling to change or learn, or if the leader lacks proficiency.

5. The coercive leader demands immediate compliance. If this style were summed up in one
phrase, it would be "Do what I tell you." The coercive style is most effective in times of crisis, such as
in a company turnaround or a takeover attempt, or during an actual emergency like a tornado or a fire.
This style can also help control a problem teammate when everything else has failed. However, it
should be avoided in almost every other case because it can alienate people and stifle flexibility and
inventiveness.

6. The democratic leader builds consensus through participation. If this style were summed up in
one phrase, it would be "What do you think?" The democratic style is most effective when the leader
needs the team to buy into or have ownership of a decision, plan, or goal, or if he or she is uncertain
and needs fresh ideas from qualified teammates. It is not the best choice in an emergency situation,
when time is of the essence for another reason or when teammates are not informed enough to offer
sufficient guidance to the leader.

Situational approach to leadership

Leadership is the outcome of several forces which interact continuously. These forces may be classified
as follows:

1. The Leader: Leader’s personal values shape the perceptions and behavior. Leader’s confidence in
the group members, extent of power sharing and general circumstances, the leader’s preferences are
important characteristics. Leader’s awareness of self is also significant.
2.The Followers: The forces with the followers include identification with the leader’s objectives,
interest and involvement in solving problems, knowledge and experience, need for independence.

3. The Organization: Nature and type of organization exercise significant influence

On leadership. When the degree of interdependence between specialized units is high, lateral
relationships are essential for coordination

AIRLINE INDUSTRY
Introduction
India’s civil aviation industry is on a high-growth trajectory. India aims to become the third-
largest aviation market by 2020 and the largest by 2030.
The Civil Aviation industry has ushered in a new era of expansion, driven by factors such as low-cost
carriers (LCCs), modern airports, Foreign Direct Investment (FDI) in domestic airlines, advanced
information technology (IT) interventions and growing emphasis on regional connectivity. India is the
ninth-largest civil aviation market in the world, with a market size of around US$ 16 billion. India is
expected to become the third largest aviation market by 2020#.
“The world is focused on Indian aviation – from manufacturers, tourism boards, airlines and global
businesses to individual travelers, shippers and businessmen. If we can find common purpose among
all stakeholders in Indian aviation, a bright future is at hand” said Mr. Tony Tyler, Director General
and CEO, International Air Transport Association (IATA).

Market Size
In May 2016, domestic air passenger traffic rose 21.63 per cent to 8.67 million from 7.13 million
during the same month of last year. Passenger traffic during FY 2015-16 increased at a rate of 21.3 per
cent to 85.57 million from 70.54 million in the FY 2014-15.
In March 2016, total aircraft movements at all Indian airports stood at 160,830, which was 14.9 per cent
higher than March 2015. International and domestic aircraft movements increased 10.5 per cent and
16.0 per cent, respectively, in March 2016.
Indian domestic air traffic is expected to cross 100 million passengers by FY2017, compared to 81
million passengers in 2015, as per Centre for Asia Pacific Aviation (CAPA).
India is among the five fastest-growing aviation markets globally with 275 million new passengers. The
airlines operating in India are projected to record a collective operating profit of Rest 8,100 core (US$
1.29 billion) in fiscal year 2016, according to Crisis Ltd.

Road Ahead
India’s aviation industry is largely untapped with huge growth opportunities, considering that
air transport is still expensive for majority of the country’s population, of which nearly 40 per cent is
the upwardly mobile middle class.
The industry stakeholders should engage and collaborate with policy makers to implement efficient and
rational decisions that would boost India’s civil aviation industry. With the right policies and relentless
focus on quality, cost and passenger interest, India would be well placed to achieve its vision of
becoming the third-largest aviation market by 2020 and the largest by 2030.
Exchange Rate Used: INR 1 = US$ 0.0149 as on May 16, 2016

SINGAPORE AIRLINES

The history of Singapore Airlines dates back to 1 May 1947, when a Malayan Airways
Limited Airspeed Consul took off from Singapore's Kallang Airport on the first of three scheduled
flights a week to Kuala Lumpur, Ipoh and Penang. Over the next two decades, the Airline steadily
acquired more planes. In 1963, the Federation of Malaysia was born and the Airline became known
as Malaysian Airways. In May 1966, it became Malaysia-Singapore Airlines. Later, the new look of
the airline evolved further with its first Boeings - three B707s, then a fleet of B737s (SIA, 2009a).

In 1972, Malaysia-Singapore Airlines split up to become two entities - Singapore Airlines and
Malaysian Airline System. At its inception, SIA had a small fleet of 10 planes, 6000 employees and
flight service to 22 destinations in 18 countries. The government made it clear to SIA's executives
that their goal was to generate profits as the Republic of Singapore didn't need its own national carrier
simply for prestige or to emphasize its presence as a country.SIA grew rapidly and by 1989 it flew to
57 cities in 37 countries. By the end of the 20 th century it serviced 119 cities in 41 countries and its
global destination network continues to grow.Today, SIA's network spans over 43 countries (SIA,
2009a).

In terms of expanding its fleet, the airline has consistently retained its impressive reputation.In the
1980's, SIA's fleet was the first to include the Airbus A300 Superbugs, the Boeing 747-300 Big Top,
the Boeing 757 and the Airbus A310-200. It was also the first airline to fly a commercial flight across
the Pacific using the Boeing 747-400 Megatop (SIA, 2009a).

In the 1990's SIA revolutionized in-flight communications by introducing the KrisFone. This feature
provided passengers with global telephone service while cruising at 35,000 feet. At the same tim e,
SIA was seeking to improve its fleet by placing a US$ 10.3-billion order for 22 Boeing 747-400s and
30 Airbus A340-300s, a US$12.7-billion order for 77 B777s in 1995, and a US$2.2-billion order for
10 Airbus340-500s in 1998 (SIA, 2009a).

In 2000, the Airline placed 19 Airbus A380s on firm order and a US$4-billion order for 20 more
Boeing 777-200s in 2001. In 2004, Singapore Airlines was the first to operate the world's longest
non-stop commercial flight between Singapore and Los Angeles in February on the A340-500,
surpassing the record (in terms of distance) later that year with the non-stop service to New York
(Newark) in June. The A380, the world's largest commercial plane, entered service with Singapore
Airlines on 25 October 2007, making it another world's first (SIA, 2009a).

Singapore Airlines and its Subsidiaries

SIA's business is broken into 2 types: travel & services. Apart from operating Singapore Airlines,
SIA also operates Silk Air which flies to 30 Asian-only destinations. Another SIA subsidiary –
Tradewinds - offers a wide range of tour and travel packages to multiple global destinations. SIA
Engineering Company provides top-notch engineering services to over 85 air carriers and aerospace
equipment manufacturers from all over the world. Another SIA company, SATS, provides services
including catering, passenger, baggage, cargo and ramp handling, aircraft interior cleaning, aircraft
security, and linen laundry. Finally, SIA Cargo operates to destinations around the world with its
large fleet and most technologically advanced commercial freighters - the B747-400 Freighter (SIA,
2009a).

In-Flight Firsts & Innovation

The name of Singapore Airlines has become synonymous with in-flight firsts. The airline made
history again when, in 2004, it introduced the longest non-stop flight (SQ-21) from Singapore's
Changi International Airport to New York's Newark Liberty International Airport. The flight path
takes passengers on an over 18-hour long journey over the North Pole and the in-flight experience is
far from a typical transoceanic flight.According to Michael Tan, SIA's Commercial Senior Vice
President (VP), the airline considers product and service innovation as extremely important: "We are
really dedicated to product innovation. We have a department that looks at nothing but new products,
new services, and new types of services. We are driving towards inculcating a very strong innovation
culture throughout the company" (Sutherland et al, 2003).

The highest quality of service is one of SIA's goals and flight SQ-21 from Singapore to Newark serves
as an excellent example. When boarding flight SQ-21, passengers can only expect in-flight service of
the highest order which provides passengers with unforgettable cabin, gourmet, wining & dining, and
in-flight entertainment experiences.

SIA certainly redefined transcontinental air travel when it introduced the SQ-21 daily all Business
Class service to Newark. This innovation to the original SQ-21 was introduced in July of 2008.The
Airbus 340-500 was fitted with 100 Business Class seats. The seats are 30- inches-wide and are
arranged in a forward facing, 1-2-1, layout. This provides every passengers with direct access to the
aisle. The seats also convert into a fully flat bed.

In-flight comfort is extremely important to SIA.For the comfort of the Business Class passengers the
airline provides soft terry-cloth socks and eyeshades. Also, a wide selection of branded toiletries such
as eau de cologne, aftershave, and moisturizing lotion are available in all lavatories. In addition,
toothbrush sets, combs, disposable razors, and shaving cream are also available (SIA, 2009a)

Moving around the cabin is easy and is certainly encouraged.Passengers can get up and help
themselves in the Passenger Lounge to pick up small meals and drinks or to socialize during the flight.

The SIA World Gourmet Cuisine offers a wide selection of signature dishes designed by a panel of
internationally renowned chefs like Wolfgang Puck, Gordon Ramsay, Alfred Portale or Georges
Blanc. The wine & beverage list is equally impressive and features items selected by the world's most
selective beverage consultants (SIA, 2009a).
KrisWorldis SIA's award-winning in-flight entertainment system. The system offers passengers a
wide range of entertainment options. Passengers can choose from a variety of 500 movies, TV
programs, music CDs and entertainment channels. Furthermore, the system provides a selection of
video games and even language learning tools provided by Berlitz. The system also allows passengers
to entertain themselves with their personal audio/video by connecting their iPods or MP3 players to
the 15.4-inch LCD monitor (SIA, 2009a).

2. Innovation and Added Value for SIA's Stakeholders

There are many definitions of stakeholders, but the one that will be considered for this paper is: "The
stakeholders in a corporation are the individuals and constituencies that contribute, either voluntarily
or involuntarily, to its wealth-creating capacity and activities, and that are therefore its potential
beneficiaries and/or risk bearers" (Post et al., 2002). This part will focus on three types of
stakeholders: customers, employees, and shareholders.

Customers

Singapore Airlines has positioned itself as a premium carrier that differentiates on service, not on
ticket cost (Heraclius et al, 2009). It aims to provide its customer with a unique experience, so that it
can charge a higher, though still competitive, price. This strategy of differentiation requires it to have
excellent customer service. It is possible to state undoubtedly that SIA does a great job in that area.
It is routinely voted the 'best airline', 'best business class', 'best cabin crew service', 'best in-flight
food', 'best for punctuality and safety', 'best for business travelers', 'best air cargo carrier', even 'Asia's
most admired company' (Wirt et al., 2001).

According to Wirt et al. (2001) the key factor for the company's success is the fact that they are always
surprising their customers with new features, creating a wow effect for them. The wow effect doesn't
only occur with edgy new gadgets on the seats, it also occurs with the service of the flight attendants
and others employees. For instance, on flight SQ21, the flights attendants are encouraged to call the
passengers by their names just to try to make the flight more pleasant and personalized (Hanks, 2006).
Another thing that makes SIA's flights different from other airlines is the extensive entertainment
system and the personalized food service on-board. This high level of service adds a lot of value for
SIA's customers, especially when they are on an 18-hour flight.

Employees

Usually, customer satisfaction is very closely linked with employee satisfaction, and this case is no
different. In service business the employees that interact with the costumers, the front -line staff, are
frequently seen as the company itself (Wirt et al., 2007), as if they were the face of the company. So
if the costumers, for any reason whatsoever, don't appreciate the way they have been treated by any
of the staff, they will certainly come out with a bad impression of the company. Also, human assets
are the hardest quality for a competitor to imitate, because of the complexity of the company's culture,
so SIA's employees play an important part in its strategy of differentiation.
The Human Resources department clearly plays its role in making SIA incredibly successful in staff
performance. Besides the very rigorous recruitment process and initial training program (Heraclius
et al, 2009), the employees participate in frequent training to continuously improve their skills. This
is very important since this is one of the things that adds the most value to a worker. Yap Kim Wahl,
senior VP Product and Services, said in an interview (Wirt et al., 2007): "We believe that there is no
moment, regardless of how senior a staff is, when you cannot learn something. So all of us, senior
VPs included, are sent for training regularly. We all have a training path. You can always pick up
something. If you have completed quite a number of programmers, then you go for sabbatical. You
go and learn a language, do something new and refresh yourself."

The reward and recognition system is also important to keep the employees motivated: "SIA employs
various forms of reward and recognition including interesting and varied job content, symbolic
actions, performance-based share options, and a significant percentage of variable pay components
linked to individual staff contributions and company's financial performance" (Wirt et al., 2007). A
more detailed review of SIA's reward system can be found in section five.

In addition to winning the Business Traveler Awards for Best Cabin Staff for many years, SIA's
flights attendants have their share of glamour in their home country, just like their colleagues in the
U.S in the 1960s. "Singapore Girl has become synonymous with the airline and the personification of
quality service while most other airlines have not managed to "brand" and promote their cabin crew
as successfully" (Wirt et al., 2007).

Shareholders

As mentioned before, the shareholder is one of the most important stakeholders. One of the best ways
to indicate the added value to the shareholders is by the company's results. SIA is the only airline
company that has never had a loss on a yearly basis and according to Data monitor (2008) forecasts,
in 2012 Singapore Airlines industry will have a value of $11.2 billion, an increase of 73.7% since
2007. The compound annual growth rate of the industry in the period 2007-2012 is predicted to be
11.7%.

When analyzing SIA's annual report of 2008/2009 (SIA, 2009b) it is possible to observe a few things.
Apart from 2008, which was an atypical year due to the global economic crisis and heavy fluctuations
in the oil price, SIA has always had a remarkable growth. For instance, the closing price of its stocks
went from SG$7, 20 to SG$13, 16 in the last twelve years (1997-2009). Total revenue went from 8.2
billion to 13.05 billion in 9 years (1999-2008).

In the meanwhile, SIA's competitors have not been performing nearly as well. Continental Airlines
saw it stocks drop from US$34,81 to US$8,76 in the same 12-year period, while British Airways
stocks declined from GB£6,86 to GB£1,25 (Reuters, 2009). As can be seen in Figure 1, Singapore
Airlines has had significantly better net profit margins that the average of the top 20 airlines
(Heraclius et al., 2005).

Figure 2: Net profit margins of Singapore Airlines compared to top 20 competitors (Heraclius et.al.
2005)
3.Singapore Airlines' Innovation Strategy

Innovation Strategy

Traditionally, there are two innovation strategies that a company can follow. The first one is a "play-
to-win" (PTW) strategy, which involves a company investing in innovation to stay ahead of the
competition. Essentially, the PTW strategy is focused on producing a significant competitive
advantage that competitors will not be able to match. When implementing the PTW strategy, the
company invests a lot of money in technological and business model changes, so that it can outpace
its competitors through radical innovation.

The second strategy is labeled as "play-not-to-lose" (PNTW), which is more suitable for a company
in a high uncertainty environment with a lot of strong competition. A company should also explore
the PTNL strategy if it has many constraints that do not allow innovation to flourish, making the PTW
strategy not a viable option. Typically PNTL includes more incremental innovation (Davilla et al.,
2006).

As the examples in the previous sections show, Singapore Airlines has always been a leader in
innovation. Singapore Airlines was the first to operate the world's longest non-stop commercial flight
between Singapore and Los Angeles in February of 2004 on the A340-500. The company again
surpassed the record in terms of distance in June of that year with a non-stop service to New York.The
A380, the world's largest commercial plane entered service with Singapore Airlines on 25 October
2007, making it another world's first (SIA, 2009a). With these radical innovations, Singapore Airlines
has become a powerful company, while the competition is still trying to match their competitive
advantage. These are all clear examples that SIA has chosen a Play-to-Win strategy. In the next
paragraphs the internal and external factors, as mentioned by Davila et al. (2006), that lead to this
conclusion will be discussed.

When examining the internal factors that affect the choice between PTW and PNTL, it can be seen
that even though SIA lacks in its level of technological advancement, the partnerships that SIA has
developed help to improve this situation. Two examples are the partnership with Goodrich for the
component and system maintenance (Airline Industry Information, 2007) and the seven year
agreement with IBM for IT services (Business Wire, 2004). SIA's use of information technology is
an essential enabler of its innovation strategy, by enhancing not only customer service but also
communication within the company (Heraclius et al., 2009).

Regarding organizational capabilities and top management vision, SIA has proven that it has the
innovational qualities that a PTW strategy requires. The leadership of the company is very strong and
Chew Chon Sang has proven to be a very successful businessman (Filmy, 2008). The need for
innovation is clearly articulated by the leadership. With such a strong leadership, it is easy for the
airline to evolve its strategy and shift to a more radical innovation approach when needed.

The last internal factor is the success of the current business model. SIA has proven to be a very
successful company that can adjust its existing business model to increase profits. For example, SIA
decided to change all the seats on flight SQ21 to business class, (Airline Industry Information, 2008)
becoming the first company to provide all-business class from North America to Asia. From the
history of the company we have seen that it constantly seeks to be the best and to maximize its profits
(SIA, 2009a).

Looking at the external factors that affect the choice for PTW or PNTL, SIA has had many good
partnerships that have helped a lot with the growth of the company, as was mentioned before. By
outsourcing those services that are not a core competency – that is, those services that are not so
visible to the customer, SIA has saved money that has been used to reach very high service levels at
a profit. This is characterized by the fact that it has been voted numerous times as the world's best
airline (Filmy, 2008).

The airline business is a very dynamic industry, so SIA does not sit comfortably waiting for its next
big innovation. It expects that any of its innovations have a limited shelf life, and so it is constantly
adjusting in order to sustain its differentiation and maintain continuous improvement. When dealing
with its competition, SIA is a leader and a fast follower at the same time. (Heraclius et al., 2009).

Innovation Mix

The innovation mix describes the combination of radical, semi-radical and incremental innovation a
company has. As we stated above, SIA pursues radical innovation in order to boost up profits and the
level of competitive advantage compared to other companies. In addition, SIA is constantly searching
for a higher goal to achieve. Interestingly enough, even though SIA is a company that looks actively
to reduce costs (SIA, 2009a), it still maintains its marginal value to customers. This is achieved with
small incremental innovations, as well as sustained differentiation from its competitors. Singapore
Airlines has a Product Innovation Department that does research on why people behave in a certain
manner. The department studies their reactions and then makes a three-to-five year projection of what
is likely to happen, so that they can better understand the customer needs. Some of this research has
led to the development of internet and phone check-in for all classes, and the full-size Space Bed.
Furthermore, SIA not only is good at innovation, but also is a very fast follower to areas that are not
so visible to the customer, such as revenue management or CRM systems. (Heraclius et al., 2009).

Launched in 1972, Singapore Airlines (SIA) is a globally renowned brand and one of the most
profitable airlines in the world. Its world-class service, innovative offerings and modern fleet have
won the company numerous international accolades over the years. In 2005, for example, SIA was
voted ‘best airlines company’ by Conde Nest Traveler and ‘world's best international airline’ for the
tenth consecutive year by Travel+Leisure magazine. In 2006, SIA was ranked one of the world's most
admired 20 companies by Fortune magazine. It was the only airline to make the grade and one of
only two Asian companies in the list (the other was Toyota) (Demos, 2006).

SIA's core promise focuses on the in-flight experience – the personal service and service-related
comforts – which is embodied by the airline's now famous sarong kebaya-clad stewardesses. Thanks
to a highly successful branding campaign, the SIA stewardess has become an international icon
known affectionately as ‘the Singapore Girl’. The ‘Singapore Girl’ is the essence of SIA’s unique
style of service. She ‘mirrors her Asian heritage – natural femininity, natural grace and warmth, and
a natural, gentle way with people’ (Bate, 2002: 120). To ensure that customers get the best in-flight
experience, SIA has also pioneered a number of services ‘firsts’ in the airline industry, including
offering ‘the largest drink menu in the skies, the largest complement of cabin crew, and the most
comfortable seats’ (Bate, 2002: 136).

Nonetheless, SIA and other international airlines are facing a number of significant challenges that
threaten their profitability and survival (The new millennium has already witnessed the bankruptcy
of several airlines such as SwissAir and Northwest Airlines.) These include the entry of low -cost
carriers (such as JetStar Asia and Tiger Airways in Asia), the escalating cost of fuel and global
terrorism.

SIAs’ service, operations and brand have been the subject of widespread admiration. There has been,
however, no systematic investigation on how the company's internal communication and training
practices help it to consistently deliver on its brand promise and maintain its premium positioning in
the cutthroat aviation business. 3 This paper is possibly the first attempt to answer this question.

METHOD

This study was conducted from May to July 2006 and involved face-to-face interviews with senior
managers of SIA's People Networks and Cabin Crew Training departments. In addition, the researcher
observed the proceedings of a course (called ‘The Magic of SOAR’) conducted by the Cabin Crew
Training department for cabin crew trainees. These interviews and observations were supplemented
with analysis of corporate presentations, SIA's website and corporate publications as well as
conversations with cabin crew trainees at the SIA Training School in July 2006. The grounded theory
method (Glaser and Straus, 1967) was used in analyzing the interviews, observations and
communication materials. The researcher's analysis was validated by the vice-president of the People
Networks department and the senior manager of the Cabin Crew Training department.

FINDINGS
Infusing Corporate Values

SIA's relentless communication of its core values reflects their strategic status in the company's
internal communication and training programs. Accordingly, the company's six core values are
communicated to all employees at four different ‘touch points’ in their tenure: when they first join
the company, when they attend training programs, when they attend corporate events and through
corporate communication channels such as Outlook.

When non-cabin crew employees first join SIA, they undergo an induction program that includes a
segment on the company's core values. In addition to showing new employees the SIA core values
video, the trainers use actual cases to explain what it means to adopt the core values at the workplace,
thus showing how these values can help employees to convey and live the brand promise. Core values
are also reiterated during ongoing training programs such as the New Managers’ Program for newly
promoted managers and team-building courses. The company's senior managers (including the
Chairman and CEO) also harp on the importance of living the core values when they speak at major
events such as the Long Service Awards ceremony and other company functions. According
to Cheney (1983), senior executives play a crucial role in influencing and persuading employees to
identify with the corporation and develop a distinctive corporate identity. The core values are also
printed on the second page of each issue of Outlook magazine and each employee is given a pocket-
sized copy of the core values statements.

By incorporating these core values into employees’ key touch points, SIA aims – over time – to infuse
them into employees to the extent that they ‘live’ these values. And when they do, ‘customers are
much more likely to experience the company in a way that's consistent with what you’ve promised’
(Mitchell, 2002: 100).

SIA has an evaluation system in place to ensure that core values are aligned with behavior. In fact,
demonstration of behavioral alignment with the company's core values is one of the performance
indicators in the employee's annual performance appraisal. When there are shortfalls, the supervisor
(in consultation with the employee) will recommend remedial activities or provide additional
supervision. The performance of crew members is measured using an on-board assessment (OBA)
which is carried out by a more senior crew member on the same flight. Significantly, the OBA
incorporates performance indicators that reflect the company's core values, such as service orientation
and product knowledge (pursuit of excellence), safety and security (safety), and work relationship
and people management (teamwork). (Heraclius et al., 2006). The OBA is reinforced by a strong
sense of collective destiny which developed historically from SIA's early days when its employees
knew that the Singapore state – its majority owner – would not subsidize the airline to keep it
financially viable. The company's evaluation and reward system sustains this feeling by encouraging
peer pressure to perform (Heraclius et al., 2006).

Singapore Airlines is a global company dedicated to providing air transportation services of the
highest quality and to maximizing returns for the benefit of its shareholders and employees.

The Group remains fully committed Contents to its multi-pronged approach to address structural
changes that have been taking place in the industry, through a portfolio of airlines serving both full-
service and budget airline segments of the market, a multi-hub strategy, the pursuit of adjacent
business opportunities, and ongoing enhancement of premium products and services.

Singapore Airlines: managing human resources

Service employees are a key input for delivering service excellence andproductivity, both of which
can be important sources of competitive advantage. Yet, among the most demanding jobs in service
organizations are these so-called frontline jobs where employees are expected to be fast and efficient
at executing operational tasks, as well as friendly and helpful in dealing with their customers.
Therefore, it is a challenge for service firms to get their human resource (HR) management right, and
most successful service organizations have a firm commitment to effective HR management,
including recruitment, selection, training, motivation and retention of employees. It is probably harder
for competitors to duplicate high performance human assets than any other corporate resource. From
a service organization’s perspective, the service level and the way service is delivered by the front
line can be an important source of differentiation as well as competitive advantage. In addition, the
strength of the customer-front-line employee relationship is often an important driver of customer
loyalty. Singapore Airline’s generic strategy and supporting capabilities Singapore Airlines (SIA) has
achieved the holy grail of strategic success: sustainable competitive advantage. Even though the
airline industry is extremely challenging, given its disastrous business cycle, overcapacity, difficulty
of differentiation, high-risk profile and structural unattractiveness, SIA has consistently outperformed
its competitors throughout its three-and-a-half decade history. One key element of SIA’s competitive
success is that it manages to navigate skilfullybetween poles that most companies think of as distinct:
delivering service excellence in accost-effective way, at cost levels so low that they are comparable
to those of budget airlines. A key challenge of implementing business-level strategies, such as
effective differentiation at SIA combined with superior levels of operational efficiency, is the
effective alignment of functional strategies such as HR, marketing, or operations with the business
level strategy. Both superior quality and high levels of efficiency have been part of the goals and
objectives of SIA since its founding, which have been to:

􀂃 deliver the highest quality of customer service that is safe, reliable and Economical;

􀂃 generate earnings that provide sufficient resources for investment and Satisfactory returns to
shareholders;

􀂃 adopt HR management practices company-wide that attract, develop, motivate and retain
employees who contribute to the company's objectives; and

􀂃 maximize productivity and utilization of all resources.

S2 © Emerald Group Publishing Limited

Managing people effectively to deliver sustained service excellence

Human assets are crucially important to service firms due to the inherent characteristics of the service
industry, and HR management practices and the resulting quality of human resources are difficult for
competitors to imitate. Service is a core part of the product and front-line staff tend to be the most
visible element to consumers, hence significantly influencing service quality.

SIA’s Singapore Girl has become synonymous with the airline and the personification of quality
service while most other airlines have not managed to “brand” and promote their cabin crew as
successfully. Further, from a customer experience point of view, consumers often see front-line staff
as the firm itself. Front-line staff at SIA are empowered to make appropriate decisions on customer
service delivery and take corrective actions as needed for service recovery. Lastly, the front-line staff
and service is a core part of the brand, and the service experience informs customer perceptions on
whether the brand promise gets delivered. SIA places heavy emphasis on all aspects of selection,
training and motivation especially for its front-line staff.

The following five interrelated elements inherent in SIA’s HR strategy, along with leadership and
role modelling by top management, play a key role in SIA’s ability to deliver its business strategy of
service excellence in a cost effective way:
1. Stringent selection and recruitment processes.

2. Extensive investment in training and re-training.

3. Successful service delivery teams.

4. Empowerment of frontline staff to control quality.

5. Motivating staff through rewards and recognition.

Stringent selection and recruitment processes

HR strategy begins with recruitment, where SIA adopts a highly rigorous and strict selection process.
Cabin crew applicants are required to meet a multitude of criteria starting with an initial screening
looking at age ranges, academic qualifications and physical attributes. After these baseline
requirements, they undertake three rounds of interviews, uniform checks, a water confidence test, a
psychometric test and even attend a tea party. From the 16,000 applications received annually, only
some 500 to 600 new cabin crew are hired to cover turnover rates of 10 per cent, including both
voluntary and directed attrition.

After the initial training, new crew are carefully monitored for the first six months of flying through
monthly reports from the in-flight supervisor during this probationary period. Usually around 75 per
cent are confirmed for an initial five-year contract, some 20 per cent have their probation extended,
and the rest leave the company. Despite the stringent procedures and strict rules about appearance
and behaviour, many educated young people around the region apply to join SIA due to the perceived
social status and glamour associated with SIA’s cabin crew. SIA’s reputation as a service leader in
the airline industry and an extensive and holistic developer of talent enables it to have its pick of
applicants. Many school leavers and graduates view SIA as a desirable company to work for and as
an opportunity to move to more lucrative jobs in other companies after having worked with SIA for
a few years.

“SIA places heavy emphasis on all aspects of selection, training and motivation especially for its
front-line staff.”

© Emerald Group Publishing Limited 3

Extensive investment in training and retraining Even though training is often emphasized as a key
element of success in service industries, SIA remains the airline with the highest emphasis on this
aspect. Newly recruited cabin crew are required to undertake intensive four-month training courses –
the longest and most comprehensive in the industry. Flight crew are also required to embark on 29
months of comprehensive “on-line” training before any promotion to first officer.

SIA’s training aims to enable cabin crew to provide gracious service reflecting warmth and
friendliness while maintaining an image of authority and confidence in the passengers' minds.
Continuous training and retraining has been vital to SIA in sustaining service excellence by equipping
staff with an open mindset, to accept change and development and to deliver the new services SIA
introduces regularly. Building high-performance service delivery teams Effective teams are often a
pre-requisite to service excellence. In view of this, SIA aims to create “esprit de corps” among its
cabin crew. The 6,600 crew members are formed into teams of 13 individuals where team members
are rostered to fly together as much as possible, allowing them to build camaraderie and better
understand each other’s' personalities and capabilities. The team leader learns about individuals’
strengths and weaknesses and acts as a counsellor to whom they can turn to for help or advice. There
are also “check trainers” who oversee 12 to 13 teams and often fly with them to inspect performance
and generate feedback that aids the team's development.

Empowerment of front-line staff to control quality the culture of most successful service firms
contains stories and myths of employees effectively recovering failed transactions, walking the extra
mile to make a customer's day, or helping clients avert disaster. Employees need to feel empowered
in order to expend discretionary effort. It is pertinent that employees are able to make decisions
independently as front-line staff frequently have to handle customers on their own since it is not
feasible or even desirable for managers to constantly monitor employees’ actions. Empowerment of
the front line is especially important during service recovery processes.

Motivating staff through rewards and recognition Rewards and recognition is one of the key levers
that any organization can use encourage appropriate behaviour, recognize excellence, and emphasize
both positive as well as undesirable practices.

SIA employs various forms of reward and recognition including interesting and varied job content,
symbolic actions, performance-based share options, and a significant percentage of variable pay
components linked to individual staff contributions and company's financial performance. The
numerous international accolades received by the airline over the years, including “best airline” and
“best cabin crew service”, serve as further sources of motivation.

Implications

For three-and-a-half decades, SIA has managed to achieve what many others in the aviation industry
can only dream of, cost-effective service excellence, and sustained superior performance.
Understanding the underpinnings of SIA’s competitive success has important implications for other
organizations.

4 © Emerald Group Publishing Limited

A first key implication concerns strategic alignment, in particular aligning HR practices to a

company's competitive strategy. This is an important aspect of the ESCO framework of strategic
alignment that suggests that for a company to be successful, the elements of environment, strategy,
capabilities, and organization must be closely aligned. In this context, HR management is a key part
of the organization dimension, which should deliver the capabilities that support a company's strategy.

At SIA, the HR management practices enable the development of service excellence, customer
orientation, adaptability and cost consciousness capabilities, that in turn support the dual generic
strategy of differentiation and low cost, which in turn is the appropriate strategy for the environment
of airlines. This poses important questions for the leadership of any organization, namely: “Given
what is happening in our environment, what should our strategy be?” And second, “What specific
capabilities must support our strategy, and how can we align the organization (including HR
practices) to deliver these capabilities?”

A second set of implications concerns specific HR practices such as reward and evaluation processes,
and training and development. One common issue in many organizations is a misalignment of the
reward systems with expected behaviour. For example companies rewarding employees based on
individual performance yet hoping for teamwork and information sharing. At SIA, the reward and
evaluation system is fully aligned with expected behaviours.

Further, with regard to training and development of employees, many companies make the error of
viewing training as a cost rather than as an investment; and of those that view it as an investment,
many limit the training to technical aspects of the job rather than aiming to develop employees more
holistically as at SIA. The SIA experience highlights how training and development should be
employed in order to achieve a holistically developed workforce that can effectively support the
company's strategy. Key questions for leaders therefore are:

􀂃 What sort of behaviours and attitudes do our reward and evaluation systems encourage?

􀂃 Are these aligned with what is needed to support our strategy?

􀂃 Do we train and develop our people in a way that develops the right capabilities to support our
strategy?

􀂃 Do we go beyond technical training to address attitudes and ways of thinking?

No organization can stand still. The recent socio-economic crises at the macro-level and the
emergence of Asian budget carriers at the industry level mean that SIA not only needs to sustain its
focus on achieving cost-effective service excellence, but also re-examine and re-invent some
ingredients of its recipe for success.

October 2008.

This is a shortened version of “Managing human resources for service excellence and cost
effectiveness at Singapore Airlines”, which originally appeared in Managing Service Quality,
Volume 18 Number 1, 2008.

The authors are Jochen Wirtz, Loizos Heracleous and Nitin Pangarkar.

The impact of aviation-based teamwork training on the attitudes of health-care professionals

Background
Both the Institute of Medicine and the Agency for Healthcare Research and Quality suggest patient
safety can be enhanced by implementing aviation Crew Resource Management (CRM) in health care.
CRM emphasizes six key areas: managing fatigue, creating and managing teams, recognizing adverse
situations (red flags), cross-checking and communication, decision making, and performance feedback.
This study evaluates participant reactions and attitudes to CRM training.

Study design
From April 22, 2003, to December 11, 2003, clinical teams from the trauma unit, emergency
department, operative services, cardiac catheterization laboratory, and administration underwent an 8-
hour training course. Participants completed an 11-question End-of-Course Critique (ECC), designed
to assess the perceived need for training and usefulness of CRM skill sets. The Human Factors Attitude
Survey contains 23 items and is administered on the same day both pre- and posttraining. It measures
attitudinal shifts toward the six training modules and CRM.

Results
Of the 489 participants undergoing CRM training during the study period, 463 (95%) completed the
ECC and 338 (69%) completed the Human Factors Attitude Survey. The demographics of the group
included 288 (59%) nurses and technicians, 104 (21%) physicians, and 97 (20%) administrative
personnel. Responses to the ECC were very positive for all questions, and 95% of respondents agreed
or strongly agreed CRM training would reduce errors in their practice. Responses to the Human Factors
Attitude Survey indicated that the training had a positive impact on 20 of the 23 items (p < 0.01).

Conclusions
CRM training improves attitudes toward fatigue management, team building, communication,
recognizing adverse events, team decision making, and performance feedback. Participants agreed that
CRM training will reduce errors and improve patient safety.
 CHAPTER - 3
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY

RESEARCH DESIGN:

The purpose of the methodology is to design the research procedure. This includes the overall design,
the sampling procedure, the data collection method and analysis procedure.
Marketing research is the systematic gathering recoding and analyzing of data about problem retaining
to the marketing of goods and services.
The essential purpose of marketing research is to provide information, which will facilitate the
identification of an opportunity of problem situation and to assist manager in arriving at the best possible
decisions when such situations are encountered.
Basically there are two types of researches, which according to their applicability, strength, weaknesses,
and requirements used before selecting proper type of research, their suitability must be seen with
respect to a specific problem two general types of researches are exploratory and conclusive.

1. Research design for exploratory or formulative studies

• In this type of design, a vague problem is selected and understood and is then followed by an
exploratory research to find a new hypothesis and then carrying out conclusion research decisions
to finally get new ideas.
• Aims at finding a new hypothesis.
• Individual surveys, referring to secondary sources of data etc. play an important role in such
research designs.
• Reviewing related literature, following or surveying people having practical experience in the
problem related field act as very important and most commonly used methods by an exploratory
researcher.

2. Research design for conclusive studies

Also referred to as the research design for the descriptive studies and is further divided as follows

a. Case Study method –

• Finds extensive use in commerce and industry.
• Very respectable method of teaching and research in management.
• Helps greatly in knowing the causes and the results of the incident of the phenomenon.
 b. Statistical method –
• Also trying to find its place in commerce and industry.
• Act as method of correlation and regressions, analysis, chi square etc.
• Has been made very rigorous and sophisticated by coming up of the computers.

3. Research design for experimental studies –

• Explains the structure of an experiment.
• Involve plans for the testing of the causal hypothesis.
• Decides the number of observations to be taken and also the order in which experiments are to
be carried out.
• Which randomization method to be used.
• Which mathematical model to be used for explaining the experiment.

This research design can be further categorized into the following –

1. Informal experimental design –
• After only design.
• After only with control design.
• Before and after without control design.
• Before and after with control design.

2. Formal experimental design –

• Completely randomized design.
• Randomized block design.
• Latin square design.
• Factorial design.

The type of research here is “Conclusive Research Design”. This kind of design is used for more precise
investigation or of developing the working hypothesis from an operational point of view. It has inbuilt flexibility,
which is needed because the research problem, broadly defined initially, is transformed into one with more
precise meaning in exploratory studies, which in fact may necessitate changes in research procedure for
gathering relevant data.
 The characteristic features of research are as follows: –

 Flexible Design
 Non-Probability Sampling Design
 No pre-planned design for analysis
 Unstructured instruments for collection of data
 No fixed decisions about the operational procedures

Sample Size

Sample size refers to the numbers of respondents researcher have selected for the survey.

I have selected 300 sample units from market and individual customers.

Sampling Technique

The sample design provides information on the target information and final sample sizes. I used
conveyed convenient sampling surveyed in research.

Data collection tool

I have used Questionnaire, as the research instrument to conduct the market survey. The questionnaire
consisted closed ended questions designed in such a way that it should gather maximum information possible.

The questionnaire was a combination of 15 questions. If choices are given it is easier for the respondent to
respond from the choices rather they think and reply also it takes lesser time. Because the keep on responding
and one has tick mark the right choice accordingly.

Data was collected through two sources:

Primary Source: Primary data was collected directly from the customers through a questionnaire.

Secondary Source: The secondary source was the company website and my colleagues.
Method of sampling

Convenient sampling is used to do sampling as all the customers in the sites are Surveyed..

Data Analysis

Data analysis was done mainly from the data collected through the customers. The data collected from
secondary sources is also used to analyse on one particular parameter.

Qualitative analysis was done on the data collected from the primary as well as secondary

Sources.
 CHAPTER-4
FINDINGS AND
ANALYSIS
 Findings and Analysis
Indian airlines has increased its productivity only because of good leadership and Singapore airlines
has incorporated innovative methods to boost the morale of the crew members. This accounts for good
leadership

We have learned to know Singapore Airlines as a truly innovative company that leads the field in its
industry. Its strong leadership and the culture it encourages, combined with a versatile innovation
process are important factors in sustaining this advantage.

SIA’s Singapore Girl has become synonymous with the airline and the personification of quality
service while most other airlines have not managed to “brand” and promote their cabin crew as
successfully. Further, from customer experience point of view, consumers often see front-line staff as
the firm itself. Front-line staff Asia are empowered to make appropriate decisions on customer service
delivery and take corrective actions as needed for service recovery. Lastly, the front-line staff and
service is a core part of the brand, and the service experience informs customer perceptions on
whether the brand promise gets delivered. SIA places heavy emphasis on all aspects of selection,
training and motivation especially for its front-line staff. The following five interrelated elements
inherent in SIA’s HR strategy, along with leadership and role modelling by top management, play a
key role in SIA’s ability to deliver its business strategy of service excellence in a cost effective way:

1. Stringent selection and recruitment processes.

2. Extensive investment in training and re-training.

3. Successful service delivery teams.

4. Empowerment of frontline staff to control quality.

5. Motivating staff through rewards and recognition.

Stringent selection and recruitment processes

HR strategy begins with recruitment, where SIA adopts a highly rigorous and strict selection process.
Cabin crew applicants are required to meet a multitude of criteria starting with an initial screening
looking at age ranges, academic qualifications and physical attributes. After these baseline
requirements, they undertake three rounds of interviews, uniform checks, a water confidence test, a
psychometric test and even attend area party. From the 16,000 applications received annually, only
some 500 to 600 new cabin crew are hired to cover turnover rates of 10 per cent, including both
voluntary and directed attrition.

After the initial training, new crew are carefully monitored for the first six months of flying through
monthly reports from the in-flight supervisor during this probationary period. Usually around 75 per
cent are confirmed for an initial five-year contract, some 20 per cent have their probation extended, and
the rest leave the company. Despite the stringent procedures and strict rules about appearance and
behavior, many educated young people around the region apply to join SIA due to the perceived social
status and glamour associated with SIA’s cabin crew. SIA’s reputation as a service leader in the airline
industry and an extensive and holistic developer of talent enables it to have its pick of applicants. Many
school leavers and graduates view SIA as a desirable company to work for and as an opportunity to
move to more lucrative jobs in other companies after having worked with SIA for a few years. Extensive
investment in training and retraining Even though training is often emphasized as a key element of
success in service industries, SIA remains the airline with the highest emphasis on this aspect. Newly
recruited cabin crew are required to undertake intensive four-month training courses – the longest and
most comprehensive in the industry. Flight crew are also required to embark on 29 months of
comprehensive “on-line” training before any promotion to first officer. IA’s training aims to enable
cabin crew to provide gracious service reflecting warmth and friendliness while maintaining an image
of authority and confidence in the passengers'minds.Continuous training and retraining has been vital
to SIA in sustaining service excellence by equipping staff with an open mindset, to accept change and
development and to deliver the new services SIA introduces regularly. Building high-performance
service delivery teams Effective teams are often a pre-requisite to service excellence. In view of this,
SIA aims to create “esprit de corps” among its cabin crew. The 6,600 crew members are formed into
teams of 13 individuals where team members are roistered to fly together as much as possible, allowing
them to build camaraderie and better understand each other’s personalities and capabilities. The team
leader learns about individuals’ strengths and weaknesses and acts as counselor to whom they can turn
to for help or advice. There are also “check trainers” who oversee 12 to 13 teams and often fly with
them to inspect performance and generate feedback that aids the team's development. Empowerment of
front-line staff to control quality the culture of most successful service firms contains stories and myths
of employees effectively recovering failed transactions, walking the extra mile to make a customer's
day, or helping clients avert disaster. Employees need to feel empowered in order to expend
discretionary effort. It is pertinent that employees are able to make decisions independently as front-
line staff frequently have to handle customers on their own since it is not feasible or even desirable for
managers to constantly monitor employees’ actions. Empowerment of the front line is especially
important during service recovery processes. Motivating staff through rewards and recognition Rewards
and recognition is one of the key levers that any organization can use encourage appropriate behavior,
recognize excellence, and emphasize both positive as well as undesirable practices. IA employs various
forms of reward and recognition including interesting and varied job content, symbolic actions,
performance-based share options, and a significant percentage of variable pay components linked to
individual staff contributions and company's financial performance. The numerous international
accolades received by the airline over the years, including “best airline” and “best cabin crew service”,
serve as further sources of motivation.ImplicationsFor three-and-a-half decades, SIA has managed to
achieve what many others in the aviation industry can only dream of, cost-effective service excellence,
and sustained superior performance. Understanding the underpinnings of SIA’s competitive success has
important implications for other organizations.
 CHAPTER-5
Suggestions
 Suggestions
I would suggest that good leadership can boost the spirit of employees and thus result in good
productivity, so it must be encouraged in all sectors.

Extensive investment in training and retraining

Even though training is often emphasized as a key element of success in service industries, SIA remains
the airline with the highest emphasis on this aspect. Newly recruited cabin crew are required to
undertake intensive four-month training courses – the longest and most comprehensive in the industry.
Flight crew are also required to embark on 29 months of comprehensive “on-line” training before any
promotion to first officer. SIA’s training aims to enable cabin crew to provide gracious service reflecting
warmth and friendliness while maintaining an image of authority and confidence in the passengers'
minds.

Building high-performance service delivery teams

Effective teams are often a pre-requisite to service excellence. In view of this, SIA aims to create “esprit
de corps” among its cabin crew. The 6,600 crew members are formed into teams of 13 individuals
where team members are roistered to fly together as much as possible, allowing them to build
camaraderie and better understand each others' personalities and capabilities. The team leader learns
about individuals’ strengths and weaknesses and acts as a counsellor to whom they can turn to for help
or advice. There are also “check trainers” who oversee 12 to 13 teams and often fly with them to inspect
performance and generate feedback that aids the team's development.

Empowerment of front-line staff to control quality

The culture of most successful service firms contains stories and myths of employees effectively
recovering failed transactions, walking the extra mile to make a customer's day, or helping clients avert
disaster. Employees need to feel empowered in order to expend discretionary effort. It is pertinent that
employees are able to make decisions independently as front-line staff frequently have to handle
customers on their own since it is not feasible or even desirable for managers to constantly monitor
employees’ actions. Empowerment of the front line is especially important during service recovery
processes.

Motivating staff through rewards and recognition

Rewards and recognition is one of the key levers that any organization can use encourage appropriate
behaviour, recognize excellence, and emphasize both positive as well as undesirable practices.
 CHAPTER-6
CONCLUSION
 Conclusion
Good leadership can evoke good performance from employees in all sectors, it must be encouraged
and proper initiatives should be taken.
Singapore Airlines (SIA) has achieved the holy grail of strategic success: sustainable competitive
advantage. Even though the airline industry is extremely challenging, given its disastrous business
cycle, overcapacity, difficulty of differentiation, high-risk profile and structural unattractiveness, SIA
has consistently outperformed its competitors throughout its three-and-a-half decade history.

One key element of SIA’s competitive success is that it manages to navigate skilfully between poles
that most companies think of as distinct: delivering service excellence in a cost-effective way, at cost
levels so low that they are comparable to those of budget airlines. A key challenge of implementing
business-level strategies, such as effective differentiation at SIA combined with superior levels of
operational efficiency, is the effective alignment of functional strategies such as HR, marketing, or
operations with the business level strategy.

Both superior quality and high levels of efficiency have been part of the goals and objectives of SIA
since its founding, which have been to:

▪ deliver the highest quality of customer service that is safe, reliable and economical;
▪ generate earnings that provide sufficient resources for investment and satisfactory returns to
shareholders;
▪ adopt HR management practices company-wide that attract, develop, motivate and retain
employees who contribute to the company's objectives; and
▪ maximize productivity and utilization of all resources.

At SIA, the HR management practices enable the development of service excellence, customer
orientation, adaptability and cost consciousness capabilities, that in turn support the dual generic
strategy of differentiation and low cost, which in turn is the appropriate strategy for the environment
of airlines. This poses important questions for the leadership of any organization, namely: “Given what
is happening in our environment, what should our strategy be?” And second, “What specific
capabilities must support our strategy, and how can we align the organization (including HR practices)
to deliver these capabilities? A second set of implications concerns specific HR practices such as
reward and evaluation processes, and training and development. One common issue in many
organizations is a misalignment of the reward systems with expected behaviour. For example
companies rewarding employees based on individual performance yet hoping for teamwork and
information sharing. At SIA, the reward and evaluation system is fully aligned with expected
behaviours.Further, with regard to training and development of employees, many companies make
the error of viewing training as a cost rather than as an investment; and of those that viewit as an
investment, many limit the training to technical aspects of the job rather than aiming to develop
employees more holistically as at SIA. The SIA experience highlights how training and development
should be employed in order to achieve a holistically developed workforce that can effectively support
the company's strategy.
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