High Flyers Human Resource Management

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National University of Ireland, Dublin

Bachelor of Business Studies (Logistics and Supply Chain Management)

Module:

Human Resource Management (HRM2001S)

Essay Title:

High Flyers

Table of Contents

1.        Case Overview        3

1.1        Identifying the problems        4

1.2        Implications of problems        4

1.2.1        Ethical Dilemma        5

1.2.2        Loss in Productivity        5

1.2.3        High Replacement Costs        6

1.2.4        Litigation Risks        6

1.2.5        Tarnish Employer Brand Image and Reputation        6

2.        Intervention Strategies        7

2.1        Appreciative Inquiry        7

2.2        Downsizing Tactics        10

3.        Developing a HR Plan        13

3.1        Developing Employer Brand        13

3.2        Employee Engagement        15

4.        Bibliography        18

1. Case Overview

Up until 1990, Singapore operated under a Two-Airline Policy. This policy meant that only two airlines could operate in Singapore. Singapore Airlines and its only national competitor, Silvertail Airlines, had shared the duopoly in the air transport industry that was sanctioned by the Singapore government. Neither of the airlines need to come out with ideas to attract passengers and the management of the two airlines were satisfied with the current situation. However, under increasing pressure, Singapore government deregulated the air transport industry in the 1980s.

In the beginning, the changes did not really affect the duopoly. But then suddenly, the market was turned around with low cost carriers entering both the domestic and international market. This causes the share price of Silvertail to drop and Silvertail Airlines restructured its organisation. Top-heavy structures were dismantled, middle management positions removed, maintenance was outsourced, and regional branches were shut down. Hence, Silvertail managed to emerge with a youthful and innovative image to attract young and budget conscious travellers.

As a result, with the new expectations and new requirements, many of their existing frontline staff did not fit in the young and innovative image. Therefore, in a discussion between Sam the Recruitment Manager and Bobbi the Cabin Crew Director, they came up with unethical plans to force these employees to resign voluntarily.

1.1        Identifying the problems

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Figure 1 – Problems Identified (Self-Created, 2018)

1.2        Implications of problems

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Figure 2 – Problems Identified (Self-Created, 2018)

1.2.1        Ethical Dilemma

Downsizing often takes place when an organisation is reducing its organisational size and operating costs during a bad economy period. If downsizing is really required during bad economy, then dismissing these employees is acceptable. However, as per the discussion between Sam and Bobbi, they were planning to use unethical methods to force existing employees to resign voluntarily by making work conditions difficult for the older cabin crew. This is unfair and unethical as Silvertail only underwent an organisation restructure and image rebranding.

1.2.2        Loss in Productivity

Once Silvertail implements Sam and Bobbi’s idea of making work conditions tough and promoting the younger ones, the employees will start to notice these changes. Silvertail will start to see an increase in customer complaints due to poor performance from affected employees as they were unable to control their emotions during work hours. If they promote the younger ones with higher qualifications, instead of the older cabin crew who deserves the position, conflicts will start to spark in the team. The senior crew will not want to follow instructions from the young superior, and the young superior will find it difficult to assign tasks to the older cabin crew. The overall staff morale will be affected, the older cabin crew will feel degraded and thus there will be higher absenteeism, higher turnover rate and poor job performance. Their service level will drop, and it will affect the airline because people will not look at a department only but will look at a company as a whole.

1.2.3        High Replacement Costs

If people starts to leave Silvertail, more new staffs will need to be recruited to replace these older cabin crew. There will be more costs incurred for organising recruitment drives. In addition, newly recruited staff are not able to start work immediately as they will need to undergo training to prepare themselves for the job. These training costs will be expensive, and it take time to train these new employees. Silvertail will start to face tight manpower issues and they will start to reduce the number of flight because they do not have enough cabin crew. Lesser cabin crew on board will led to poorer job performance and their service level will surely dropped and affect the customer satisfaction. Silvertail will receive more customer complaints and thus it will affect the image of Silvertail.

1.2.4        Litigation Risks

Because of these unethical method of forcing older cabin crew to resign, the older cabin crew may feel they have been treated unfairly. The aggrieved employees who have left Silvertail will lodge a complaint to the Ministry of Manpower (MOM) to request for redress for unjust treatment. MOM will step in to investigate and if they found the complaint to be true, Silvertail may find themselves in investigation, and to be worse, a lawsuit as according to the Employment Act in Singapore. All these would possibly lead to social media coverage and the brand image will be affected.