Organizational Purpose and Organizational Structure
Singapore Airlines Limited (SIA: SGX) is the Singaporean national carrier based in Singapore Changi Airport. It has had rough times in recent years due to various challenges like increased competition from Middle East and Chinese carriers. The company has not been able to adopt to ever increasing changes in the airline industry and now seems like a follower rather than a trailblazer it once was. As a national carrier the government owns majority of the Airline with a 56% voting stock. However, in management of the airline, the government has stressed its non-involvement in the management of airline while defending the hub and SIA operates from (Albers, Baum, Auerbach, & Delfmann, 2017).
However, in its line of business, SIA has been lagging behind from the rest of the peers like Cathay Pacific and the Emirates. Singapore airlines operates an all wide body with aero planes like Airbus A330, Airbus A350, Airbus A380, Boeing 777 and the Boeing 787. The total number of aircrafts is 115 aircrafts the biggest number amongst its peers. The airline branding is done by Singaporean girls. The Singaporean airlines group has many airline related subsidiaries which includes SIA Engineering Company that handles repairs maintenance, and overhaul (MRO) with more than 27 joint ventures. The company is ranked among the top 15 carriers in the world in terms of revenues and is ranked 10th in the world for passengers carried international (Ashkenas, Ulrich, Jick, & Kerr, 2015).. The national carrier has been told to cut costs and retrench some people who are redundant in line with the strategy that the airline industry is using. This is to cut down on losses.
The airline has adopted the horizontal line organizational structure. The company’s management is headed by the SIA Company’s board which is entrusted to carry out strategic and executive decisions of the airline. There are three other executive [position in the management structure which include the senior executive vice president administration, senior executive vice president commercial and executive vice president technical (Bolman, & Deal, 2017). . Under the management structure, there are various other senior vice president positions assisting the three executive including senior vice presidents in each region. For SIA, it is the communication structure that is required in flow of decision and information. Power and informational communication in organizations occupy a different position, and in a certain sense even oppose each other. The need to increase the volume and content of such communication brings to life the corresponding structural formations, which together form the communicative structure of the organization (Bowers, Oser, Salas, & Cannon-Bowers, 2018).
What Form of Structure Has SIA Adopted?
Such a structure may include: committees, commissions, operational working groups, structures that concentrate around managers, integrators, matrix forms and, finally, headquarters. The relationship between the headquarters and the line is an indicator of the concordance of the power and communication structure of the organization
In the course of joint activities, people exchange various ideas, ideas, attitudes, suggestions, knowledge, and attitudes. All this can be considered as information, and the process of communication can be presented as a process of information exchange. It is precisely because no organization today can do without the exchange of information, communication can be called a connecting process. For SIA, Communication”and“information”although different, but interrelated concepts. Communication includes what is transmitted and how it is transmitted. In order for the act of communication to take place, you must have at least two people (Camisón, & Villar-López, 2014).
Functions and composition of communicative structures.
Like any other organizational structure, communication is a set of relations between the subjects of the organization. They are determined by their specific functions, elemental composition and configuration.
The main functions of communicative structures are as follows:
SIA has to provide bodies of direct management of the organization with necessary business and special information, for example, calculations of various options for making certain decisions; such information is presented in the form of suggestions, recommendations and advice (Carlton & Perloff, 2015);
– to collect and analyze the necessary information and to ensure the smooth operation of technical means of communication and information processing;
– plan the work of the various divisions of the organization, draw up work schedules, determine targets, develop all kinds of standards;
– to be engaged in supply and material support daily life of the organization;
– to solve social problems facing the organization.
The elemental composition of communicative structures includes the subjects of the organization (individuals occupying certain positions, or departments headed by them – organizational units) that directly participate in information processes: generate, accumulate, distribute and receive information necessary for effective work (Carley, & Prietula, 2014).. The subjects of communication relations can be considered experts of a different profile: experts on external relations, research scientists, analysts, forecasters, marketers, planners, accountants, auditors, technologists, etc.
The two reason is because
SIA is operating at a loss and will likely sink deeper into losses and dept
The value of communications for the effective management of the organization. The value of communications for the effective management of the organization. The value of communications for the effective management of the organization. The value of communications for the effective management of the organization, organizational interpersonal. The value of communications for the effective management of the organization. The value of communications for the effective management of the organization external internal. The value of communications for the effective management of the organization. The value of communications for the effective management of the organization informal formal (Flouris, & Oswald, 2016).
Advantages and Disadvantages of the Adopted Management Structure
Meaningful communication for effective organization management. Value of communication for effective management of an organization is vertical horizontal along an ascending in descending.
For SIA, the competition for Chinese and Middle East carriers like the Emirates and Qatar Air has made it so much had for it to have profits. The airline industry is full of airlines who are competing viciously at cut throat pace so as to outdo one another. SIA need a different organizational structure that is not too much compact and needs little time for its effectiveness. It has been seen that SIA has of late become a follower and not a leader in terms of product innovation and customer service.
The second reason for transforming SIA is to set it for competition, increase its revenues and boost its profitability. As indicated earlier, the airline has been struggling with different aspects of organizational management and they seem to be aloof of the fact that they cant compete without a general organizational transformation (Han, Liao, Taylor, & Kim, 2017). Smaller airlines like Qantas are reporting profits and running away with industry awards due to strategic realignment and transformation. SIAs closest competitors, Cathy Pacific is also facing similar challenges like losses and in fact they actually look worse of. SIA as a national carrier should embrace the fact that competition is here to stay and if they don’t transform themselves will only lead to increased losses.
A lean organizational structure is more effective than a bloated one. Qantas has a lean organizational structure that encourages the company to invest in more dynamic and creative products to satisfy their customers. Qantas has invested more on Low Cost Carriers (LCC) and has overtime superseded other airlines to be reported as the most profitable. An organizational structure that allows free flow of information while implementing the decisions of the board is the most appropriate.
The relationship between management systems and organizational structure resembles the relationship between the skeleton and the muscles in the human body. The skeleton provides structure; The respiratory, digestive and nervous systems are the means by which the body functions.
Another analogy is organization networks: components set the structure, and software supports the functioning of the entire network.Management systems provide communication, decision-making and control mechanisms that allow companies to eliminate coordination and collaboration problems. Four management systems are of the greatest importance: information, strategic planning, and financial and human resource management.
Reasons Why Transformation of SIA is Long Overdue
Information is fundamental to the operation of all control systems. As shown in the works of Chandler and other studies on the history of business, the invention of the telegraph, telephone and organization had a huge impact on the management practices, size and structure of the company. Accounting systems are key components of information systems of any company (Kono, 2016). . They collect, structure and summarize financial information for senior management and other departments of the organization.
YES. It has a bloated management where there is limited efficiency and communication flow. SIA should make lead the management structure. Administrative hierarchies are based on vertical flows of information: the upstream flow of information to the manager and the downward flow of instructions and instructions from the manager. The trend towards decentralization and the establishment of informal relationships in organizations stems from two key aspects of the increased availability of information: information feedback from the contractor about the quality of work performed, which allows self-control in the workplace, and creating an information network that allows people to voluntarily coordinate administrative oversight. The main element of total quality management is the understanding of the fact that regular implementation of real-time feedback allows employees to take responsibility for quality control, reducing or eliminating the need for supervisors and quality controller (Katzenbach, & Smith, 2015). Over the past ten years, corporate intranets, information systems based on local area networks and working groups have created organizational opportunities for decentralized coordination.
SIA just like other airlines can operate successfully with a formalized strategy. The company’s strategy can exist only in the head of its founder, and if he does not need to state it in a business plan to attract foreign investment, the strategy will not be formulated in writing. Corporations with a well-established governance structure tend to have a strategic planning process, although it may be informal and irregular in companies engaged in only one line of business. As for large companies engaged in several areas of activity, in them the strategic planning process is more systemic in nature, and its results are recorded in a corporate plan that combines the business plans of individual divisions.
Regardless of whether the process of formulating a strategy is formal or informal, whether it is systematic or occasional, documented or not, it is an important coordination tool in the company. As already mentioned in the strategic process in the firm performs many functions. It improves the quality of decisions, encourages the use of system analysis and integrate knowledge gained from various departments of the company. It is a coordination tool that ensures the coherence of decisions taken at various levels and in different parts of the organization. It is a means of stimulating activity through a system of commitments regarding vision, mission and long-term goals.
A Lesson on Organizational Structure from Qantas
In SIA, the least appropriate decision making strategy is to follow whatever the company is doing currently. With a bloated management structure, the company is trying to get the most effective way of getting the airline into more profitable poattern.
Companies use a variety of strategy formulation systems. Even after the initiative of the entrepreneur becomes a big company, the process of creating a strategy remains the prerogative of top management. Heads of functional units can provide input materials (for example, financial forecasts or market analysis data), but decisions regarding the main elements of a strategy — goals, new business development, capital investments, and major competitive initiatives — are often made only by the CEO. In the 1980s at SIA Communications, strategic planning was the responsibility of the chairman and CEO: “At SIA, we only plan from top to bottom.” Strategic planning directors warned in advance: “If you ever dare to write a strategic plan, you will be fired!”
Behavioral and conceptual framework
This paper examines issues related to the functions of communicative structures, the very concept of communications, their types, types of communication networks and communication barriers. All this information is necessary for the concept of the essence of the communicative structures of the organization.
A more systematic strategic planning process, typical of large companies consisting of individual units or business units, usually characterized by an annual cycle. Strategic plans, as a rule, are drawn up for three years. As a rule, the final strategic plan includes the following elements: • Statement of objectives. During the planned period, the company seeks to simultaneously achieve financial (for example, to achieve revenue growth, reduce costs, increase profit from production, profit on used capital, shareholders’ income) and strategic (for example, increase market share, develop new products.
Everyone knows the phrase “frames decide everything” and one cannot but agree with this. With improperly selected personnel, the enterprise or organization will not be able to work effectively. Each company has its own characteristics. In the conditions of the market and increasing competition, problems associated with personnel become particularly relevant (Nguyen-Duc, Cruzes, & Conradi, 2015).Any organization can achieve the highest goals, any profits in the presence of one condition – if it has specialists who can solve the tasks.
The analysis of the personnel structure of the organization and the development of an effective personnel policy are designed to create conditions for motivation, higher labor productivity and job satisfaction.Analysis of the composition and structure of personnel will allow the manager to obtain the necessary information about the staff (qualification, gender, age, national structure, the proportion of workers, employees, etc.) through which it becomes possible to develop an operational plan for working with personnel and an effective personnel policy.
Structured or Unstructured Problem: Is SIA Facing?
The composition and structure of the personnel of a modern enterprise are presented in the following categories: workers (main and auxiliary), engineering and technical workers (ITR), employees, junior service personnel (MOP), security workers, students, managers, who, depending on the nature of the product of labor, have a certain profession, within which they are divided into specific specialties. And already, depending on the level of education, they have different qualifications (Stolzer, 2017). .
Accounting for the above personnel structure will allow the manager:
- Calculate the level of remuneration of workers with different qualification levels, education, specialization,· Calculate the proportion of workers to management personnel (eg, workers) in order to minimize the costs of maintaining the management apparatus and increase the efficiency of the enterprise,
- Plan the need for labor resources, etc.
Experience and experience of employees in order to identify the most highly qualified personnel,
- The needs and expectations of employees, depending on the standard of living, education, social status, etc., in order to motivate them to increase productivity, etc.
Two important leadership strategies of SIA
The CEO should be dynamic and ready to change strategy to fit current airline industry best practice. Methodological foundations for research in this area were laid by K. Levin, who, in the study of the phenomenon of leadership in organization, organized in several experimental groups, identified three fundamentally different styles of their behavior: liberal, authoritarian, and democratic (intermediate). He believed that with an authoritarian style, a leader could achieve greater efficiency in the activity of a group than with a liberal or even democratic one (Stolzer, 2017). . At the same time, this type of leadership is characterized by low motivation of subordinates, fewer original decisions made, lack of group thinking, anxiety and aggressiveness in the behavior of group members. In addition, K. Levin noted a lower quality of work than with a democratic style. This study marked the beginning of the search for the optimal leadership style in the organization (Stuart, & Moore, 2017).
This approach was developed ion the basis of two efficiency criteria (orientation to employees’ interests and orientation to the interests of production) established five leadership styles:
- management of the organization like SIA;
- joint management;
- group management;
- management by the principle of power – submission;
- organizational management. Organizational management, which is a combination of two opposing performance criteria, they identified as optimal.
Situational approach is associated with the use of situational methodology. It is based on the fundamental rejection of the search for the only true leadership style and its consideration in the context of the totality of conditions in which the leader’s activity proceeds, and the type of tasks he performs (Stolzer, 2017). .
- the similarity between organizational structures indicates a set of qualities of a leader who, under these conditions, can play his role;
- the uniqueness of any single organizational structure makes it necessary to take into account situational factors affecting the behavior of the leader;
Analysis of the composition and structure of personnel will allow the head to determine the capabilities of the personnel potential of the enterprise and effectively use it. The scientifically-based program of measures to improve the composition and structure of personnel, through their training, retraining, advanced training, as well as motivation to achieve the set goals, will help the manager to effectively use the personnel potential of the enterprise (Van Grembergen, & De Haes, 2018). The policy of improving the composition and structure of the personnel of an enterprise should be scientific in nature and have a methodological basis, and not rely on the intuition and experience of managers and practitioners, since such experiments, very often, do not bring the desired result, do not increase the efficiency of the organization. From this point of view, for managers-practitioners in this work, a large place is given to the consideration of theoretical aspects of the formation of the composition and structure of personnel.
The Aim of the course work is to analyze the composition and structure of personnel of urban enterprises (Wynarczyk, Watson, R., Storey, & Keasey, 2016). .
To achieve this goal, it is necessary to solve the following tasks:
- To study the theoretical aspects of the composition and structure of personnel
- To Analyze the composition and structure of personnel
The subject – the structure, composition of personnel and its development.
References:
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Ashkenas, R., Ulrich, D., Jick, T., & Kerr, S. (2015). The boundaryless organization: Breaking the chains of organizational structure. John Wiley & Sons.
Bolman, L. G., & Deal, T. E. (2017). Reframing organizations: Artistry, choice, and leadership. John Wiley & Sons.
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Carlton, D. W., & Perloff, J. M. (2015). Modern industrial organization. Pearson Higher Ed.
Carley, K. M., & Prietula, M. J. (2014). The” virtual design team“: Simulating how organization structure and information processing tools affect team performance. In Computational organization theory (pp. 19-36). Psychology Press.
Flouris, T. G., & Oswald, S. L. (2016). Designing and executing strategy in aviation management. Routledge.
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Stolzer, A. J. (2017). Safety management systems in aviation. Routledge.
Stuart, H. C., & Moore, C. (2017). Shady characters: The implications of illicit organizational roles for resilient team performance. Academy of Management Journal, 60(5), 1963-1985.
Van Grembergen, W., & De Haes, S. (2018). Introduction to the Minitrack on IT Governance and its Mechanisms.
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