1. Describe what is unique about SIA’s five elements of its successful HR practices.
2. Evaluate the effectiveness of each element’s contribution toward SIA’s leadership in service excellence and cost effectiveness.
3. Despite evidence that such practices help service firms achieve higher company performance, many organizations have not managed to execute them as effectively. Why do you think that is the case?
4. Some of SIA’s HR practices would be illegal in the U.S. Is this fair competition, or are those HR practices encouraging a “race to the bottom” in terms of employee rights?
Bring in at least 5 library sources to help
Why Other Organizations Fail to Execute Effectively
SIA's HR strategy is an example of a High-Performance Work System (HPWS), yet many other service firms fail to implement such systems successfully due to several deep-seated issues (Source 3.2, 3.4):
Lack of Top Management Commitment and Consistency (Source 3.3): Successful HPWS requires years of consistent investment and commitment. Many organizations treat HR programs as isolated initiatives rather than an integrated system aligned with the core business strategy. When economic times get tough, training budgets (SIA's element 2) and reward programs (SIA's element 5) are often the first to be cut, breaking the system's effectiveness.
Failure of Horizontal Alignment: HPWS effectiveness relies on synergy between practices (e.g., intensive training must be supported by an adequate reward system). Many companies implement practices in isolation (e.g., they recruit well but fail to train extensively), which prevents the practices from creating the compound effect necessary for superior performance (Source 1.3).
Cultural and Leadership Barriers (Source 3.3): Implementing HPWS demands a culture of trust, shared vision, and delegated authority (Source 3.2). Managers in many traditional organizations are often unwilling to truly empower frontline staff (SIA's element 4) or delegate authority, undermining the system. They may also struggle to shift from rewarding individual performance to recognizing team performance (SIA's element 3).
Inability to Measure Intangibles: Service excellence relies on intangibles like empathy and attitude. Many firms lack the sophisticated measurement tools (like SIA's extensive OBAs and assessment criteria) to objectively measure these soft skills and link them directly to rewards and career progression.
Sample Answer
Singapore Airlines (SIA) maintains a competitive advantage by successfully executing a dual strategy of service excellence and cost-effectiveness, achieved through a highly distinctive and mutually supportive set of Human Resources (HR) practices.
1. Unique Elements of SIA’s Successful HR Practices
SIA's HR system is widely recognized for its integrated approach, where the five core elements reinforce the company's dual strategy. What makes them unique is the intensity and holistic application of these practices, often going far beyond industry standards to embed the service culture deeply within every employee.