Demographic, Economic & Technological Factors of Hr Planning for Airline Industry in Spore

Topics: Singapore Airlines, Singapore Changi Airport, Qantas Pages: 13 (3999 words) Published: October 9, 2011

The airline industry is by itself plays a big part in the economy. It generates 31.9 million jobs globally. (The impact of the financial crisis on labour in the civil aviation industry) It involves transportations, catering, securities, logistics, etc. As it does not work as an industry by itself, HR planning comes to be an important task.

The airline industry has generally seen success in the many aspects involved with it – service, tourism, innovations etc. Despite the terrorism setbacks, the industry has managed to bounce back on its feet and even produce a stunning display of grit in its armoury to be steadfast in its mission to uphold everyone’s safety yet delivering impeccable service.

The airline industry is vulnerable to threats posed to the environment based on Porter’s Five Forces Model (The Industry Handbook: The Airline Industry 2011) comprising of competitors, suppliers, buyers, substitutes and new entrants. One common denominator these elements have is the effect they have on costs. Cost is an important issue inherent in the industry. In an organization, Human Resources deal with how to manage costs specifically one that involves the staff. The purpose of this report is to provide an analysis of the staffing issues in the airline industry in the long run. We shall look at three factors that affect staffing in the airline industry, namely demographic, economic and technological.

In the demographic factor, we will look at how the different cultures, the different needs of global staff is taken into consideration in Human Resource planning. We will also touch on the impact of the global economy on staffing issues and when technology comes in place to replace human labour which improves the airlines’ operations. This report will show our recommendations for each of the three factors.

Overview of the Airline industry in Singapore

The airline industry is all about servicing customers. Thus, what affects customers will definitely have an impact on business. There have been terrorism attempts before but it was not until the fateful September 11, 2001 event that shook the entire industry. Since then, airport security has never been so tightly-controlled. Measures were deployed to ensure no breach of security. Safety was of utmost importance and emphasised. Customers have also grown more aware of their needs and this enables the airline industry to zoom in on what makes customers happy and satisfied.

The rapid development of technology in the 21st century has allowed the airline industry in Singapore to undergo a tidal wave of changes. Some of these changes were new such as nonstop air travel from Singapore to USA and the new types of entertainment systems provided for customers. The fierce battle between airlines in attracting and retaining customers has more segmentation of the airline industry such as budget airlines, limited-service airlines, and premium-service airlines. This shows that the airline industry in Singapore has a differentiation strategy. The use of the differentiation strategy is apparent as the airlines are introducing new entertainment on board their flights and new flight routes. There are various airlines operating in Singapore such as Singapore Airlines, Silk Air, Air Asia, Tiger Airways, Jet Star and etc. It is a matter of fact that many airlines are involved in some kind of alliance or partnership with another which shows that the airline industry in Singapore also practice a growth strategy. For an example, Singapore Airlines (SIA) has always been in the forefront of strategic alliance and partnership to provide them with more international routes.

Staffing Issues affecting Human Resource Planning

Demographic Factor

It is crucial for organisations in the airline industry to ensure that their staff are able to meet both the organisation’s goals as well as the expectations of their customers. This is due to the fact their staff are the primary...
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