Sia Structure And Its Nature Of Business Kfd 1 A Assignment

2231 words - 9 pages

1. Organization Purpose
Singapore Airlines is the world’s most awarded airline, it is also a top-class airline throughout the world. Since 2000 SIA has been named the best airline by numerous magazine and agencies. In Business Traveller USA 2017, it is named the Best Overall Airline in the World for the 27th time, it shows the commitment that SIA commits itself to its service and quality.
SIA visions itself to be an excellent company and an excellent citizen of the world by enhancing the lives of the people they touch (Singapore Ailines, 2006). It commits to arts and education to the communities, the health and welfare of Singapore’s citizens and to the people who fly using SIA (Singapore Ailines, 2006). SIA also made a strong commitment to preserving the environment and the world for future generations
SIA principle activities consist of air transportation, aero-engine overhauling services, simulator training, airport terminal services, marketing of aircraft cabin equipment, properties, aviation and general insurance and related activities. (Singapore Airlines, 2006)
2. Organizational Structure
a. Form of organization structure SIA adopted.
Based on the appendix given, it can be said that SIA adopted a functional and divisional organization structure. Its top tier management is structured based on its functional group for example, Technical, Admin and Commercial groups each headed by a Senior Executive Vice President or Executive Vice President. Its commercial group also follows a functional group structure, however the Marketing and Regions group from the Commercial group uses a divisional structure where its groups are structured based on geographical areas of responsibility for example America region, Europe region etc. each headed by a Senior Vice President.
b. 2 advantages and 2 disadvantages of this structure
The advantages of this structure for SIA can be described as below:
Functional Structure (SIA top tier management)
1. There will be accountability as each functional group is headed by an Executive Vice President or Executive President, which holds the responsibility for the functional group.
2. There will is clarity of individuals’ role and group, hence reduces the risk of coordination problems or communication issues.
Divisional Structure (SIA’s Marketing & Regions Group)
1. Assessment of each regions performance would be easier as each region is a distinct profit center.
2. Performance will be improved as there will be healthy competition of performance and results between regions.
The disadvantages of this structure for SIA can be described as below:
Functional Structure (SIA top tier management)
1. As the groups are limited to their own functional group, the managers in the functional accumulates experiences limited to their own functional groups hence may not understand or experience issues from other functional groups.
2. Staff will be protective of their own function and may end up laying the blaming game when issues arises,...

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