Case Study Of Scoot Airlines

Q2(a) Scoot is a budget airline that provides regular medium to long haul flight at half cost as compared to existing full service carrier. There are limited budget air carriers compeititors for long haul market die to high operating cost and this makes Scoot uniqiue.
Scoot airline, a subsidiary of Singapore Airlines, meets the needs of Middle Class travellers flying regularly on medium to long haul journey. The passenger customises their travel needs, paying only the required amenities (e.g. seat preference, meals, and checked in baggage etc.) (Scoot, 2015.) Scoot is helmed by CEO Campbell Willson who uses online lmarketing tools and operations such as quirky marketing videos, informal uniforms and website. (Houston, n.d.)
However,
For example, cabin crew of Scoot Airlines are given formal training and assess yearly on set criteria in line with organization objective on content such as flight safety, security, guest interaction skills, tourism promotion, first aid/CPR, product selling and to deliver service excellence.
Lastly, the performance management system serves to rewards (motivate behaviour e.g promotion for exceptional performance) or punish (warning letter to discourage deviant behaviour such as absentee).For example, Human Resources department gives cabin crew who performs well compliment letter or issues warning letters to those who does poorly (receives complaints).
The goal of measuring and rewarding performance is to incentivise the desired actions from decision makers to work in tandem to achieve the organisations objective. Accounting information for example, consumer satisfaction results influence decisions on training etc.
These three administrative devices are known as three legged stool(Zimmerman, 2014).They are interdependent as seen in the examples
In addition, strong internal competition for limited job position and corrective actions taken on below performing staffs will lead them to focus more on their standing than their job related duties. This may result in deviant behaviour and reduced productivity for example Absentee and will affect Scoot’s performance.
Inaccurate criteria may be used in work performance measurement. For example, food sources are accepted in quantity but not checked for quality will increase spoilage and reduce the estimated amount of food that can be prepared thus directly affect the reliability of the performance indicator. Productivity drops with increased cost and affects the effectiveness in achieving the strategic goals of Scoot.
It is also difficult, expensive (uses much direct labour, material and indirect administrative cost) and time consuming to set up a performance management system because it needs much accounting data (statistics, number) to evaluate an employee objectively, reward or to allow employees to acquire necessary skills needed to perform job effectively through training and career development