Human Resource Management – Singapore Airlines Analysis

Individual Recorded Presentation: HR and the Environment

Background to the assignment

A contingency approach to HR (as opposed to best practice) argues that HR/people management in an organisation will be influenced by the type of organisation it is, the sector it is in, and the external environment/context it operates in. So HR in, say, a hospital will be different to HR in say, manufacturing. In this assignment you will be reviewing the internal and external environment of an organisation of your choice. It is important that you then discuss and critically evaluate the HR implications of these contextual influences

Description of the assignment, task, content and structure:

Choose an organisation. This could be one you work for, or have worked for, or any other that you are familiar with or can obtain sufficient information about. Record an individual presentation following the instructions below.

Detailed instructions:

Your presentation should provide:

1. A short introduction (1 slide)

The objectives of the presentation and what your talk will cover.

2. An external analysis (2-3 slides)

To include an analysis of the sector, including an industry analysis, key trends, competition. Your focus should be on the macro-environment, and you should include a PEST analysis – what political and economic forces are affecting the sector, and how? Consider both national and international influences. What are the key social (such as demographics) and technological trends?

3. An internal review (2-3 slides)

a) What does your chosen organisation do? What sector is it in? Location?

b) Its people: Size – how many employees does it have? What type of employees does it have? Types and categories of employees? How is HR organised?

4. A SWOT analysis, and the organisation’s employees: (1-2 slide)

a. Strengths of the internal environment.

b. Weaknesses of the internal environment.

c. Significant opportunities available in the external environment.

d. Significant threats external to the organisation.

Now relate these general strengths, weaknesses, opportunities and threats to it’s people. How does the management of its people contribute to organisational success?  

Examples of things you may wish to consider: Are there recruitment problems? Skills shortages? Industrial Relations issues? Pay or contractual issues? Technology affecting employment? Etc.

If you cannot find specific information on your chosen organisation you may refer to the sector as a whole.

6. A summary (1 – 2 slides)

A brief summary and conclusions.

7. References (1 slide)

At least 10 credible references (see instructions below).

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Introduction

The main focus of this presentation is on applying the contingency approach to Singapore Airlines. The presentation indicates the ways in which state linked ownership, Singapore’s labour regulation, global talent competition and the 2026 fuel shock shape its HR. The presentation also includes an analysis of external and internal environments as well.

External analysis – industry and competition

Singapore Airlines is a premium full service carrier along with a low cost arm, Scoot, and it is highly dependent on Changi’s connectivity. The demand for the passenger is strong, as is evident from a record 42.4 million passengers in 2025/26. The competition level is also very stiff, as there are many international players including Gulf, Chinese and Australian carriers.

PESTEL analysis

The political conditions indicate that the workplace fairness act is likely to be applicable by the end of 2027, and it will directly change the hiring, grievance and performance management practices. The rule and implication of tripartite norms such as MOM, NTUC is also significant on pay and retrenchment.
The economic conditions indicate the rising fuel prices because of the Middle East crisis and it has a negative impact in terms of net loss in the quarter one of 2026/27 of S$76 million.
The social conditions also have a direct impact on Singapore Airlines performance as the retirement age increased from 64 to 69 and this will require Singapore Airlines to manage an older workforce in a physically demanding role. From a technology point of view, the partnership of Singapore Airlines with salesforce and openAI have a direct impact on service and operations, and creates demand for data skills.

Internal review

An analysis of Singapore Airlines indicates that it is the flag carrier based at Changi and holds a 25.1% stake in Air India. It served 77 destinations in March 2026 and the network covers 134 destinations in 35 countries. From a people point of view, the airline employs more than 18000 people who work as cabin crew, pilots, engineers, ground and airport staff, and corporate and management staff. The HR policies are centralised with separate HR units at Scoot and SIAEC.
The strength of the company is its record revenue of S$20 billion in the financial year 2025/26, and a strong balance sheet. The strategy of adequate training and profit sharing supports retention which is the positive factor. In terms of weaknesses, the net profit fell 57.4% to S$1.18 billion and the increasing fuel prices is the biggest factor contributing towards increasing pressure on the company. That is additional pressure to protect labour cost while ensuring premium services to customers. In terms of opportunities, there is great opportunity available for European and Asian route expansion, and there is increasing demand for new roles, regional mobility and upskilling.
The threats are mainly from the middle east crisis, aging workforce rules, global shortages and all these increases the retention risks and higher HR compliance cost.

People and organisational success

The main factor contributing towards organisation success is the reward tied to results. However, the lower bonus as a result of declining performance is a test of whether staff accept the formula of bonus tied to performance. The fuel shock could negatively impact the performance in the next quarter. The HR issue is therefore to retain technical staff, manage older workforce, and sustain service quality under cost pressure.

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