Training & Development (HRM)

Running head: SINGAPORE’S TAXI INDUSTRY 1

SINGAPORE’S TAXI INDUSTRY 7

Singapore’s Taxi Industry

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Date

Singapore’s Taxi Industry

1.0 Introduction

Crisis in Singapore's Taxi Industry

The technological advancement over the years has revolutionized operations across traditional business enterprises. The revolution of business enterprises has brought benefits such as efficiency and optimization. Despite these advantages, Singapore's taxi industry has been negatively affected by technological advancements such as Grab and Uber. The new technologies have come with an enormous impact threatening the profitability of the traditional taxi industry in Singapore. New technologies such as Grab and UBer are leveraging on the internet and networking to create efficiency and convenience in the taxi industry of Singapore. The new technology has received a positive reception from Singapore's citizens due to benefits such as reduced cost and easy accessibility. Decisively, the traditional taxi industry in Singapore needs an overhaul to ensure competitiveness with the innovations that seek to disrupt profitability of the taxi industry in Singapore (Agarwal, 2015).

Impacts of General Packet Radio Service (GPRS)/Mobile Data Terminals (MDTs)

Grab and Uber have utilized modern innovations such as MDTs (Mobile Data Terminals) and GPRS (General Packet Radio Service) to optimize their operations consequently leading to profitability. GPRS is an internet connection technology that allows peripheral devices such as mobile phones to transfer and receive information via the internet (Kumar, 2013). GPRS is a revolutionary technology that allows firms such as Grab and Uber to provide convenient access to its clients. Simply put, GPRS enable clients to conveniently request for a ride from the comfort of their dwelling. MDT is a computerized inventory management tool that aims at efficiently controlling vehicles in the transport industry (Zhao, 2012). The use of MDTs by companies such as Uber and Grab enable fast dispatch of vehicles to clients. The system ensures convenience and optimizes the number of cars available in a given period.

2.0 Business Goals

Currently, Comfort Transportation Pte Ltd (Comfort) is the second largest taxi company in Singapore, and accurately represents the challenges faced by the taxi industry in the nation. As an attempt to remedy the predicament, the business goals of Comfort need modification to adapt to the changing needs of the modern world.

Firstly, during the recruitment of drivers, Comfort’s human resource should select relatively young drivers who have exposure to current technology which consequently brings new ideas in the organization. In the management of its fleet, Comfort should utilize fleet management system such as MDT to increase output and profitability in the organization.

Convenience should be a business goal of Comfort. In enhancing accessibility, the company should provide an array of payment options such as Apple Pay and Samsung Pay. This strategy will increase convenience in making payments by clients which subsequently leads to customer satisfaction and loyalty (Gochhwal, 2017). Presently, Comfort faces unfavorable competition concerning recruitment of drivers. Drivers opt for Grab or Uber who have significantly reduced registration fees. Comfort should revise its rental charges to act as an incentive to lure drivers into the organization and contribute to growth.

3.0- Organization Training Needs Analysis

Evidently, Comfort requires an overhaul in its operations and departments to be competitive. An organization training needs analysis will point the specific areas or offices that require the training to increase output. Also, the report determines which type of training is relevant to particular departments (Hartoyo, 2017). The analysis highlights the administration and human resource as the first departments that need training. The management and human resource department has a traditional perspective to business operations contributing to ineffective archaic policies. The IT and the logistic department also require training. The two departments have limited knowledge or skills concerning modern technology and should be trained on the newly available advancements. The drivers also need training on the new techniques as it is possible to outline that most are not conversant with the current technological advancement such as MDT.

3.1- Organization Task (Functional) Analysis

An organization task analysis describes the strengths, weaknesses, relevance, and output concerning a specific task in an organization. Comfort requires modifying organizational functions to achieve the business as mentioned above goals (Bogenhold, 2016).

At Comfort, a lot of time and resources is used in the branding of new vehicles. The company prides itself on recognition and branding is an attempt to distinguish the company. This strategy brings about an increase in operational cost. Comfort's prices are significantly higher compared to Uber or Grab. The pricing technique in the company seeks to maintain the 36.4% operating profit enjoyed in the past years. The move subjects clients to high fare cost thus inhibiting market availability

Evidently, it is possible to outline different functional operations between Comfort and Uber or Grab. In Comfort, a lot of resources are used in branding vehicles. Uber/Grab vehicles are not branded thereby reducing operational cost. At Uber/Grab, the companies leverage on economies of scale to enhance profitability. This leads to the companies charging reduced prices. At Comfort, the company's strategies seek to maintain high profits per unit consequently leading to high fare prices.

Comfort should modify functional components in the organization to enhance adaptability and profitability in the dynamic taxi industry.

4.0- Individual Learning Needs

There are specific individual learning needs that Comfort's employees need to possess to be in line with the task analysis findings. Employees need to be computer literate to utilize new technologies such as MDT. Computer literacy increases familiarity to modern techniques thereby reducing time in the learning process. Additionally, the employees need individual knowledge on economies of scale. The knowledge will enhance implementation of low prices related to economies of scale to increase profitability. The experience will improve reception of the new strategy by employees in performing tasks (Xu, 2012).

5.0- Identification of intended learning outcomes.

It is possible to identify learning outcomes from the recommended business goals at Comfort. The proposal to hire relatively young drivers is essential in integrating new technologies. Young drivers reduce the time and cost in implementing new technologies as there is a high probability that they have encountered the new technology.

The integration of MDT and GPS in fleet management proves to be enlightening. From the strategy, it is possible to highlight how the technologies can increase fleet management at Comfort consequently increasing efficiency and output.

The proposal to provide an array of payment options outlines how convenience is vital in business operations. Convenience increases customer satisfaction and customer loyalty. The two benefits are essential to survive in the competitive business environment.

The proposal to reduce daily rental charges outlines how the reduction of cost increases demand. The reduction of cost results into more drivers for Comfort who are critical in optimized delivery of taxi services to clients.

6.0- Conclusion

Analytically, it is possible to view hoe companies such as Uber and Gran are more adapted to the modern technological environment. The companies have streamlined their operations to ensure low cost and efficiency. The use of internet and MDT has optimized operating in the organizations. Concerning this, the new companies are threatening the well-being of ComfortDelgro Group as a taxi business in Singapore. Comfort has rigid structures that are not well suited for the modern technological world. The high driver charge rates and the lack of internet integration further worsen the situation of Comfort in Singapore. Decisively, it is possible to predict that the modern taxi companies will eventually phase out Comfort In the future.

However, the situation can still take an unexpected turn of events. If Comfort modifies its business goals to focus on innovation, convenience, and reduction in operation cost, it is possible that the company will be competitive in the taxi industry. Also, the company needs to train its staff and drivers to allow for sufficient integration of innovation in operations. The strategy will give a competitive advantage over competitors.

References

Agarwal, S. (2015). Learning by Driving: Evidence from Taxi Driver Wages in Singapore. SSRN Electronic Journal. Bogenhold, D. (2016). Independent work, modern organizations and entrepreneurial labor: Diversity and hybridity of freelancers and self-employment. Journal of Management & Organization, 843-858. Gochhwal, R. (2017). Unified Payment Interface—An Advancement in Payment Systems. American Journal of Industrial and Business Management, 1174-1191. Hartoyo, R. (2017). Development of Training Needs Analysis in Organization. Journal of Management Research, 140. Kumar, L. (2013). Design and Development of Cost-Effective Global Positioning System General Packet Radio Service: Based Soldier Tracking System. Journal of Engineering and Technology, 36. Xu, D. (2012). Linking Theory and Context: ‘Strategy Research in Emerging Economies’ after Wright. Journal of Management Studies. Zhao, Y. (2012). SMILE: streaming management of applications and data for mobile terminals. International Journal of Cloud Computing, 329.