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Introduction
The Objectives of this assignment are to critically analysis on Air Asia human
resources management theories against the significance of corporate organization.
Perhaps, more issues would be discussing about current management, employees, and. Also,
other sources of the secondary research will be conducted in order to be able to compare and
contrasts between the airasia human resources of management implementation and other
contributors achievements. So; it is one of the best companies of the Asia century, if not the very
best at all.
Air Asia is one of the award winning and largest low fare airlines in the Asia expanding rapidly
since 2001. With a fleet of 72 aircrafts, Air Asia flies to over 61 domestic and international
destinations with 108 routes, and operates over 400 flights daily from hubs located in Malaysia,
Thailand, and Indonesia. Today, Air Asia has flown over 55 million guests across the region and
continues to create more extensive route network through its associate companies. Air Asia
believes in the no-frills, hassle-free, low fare business concept and feels that keeping costs low
requires high efficiency in every part of the business. Through the corporate philosophy of “Now
Everyone Can Fly”, AirAsia has sparked a revolution in air travel with more and more people
around the region choosing AirAsia as their preferred choice of transport.
Moreover Human Resources in airasia assigned multi-skilled cabin crews flight cost-effective
training, performance based reward and incentives systems In December 2001, a new Malaysian
company called Tune Air purchased a small underperforming domestic Malaysian airline known as Air
Asia. By 2006, AirAsiahad a fleet of 43 aircraft with orders for 100 more and was forecast to carry 9
million passengers to 52 destinations. AirAsiasrise is the result of the confluence of opportunity and
skillful application of the low cost carrier business model including: reduced in flight service, point to
point travel, high aircraft utilization, single fleet type, ticket less passenger reservation systems and
considerable functional flexibility in staffing. So HRM is a legal between company and employees
for developing and successfully.
So I will study prepared the research for this company flexible and which will begin the
analytical study of the definition of HRM Company and the functional level for employees and
the positive and negative impacts, recommendations and conclusion.
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Literature review to Identify Airasia current management:
According to Daniel Chan (2000), the airline industry is a unique and fascinating industry. It
captures the interest of a wide audience because of its glamour, reach, and impact on the large
and growing numbers of consumer’s travelers worldwide. Based on this statement, airline
industry becomes the greatest opportunity for AirAsia. The growing numbers travelers
worldwide can be the wonderful opportunity for AirAsia for running their business. In addition,
to captures and attract a customer to choose AirAsia as an airline option, AirAsia need to
develop and create a wonderful strategy and come out with special offering to their customer to
successfully in their business.
AirAsia Berhad dba Air Asia MYX: 5099 is a Malaysian low-cost airline. It operates scheduled
domestic and international flights and is Asia's largest low-fare, no-frills airline. AirAsia is a
pioneer of low-cost flights in Asia,[1] and was also the first airline in the region to implement
fully ticketless travel. Its main base is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur
International Airport (KLIA).
The goal of this company focuses on linking acquisitions to development, and they requested our
assistance to create an Acquisition Field Guide. The Guide serves to educate all employees on
the acquisition process – so acquisitions are process-dependent and not people-dependent – and
works as a career advancement opportunity for the selected acquisition leader. The company
understands the importance in investing in tools to help its employees succeed. The result, in
addition to successful acquisition efforts, is complete linkage from employees to departments to
corporate goals.
airasia Strategic Plan: have to communicate this plan and the corporate goals to all employees.
In addition, the plan must be reviewed continuously – not once per year. Research indicates that
company that continuously review their strategic plans make more strategic decisions annually
than those that do not.
Department Objectives: Once corporate goals are determined, these should be linked to each
department. For example, if a corporate goal is to introduce a new service plan, the marketing
department ultimately may be responsible for this. The marketing leader will make this corporate
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goal a part of responsibility department objectives and communicate accordingly with
department employees.
Furthermore, AirAsia is one of the companies with good company strategic management and has
a successful story in the airplane industry in the world. AirAsia now becoming the leading low
cost carrier airline in the world and the achievement that AirAsia received to ascertain that
AirAsia is one of the best airplane companies, the achievement that AirAsia received in 2009 on
the last awards and recognition is the best low cost airline in the world.
In July 2007, Azran was appointed as Chief Executive Officer of AirAsia X, the world’s first
truly low-cost long-haul airline. He led the start-up team that developed the business plan, raised
capital, secured relevant licenses and approvals, acquired aircraft and launched AirAsia X’s first
inaugural flight to the Gold Coast, Australia in November 2007.
In 2001, AirAsia had successfully stimulated and captured the growth of discretionary air travel
traffic by targeting mostly first-time travelers and budget leisure travelers. The business
expansion was tremendous and has since captured a significant market share in South East Asian
countries. AirAsia is currently the leading domestic carrier with 6.5 million passengers compared
to MAS’s 5.4 million. Its low cost strategy and successful positioning strategy in Asian market
that has putting it as the market leader in the Asian airline industry. MAS, despite being an
award-winning airline, have struggled financially in the past and have only recently completed
its business turnaround exercise. Moving on, MAS is embarking on a business transformation to
secure its future competitive position.
Acknowledging this, AirAsia has stressed on open and honest communication, effective
consensus building and teamwork. This includes setting up a formal whistle-blowing policy,
cross-functional business committee teams, constant communication and disclosure of business
plans to employees. Its CEO heads the special committee tasked with transforming MAS’s
corporate culture and sends emails to employees in his effort to communicate his new vision for
the company’s culture. Meanwhile, since its takeover, AirAsia has always practiced open
management and provides above average industry disclosure (AirAsia, 2007). AirAsia’s informal
team culture also helps organizational members to bond, which according to Nonaka (1994),
helps to facilitate knowledge sharing.
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The expansion was constant over those first few years. It remained a domestic-only airline until
2003 when a second hub at Johor Bahru also began staging flights to Bangkok. AirAsia later
expanded its services to locations in Indonesia, China (including Macau), Vietnam, Cambodia
and the Philippines. Even as the world economy has soured, the airline and its subsidiaries have
grown to add Sri Lanka, Bangladesh and even the United Kingdom (pictured) to its route map.
Throughout all of this, and still today, Fernandes plays a hands-on role. Indeed, he says, having
that direct connection with staff and operations allows him to make dynamic and effective
decisions as they are needed. “I see to it that I understand how the various departments work and
what better way to do this than to go ‘hands-on’,” he says. I’ve seen firsthand how guests and our
staff interact, and experience in this has led to improvements in various areas including HR
policies.
Developing Air Asians
the development of human resources airasia to be as a result of extensive research and
consultation with leading HR executives and consultants and the company always focused on
actual practical experience business situations and brutal realities of managing people rather than
more theory or ivory tower concepts.
The company offers plenty in return. As well as competitive salary packaging and that
encouraging culture, Fernandes says opportunities to develop talent are what keeps AirAsia
staff sticking with the company. AirAsia believes in personal and professional growth,” he says.
“Encouraging professional growth within the company is vitally important to keeping happy,
productive staff and staying ahead of business competitors.
To this end, all staff of all designations and levels is given training and development
opportunities. “We do our best to help everyone in the team grow in their careers by offering
training programmers to help employees hone their skills; and by providing a challenging work
environment.
Fernandes and his senior managers also pay close attention to high potential talent throughout
the airline. We actively keep an eye out for talents we can develop. AirAsia benefits from a staff
that is confident and very much competent in its role in growing the airline.
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Employee’s relation issues:
In terms of the human resources aspect, AirAsia’s people play a key role in the success of its
low-cost business model. AirAsia trains its employees to be innovative multitaskers and team
players. AirAsia also stresses internal recruitment and relies on its Human Resources Department
for this. Meanwhile, MAS is moving towards greater employee empowerment and involvement
and is using web-based talent management solutions to support compliance training, reporting,
and performance management across its global workforce. Both airlines have taken steps to
protect their intellectual capital in the event of staff turnover by having succession plans for key
personnel.
Many approaches have been to achieve low costs and high reliability through relational
coordination among employees, generating high employee and aircraft productivity. Human
resource practices have played a key role including: selection and training for teamwork, cross-
functional performance measurement, conflict resolution, flexible boundaries between jobs,
operations agents as team leaders for flight departures, supervisory coaching and feedback, and
partnering with unions. Wages and benefits have been targeted toward the industry average.
Accounting to the Air ASIA value chine that human resources employees include Flight analyst
Training Yield analyst training, Pilot training Safety training, Baggage Handling training,
Product development Market research, In-flight training, so all this staffing is major enablers of
AirAsia’s successful low cost business model. Based on the environmental scanning performed,
the demand for Low Cost Carrier (LCC) is expected to expand rapidly attracting more players to
join the market thus increasing the degree of rivalry within the industry.
Therefore AirAsia needs to train the employees, empowering them with a complete view of the
customer and clearly articulating the employee’s role in the CRM strategy. Communication
should always be kept open and active. Employees should be encouraged to communicate with
the project team and management. Any useful information should be distributed in a timely
manner. By this way, the implementation problems can be identified in early stage and corrective
actions can be taken promptly (Connell, 2001).
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In the other hand each month, the leadership team meets for up to four hours to discuss top
performing employees. They have a lot employees globally, and through their detailed process,
they have identified a mere new employees and aides as being the “best of the best them ideas.”
This group of more knows they are on this list and the employees; HR and leadership have
collaborated on specific skills and training for these individuals.
Employee Objectives:
Using the new services in the plane example, one or two employees may be responsible
for leading the new events in the flight. This becomes part of their annual objectives,
thus creating a “line-of-sight” process from the employees to the department to the
corporate goals in the strategic plan.
Communication becomes the very important step in the process to comprehensive
employee communication plan should encompass the process and ensure that
information is cascaded to all employees through a variety of venues. If employees don’t
understand what is occurring in the organization, how can they truly be as productive as
you want them to be to achieve your business goals and maximize profitability and
productivity?
To ensure continued success, the employees system needs to occur on a continuous
basis. There needs to be a constant communication loop between the corporate strategy
and employees. A corporate scorecard should be created with the corporate goals. As
part of the communication, the measurement should be tracking using a simple green,
yellow, red light so employees know which corporate goals are doing well and which
aren't. When linked to employee objectives, these objectives use a similar green, yellow,
red system so employees always know how they are doing as well. The alignment is
completed as all employees now know how they are contributing to your bottom line.
for example the equality of all staff and non-functional courtesy.
Furthermore Male or female, and no matter what the designation, once staff are on board,
Fernandes actively encourages their creativity in a number of ways. As well as the open-plan
offices, ideas are actively shared through the organisation’s HR policies, procedures and
communication platforms.
We encourage (innovation) through an intranet that enables ideas, suggestions and critiques to be
swiftly shared throughout the company and a staff that’s passionate and hard-working.
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Fernandes says the innovation culture is not just about the big things. Even small ideas add up.
For a low-cost airline, turnaround time is a crucial element. The more time AirAsia planes are in
the air, the more revenue can be garnered. He says it is thanks to innovative procedures and
systems that the company is able to boast one of the fastest turnaround times in the world – just
25 minutes.
He lays the credit for those successes squarely with his staff base. “Our people are the ones who
deserve credit for helping us get to where we are today; and for pushing us to even higher levels
in the weeks and months ahead.
Through intelligent management of human resources in the company that employs staff Attaat strong in order to protect the company from Altnaks in the labor market and this is the diagram:
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Nature and impact:
Nature in this company has many nature ideas which berform employees to do the besst high
level such as motivate and traning to create new plan in the flights and it will be benefits all the
staffing by Vision: To be the largest low cost airline in Asia and serving the 3 billion people who
are currently underserved with poor connectivity and high fares. Mission: To be the best
company to work for whereby employees are treated as part of a big family Create a globally
recognized ASEAN brand To attain the lowest cost so that everyone can fly with AirAsia
Maintain the highest quality product, embracing technology to reduce cost and enhance Service
levels.
In Human Resources Department for airasia is moving towards greater employee empowerment
and involvement and is using web-based talent management solutions to support compliance
training, reporting, and performance management across its global workforce. Employees are a
critical function of a performance management system as they are the most important
representatives of your brand – brand evangelists. Engaged employees effectively help market
your brand to customers, and also can become your best HR recruiters for new employees. They
can become corporate ambassadors, and believe it or not, money is not their primary motivator.
Impact: AirAsia prefers passengers with very light and minimum baggage the impact of price
controls depend on whether competition in these markets result in lower prices the official price
ceilings. We discuss the haulage case in greater detail later. AirAsia case clearly highlights the
impact of market entry on competition in the services sector. The impact of policy reforms may
extend beyond the sector to affect other sectors such as the case of the steel industry.
Also from this research prefer in airasia human resources management to impact for motivate
and training employees because they want to know how to ask. Nationally, items such as
recognition, training, career advancement, and learning new things always rank higher for
employee motivations. If employees are engaged and aligned in your company, and have a clear
understanding of your corporate goals and how they can impact these goals, their level of
productivity increases. They treat customers better (customers sense when employees are happy),
complete customer satisfaction and loyalty occur, and the result is more growth for your
company.
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Through observations of nature and influence of this company and found that there are a few differences that could call airasia swot analysis:
Strengths Low cost operations, Fewer management level, effective focused and aggressive management,
Simple proven business model that consistently delivers that lowest fares, Penetrate and
stimulate to potential markets, Multi-skilled staffs means efficient and incentive workforce,
Single type fleet minimize maintenance fee and easy for pilot dispatch.
Weakness Service resource is limited by lower costs, Limited human resources could not handle irregular
Situation, Government interference and regulation on airport deals and passenger compensation,
Non-central location of secondary airports, Brand is vital for market position and developing it is
Always a challenge, Heavy reliance on outsourcing, New entrants to provide the price-sensitive
services
Opportunities Long haul flight is an trial to get undeveloped market Share, Differentiation from traditional
LCC model by adding customer services or operation as full service airline with low fare,
Ongoing industry consolidation has opened up prospects for new routes and airport deals, High
fuel prices will squeeze out unprofitable competitors
Threats Full service airlines start cut costs to compete, Entrance of other LCCs, High fuel price decreases
yield, Accident, terrorist attack, and disaster and affect customer confidence, Aviation regulation
and government policy, Increase in operation cost in producing value-added services, System
disruption due to heavily reliance on online sales
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Recommendations:
Fernandes says the focus on CSR is in line with his own philosophies of internal HR. At Air Asia, it is an imperative that is practiced by our own internal policies: creating a meritocracy, gender neutrality, and developing professionally skilled and socially-responsible citizens.”
In this exciting and challenging role you will report to the Vice President for HRD and work
with business partners to identify learning and development needs and leadership development
needs. You will implement and evaluate people development initiatives; effectively drive
learning needs analysis and the development of learning programs. You will also roll out yearly
performance management, facilitate talent management reviews and manage leadership
development programs.
The successful candidate should be a graduate in HR Management and preferably worked within
a matrix team environment with at least 8+ years of relevant experience. You should be hands-on
and have prior experience in Talent Management and Leadership Development. You are a
transformational team leader who is excellent in presenting, coaching and has strong
communications skills.
AirAsia is strongly recommended to outsource the development of APS system. As project
management plays critical role in ensuring successful implementation, it is suggested that
AirAsia follows the recommendation provided in terms of planning, structure, practices, and post
implementation strategy.
Furthermore I suppose from this research some recommend
Moving towards motivate greater employee empowerment and involvement and is using
web-based talent management solutions to support compliance training, reporting, and
performance management across its global workforce.
Employees are a critical function of a performance management system as they are the
most important representatives of your brand – brand evangelists.
Engaged employees effectively help market your brand to customers, and also can
become your best HR recruiters for new employees. They can become corporate
ambassadors, and believe it or not, money is not their primary motivator.
Selection the best intelligent employees and training for teamwork, cross-functional
performance measurement, conflict resolution and flexible whatever they want.
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Conclusion:
The assignment contains an introductory section which discussed as well as analyses about the
objective, for the introductory section issues from airasia human resources management ideas
have been pointed out especially from the objective with little analysis between the sources of
secondary research as well as airasia HRM of view about corporate organizations. Also scope
shade more light about form the analysis between airasia ideas of management and employees
views about ideas of managing corporate organizations.
At the next level given as task two I discuss about the literature review and identify current
management through the strategic plan , department objective ,developing airasia company and
fernades with his senior managers what thy should to do for airasia benefits from staff that is
confident and very much competent in its role in growing the airline. And academic research
works from different knowledge of managerial professionalism, a lot of ideas, have been
critically analysis in order to able to make recommendations for future readings. In addition to
that, the criteria to evaluate the work of management are marketing, innovation, productivity;
people, physical resources, capitals and social everyday jobs are discussed.
Moreover, under the literature review of current management there are critical analysis to
support the ideas of airasia HRM such as employee’s relation issues for many approaches have
been to achieve low costs and high reliability through relational coordination among employees,
generating high employee and aircraft productivity. Human resource practices have played a key
role including: selection and training for teamwork, cross-functional performance measurement
Then, nature , impact and recommendation faced by today’s manager and employee’s concerning
ethics and social responsibilities are discussed intensively many academic research work have
been performed to prove the greater employee empowerment and involvement and is using web-
based talent management solutions to support compliance training, reporting, and performance
management across its global workforce. Employees are a critical function of a performance
management system as they are the most important representatives of your brand – brand
evangelists. Engaged employees effectively help market your brand to customers, and also can
become your best HR recruiters for new employees.
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References:
Aberdeen Group (2004), The Quiet Revolution in Supplier Management, A Benchmark Study on How
Companies Are Communicating with and Monitoring Their Supplier. Retrieved from ERP 306-674 Reading
Pack Semester 1 2005, Melbourne University on 20th October 2005.
eAirlines: Strategic and Tactial Use of ICTs in the Airline Industry. Dimitrious Buhalis. University of
Surrey.2004.
AirAsia Corporate Website. http://www.airasia.com.
Wilkinson, A. and Dale, B.G. (2001) Integrated management system: A model based on a total quality
approach. Managing Service Quality, 11(5) 318-330.
Zainal Aznam Yusof and Phang Hooi Eng (1993a). “Industrial Market Structure in Malaysia, 1979-1990,”
Working Paper No.21, Bank Negara Malaysia.
Malaysia (2003) “Study of Restructive Business Practices and Their Effects on Malaysia’s Competitive
Dynamics,” Ministry of Domestic Trade and Consumer Affairs (MDTCA).
Miller, J.S. and Cordy,R.L. (2000) Technology and managing people: Keeping the “human” in human
resources. Journal of Labor Research, 21 (11) 1293-1312.
The future of CRM in the airline industry: A new paradigm for customer management. IBM Institute
forBusiness Value. 2002.
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Table of contents: page
Name -------------------------------------------------------------------------------------------------1
Introduction ----------------------------------------------------------------------------------------2
Literature review and identify current management …………………………………….3
Employee’s relation issues………………………………………………………….……4
Nature and impact …………………………………………………………….…………5
Recommendation ………………………………………………………….…………….6
Conclusion ………………………………………………………………………………7
References ……………………………………………………………………………….8
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