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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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