airasia human resource strategy
also reduce the investment in HRM systems and practices. Secondly, the management team is also very good in their strategic formulation and execution. The political context of globalization though is a main consideration for Air Asia but it is diffuse and spread over other factors as discussed subsequently. AirAsia did not consider seniority of crew and staff promotions but the, promotions of crew and staff was on CEO sole discretion. Competitive Advantage of AirAsia a. c. Human Resource Management HR Department will hire employees with multiple skills to increase the quality and effectiveness of the job done. Low travel cost means travelling from Singapore to Kuala Lumpur not only more cost effective than a coach ride, but it also saves large number of hours travelling by air. Gittell (2003), was revealed that front-line employees have important role in accomplishing quality, and productivity outcomes in the airline industry (as cited in Belobaba, Barnhart, &, Odoni, 2009, p.275). As such the customer’s see an opportunity to travel to the destination served by Air Asia with a low cost is possible. AirAsia's HR department involved in the recruitment and there is a minimum, investment for each new employee training resources. Fourthly, AirAsia is also known to be a low cost leader in Asia. For example, the typical complaints would be of flight delays, being charged for a lot of things and not able to change flight or get a refund if customers could not make it. Sociological Linked to the economic factors above social changes have significantly impacted Air Asia in relation to changing demographics in terms of the customers it targets. They need to have a better assessment on the Airbus or Boeing capacities, taking consideration on how long it would take to deliver their order. As a result, AirAsia get an award from Frost & Sullivan, a global. This will lead to an unrealistic price war and might fluctuate the cost of travelling around the region. Most customers would want to fly around the region with the lowest cost possible. For example, Shin Corp holds a 50% stake in Thai AirAsia. Yes. With it success as an air operator, more company see that there are potential for them to have the slice of the market hence more new low-cost operator was established by the traditional air operator to compete with Air Asia. With the unmistakable tagline, “Now Everyone Can Fly”, AirAsia has made flying For example, their partnership with other service providers such as hotels and hostels, car rental firms, hospitals, Citibank has created a very unique image among travellers. The business model of AirAsia is well established and fairly ideal for other industries as well. Training is only carried out to, ensure that the new hired has the functional skills that needed for the tasks and there, was almost no other soft skills training in communication, conflict resolution and, other teamwork skills. What Is the Macro Environment in Business Analysis? Given the fact that AirAsia on average flies 2.8 million kilometres per year which costs 14 million litres of fuel this strategy can save a lot of money which is currently being spend on jet fuel (AirAsia, 2016). Hence the desire to provide the promised lowest value will be impacted. With the help of AirAsia Academy, AirAsia has successfully created a workforce which is veryflexible and high committed and very critical in making AirAsia the lowest cost airline in Asia. Welcome to the world of case studies that can bring you high grades! It operates both internationaland domestic flights with help of its affiliated airlines AirAsia India, Philippines AirAsia, Indonesia AirAsia, Thai AirAsia and AirAsia X to deal with long-hauling routes. 3, pp. This preview shows page 1 - 3 out of 6 pages. Krisflyer, Jetstar and Tiger Airways makes competition very vigorous around the region. • A theoretical Framework for determiming the relationship between competitive strategies and Human Resources practices; Journal of Naval Science and Engineering 2010, Vol. Course Hero is not sponsored or endorsed by any college or university. As their ticket booking are transacted through internet, Air Asia is concerned about the consumer privacy right. Acasestudy.com © 2007-2019 All rights reserved. Explain your answers? Resilient profit growth through our lower cost base. Single class of sitting capacities allows Air Asia in achieving 79% of load factor throughout their last financial year 2010, thus attaining the lowest fuel burn per passenger. They are Ryanair’s operational strategy, Southwest’s people strategy and Easyjet’s branding strategy . People are not very orientated in HRM. Internal factors Human Resource When Airasia implement e-SCM strategy, every process, goal or system must be carry out by employees. And most importantly, users’ perception that budget airlines may compromise safety to keep costs low may also affect them attracting more customers. Operations c. Outbound Logistics d. Marketing and Sales e. Service f. Infrastructure g. Procurement h. Human Resource Development i. People are not very orientated, in HRM. This would create a larger market and a huge ooportunity for all low costing airlines in the region, including AirAsia. The strategies devised and included in the AirAsia Flying Low Cost with High Hopes case memo should have a blue ocean strategy. The links with Manchaster United and AT;T Williams Formula One team have further boosted their image to a greater extend beyond just the this region. By using the Internet, AirAsia will have a wider market to grab hold onto and also more streams of revenues across the region to take from. Furthermore, certain areas are dangerous to travel by land, especially on the Thai-Cambodia border, therefore travellers would like to travel across borders safely. The families involved were initially offered £15,000, … The companies though the nature of these influences are inextricably linked to social, legal and political factors. AirAsia took on the reducing offensiveness and mortification strategy. Economic Air Asia has been significantly impacted upon by changing externalities in the economic environment. How about receiving a customized one? As a factor of influence, Air Asia engaged in training programs for its employees and company wide in ensuring it meets these standards and possesses the knowledge and skills to do so in terms of its human resources. AirAsia Case Executive Summary SMO 441 Submitted: March 8, 2011 Abi Sanni Aly Remtulla Kelsey Gamble Kendra Jocksch Nancy Moke Company background Tony Fernandes, as the Chief Executive Officer of AirAsia, decided to pursue his dream to start an airline with the following vision: “To be an airline that flies long-hauls with low fares with a corporate culture that is … AirAsia offered an initial compensation of US$24,000 to the next-of-kin of each passenger. This benefit the general consumer whereby it provide them with choice that better fitted the consumer needs. Alliance with Galileo GDS that enables travel agents rom around the world to check flight details and make bookings have also contributed to their string brand name. Aside from competition with the arrival of more new air operator, with their success Air Asia benefitted from it where availability of fund through financial institution willingness in providing financial investment to the Air Asia. Some of the political decision that impact Air Asia was their application for the use of old Subang Airport as their hub was turn down by the government. Environmental AirAsia and it subsidiaries need to take cognisance of environmental factors. For Air Asia, it is subject to intense regulatory scrutiny by Environmental Protection. AirAsia enhance their service and maintain their low cost strategy by increasing use of technology and new innovation. As an air operator, Asia concerned is the air worthiness of it airplane. The event will cover the full spectrum of HR technology, HR general practices and trends through six content-rich conference streams: CxO Symposium HR & […] Moreover, there was a pay and individual performance, plan when Tune Air took over AirAsia, but the plan was no emphasis after the first, year. Secondly, other countries’ governments might also ponder to invest in AirAsia into their country and turn the subsidiary into state ownership. An example would be taken with Malaysian government, where government owned companies are more concentrated around the country, therefore AirAsia expansion to venture into the intra-market would be less welcomed by the government as they are confronted by a predicament the growth of an a budget airline cooperation rather than the growth of the state-owned Malaysian Airlines. Air Asia has addressed this with providing training in adapting to the new work culture. Also, with AirAsia’s profit margin of 30%, it has already attracted many competitors. Secondly, the “ASEAN Open Skies” allows unlimited flights among ASEAN’s regional air carriers beginning December 2008. Threats Firstly, it would involve certain rates like airport departure, security charges and landing charges which would be beyond the control of airline operators and this would thus be a threat, especially to low cost airlines which tries to keep their cost as low as possible. Northern University of Malaysia • COB bjqp2023, INTI International University • MGMT 4216, Tunku Abdul Rahman University College • ABDM 3513, Northern University of Malaysia • BPMN 3023, Open University Malaysia • BUSINESS BBPM2203, 314384231-BPMN3023-Strategic-Management.docx, Northern University of Malaysia • MARKETING BPMM3133, Northern University of Malaysia • ACCOUNTING 1, Northern University of Malaysia • OYAGSB OEEM6013, Northern University of Malaysia • COB BPMN1013, University of Malaysia Pahang • ELECTRONIC DEE2931, Northern University of Malaysia • BUSINESS A JMP5023, Copyright © 2021. This is because there are no specific policies of pay scale in AirAsia. We draw upon established theory from the fields of strategy and strategic human resource management to explain AirAsia's minimalist approach to human resource management. 4) He expressed gratitude and support to the Indonesian rescue team Airasia continues to expand worldwide through the innovation, efficient, passionate and right strategy. Legal Legal considerations are again more a concern directly for Air Asia in terms of the regulatory. With the perfectly set goals, mission and listed strategy ensures the well functioning of the corporation. Marketing Mix of AirAsia analyses the brand/company which covers 4Ps (Product, Price, Place, Promotion) and explains the AirAsia marketing strategy. As an air operator, Air Asia core business is air transportation. Air itself was a spin off from a government run company HRB – Hicomm Berhad it was verge into liquidation when Tony Fernandez bought it and turnaround it into profit running company. productivity, and labour productivity (as shown in figure below). SWOT analysis of Airasia Strengths Firstly, Air Asia has indeed a strong management team. This is partly contributed by the diverse background of the executive management teams which consists of industry experts and ex-top government officials. AirAsia Berhad (“AirAsia” or “the Company”) is a name synonymous with low fares, quality service and dependability. Expansion of the AirAsia network in a prudent and disciplined manner. This was announced within 10 days of the incident occurring. reexaming the human resource strategy - 5.0 Re-examining the human resource strategy Human resource management is an important aspect in airline, 5.0. We Will Write a Custom Case Study SpecificallyFor You For Only $13.90/page! This is clearly known as it has very strong links with the governements and airline industry leaders. A centrepiece in the human resource practice of the company is the promotion of employee empowerment. Strategic management: it is the continuous of planning, monitoring, analysis and assessment of all that is necessary for an organization to meet its goals and objectives. This will definitely increase the competition among the regional airlines. Opportunities It can be seen that there are about 2 major events that are taking place now or going to take place in less than 6 months from now. Human Resource . This has helped AirAsia to open up and capture a sizeable market in Thailand. which have helped the brand grow. They launched self check-in machines on February 2009, the technology introduce to eliminate long check-in queues in counter and minimize the manpower. Thus, AirAsia has a great opportunity to capture some of the existing customers of full service and other low cost airline’s customers. [email protected] 804-506-0782 350 5th Ave, New York, NY 10118, USA. AirAsia has the distinction of being the largest airline in terms of destinations and fleet size in its home country Malaysia. Human resource management strategy, systems and practices The HRM infrastructure of AirAsia is minimalist with a ‘hard’ focus on cost containment and reduction rather than resource … Most prominent are its treatment of employees, its culture, and the manner in which AirAsia is branded and marketed to the public. 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 AirAsia makes the low fare model possible and create values through the implementation of the following key strategies: AirAsia … As Group President of RedBeat Ventures, Aireen Omar is responsible for AirAsia’s digital strategy, transforming airasia.com into more than just an airline platform. However, with the “first mover” advantage as well as its strengths in management, strategy formulation, strategy execution, strong brand and “low-cost” culture among its workforce, this agreement can be seen as more of an opportunity.