Course Work Example: Malaysia Airline System - Company Profile

2021-06-23 15:10:43
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University of Richmond
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Course work
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Executive Summary

MAS (Malaysian Airlines System) are the national carrier of Malaysia, serving more than 50 destinations daily. It operates from its main hub located in Kuala Lumpur with secondary hubs at Kota Kinabula and Kuching. It recently restructured itself to focus more on regional routes and be cost-driven. MAS are a centralized organization made up of many divisions and departments (Wilton 2016). Operating under the strict hierarchy of authority of the CEO, decision making and information generally tend to flow top down.

The main issues facing the MAS HR is bankruptcy where the company was forced to do away with 30% of its employees. Also, the company was changed from being a public airline to being a private airline with efforts to save on costs since they believed that public criticism has stood in the way of their plans. The company recorded a loss of 121 million dollars in 2015.

Another issue facing the Malaysian Airline HR is the incident of the missing airplane with the identification number MH370 and the crashing one of MH17 in 2014. These two incidents have led to the loss of its customers trust. It has had a serious impact on the MAS which led to its non-profitability up to recent years. The company lost its values and was delisted from being a public airline. The company faced great losses since most of their customers were scared due to the two strategies (Wilton 2016).

Profile of Organization

The journey of the Malaysian Airlines to achieving its current success has been worthy of attention. An Airline that was once a small operator has grown rapidly to be the force it is within the industry today. These Airlines were as a result of a joint initiative between the Liverpool ocean steam ship, the Singapore straits steamship and imperial airways, who decided to run an air service that operated between Penang and Singapore. Therefore, the Malaysian Airways Limited was invented on 12 October 1937 (Wilton 2016).

1. Business

The first MAS commercial flights took place on 2nd April 1947 and were conducted by a team of young visionaries and in less than ten years, MAS turned from a domestic carrier into an international airline. After a period of 20 years, MAS grew from a single aircraft operator into a company with 2400 employees and a fleet of airplanes. In 1965, when Singapore broke off from Malaysia, MAS became a bi-national airline changing its name to Malaysia-Singapore Airlines. A new logo of the company was later introduced and the airline grew rapidly.

The airline holds a long record of success since it has received more than 100 awards over the last ten years. The airline was awarded for bearing the worlds best cabin crew, worlds best economy class, best airline signature dish, staff service excellence for Asia and for it being a 5-star airline. The company was also awarded by the world travels for being the worlds leading airline to Asia (Wilton 2016).

The companys vision is to be the worlds leading aviation authority. Its mission is to continuously enhance safety, security and efficiency for a sustainable aviation industry. Additionally, its values include; professional, excellence, integrity, accountable and Esprit De Corps.

A new business mission was introduced which led to the significant development of the airline that took off through new routes that led to Rome, Taipei, Perth and London. However, in 1973, the partners parted ways leading to the formation of the MAS and has served the country up to date. Today, the Malaysian airline carries almost 50, 000 passengers everyday and go to over 95 destinations passing across 6 continents.

2. Mission

To champion the meaning of fly code (Malaysian Hospitality) and provide air travel and transport service that rank among the best in terms of safety, comfort and punctuality.

To generate suitable value for its stakeholders and offer the highest quality of care and service to its customers.

To continuously explore innovative ways of doing business and stay relevance to its core and inspiring motto; "Go Beyong Expectation. "

To provide a growth-oriented workplace that recognizes the interests, rights and ideas of its employees as well providing a corporate environment that encourages high integrity and ethical standards; and ensures compliance with all regulations and laws.

Organization Structure of MAS (diagram chart)

The MAS is led by the CEO followed by the chairman of the board and below are the directors in different areas of duty.

HR Service Delivery/Types

HR has many functions to an organization including the processing of payroll, career advice and the benefits of employees. There are two main types of HR service delivery model. The first is the traditional HR model which is made up of one team that contains specialists, generalists and the administration. The centralized team takes care of employers and employees at specific departments of the business (Wilton 2016).

Traditional model

The traditional model is mostly found in SMEs resource constraints. The HR team in SME needs to adapt to change for them to do both transformational and transactional activities. Smaller organizations that only consist of generalists staff cover a wide range of tasks. In a survey in the UK that involved 197 firms indicated that the HR department consisted in a team of 12 people who were serving the workforce, 1200 were HR directors, and 3 were HR managers, 1 supervisor, 3 HR officers and 4 HR assistants (Wilton 2016). The specialists focus on specific areas in HR activities like planning. The generalists focus on a wide range of HR activities like staffing and policy interpretation. The administration manages processes that support payroll and recruitment.

Ulrichs model

The second model is the Ulrichs three-legged stool model. It involves three parts known as centres of expertise, HR business partners, and shared HR services. This model indicates the four roles of HR, which involve change agent, strategic partner, employee champion and administrative expert. The HR business partners establish relationships with customers and implement HR activities (Wilton 2016). These centers help create a HR framework, introduce and come up with strategic HR initiatives. They rely on the business partners to organize the program for the business. Finally, there are the shared services that provide HR services, manage the routine processes efficiently and effectively and provide the information required in call centers.

Factors Shape Choices of HR Service Delivery

The aspects that influence the choices of HR service delivery consist of the internal and external environment of a company. One of the factors that influence these services is competition. This affects the ability to choose qualified workers. Companies that are known to be industry giants do not focus on advertisements since many candidates seek them out. Conversely, Small companies need to look for qualified candidates for critical positions in available jobs. Therefore, a HR department needs to attend job fairs to promote the company and attract applicants (Sparrow, Brewster & Chung 2016.

The second factor is compensation. In this case, when unemployment is high and the number of qualified candidates exceeds the number of job opportunities, a company must provide less compensation. The HR of a company must evaluate the compensation structure continuously. They should ensure that the compensation structure of the organization is fair (Sparrow, Brewster & Chung 2016).

The third factor is employee relation that influences the factors that shape the choice of HR service delivery. The HR of a company must ensure that employees receive appropriate training so that they will be ready to be promoted when the time comes. They should watch carefully the number of employees who are ready to go on retirement and ensure that replacements are done as early as possible (Sparrow, Brewster & Chung 2016).

Finally, there is legislation which governs all HR activities. The federal and state legislation determines the period that a business is supposed to hold its employee records and relevant data associated with them. It also dictates what information should be stored and how. For employees with disabilities, there is an Act that ensures that the confidentiality of their medical information is well taken care of.

Size

Malaysia Airline system is among the vast associations in south-east Asia which works as a centralized association and facilitate their business in numerous places. Numerous offices are separated under the association for preparing their business. There are additionally sub divisions in the association that are controlled by the top offices. The governing body has the most elevated expert through these divisions and sub offices. Every one of the divisions need to operate under the summon of top mannagement levels. Association structure of Malaysia Airline System is tall association structure. There are numerous progressive system levels where all the request originated from the upper chain of command.

In MAS, traditional HR service is delivered as one centralized team and is delivered through the whole organization. (Weebly, 2017) It is therefore suitable for MAS.

Sector

Malaysia Airline System is among the main carriers in Malaysia. Contrasting and different aircrafts that are found in Malaysia, MAS can be considered as the best carrier. However, after the weird plane crash of the plane number MH370, Malaysia Airline System begun to lose their offers. Malaysia Airline System can end up losing their clients in some routes as a result of the secretive air crash. MAS need to come up with new methodologies for contending with nearby carriers. MAS quit maintaining their business as a global aircraft and they concentrate on flying just in nearby. They lessened the costs of the carriers They need to close divisions for global procedures, so that measure of representatives will likewise need to diminish. As the expenses of the carriers are diminished, they additionally need to lessen the expenses for the workers..

Traditional HR structure operates as a one single centralized team. Which means less HR staff needed and so less costly It is therefore suitable for MAS.

Structure

MAS is a centralized organization and decision making tend to be centralized.

Traditional structure is also centralized and decision making is centralized and so is suitable for MAS.

Culture

MAS is a centralized organization and decision making tend to be centralized.

Traditional structure is also centralized and decision making is centralized and so is suitable for MAS.

Recommendations

Rationale

For the Malaysia Airline to survive, it needs to learn from its mistakes. It must come up with a way of responding to crisis. It should cater for the emotional needs of its customers. It should come up with ideas on how to handle a crisis better in future. The company should rebuild its relationship with its passengers in order to refill its planes, mostly the Chinese and the Dutch (Sparrow, Brewster & Chung 2016). It should try and regain trust from both its domestic and international markets. The airline should offer favorable rates to its passengers so as to win them back.Alternatively, the airline can reward those that have their loyalty card or those that fly often but only for a fixed period of time. They should...

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