Culture and Organisation Essay

1. IntroductionEstablished in 1993 and commenced operations on 18 November 1996, businessAsir was origin entirelyy showed by a government-owned conglomerate DRB-Hicom. On 2 December 2001, the heavily-indebted respiratory tract was purchased by former South East Asiatic regional vice-president Warner Music Group Tony Fernandess troupe Tune Air Sdn Bhd for unmatchable ringgit. AirAsia Berhad is a Malaysian execrable- bell airline. It operates scheduled domestic and global flights and is Asias largest low-f ar, no-frills airline. AirAsia is a pi atomic number 53er of low-cost flights in Asia and was excessively the first airline in the region to implement fully ticketless travel. Its main(prenominal) base is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International aerodrome (KLIA). In 2010 AirAsia won the Skytrax Worlds best low-cost airline award.Air Asia budget with no-frills airline is introduced by Tony Fernandes with the tagline categoric everybody fuck fly a nd the man himself is also the founder of Tune Group. No force out surcharge and no admin fee. However, ticket fare and airport tax pick up to be paid. This was after vast deliberation as the initial tenderize was fifty sen. Fernandes proceeded to engineer a remarkable turnaround, turning a kale in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US$0.27).2. Identification of central issueThe main issue that leave behind be discussed in the analysis exit be Tony Fernandesset of determine and beliefs that molded the guild corporate polish. In six words, corporate horti civilisation is How we do things around here. Corporate agri cultivation is the collective behaviour of people utilise common corporate vision, goals, sha inflammation determine, beliefs, habits, casting language, systems, and symbols. With the tagline introdu ced by CEO of AirAsia Tony Fernandes Now everyone heap fly, AirAsias philosophy of low fares is aimed to make flight affordable for everyone. AirAsia also aims to make travel voiced, convenient and mutant for its leaf nodes. A firm believer in big dreams, can be found online (Profile-Tony Fernandes of AirAsia, 2006) Tony Fernandes famously once said, We Asian apply this habit of kicking ourselves and maxim it cant be done. Anything is possible when you put your mind to it. (http//www.rdasia.com/a_dream_ discovers_flight/, no date). At AirAsia, there is a sense of being in a good family.Tony Fernandes believes that his employees are his greatest assets and encourages a stopping point that emits dogmatic vibraphone to view that every player in the team is committed and merged to set about achieving their shared goals. He once said in an interview, We do every bit we can to succeed, including making sure that we deplete the right tune at race. Keeping our culture intact e ntails a lot. We fork over to make sure that we stay genuine to winning values and traits diligence, appreciation for diversity, discipline, flexibility, honesty, friendliness, passion for learning and excellence, and a genuine concern for the well-being of each(prenominal). This shows that he began by setting the right foundation on which his follow operates on. Maintaining the AirAsia culture is a lot of work, but it does non mean all(prenominal) work and no fun for the employees. According to Tony Fernandes, the AirAsia provides are all quite an happy to devote towards observeing what they call coating All Stars.Organisational culture (hrm ASIA, 2010). It is what their achievement has been girded on and what keeps their module coming back for more(prenominal). Tony Fernandess credo, Believe the unbelievable. Dream the impossible. Never take No for an answer has all the agency helped shape the AirAsia culture to what it is today. (http//www.rdasia.com/a_dream_ takes_flight/, no date). Weve somehow managed to keep this uplifting atmosphere going for us, and we attribute our success to our collective faith in, and commitment to, our raison detre Now everyone can fly. Organisational culture (hrm ASIA, 2010) We entrust next delve deeper for a better understanding of how the values of the Corporateculture turned AirAsia into one of the leading airlines in Asia.3. Outline of the theoretical frameworkWe will be using the triplet levels of boldnessal culture as defined by Edgar Schein (2010) to analyse AirAsia. Culture, as formally defined by Schein (2010, p.18) is a archetype of shared basic assumptions learned by a mathematical collection as it solved its problems of external adaptation and internal integration, which has worked well comme il faut to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. The three levels of culture are to wit artifac ts, espoused beliefs and values, and basic be assumptions. Artifacts are described by Schein (2010, p.23) as the summon level of culture, as they can include the things that a person see, view and feel when they join a new group and are experiencing their culture for the first time. Artifacts are visible and feelable structures and processes, and can also be an spy behavior. However, one drawback is that they can be difficult to understand and decipher (Schein, 2010, p.24). Thus, the true culture of the organization cannot be understood by solely spirit at the artifacts.To understand more, it is necessary to look at the next level. Espoused beliefs and values are goals, values, aspirations and ideologies shared by everyone in an organization. Normally, these values are place down by the leaders or founders of the organization (Schein, 2010, p.25). However, espoused beliefs and values can sometimes be mutually contradictory (Schein, 2010, p.27). Thus, the organizations culture is only understood meet on the surface level. Basic underlying assumptions, which are unconscious and taken-for-granted beliefs and values provide for a deeper understanding of an organizations culture. Schein concluded that the essence of a culture lies in the pattern of basic underlying assumptions (Schein, 2010, p.32).If the basic underlying assumptions are not deciphered, it will be hard to understand the artifacts and espoused beliefs and values correctly. As Schein (2010, p.32) himself had concluded, any groups culture can be studied at the three levels. The three levels of culture allows for an analysis of AirAsias organizational pagan from an empirical level. Information can be readily drawn from business reviews, countersign articles on AirAsia, interviews with AirAsias founder Toney Fernandesand AirAsias website, thus making Edgar Scheins three levels of culture an ideal model for analysis of AirAsias culture.4. summary5.1 ArtifactsIt is a normal procedure to have an induction organized by the charitable Resource precaution team to welcome new employees into the AirAsia corporation. A corporate culture department in AirAsia was set up in August 2004 to promote the AirAsia spirit and family atmosphere through close conversation and exciting activities designed especially for AirAsia employees. This act supports the statements made by Tony Fernandes that his employees are the driving force behind the brands success. The intent is to see that the AirAsia employees across the world uphold the culture of mavin PEOPLE, ONE CULTURE, ONE AIR ASIA and ONE FAMILY to reach the goal of ensuring the best pass at ONE AirAsia wherever they fly. The people of AirAsia are their asset, and their dedication, determination and patience have made AirAsia a success story. They have built conducive and positive AirAsia culture that permeates all the line of operation. annual propound (AirAsia, 2006).There are five published list of values at AirAsia that ar e inculcated in the employees refuge, passion, wholeness, caring and fun. These values provide a frame of reference for AirAsia experience and a corporate culture in which they live and deliver full point mathematical process. Tony Fernandes usual style of dressing at work also reflects the culture at AirAsia. He goes to work wearing his trade mark red AirAsia cap, short sleeved t-shirts and a pair of jeans which are sometimes cured than his employees. By doing so, he is able to break the psychological barrier of dialogue in the midst of himself and his employees and get everybody to talk and give invaluable ideas. As mentioned earlier, the great unwashed are AirAsias best asset. Tony Fernandes would like to shape a flat structure, where everyone has access to the big boss and that allows him to get the best people and violate their potential and talents. A fine example of such discovery of talent would be Azmir Hashim, a former Guest Service staff who successfully gradua ted from AirAsias cadet pilot course of instructionme.This proves that Tony provides support that fulfils the dreams of his employees. In this way, Tony Fernandes has created a friendly and approachable working surroundings within his company. Tony Fernandesphilosophy of low fares aimed to make ephemeral affordable for everyone while providing convenience and fun for its guests across the region is reflected by the successful Airbus A320, which is known for its fuel efficiency, high dependability and low operating(a) costs. The Airbus offers guests greater width space, a quieter ride and uncomparable comfort. In December 2007, AirAsia became the largest Airbus A320 customer in the world. The fleet consists of 56 Airbus A320 aircraft lot across Malaysia (44 aircraft), Thailand (8 aircraft) and Indonesia (4 aircraft) as of the end of 2008. Annual make-up (AirAsia, 2008). Through this approach, AirAsia has greater flexibility to meet the needs of each market while make on the cost efficiencies of operating one aircraft type.5.2 Espoused Beliefs and ValuesAt AirAsia, where Tony Fernandes aims to create the best environment within the company to work in, employees are treat as part of a big family, and being family, safety ever so comes first. AirAsia has committed itself to a programme of reducing risks and hazards normally associated with the aviation industry through a golosh Management System. This commitment is extended to ensure the full integration of a safety culture, safety policy and safety objectives in a proactive approach to aviation safety. In short, the Safety Management System is not just an add-on but a aggregate part of AirAsias business process. A Safety Management System relies on the development of a informing culture by all employees and is a vehicle for ensuring that hazards and safety deficiencies are brought to the attention of those who have the authority to make variety shows. CEO Tony Fernandes has pledged that he would no t take disciplinary action against any employee who dared to make a stand and report a safety hazard to the companys guidance, and no staff member will be asked to compromise AirAsias safety standards just to get the job done.Training of employees to ensure they can perform their tasks in a safe and efficient manner is an essential ingredient of AirAsias Safety Management System. It is managements responsibility to make in stock(predicate) and carry out this develop, and it is the employees responsibility to follow safe working practices, said Tony Fernandes, who highlighted that safety is a core value of his company. Annual report (AirAsia, 2010). To Tony Fernandes, the staff members are thepillars of his company, where everyone has a chance to shine regardless of their race, gender, creed, age, disablement religion and sexual orientation. The vital thing is to ensure quality work from the staff, and Tony Fernandes believes all these start from providing a happy workplace for t hem. The Junior move Club was set up in 2008 to encourage interaction and fellowship between the families of AirAsians.The objectives of this Club is to allow the children of the AirAsia staff members to understand their parents jobs, hone their characters and leading skills, impart them with knowledge on various subjects and tap on their creativeness by participating in activities together. The aim is to maintain a tidy balance between work and personal life so that it will result in higher efficiency in work performance at AirAsia. This is an example of how AirAsia lives up to its promise of Valuing Our People. Annual report (AirAsia, 2008). Another main value at AirAsia is to enhance the guests experience by improving speed and efficiency at every interface between the guests and the airline. A comprehensive Microsoft-based Customer Relationship Management (CRM) system was deployed since 1 April 2010. This Customer Relationship Management (CRM) system integrates its various sales, service and selling initiatives onto a single platform which allows AirAsia to interact with guests on a more informed basis and tailor its services to meet individual guests needs.From reservations and check-ins, to luggage handling, boarding and in-flight Customer Relationship Management (CRM) takes care of them all. AirAsia supervisory staff members are strategically located at the airports to provide on-the-spot help to the guests. There are also Service Counters in the departure halls to call enquiries. In 2010, AirAsia introduced new mobile phone apps for smart phones which makes booking-on-the-go more convenient. In January 2011, AirAsia also introduced the concept of web and self check-in. This allows guests to check in from their laptop computer or computers days before their departure dates. Guests can also chop-chop key in their flight details at kiosks at the terminal airports to obtain a boarding pass without having to queue up at a counter when they do sel f check-in. All these new implementations servicing to make good its promise to make travel easy, convenient and fun for its guests. The Board of Directors of AirAsia is committed in ensuring the highest standards of corporate governance are apply throughout the Group.Reviewing adequacyand integrity of the Companys internal controls is one of the duties and responsibilities of the Board. The Board is made up of Non-Executive Directors, and they are persons of high calibre and integrity who collectively possess rich experience. It is required that all Non-Executive Directors are fissiparous in character and judgement who do not participate in the day-to-day management of the company and do not involve themselves in business transactions or relationships with the Group in order not to compromise their objectivity. In order to improve the overall organizational authorisation and to uphold the integrity of the Company in the eyes of the public, the Company has updated the whistleblo wing program during the year which acts as a formal communication channel where all stakeholders can communicate their concerns in cases where the Companys business put up is deemed to be contrary to the Companys common values.All concerns will be addressed to the Chief Audit Executive (Audit & Consulting Services), who will then(prenominal) assess all concerns reported and recommend the appropriate action and all details pertaining to the name and position of the whistleblower will be unplowed strictly confidential throughout the investigation proceedings. Mazliana Mohamad was appointed the Regional psyche of Audit and Consulting Services in 2010. Her main graphemes include providing independent and objective assurance and consulting services designed to improve the effectiveness and efficiency of AirAsias operations and integrity of the financial reporting and to ensure compliance with relevant laws and regulations. Practicing the highest standards of ethical behavior and dem onstrating honesty in all the line of work is vital to gain trust and command mutual respect at AirAsia, and this is in line with Tony Fernandes beliefs of his companys winning values. desktop goals beyond the best and reinforcing high quality performance standards is to support AirAsias values of Excellence in Performance. In its endeavor to be a full-fledged self-sufficient airline, AirAsia has set up its own honorary society which commenced operations in April 2005 with a vision to provide and fulfill training needs that would support their mission to deliver low-cost, high quality benefits to their customers across the region. The Academy is a one-stop, comprehensive learning centre and caters to all the eventful and necessary needs for all its employees. This includes pilots, engineers, cabin crew, ramp support and guest services front-line staff. The curriculumundertaken conforms to international standards and this training facility complies to all the regulations of the Mala ysian part of Civil Aviation, Thai Department of Civil Aviation, Indonesian Department of Civil Aviation and Civil Aviation Safety Authority Australia. Annual report (AirAsia, 2008).5.3 Basic Underlying AssumptionThere is a great sense of empowerment of AirAsia enhanced by an open office layout which encourages easy interaction between everyone and flat hierarchy that breaks down psychological and cultural barriers. All staff (All Star) can approach any member of the management team to voice out an opinion or share an idea. unassailable ideas, proposed by anyone, can be implemented quickly because there is subatomic bureaucracy. At the same time, bad ideas can be scrapped just as fast. The AirAsia staff members understand that generating ideas is not limited to the directors and executives of the company and that everyone can contribute ideas regardless of their rank in the company.This informal structure means not only that there are more than 8,000 brains (of All Star) contribu ting to the company performance as opposed to just 20 or so at management level. It also helps to keep costs down by tapping on internal resources as opposed to paying for outsourced external help. Human capital development at AirAsia is about providing opportunities to their people (All Star) opportunities such as fulfilling the dreams of the cabin crew and ground officers to become pilots. This helps to develop talents within the company and saves cost on hiring a brand new employee who needs to be trained from scratch. With the basic assumption of Now Everyone Can Fly, AirAsia is operating in a cost optimization philosophy to make flying affordable for everyone.5. ConclusionWith the foundation that Tony Fernandes has created, the AirAsia staff members are currently in a friendly workplace with a flat hierarchy. This creates a conducive working environment where everyone can perform at their best. With the low cost implementations in place, AirAsia has continued to deliver its pr omise of affordable airfares with reliable services. As a company previously with almost RM40 millions in debt, AirAsia has made awesome progressive steps to where it is today, thanks to the leadership of CEO Tony Fernandes. With the growth that sees AirAsia currently in 18 countries, it has potential to progress even more. Continued success creates strongly held shared assumptions, and thus a strong corporate culture core. If the internal and external environments remain stable, this continues to be an advantage.However, if there is a change in the environment, some of those shared core assumptions can become liabilities, but because of their strength. An example is a change of leadership in the company. Tony Fernandes created the very environment AirAsia is right now. But when the time comes for him to leave the company, the culture may decrease along with his departure. New leaders who come into the organization who do not share or value the core assumptions on which the organi zation was built may result either from the departure of the key culture carriers and the inability to find replacements with the same values and assumptions, or because the board wants to change the core culture and deliberately brings in outsiders with different values and assumptions. Schein (2009, p.171).6. RecommendationsFrom the analysis so far, we can see that AirAsia values its employees as much as its customers. The show up is the environment created for its staff and its fulfillment of promises made to its customers. However, the leadership for AirAsia should not be taken for granted. In the face of the possible threat that Tony Fernandes may pass his role one day, career development programs can be roll out to protect and preserve AirAsias culture. Top performing staff such as directors and executives could undergo training to prepare themselves for this potential role in the future. An internal candidate would be more suitable as this person would have been exposed t o the AirAsia culture and familiar with the way AirAsia operates.This program in place would likely ensure that the AirAsia culture can be preserved, and AirAsia will also retain its position in the aviation industry. forth from this, regional meetings and team building sessions are recommended to be held periodically to keep the region abreast of each others activities internally, and it would also strengthen relationships between employees from different countries. This will also ensure that AirAsia is consistent in their visions and beliefs regardless of theirlocation. In conclusion, AirAsia is doing a great job and they should preserve their culture and continue with their mode of operation to enjoy success in the future.7. References1. 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