Analysing AirAsia Organisation

Background of the group AirAsia

Asia’s largest low-cost airline. AirAsia is founded in December 2001 by Tony Fernandes (Fernandes) and Dato Kamarudin (Kamarudin). The head quarter of AirAsia (Red Q) at Kuala Lumpur, Malaysia which is modern workplace and excellent for worker. Fernandes and Kamarudin had no prior expertise on operate airlines however they lead AirAsia into one of many quickest rising and most successful low fare airways in the world. A firm success comes from cause. Besides the advertising doing nicely in AirAsia the opposite elements that made AirAsia success are its distinctive tradition and management style.

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According to the Harvey, (2012) interviewed the founder of AirAsia, Tony Fernandes quoted and saying this.In AirAsia we think about ourselves basically a dream factory. We intentionally decided that we wished an organization where individuals can pursue their ardour and we wished to make use of all of the talent that we’ve in-house. The culture that we have stems from the reality that we would like openness and we would like people to be inventive and enthusiastic about what they do.

In order to do this, we’ve got to encourage them.

Tony Fernandes

Fernandes created an surroundings where each Allstar can be learn, develop and obtain his or her own goals within the dream manufacturing unit identical to himself. From the office design which can represent AirAsia is taking care Allstar, there have a clinic called ALLSTARS CLINIC in the RedQ to ensure the welfare and well being of the staff are taken care off. This also from Fernandes’s goal workers come number one, customers come quantity two.

If you’ve a cheerful workforce they’ll take care of your buyer anyway. A tragedy strike on AirAsia that made the corporate to face a disaster on 28 December 2014, AirAsia flight QZ8501 crashed. This report makes use of Schein concept to analysis the issue of flight QZ8501 crashed and the way AirAsia group tradition adapted. For aviation area, the largest crisis and challenge for a corporation is after an accident happened, Airasia flight QZ8501 was carrying 162 passengers and crew and taking off from Surabaya, Indonesia, nonetheless it disappeared from radar screens and the airplane wreckage discovered after few days (AirAsia Indonesia flight QZ8501 to Singapore missing,2014).

Explain/ Justify the chosen theoretical framework instead of 1 other different that I considered however have rejectedI shall be utilizing the three ranges of organizational culture as defined by Edgar Schein (1985) to evaluation AirAsia tradition. Organizational cultures are created by leaders, and one of the determination maker in leaderships might be the creation, the administration, and-if and when that may turn into necessary- the destruction of culture (Schein, 1985). The theory is outlined crucial factor is chief who do is to create and handle tradition and also work with culture. There have on different different I considered to analysis AirAsia organizational tradition which is Harrison (1972) model. Harrison’s model splits culture into 4 classification, which together with Role Culture, Task Culture, Power Culture, Person Culture (Harrison, 1972). Most of the organizations are probably to give consideration to one or another of them. For the case if AirAsia apply to Harrison model, AirAsia is belonged Person Culture which mainly to serve the necessity of its members. Individuals inside the organization are allowed to pursue their very own destiny and get on with their roles within considerable interference. However the particular person tradition disadvantages are issue directing its member, tough to attain inner cohesion (Harrison, 1972).

The reason I rejected to use Harrison mannequin to analysis AirAsia’s group is due to the particular person tradition drawback cannot be apply to AirAsia. The drawback as talked about before was not happened in AirAsia. As the best of Fernandes was not going to direct the member however to creating everybody more accountable and giving them extra autonomy to get on with their jobs (Fernandes, 2017).3. Explain the Main Concept of Edgar Schein TheoryA pattern of shared basic assumptions that the group realized because it solved its issues of exterior adaptation and inside integration, which has worked nicely sufficient to be thought-about valid and, due to this fact, to be taught to new members as the right means you perceive, think, and really feel in relation to those problems (Schein, 1985). This definition continues to clarify organizational values, beliefs and concepts in regards to the workers to pursue and achieve the goal. According to Schein, culture is essentially the most troublesome organizational attribute to alter, organizational products, providers, founders and leadership and all different physical attributes of the organization. His organizational mannequin explains culture from the standpoint of the observer, described by three cognitive ranges of organizational tradition.

At the first and most outside level of Schein’s mannequin is organizational attributes that could be easy to seen, felt and heard by the observer which is artifacts and creation. This is including the amenities, places of work, furnishings, seen awards and recognition, the way in which that its members gown, how each particular person visibly interacts with each other and with organizational outsiders, and even company slogans, mission statements.The second level additionally the center degree is the values and beliefs. At this stage, native and private values can be expressed inside the group. The moral and ethical code would shape a company. The values and beliefs must be adopted through to create a tradition in an organization.At the third and deepest level is the organization’s basic assumptions, the core which is an important for an company. These are the weather of tradition which would possibly be invisible and never cognitively identified between organizational members every single day. This is existing unstated guidelines between the organization and employee. Those with adequate expertise to grasp this deepest degree of organizational tradition usually become acclimatized to its attributes over time, thus reinforcing the invisibility of their existence (Patnaik, 2011). For a company, first determine then perceive organizational tradition at this degree. Using Schein’s model, understanding organizational behaviors turns into more noticeable. Organizational rewards can indicate one organizational norm however at the deepest stage suggest something completely totally different. Therefore, the organizational mannequin of Schein is essential as a result of it reveals how culture works by presenting the tradition of a company at three ranges.

Analysis of the difficulty with Edgar Schein Theory

A tragedy strike on AirAsia that made the company to face a disaster on 28 Decemeber 2014, AirAsia flight QZ8501 crashed. There was lots of debate about whether Fernandes should go to Indonesia or keep put and let the Indonesians handle when the accident was occurred, he didn’t care what the people stated, he assume he had to go there. Fernandes thinks the reasons had been easy, I needed to be there as a result of my staff had been killed and I had to be there for the families of the passengers (Fernandes, 2017). He might do was be there and answer whatever questions the passengers households had. The staffs have been subsequent on Fernandes’s list, he visited the AirAsia Indonesia places of work to reassure and comfort them. The firm is like a household and the tragedy was not just about the passengers, it was concerning the lack of associates and colleagues in a close-knit group, this utilized to all AirAsia, not simply the Indonesian firm (Fernandes, 2017). From this tragedy, AirAsia symbolize they are concern Allstar, after the CEO Fernandes went to the Indonesia to visit the victim’s household, the second thing he did which is visited the AirAsia Indonesia workplaces to consolation them and sent an email to Allstar a couple of conversation with a sufferer family member, the aim was to help the workers understand that the families weren’t blaming AirAsia fully for the loss of their loved ones. From the dialog, it reveals how did Fernandes respect and care the customer, how does the customer support and admire AirAsia’s goal, how did Fernandes deal with strikes to all workers and have confident to the corporate. This is applied to Fernandes’s philosophy which all through enterprise career is that you need to always be clear and trustworthy, your small business is your people that are still one of many strongest elements of AirAsia culture (Fernandes, 2017). Fernandes believes that his employees are his best belongings and encourages a culture that positive vibes to ensure that the whole participant within the staff is dedicated and achieving their shared targets.

Basic Assumption in AirAsia

The deepest degree of tradition and its essence (Schein, 1992) is the essential underlying assumptions. These are the unconscious, taken as a right beliefs and feelings about the organization. The fundamental assumptions are essential as a outcome of it allows the group to build its own integrity, identification and autonomy and thus differentiate itself from the opposite teams (McLaurin and James, 2008). Fernandes once stated We Asian have this behavior of kicking ourselves and saying it can’t be accomplished. Anything is possible whenever you put your mind to it. At AirAsia, there is a sense of being in a great family. The two largest causes of unhappiness in a corporation are places of work and job titles. For years I have wished to take away job titles from enterprise playing cards ” other than emphasizing the title somewhat than the role, they shut down a conversation about what you do at an organization, hierarchy is one weight I’ve tried to reduce at AirAsia. Another is forms, which I suppose is possibly the most important enemy of an organization (Fernandes, 2017). Fernandes break down the hierarchy, thus AirAsia is flat hierarchy now, this is to encourage individuals to speak up and get each mind within the recreation by stress-free formality and breaking down walls. Allstar may be strategy any administration level to voice out an opinion and share the concept, there’s the platform and alternative to let all the workers to say it without worry ultimately. For instance, Fernandes withdrew some discounted flight coupon because they had been being abused, after that he obtained lots of messages to complain about it, the staff complained it was wrong, unfair and suggests a different way to tackling the problem (Fernandes, 2017). After Fernandes listened to the ideas and the corporate reformed the coverage in six hours.

The Allstar perceive that propose an idea isn’t restricted to senior administration of the corporate and everybody may be contribute concepts no matter their tile in the company. Wherever I spend time within the AirAsia household I get ideas and decide up ideas. Way again in 2004, one Allstar instructed we fly to Macau. We’ve been going ever since and now function 4 flights a day from Kuala Lumpur and extra from other hubs (Fernandes, 2017).RedQ was Fernandes and Allstar designed collectively, has no workplaces. Everything is open plan other than a sequence of glass-walled meeting rooms (Fernandes, 2017). It’s so important to have an area without brick partitions, it encourages the staffs to speak freely and it eliminates office envy.The different important determination I took was to attempt to convey everybody together. The staffs had been originally fairly isolated, earlier than the RedQ build, pilots spoke to pilots, engineers to engineers, cabin crew to cabin crew. After the AirAsia head office RedQ is developed, it actually modified the working surroundings, each celebration have communication. I’m endlessly studying new things, and I wish to encourage it as a key element of our corporate culture at AirAsia (Fernandes, 2017). In AirAsia, the corporate at all times provides opportunity and respect to Allstar. There is a case that proved AirAsia had carried out this into the employees. According to Harvey’s interview, when a lady requested Fernandes was she potential to be a pilot, Fernandes encourage her go to the category to check about it (Harvey, 2012). She grew to become a primary ladies pilot in Malaysia (Toh, 2012). It additionally permits Allstar to understand their desires within the dream issue identical to Fernandes and Kamarudin live their desires, it is certainly one of the reasons Allstars love their jobs at Airasia.

Values and Beliefs In AirAsia is throughout Trust. According Harvey interview, all workers has Fernandes contact quantity from errand boys to the senior management will simply name, SMS and e-mail to him instantly (Harvey, 2012). When they have any problem they would contact him instantly, in order that every thing solved very quickly. Besides of Allstars have Fernandes contact quantity, he also gave his contact number to each victim family in QZ8501, and he’s nonetheless in touch with a variety of the households (Fernandes, 2017). He gave his number to everyone and opens to all topics, which is an effective communication without paperwork primarily based on trust. From the Harvey’s interview, AirAsia is meritocracy, no matter ethnicity, creed, age and gender, if the workers is succesful, AirAsia will promote or hire you. They hire the right individuals by search for starvation of their eyes and fervour of their hearts. AirAsia recruit people who are determined and are humble, and believes that recruiting people who find themselves humble sufficient to admit the error they’ve made and fixing the problem themselves is the most effective one as properly. This follow additionally poster up on the wall in RedQ Work exhausting. Stay humble (Fernandes, 2017). AirAsia staff was called Allstars by Fernandes triggered of the staff had been loyal and continuously humbling of their dedication.

Artifacts and Creations

This is probably the most visible level of Schein’s model which could be seen, felt and heard by the uninitiated observer. NormsMulti-task, AirAsia is about multi-tasking. This means the staffs usually have to juggle a quantity of equally essential issues on the same time. From the AirAsia web site, workers saying this:You can also find yourself doing many alternative issues for the enterprise. It possibly doing various things in your department or various things across a number of departments. This is regular right here. SymbolsAirAsia is a large company that throughout completely different cities in Asia. The method the staffs talk by preferring inner social media over intranet, and chat message over e-mail. Within AirAsia additionally use cloud-based apps to collaborate with colleagues throughout totally different places shortly. Fernandes saw an article about Facebook’s new platform for business communication, Facebook Workplace, in the Wall Street Journal and then contact with Facebook the next day and signed a deal to put in it for all our workers inside 4 days. Allstars are talking to each other immediately (Fernandes, 2017).

RitesAccording BBC 2010 reported about AirAsia, there have a tradition division whose sole job is to arrange events. This could make the employee really feel the caring nature of the corporate by organizing events. Dress codeAirAsia Group Head of Ground Operations talked about Our people are our most dear belongings as their exhausting work and dedication is the explanation for our proud achievements and success over time. Their persistence in delivering quality and excellence is the vital thing in elevating our model, setting AirAsia apart from the rest of the sector. This impressed us to design new uniforms to further spotlight their professionalism and enhance their performance in offering the best travel expertise for our guests. (Sepang, 2014). The brilliant pink uniform which can additionally be AirAsia corporate color, it also for Allstars represented an added impulse and exhausting work in AirAsia to deliver excessive productivity and performance. The new uniform thought was got here from AirAsia reality show ” The Apprentice Asia, AirAsia posed a challenge to the show’s participants to design uniforms which match with AirAsia’s innovation and entrepreneurial spirit.


By the design of AirAsia headquarter ” RedQ, there have no office and all of the assembly rooms have glass walls, it is an open group (Fernandes, 2017). Nobody has an office even senior administration, the employees is free to stroll to debate factor with senior administration, vice versa. MythsAllstar can categorical their feeling simply and their jobs could be understood by senior administration. AirAsia is among the largest airways and one of many largest companies, that has no union (Fernandes, 2017). As in AirAsia have strong internal dialogue, the employees don’t see the purpose of out of doors illustration, they can still express their serious about the corporate. It can additionally be as a result of Fernandes would get out and doing all the totally different jobs or walking round head workplace to know each side of the company.


AirAsia came out of the tragedy in cheap standing with the common public and dealt with the disaster in one of the only ways they could do by being open, honest and natural to public and employee. What staffs consider the corporate, how they respond to the mission and strategy is extra necessary. Employees come primary, clients come quantity two the staff perceive and assist the corporate beliefs underneath pleased workfore, they’ll look after the client. By using Schein model to evaluation AirAsia group tradition, primary assumption is invisible but it’s the core of a company tradition which affecting the seen attribute of tradition -value and belief. It can additionally be affecting the most seen indicators of tradition ” artifacts and creations. If you take a look at the expansion of AirAsia, it’s been about individuals, tradition, a easy message and a brand (Fernandes, 2017).

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