Tony Fernandes, the CEO of the AirAsia, who is the founder of Tune Air Sdn. Since AirAsia's early days, Fernandes has grown his team by more than 100 times from a staff of 200 and two planes, to an international network of 20,000 running a fleet of 250 aircraft. VISION To become a stable and successful company in the Philippines To be able to penetrate the Philippine Market To be contented with their status as a company To be the best company to work for … But when asked the greatest skill he possesses as a leader, the 54-year-old insists on one thing: His ability to find great people. Nok Air Promotion and Advertising Are Important Factors . Most days he wakes up to hundreds of messages from his staff, he said. EssaySauce.com is a completely free resource for students. His leadership style is not very clear as sometimes we see him as an autocratic leader. As what he believes in the current business scenario where business has become much more competitive so having too much bureaucracy could slow down the growth of the business. The airline employed no-frills, low-fare concept to achieve cost leadership in domestic air traveling. The leadership and management style of AirAsia Berhad in real life mainly look at the basic skills and dependent towards the environmnet. He makes decision based on the urgent state of that current moment. Christopher Davison, co-founder and group chief executive officer of BigPay speaks during the Money20/20 Asia Conference in Singapore, on Tuesday, March 19, 2019. 14 AirAsia Revenue Breakdown Unique Culture & Management Style 10. "Many companies don't realize the value of their people," Fernandes said, noting that his is one of the only airline of its size that doesn't have a labor union — a group typically formed by staff to fight for employee rights. Organization structure Democratic style AirAsia Company use walk around management style that is open plan workplace where everybody does not has their rooms. Staffs in organization don’t have to stay where you are, they don’t have hierarchy. Thus, he adopts a ‘walk around’ management style. After building a successful career as a top exec at Warner Music, Tony Fernandes decided to pack it all in to try his hand at the airline industry in 2001. Thai AirAsia X is the medium and long-haul operation of the brand Thai AirAsia. Essay type Research . Tony Fernandes, chief executive officer of AirAsia. The franchise can keep costs down by using a common ticketing system, aircraft livery, employee uniforms, and management style. AirAsia has a strong management team instead of just a ‘general management’. We've got thousands of real essay examples for you to use as inspiration for your own work, all free to access and download. A business in the service industry is nothing without their clients, and the … Essay Sauce is the free student essay website for college and university students. He is in his polo shirt and with his famous baseball cap. 78 AirAsia Berhad (284669-W) Annual Report 2011 Leadership Senior Management From left: 1. His favorite phrase is ‘better value’. Accounting & Finance TP 023513 UC1F1007BMP (AF) Utari Asmelia Introduction of Management 08 Fall AirAsia Company Analysis Background of AirAsia Company Dato’ Tony Fernandez was the entrepreneur that brought up. Leadership in organization is a very important trend as the leader has a large amount of responsibility to lead the direction and build good organizational culture that expressed the behaviors, rules and values critical to the attainment of an organization’s mission and strategies. To begin with, classical approaches to management have influenced AirAsia a lots and lead to AirAsia became the largest low-cost carrier in Asia under the challenging situation. AirAsia Berhad (Malaysia) | Thai AirAsia Co. Ltd | PT Indonesia AirAsia | Philippines AirAsia Inc. | AirAsia X Berhad (Malaysia) | Thai AirAsia X Co.,Ltd | AirAsia Japan Co., Ltd. | AirAsia (India) Limited. examine the leadership styles of two leaders in managing the two biggest airline companies in Malaysia namely, Malaysia Airlines and AirAsia. Scientific management was introduced by Frederick Taylor in 1911. AirAsia is an airline company in Kuala Lumpur, Malaysia. Available from:
[Accessed 11-03-21]. Leaders who carry good leadership characteristics will benefit the organization and become an icon within the team. Furthermore, the main objective of the airline its self is to capture and … To do that, he said he focuses especially on three things: transparency, appreciation and giving staff the ability to grow. For Fernandes, that also means dressing casually and enabling direct communication lines between him and his staff. He seems to use a more transformational approach which emphasizes the importance of having a good relationship with his employees. He believes that if one sit up in his ivory tower and just look at financial reports, he is going to make some big mistakes. The transportation service company that we have selected is AirAsia. The company also treats the employees as human capital through encouraging the staffs to further develop their both hard and soft skills and do the job that they are really interested and the company work hard at providing such opportunities. These Leadership essays have been submitted to us by students in order to help you with your studies. If you use part of this page in your own work, you need to provide a citation, as follows: Essay Sauce, Leadership (example: Tony Fernandes, CEO of AirAsia). It is the largest airline in Malaysia by fleet size and destinations. Knowing how to keep them is another thing entirely, Fernandes noted. This is because he will not hesitate to take drastic, if not controversial, actions in order to steer the company ahead. He had shown accountability, truthful and not speculating on the situation. This page of the essay has 852 words. He strongly believes in teamwork. It may not be something which he likes but he makes the decision because the situation forces him to train his leadership behavior. This website is owned and operated by AirAsia Berhad (284669-W) (“AirAsia”). The strategy that they have formulated at the beginnings was a clever blend of proven strategies by other low cost airlines is US and Europe. Tony also is a situational leader. AirAsia CEO Tony Fernandez had use a different approached and management styles. Get Make It newsletters delivered to your inbox, Learn more about the world of CNBC Make It, © 2021 CNBC LLC. INTRODUCTION Company's Relation & Partner merit or reward system performance management facilitating a harmonious environment well-compensated “Walk around” management style RECOMMENDATION Collaborate with other department Family day and annual dinner Make a stress management Within a year of purchasing the ailing Malaysian carrier for one ringgit (then about 26 cents), he turned the business around and returned it to profitability. Usage of the AirAsia website states your compliance of our Terms of use and Privacy policy © 2021 AirAsia Group Berhad. ...(download the rest of the essay above). This airport will cost $12 billion to make, From self-made teacher to YouTube superstar: How 'Yoga With Adriene' inspired millions, Victoria Beckham on juggling a fashion brand with family life: 'I just do the best I can', Online yoga sensation Adriene Mishler reveals her top 2 tips for cultivating a strong following, Tony Fernandes decided to pack it all in to try his hand at the airline industry, revenues of 10.6 billion Malaysian ringgit, the world's best low-cost carrier for the tenth year running. He is easily approachable and no bureaucracy involved in his office (Amir and King 2013). The case study will also discuss the culture and management style of AirAsia and its ability to address to the challenges faced by the company. Leaders who carry good leadership characteristics will benefit the organization and become an icon within the team. It is focusing on low-cost with the dream of making flying possible for everyone. ", Don't miss: How to know when to take the leap from employee to entrepreneur. 亚航商务服务(广州)有限公司 粤ICP备17160544号-2 证照信息. While once he said during an interview: “We have grown AirAsia together, with everybody pitching in with ideas, actively finding new ways to increase efficiency, improve services by effectively combining technology and the personal touch, and aggressively and smartly marketing our brand,”. "I think we've been good at recognizing that," he added. Like this story? All employees are free to enter his office if there is anything important needed discussion and needed an urgent solution. More Detail ≫ AirAsia X Berhad. MARIANNE HONTIVEROS Chief Executive Officer & President of Group Finance, Treasury, Philippines’ AirAsia 2. In addition, AirAsia can certainly benefit fromthe increment of luggage allowance to 20 Kg to the passengers, if the upgrade do took place.Furthermore, a good leadership style can affect the entire company in a good way andmotivate employees to be more creative and innovate. Yes! During the tragic of plane crashed last December 2014 in Indonesia. Fernandes adopts a 'walk around' management style. * This essay may have been previously published on Essay.uk.com at an earlier date. Tony Fernandes is a CEO or Director of AirAsia Berhad, a transformational lead who new AirAsia’s industry ideal which is “Today, Everybody Can Hover” a little-price and not one-add-ons strategy and moved down the price cable. Leadership (example: Tony Fernandes, CEO of AirAsia), Role of Judiciary in implementing Environmental Laws, Translation of Quotations from the Prophet and Commenting on Ideological Problems, Informal Traders’ Right to the City: South African Informal Traders Forum v City of Johannesburg 2014 (4) SA 371 (CC), The Role of Amicus Curiae in Commercial Litigation, Criminology: Classical and Positivist Schools of thinking, Kao Corporation analysis (including SWOT), Nike Analysis (including SWOT, Porter’s, 4ps, PESTLE). 2.2 AirAsia current issues. With all of type businesses, employees are the very important human resources that drive the central part of daily’s revenues and profits. EssaySauce.com is a free resource for students, providing thousands of example essays to help them complete their college and university coursework. Then the leadership style and approaches to management come to identify more to workers behaviour that the leader need to concern. The leading low fare airline in the Asia – AirAsia has been expanding rapidly since 2001, to become an award winning and the largest low cost carrier in Asia. "If you look at my team, there's a lot of people who didn't make it or want to prove something.". One of the secrets of AirAsia’s success has been its unique culture and management style. In 2018, the business saw revenues of 10.6 billion Malaysian ringgit (around $2.58 billion). School Harvard University; Course Title PA 1967; Uploaded By bluebonnetc58. I caught up with Tony by phone on 12 November 2012. Being invested in his or her employees will show a leader as concerned and considerate, more like a family in a business rather than just a worker and boss relationship. His office is smack at the heart of the company. However, finding good people is only one part of a leader's job. DATO’ KAMARUDIN BIN MERANUN Deputy Group Chief Executive Officer Corporate Finance and … ©2021 Essay Sauce / Terms of use / Content policy / Privacy policy. In this task, there are two companies which are MYDIN and AirAsia as both run the business differently in term of product and services. A Look At Airasia Management Essay. It has also positive speedily wrecked portable standards around the ball and has escalated to convert the best of the biosphere. Tony Fernandes said “If you sit up in your ivory tower and just look at financial reports, you’re going to make some big mistakes.” Thus, Fernandes believes that employees come first before his customers. Autocratic leadership, also known as authoritarian leadership, is a leadership style characterized by individual control over all decisions and little input from group members. • The fact that Tony Fernandes took the time to work with the staff has already made him one of the best leaders. He is also work as charismatic CEO. Furthermore, the report aims at highlighting the expansions of AirAsia with future expectations. AirAsia has been named the World's Best Low-Cost Airline by Skytrax for eleven years in a row from 2009 to 2019 and the Asia's Leading Low-Cost Airline for the sixth year in a row at the annual World Travel Award from 2013 to 2018. Since AirAsia's early days, Fernandes has grown his team by more than 100 times from a staff of 200 and two planes, to an international network of 20,000 running a fleet of 250 aircraft. AirAsia X Berhad . Fernandes said he was struck by the grit and determination of serial entrepreneur Christopher Davison when he met him in a bar in London — so much so that he decided to take him on as the BigPay's co-founder and group CEO. For example, AirAsia has provided training to employees and there are some stewardess became pilots after the internal training. All Rights Reserved. Pages 13 This preview shows page 12 - 13 out of 13 pages. Especially his office doesn’t have any walls and doors and then everyone can see him and he also can see everyone. Download the full version above. It is more concern in the management internally but rather creating competitiveness. You can view our. The leadership and management style of airasia berhad. The model serves as a useful guide and it allows leaders to adapt their styles when they seek to allocate tasks. He not believe in hierarchical structure and believing in talents within the organization and inspiring employees to achieve their dream as he believes everybody have their own dreams. He did not make any discussion with anyone. He thinks if you have a happy workforce they’ll look after your customers anyway. How Has AirAsia Achieved Cost Leadership and Differentiation Cost-leadership Strategy. The Situational Leadership Model (Figure 3) by Hersey and Blanchard advocates the need of flexibility in adopting varying leadership styles according to situation and subordinate expertise levels (Mullins 2013: 384-385). AirAsia’s principal activity is to provide air transportation services. The CEO of leading low-cost airline AirAsia has proven himself a master of transformation. As the leader in AirAsia, he is easily approachable to all his staff. The website is funded by adverts which cover the cost of our hosting and domain renewal. The company managed to economize its expenses and offer the prices that differed significantly from the prices of the competitors. Clients are everything. However, despite displaying clear terms on our sites, sometimes users scan work that is not their own and this can result in content being uploaded that should not have been. Regarding to the importance of strategic management for AirAsia Company, the next part will discusses about the current issues that happened in AirAsia Company. His leadership style is not very clear as sometimes we see him as an autocratic leader. The simply general management involved in the major four functions of planning, organizing, leading and controlling may not be sufficient to support the whole organization. His leadership emphasizes the importance of good interface among all the staff as he maintains a non-hierarchy practice in the office. In this assignment, we try to probe the leadership style of AirAsia. CONCLUSIONThere are many diverse definitions of leadership and it is believed leadership is a rational and practical approach of influencing followers. You can view our terms of use here. Tony Fernandes is a CEO of AirAsia. AirAsia has gained an award winning and most low-cost airline in Asia. Autocratic leader can do decision based on the group member ideas. Please note that the above text is only a preview of this essay. "Most entrepreneurs think they know it all," said Fernandes, "but you have to listen to all the others around you. Ray is a 15-year finance veteran who spent his early years with external audit firms and multinational companies, before bringing his unique management style to AirAsia. Most of AirAsia’s management are enthusiastic young managers and AirAsia’s rapid growth now requires them to develop their non-technical, ‘soft’ skills in managing and leading others. Most entrepreneurs think they know it all, but you have to listen to all the others around you. Tony Fernandez’s foresight and vision has turned AirAsia to become one popular airline brands in the world. EssaySauce.com has thousands of great essay examples for students to use as inspiration when writing their own essays. Leadership style Tony fernandes is using autocratic for his company airasia. Tony works hard to create an environment where each “Allstar” (what AirAsia calls its team members) can learn, grow and achieve his or her own dreams. AirAsia Philippines CFO Ray Berja said, “This award serves both as an inspiration and a challenge to perform well, especially now that the aviation sector is facing its most turbulent times in history. Many observers believe that the successful of AirAsia is caused by the strong leadership of Tony. AirAsia had shown the fast growth trend and the possible to take the leadership in the Malaysian aviation industry. Any ideas for the benefit of the organization are well accepted and the management rewards these outstanding ideas. In 2018, AirAsia was voted the world's best low-cost carrier for the tenth year running by air transport research firm Skytrax. For example, he wanted to install the mechanism for the handicap people at zero cost. "If you sit up in your ivory tower and just look at financial reports, you're going to make some big … AirAsia Group operates scheduled domestic and international flights to more than 165 destinations spanning 25 countries. The leadership and management style of AirAsia Berhad shows that the. In doing so, he said he prioritized finding team players with good communication skills, while also looking for people with a strong sense of purpose. Subscribe to CNBC Make It on YouTube! All of our essays are donated in exchange for a free plagiarism scan on one of our partner sites. The management team is also very good in strategy formulation and execution. Since 2001, AirAsia has broken the travel norms around the globe and become the world’s best airline. for students : all the ingredients of a good essay, Home » Leadership essays » Leadership (example: Tony Fernandes, CEO of AirAsia). Tony Fernandes is a CEO of AirAsia. Air Asia"s brand name is well established in Asia Pacific. A Division of NBC Universal. Background of AirAsia. Tony introduced the work culture in AirAsia has made a big impact on the growth of the organization as the employees were very happy to move forward in the same direction. He also says that “employees come number one, customers come number two’. If Tony becomes possible to own the concept outright then he wants it. Everyone has the chance to share ideas and they can walk up to the … Employees have been treated as family, they feel very proud to be part of the team. Study of the Difference between Tony Fernandes (Airasia) and Idris Jala (Malaysia Airlines) Leadership Styles from 2005-2009 Arif Kamisan, P1 & Brian E. M. King1 1 School of Hotel and Tourism Management, The Hong Kong Polytechnic University, Hong Kong, China Correspondence: Arif Kamisan, P, School of Hotel and Tourism Management, The Hong Kong Polytechnic University, 17, Science … Students can use our free essays as examples to write their own. This could be supported by analyzing his statement in most of the interviews where he mentioned several aspects of transformational dimensions. Yes! He was able to create good organizational culture and stressed the importance of working as a team. Classical approach is divided into scientific management, administrative principles and bureaucratic organisation.