Culture Air Asia Case study 2022

Organizational Culture
Air Asia
Student’s Details

Culture: Air Asia 1
Contents
Introduction......................................................................................................................................1
Air Asia: Background......................................................................................................................1
Organisational Culture.....................................................................................................................2
Cultural theories...........................................................................................................................3
The theoretical framework of organisational culture.......................................................................4
Organisational cultural model or onion model............................................................................4
Artefacts and symbols..............................................................................................................5
Espoused Values......................................................................................................................5
Core Assumptions....................................................................................................................5
Cultural change............................................................................................................................6
Analysis of practices and issues......................................................................................................6
Artefacts in Air Asia....................................................................................................................7
Espoused Values and Beliefs.......................................................................................................7
Assumptions in Air Asia..............................................................................................................8
Conclusion.......................................................................................................................................8
Bibliography..................................................................................................................................10

Culture: Air Asia 2
Introduction
Managers need to understand the culture of a company for the growth and success of a
business organisation. Interaction in cross-cultural situations is crucial. Poor awareness and lack
of understanding about cultural might lead a poor impact on organizational strategies or business
decisions. Thus, increases in developing a successful business understanding of the culture of the
organisation are essential (Matthews & Thakkar, 2011).
Organizational culture is defined as shared values, beliefs, assumptions, and ways of
communicating and interacting for the social contribution of an organisation. Organisational
culture defines an organisational environment that includes organisational values, expectations,
and experiences that guide to organisational members to behave in a certain manner. Members of
an organisational reflect organisation by self-image, working ways, in future expectations and
the way they interact with the outside world (Gotham Culture, 2020).
Air Asia is a low-fare Malaysian airline company known for its prominent work culture
in the world. It is the organisational culture of the company that makes to the company as one of
the healthiest cultural company in the aviation industry. Role of organisational culture in the
event of the company has been discussed in this study. The company faced an acute downfall
and was in huge debt before 2001. Due to huge debt company has been sold to Tune Air Sdn
Bhd Company in the year 2001. In the new leadership of Tony Fernandez, company regained the
market position (Chowdhury, 2018). To understand organisational culture of Air Asia
resahped event of the company has been discussed. Further, this study discusses the
organisational culture of Air Asia to know the concept of organisational culture and recreation of
the organisation with applying theoretical framework given by various social scientists such as
Hofstede and Edgar Schein.

Culture: Air Asia 3
Air Asia: Background
Air Asia is a Malaysian based low-fare airline established in 1993, headquartered in
Kuala Lumpur, Malaysia. The airline company originally founded by a government based
company, later in the year 2001 it had been sold to Tune Air Sdn Bhd due to heavy debt. Now it
is the largest airline in the country with operating domestic and international flights all over the
world (Air Asia Berhad, 2009). Enormous affords and hard work of organisational leader
namely Tony Fernandes launched new hubs within one year's shorter time and in 2003 launched
its international flight and started to operate in international flights. Now it has become a second
powerful airline in Malaysia. The company is growing continuously at an international platform
with having the vision of becoming the largest low-cost airline in the continent and serving
millions of people who are unserved due to cost and low connectivity (AirAsia , 2011).
Organisational Culture
Organisational cultural theories focused that in an organisation common set of values,
beliefs, practices, and assumptions shared by the people or group of people in the organisation.
Organisational culture is a multi-dimensional aspect in which majorly includes seven key
dimensions to make organisational culture. Structural stability is one of the major dimensions of
organisational culture. This organisational structure shows the organisational hierarchy in the
organisation. This hierarchy is built to organisational members and bound them with values and
beliefs. An organisational culture has a wide range throughout the organisation. Within the
organisation, culture tends to be universal and touches every part of the organization. Members
of an organization accepted the culture to be part of the organization. Culture is so deeply
inherent that it presents any group of people within the organization. It is difficult to separate or
cut off the people from the culture. When organizational managers act in a certain manner, peers