Challenges of Organizational Leadership in Air Asia

Running head: ORGANIZATIONAL LEADERSHIP
Organizational leadership
Name of the student
Name of the university
Author note

1ORGANIZATIONAL LEADERSHIP
Table of Contents
1. Introduction..................................................................................................................................2
2. Discussion....................................................................................................................................2
2.1. Determination of identified issues........................................................................................3
Merger and acquisitions...........................................................................................................3
Cultural diversity.....................................................................................................................3
Organizational policies and cultures........................................................................................4
Rapid changes in technology...................................................................................................5
Crisis management...................................................................................................................5
Staff’s ethics and behaviors.....................................................................................................6
2.2. Impacts of the identified issues.............................................................................................6
2.3. Recommendation......................................................................................................................7
2.4. Case analysis.............................................................................................................................9
2.5 Conclusions..............................................................................................................................10
Reference.......................................................................................................................................11

2ORGANIZATIONAL LEADERSHIP
1. Introduction
Increasing complexities in the current business scenario are causing the contemporary
entities in facing diverse challenges and issues in their business operations. In addition, with the
evolution in the business state of affairs, it is important for the business organizations in
initiating multiple strategies in managing the business viabilities. One of the major challenges
being faced by the contemporary business entities is the employee management. This is due to
the reason that currently, workforce is more diverse in nature comprising of employees from
different social and cultural backgrounds (Jonsen et al., 2013). Hence, the contemporary business
organizations are facing multiple issues and challenges in respect to the human resource
management as well as and it is affecting their business growth approaches. It is a good approach
Air Asia is one of the leading airliners in the Asian region with having their presence
across different Asian countries. They are also being certified as the airline with the lowest
operating cost in the world. Air Asia is based in Malaysia and they are having their subsidiaries
across different countries such as Thai Air Asia and Air Asia India. However, with the intense
competition in the global airline industry, they are facing the imminent need of initiating
multiple growth practices, which are further posing challenges (Homsombat, Lei & Fu, 2014).
This report will discuss about the major problems being faced by Air Asia in terms of their
mergers and acquisitions, cultural diversity, policies and employee behavior. The major impacts
of the identified issues on the company will also be discussed in this report along with the few
recommended steps. These recommended steps will include motivational and leadership
practices.
2. Discussion

3ORGANIZATIONAL LEADERSHIP
2.1. Determination of identified issues
Merger and acquisitions
One of the major issues being faced by Air Asia is in the forms of merger and
acquisitions. This is due to the reason that they are having multiple mergers and joint ventures
with different domestic airliners in different countries such as tie up with Tata in operating in the
Indian market. The major challenge that is being faced by them is the alignment of their existing
corporate culture with that of partnered firm. This is due to the reason that different airliners are
following different business strategies and marketing objectives (Duchin & Schmidt, 2013). It is
difficult for Air Asia to match their business objectives and operating approaches with that of the
partnered firm. On the other hand, it should also be noted that human resource management
based issues are also being faced by Air Asia due to the merger and acquisitions. This is due to
the reason that employees of Air Asia are having the difficulty in getting accustomed with the
different organizational culture of the partnered firm. This is leading to the cultural clash
between the employees of the two entities.
Cultural diversity
Cultural diversity is another area where Air Asia is facing issue similar to other
multinational entities. This is due to the fact that in the current time, these entities are having
employees from different countries and cultures and these employees are possessing different
approaches towards organizational challenges, which is causing issues. In the case of Air Asia,
the approach of their home country and host country employees is different, which might take a
toll in their service process quality. For instance, the major challenge of the cultural diversity is
in the form of the decision making process due to the fact that building of consensus is difficult
among the diverse sets of employees. Cultural diversity is not only covering the internal