AirAsia: Enhancing Performance Through HR Management Training

This report provides an in-depth analysis of AirAsia's HR management practices, with a specific focus on training and development strategies aimed at enhancing organizational efficiency and overall success. The report identifies key management issues at AirAsia, including rising competition, increasing fuel costs, and declining employee motivation. To address these challenges, a strategic plan is proposed, emphasizing digital marketing training for executives and the dissemination of knowledge throughout the organization. The plan includes establishing a culture of continuous learning through training and development. Data was collected through questionnaires, interviews, and a review of company reports and literature. The report recommends the adoption of digital marketing approaches, improved leadership and management styles, and enhanced communication strategies to foster a more engaged and productive workforce, ultimately leading to increased market presence, customer loyalty, and improved financial performance for AirAsia.

Running Head: HR Management 1
Training and Development at AirAsia
Name of Student
Name of Institution
Name of Course
Date of Submission

HR Management 2
Table of Contents
Introduction…………………………………………………………………………………3
Company Overview…………………………………………………………………………6
Management Issues at AirAsia……………………………………………………………...6
Strategic plan………………………………………………………………………………..8
Conclusion…………………………………………………………………………………..10
References………………………………………………………………………………...…11

HR Management 3
Introduction
The corporate business world continues to grow more complex with each passing day.
Business organizations are always working on and implementing the best strategies in a bid to
cater for the dynamic nature of the corporate environment. One of the most notable aspects in
most business operations which has changed the scope of activities is the incorporation of
Information Technology into business operations. Most firms have made a transition from the
traditional approaches of systems operation, effectively replacing them with updates ideas in a
bid to enhance efficiency, increase productivity while still maintaining a lower cost of
operations. Some of the advancements in technology has seen the introduction of eCommerce
where most business operations and transactions are completed online. At the same time, the rise
of computer use, smart mobile phones, internet as well as the concept of social media has given
business management a whole new dimension. The changing context of business environments
has seen the emergence of consumers who are aligned to specific needs, preferences, tastes and
quality. In order to adequately address this changes, business organizations need to effectively
package its products, services as well as approaches hence ensuring the enhancement of positive
consumer experiences. It is a fact worth noting that innovations and creativity continue to give
rise to new ideas and management approaches which organizations need to incorporate in order
to maintain a competitive edge (Bodner, Klobuchar & Geelan, 2011).
Due to the incorporation of technology in management, business organizations have been
able to come up with and implement better marketing approaches. These ideas are always aimed
at ensuring that the marketing strategies reach as most target audiences as possible. The
effectiveness of a marketing strategy is largely evaluated by the extent to which the project
influences the interest of the people on the products and services of the given organization. A

HR Management 4
good marketing approach, therefore, ought to attract more clients hence increasing the
organization’s competitive edge and ensuring a stable market. In line with the overview above,
this report entails a discussion on how AirAsia can incorporate the aspect of training and
development of management and employees as a means of increasing organizational efficiency
and overall success (Soltis, 2014). The report shall outline a plan which the company can in turn
incorporate into its system and culture thereby improving its performance. Based on an analysis
of the current status of the company, there is need for staff training and development on the area
of marketing. The training approach shall involve a deviation from the more traditionally and
formally used marketing approaches to the incorporation of technology into the whole process.
The training shall initially focus on the company’s executive who shall be exposed and mentored
on the various aspects of digital marketing. The members of the executive, at the end of the
training session are expected to be in a position to disseminate this knowledge and effectively
distribute to the other members of the organization in addition to its key stakeholders. As part of
the strategic plan, the training is intended to take place over a span of four weeks where the
members of the executive shall not only be taken through a module on digital marketing but a
number of other management approaches which can be incorporated to improve the performance
of the organization. The report shall then be summarized with a list of recommendations on some
of the strategies and adjustments needed at AirAsia for performance enhancement.
The case study major revolves around AirAsia and the management approaches which
have placed it at its current position in terms of performance and market presence. In order to
deduce enough information about the organization, both qualitative and quantitative approaches
in data collection were incorporated. In line with the quantitative approaches, data was collected
through random sampling, use of questionnaires as well as direct interviews. Various members

HR Management 5
of staff and employees at AirAsia. The selections were done based on the position and
responsibility of the individual at the organization (Lombardi, 2011). Once the total population
sample had been obtained, the subjects were supplied with questionnaires which entailed specific
question related to the research issue. At the same time, a portion of the individuals making up
the population sample were given direct interviews which were recorded purposely for the
completion of the research. The core objective of the data collection process was to deduce
information about the current management practices at AirAsia, the overall organizational
performance in terms of market presence, passenger turnover, return on investment and
consistency in terms of both consumer and employee retention. It would be prudent to note that
organizational performance is often anchored on the aspects noted above. The data collection
process was also aimed at deducing some of the management challenges at the company, the root
causes and the possible impacts of such challenges on organizational performance. In order to
achieve this, the questionnaires and the interview questions were carefully structured to trigger
the much needed responses from the subjects. These methods were chosen because they enhance
the reliability and validity of the information obtained for the completion of research. The
samples acted as a good representation of the whole organization hence obtaining their views
would be pivotal in projecting the whole situation at the organization. Apart from the
quantitative approaches, review of contextual literature, company reports, past research on the
organization and other valuable source was used as a quantitative approach of data collection.
The report below is therefore a discussion which is basically anchored on the outcome of the
case study of the organization through the above outlined data collection methods. The report
shall entail a review of the management issues at AirAsia and the best training approaches which

HR Management 6
could be taken be embraced by the executive and management in a bid to enhance the overall
company success.
Company Overview
AirAsia is one of the leading airline companies in Malaysia with its headquarters in
Kuala Lumpur. The organization, despite being a low-cost airline is one of the largest companies
in the industry in terms of number of fleets. The company operates a number of fleets and has
both international and domestic destinations indicating that it commands a fair portion of the
Malaysian market. At the same time, the fact that the company’s flights are scheduled to over 25
countries across the world is an indication of its market presence in the international font as well.
The company report at the end of 2017 however indicates a gradual drop in the passenger turn
over and eventual impact on the return on investment. This therefore implies that despite its good
performance and success over the years, AirAsia is consistently faced with a number of
challenges which may need to be addressed through best practices.
Management Issues at AirAsia
Based on the company case study, a number of issues can be deduced as the possible
causes of the company’s drop in performance. To begin with, AirAsia has constantly struggled
with the issue of the rise of competitors like Malaysia Airlines in the market. The competition for
market space has led to the company losing some of its clients to the rival companies. Low
passenger turnover eventually affects the organization’s financial performance both at the local
and international level (Books & Brooks, 2009). The second issue is the rising costs of fuel
which has led to the company incurring losses especially in cases where long flights are involved
but the passenger threshold number has not been attained. In line with the interviews especially

HR Management 7
on the company’s management team, the changing economic situations and government policies
not only in Malaysia but in other countries has made it quite a challenge for the company to
effectively predict its corporate environment. Additionally, the responses of the employees
during the data collection process indicate a slight decline in motivational levels. The modes of
communication used at the organization have not been effective enough. Furthermore, the
employees feel less involved in the process of decision making which in one way or the other
lower the worker output and self-drive to offer the best. In a nut shell, the research process
adequately revealed that the airlines lacks a firm grip on its market. This situation can be
confirmed by the fact that there is low consumer loyalty and retention. These problems could be
traced back to the management approaches and styles used at the organization which do not only
impact the clients but also has a direct influence on the employees (Devries & Zan, 2013)..
With reference to the challenges identified above, training and development of staff
members and other employees has been recommended as an appropriate mitigation approach.
The poor grip on its market indicates that the organization has not put in place the best practices
in terms of marketing strategies. There is an inevitable need for the incorporation of approaches
which shall in turn enhance brand awareness and popularity. Consequently, the training shall be
geared at exposing the members of the executive on some of the best marketing approaches
which could be incorporated as a means of increasing the success of the organization. The
program recommends the introduction of digital marketing approaches as a sure path towards
performance enhancement. Apart from the exposure on digital marketing, the training
additionally outlines the introduction of better leadership and management approaches at the
organization as a means of improving performance.

HR Management 8
Strategic plan
In line with the discussion above, the training program can be based on the following strategic
plan
 Training the executive and management on digital marketing and need for incorporation
 Training executive on efficient management approaches
 Allowing the executive to disseminate this knowledge and pass it to other employees
 Establishing a culture of learning through training and development within the
organization
The identification of the main causes of drop in performance of the organization provided
the right platform to note and address the specific areas which need to be worked on by the
company management (Leonard, 2012). The rise in technology has made business management
more efficient and easier. Furthermore, the mobile phone and internet era has made it possible
for almost every individual to have access to the online media. The company could perhaps take
advantage of this provision by coming up with better marketing approaches in order to reach a
better number of audiences and hence enable a more stable market. This can be achieved by
hosting the company’s contents digitally so that people can free interact with the services and
products right at the comfort of their locations and at own convenience (Merriam, 2007). The
strategy in this case would involve the creation of a company website which is not only
interactive but also user friendly. The management in turn introduces its new packages, prices,
flight schedule and the arrival of new services through this very website. Additionally, the

HR Management 9
organization may incorporate the use of social media are marketing platforms. Various locations
in this case would include, Facebook, Twitter and LinkedIn just to mention but few.
One of the advantages of digital marketing is the fact that it is cheaper as compared to the
traditional approaches. Embracing digital marketing would therefore be crucial in lowering the
marketing cost which would come at the right time given that the organization is currently
working on ways to recover its losses. The other advantage is the fact that it allows a closer and
more meaningful interaction with the consumers. This is because through these very platforms, it
is possible to get the feedbacks of the consumers on their experiences regarding the company’s
products and services. These feedbacks are then used to make the necessary management
adjustment with the main objective of enhancing performance.
Apart from the introduction of digital marketing, there need for the organization’s
management to alter the leadership approaches to enhance employee motivation and output.
According to the theory of human relations, it is important for the business organization to
ensure the right approaches to ensure that the employees have healthy relations with each other
and also with the management (Taylor, 2008). In order to achieve this, the organization may
need to introduce a more horizontal approach of communication to ensure that information is not
distorted when it has to pass through various channels. This is often the case in vertical
communication which is the current approach at AirAsia. The management also need to involve
the employees in decision making by receiving and factoring in their opinions regarding
processes, procedures and operations at the organization (Kleibard, 2014). This does not only
motivate the employees but also makes them feel accepted and needed at the organization.

HR Management 10
Training and development of the executive
The company case study in addition to the research process was effective enough in
pointing out some of the aspects which the company may need to adjust on. Once the
management loopholes have been identified, the next prudent step would be coming up with a
specific mitigation strategy. In this case, training and development has been identified as the
most viable approach for enhancing staff capability and skills. It would equally be important to
note that the learning process ought to be as objective as possible. The core focus ought to be on
solving the problem at hand. The operation of a company, the success of its processes and
sustainability are key elements which majorly depend on the structure of the organization, its
culture and nature of procedures. This therefore implies that efficient leadership processes go a
long way in enhancing organizational performance, on the other hand, a leadership that is marred
with challenges often find it hard maintaining the company on its feet in terms of
competitiveness and performance. In line with this argument, the recommended approach would
involve the training and development of the members of the executive. This comprises the key
Managers, CEO as well as the directors especially for the different subsidiaries at Air Asia. Once
the members of the executive have been adequately exposed through the learning processes, they
shall then be charged with the mandate of transferring this knowledge to other members within
the organization.
According to the administrative theory of management, proper organization of activities
ought to start from the top management before flowing to the other people within the hierarchy.
This therefore implies that empowering the executive at AirAsia would be pivotal in changing
the scope and level of performance based on the noted challenges. As already highlighted in the
strategic plan, the changing economic standards, fuel costs and rise of competitors calls for the

HR Management 11
best strategies at AirASia. These very strategies would be crucial for enhancing the market base
of the organization hence uplifting its performance in terms of yearly revenue. The core concept
of the training would be the incorporation of digital marketing in addition to introduction of
better leadership approaches as a means to enhancing company performance.
Training Content
During the training process, the members of the executive shall be taken through the
content which shall be plainly guided by the learning objectives. To begin with, there is need to
introduce the trainees to the core concepts of marketing and the related elements. As an
introductory statement, it is important to point out the importance of marketing to an
organization. The main body of the training module then highlights the various forms of
marketing especially the ones which have proved effective enough in the corporate business
environment.
Marketing play a major role in enhancing the brand awareness and popularity. Based on
the methods that an organization uses to create awareness among the consumers about their
products, best marketing strategies are those that bring the company more value in comparison to
the cost incurred in the process. For this specific context, there is an inevitable need for the
management at AirAsia to incorporate the best marketing strategies in order to revive its image
not only in the local business arena but also in the business environment abroad. The flights,
destinations, arrangement of the waiting lounges and the overall outlook of the planes forms part
of the organization’s packaging. The best way to draw the clients’ interests into the company’s
services would be through the implementation of the best marketing strategies. The training
focuses on digital marketing as the best strategy that would help the organization rise to better
levels especially considering the dynamic nature of the business environment. Digital marketing

HR Management 12
basically involves using the online platform to market products. The core requirements for the
success of such a project would be a good website, various social media accounts and It
controllers to aid in hosting the company’s data onto the platforms. This shall be done
periodically with the consumer’s feedbacks recorded and reviewed in order to identify the areas
for adjustment. The websites need to be attractive to the users as this would be a good approach
to trigger the interests of millions of users. The fact that a good number of individuals have
adequate access to the online provides the company with the right opportunity to explore its
ideas. The platform shall need to be maintained by qualified personnel who shall continuously
engage the clients, receiving their responses and making the necessary analysis. The company
executive shall have access to the site to be able to identify the progress of the marketing
strategies. For instance, the company can choose to award its most loyal clients by subsiding
fares for specific destinations over a given period of time. The clients are served depending on
how fast they sign up and log into the organization’s website. The management is able to
monitor this progress from their end by identifying the exact number of people who have joined
the marketing program. Depending on the progress, the leaders are then able to point out the
necessary adjustments which would make the marketing idea as effective as possible.
The training shall also comprise both a visual and audio presentation of the proposed
marketing plan. The developed website shall be used to demonstrate to the trainees the step by
step procedures involved in online marketing. Additionally, the training program shall
incorporate some other approaches which can be used to emphasize the core strategy. In addition
to digital marketing, the training also highlights other crucial concepts in successful management
which could be pivotal in enhancing organizational success and sustainability. For instance, the
executive shall be trained on the importance and methods of effective communication. Proper