Management and Operations Report: Analysis of Hong Kong Airlines

This report provides a comprehensive analysis of the management and operations of Hong Kong Airlines (HKA). It begins with an introduction to HKA, highlighting its market position, objectives, and organizational structure, including the roles of key managers and leaders. The report defines the roles of managers and leaders, differentiating between leadership's focus on guiding employees towards organizational goals and management's role in overseeing various operations. It explores the roles of the chairman, vice chairmen, and other officers, emphasizing their responsibilities in areas like marketing, operations, and finance. The report then delves into theoretical perspectives, applying situational and participative leadership theories to HKA's context. It examines how HKA's leaders respond to competitive challenges and foster employee participation in decision-making. The report also discusses specific examples, such as the company's response to rising fuel costs and the implementation of code-sharing agreements, illustrating how leadership styles and management strategies impact the airline's performance and customer experience.

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Speaker Notes
Introduction
Hong Kong Airlines is one of the leading airlines in Asia with an ever expanding strategy
meant to enhance both its ground and air operations. The company boasts a huge market both at
the local and international fonts. The airline which was established in 2006 currently boasts over
43 fleets with over 40 destinations both locally and internationally. One of the core objectives at
the organization is to ensure proper consumer experience through the provision of quality
services and consistent levels and affordable rates. The airlines is guided by a simple by strong
slogan Where Hong Kong Begins implying it majorly calls the shots when it comes to airline
business in this part of the universe (Ashforth and Kreiner, 2009). In recognition of the services,
HKA received a four-star rating award from Skytrax and award which it has received repeatedly
since 2011.
The management structure at the airlines is headed by a chairmen who is assisted by a
number of vice chairpersons one of whom is the Vice chair while the other two are Vice
presidents who preside over various operations within the organization. Below this hierarchy,
there are three officers one in charge of marketing, the other in charge of operations while the
third one deals with financial aspects within the business.
Definition of roles of managers and leaders
Leadership involves the action of guiding employees to help them achieve the
organizational goals and objectives. The leader therefore provides the employees with the most

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appropriate platform for the employees to explore their skills, abilities and competencies in a bid
to collectively achieve organizational success. At Hong Kong airlines, the chairman acts as the
overall leader within the organization. In addition to overseeing the process of recruitment and
induction of new employees at the Airlines, the chairman, Mr. Hou Wei is charged with the core
mandate of carrying and advocating for the vision of the company which mainly focuses on
quality services and consistent customer satisfaction. In this case, the individual clears the way
while the others below him in the organizational structure follow (Berg and Huebner, 2011).
This therefore brings out a distinct feature when it comes to leadership in an organization: it
mainly involves creation of the best path towards organizational success while making the
journey of each stakeholder within HKA as comfortable as possible.
The other leadership roles in the organization are executed as the vice chairmen who are
also referred to as the vice president. They preside over a variety of roles in the organization
under the careful supervision of the overall chairman. It is a fact worth noting that one of the
core functions of leadership at the organization involves creating a sense of direction among the
employees. The second role of leadership is to enhance not only the establishment of the
organization’s vision but also enhancing its growth and development. Based on the information
derived from the company website, the core mandate of the company is to ensure positive
customer experiences through the provision of quality services which is backed by its flair and
stable market base especially within the local market. The role of the chairman and the assistants
who act as the main leaders in this organization is to ensure that the employees grasp this vision
and hence align their efforts with the direction offered by the company’s vision statement. The
leaders at the organization have the major role of ensuring the achievement of this (Bolman and

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Deal, 2017). The leaders at the organization inspire and encourage the employees to grasp and let
the vision lead them.
Apart from providing direction and advocating for the establishment of the company’s
vision culture, the leaders in an organization also play a pivotal role by leading innovation which
is majorly aimed at improving the organization’s revenue and better returns on investment. The
chairman and the vice chairmen at Hong Kong Airlines are repeatedly keen on creating new
ideas in a bid to enhance consumer experiences, win their loyalty and hence maintain a stable
consumer base in the otherwise dynamic nature of the airlines market. The leaders take charge of
the research processes aimed at identifying the right innovations which when implemented
within the organization go a long way in enhancing business performance. By carefully
analyzing the situation of the current market, varying consumer needs and trends in addition to
market performance, the leaders at the airlines are able to identify the loopholes. The most
effective innovations are then installed in a bid to minimized the identified errors and improve
the general output within the organization. In a nut shell, the leaders in the organization have the
core mandate of mapping out what needs to be done by the employees in order to win as a team.
It can therefore be added that the leaders within the organization enhance team work and unity
among employees by creating the right platforms where the employees are able to work towards
a common goal despite their diverse backgrounds.
On the other hand, management goes beyond leadership. This perhaps brings out one of
the differences between leadership and management. In addition to providing leadership to the
other employees, the manager plays the role of overseeing multiple operations which occur
within an organization (Christensen, Hall, Dillon and Duncan, 2016). Due to the complexity of
some of these responsibilities, delegation of duties and role sharing is an inevitable characteristic

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in the field of management. With reference to the above description of management above, the
role of management heavily lies on the shoulders of three individuals at Hong Kong Airlines,
these include: the Chief operations officer, Chief marketing officer as well as the Chief financial
officer.
The chief operations officer coordinates and oversees all the operations which take place
within the airlines company. The operations vary from one department to another. For instance,
maintenance of the aircrafts and ensuring the right working condition of the company’s fleet is a
major role executed by the company’s engineers. It can therefore be deduced that the managers
ensure the work is done and in some cases go ahead to show the employees how the work ought
to be done. The marketing officer manages all the company’s marketing strategies. Through an
in-depth analysis of the market trends and consumer behaviours, the manager identifies and
coordinates the implementation of the most effective marketing strategies. The procedures in this
case are often aimed at enhancing brand awareness which in turn improves revenues as a result
of the establishment of a stable consumer base. The customer forms a core pillar in the continuity
and performance of the organization (Daniels, Radebaugh and Sullivan, 2014). The measures put
in place therefore ought to ensure that they have the best experiences with the airlines and hence
come for more services.
Lastly, the financial officer coordinates all the financial activities and processes within
the organization. The company being renowned airlines both at international and local levels is
characterized by a series of flows in terms of finances. For instance, the revenue that accrues
from both local and international flights constitutes the organization’s turnover. In addition, the
organization’s partnership with other companies through the code sharing strategy equally acts as
a source of its revenue. The finance manager plays the core role of tracking the flow of these

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finances while also coordinating the process of accountability. Proper financial management
minimizes financial loses especially those that may occur as a result of embezzlement. The
manager with the help of other managers approve budgets especially those that involve major
projects within the organization. It is a fact worth noting that management involves coordination
between various departments and individual. While leaders generally oversee each of the
processes above, the managers pinpoint the specific points of actions before motivating the
employees to make the right steps to enhance the achievement of company objectives.
Theoretical perspective of leadership and management roles at Hong Kong Airlines
The success of an organization mainly depends on the ability of the leaders to effectively
respond to the different situations within the business environment. While some situations come
with additional benefits, others pose as challenges hence the need for managers and leaders to
work together to identify and implement the right counter measures. According to the situational
theory of leadership, the course of action picked by a leader often depends on nature of the
situational variables. The core objective in this case is to ensure the risk presented by the
situation is minimized as much as possible. There are circumstances which require an
authoritarian style of leadership while others need a democratic approach. Each of these
strategies largely depends on the leader’s knowledge and skills with respect to the given
situation.
At Hong Kong Airlines, the rise of rival companies which offer similar services at
relatively available rates has been marked as a threat to the company’s market dominance. The
rival companies which operate both in the local and international markets include Cathay Pacific,

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Malaysian Airlines as well as Etihad. The rise in the level of competition over the past few years
has placed the Chairman and other manages on toes in a bid to obtain long lasting solutions. It is
important to note that the Company CEO is the leader. Despite his vast knowledge in the field of
air transport, there is the inevitable need to work with the others in the management team in
order to enhance precise decisions and ensure the company retains a competitive edge. With
reference to the stipulations of the situational theory of leadership, it can be deduced that the
leaders at Hong Kong Airlines mainly rely on the democratic style of finding solutions. They
work together as a board, obtain solutions through profound decision making before suggesting
the right strategies to be implemented (Edelman and Singer, 2015). For instance, the team
planned and came up with the code sharing agreement which has since been a major pillar in the
organization’s journey to expansion. As a result of such deliberate leadership steps, the airlines
now have terminals in various countries across Asia and beyond. Through this implementation, it
has managed to maintain a fairly stable market despite the presence of rival companies. This
therefore highlights how an effective leadership applied upon a given situation can lead to
performance enhancement.
The participative theory of leadership notes that effective leadership in one in which
other individuals within the company are allowed to participate. This form of leadership is
pivotal especially in motivating the group members to have a sense of belonging. During the
process of decision making, the input of other members within the organization is taken into
account. This happens despite their rank or levels in the company. The theory encourages a
democratic environment and correlates successful leadership with the leaders’ ability to deal
appropriately with the people within the organization. At Hong Kong Airlines, the CEO together
with the management team has established a culture which adequately gives room for all

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members within the organization to give their ideas (Guarreillo, 2007). These ideas are then
analyzed at the leadership level before being factored in during the crucial process of decision
making. For instance between 2010-2013, the rising cost of fuel in addition to the presence of
rival companies within the industry called for the company’s leadership to seek for drastic
measures. The employees were brought together and the situation outlined to them. The strain in
finances at this point would involve releasing some of the workers in a bid to reduce expenses.
However, the most important portion of this strategy is when the workers were given an
opportunity to present possible mitigation strategies. Based on this approach, Hong Kong
Airlines came up with a tacit solution to the problem at the moment. The long flights to different
parts of the world were reduced. This was done especially for the journey’s which proved less
promising to the organization in terms of return on investment (Henisz and Zelner, 2010). The
company then chose to concentrate on developing its local base of clientele before later
expanding to the international font. It can be deduced that these ideas were obtained and
implemented based on the suggestions of other people within the organization. The participative
theory therefore depicts the leader as an individual response for unifying the work force by
equally considering their ideas and grievances. Giving the employees an opportunity to
participate in crucial decision making processes also goes a long way in enhancing motivation
and increasing the general output of the workers. In a nut shell, an effective leader is able to get
the employees to give their best without necessarily having to insert authority on the subjects.
The human relations theory of management depicts an organization as a social entity.
This therefore implies that effective management may not be gauged by the amount of money
that the company makes at the end of the day but by the extent to which people within the
organization are committed to the course. The theory advocates for the development of effective

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relationships between the managers and the workers. Consequently, one of the main roles of a
manager is to create a healthy environment which does not only motivate the workers but also
allows them to give their best. The manager is therefore charged with the core responsibility of
ensuring motivation among employees (Keddy, 2017). This can be achieved by implementing
strategies which empower the workers for instance training, exhibitions and participation in
unifying events. At Hong Kong Airlines, the management is keen on employee motivation. This
can be backed up by the presence of a stable reward system for the workers. The company holds
annual events in which the best employees are awarded and motivated based on the scheme. The
awards may be monetary, promotions or facilitation of vacations. At the same time, the managers
at the airlines have continuously embraced staff training and empowerment as a step towards
achieving the goals of the organization. In line with the company’s vision, the customers are to
be given the best experiences through the provision of quality services. This is only achievable
when the employees have the basic skills and competencies which enable them deal with the
clients in a professional manner (Kissane, 2017). The managers therefore have the core mandate
of ensuring that this aspect of organizational performance is adequately addressed.
The modern management theory calls for the managers to constantly expect and deal with
the changes and complexities that come with managing modern organizations especially in the
corporate circles. Based on this theory, one of the roles of a manager is to identify the impending
changes in the market trends and consumer behaviours before coming up with the necessary
counter measures. The modern theory also fronts innovation as a crucial element when it comes
to business enhancement. As such, the manager identifies the right innovative ideas which when
implemented lead to an improvement in the quality of services delivered to the clients. The rapid
rise in technology has offered the managers an appropriate platform for changing and enhancing

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organizations. It would however be important for the manager to consider the right approaches
which perfectly fuses modern management with the traditional and human relation theories. At
Hong Kong Airlines, the Chief marketing officer, for instance, has the core mandate of ensuring
the airline’s flag flies high in terms of brand awareness and market presence. As a modern
approach in management, the company has an interactive and user friendly online interface
where the managers and leaders are able to interact with both the employees and the clients. Due
to the availability of computers, handheld devices and internet, HKA has since incorporated
online booking for its clients (Koschmann, 2012). This does not only reduce the time that would
have been spent while waiting on the queue to manually book tickets, it also increases
convenience which culminates in better experiences for the customers. Through this website, the
company management is able to receive responses from the clients in terms of services offered.
The platform is therefore crucial in helping the manager to identify the loopholes which can in
turn be filled to enhance efficiency and quality. The manager’s role is to identify the point of
improvement based on the consumer responses before suggesting to the leadership the necessary
counter strategies. For instance, after noting the decline in number of tickets, the company’s
management came up with measures of ensuring brand awareness by investing on marketing
both at the local and international levels. Similarly, the prices for different destinations were
adjusted to fit the varying consumer needs. At the same time, Hong Kong Airlines through
effective management has since introduced different classes to cater for the economic variations
in the local and international markets. Each of these strategies could be attributed to the modern
approach in management in which the managers use advancements in technology to create new
operation paths and ensure business enhancement.

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Based on the systems theory, management is not viewed as a series of silos but rather as
an interrelated system. As a result, the manager has the core role of coordinating the various
activities taking place in the different departments. This brings out the role of a manager as a
supervisor. It is equally important to note that the processes in each of the departments ought to
flow alongside the company’s vision hence the need for keen supervision. Hong Kong Airlines
has its operations supervised by three main managers’ names: finance, marketing and operations
managers. Each of these entities needs to work together for the common good of the
organization. This calls for proper coordination skills on the side of the managers. Since the
work in these departments may be overwhelming, the managers also play the role of delegation
where some of the employees are delegated the task to oversee important processes. This enables
operations to flow freely without the manager having to be physically on site. The other role of
the manager with respect to the systems theory is to enforce policies and hence cultivate the right
environment despite the variations in culture and employee backgrounds. The managers also set
goals and liaise with the employees in a bid to ensure that each of the steps taken is within the
interests of the company. The manager also does the administrative work which involves
correspondence with other departments. Finally, the managers ensure the employees do
satisfactory work by constantly analysing and evaluating their performance. Each of these
strategies, while happening at the departmental level, has a collective role in enhancing the
overall performance of Hong Kong Airlines.
How Chaos Theory and Management by Objectives apply to Hong Kong Airlines
The chaos theory of management stipulates that an organization is made of various
systems, complex features, repeated processes and fractals which all have a special role in
ensuring organizational continuity and performance. It can be deduced from the theory that

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simple actions can lead to major changes within the organization. The theory which is part of a
mathematical model uses a simple pendulum to indicate that changing the position of releases
effectively alters to overall trajectory of the system. Similarly, a small change in the mode of
operations within an organization may result in huge results. Depending on the nature of this
alteration, the results may either be of benefit to the company or be associated with loses and
other complications.
The arguments in this theory effectively fit the situation at Hong Kong Airlines. In 2014,
the management sought to increase its revenue by slightly adjusting it routes and also introducing
new fleets with the aim of capturing the customers’ loyalty. The launching of new passenger
routes from Hong Kong to Tianjin and Kagoshima in 2014 can be termed as a simple event
which brought about a considerable change. Based on the records, there was increase in the
frequency of customers as a result of these routes. In addition, the introduction of an online
platform to enhance interaction between the management and its clients is a simple innovative
idea which has seen the company grow in leaps and bounds. The platform allows the customers
to make cheaper, faster and convenient bookings which increase convenience levels. The
stipulations in the theory are relevant and can therefore be associated with the growth and
success at Hong Kong Airlines which has been experienced over the past decade. Despite the
complexity of the systems within an organization, proper leadership and management skills leads
to efficient coordination which in turn enhances performance within the organization.
The theory of management by objectives on the other hand seeks to establish the balance
between the objectives of the employees and that of the organization. According to this theory,
the intentions of employees often need to be aligned with the core goals of the organization. At
the same time, the organization ought to stay keen on addressing the needs of the employees as