Group Assignment BM007-3-1-IMT Introduction to Management Group Members
TP Number
Naavenesh Rao
TP038768
Sanveen Singh
TP038890
Filbert Joshua
TP038975
Gooljar Veerajay
TP041653
Lecture Name: Lim Hau Chek Hand out date: 28th July 2016
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Executive Summary In this document, it provides the necessary explanation for Tony Fernandes managerial role by using Henry Minztberg theory. Futhermore, it also contain a brief introduction of Air Asia history and Tony Fernandes managerial post. Never the less, in this document it will also explain in depth about decisional role on how a decision can change everything. Next, in this document, also contain interpersonal role where it emphasis ones behavior associated with human interaction. Therefore, information role will also be explain in detail as it is a key part in the managerial post. This document will also show that how Tony Fernandes uses the role on different situation to help him overcome the situation and benefit his company.
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Table of Contents Executive Summary ...................................................................................................................................... 2 Introduction ................................................................................................................................................... 4 Managerial roles............................................................................................................................................ 5 Interpersonal Role ..................................................................................................................................... 5 Leader role ............................................................................................................................................ 5 Figurehead role ..................................................................................................................................... 6 Liaison role ........................................................................................................................................... 6 Informational roles .................................................................................................................................... 8 Monitor role .......................................................................................................................................... 8 Disseminator role .................................................................................................................................. 8 Spokesperson role ................................................................................................................................. 9 DECISIONAL ROLE ............................................................................................................................. 10 ENTREPRENEUR ............................................................................................................................. 10 DISTURBANCE HANDLER............................................................................................................. 10 NEGOTIATOR ................................................................................................................................... 11 RESOURCE ALLOCATOR............................................................................................................... 11 Conclusion .................................................................................................................................................. 14 References ................................................................................................................................................... 15 Group Task Report...................................................................................................................................... 17
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Introduction The company that has been chosen is based in Malaysia and it’s called Air Asia as it is low cost carrier airline. Air Asia was founded in December 20th 1993. It was establish by DRB-Hicom, a government owned- conglomerate and 2nd December 2001, Air Asia was purchased by Tony Fernandes a former Time Warner Executive. The Mission of Air Asia is to be the Low Cost Asian airline to reach out people with poor connectivity and high fares. Air Asia has few vision such as to be the best company to work for where it employees are treated as part of big family. Air Asia also which to create a global recognized by ASEAN brand and to establish lowest cost so that everybody can afford to fly with Air Asia. (Lau, n.d.) The manager of Air Asia is Tony Fernandes. Born April 30th 1964, Tony Fernandes was sent to boarding school in Epsom, Surrey and after that to London School of Economics to pursue his Bachelor of Accounting. After graduating, Tony Fernandes followed Branson’s path into music industry and at 2001, Tony Fernandes made his biggest move of his life, by venturing into airline industry and purchasing Air Asia that was in trouble by running up large number of debts. Not long after, Air Asia was flying with nearly 30 million passengers annually because of low cost airline and the tagline “Now Everyone can Fly”. Tony Fernandes also venture into other arenas as well such as buying a football club in England called QPR. Tony Fernandes also made a move to Formula One owning a Caterham team for four years before the (FIA) remove them and they started selling their equipment. Tony Fernandes has change the way people fly by introducing a low cost carrier so that everybody can fly. (Topham, 2014)
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Managerial roles Interpersonal Role What Are Interpersonal Roles? Interpersonal roles are roles that involve the behaviours associated with human interaction. For example, they are roles that allow a manager to interact with his or her employees for the purpose of achieving the organization’s objectives and goals. Interpersonal roles can be divided into 3 roles: Leader role Leader role is mainly all managerial activities involving subordinates (StudyMode, 2016). Some of these actions involved leadership, example the hiring and firing, building relationships with employees and communicates with, motivates, and coaches them.
In Air Asia Berhad, staff development and motivation, promoting and encouraging their development are important factors. Staffs are called Allstars and they are encouraged to learn, grow, and to achieve their dreams and pursue their passions. Fernandes uses “dream the impossible, believe the unbelievable, and never take no for an answer” as the company philosophy and to build it up as part of the DNA of Air Asia. Fernandes makes clear to his staff that they do not need to stay where they are, ten years down the road. Staffs who performed very well are given opportunities to develop their career further and be promoted (Chris Forrest Harvey, 2012). There was one example where a lady who was hired as a flight attendant at Air Asia Thailand. A year into it, she asked Fernandes that she would like to be a pilot. Tony instructed her, just as how he instructs other people who wanted to be a pilot, to go through the classes, and if she qualified, she would get the job. She qualified the classes and managed to become a pilot. Tony, as a leader, not only instructs his employees, but also encourages them to bring out the best in them for the good of themselves and the company. What he did there really set a powerful example inside the company that anyone can achieve their goals if they want it hard enough. Page 5 of 17
Figurehead role A figurehead is a necessary role for a manager who wants to inspire people within the organization to feel connected to each other and to the institution, to support the policies and decisions made on behalf of the organization and to work harder for the good of the institution. (Study.com, 2016)
Fernandes adopts a 'walk around' management style. 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. He sits in an office with no walls, which gives him the whole view of the floor and all staffs, where the staffs can always see him too. The fact that Tony Fernandes took the time to work with the staff has already made him one of the best leaders. He will sometimes serve the customers on the plane together with employees to build a good relationship with the passengers as well as his employees. He believed a good leader must have at least experience on how the job goes with and without the employees (Slideshare.net, 2016). If Tony did not do this, then he would have a better leader than he is today. In the hospitality industry, a great leader must walk the talk. This is why he feels the needs to connect with every single one of his employees. It is critical that he is seen with his employees and learn from ground experience. Staffs will then be appreciative of their leader and be motivated to do their best.
Liaison role Managers act as liaisons when making contacts with people outside of their area of responsibility, both inside their organization and outside in the world at large (Study.com, 2016). It is about linking people with resources.
On 28 December 2014, Air Asia flight QZ8501 crashed into the Java sea. During the ongoing investigation in the time of that crisis, Fernandes quickly made himself available to media, speaking alongside government officials, to become a focal point for company updates. He was the man with the facts. He updated everyone with every new discovery in the investigation, once Page 6 of 17
confirmed true. His recognition for the bereaved reminded us that whilst most questions were still unanswered, the pressing responsibility for the company in the immediate aftermath of any accident had to be with those personally affected (Prweek.com, 2016). Without having to say it directly, the implied message came through loud and clear that this airline boss not only cared only about his company, but he cared for his customers and fellow staff.
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Informational roles When broken down, Henry Mintzberg’s informational roles has three parts. Monitor role The first part is monitor role where one “seeks and receives a wide variety of special information (much of it current) to develop a thorough understanding of the organization and environment” (Boundless, 2016). This characteristic can be seen in Tony’s way of managing AirAsia. He “walk around' management style” where he works with the staffs once awhile to gather knowledge and better understand how things go around (BBC, 2010). Furthermore, his workplace is located at the same place as other staff members (Anon., 2013). This allows the staff members to share information with him as shown in figure 1. Apart from that, AirAsia organisational structure is more to a flat structure which allows easier management. This is to for AirAsia to watch their company worldwide (Anon., 2013).
Figure 1: Tony Fernandes's Office Disseminator role The next part is disseminator role. A disseminator “transmits information received from outsiders or from other subordinates to members of the organization. Some information is factual; some involves interpretation and integration of diverse value positions of organizational influences” (Boundless, 2016). Tony Fernandes has a great skill in getting the work done. He knows how to drive people to remarkable heights in completing a certain task. Tony reach out to people, motivating them in order to receive the best results. He uses Herzberg Hygiene and Motivational Factors to motivate Page 8 of 17
his staffs (Anon., 2013). His friendly and humble character allows him to disseminate information around easily. (Ghandour, 2014) Spokesperson role The third role is spokesperson. A spokesperson is responsible to “transmits information (plans, policies, results, etc.) within and outside of the organization; serves as an expert on the organization's industry” (Boundless, 2016). There is no doubt Tony Fernandes an amazing way with words. Tony uses various ways and technique to spread information. One of it is through social medias. When Flight QZ 8501 crashed into the Jawa Sea, Tony kept everyone updated via his twitter and a few press conferences (Worland, 2014). He also said it is the “the hardest part of my life” admitting ‘he has struggled in the aftermath of the disaster that left 162 people dead’ (Burt, 2015) as shown in figure 2. Apart from that, Tony also have given speeches to outside organization and to the public. One of it is the speech he gave in UPM regarding his secrets to success (Phung, 2016). In his speech he said that never be afraid to fail as it prepares you for the worst (Phung, 2016).
Figure 2: Tony Speaking On Behalf Of Airasia Plane Crash
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DECISIONAL ROLE ENTREPRENEUR
“As a manager, you create and control change within the organization and process improvement. This means organizing work, solving problems, generating new ideas, and implementing them’’ (michele, 2016) Mr. Fernandes first acted as an entrepreneur by buying Air Asia from a deeply indebted Malaysian government-owned company in September 2001 for a mere 25 pence. He finally came with the idea of reforming the airline as a short-haul low cost carrier. He bought 49% of the AWAIR, an Indonesian low-cost carrier, in 2004, rebranding it as Indonesia AirAsia the following year. Similar joint venture actions brought AirAsia into the Philippines, Thailand, Japan, India and AirAsia X is being used to link Asia to Europe via a low cost long-haul with a London flight. (BBC, 2010) (Topham, 2014)
DISTURBANCE HANDLER ‘In this role, a manager needs to excel at conflict resolution and know how to handle team conflict, that is, when an organization hits an unexpected roadblock, it's the manager who must take charge. Sometimes, emotion also must be handled in the team’ (michele, 2016) When an AirAsia flight QZ8501 carrying 162 people disappeared from the skies near Indonesia on Sunday 28th December 2014, the CEO, Mr. Fernandes was in Surabaya, the missing plane’s point of departure within hours. He was spotted speaking with families of the passengers and especially his crew and pressurising specialists to search for crash site. He managed to deal with employees’ morale. Another disturbance in the early days of AirAsia history was when workers used to manually put bags in the cargo hold. This was a hard job though. So being effective, Mr. Fernandes invested in belt loaders to facilitate task for his employees. (West, 2015) (Neil Gough, 2014)
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NEGOTIATOR To negotiate means to deal or bargain with others, as in the preparation of a contract or in preliminaries to a business deal. ‘Someone who participates in and directs negotiations within team, department, and organization’ (MAW editor, 2009) On 15th April 2015, AirAsia and UnionPay International sign an agreement in Shanghai to enable UnionPay bank cardholders around the world to use their cards to pay for flights, hotels and other transactions related to the AirAsia ecosystem. (AirAsia, 2015) Another instance of good negotiation is that of the Mauritian Deputy Prime Minister and Minister for Tourism Xavier-Luc Duval and Mr. Fernandes coming with a deal of a direct flight from Kuala Lampur to Mauritius three times a week starting from October 2016. (H.Thome, 2016) RESOURCE ALLOCATOR In a professional setting, managers are required to determine where to assign funds and other resources, distribute fund, and also determine things as space needs, number of people required for a job, where their skills should be applied, how long a project will take and time needed for the work. This is known as the resource allocator managerial role.
WHERE
WHEN
HOW
Resource allocator
WHY
WHAT WHO
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Projects of AirAsia handled by CEO, Mr. Fernandes and the board of directors. DATE/2015
PROJECT
14th May
The e-boarding pass is launched by Philippines AirAsia as part of initiatives to further enhance the passenger experience. Mr. Fernandes controlled the financing of this project.
17th June
AirAsia launches the Airbus Smarter Fleet Electronic Flight Folder in flights. The comprehensive software allows pilots to access their briefing package on the aircraft, or from home, the hotel, or in the crew briefing room.
Apart from project management, Mr. Fernandes also created different departments in the company, along with their respective person in charge. For instance, AirAsia has management teams in different countries having different departments consisting of; i.
Finance,
ii.
Flight and Ground Operations,
iii.
Innovation and Technology,
iv.
Safety and Security,
Each department being well formalised and specialized are responsible for some particular activities. This brings maximum efficiency. Mr. Fernandes has without any doubt contributed positively to AirAsia as it has a strong net profit for the year 2015 (as illustrated by the picture below) (The Economist, 2015) (AirAsia, 2015)
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Figure 3: add caption here
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Conclusion Tony Fernandes is no doubt an amazing manager and a spectacular entrepreneur and AirAsia is the prove of his success. He bought the company for 25 cents with a huge depth to clear fast forward 9 years of strategic management and good resource allocation AirAsia is now an international low cost successful airline. He is a natural born leader. He does not only lead the company but also inspire the staffs in various ways. His adaption of ‘walk around’ management style breaks boundaries between him and his staffs. Apart from that, he literally gets his hands dirty in order to understand and gain experience from different perspectives throughout the organisation. This has helped him make some very crucial decisions. When problems strike the company Tony knows how to get back on track responding to the problem fast and coming up with solutions. Furthermore, Tony Fernandes knows how to interact with the outside world. He is very active on social medias as well as in the real life. He negotiates with various public and private bodies to bring up AirAsia. He knows how to get information going. He’s good communication skills and openness allows him to disseminate information very well.
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References AirAsia, 2015. our 2015 journey. Discover- annual report, pp. 8-15. Anon., 2013. Tony Fernandes as a leader. [Online] Available at: https://forbusinessblog.wordpress.com/ BBC, 2010. How Air Asia founder Tony Fernandes' dream came true. [Online] Available at: http://www.bbc.com/news/business-11647205 [Accessed 01 july 2016]. BBC, 2010. How Air Asia founder Tony Fernandes' dream came true. [Online] Available at: http://www.bbc.com/news/business-11647205 [Accessed 20 7 2016]. Boundless, B. M., 2016. Mintzberg's Management Roles. [Online] Available at: https://www.boundless.com/management/textbooks/boundless-managementtextbook/introduction-to-management-1/additional-roles-and-skills-of-managers-20/mintzberg-smanagement-roles-127-605/ [Accessed 10 7 2016]. Burt, J., 2015. Indonesia AirAsia Flight QZ8501 was 'hardest part of my life', says QPR chairman Tony Fernandes. [Online] Available at: http://www.telegraph.co.uk/sport/football/teams/queens-park-rangers/11427521/IndonesiaAirAsia-Flight-QZ8501-was-hardest-part-of-my-life-says-QPR-chairman-Tony-Fernandes.html [Accessed 1 7 2016]. Ghandour, F., 2014. I Talked To And Learnt From Tony Fernandes Of AirAsia. [Online] Available at: http://www.asianentrepreneur.org/i-talked-to-and-learnt-from-tony-fernandes-of-airasia/ H.Thome, W., 2016. Air Asia announces plans for flights to Mauritius. [Online] Available at: https://wolfganghthome.wordpress.com/2016/04/28/air-asia-announces-plans-for-flights-tomauritius/ [Accessed 02 july 2016]. Lau, n.d. Course Hero. [Online] Available at: https://www.coursehero.com/file/8221967/Company-Analysis-and-Background-of-AirAsia/ [Accessed 02 July 2016]. MAW editor, 2009. Mintzberg’s 10 Managerial Roles. [Online] Available at: http://management.atwork-network.com/2008/04/15/mintzberg%E2%80%99s-10managerial-roles/ [Accessed 01 july 2016]. michele, 2016. Mintzberg's Management Roles. [Online] Available at: https://www.mindtools.com/pages/article/management-roles.htm [Accessed 1 july 2016]. Neil Gough, A. S., 2014. AirAsia’s Chief Responds to Crisis With Quick Compassion. New York Times.
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Phung, A., 2016. AirAsia CEO Tony Fernandes shares some secrets to his success with UPM students. [Online] Available at: http://www.thesundaily.my/news/1771412 Phung, A., 2016. AirAsia CEO Tony Fernandes shares some secrets to his success with UPM students. [Online] Available at: http://www.thesundaily.my/news/1771412 [Accessed 26 7 2016]. TAN, C., 2015. Tony Fernandes to visit Tokyo for negotiations. [Online] Available at: http://asia.nikkei.com/Business/Companies/Tony-Fernandes-to-visit-Tokyo-fornegotiations?page=2 [Accessed 02 July 2016]. The Economist, 2015. Storms batter a South-East Asian success story. The Economist. Topham, G., 2014. theguardian. [Online] Available at: https://www.theguardian.com/business/2014/dec/28/tony-fernandes-airasia-tycoon [Accessed 02 July 2016]. Topham, G., 2014. Tony Fernandes, the millionaire entrepreneur behind AirAsia. 28 december. West, K., 2015. Facing up to my biggest nightmare: AirAsia' s boss Tony Fernandes tells of his horror at the loss of flight QZ8501 in the Java Sea. [Online] Available at: http://www.thisismoney.co.uk/money/markets/article-2979959/Facing-biggest-nightmareAirAsia-s-boss-Tony-Fernandes-tells-horror-loss-flight-QZ8501-Java-Sea.html [Accessed 01 july 2016]. Worland, J., 2014. Tony Fernandes: The Man Who Built AirAsia. [Online] Available at: http://time.com/3648012/tony-fernandes-airasia/
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Group Task Report
Name
Task -
Informational Role
-
Conclusion
-
Executive Summary
-
Introduction
Filbert Joshua
-
Managerial Role
Gooljar Veerajay
-
Decisional Role
Naavenesh Rao
Sanveen Singh
Signature
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