Malaysia Airlines Human Resource

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Executive Summary

Malaysia Airlines Services or MAS is Malaysia national air transport service provider. Starting off in 1947, a small air service with just one twin engine Air Consul and now has become an award-winning airline with a fleet of more than 100 aircraft and servicing more than 100 different destinations.

Three major human resource issues are being identified including over-supply of manpower and low productivity, discrimination and diversity. These three issues are being further explained and discuss in the following report. Over-supply of manpower and low productivity are seen as greatest problem that Malaysia Airlines was facing.

The implication of the human resource issue include unpleasant working environment, low labour productivity and low revenue and high cost of operation. Human resource issues cause these problems to arise if it was not being solved in a professional way.

Solution such as retrenchment, equal employment opportunity (EEO), work-life balance, training and development, workforce diversity and performance management have being done and suggested by MAS to further cope with the human resource issue that they are facing now and then. Further details of these solutions can be found in the following report.

Recommendations in terms of human resource information system (HRIS) and change management were implement and suggested towards MAS. Plateau System and Oracle E-business Suite are example of HRIS. MAS were also recommended to change their current decentralized organization to a better integration organization.

As for conclusion, the importance of human element in the achievement of the company’s objectives must not be overlooked. Human resource management is important towards the organization to build an effective and efficient working environment.

1.0 Introduction
1.1 Company Background

In 1947, a small air service opened its doors with just one twin engine Air Consul that sat only five. Since then, however, Malaysia Airlines has become an award-winning airline with a fleet of more than 100 aircraft, spreading its wings across six continents and servicing more than 100 different destinations. The airline holds a lengthy record of service and best practices excellence, having received more than 100 awards in the last 10 years. The most notable ones include being the first airline to win the "World's Best Cabin Crew" by Skytrax UK consecutively from 2001 until 2004, "5-star airline" in 2005 and 2006, as well as No.1 for "Economy Class Onboard Excellence 2006" also by Skytrax UK. It is the mission of Malaysia Airlines System Berhad, as a corporation, to provide a transport service that ranks among the best in terms of safety, comfort and punctuality, distinguished and loved for its personal touch and warmth. Malaysia Airlines aim to set new world standards continually with their enhanced in-flight services, reliable ground support and excellent infrastructure and to respond to consumer demand for worldwide coverage. As a testament to Malaysia Airlines commitment towards crew excellence, staff members from 22 other airlines form the student body of Malaysia Airlines Academy. The quality of this institution continues to serve as a benchmark for the industry, a level of quality that all other airlines aspire to. 2.0 Human Resource Issue

2.1 Over-supply of Manpower and Low Productivity
A major issue that Malaysia Airlines faces is over-staffing and low productivity from the excessive number of employees. With an overall total employment figure of over 24,000 staffs, in relation to the existing number of aircrafts and passenger volumes, it is just an overcapacity. Apart from that, they also have a much lower rate of productivity as compared to their competitors. The wages that need to be paid towards the staff are not enough to cover their revenue. As a result, this has greatly affected the economic well being of the organization, and contributing a large percentage of...
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