Culture and Organisation

Topics: Tony Fernandes, AirAsia, Organizational culture Pages: 10 (3818 words) Published: August 19, 2012
Culture and Organisation (HR0372)

Table of Contents
Page No
1. Introduction……………………………………………2 2. Identification of central issue……………................3 3. Outline of theoretical framework……………………4 4. Analysis
5.1 Artifacts…………………………………………..5 5.2 Espoused values and beliefs…………………..6 5.3 Basic underlying assumptions…………………8 5. Conclusion…………………………………………….9 6. Recommendations……………………………………9 7. References………………………………………......11

1. Introduction
Established in 1993 and commenced operations on 18 November 1996, AirAsir was originally founded by a government-owned conglomerate DRB-Hicom. On 2 December 2001, the heavily-indebted airline was purchased by former South East Asian regional vice-president Warner Music Group Tony Fernandes's company Tune Air Sdn Bhd for one ringgit. AirAsia Berhad is a Malaysian low-cost airline. It operates scheduled domestic and international flights and is Asia's largest low-fare, no-frills airline. AirAsia is a pioneer of low-cost flights in Asia and was also the first airline in the region to implement fully ticketless travel. Its main base is the Low-Cost Carrier Terminal (LCCT) at Kuala Lumpur International Airport (KLIA). In 2010 AirAsia won the Skytrax World's best low-cost airline award. Air Asia budget with no-frills airline is introduced by Tony Fernandes with the tagline “Now everybody can fly” and the man himself is also the founder of Tune Group. No fuel surcharge and no admin fee. However, ticket fare and airport tax need to be paid. This was after great deliberation as the initial offer was fifty sen. Fernandes proceeded to engineer a remarkable turnaround, turning a profit in 2002 and launching new routes from its hub in Kuala Lumpur International Airport at breakneck speed, undercutting former monopoly operator Malaysia Airlines with promotional fares as low as RM1 (US$0.27).

2. Identification of central issue
The main issue that will be discussed in the analysis will be Tony Fernandes’ set of values and beliefs that shaped the company corporate culture. In six words, corporate culture is ‘How we do things around here.’ Corporate culture is the collective behaviour of people using common corporate vision, goals, shared values, beliefs, habits, working language, systems, and symbols. With the tagline introduced by CEO of AirAsia Tony Fernandes ‘Now everyone can fly’, AirAsia’s philosophy of low fares is aimed to make flying affordable for everyone. AirAsia also aims to make travel easy, convenient and fun for its guests. “A firm believer in big dreams”, can be found online (Profile-Tony Fernandes of AirAsia, 2006) Tony Fernandes famously once said, “We Asian have this habit of kicking ourselves and saying it can’t be done. Anything is possible when you put your mind to it.” (http://www.rdasia.com/a_dream_takes_flight/, no date). At AirAsia, there is a sense of being in a good family. Tony Fernandes believes that his employees are his greatest assets and encourages a culture that emits positive vibes to ensure that every player in the team is committed and unified to set about achieving their shared goals. He once said in an interview, “We do every bit we can to succeed, including making sure that we have the right atmosphere at work. Keeping our culture intact entails a lot. We have to make sure that we stay true to winning values and traits: industry, appreciation for diversity, discipline, flexibility, honesty, friendliness, passion for learning and excellence, and a genuine concern for the welfare of all.” This shows that he began by setting the right foundation on which his company operates on. Maintaining the AirAsia culture is a lot of work, but it does not mean all work and no fun for the employees. According to Tony Fernandes, the AirAsia staffs are all quite happy to contribute towards keeping what they call “Culture All Stars”. Organisational culture (hrm ASIA, 2010). It...

References: 1. Profile-Tony Fernandes of AirAsia (2006) Available at: http://www.skorcareer.com/malaysia-eng/tonyfernandes-airasia-profile.htm (Accessed: 26 November 2011).
2. http://www.rdasia.com/a_dream_takes_flight/ (no date) (Accessed: 26 November 2011)
3
4. http://www.rdasia.com/a_dream_takes_flight/ (no date) (Accessed: 26 November 2011)
5
6. Schein, E.H. (2010) Organization Culture and Leadership. 4th edn. San Francisco: Jossey-Bass.
7. Schein, E.H. (2010) Organization Culture and Leadership. 4th edn. San Francisco: Jossey-Bass.
8. Schein, E.H. (2010) Organization Culture and Leadership. 4th edn. San Francisco: Jossey-Bass.
9. Schein, E.H. (2010) Organization Culture and Leadership. 4th edn. San Francisco: Jossey-Bass.
10. Schein, E.H. (2010) Organization Culture and Leadership. 4th edn. San Francisco: Jossey-Bass.
11. Schein, E.H. (2010) Organization Culture and Leadership. 4th edn. San Francisco: Jossey-Bass.
12. Schein, E.H. (2010) Organization Culture and Leadership. 4th edn. San Francisco: Jossey-Bass.
13. AirAsia (2006) Annual report. Available at: http://issuu.com/airasia/docs/aa-corporate-06 (Accessed: 26 November 2011).
14. AirAsia (2008) Annual report. Available at: http://www.airasia.com/iwov-resources/my/common/pdf/AirAsia/IR/AA%20Corporate%202008.pdf (Accessed: 26 November 2011).
15. AirAsia (2010) Annual report. Available at: http://www.airasia.com/iwov-resources/my/common/pdf/AirAsia/IR/AirAsia_AR10.pdf (Accessed: 26 November 2011).
16. AirAsia (2008) Annual report. Available at: http://www.airasia.com/iwov-resources/my/common/pdf/AirAsia/IR/AA%20Corporate%202008.pdf (Accessed: 26 November 2011).
17. AirAsia (2008) Annual report. Available at: http://www.airasia.com/iwov-resources/my/common/pdf/AirAsia/IR/AA%20Corporate%202008.pdf (Accessed: 26 November 2011).
18. Schein, E.H. (2009) The Corporate Culture Survival Guide. New & Revised edn. San Francisco: Jossey-Bass.
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