Malév- the Hungarian Airlines

Topics: Oneworld, Airline, Finnair Pages: 9 (3042 words) Published: March 21, 2010
There exist a Supervisory Board with nine members and the chairman is Magdolna Költő. She spoke about the need for change: "Implementation of the business plan forming the basis for the future profitability of the airline is only feasible through the transformation of the old corporate structure, and the establishment of far more efficient, flexible regulations adjusted to the current market environment_._” The senior management of Malév:

Chief Executive Officer - Péter Leonov
Chief Operations Officer - Géza Fehérváry
Chief Financial Officer - Piotr Ikanowicz
Chief Infrastructure and Portfolio Officer - Zoltán Mester I received the following graph from a friend of mine who is working for Malév. It is not so visible; sorry for that but she was allowed to send only this one. {draw:frame}

From this graph we can see the structure of the organization. The CEO- Péter Leonov has the accountability toward Boris Abramovich who is the Russian owner. Under the CEO there are four divisions: the Chief Economic Officer, the Chief Operational Officer, the Chief Strategic and Trading Officer, and the Chief Infrastructure and Portfolio Officer. For each division there are subdivisions. Let’s take a closer look to the Economic one. Under the Chief Economic Officer there are the Accounting and International Accounting department, the Financial department and the Controlling department. The yellow signed boxes are further groups in these departments. Malév is modernizing its organizational structure in order to guarantee profitable operations over the long term. The aim of the transformation is to create an improved, more efficient and simplified management structure with fewer departments, directorates and administrative staff. At its last session the Board of Directors of Malév Hungarian Airlines debated the company's three-year strategic plan, one critical element of which is the company's stabilization and alignment on a growth path. In order to achieve the aims and tasks set down in the medium-term plan and to ensure the group's profitable operation it is necessary to continue implementing the “reMake” programme launched, one vital element of which is structural transformation and a reduction in personnel costs. During a meeting with the leaders of the interest representation groups Péter Leonov, Malév CEO, emphasized that, "Besides reducing expenditures, optimization of the staff level is necessary primarily to ensure that 91% of the employees of the Malév Group can continue to have a secure workplace." The customary and safe operation of the airline can be fully guaranteed in parallel with the transformation of the organizational structure and cut in the number of workers. At group level Malév currently employs 3508 people. By optimizing the staffing level to bring it into line with accepted modern organizational norms there will not be a drastic reduction in the number of group employees. The cut in the workforce, not expected to be greater than 9% (maximum 250 employees), will take place in accordance with the possibilities and characteristics of individual sectors. The planned layoffs will affect less than 10% of the workforce of the group, which is completely within the limits set down in the privatization contract. Preliminary calculations show that the staff optimization will result in annual savings of HUF 1.2 billion; the return on the staff cutback is less than one year. In compliance with the provisions of the Labour Code and the Collective Contract, the airline's management will consult with the unions on the shaping of the new, modernized organizational structure, the modification of the Operational Regulations and the optimization of the workforce. Malév Hungarian Airlines has already sent out notification of its plan to implement collective layoffs to the Central Hungary Regional Employment Centre and the airline's interest representatives. 3. Analysis of the...

References: Robbins, Stephen P. & Judge, Timothy A. (2007). Organizational Behaviour. 11. Ed., Prentice Hall
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