A research on how importance of good HRM for asia's leading cost Essay

A research on how importance of good HRM for asia's leading cost airline in Malaysia - Essay Example ....................... 2.1 Introduction.................................................................................................... 2.2 Cultural diversity............................................................................................. 2.3 Performance management and evaluation..................................................... 2.4 Participative leadership................................................................................... 2.5 Line management training............................................................................... 2.6 Conclusion....................................................................................................... The importance of good HRM for Asia’s leading low cost airline 1.1 Introduction Air Asia, headquartered in Kuala Lumpur, Malaysia, is considered a pioneer of low cost airline travel and is considered the world’s best low cost airway provider. The company operates in an oligopolistic market str ucture, one where there is only a small handful of air travel carriers. In this type of market, competitive rivalry dictates the majority of strategic business decision-making in which the organisation must be adaptable and flexible to changing market conditions and competitive behaviours. In 2011, Air Asia sustained revenues of US $1.62 billion (Air Asia 2012). The company operates as Air Asia and also under different subsidiary brands, including Air Asia X, Air Asia India, Air Asia Japan, Philippines Air Asia, Thai Air Asia, and Indonesia Air Asia. This makes the company a legitimately multi-national organisation, one which must work with distinct regional social cultures in a very diverse employment model. Cultural differences make training and development critical in order for Air Asia to maintain its positive brand reputation and ensure that the organisational structure operates much like a cohesive, family-oriented unit. The company’s mission is â€Å"to be the best co mpany to work for whereby employees are treated as part of a big family† (Air Asia 2013, p.2). In order to accomplish this mission, having good human resources practices, especially in areas of training and development, is absolutely essential. Gaining competitive advantage involves ensuring expatriates adjust to new cultures within subsidiaries, promoting career succession and emphasizing team ideology in all inter-dependent business units. 1.2 Research title, questions and objectives Research Title The importance of good HRM for Asia’s leading low cost airline Research Question How can the training and development programs impact on the performance of AirAsia Airlines known as a budget airline? Research Objectives 1. Provide an analysis of training and development programs. 2. Evaluate the effectiveness of training programs for employees 3. Discover how Air Asia utilises performance management in a budget carrier business model. 1.3 Research rationale Training program s are very important for companies today as it helps to bring the company a positive brand reputation by ensuring that employees understand all operational and service delivery roles. Training and development brings more benefits to the company in terms of talent management and also provides advantages against competition through building of competencies and service skills. To understand an oligopoly, one must understand how a business utilises its employees as valuable resources to achieve mission and vision, whilst also satisfying important revenue-building customer