1. Introduction

Established in 1993 and commenced operations on 18 November 1996. AirAsir was originally founded by a government-owned pudding stone DRB-Hicom. On 2 December 2001. the heavily-indebted air hose was purchased by former South East Asiatic regional vice-president Warner Music Group Tony Fernandes’s company Tune Air Sdn Bhd for one ringgit. AirAsia Berhad is a Malayan low-priced air hose. It operates scheduled domestic and international flights and is Asia’s largest low-fare. no-frills air hose. AirAsia is a innovator of low-priced flights in Asia and was besides the first air hose in the part to implement to the full ticketless travel. Its chief base is the Low-Cost Carrier Terminal ( LCCT ) at Kuala Lumpur International Airport ( KLIA ) . In 2010 AirAsia won the Skytrax World’s best low-priced air hose award.

Air Asia budget with no-frills air hose is introduced by Tony Fernandes with the tagline “Now everybody can fly” and the adult male himself is besides the laminitis of Tune Group. No fuel surcharge and no admin fee. However. ticket menu and airdrome revenue enhancement demand to be paid. This was after great deliberation as the initial offer was 50 sen. Fernandes proceeded to engineer a singular turnaround. turning a net income in 2002 and establishing new paths from its hub in Kuala Lumpur International Airport at breakneck velocity. underselling former monopoly operator Malaysia Airlines with promotional menus every bit low as RM1 ( US $ 0. 27 ) .

2. Designation of cardinal issue

The chief issue that will be discussed in the analysis will be Tony Fernandes’ set of values and beliefs that shaped the company corporate civilization. In six words. corporate civilization is ‘How we do things around here. ’ Corporate civilization is the corporate behavior of people utilizing common corporate vision. ends. shared values. beliefs. wonts. working linguistic communication. systems. and symbols. With the tagline introduced by CEO of AirAsia Tony Fernandes ‘Now everyone can fly’ . AirAsia’s doctrine of low menus is aimed to do winging low-cost for everyone. AirAsia besides aims to do travel easy. convenient and merriment for its invitees. “A house truster in large dreams” . can be found on-line ( Profile-Tony Fernandes of AirAsia. 2006 ) Tony Fernandes famously one time said. “We Asiatic have this wont of kicking ourselves and stating it can’t be done. Anything is possible when you put your head to it. ” ( hypertext transfer protocol: //www. rdasia. com/a_dream_takes_flight/ . no day of the month ) . At AirAsia. there is a sense of being in a good household.

Tony Fernandes believes that his employees are his greatest assets and encourages a civilization that emits positive vibraphones to guarantee that every participant in the squad is committed and unified to put about accomplishing their shared ends. He one time said in an interview. “We do every spot we can to win. including doing certain that we have the right ambiance at work. Keeping our civilization integral entails a batch. We have to do certain that we stay true to winning values and traits: industry. grasp for diverseness. subject. flexibleness. honestness. friendliness. passion for larning and excellence. and a echt concern for the public assistance of all. ” This shows that he began by puting the right foundation on which his company operates on. Keeping the AirAsia civilization is a batch of work. but it does non intend all work and no merriment for the employees. Harmonizing to Tony Fernandes. the AirAsia staffs are all rather happy to lend towards maintaining what they call “Culture All Stars” .

Organizational civilization ( hrm ASIA. 2010 ) . It is what their success has been built on and what keeps their staff coming back for more. Tony Fernandes’s creed. “Believe the incredible. Dream the impossible. Never take ‘No’ for an answer” has clearly helped determine the AirAsia civilization to what it is today. ( hypertext transfer protocol: //www. rdasia. com/a_dream_takes_flight/ . no day of the month ) . “We’ve someway managed to maintain this uplifting atmosphere traveling for us. and we attribute our success to our corporate religion in. and committedness to. our raison d’etre: Now everyone can wing. ” Organizational civilization ( hrm ASIA. 2010 ) We will next delve deeper for a better apprehension of how the values of the ‘Corporate culture’ turned AirAsia into one of the taking air hoses in Asia.

3. Outline of the theoretical model

We will be utilizing the three degrees of organisational civilization as defined by Edgar Schein ( 2010 ) to analyze AirAsia. “Culture” . as officially defined by Schein ( 2010. p. 18 ) is “a form of shared basic premises learned by a group as it solved its jobs of external version and internal integrating. which has worked good plenty to be considered valid and. hence. to be taught to new members as the right manner to comprehend. believe. and experience in relation to those problems” . The three degrees of civilization are viz. artefacts. espoused beliefs and values. and basic implicit in premises. Artifacts are described by Schein ( 2010. p. 23 ) as the surface degree of civilization. as they can include the things that a individual see. hear and experience when they join a new group and are sing their civilization for the first clip. Artifacts are seeable and ‘feelable’ constructions and procedures. and can besides be an ascertained behaviour. However. one drawback is that they can be hard to understand and decode ( Schein. 2010. p. 24 ) . Therefore. the true civilization of the organisation can non be understood by entirely looking at the artefacts.

To understand more. it is necessary to look at the following degree. Espoused beliefs and values are ends. values. aspirations and political orientations shared by everyone in an organisation. Normally. these values are laid down by the leaders or laminitiss of the organisation ( Schein. 2010. p. 25 ) . However. espoused beliefs and values can sometimes be reciprocally contradictory ( Schein. 2010. p. 27 ) . Therefore. the organization’s civilization is merely understood merely on the surface degree. Basic implicit in premises. which are unconscious and taken-for-granted beliefs and values provide for a deeper apprehension of an organization’s civilization. Schein concluded that the kernel of a civilization lies in the form of basic implicit in premises ( Schein. 2010. p. 32 ) .

If the basic implicit in premises are non deciphered. it will be difficult to understand the artefacts and espoused beliefs and values right. As Schein ( 2010. p. 32 ) himself had concluded. any group’s civilization can be studied at the three degrees. The three degrees of civilization allows for an analysis of AirAsia’s organisational cultural from an experimental degree. Information can be readily drawn from concern reappraisals. intelligence articles on AirAsia. interviews with AirAsia’s laminitis Toney Fernandes and AirAsia’s web site. therefore doing Edgar Schein’s three degrees of civilization an ideal theoretical account for analysis of AirAsia’s civilization.

4. Analysis
5. 1 Artifacts

It is a normal process to hold an initiation organized by the Human Resource Management squad to welcome new employees into the AirAsia corporation. A corporate civilization section in AirAsia was set up in August 2004 to advance the AirAsia spirit and household atmosphere through close communicating and exciting activities designed particularly for AirAsia employees. This act supports the statements made by Tony Fernandes ; that his employees are the driving force behind the brand’s success. The aim is to guarantee that the AirAsia employees across the universe uphold the civilization of ONE PEOPLE. ONE CULTURE. ONE AIR ASIA and ONE FAMILY to make the end of guaranting the best experience at ONE AirAsia wherever they fly. The people of AirAsia are their plus. and their dedication. finding and forbearance have made AirAsia a success narrative. They have built contributing and positive AirAsia civilization that permeates all the line of operation. Annual study ( AirAsia. 2006 ) .

There are five published list of values at AirAsia that are inculcated in the employees – safety. passion. unity. lovingness and merriment. These values provide a frame of mention for AirAsia experience and a corporate civilization in which they live and present peak public presentation. Tony Fernandes’ usual manner of dressing at work besides reflects the civilization at AirAsia. He goes to work have oning his trade grade ruddy AirAsia cap. short sleeved jerseies and a brace of denims which are sometimes older than his employees. By making so. he is able to interrupt the psychological barrier of communicating between himself and his employees and acquire everybody to speak and give priceless thoughts. As mentioned earlier. “People are AirAsia’s best plus. ” Tony Fernandes would wish to make a level construction. where everyone has entree to the large foreman and that allows him to acquire the best people and detect their possible and endowment. A all right illustration of such find of endowment would be Azmir Hashim. a former Guest Service staff who successfully graduated from AirAsia’s plebe pilot plan.

This proves that Tony provides support that fulfils the dreams of his employees. In this manner. Tony Fernandes has created a friendly and accessible working environment within his company. Tony Fernandes’ doctrine of low menus aimed to do winging low-cost for everyone while supplying convenience and merriment for its invitees across the part is reflected by the successful Airbus A320. which is known for its fuel efficiency. high dependability and low operating costs. The Airbus offers invitees greater width infinite. a quieter drive and matchless comfort. In December 2007. AirAsia became the largest Airbus A320 client in the universe. The fleet consists of 56 Airbus A320 aircraft spread across Malaysia ( 44 aircraft ) . Thailand ( 8 aircraft ) and Indonesia ( 4 aircraft ) as of the terminal of 2008. Annual study ( AirAsia. 2008 ) . Through this attack. AirAsia has greater flexibleness to run into the demands of each market while constructing on the cost efficiencies of runing one aircraft type.

5. 2 Espoused Beliefs and Values

At AirAsia. where Tony Fernandes purposes to make the best environment within the company to work in. employees are treated as portion of a large household. and being household. safety ever comes foremost. AirAsia has committed itself to a programme of cut downing hazards and jeopardies usually associated with the air power industry through a Safety Management System. This committedness is extended to guarantee the full integrating of a safety civilization. safety policy and safety aims in a proactive attack to aviation safety. In short. the Safety Management System is non merely an add-on but a core portion of AirAsia’s concern procedure. A Safety Management System relies on the development of a coverage civilization by all employees and is a vehicle for guaranting that jeopardies and safety lacks are brought to the attending of those who have the authorization to do alterations. CEO Tony Fernandes has pledged that he would non take disciplinary action against any employee who dared to do a base and describe a safety jeopardy to the company’s direction. and no staff member will be asked to compromise AirAsia’s safety criterions merely to acquire the occupation done.

“Training of employees to guarantee they can execute their undertakings in a safe and efficient mode is an indispensable ingredient of AirAsia’s Safety Management System. It is management’s duty to do available and carry out this preparation. and it is the employee’s duty to follow safe working practices” . said Tony Fernandes. who highlighted that safety is a nucleus value of his company. Annual study ( AirAsia. 2010 ) . To Tony Fernandes. the staff members are the pillars of his company. where everyone has a opportunity to reflect regardless of their race. gender. credo. age. disablement faith and sexual orientation. The critical thing is to guarantee quality work from the staff. and Tony Fernandes believes all these start from supplying a happy workplace for them. The Junior Wings Club was set up in 2008 to promote interaction and friendly relationship between the households of AirAsians.

The aims of this Club is to let the kids of the AirAsia staff members to understand their parents’ occupations. hone their characters and leading accomplishments. leave them with cognition on assorted topics and tap on their creativeness by take parting in activities together. The purpose is to keep a healthy balance between work and personal life so that it will ensue in higher efficiency in work public presentation at AirAsia. This is an illustration of how AirAsia lives up to its promise of “Valuing Our People” . Annual study ( AirAsia. 2008 ) . Another chief value at AirAsia is to heighten the guests’ experience by bettering velocity and efficiency at every interface between the invitees and the air hose. A comprehensive Microsoft-based Customer Relationship Management ( CRM ) system was deployed since 1 April 2010. This Customer Relationship Management ( CRM ) system integrates its assorted gross revenues. service and selling enterprises onto a individual platform which allows AirAsia to interact with invitees on a more informed footing and seamster its services to run into single guests’ demands.

From reserves and check-ins. to baggage managing. embarkation and in-flight Customer Relationship Management ( CRM ) takes attention of them all. AirAsia supervisory staff members are strategically located at the airdromes to supply on-the-scene aid to the invitees. There are besides Service Counters in the going halls to manage questions. In 2010. AirAsia introduced new nomadic phone apps for smart phones which makes booking-on-the-go more convenient. In January 2011. AirAsia besides introduced the construct of web and self check-in. This allows invitees to look into in from their laptop or computing machines yearss before their going day of the months. Guests can besides rapidly identify in their flight inside informations at booths at the terminal airdromes to obtain a embarkation base on balls without holding to line up up at a counter when they do self check-in. All these new executions serve to do good its promise “to make travel easy. convenient and merriment for its invitees. ” The Board of Directors of AirAsia is committed in guaranting the highest criterions of corporate administration are applied throughout the Group.

Reviewing adequateness and unity of the Company’s internal controls is one of the responsibilities and duties of the Board. The Board is made up of Non-Executive Directors. and they are individuals of high quality and unity who jointly possess rich experience. It is required that all Non-Executive Directors are independent in character and opinion who do non take part in the daily direction of the company and do non affect themselves in concern minutess or relationships with the Group in order non to compromise their objectiveness. In order to better the overall organisational effectivity and to continue the unity of the Company in the eyes of the populace. the Company has updated the whistleblowing plan during the twelvemonth which acts as a formal communicating channel where all stakeholders can pass on their concerns in instances where the Company’s concern behavior is deemed to be contrary to the Company’s common values.

All concerns will be addressed to the Chief Audit Executive ( Audit & A ; Consulting Services ) . who will so measure all concerns reported and urge the appropriate action and all inside informations refering to the name and place of the whistle blower will be kept purely confidential throughout the probe proceedings. Mazliana Mohamad was appointed the Regional Head of Audit and Consulting Services in 2010. Her chief functions include supplying independent and nonsubjective confidence and consulting services designed to better the effectivity and efficiency of AirAsia’s operations and unity of the fiscal coverage and to guarantee conformity with applicable Torahs and ordinances. Practicing the highest criterions of ethical behaviour and showing honestness in all the line of work is critical to derive trust and bid common regard at AirAsia. and this is in line with Tony Fernandes’ beliefs of his company’s “winning values” .

Puting ends beyond the best and reenforcing high quality public presentation criterions is to back up AirAsia’s values of “Excellence in Performance” . In its enterprise to be a fully fledged self-sufficing air hose. AirAsia has set up its ain Academy which commenced operations in April 2005 with a vision to supply and carry through developing demands that would back up their mission to present low-cost. high quality benefits to their clients across the part. The Academy is a one-stop. comprehensive acquisition Centre and caters to all the of import and necessary demands for all its employees. This includes pilots. applied scientists. cabin crew. rage support and invitee services front-line staff. The course of study undertaken conforms to international criterions and this preparation installation complies to all the ordinances of the Malaysian Department of Civil Aviation. Thai Department of Civil Aviation. Indonesian Department of Civil Aviation and Civil Aviation Safety Authority Australia. Annual study ( AirAsia. 2008 ) .

5. 3 Basic Underliing Premise

There is a great sense of authorization of AirAsia enhanced by an unfastened office layout which encourages easy interaction between everyone and level hierarchy that breaks down psychological and cultural barriers. All staff ( All Star ) can near any member of the direction squad to voice out an sentiment or portion an thought. Good thoughts. proposed by anyone. can be implemented rapidly because there is small bureaucratism. At the same clip. bad thoughts can be scrapped merely as fast. The AirAsia staff members understand that bring forthing thoughts is non limited to the managers and executives of the company and that everyone can lend thoughts irrespective of their rank in the company.

This informal construction means non merely that there are more than 8. 000 encephalons ( of All Star ) lending to the company public presentation as opposed to merely 20 or so at direction degree. It besides helps to maintain costs down by tapping on internal resources as opposed to paying for outsourced external aid. Human capital development at AirAsia is about supplying chances to their people ( All Star ) ; chances such as carry throughing the dreams of the cabin crew and land officers to go pilots. This helps to develop endowments within the company and saves cost on engaging a trade name new employee who needs to be trained from abrasion. With the basic premise of ‘Now Everyone Can Fly’ . AirAsia is runing in a cost optimisation doctrine to do winging low-cost for everyone.

5. Decision

With the foundation that Tony Fernandes has created. the AirAsia staff members are presently in a friendly workplace with a level hierarchy. This creates a contributing working environment where everyone can execute at their best. With the low cost executions in topographic point. AirAsia has continued to present its promise of low-cost airfares with dependable services. As a company antecedently with about RM40 1000000s in debt. AirAsia has made enormous progressive stairss to where it is today. thanks to the leading of CEO Tony Fernandes. With the growing that sees AirAsia presently in 18 states. it has possible to come on even more. Continued success creates strongly held shared premises. and therefore a strong corporate civilization nucleus. If the internal and external environments remain stable. this continues to be an advantage.

However. if there is a alteration in the environment. some of those shared nucleus premises can go liabilities. exactly because of their strength. An illustration is a alteration of leading in the company. Tony Fernandes created the really environment AirAsia is right now. But when the clip comes for him to go forth the company. the civilization may decrease along with his going. “New leaders who come into the organisation who do non portion or value the nucleus premises on which the organisation was built may ensue either from the going of the cardinal civilization bearers and the inability to happen replacings with the same values and premises. or because the board wants to alter the nucleus civilization and intentionally brings in foreigners with different values and premises. ” Schein ( 2009. p. 171 ) .

6. Recommendations

From the analysis so far. we can see that AirAsia values its employees every bit much as its clients. The grounds is the environment created for its staff and its fulfilment of promises made to its clients. However. the leading for AirAsia should non be taken for granted. In the face of the possible menace that Tony Fernandes may release his function one twenty-four hours. calling development plans can be rolled out to protect and continue AirAsia’s civilization. Top executing staff such as managers and executives could undergo developing to fix themselves for this possible function in the hereafter. An internal campaigner would be more suited as this individual would hold been exposed to the AirAsia civilization and familiar with the manner AirAsia operates.

This plan in topographic point would probably guarantee that the AirAsia civilization can be preserved. and AirAsia will besides retain its place in the air power industry. Aside from this. regional meetings and squad edifice Sessionss are recommended to be held sporadically to maintain the part abreast of each other’s activities internally. and it would besides beef up relationships between employees from different states. This will besides guarantee that AirAsia is consistent in their visions and beliefs regardless of their location. In decision. AirAsia is making a great occupation and they should continue their civilization and continue with their manner of operation to bask success in the hereafter.

7. Mentions
1. Profile-Tony Fernandes of AirAsia ( 2006 ) Available at: hypertext transfer protocol: //www. skorcareer. com/malaysia-eng/tonyfernandes-airasia-profile. htm ( Accessed: 26 November 2011 ) . 2. hypertext transfer protocol: //www. rdasia. com/a_dream_takes_flight/ ( no day of the month ) ( Accessed: 26 November 2011 ) 3. hrm ASIA ( 2010 ) Organizational Culture. Available at: hypertext transfer protocol: //www. hrmasia. com/resources/employer-branding/organisational-culture/41247/ ( 2nd ) / ( Accessed: 26 November 2011 ) 4. hypertext transfer protocol: //www. rdasia. com/a_dream_takes_flight/ ( no day of the month ) ( Accessed: 26 November 2011 ) 5. hrm ASIA ( 2010 ) Organizational Culture. Available at: hypertext transfer protocol: //www. hrmasia. com/resources/employer-branding/organisational-culture/41247/ ( 2nd ) / ( Accessed: 26 November 2011 ) 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 study. Available at: hypertext transfer protocol: //issuu. com/airasia/docs/aa-corporate-06 ( Accessed: 26 November 2011 ) . 14. AirAsia ( 2008 ) Annual study. Available at: hypertext transfer protocol: //www. airasia. com/iwov-resources/my/common/pdf/AirAsia/IR/AA % 20Corporate % 202008. pdf ( Accessed: 26 November 2011 ) . 15. AirAsia ( 2010 ) Annual study. Available at: hypertext transfer protocol: //www. airasia. com/iwov-resources/my/common/pdf/AirAsia/IR/AirAsia_AR10. pdf ( Accessed: 26 November 2011 ) . 16. AirAsia ( 2008 ) Annual study. Available at: hypertext transfer protocol: //www. airasia. com/iwov-resources/my/common/pdf/AirAsia/IR/AA % 20Corporate