Malaysia airlines case study

The organization is a member of one world airline alliance and is the flag carrier of Malaysia. Its headquarters are situated at Kuala Lumpur International Airport. MA purpose is to provide air transport and travel and to champion freight Malaysian hospitality service that is ranked among the best with respect to punctuality, safety, and comfort. The organization aims to offer the best quality of care and services to its customers and therefore generating sustainable value for its stakeholders (Wong & Musa, 2011). It has been exploring innovative methods of carrying out business while maintaining its relevance to its inspiring and core motto; "go beyond expectations". The organizations groups employees according to their specialized roles. The organization structure is tall meaning that it has a lot of hierarchical levels which shows the authority and status of employees.

This means that the managing director has a broad area of control, therefore, putting him under the pressure managing all the different departments under his control. Furthermore, he is under the board of directors who have the authority to pass their instructions throughout the whole organizational structure. The level of bureaucracy makes it difficult for organizations to respond to changes in the market quickly despite operating in a stable environment. Disadvantages I) Management issues Due to high level of formalization and standardized ways of operation in a functional structure communication might be rigid. This makes decision making process inflexible and slow because it is more bureaucratic. Functional units are mostly not accountable to each other due to the high level of bureaucracy.

Again there is the likelihood of poor coordination tin within the departments. II) Unit coordination Despite functional units performing with high efficiency level, their department’s cooperation in most cases is compromised. Morale of the airline's customers and Workers had been affected by the twin tragedies of 2014, therefore, restructuring would ensure boosting up the workers' morale. What specific lesson in organizational structure could be learnt from Malaysia Airlines restructuring efforts? And what did it help in the airlines problem? (10mks) To sustain the restructuring changes in the airline, corporate culture is the most important in driving this change as it includes how the workers and customers are likely to behave in relation to the company. Rebranding the image of the airline, networking and how communication will flow is critical.

Again delayering of the levels of hierarchy from a narrow structure to a more flat one would decrease the span of control for different managers. This has reduced the chain of command allowing more direct, better and faster communication between staffs and managers. (5mks) Poor communication Poor, slow and indirect communication between staff. This problem is due to the hierarchical layers of the airline. This chain of command impacts on the quality of information that is passed down to the workers hence influencing the kind of services provided to customers. It leaves staffs and crew feeling more isolated from the top management impacting negatively in their morale. What kind of decision making style do you think would be least appropriate for situation Malaysia airlines was in as reported in the article? Give reason for your answer.

The airline reported an annual loss of $380 million in February 2014. It have been making losses. This loss is mostly due to the airlines higher cost as compared to other airways such as AirAsia which are its competitor. MA deployed a fleet of six A380s in it kangaroo route which is dominated my Middle Eastern carriers such as Emirates and Etihad which has led to capacity underutilization. The loss of MH370 AND MH17 has also propagated the company to continue making losses as its dented public image led to ticket sales decline. Step 5. I choose the second option, this is because in remaking MA airways again they need to gain the customers trust in the airline which have been heavily dented by the loss of the two planes.