In this study we are going to discuss about the GRC and define how it works in Malaysia airline. Malaysia airline, the Asian carrier staggering on the control of failure after two disasters in four months, is to be engaged private by the country’s independent prosperity fund in a release plan that will see the airline delisted and reorganized. Khazanah, which is the main shareholder in Malaysia Airlines with a 69 per cent stake, said it was recommending to pay Rm1.4bn ($436m) to purchase out the carrier’s minority stockholders.1.
Companies generate value for and shareholders and customers through the efficiency and competence of actions that stream crossways organization limitations frequently mentioned to as the firm’s well-designed business procedures. Business process management (BPM) periods both business and technology and delivers a level of perceptibility and regulator finished the processes. To enhance and withstand business process developments, it is vital to connection some form of authority that makes the right constructions, metrics, characters, and tasks to ration, progress, and manage the recital of a firm’s end-to-end business procedures. According to Maria Hove et al, (2014), the principles of BPM governance are essential to any organization.
Strategic human resource planning also is a linkage between industry’s strategic plans and human resource management. It is needed for all midsize and large size firms (Morgan C. Mutoko, 2014) in order to meeting organization missions and comprehensive economic strategies to certify they reach managerial objectives.
Malaysia airline suffers missing values and customer trust because of MH370 missing and MH17 crash in 2014. These two dramatic happens had a very serious impact on the Malaysia National airline which was faced to non-profitability within recent years. Following this matter Malaysia
prime minister, Dato Sri Najib Tun Razak called Mr Christophe Muller an originally German aviation business specialist as airline new CEO and first ever foreigner one aiming new policies operation in order to industry growth according to his successful background. It is obvious as that the new CEO for a bankrupt firm faces to many organizational issues as well as Mr, Muller is with.one of issues ahead is human resource strategy problems which needs to challenge and solve with professional pathways and policies in order to organizational development to achieve the future goals of the airline.
Control environment and control activities
According to OECD report (2005), in the industrialized economy more than 70% of employment provided by service industry. Airline industry is also one of them however the technology growth have simplified a move from industrial to services with showing huge higher income rate and of course it needs more human resource capital (Chia-Mei Lu et al, 2015). Strategic decision making implementation will be very hard with many human resource issues in industries. Human resources have features that vary from most other capitals in the firm, such as its corporeal creation and monetary assets.
Effective human resource is one of the most impost important component in strategic human resource planning due to most staff turnover in Human Resource Management system (Chia-Mei Lu 2015). Furthermore, organizations are at present leaning to the employment of a typical established of HRM performs that highlight the human side of people organization and persuade the anticipated conduct to attain administrative purposes; this aspect merits additional inquiry. According to James D.Webel (2005) strategy human resource management highlighting on line up inside dependable human resource management performance to hire knowledgeable and skilled workers and their efforts and abilities to achieve business goals and objectives. Framework for Strategic Human Resources Management
A Strategic Human Resource Management frame work was developed by Patrick M. Wright (2008) created on skilful argument and advanced over examination of the matters recognized in the cases. The purpose of the S-HRM framework is to guide SMEs, especially those entering the global supply chain, on the important steps for upgrading their HRM systems for long-term growth and profits.
The S-HRM framework involves: 1) identifying opportunities and challenges of economic liberalization for the company,
2) leveraging its own human resources, by clearly establishing their strategy and utilizing their human resources effectively, 3) tapping innovation and technology for competitive advantage, and 4) shaping its organizational culture by introducing various management systems and practices in order that the values the management holds would be shared and implemented effectively throughout the organization. Central to these steps is the need to clarify and articulate the leader’s values and orientation.
Figure 1: Strategic Human Resource Management Framework (S-HRM)
Regulatory and Compliance
Strategic human resource management has many issues to clear by CEO of organization to achieve competitive advantages.
Human resource will be more complicated because of human relations issues in multiple organization combination due to increasing the diversity of workers. Human resource also have
very notable relation with supply chain management (Gowen 2003) in the firms. The ingration of human resource with supply chain management has been confirmed with (Lengnick-Hall et al, 2013) and according to Ellinger et al (2014) human resource contribution can effect on supply chain success.
Mr Muller, as new CEO for today challenging Malaysia Airline requires to consider the relationship between staffs in different departments and related organizations of Malaysia Airline as well as a deep notice on supply chain issues which is predictable to occur or increase by human resource faults.
In terms of competitive advantage achievement, highly skilled workers and knowledgeable hiring is very important to consider (Edward E. Lawler 2015). They must also have a quite steady work force subsequently worker income workings straight in contradiction of procurement the generous of organization and executive knowledge that information to fast reaction and high quality services.
To develop job employment recruitment in the firm and retention strategy some items are required to consider by HR manager.
Develop a recruitment and retention strategy based on discussions with the social workers. Human resource manager must provide a supple work preparation for employees in addition to provide them work contract to reduce their job stress and increase their feeling of safety. Other necessary component is providing the opportunities to growth professionalism and workers skills. Talent Centric Strategy of Human Resource
By the means of the programs and practices that is put into practice with the aim of influencing workforce, HR has mainly been defined during the last 30 years. Both inside and outside the organizations, the competition for talent can be held. It is a global competition. A distinctive talent value proposition needs to be created by the organizations. The talent’s quality and amount as well as how it is organized to bring the strategic success under influence also need to be discovered systematically.
The outside of HR employees and leaders’ thoughts, decisions, and actions have much more influence on the talent competition in the future compared to the quality by which the HR hands
over its services. Even if needing some conversations which are not comfortable, the pivotal talent in addition to the organization elements will be invested on by the winners in the future. As a significant strategic resource which ought not to be optimized, talent will no longer be considered as an asset that is precious. The talent decisions’ quality made throughout the organization, the HR’s services as well as expertise will be accounted for by the HR itself. Retaining and Motivating Talented Staffs with Various Experiences Hiring the talented workers has been considered in Malaysia airline new policy with divers work background with motivation them is another important task.
This goal is critical if any organization is to retain its competitive advantage. In today’s environment, organizations are very concerned about not only dealing with a shortage of talent inside and outside the organization, but also preventing the loss of current employees. Granted, these issues have always plagued organizations, but the ramifications are now heightened due to the global competition for talent. In order to achieve these goals, organizations have started using technology to facilitate the compensation and benefits process (e.g., CedarCrestone, 2014, Dulebohn and Marler, 2005 and Fay and Nardoni, 2009).
Employee Training Strategy
It’s hard to predict that how is the workers performance in their job and very challenging to make a tough circumstance that a specific asset in staffs with new training plan and new employees to guide them in a new job growth to has very effective influence on organization financial performance (Dianna L. Stone et al, 2015).
The CEO of M.A.S needs to employ and appoint new staffs and educate them accurately and train the firms previous staffs in order to new M.A.S goals and working strategy to growth the airline performance to change the organization image and achieve new organizational values with aim to competitive advantage achievement.
As an economic industry Malaysia airline needs to prepare suitable and essential work situation for in order to style a good impress (Rodica Dragomiroiu et al, 2014) about the new work
environment and industry work condition which is very significant to their good habit development in their job position.
HR has been reminded and required to be more strategic for a long time. The organizations have also been reminded to obtain, spread, promote and organize talent in a way that is appropriate to its strategic importance. However, as the studies of CEO make it clear, HR is not making the required progress. It is not yet known how it is possible to bring changes to it. There are some basic questions to which the answers of the leaders both inside and outside HR are not clearly known. These questions include the followings:
With the aim of driving sustainable success, how can talent be organized?
Should talent be made or bought?
What are the strategically pivotal organization design elements?
What are the talent management’s decision science’s key elements?
In order to decide how the HR will be in future, to the above mentioned questioned answers must be found.
A process of singling out the activity measurements of every single employee is called the performance indicator. The appropriate Human resource can be found in BA. With the aim of creating high performance HR culture, it has the suitable support and motivation. In other words, in order to get high class productivity, the managers might involve together with the staff. The individual performance can be assessed by the survey reports. Containing the engagement index by the help of which it is possible for the managers to track and take an action, they will be quarterly introduced.
Malaysia airlines as the Malaysia’s largest international scheduled airline is also high profile. This airline has 112 Boeing, 21 Airbus 32 Fokers and 50 other types of aircrafts to operate in different Malaysia airports.
Human resource management tasks, both international and national, are greatly influenced by culture. According to David M. Sikora et al (2014), inappropriate and costly cultural unreal supporters, at the group level, might be resulted in by lack of information regarding the responsibilities of cross cultural business. Mark L. Lengnick-Hall (2013) believe that having the experience of change problems is also probable for the cultural fitting that is poor. The opinions, standards, ideas, the most important values, and thoughts which are shared profoundly at an organization, are made use of in order to give a definition to the organizational culture in the social context model.
Ferris et al. (1998) is of the same opinion that the above mentioned characteristics affect the governing systems of the firm and the consequent member behavior greatly because they are shared across the organization systematically. As an instance, line managers are supposed to make use of the practices like a high level of HR practice implementation, which are supposed to be of great organizational value. On the other hand, the firm’s HR practices might not implemented by the managers if according to the standards of the organization, employee management is not of a high priority Managing Diversity
According to E.F. Curtis (2008) Managing diversity is one of the main challenges for HRM in modern organizations. Chia-Mei Lua (2015)
distinguished that furthermost strategic human resource simulations tacitly expected workforces as general and similar, deprived of seeing inside changes among staffs. Consequently, to diversity integration is essential in Strategic Human Resource Management considerations as the result of investigation by Curtis. Environment
According to Denison (1996), although being identical to organizational culture, the staffs’ environment understanding, which is both short-term and inconstant, is supposed to be the organization’s climate. The opinions of the line managers about the significance and implementation of HR practice can be under the effect of the environment as it is under the effect of organizational culture. According to social context theory, the HR practices which are considered to have a management goal which is short-lived, do not seem to be applied by the line managers.
What is more, the social context theory also suggests that the line managers will act in ways that are more self-interested if for any reason an organization’s climate reflects short-term penalties or prizes. Consequently, it is supposed that the managers will only implement these HR practices the time when they gain profits from them or whenever not implementing them will be associated with some punishments for them.
Organization Interaction and Political Matters
Two of the other significant constituting parts of the social context model are the political considerations and the social interactions of the organization. Whatever gets done in the organizations, which are supposed to be political arenas, is decided upon by the social interactions. Some examples for them are competing interests, building partnership, positioning, and holding power (Mintzberg, 1985). The culture of the organization is shaped by the mentioned political characteristics as well.
Lack of connections between the practice design and execution of HR and culture can also be given an explanation by the political considerations.
The acceptance of HR practices is more influenced by organizational politics, federal laws or environmental menaces as compared to the organizational requirements, according to Johns (1993). Consequently, if certain HR practices which are inspired politically beget to be used and implemented continuously, this might probably threaten the line managers.
Altogether, in order to figure out and predict the HR implementation decisions and behaviors of the line managers, a great conceptual foundation is brought forth by the social context theory. Ferris et al., (1998) believe that the way the development and implementation of HR practice is formed under the effect of the values, beliefs, viewpoints, and political issues of an organization is emphasized by the social context model.
As a consequence, the HR practices of the firm might not be executed if the production goals are the main focus of the standards of the line managers at the expense of other management practices. Likewise, line managers might probably not implement the HR practices of their organization if they have the opinion that the in culture of their organization no value is given to the effective employee management.
Stakeholder’s Corporate Supervision
An absolutely necessary change in the way the company and its role are defined is reflected by the relationship-based management. Not only do the CEO and executives think of themselves as being the investors but they also believe that they serve the interests and perspectives of the stakeholders that are of crucial importance for the company. Creating significant relationships with stakeholders both inside and outside the organization is the main focus of the management. Maintaining and developing the relationships on which the corporation is dependent instead of ordering and bossing around the corporate resources is the most important role given to the managers.
With the purpose of spotting and establishing relationships with significant stakeholders, an approach, which is integrated, company-wide as well as long-term, is taken by the relationshipbased management. Instead of protecting and defending the company from the stakeholders’ requirements, opportunity establishment for mutual benefit is the goal of the endeavors. Between the values of the corporate and strategy of the business and also the relationship building, there is a direct connection. The staff, considering the strategic value which is given to the function of building relationship, is give an award to because of acting in harmony with the basically essential values of the company besides the opportunity identification that is helpful for the corporation as well as its stakeholders.
The fact that business success is dependent upon the local and global communities, staff, suppliers, in addition to the environment’s well-being, forms the basis of the management which is relationship-based. What is shown is that, social values and pressures are changing and more importance is being attached to corporate responsibility and accountability. Much more significant than that, it is a strategic reply to the requirements of an economy which is shifting and disordered and in which most of the value-creating assets of the company are not perceptible. A source of competitive benefit which will be presented here is the relationships of the stakeholders. Besides increasing innovation, raising flexibility, lessening costs, and allowing
companies to provide fast replies to customer requirements which are changing, can be some of the consequences of strong relationships. It is possible for the companies to absorb and keep the best staff if they have a good reputation. The reputation for which, sound relationships with customers and communities form the basis. To have bottom line gains and long-term development, increased honesty and support from the investors, staff, clients, as well as business partners are essential.
As we will see, stakeholder relationships can be a source of competitive advantage. Strong relationships can stimulate innovation, increase flexibility, reduce costs, and allow companies to respond quickly to changing customer requirements. A good reputation, based on sound relationships with customers and communities, means that companies can attract and keep the best employees. Enhanced loyalty and support from employees, customers, investors, and business partners translates into bottom line profits and long-term growth The mission of CEO due to growth organization management
CEO Job is determination between management and organization performance. Several studies have examined structural characteristics and board processes as drivers of board monitoring and advice (e.g. Nicholson and Kiel, 2004 and Payne et al., 2009), also in different institutional contexts (Minichilli et al., 2012). However, the literature overlooked the role of potential contingencies (Filatotchev & Nakajima, 2010). This study explores the effect of past firm profitability and industry regulation on boards’ monitoring and advice tasks. It moves away from the idea that board activism is a function of structural features or working style, and hypothesizes that boards’ engagement into different tasks varies according to firm-level and industry specific conditions.
Findings show that greater industry regulation is positively associated with monitoring and advice, while firm profitability is negatively associated to both tasks. This study contributes to theory and practice. First, boards do not always engage in board monitoring and advice tasks, but internal (performance) and external (industry regulation) factors affect their behavior. This is consistent with the predictions of Ocasio’s attention-based view of the firm (1997). Second, boards in a highly performing firm are perceived as rather passive both in monitoring and advice. Overall, boards seem reluctant to challenge CEOs and managers when firms are operating profitably. It would be interesting investigating the reasons behind the lack of engagement and there is potential for future research.
Away from Organization to Organizing
For the last 30 years, despite enormous change in technology, globalization, and customer requirements, executives and researchers have defined organizations as independent and relatively static systems–and have attended largely to strategy, structure, and the formal and informal processes that lie within the organization’s boundary. In today’s dynamic environment, organizations need to be “in process,” and sustainable success requires organizational agility both within and across boundaries. How does an organization that is “built to perform” achieve the agility to be “built to change”? CEO has been doing a series of studies examining new ways of organizing with an eye to providing frameworks and models to help organizations become flexible and boundary less.
Organization Management Due to CEO Mission
The mission of CEO is to improve how organizations are managed. By some researchers such as Nicholson and Kiel (2004) and Payne et al. (2009) structural characteristics and board processes have been identified as the board monitoring and help drivers. Minichilli et al. (2012) has also studied it in various institutional contexts. While Filatotchev & Nakajima, (2010) is of the idea that the potential contingencies’ role has failed to be noticed fully by the literature. The way the monitoring and advice tasks of the boards are influenced by the gainfulness of the previous firm and the regulation of the industry is explored in this research. The fact that the board activism is the structural features’ function or working style is not believed to be true in this study.
It is assumed that based on the conditions that are firm-level and industry specific, the engagement of the boards into various tasks changes accordingly. According to the results of the study, the monitoring and advice influence greater industry regulation and firm profitability in positive and negative ways respectively. Both theory and practice are contributed to by this research. First of all one should take it into the consideration that although internal and external factors (performance and industry regulation respectively) have an effect upon the boards’ behavior, they themselves do not get engaged in board monitoring and advice tasks. The prognostications of Ocasio’s attention-based view of the firm (1997) are in consistence with these findings.
Secondly, roles which are somewhat passive both in monitoring and advice are assumed to be performed by the boards in a firm that is performing highly. In total, whenever the firms function fruitfully, boards do not seem to be very eager to challenge CEOs and managers.
Away from Organization to Organizing
During the last 30 years, the organizations have been described to be independent and rather static by the administrators and researchers. They have also paid great attention to the formal/informal processes, structure, and strategy which lie within the boundary of the organization although there are great changes in the needs of clients, technology and globalization. The organizations need to be in process especially in the today’s environment which is dynamic. What is more, within and across boundaries, the organizational agility is needed for the sustainable success to be achieved. How it is possible to help an organization achieve the agility required to be built to change while that organization is built to perform is a question to be raised. With the aim of helping the organizations become flexible and no have boundary, novel ways of organizing with the purpose of providing frameworks and models, are being studied by a group of research being carried out by CEO.
Affirmed by (John E. Delety, 1998) human resource management works as an important tool in organization strategy performance process.
Designing organizations which are able to achieve sustainable success is the main focus of the most recent studies. According to the organizations which are taking the future into account, the societal and environmental resources required for their successful functioning will not be abundant. They also believe that they cannot consider these resources’ consumption as externalities and that they are not responsible for it. On the other hand, what these organizations are trying to do is sustaining the resources of the earth and humanity by finding business and organizational models.
Focusing specifically on the organizing methods which are cross-functional and crossorganizational, the way of creating sustainability into the organization design is inspected in our program. Fundamental shift is required if one aims to create the sustainable effectiveness foundation. New organizing methods are needed in order to deal with the global problems which are messy. One of these approaches is building organizations’ networks which come together in unified attempts.
In order to involve the staff, have novel methods to cross-functional coordination, as well as new types of stakeholder interfaces, the organizations’ ability need to be increased. Some other points that need tobe addressed are as follows:
the inconsistent ways that the task is performed in the global economy and ecology which are connected to a great degree,
the favorable moments and expenses held for the communities and populations
and finally the challenges which are presented against the traditional opinions regarding organizing
Principles of sustainability being translated into practice have been considered the core values in some of the organizations. According to what Brian E. Becker (2006) believes to be the case, sustainability is neither a program nor a veneer green wash for these types of companies. Complicated interconnected results for people, profit and the planet’s social, economic, and ecological well-being are focused on at the same time in these organizations. Focusing on various things simultaneously is becoming essential in a great number of sectors. Creating the conditions for successful performance both at present and in future is also dependent on them.
In order to investigate the organizing approaches with the purpose of achieving sustainability, an international community of practitioners and academics has been created by CEO. A group of studies as well as conferences are being made use of in order to bring scholars with pioneering organizations together. A group of publications which are designed to provide practice and theoretical knowledge with regards to sustainable approaches to foster a viable future, are the result of this reciprocal learning and knowledge exchange.
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