The Malaysia Airlines Case Study

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Westminster International College

PERFORMANCE MANAGEMENT ISSUES IN MALAYSIA AIRLINES BERHAD (MAB)

By

    1. MOHAMMED RAEEZ PUNNOORKODE RASHEED          ID NO: 0082ASHASH0615

     2. ARSALAN NAWAZ

     3. BASSEM MOHSEN IBRAHIM MOHAMED                         ID NO: 0081MWYMWY0616

     4. MUHAMMED NIZAR N                                                           ID NO: 0232VMNVMN0216

     5.  MUHAMMED ASHARUDHEEN                                           ID NO: 0123ASHASH0616

     6. MOHAMMED BASIL A.H                                                       ID NO: 0004VMNVMN0616

Submitted to:

Dr. LOGAMA DORAISAMY

MANAGING HUMAN CAPITAL

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Table of content

1. Executive summary…………………………………………………..4

2. Problem statement………………………………………………...….5

3. Analysis………………………………………………………………..5

4. Alternative actions…………………………………………………....8

5. Recommendations…………………………………………………….11

6. Implementation plan…………………………………………………13

7. References…………………………………………………………….14

1.0 Executive Summary

Malaysian Airlines is an airline company who has faced a lot of problems in the past due to its poor management system. It faced its first loss in 1997 but prior to it, the company gained profit. This loss was prior to Asian financial crisis. The company’s first loss was then recovered after 5 years. The second period of loss came in 2005 which was recovered a year later in 2006 and as well as in 2007. History also told us that some employees of the company deliberately left the company for other airlines. The third period of loss came in 2011 and continued till 2014 quarter which was the largest quarterly loss of the company. The Chief Executive of the company resigned from his services in 2016 and stated that the company had serious management issues.

Certain alternatives as per our group’s views would be used to resolve the problems Malaysian Airlines was facing. We pointed out the most solid one’s of them. One was to adapt to performance management and to do your best in retaining your employees and motivating them. The other was to adapt to soft HRM in company. Both of the alternatives are costly but for sure in our view they will bring a solid change in companies nearby future. The company is expected to be in breakeven point by 2018 but if the most suitable alternative that is the alternative no 1 is taken then that could help company remain in profit till 2018.