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Airasia Leadership Essay

3617 words - 15 pages

1.0 Introduction
AirAsia Group, a well-known low-cost airline around the Asia, which ownsby a parent company name “Tune Group”. This company was actually founded by “DRB-Hicom”, which is a company own by Malaysia’s government back in 20th December 1993 and started their operations on 18th November 1996. Unfortunately, the company’s performance not doing very well for few years until it was 2nd December 2001, the day that this airline taken over by Tony Fernandes, the CEO of Air Asia Group.
Since then, Tony Fernandes performance was astonishing, he brought the airline back to life, and they even start making profits since year 2002 and launched their airline hubs in that particular year ...view middle of the document...

2.0 Theories
Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members. ("Introduction to Leadership Values Worldwide: GLOBE Findings," n.d.)
The competency perspective of leadership tries to identify the characteristics of effective leaders. Recent writing suggests that leaders have specific personality characteristics, positive self-concept, drive, integrity, leadership motivation, knowledge of the business, cognitive and practical intelligence, and emotional intelligence. (McShane S. L. & Von Glinow, M. A., 2015)
Cognitive and practical intelligence refers to the leader’s above- average cognitive ability to process information (cognitive intelligence) and ability to solve real-world problems by adapting to, shaping, or selecting appropriate environments (practical intelligence). Knowledge of the business refers to the leader’s tactic and explicit knowledge about the company’s environment plays that enable a leader to make more intuitive decisions. Leadership motivation refers to the leader need to improve in socialized power to accomplish team or organizational goals. Drive refers to the leader’s inner motivation to pursue the organization’s goals.
Transformational theory is defined as transformational leaders create, communicate, and model a shared vision for the team or organization, and they inspire followers to strive for that vision. They develop and communicate the vision, communicate the vision with sincerity and passion, model the vision by ‘walking the talk’ and acting consistently, to builds employee trust, encourage experimentation to encourage employee discovering or trying out new practicesand build commitment toward the vision through rewards, recognition, celebrations. This contrasts with transactional leadership, which involves linking job performance to valued rewards and ensuring that employees have the resources needed to get the job done. The contingency and behavioural perspectives adopt the transactional view of leadership. ( Organizational Behavior, n.d.)

3.0 Company’s Practices
Leadership Competencies
On 24 March 2009, Tony Fernandes, the founder of Air Asia, mentioned that there is nothing more powerful than inspirational leadership that unleashes principled behaviour for a great cause.
In the cognitive and pratical intelligence, Tony Fernandes plays the role as an intelligent leader. He has the ability to analyse the business environment and make the right decision. On 8eptember 2001, Tony Fernandes and three other inventors paid 1 Ringgit Malaysia to buy AirAsia, which amounts to $40 million debts. He implements no-frills airlines, ‘zero’ fare strategy with a famous slogan ‘Now everyone can fly’ successfully transform Air Asia to become the Best Low Cost Airline in the world.
Tony Fernandes has the knowledge of the business and company environment to make the right decision. Tony Fernandes targets on all...

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