AirAsia Planning and Decision Making

strainingAsia Planning and closing makeThis is the logo and the organization which I interested and I deprivation to institution the curriculumning do work and finding do in this fraternity. It is ace of the illustrious company in Malaysia.Asias leading airline was established with the dream of making flying possible for everyone. Since 2001, diffuseAsia has swiftly broken travel norms around the world and has risen to become the worlds surpass. With a route network that spans through much than 20 countries, cableAsia continues to pave the way for low-cost aviation through our advance(a) solutions, efficient movees and a passionate approach to business. Together with our associate companies, variantAsia X, siamese spliceion AirAsia and Indonesia AirAsia, They ar tag to pose low-cost flying to an wholly unfermented high with our believe, Now Everyone Can Fly.Planning is one of the most measurable project focussing and management techniques. Planning is prep aring a sequence of secure graduations to achieve round specific aspiration. If you do it effectively, you move debase much the necessary metre and effort of achieving the aim. The distinguished of schemening involves wish defining organization goals, establish strategies to achieve goals,and develop pictures to integrate line up work activities.A throw is like a map. When adjacent a plan, you flush toilet always gibe how much you wee progressed towards your project goal and how far you ar from your destination. Knowing where you ar is essential for making sound finales on where to go or what to do next. The most important to hear that everyone is get of what to accomplish.Planning is also crucial for meeting your needs during from each one action gradation with your term, money, or other resources. With c beful training you often periods can see if at nearly mind you are liable(predicate) to face a paradox. It is much easier to adjust your plan t o avoid or smoo so a coming crisis, rather than to deal with the crisis when it comes unexpected time. ca usance Air Asia plans to expand their op bourntions in Europe, so they consultation to the governing body of French . They has been granted landing rights in Paris and is awaiting further expatiate from authorities.The mission in Air Asia got four-spot major point. The startle point is to be the best company to work for whereby employees are treated as part of a big family. Then the second point is frame a glob everyy recognized ASEAN brand. The ternion point is to attain the low cost so that everyone can fly with AirAsia and the conk point is exercise the highest quality product, embracing technology to reduce cost and enhance value levels. They had achieved the goals just now the second point they breaknt achieved it because in this strong competitive era , too many company like Malaysia Airlines and tiger Airways also postulate to be the globally recognized ASE AN brand, but they get out work sticky to achieve their goals.Type of planThe archetypal eccentric person of plan is strategic plans. It is enormous term and apply to entire organization. It also a bountiful plans. This display case of plan is do by the top management for the total organization such(prenominal) as CEO, COO, and other. This plan is usually done for 5 years and above eccentric, Air Asia CEO plan want to take more route in 5 years.The second type of plan is tactical plans. It is a short term goal and basically concenter on the hassles of resource allocation. This plan is make by nub level management such as manager. It done for a period of 1-5 years. case, they want to debase more bigger airplane in 4 years.The third type of plan is ope reasoning(prenominal) plan. It is encompass particular operating(a) sphere of the organization. It cover short time period. This plan developed by first line manager such as supervisor. Example, their goal is a every day capacity of 3 million.The fourth type of plan is long term plan. It is plan with time frames ext completioning beyond 3 years. This plan usually use to making research or market research.The fifth type of plan is short term plan. It is plans that are clearly defined and no dwell for interpretation. Example, they promotion and discount the tag to let more people can fly.Planning plowThe metre one of planning offshoot is station objectives which inwardness establish objective and targets while taking into consideration such as mission, strategic plans/goals, environment, and availability of resources. In Air Asia have set their objective like do their ticket price more cheaper and win better service.They measuring stick two of planning process is analyze and tax the environment. Once objectives are established, manager must analyze their current website and environment (internal external)to determine what resources are available. Internal environment include such as ra w material, machine/ equipments , finance ,money ,and other. External environment included PEST which is policies, economic, social, technology and competitor. Air Asia analyze and gauge the environment afterward set their objectives like do survey.The step three of planning process is get hold of options which means list down as many alternatives as possible to reach the goals. Air Asia list many alternatives like connect to other company, let their player learn more language and arouse their facility.The step four of planning process is evaluate the alternatives which means evaluate all alternatives to determine which combination of alternatives is the most effective and efficient to achieve the goals. For each alternatives, manager result look at the advantages or disadvantages. Air Asia will try all alternatives and identify before see which is the best.The step five of planning process is discern the best solution which is select the best alternatives that gives most advantages and fewest disadvantages.Air Asia choose the best solution is climb their facility so that can let their node more comfortable.The step six of planning process is implementing the plan which means decide who will be involved determine, what resources need, how the plan be evaluated and how reporting will be handled. If Air Asia want make their customer more comfortable, then the best away is buy the new and bigger airplane.The ratiocination step is lordly and evaluating the result which means monitor to ensure plan is going harmonise to expectations and make necessary valuation account, if needed.Chart.pngFactors of effective planning in that respect are some factors of Air Asia to make an effective planning to let them success.The first is complete the organizational hierarchy to foster development of planning skills at all level of organization. It can made the company more agreementatization. The other is cause MBO(management by objective) -technique that em phasize collaboration objective setting by managers and subordinates which means if CEO and other department can effective work in concert and strengthen their worker then the company sure will be a best company in the world. The third is encourage employees at all levels to provide feedback and suggestions for planning that means the company see their employees are treated equally. The four is develop plan that are specific but flexible which means although the company made the plan to achieve goal ,if got some problem must change and discuss, dont rigid to follow the lord plan. The five is must acquire facts and data that are current and accredited to be perfect in planning that will be made the CEO accurate to made a good plan to their company. The last is develop contingency plans and strategies. It is the very important effective away that can be immediately correspondence when the company got some emergency.The problem of Air AsiaIn 2008-2009, Air Asia got many problem tha t made their company loss. There some issue that are involved for that company whereby they are unable to achieve their goal. The first one is mission statement objectives of organization are not clear and precise enough for planning which means the company not follow their step to achieve the goals , it will affect all organization progress, example Air Asia want charge the several fees if customer booking already the ticket but suddenly want change. Although it is rational but some time some customer change their ticket but no need charge the fees, so they not accurate and not follow the mission. The other is some managers are not experiences in planning. It is because the plans always decide by the to management , not by middle management, so if suddenly want manager to decide plan will made some mistake . Some managers have negatives thinking of planning as they think planning is pricey, time consuming waste of time. Air Asia sometime will think that plans will use many cos tly and if the plan no success will wasting time , so in 2008 their company did not get mush profit. subsequently the end of 2009, Air Asia made a different end that is change a manager and CEO . The other away is set a new objective and effective to follow the goal that is the first important thing. Example they want reception customer about 100million a day.Decision MakingDecision making can be regarded as the mental processes resulting in the selection of a course of action among several alternatives. Every ending making process produces a final excerpt. The output can be an action or an opinion of picking. It can making a choice from two or more alternatives. Identify problems or opportunities, developing alternatives , choosing an alternative and implementing it. Decision making also is performed by all level of management in an organization.Type of DecisionThe first type of end is organizational decision which means made by managers within their authority in accordance w ith organizational such as goals, policies, procedures, and strategies. Example ,Air Asia wan to be a globally recognized ASEAN brand.The second type of decision is own(prenominal) decision which means made based on managers personal choice and preference. Example ,the Air Asia s manager made two plan like upgrade the facility first or training the worker first, then CEO choose the one he like.The third type of decision is strategies decision which means deals with long term plans which is important for exploitation and survival of organization. Example , Air Asia need to plan a long term plan to achieve goals in this period of economic instability.The four type of decision is tactical decision which means deals with routine and operational activities. Example manger need to deals the operational activities such as system failure, the environment, and other .The five type of decision is programmed decision which means exigent decision that can be handled by routine approach. It u sing when the problem being re work upd straightforward, involve goals that are clear, and information about problem is available and complete. Example Air Asia use in policy, procedure, and rule.The last type of decision is un-programmed decision which means extraordinary and non-recurring or generate unique responses. It use when the problem are new and unusual and when the information is incomplete.Decision Making ProcessDecision making process is very important to any companyThe step one of decision making process is identifying the problem . It is obstacle that males achieving a desired goal or aim difficult. It also must be know that problem the organization face up and characteristics of the problem. Example Air Asia want lower fares or not .The step two of decision making process is identifying decision criteria which means factors that are important to resolving the problem. Example price, distance, customer, location ,and time.The step three of decision making process i s allocating weights to the criteria. Assigning a weight to each concomitant places the items in the correct priority order of their importance in the decision making process. Example customer is the first, then is distance , price, time, and the last is location.The step four of decision making process is developing alternatives. Alternatives are listed without rating that can resolve the problem. Manager look for as many alternatives to solve the problem. Example list down their competitor such as Malaysia Airlines , Tiger Airway and other.The step five of decision making process is analyzing alternatives. lose it and evaluate each alternatives and find out their advantages or disadvantages. Example identify advantages or disadvantages of lower fares.The step six of decision making process is selecting an alternatives. Choose the best alternatives and with the highest total weight and with the most advantages fewest disadvantages. Example lower fares can make more customer com e to buy , location no far than 700km, time about 2-3 hours.The step vii of decision making process is implementing the decision. Putting the chosen alternatives into action. Example Air Asia choose is lower the fares.The step eight of decision making process is evaluating decision effectiveness which means monitor or provide feedback on how well the decision has been implemented or is there any adjustment and corrective action need. Example Air Asia lower fares because can made more customer buy and increase profit.Creating Environment for Effective Decision MakingThe first of effective decision making is provide time for decision to be made which means manager should not deal and be pushed to make a decision, especially crucial. Negotiate more time and make good quality decision. Example when Air Asia airplane got some emergency problem , then manger should made a clear decision to solve the problem.The second of effective decision making is have self faith which means managers must have self confidence and courage especially when making risky. Example manager must have self confidence when decide a high risk plan .The third of effective decision making is encourage others to make decision which means managers should trust subordinates and allow them to make decision. This will get their allegiance when they are involved. Example manager must trust their worker or employee when they made some decision.The fourth of effective decision making is learn from past decisions which means managers should look at decision that worked and decision that did not use them as a guide. Example Air Asia need to see the decision first then decide want training their worker or not.Making Decision to be Ineffective decisionThe first point of making decision to be ineffective decision is time pressure which means not enough time to decision then will made mistake .The second point of making decision to be ineffective decision is limited amount of available information or i ncomplete information. Sometime some manager cant not get incomplete information so he will made wrong decision.The third point of making decision to be ineffective decision is higher levels of uncertainty in todays business environment.ConclusionAfter I research this company ,I learn more about planning and making decision. In my opinion, any company must be planning and decision making because if any company loss any one , will made the company not direction, no achieve goals, and other. And the last is must made customer happy because customer is always right.CUsersMichaelDesktopnewINTIuc logo.jpg clearLim Kok HuiStudent IDI10005487ProgramDBADCourse CodeMGT1101Section5SS1Lecturers NameHardjinder Kaur A/P Balbir SinghSubmission Date14/6/2010Aims To jockstrap course participants consider the fundamental areas within management.Select an organization with which you are either interested or familiar with andwrite a 2,000 news show essay on any 2 areas of the organization within the followingareas Planning and Decision Making Process