This is the brand and the organization that i interested and I want to intro the planning process and Decision Making in the corporation. It is one of the famous company in Malaysia.
Asia's leading air travel was proven with the imagine making flying possible for everyone. Since 2001, AirAsia has quickly shattered travel norms around the world and has risen to end up being the world's best. Which has a path network that spans through more than 20 countries, AirAsia is constantly on the pave the way for low-cost aviation through our impressive solutions, efficient functions and a passionate approach to business. Together with our associate companies, AirAsia X, Thai AirAsia and Indonesia AirAsia, They are place to take low-cost flying to an all new high with this consider, ''Now Everyone Can Take a flight''.
Planning is one of the most crucial task management and management techniques. Planning is setting up a sequence of action steps to accomplish some specific goal. In the event that you do it effectively, you can reduce much the necessary time and effort of achieving the goal. The top of planning consists of like defining firm goals, establish ways of achieve goals, and develop programs to assimilate & coordinate work activities.
A plan is similar to a map. When carrying out a plan, you can always see how much you have progressed towards your project goal and what lengths you are from your destination. Knowing where you are is essential to make good decisions on where to go or what to do next. The main to ensure that many people are clear of what to accomplish.
Planning is also crucial for meeting the needs you have during each action step with your own time, money, or other resources. With careful planning you often can see if sooner or later you are likely to face a difficulty. It is much easier to adjust your intend to avoid or smoothen a arriving crisis, rather than to cope with the crisis as it pertains unpredicted time. Example Air Asia plans to develop their businesses in Europe, so they consultation to the Government of France. They has been granted landing rights in Paris and is awaiting further details from government bodies.
The objective in Air Asia acquired four major point. The first point is usually to be the best company to work for whereby employees are cared for as part of a huge family. Then your second point is generate a globally regarded ASEAN brand. The 3rd point is to achieve the lowest cost so that everyone can travel with AirAsia and the last point is Keep up with the finest quality product, embracing technology to lessen cost and enhance service levels. They had achieved the goals however the second point they haven't achieved it because in this strong competitive age, way too many company like Malaysia Airlines and Tiger Airways also want to be the globally regarded ASEAN brand, nonetheless they will continue to work hard to attain their goals.
Type of plan
The first kind of plan is proper plans. It really is long term and connect with entire organization. In addition, it a broad plans. This sort of plan is manufactured by the most notable management for the whole firm such as CEO, COO, and other. This plan is usually done for 5 years and above Example, Air Asia' CEO planning want to take more route in 5 years.
The second kind of plan is tactical programs. It is a brief term goal and quite simply focus on the problems of learning resource allocation. This course of action is made by middle level management such as administrator. It done for a period of 1-5 years. Example, they want to buy more bigger aircraft in 4 years.
The third type of plan is functional plan. It really is encompass particular functional section of the group. It cover short time period. This plan developed by first line administrator such as supervisor. Example, their goal is an everyday capacity of 3 million.
The fourth type of plan is long term plan. It is plan as time passes frames increasing beyond three years. This plan usually use to making research or market research.
The fifth type of plan is short term plan. It is programs that are obviously defined and no room for interpretation. Example, they promotion and discount the ticket to let more people can travel.
Planning process
The the first step of planning process is defined objectives this means establish target and targets while taking into consideration such as quest, strategic ideas/goals, environment, and availability of resources. In Air Asia have established their objective like made their ticket price more cheaper and provide better service.
They step two of planning process is analyze and evaluate the environment. Once targets are established, director must review their current situation and environment (internal& external)to determine what resources can be found. Internal environment included such as raw material, machine/ equipments, fund, money, and other. Exterior environment included Infestations which is policies, economic, communal, technology and competition. Air Asia analyze and evaluate the environment after placed their aims like do survey.
The third step of planning process is identify alternatives which means list down as many alternatives as you can to attain the goals. Air Asia list many alternatives like hook up to other company, let their staff member learn more language and update their service.
The step four of planning process is measure the alternatives this means examine all alternatives to ascertain which combo of alternatives is the most effective and efficient to attain the goals. For every alternatives, manager will look at the advantages or disadvantages. Air Asia will attempt all alternatives and identify before see which is the better.
The step five of planning process is choose the best answer which is choose the best alternatives that gives most advantages and fewest disadvantages. Air Asia choose the best solution is update their service so that can let their customer convenient.
The step six of planning process is applying the plan this means decide who'll be involved determine, what resources need, how the plan be assessed and how reporting will be taken care of. If Air Asia want make their customer more comfortable, then your best away is buy the new and bigger aircraft.
The previous step is managing and evaluating the effect which means monitor to ensure plan is going according to expectations and make necessary adjustment, if needed. Graph. png
Factors of effective planning
There are some factors of Air Asia to make a highly effective likely to let them success.
The first is fatten the organizational hierarchy to foster development of planning skills in any way level of company. It could made the business more systematization. The other is practice MBO(management by target) -approach that emphasize collaboration objective setting by managers and subordinates this means if CEO and other department can effective work together and strengthen their worker then the company sure is a best company on earth. The 3rd is encourage employees at all levels to provide opinions and suggestions for planning which means the company see their employees are treated similarly. The four is develop plan that are specific but flexible which means although the company made the plan to achieve goal, if received some problem must change and discuss, don't rigid to follow the original plan. The five is must acquire facts and information that are current and reliable to be exact in planning which will be made the CEO accurate to made a good plan to their company. The very last is develop contingency plans and strategies. It is the very important effective away that can be immediately correspondence when the business got some emergency.
The issue of Air Asia
In 2008-2009, Air Asia received many problem that made their company damage. There some concern that are involved with the company whereby they are unable to achieve their goal. The first one is quest statement & aims of organization aren't clear and specific enough for planning this means the company not follow their step to achieve the goals, it'll affect all corporation progress, example Air Asia want demand the several fees if customer arranging already the solution but out of the blue want change. Although it is rational but some time some customer change their solution but no need impose the fees, so they not appropriate and not follow the mission. The other is some professionals are not experience in planning. It is because the programs always make a decision by the to management, not by middle management, so if all of the sudden want manager to decide plan will made some oversight. Some professionals have negatives thinking about planning as they think planning is costly, frustrating & waste material of time. Air Asia sometime will feel that plans use many costly if the program no success will wasting time, so in 2008 their company did not get mush income. After the end of 2009, Air Asia made a new decision that is change a director and CEO. The other away is defined a new target and effective to follow the goal that is the first important thing. Example they need reception customer about 100million per day.
Decision Making
Decision making can be thought to be the mental functions resulting in the selection of a course of action among several alternatives. Every decision making process produces a final choice. The result can be an action or an opinion of choice. It could making a choice from several alternatives. Identify problems or opportunities, expanding alternatives, choosing an alternative and employing it. Decision making is performed by all degree of management within an organization.
Type of Decision
The first kind of decision is organizational decision which means made by professionals within their specialist relative to organizational such as goals, guidelines, strategies, and strategies. Example, Air Asia wan to be a globally recognized ASEAN brand.
The second kind of decision is personal decision which means made based on manager's personal choice and desire. Example, mid-air Asia 's administrator made two plan like update the service first or training the staff member first, then CEO choose the main one he like.
The third kind of decision is strategies decision which means deals with permanent plans which is very important to growth and survival of group. Example, Air Asia need to plan a long-term intend to achieve goals in this period of monetary instability.
The four type of decision is tactical decision this means deals with workout and functional activities. Example manger need to deals the operational activities such as system inability, the environment, and other.
The five type of decision is programmed decision which means repetitive decision that can be handled by daily habit way. It using when the problem being resolved straightforward, involve goals that are clear, and information about problem is available and complete. Example Air Asia use within policy, process, and rule.
The last type of decision is un-programmed decision which means unique and non-recurring or generate unique responses. It use when the condition are new and uncommon and when the info is incomplete.
Decision Making Process
Decision making process is very important to any company
The the first step of decision making process is identifying the problem. It is obstacle that men attaining a desired goal or goal difficult. In addition, it must be know that problem the business facing and characteristics of the situation. Example Air Asia want lower fares or not.
The step two of decision making process is figuring out decision criteria this means factors that are essential to resolving the trouble. Example price, distance, customer, location, and time.
The step three of decision making process is allocating weights to the criteria. Assigning a weight to each item places the things in the correct priority order of the importance in your choice making process. Example customer is the first, then is distance, price, time, and the previous is location.
The step four of decision making process is growing alternatives. Alternatives are stated without analysis that can deal with the condition. Manager look for as much 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. Analyze and examine each alternatives and find out their advantages or negatives. Example identify advantages or cons of lower fares.
The step six of decision making process is selecting an alternatives. Pick the best alternatives and with the highest total weight and with advantages & fewest disadvantages. Example lower fares can make more customer come to buy, location no much than 700km, time about 2-3 time.
The step seven of decision making process is utilizing the decision. Adding the chosen alternatives into action. Example Air Asia choose is leaner the fares.
The step eight of decision making process is evaluating decision effectiveness this means screen or provide feedback about how well your choice has been carried out or will there be any adjustment and corrective action need. Example Air Asia lower fares because can made more customer buy and increase earnings.
Creating Environment for Effective Decision Making
The to begin effective decision making is provide time for decision to be produced which means manager should not dash and be forced to make a decision, especially essential. Negotiate additional time and make good quality decision. Example when Air Asia aircraft got some disaster problem, then manger should made a specific decision to resolve the issue.
The second of effective decision making is have self confidence which means professionals must have self-confidence and courage in particular when making dangerous. Example manager must have self confidence when decide a high risk plan.
The third of effective decision making is encourage others to make decision this means professionals should trust subordinates and invite them to make decision. This are certain to get their commitment when they are participating. Example manager must trust their staff member 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 did the trick and decision that did not & utilize them as helpful information. Example Air Asia need to start to see the decision first then decide want training their employee or not.
Making Decision to be Ineffective decision
The first point of earning decision to be ineffective decision is time pressure which means not enough a chance to decision then will made fault.
The second point of earning decision to be inadequate decision is limited amount of available information or incomplete information. Sometime some supervisor cant not get incomplete information so he'll made wrong decision.
The third point of earning decision to be ineffective decision is higher levels of uncertainty in the current business environment.
Conclusion
After I research this company, I find out about planning and making decision. For me, any business must be planning and decision making because if any business loss anybody, will made the company not path, no achieve goals, and other. As well as the previous is must made customer happy because customer is always right.
C:\Users\Michael\Desktop\newINTIuc logo design. jpg
Name
Lim Kok Hui
Student ID
I10005487
Program
DBAD
Course Code
MGT1101
Section
5SS1
Lecturer's Name
Hardjinder Kaur A/P Balbir Singh
Submission Date
14/6/2010
Aims: To greatly help course participants consider the fundamental areas within management.
Select a business with that you are either interested or familiar with and
write a 2, 000 word essay on any 2 regions of the organization within the following
areas: Planning and Decision Making Process
