Question 4 Read the case study given below and answer all the questions Leading

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Question 4 Read the case study given below and answer all the questions Leading the Skies - AirAsia Tony Fernandes, the head of Air Asia believes that you can achieve anything through hard work and perseverance. Tony took the challenge to reduce flight costs and unnecessary expenses to promote low-cost flights that can be affordable to everyone with the tagline, "Now Everyone Can Fly Many felt that AirAsia would collapse with this low-cost model but they were proven wrong because Tony is able to shift his thoughts quickly to exploit market opportunities react to challenges and not give up easily. Tony sacrifices everything to run the airline committed to his work and a strong belief in his projects, although the airline industry faces tough challenges. As a result, AirAsia manages to be the world's best low-cost airline company At AirAsia, Tony is admired by his employees. His easygoing manner is translated into a management style that focuses on outcomes. Everyone is treated equally, the hierarchy is flat, decision-making is de-centralised and the employees are empowered. From Tony's management approach, AirAsia was able to introduce innovative concepts such as online booking and check-in, travel insurance and holiday packages Underlying his leadership style is the concept of employees come first and customers come second. If you have a happy workforce, they will look after your customers. Tony believes that his style of leadership is the best way to make a company flexible and profitable in order to survive in a dynamic environment. (Source: Adapted from Robbins S. P, Coulter M (2014), Management (12h edition). Pearson International Edition, New Jersey. Page 585) (a) Explain Tony Fernandes's leadership style (10 marks) (b) Explain how a flat hierarchy, decentralised decision-making and empowered (15 marks) employees make AirAsia successful

Explanation / Answer

A.

Toni Fernandez -Leadership style

Toni Fernandez wants flexibility in a dynamic environment. He has a strong vision and belief in his projects. He is easy going and He is admired by his employees. He believes in employee empowerment and flat structure. He believes in innovation and his value is, ‘Employees come first’.

Path-goal theory

As per path-goal theory, he exhibits for styles:

Supportive-

Here the leader shows deep concern for employees, friendlier towards them and is easily approachable. Fernandez is easy going. His value,’ Employees come first,’ seems to show that he is supportive of his style

Achievement-

Here the leader sets challenging goals and is confident about employee’s abilities. Fernandez believes in employee empowerment and flat structure, thus exhibiting an achievement-oriented style also

Delegative style

Here the leader lets the employees make the decisions. Fernandez follows a similar decentralized decision-making structure in his organization and is outcome oriented

Transformational leadership

Here leader has a good vision, influence employees and motivates them to act with their full potential for the good of the organization

Such leaders

Tony is easy going, formally believes in his vision and encourages innovation in employees along with their empowerment. He acts like a transformational leader.

B

The airline industry is highly dynamic and faces tough challenges. Fernandez needs employees to be innovative and flexible in their actions to survive such environment. Decentralisation and flat structuree aid the mission in several ways follows:

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