Malaysian International

Report on Malaysian International By: ABC Date Table of contents TOC \o "1-3" \h \z \u Executive summary PAGEREF _Toc416351726 \h 3Introduction PAGEREF _Toc416351727 \h 4Local Vs international staffing PAGEREF _Toc416351728 \h 5Job descriptions of operations manager PAGEREF _Toc416351729 \h 6PESTLE analysis of India PAGEREF _Toc416351730 \h 7Political factors PAGEREF _Toc416351731 \h 8Economical factors PAGEREF _Toc416351732 \h 9Socio-Cultural factors PAGEREF _Toc416351733 \h 9Technological factors PAGEREF _Toc416351734 \h 10Legal factors PAGEREF _Toc416351735 \h 10Environmental factors PAGEREF _Toc416351736 \h 10Advantages and disadvantages of using Local Indian Manager PAGEREF _Toc416351737 \h 11Advantages and disadvantages of using Malaysian Expatriate PAGEREF _Toc416351738 \h 11Recommendations PAGEREF _Toc416351739 \h 12Conclusion PAGEREF _Toc416351740 \h 12References PAGEREF _Toc416351741 \h 12 Executive summaryIn this report, I analyzed Malaysian Airline on basis of Local Indian national or Malaysian expatriate for catering business in India. Question was to analyze benefits and disadvantages of using Malaysian operations manager or Indian national. I compared advantages of using global staffing with local staffing. Advantages of local Indian were better knowledge of culture and policies as well as regulation of country. Advantages of Malaysian expatriate were win-win situation in case of success. PESTLE analysis of Indian economy is also given in report. In the end, I concluded that hiring Indian operations manager for in-flight catering business in India would be less risky and cost saving and chances for failure in this of this approach would reduce. IntroductionMalaysia airline was established by imperial airways and liver pool company of ocean steamship. Malayan airway limited was established in October 1937. In 1963 after formation of Malaysia back this Malayan airways name was replaced with Malaysian Airlines limited. It became national carrier of Malaysia. Industry’s aviation platform had changed after Separation of Malaysia and Singapore in 1965. After separation, it further renamed as Malaysia- Singapore Airlines. In 1973, this name had also changed with Malaysia. Its primary hub is located in Kuala Lumpur. 50,000, passengers travel daily on this airline and it covered more than 95 destinations in one day. It is serving six continents. This was ranked on second number among 88 Aviation companies as per performance. It provides services on timely basis to customers as per their requirement. It is providing customers with experience of excellent flying. It grown continuously and became as one of leading multinational company in all over world. Its growth can be analyzed from fact that it was only established as small private company. It is now listed on Bursa Malaysia stock exchange. It acquired many subsidies like MAC aerospace engineering, MASkargo, MASwing and many others. CITATION uke15 \l 1033 (uk mission is to provide travelling and transportation services with comfort, safety and punctuality. Company aimed at providing best care services to increase value of shareholders. Company is aiming at providing innovative business solutions. It provides opportunity of growth to employees keeping in view, regulatory compliances and ethical standards. In this report, I analyzed international staffing of Malaysian Airlines. I analyzed job descriptions of operations manager and analyzed weather it will be beneficial for company to hire Indian operational manger or Malaysian expatriate. I also analyzed situation of India’s economy and provided recommendation on basis of advantages and disadvantages. Local Vs international staffingIn today globalization era, multinational organizations should understand the need of local policies as well as international staffing or policies. Company can operate in more consistent manner by identifying need of international and local human resource management. Companies should be more considerable on choosing right employee that could manage assignment for short and long period. Multinational companies should consider policies of other countries as well. Polycentric, geocentric and ethnocentric policies should be considered. Companies should also understand culture differences, taxation policies and personnel trainings. For global staffing, it is necessary to understand strategies of global staffing with international firm’s strategies. These should be linked in order to understand relationship. Local and international HRM are different on basis of operational complexities and categories of national workers. Local staffing involves employees only from one national boundary. International staffing involves three categories, parent country, host country and Third County. CITATION Scu06 \l 1033 (Scullion & Collings, 2006)After 1990, global staffing increased due to increase in global competition. International employees have three types, first are expatriates, second are employees of host country and third can be employees of third country. CITATION wha15 \l 1033 ( It necessary to manage effectively global staffing for gaining advantage from competitive advantage and cost saving. Airline companies can successful in catering business by carefully managing quality of services and time of delivering. For Malaysian Airlines it is challenging to careful manage catering business in India. It has two options to avail. First is to use choose Malaysian expatriate and second is to hire operations manager from India. Catering business for flights required skills and it is sensitive than other catering businesses. Malaysian Airline should choose best manager for developing business in India. Efficient and innovative manager should be hired by company to manage catering business. Issues related with time, quality, culture and environment should be carefully analyzed. Companies should consider all necessary steps to evaluate weather expatriate or local employees would be hired for better growth and advantage. Job descriptions of operations managerOperations manager plays an important role in Airlines industry because food is sensitive factor for customer’s satisfaction. Operations manager should carefully plan, organize, lead and control food services in flight catering. It is important duty of manager to identify differences in choices and preferences of different routing customers. Customer’s choices for food differ on basis of type of aircraft and configuration of gallery. It is challenging situation for manager to carefully plan and prepare food as per expectations of customers. Differentiate foods on basis of customer’s preferences of Halal and Non Halal food is important challenge for operation manager to consider. Customers have different cultures and eating habits. Quality and quantity of food should be managed carefully. Food should be serves on Hygienic standards. There should various skills required by operations manager for catering. He should be good communicator. He should manage rime and quality of food. He should have knowledge of food preparation and Hygienic standards. CITATION tar15 \l 1033 ( He should managed information between catering company and Airline Company. Key responsibilities of operations manager include management of entire team. He should manage supervisors, employees associated with production and team leader. He should ensure safety of work place. He should manage cost and quality of services by managing cost and research and development strategies. He should provide training and develop their skills. He should develop customer’s services skills in employees by proper training. He should use strategic approach for daily matter. Preparation of financial reports is another responsibility. This report should be delivered to company’s head quarter. Time management skills should be necessary for catering manager to timely uplifting of catering and other services. For this purpose, he has to develop connection with equipment, administration and airside logistics. He should purchase material having good quality. He should maintain good relationship with customers by providing quality standard food. He is responsible for dealing with transport and production manager for maintenance of stocks e.g. stores, equipment and beverages items. He should maintain degree of standard in unit of operations in catering. CITATION qat15 \l 1033 ( Malaysian Airline operations manager, it is necessary that above-mentioned skills should present in him to carefully managing operations and for leading company towards progress. PESTLE analysis of IndiaInternal as well as external factors affect progress of multinational company. External factors include competitors, political, economical and legal. CITATION Kok15 \l 1033 (Kokemuller) Business is affected by internal as well as external factors associated with operations of business. As per Malaysian Airline in order to operate as catering business in India, operations manager should evaluate external factors favorable for business as well as threats of environment. Malaysian external environment differs from India’s external environment, it is necessary to understand differences in environmental factors. PESTAL analysis is necessary to understand for every organization, but for MNC’s it is more important and challenging to analyze different environments. Components of PESTLE are political, economical, social, technological, legal and environmental. CITATION bri15 \l 1033 ( Economy of India is different from Malaysia in term of culture as well as economic results. GDP of India is higher than Malaysia. Malaysia has higher GDP per capita than India. Unemployment rate is higher in India as compared to Malaysia. In India, inflation is higher than Malaysia. Malaysia has stable exchange rate but India has fluctuating. India is lagging behind Malaysia on basis of balance of current account. CITATION cou15 \l 1033 ( factorsPolitical factors contribute towards organizational performance. In India, political factors greatly affect multinational organization’s performance. Companies should analyze this factor to penetrate in market and to escape from future consequences. Recent policies of liberalizations has encouraged foreign investment opportunities in India. India reduced charges on foreign investment and import duty to facilitate foreign investors. It is great opportunity for foreign investors to enter in market. Government regulations for foreign investments have been changed and relaxation is provided for investors. Risk factor is changing policies of government rapidly. This factor can result in disadvantage for MNCs. Taxation of India should be understood by operations manager to operate business. Operations manager should consider these facts by planning strategically. Contract law of India should be considered by both manager as either local Indian or Malaysian expatriate. Economical factorsEconomy of India is improving steadily. In 2014, it reduced account deficit encouraging flow of capital within country. Operations manager should consider exchange rates differences. He should also consider fiscal and monetary policies of country. Risk associated with this factor is high cost associated with exports. In certain regions of India, foreign direct investment is still not encouraged. Debt rate is high in India that can leads toward inflation. Corruption in India is common that must be considered. Another factor is increased external cost of foreign investments. Socio-Cultural factorsSociety of India is based upon cast system. India’s culture reflects large family system. People from different religions are settled in India. These include Christians, Muslims and Buddhist. In India, culture of favoritism is present along with individualism. On dimension of uncertainty avoidance India scored on 40th number. In India, recreation and leisure time is given low preferences by people. Collectivism dimension is also present in India that encouraged participation of people into development of country. On indulgence dimension India got low score. Technological factorsIndia is dealing with outsourcing information technology. These are used for technical assistance and development of software. This technology presence appreciates foreign investors to invest in India’s market. India is contracting with foreign investors for development of technological software and services. Malaysian operations manager can benefit from these technologies and can use these technologies for production and distribution. Technology can enhance operation of organization. Negative fact is that most people of India are not having internet access. One statistics shows that 10% population has this access. Legal factorsLegal factors include rules and regulations of government and country. Contact law should be considered by operation manger. Taxation policies and rates for different services should also be considered. Government regulations for reduction in import tariff can be helpful for doing business. Environmental factorsEnvironmental growth is increased in India after industrialization. Environmental issues are pollution, poor governance, noise and dust. Operation manger will face these difficulties during business operations. Production plant in India can face poor environmental conditions. Advantages and disadvantages of using Local Indian ManagerPolycentric model emphasized on managing foreign subsidies by host country. In this case, host country is India who will manage subsidiary of Malaysian Airline. There are several benefits of managing subsidiary by host country. He has enough knowledge of country’s environmental situations, culture, policies and rules and regulations as well. Because of their connection with locally located subsidiary, they can manage these subsidiaries easily. Communication efficiency will increase because language differences can result in lack of knowledge transfer. Staff promotion chances will increase and staff will feel more secure. There are advantages as well as disadvantages by using local Nationals. Difficulties include inability to mange corporate culture. Communication problem can be increased between manager and Malaysian Headquarter. Malaysian Airline will not get experience of Indian’s market. Learning culture of global markets is important for MNCs, by hiring local national company will not avail opportunity of gaining this knowledge. CITATION Gri \l 1033 (Grimsley) Advantages and disadvantages of using Malaysian ExpatriateThere are several benefits of using expatriates as knowledge is increased providing company better chances to further expand business in other markets. This approach is called ethnocentric. CITATION Gri \l 1033 (Grimsley) Cost is reduced in case of successful implementation of Expatriate policies. Win-win situation can be achieved by Malaysian airline in case of success. But, in case of failure, high cost have to be beard by Airline. Confidence of employees will reduce. There will be fewer chances of conflicts between operation manager and MNCs in case of success. In case of failure, company’s brand name will be disturbed. CITATION Bjö06 \l 1033 (Björkman & Stahl, 2006)RecommendationsBy analyzing advantages and disadvantages of using both facilities, I recommend that Malaysian expatriate would be more risky for Malaysian airline to manage. No doubt, that high return is associated with high risk but company should not take more. Using Indian national would be cost saving for company this saving can be used on other operations and there will be no chances of failure in business. Indian operations manager will be handle this task easily. Market situation analysis would be easy for him as compared to Expatriate. ConclusionIn global era, using global staffing is necessary to expand globally and gaining competitive advantage. It is concluded from above discussions that Malaysian airline should consider both cost and benefits for taking this decision. In sensitive business of In-flight catering risk factor can result in failure of operation. As Indian operations manager can easily understand market conditions and culture, he will be able to do this task easily in fewer expenses and chances of failure will be decreased. References BIBLIOGRAPHY \l 1033 Björkman, I., & Stahl, G. K. (2006). International human resource management research: an introduction. (n.d.). Components of a PESTLE Analysis. Retrieved March 2015, from (n.d.). Malaysia Vs India. Retrieved March 2015, from Grimsley, S. (n.d.). Global Staffing Approaches: Ethnocentric, Regiocentric, Polycentric, and Geocentric. Retrieved from Kokemuller, N. (n.d.). What Are Internal & External Environmental Factors That Affect Business? Retrieved April 2015, from (n.d.). QR4637 - Operations Manager- Flight Catering. Retrieved January 2015, from Scullion, H., & Collings, D. G. (2006). In global staffing (pp. 1-211). (n.d.). Catering manager: job description. Retrieved April 2015, from uk (n.d.). History of Malaysia Airlines. Retrieved April 2015, from (n.d.). International Staffing. Retrieved April 2015, from

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