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-n, travel insurance and holiday packages

Explanation / Answer

Q1. Leadership style of Tony

Tony’s leadership style can be easily classified as “Charismatic Leadership”. A charismatic leader is someone who is capable of transforming its follower’s attitude and underlying belief as per leader’s revolutionary thinking.

Ability to Influence

Tony Fernandes revolutionary thinking was unique. When he first proposed the idea of low cost airline which could enable everyone to fly he had to face quite a lot of criticism as the idea was against the norms of industry. However, unperturbed Tony implemented the idea and with his sheer hard work and perseverance and ensured that it was a success. He could influence his team who were then motivated to work as his team and started believing in his idea.

Flat hierarchy and empowered workforce

Tony believed in flat hierarchy. He believed in empowering his people and preferred a work environment of openness and fearlessness. This model of organization is not common is Asia but still he adopted this kind of model for Air Asia. Enabling flat hierarchy ensured more trust and openness from his subordinate and employees.

Q2 Explain how a flat hierarchy, decentralized decision-making and empowered employees make AirAsia successful.

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