moodledata moodledata1 temp turnitintooltwo 316449449. managing in complex environments strategies...

8/9/2019 Moodledata Moodledata1 Temp Turnitintooltwo 316449449. Managing in Complex Environments Strategies Insight

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Submitted by

Md Rubel Ahmed

1303986

Doctor of Business Administration (DBA)

School of Business

University of Wales: Trinity Saint David (London Campus)

Module: Managing in Complex Environments: Strategies, Insight and

Solutions

(SBPD 7006)

Date: 28/11/2014


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Abstract

Along with two recent incidents, the complex and dynamic environment bringing

changes in each and every dimensions of Malaysian Airlines business. Thats why,

Malaysian Airlines is facing tough challenges to survive followed by two major

incidents this year. Now it is becoming very crucial to redesign their business and

value creation model because they are losing money and already lost brand image

including market reputation as well. Under these circumstances the report aims to

develop agile or adaptive HR capabilities that can meet the external and internal

challenges. Also, the report needs to prepare a change programme on current

situation of Malaysian Airlines. So, it is very important for Malaysia Airlines to make

the organization agile or adaptive. It is so, because the agile or adaptive form of

organization enables Malaysia Airlines to meet the challenges derived from both

outside and inside of the organization by using the scarce but alternative useable

resources they have. This form of organization can also give it a source of

sustainable competitive advantage. Therefore, the report has been discussed high

commitment/best practice of HR for the agile or adaptive based on Pfeffer (1999).

Also, the found that blended approach would be suitable for competitive advantage

for the MAS HR. In addition, the report found behavioural approach would besuitable towards selective hiring and sophisticated selection based on core

competences test. Again, proper utilization of integrated report framework, the report

found how MAS agile HR can take more advantages and value add from the human,

social and intellectual capital. Based on MAS current situation, the report

recommended some steps towards HR such as create cultural learning environment,

reduce the hierarchy structure and destroy harmonisation, more focus on working

together to build up trust each other towards develop innovative solution for the

problems, prepare a frontline team by learning, developing and motivating to deliver

quality service and retain talent and promote them within the organization recognition

performance and reward. Al last, the report has produced a change programme

model towards three years plan.


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Table of contents Page

Abstract 02

1.1 Introduction 05

1.2 Current situation of Malaysian Airlines 06

1.3 Agile/adaptive HR what and why 08

1.4 Business agility perspective of HR 08

1.5 Common characteristics of agile or adaptive organization 08

1.6 Agile organization and HR role 09

1.7 Agile adoption and HR importance 10

1.8 Agile or adaptive HR for Malaysian AirlinesWhy? 10

1.9 Importance of agility 11

1.10 Agile work place 12

1.11 Benefits of agile or adaptive HR 13

2.1 Broad discussion 14-26

2.2 Importance of high commitment/best practice of HR and Ulrich and Brockbanks

updated model 14

2.3 High commitment/best practice of HR 15

2.4 Blended approach 15

2.5 Pfeffer high commitment/best practice HR components 16

2.5.1 Employment security and internal labour market 16

2.5.2 Selective hiring and sophisticated selection 18

2.5.3 Extensive training, learning and development 20

2.5.4 Employee involvement, information sharing and worker voice 21

2.5.5 Self-managed teams/team working 24


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2.5.6 High compensation contingent on performance 25

2.5.7 Reduction of status differentials/harmonisation 26

3.1 Key Recommendations 27

3.2 Change model for MAS 27

3.3 Conclusion 29

References 30-34

Appendices 35-45

Figure 1: Agile culture 10


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1.2 Current situation of Malaysian Airlines

At present, Malaysian Airlines is suffering more challenges such as debt burden,

poor brand recognition, exit from equity market, low turnover, lack of customers

reliance, extensive regulatory conditions to operations (Appendix 1).It is very crucial

that Malaysian Airlines most of the employee very much concerns about their job

security after the two incidents and 6000 staff cut announcement. It is consistent with

Maslows second step though employees are little bit concern about Maslows first

step because they have alternative option to survive their life either government help

or any other job facilities. Again, these two incidents are affecting their personal and

family life towards health care, safe neighbourhoods and shelter from internal

environment as well external. In addition, they have lost their confidence,

relationship, trust, social stability and intimacy as well. Therefore, there is no self-

actualization in this situation of Malaysian Airlines internal environment because they

have lost their interested related potential fulfilling (Appendix 7).However, Malaysian

Airlines has some of the positive site in this situation such as government funding,

improve infrastructure, broad geographic presence, one world coalition membership

reputation and established on line presence (Appendix 1).Further, the study would

like to say that organization structure is functional, hierarchical and bureaucraticincluding central control (Appendix 5).In terms of leadership style, Malaysian Airlines

is following transactional leadership and very much adapt with situational leadership

construct (Kamisan and King, 2013). Again, one of the studies (Appendix 8) has

been described human status in their complex environment and its very much

related with current Malaysian Airlines internal environment where employees are

concerned about their security such as job and safety needs. From that position,

employees are lost their self-development, advancement and personal growth. It

means employees are feeling frustration and organization getting regression

performance.

There are some external factors such as legal, environmental and social impacting

more intensely than others such as political and economic (Koon et al., 2014;

Hamzah and Govindasamy 2014). Malaysian Airlines has own aircraft preservation

subsidiary company. Therefore, it is their positive side and dont need to training and

retain existing staff for the maintenance (Harrison, 2014 and appendix 2). In that


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situation, Malaysian Airlines has a plan to reduce their fair and cut-off some

international routes as well. They want to reduce fairs because at this complex

moment most of the travellers are middle age and they dont worry about the quality

service but they care about prices (Harrison, 2014 and appendix 2).In addition, they

have planning to introduce advance and adopting new technologies towards

customers and employees for the better services. This plan will cover control over

domestic and international competitors. The organizational structure of Malaysia

airlines is bureaucratic (House et al., 2004), strong/large power distance (Hoecklin

1994) and low uncertainty avoidance (Hoecklin 1994). In addition, their external

market position and its effect to high and just surviving maintain relationship with

business partner (Appendix 3).If the study discusses on risk analysis, it is very clear

that risk is also high in every aspect and some aspect has medium probability but

impact high in current situation (Appendix 4). According to Appendix 5, the study

would like to say that culturally it is low cost organization but before the incidents the

brand symbol was high cost airline and now dispersed share rights. Basis on

Appendix 6, they are facing tough challenges and realized significance of

stakeholders and their activities as well. They believed in order to get success and to

overcome the current situation they need commitment with all the stakeholders to a

national compact. As a result MAS management are now listening stakeholders

opinions, taking suggestions very seriously and implementing accordingly. Different

stakeholders are helping MAS by developing and delivering and operational plan that

leads to a successful new Malaysian Airlines. Stakeholders will be helping improving

internal alignment through collaboration with unions and resetting work rules,

process, employment terms to industry standards and to get the best talent for MAS

they will upgrade top 500 leadership with global flying professionals. MAS

employees will be continuing to perform their tasks with the highest levels of

professionalism and service quality. Unions will be supporting them to participate in

the Employee Consultative Panel (ECP) to making sure their voice would be heard

on any major evaluations. Stakeholders will also develop and deliver the overall

permitting recovery plan, progress monitoring and contingent funding. They are

allowing MAS to operate only commercial business model and supporting MAS to

enactment of a standalone Act. Stakeholders will reset their contracts if necessary in

service levels in line with market norms and airlines (MAS) standards. Stakeholders


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are offering continuous support for complete redecoration to continue to fly MAS

(Khazanah Nasional, 2014).

1.3 Agile/adaptive HR what and why

The main HR role is oversee and accountability towards human capital investment.

In general, both terms such as assets and money are talking people for cultivate and

their talents. However, traditional HR professionals waits for any change which to be

compulsory on them. Therefore, agile HR is contributing not only the core people

process but also helping the organizational transformational and value added

process (Hinge, 2013). The agility enables HR to realize and understand the internal

clients need and design the process that contributes towards the internal solution

and value addition (Weiss, 2000).

1.4 Business agility perspective of HR

Generally, it means speed and flexibility. According to Sanders (2014) it is the

capability of organization to adjust rapidly with cost capably in response towards

changes in complex business environment either internally or externally. It is againfocusing on goods and services maintaining and adapting towards customer

demands, adjustment of changes environment and taking advantage of human

resources.

1.5 Common characteristics of agile or adaptive organization

There are some common characteristics for agile or adaptive organization:

Understand the whole structure

Adapt a catalyst approach of leadership

Organization should continuous learning from experiments

Promote open communication approach

Long-term business value governance and adaptation

Members seek mastery in their respective skills

Source: Ray et al., 2012, Glenda, 2012


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1.6 Agile organization and HR role

Agility will generate a latest role for HR function. Within the organization, HR

maintains an approach towards their own effort for the agile service. When

organization faces tough challenge on internal or external work environment, it is

essential workforce contribution for the future. On the basis of complex environment

and change introduced, it is characteristically better hold by resilient individuals.

Also, it is enhanced integrated with peoples those are used to stable change.

Therefore, it will bring peoples understanding of interaction, control and resilience.

People who grip change most efficiently recognize to facilitate change can be

terrifying, perhaps unlikeable and it constantly requires something diverse from

them. In spite of this, they carry on rising towards occasion and will do effective

performance on job responsibilities. It will make a core competency about handling

ambiguity (Ullah, 2012).

According to Brue et al. (2010) the organization workforce should have several

attributes as an agile worker:

Responsiveness to modifying customer needs

Responsiveness to modifying environment conditions

Speed of initial new skills along with competencies

Speed of innovative practice organization skills

Effectiveness of helping across efficient boundaries

Ease of touching between projects

Employee empowerment designed for self-governing decision making


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1.7 Agile adoption and HR importance

HRD can play the vital role in the process of agile on complex situation. It should be

strategic and innovative fir the organization agile adoption journey. On this journey,

HR needs to prepare and arrange for developing and sustaining agile culture within

the organization. Therefore, HR can follow the below figure which starts from hire the

new employees until the retention motivated employees through restructuring the

organization and practice organization performance. However, agile is impacting on

HR by the three major different ways such as personal changes, training and

development changes and rethinking career path (Appelo et al., 2013).

Figure 1: Agile culture

Source: Appelo et al., 2013

1.8 Agile or adaptive HR for Malaysian AirlinesWhy?

Along with two recent incidents, the complex and dynamic environment bringing

changes in each and every dimensions of business. So, it has become very crucial

for Malaysia Airlines to make the organization agile or adaptive. It is so, because the

agile or adaptive form of organization enables Malaysia Airlines to meet the

challenges derived from both outside and inside of the organization by using the

scarce but alternative useable resources they have (Purvis et al. 2014). This form of

organization can also give it a source of sustainable competitive advantage. AgileHR is not only working together with consumers but also focusing on the difficulties

Agileculture

Hire bestemployee

Restructuringthe

organization

Performanceof

management

Retentionmotivatedemployees


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within the organization to ahead of following core question Are these HR problem

solutions in the best attention towards the customers? This potential approach is

making the HR more active and serious towards customer problem solving including

satisfy the customer needs as well. In addition, this strategic HR approach will help

the organization towards support of value added and competitive business strategy.

However, agile HR strategy is not forcing to organizational direction change but

helping the good decision making process. Redefine relationship among other

clients might be creates a good environment for working together and try to establish

the best resolution. Most important factor, it is very much tough and challenging for

internal clients to accept it (Price, 2008). It is also true that some cases HR credibility

not well enough to cope with senior managers because many executives doesnt like

adapted to telling them what to do in business rather than only support the system. It

is the key challenge for agile HR. In addition, demanding better and unique process

outcome through traditional HR even by process improvement and process

reengineering is ineffective (Weiss, 2000). So, emphasis on process improvement

through this new system may lead the MA to explore alternative ways of delivering.

In the past many companies perceived HR as an administrative function rather than

as a profession having its own knowledge base and excellent process. In this case

the HR is allowed to use external resources in a more economical and efficient

manner that can work as a source of achieving strategic objective. Many companies

before changed their work process and sustained higher ratio of HR professional to

employees through distribution works or activities to other functions those have the

capability to perform. It can clearly define specific outcomes that are needed and

identify the process that need to be recreated to achieve those outcomes. In agile

the expected outcomes are clearly defined while results are measureable and

process improvements are evident.

1.9 Importance of agility

The importance of strategic agility is that its faces challenging and complex

situations such as globalisation, dynamic environment, increase innovation and

mergers and acquisitions (Weber & Tarba, 2014). The requirement of strategic agility

is that its creating new categories and new business models instead of reorga nising

old categories and products. Researchers advised to create strategic agileorganisation mainly transform the HR to compete with rising strategic disruptions and


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discontinuities which is included business transformation and renewal manage in a

new ways, dynamic capabilities development, create imitation abilities, maintain high

level organisational flexibility and ambidexterity, develop knowledge and learning

transfer skills, use adaptive organisation culture and more (Weber & Tarba, 2014).

Again, it includes a set of actions for organisations to take when situation change

rapidly and unpredictably. Those organisations are agile organisations who adapt

this disrupting environment successfully. In addition, it is required changes which are

different from other daily and routine kinds of changes. The strategic agility changes

results are specified such as continuous, organisations systematic variations by

products, services, processes and structures. The strength and differences are high

for these changes, thus those organisations are agile who demonstrate high

flexibility. Also, quickness is needed to feel the environmental changes and to

appropriately respond. As a result, strategic agility demands a big investment of

resources to keep the high level of flexibility and quickness necessary to be able to

respond to unexpected environmental opportunities and threats (Weber & Tarba,

2014).

1.10 Agile work place

On the basis of above Malaysian Airlines complex environment work place, the study

would like to discuss about agile work place. It is mainly focusing three areas such

as practices, facilities and technology (Hinge, 2013).

Practices: The implementation of agile workforce, it is very necessary to offer

all of or as much as possible employees towards practices of flexible work

experience. It is meaning that employee performance will be measured by

innovative output not on the basis of contract hours or where or which

environment employee works for organization. For example: Unilever already

has given this flexibility to their all employees. Practice on this flexibility, it will

bring huge change and build up trust between managers and employees to

work need to be done in the fruitful way.

Facilities: As like as home, human is dividing their living place into different

rooms for different functions such as kitchen, bedroom, lounge and so on.


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Therefore, the agile workplace facility should same as living place because

employee needs to work independently within their areas and can connect

and collaborate with other employees. Provided by this facility, Unilever

approximately is using 40% less space from the previous. From that facility,

all employees (non-exempt to executive) thinks that they are working for

Unilever.

Technology: Latest technological invest is one of core part for agile

workplace. For example: virtual collaboration technologies like telepresence

meeting must be reduced the global travel cost for organization employees.

Highly developed mobility technologies facility must be help employees

working from other locations.

1.11 Benefits of agile or adaptive HR

There are some benefits of agile or adaptive and there are as follows: there are

many reasons to use agile/adaptive development such as:

Better ROI: Agile always highlights early delivery period of tasks. It is alsoallowing and producing the return on investment (ROI) very quickly. It is

contributing the business on the basis of agreement with discipline way.

Therefore, the business is getting high-valued return with quality.

Squeeze business: Agile is always accepting changes of business conditions

but traditionally changes quite impossible to adapt with business.

Agile development raises productivity

Creating a continuous development of environment

Enabling developing innovation

Building trust along with relationships

Engaging employee with motivation

Addressing the actual facts of problem and need of changes for the business

It keeps attention stakeholders on the change process

It is providing lower risk, density and more intelligibility, visibility towards the

business

Source: Moran, 2010


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Higher HR reliability

Source: Truss et al. 2012:72 and Swift, 2012: Ch 1.

2.3 High commitment/best practice of HR:According to Beer (2009), it is thecombination of three terms outcomes such as performance alignment, psychological

alignment and capacity of learning and change. To achieve and contribute the

organizational performance, it is the set of HR practices. It is very much related with

following term such as managing staffs attitudes and behaviours, improve quality

and customer service, raises the labour turnover and finally reduce absence.

2.4 Blended approach: It is the combination of universal and contingency

approach. Universal approach links with resource based view. It should follow the

every organization (Pfeffer, 1998). Basically, it is encouraging promoting people

(Pfeffer, 1998). It deals with decision-making, human performance and systems

analysis.Moreover, it is using for analysis of fast developing area and understanding

of practice organization (Rees and Hall, 2013: Ch 6). On the other hand, contingency

approach links with knowledge based view. It is dealing only adaptive strategies and

it is suitable for complex situation i.e. it is the adaptive view of HR. It is interrelated

and interconnected with innovation and development. However, it varies from

situation to situation. It actions on employee behaviour outside environment (Rees

and Hall, 2013: Ch 6). In addition, MAS is based on resourced based view (Pfeffer,

1998). But, current complex situation is referring that MAS HR should follow

knowledge based view (Spender, 1996).

Now the question what will be HR approach for that situation? From the above

discussion, the study would like suggest that blended approach (universal +contingency) will appropriate for the MAS HR. Because, none of the approach is not

suit with the MAS current complex situation and both approach has some positive

side and these sides are interrelated and interconnected with RBV and KBV.

Therefore, MAS HR should take the good elements from the both side then

combined it for the implementation. It will bring the competitive advantage for the

MAS HR.
http://en.wikipedia.org/wiki/Systems_analysishttp://en.wikipedia.org/wiki/Systems_analysishttp://en.wikipedia.org/wiki/Systems_analysishttp://en.wikipedia.org/wiki/Systems_analysishttp://en.wikipedia.org/wiki/Systems_analysis


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2.5 Pfeffer high commitment/best practice HR components:

Employment security and internal labour market

Selective hiring and sophisticated selection

Extensive training, learning and development

Employee involvement, information sharing and worker voice

Self-managed teams/team working

High compensation contingent on performance

Reduction of status differentials/harmonisation

2.5.1 Employment security and internal labour market: The main point in

this section is that it will be unrealistic to offer employee share their ideas,

commitment and hard work for the organization without any liability i.e. employment

security and future career concerns. Also, employment security is one of the

essential implementation for the high performance of organization best practices. It is

very crucial that Malaysian Airlines most of the employee very much concerns about

their job security after the two incidents and 6000 staff cut announcement. In

addition, it is also not possible to give them any financial or direct intensive from the

organization because organization already bankruptcy and taking fund from the

government for improve infrastructure. At that situation, HR could take the following

actions:

To arrange learning and skills development programme

To promote employee within the organization

To deep concentration on Maslows hierarchy of needs or Alderfer ERP

theory

To match employee future wishes with suitable opportunities

To negotiation with union

Overarching philosophy

Therefore, these actions will bring some positive outcomes like employee will be

more productive, belongingness and feel comfort to concentrate work. Again,

negotiation with union could bring outcome on employment obligation orcontractually layoff terms against employee performance. It will be important strategy


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for the high competition within the employee. In addition, employee will feel more

secure within the organization and that feelings will increase human capital as well

(Ulrich and Brockbanks, 2005). On the other hand, it is the one kind of challenging

issue reason why it has implicit employment contract and legal procedures as well.

At this stage, MAS is complex phase and showing downward performance.

Therefore, it is important to transform HR. However, that situation existing employee

might not have enough power and motivation which was in the initial stage. Thats

why, it will be very crucial to aligned them into the transformation process. Without

development of HR, it is quite impossible to build up relationship with clients and

beyond control employee through create the support of value added. Again, support

the value add is not enough for MAS current stage because MAS needs higher level

of competitiveness and it will help MAS become imperative. Thats why, MAS HR

needs to link directly with business strategic competitive interest.

Finally, the study would like to suggest that MAS needs to continue employment

security towards their employee but on the basis of layoff agreement and can

prepare them on the basis of above actions. The following two examples are

supporting the author suggestion.

For example: When General Motors introduced Fremont automobile assembly plant,

they gave job security offer towards their employee and got free contribution of

experience including knowledge sharing and employee full support and efforts to

improve productivity. Also, GM kept their commitment with retain employee on the

basis of union negotiation towards job security and got quick and rapid response

from the employee in financial difficulty (Pfeffer and Veiga, 1999). Another relevant

example is Southwest Airlines. Southwest Airlines employee take care strategy was

long terms interest rather than substantially more returns in short-terms on the basis

of commitment more job security. It helped to keep our labour smaller number and

influenced employee towards more productive (Kelleher, 2007).

However, the perspective of Malaysian Airlines internal labour market requires

further analysis to future course of action.


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2.5.2 Selective hiring and sophisticated selection: There are three main

ideas are playing in this section. Three ideas are as follows:

The HR wants to have large candidate group for best select

The HR wants to know and need to be clear from candidates critical skills and

attributes

The HR wants to know candidate skills and abilities relevant with particular job

requirements and organization approach to its market

Therefore, these three ideas could bring some outcomes on the basis of the actions

such as:

High quality recruitment brings committed staff for the best practice of HRM

Psychometric tests and structured interviews will increase the selection

decision validity

Competencies will bring trainability, flexibility, assurance, drive along with

determination and initiatives

However, the perspective of Malaysian Airlines, it is necessary that selective hiring

and sophisticated selection should be based on behavioural approach.The purpose

of core competency is involving all employees within complex situation of the firm fora specific goal achievement on the basis of design, development, services and

delivery (Griffiths, 2014:20). The elements of core competences are as follows which

directly related with different skills: critical thinking, problem solving, communication,

leadership, integration, collaboration, knowledge sharing, synthesizing intelligence

and entrepreneurship (Griffiths, 2014:20). On the basis of current MAS complex

situation, it is necessary that HR should practice of core competences approach for

the best fit. Because, some of the employee has different qualities and skills who

might be critical thinker, has good leadership style skills and approach of good

communication skills. For example: senior employee has experience skill and this

skill can share within the organization to other employees. Young and graduate

employee has theoretical knowledge, critical thinking power and problem solving skill

through team work and can lead the team as well. Therefore, MAS HR needs to find

out these types employee those have above qualities and skills and can provide

training towards the overcome the complex situation. Finally, it will increase

employee engagement and create organization value as well. Because it will bring


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some benefits for organization on candidates following skills such as integrity,

leadership, initiative, communication, problem solving, interpersonal, adaptability,

self-belief and self-confidence (Dubrin, 2012:22-25,321-325). In addition, it will

increase high competence of candidate selection process (Griffiths, 2014:17-29 and

CPLD, 2012:5-11). The study also would like say that HR team needs to recruit/hire

expertise from the outside in this complex situation. The expertise will help following

way to the HR team:

To help develop a plan and try to sustain this plan according to HR

requirements and implementations as well based on experience, skills and

knowledge

To help and focus on HR change process (if organization does) and impact on

budgets including technological functions

To make a plan on HR inbound or outbound strategies towards better

performance

Source:Weiss, 2000

Usually, recruitment from the outside is meaning that organization needs

transformation process on internal cultural and environment which directly link with

different factors such as employee job insecurity and de-motivated as well. At that

stage, MAS is suffering and hanging as well. So, change is necessary. However,

some of the employees are very successful from the start up and growth stage,

these employees may not be willing to follow the new way of doing job from the

expertise (Price, 2008). But on the basis of MAS current situation, it is very expected

from the leaders/HR to recreate the environment with a new direction for the HR that

creates a sense. In addition, organization complex is saying that someone who is

well known/experience in complex situation needs to handle and talk about this

situation to recover it. This may indicate releasing employees who do not have the

skills, competencies to effect the change and bringing in new who turn the system

around. This may mean to hiring experts or specialists such as HR leadership who

can leverage HR for competitive advantage.

In terms of strategic values, it is the extent to which organisational process and

people provide competitive advantage. Traditional HR activities such as recruitment-


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selection, employee relation, compensation, training and development are necessary

but not sufficient to help the companies to thrive and outperform in the new turbulent

changing environment. The agility will help MA to redefine its HR role so that it can

help to concentrate on providing strategic value through gaining relative advantage

against competition (Kearns, 2010).

Therefore, this process will increase competitive advantages towards the human

capital and develop the functional expert as well.

2.5.3 Extensive training, learning and development: It is true that training is

helping employees to strengthen their performance. Employee performance is

source of competitive advantage for organization towards their competitor. But in

competitive world, technology is changing so it is very crucial that sustain the

employee performance. Another way, training is one kind of investment for the

organization. So, it is necessary to ensure benefits of training against its costs.

Sometimes learning style conflict to change may come not for the new or additional

roles but for the chosen way of learning or style of influencing people (Weiss, 2000).

So therefore it is HR responsibility to find the path of least resistance to influence not

only line managers but also people to change their role so that they took the primary

responsibility to attending company needs. On the basis of training, learning and

performance, organization is offering employee for the promotion but whom skilled.

In practically, mainly three key reasons behind the promotion:

A job need to be filled, find a person who is fit and want to do the job

Hopping that new manager will leverage the company with new skill and

knowledge

Promotion open up an opportunity for the company to put more money and

benefits in the hand who deserve

But when the new manager joins the position start to handling more complex issues

and dilemmas instead of teaching other the knowledge and skills and proved himself

as an individual service provider. In this case the person misses the primary reason

of receiving promotion. In this situation the HR needs to help this person creating a

learning environment through which other employees can learns what he knows. So

therefore the role of HR will be proactive by accomplishing the function oftrainer/educator through the following:


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Creating an ongoing learning environment by which manager can develop

people practice organization skills

Excitement and sprit with a core focus on the external customer

Provide ongoing support and coaching so that they can work with employees

It is one of the key challenges for HR to learn how to help manager to be people

manager instead of stepping into the void by taking over their responsibility. Or help

them to do it instead of do it for them. As Nowlan (2011:40-49) suggests that the HR

should not be an extra pair of hands for managers but help them to manage their

employees effectively and efficiently.

Although there is a union in MAS indicating that the HR is not only place to raise any

concern if the employees are not satisfied. But to become the employee conscience

or champion of employee need the HR is expected to function as an employee

representative becoming advocate for their collective needs (Price, 2008). However

it is very often now a day to have time and capacity to handle but it is also should not

leave everything for manager to manage employees. It is HR responsibility to

provide necessary resources and skill, create learning cultural environment, training

and development to manage their employee because the only way of HR to reaching

employee is enabling managers to become excellent people managers (McCarthy,

2014). And that will increase competitive advantages of human capital value.

2.5.4 Employee involvement, information sharing and worker voice:

Employee involvement has so many reasons but three prime reasons mostly

accepted such as strategic participation, organizational participation and task

direction (HBR, 2013). To achieve the overall organizational success, employee

engagement very much important and it was opinion 71% respondent. To allow

recognition of high performers, employee engagement significant impact more than

the organization success and this is 72% (HBR, 2013). Here it is important how the

organization should involve employee with organization. Therefore, Rousseau (1989)

psychological contract is mostly accepted towards employee involvement. Rousseau

(2011) mentioned that there are three steps need to fulfilment for the psychological

contract such as mutuality, alignment and reciprocity. However, there are some key

features laying in psychological contracts such as beliefs and trust, implicit,

perceived agreement, exchange, ongoing and developing career.


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In current MAS complex situation, HR team can take following actions towards

employee involvement:

To communicate senior leader with strategies to employee (HBR, 2013)

Safe and friendly environment from the Rousseau belief and trust point of

view

Providing sufficient training from Rousseau exchange point of view

Providing job security from their best abilities from Rousseau perceived

agreement point of view

To promote skills and experience employee from Rousseau developing

career point of view

To open more interaction and disagreement with possible flexibility from

Rousseau implicit point of view

To potential negotiation with union from Rousseau ongoing understanding

point of view

To allow recognition for high performers (HBR, 2013)

Source: Conway and Briner, 2005: and Robbins et al., 2008:81-89

When employee will be involved with organization, end of the day they will say that it

is my organization and feel comfort towards their job security. According to (HBR,

2013) almost 77% customer satisfaction is depending on employee engagement.

In addition, integrated framework report can help the MAS current complex situation.

This report is mainly dealing to create value for the organization through the efficient

and productive allocation of human, intellectual and social capital (IIRC, 2013).

On the basis of this IR framework, MAS has employeescompetencies, capabilities,experiences and motivations. So it can lead to employee towards innovation. Also,

employee has ability to understand situation, strategies and implementation.

Therefore, it can be lead employee towards improving processes, goods,

collaboration and services. It is the MAS human capital and this capital can create

value for the MAS. Intellectual capital point of view, MAS has tacit knowledge which

again intangibles like intellectual property, patents, protocols and system. Based on

proper utilization of intellectual capital, HR can help to increase brand and reputation

of MAS. Again, social capital is mainly dealing to build up relationship between the


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MAS and community, stakeholders and other networks towards trust, common

values and shared norms. All above three core capital will create the organization

value and will bring the outcomes of internal (staff morale, organization status and

revenue) and external (brand loyalty, customer satisfaction, positive effect of social

and environment) (IIRC, 2013). It is often argued that some HR professionals may

view them as monopoly service providers; they also believe that managers and

executives will not consider using external sources for HR services (Truss et al.,

2013). It takes them go beyond the complacent situation to foster change

proactively. The competitive mindset will help to set high standards service and

perform benchmarking initiative against their competition. Develop people and

organisational strategies to enable company in delivering values for customers. It

can also emphasize HR priorities that can help MA to gain competitive advantage. It

is essential for HR to create a working environment across the company that fosters

collaboration and partnership, at the same time develop a mindset that helps

company to create value for companies (Truss et al., 2013).

Another important elements known as information sharing is highly related with MAS

performance and employee involvement. Based on information sharing, organization

can control and measure the operation, financial performance and strategies.However, the trust is the main element of information sharing. One of the proverb

An organization where people are all-for-one and one-for-all, you can't have

secrets.For instance, open book is representing the value of trust. Some cases, it is

true that motivated and trained people cannot contribute towards organization

performance because of shortages or not sharing of information. Thats why, HR

team of MAS needs to share their information openly with employees from top to

bottom.

Worker voice point of view, trust is taking a vital role for employee voice. Employee

voice can come through trade union representation or collective good deal by the

established compliant or dispute procedures. In practically finds that the relationship

between union and employer is suffering because lack of trust (Sanders, 2012).

From that point of view, MAS is facing challenge from the union after 6000 jobs cut

announcement. To overcome this problem, HR needs to build up high trust


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relationship with union and involved them within the early stage of decision making.

It will bring the solve problem rather than culture of blame against each other.

Therefore, listening worker voice and engage them openly towards solve the

problem will make trust and honesty types of behaviour. It will be make mutual

cultural trust relationship between the union and practice organization (Saundry et

al., 2011). For example: First Direct and London Ambulance Service. Again, MAS

HR needs to more focus on working together to build up trust each other towards

develop innovative solution for the current problems (McCarthy, 2014).

Finally, the study would like say that it will create value towards MAS and will make

relationship with strategic partner.

2.5.5 Self-managed teams/team working:Research and study found that team

work is leading better result of decision making and way of achievement towards

creative solutions. It has more satisfaction for employee when works within the team.

In addition, it has some major advantages such as higherefficiency,more thoughtful

ideas, greatereffectiveness,mutual support, improved morale, increased innovation

and greater flexibility (Mullians, 2013:305-325). MAScurrent complex situation, it is

necessary that employee working within the team towards specific goal on the basisof information, skills, knowledge, experience and idea sharing. However, it is also

crucial task to build up team because it has barriers such as time, leader, place,

learning style, longer process, not equal participation, limited creativity thinking, and

conflict (Mullians, 2013:335-342). At this moment, MAS HR has not enough time

build a team. In addition, some cases telling that self-managed teams are less

optimistic. Though, it has some limitation but team work is bringing more potential

outcomes in the present business world. Therefore, MAS HR can build the team for

their specific goal. Employees are often highly committed and aligned with the

direction of the organisation as a whole (Weiss, 2000). It de-emphasizes the

bureaucracy and wants to look the HR as a strategic partner with the capability to

make unique and make difference contribution. It will move its focus to companys

strategic direction and business. At last, it will increase trust and build up a good

relationship with strategic partner. Because HR will be able to know what customer

expect from the company or the voice of the customer. It helps HR to be aligned

internal initiatives to support customer initiatives. Another factor time, it is not enough
https://www.boundless.com/definition/efficiency/https://www.boundless.com/definition/effectiveness/https://www.boundless.com/definition/effectiveness/https://www.boundless.com/definition/efficiency/


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MAS hand so short time is taking a competitive advantage in this situation. Because,

it is quite unlikely to believe that the business environment is stable enough to insure

that a longer term investment will be pay off. Moreover the long term strategy

assumes a stable and predictable business environment (Price, 2008). In current

business environment companies expects those strategies that increases revenue

immediately and decrease the cost at the same time. Open an opportunity to work

with other departments either individually or as a team of the organisation as a

strategic partner in developing clear priorities regarding how to add value.

2.5.6 High compensation contingent on performance: Current competitive

business environment is increasing stakeholder level of expectation. Again, it is

putting human resources on the centre point of value adding process (Pfeffer, 1999).

For any organization within any industry to run the business, it is necessary that

select the best people for survive, strive and outperform. Therefore, organization is

selecting best people as much as possible on the basis of their offering available

opportunity to attract them. It is true that high compensation is playing a vital role in

the business success. But it is not for all industries just for certain industry like retail

or highly educated employees or home depot. Usually, home depot business is more

profitable and their stock price can bring exceptional returns. In addition, it ispossible and affordable those are successful organization. However, MAS is facing

tough challenges in current time and already bankruptcy. So, they cannot afford the

high compensation towards the performance. Instead of that MAS can afford

contingent compensation towards high performance. According to different HR

theories (Maslow hierarchy need, Harzberg two factor model, ERG theory) there are

different type of motivator can be used to motivate employees that can help them to

come up with additional energy and high degree of commitment. Again, contingent

compensation can take various forms such as performance or feedback based,

payment system, intrinsic, gain and profit sharing, team-incentives and role based

but it is completely based on organization business strategies. Other way MAS can

afford contingent compensation towards high performance to encourage employee

to take different opportunity within the organization. When employee will get different

opportunity as much as possible they will think that they are the part of MAS owner.

This feeling will bring organization high performance for the success. It will bring


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work life balance. For example: Southwest Airlines, Wal-Mart and Microsoft (Pfeffer,

1999). So, it can be possible with the help of employee performance.

2.5.7 Reduction of status differentials/harmonisation: Research found that

high performance practice organization system is achieving high level performance

on the basis of ideas, experience, skills and energy, reduce the status and effort

more or less equally within organization (Pfeffer, 1999). It is already mentioned

under just above section where it is argued that key way of achieving this would be

to develop a self- managed team and individual. For example: Japanese HR

practices always like treat and encourage employee equally from top to bottom.

From that employees are getting open practice organization culture and believe they

are valued and treated equally through same uniforms, sick pay, pensions, working

hours, shared canteen and car parking facilities.

From MAS current situation, it is clear that organization structure is functional,

hierarchical and bureaucratic including central control (Johnson, et al., 2011).

Therefore, it clear proves that status is not equal within the organization like Asian

practice organization culture (Yoo et al., 2013). Therefore, it is very necessary that

MAS HR should reduce the status difference on the basis of modern westernpractice organization culture. But question is how? It is possible according to Peffer

(1998: 21) reduction of status difference can be brought about in two major ways.

The first one is symbolically by constructive and meaningful use of language and

level, physical space and dress. The Subaru-Isuzu could be cited as an example

where everyone (from president to frontline employees) is called Associate where it

is stated that Subaru-Isuzu does not hire workers but associate who will work as a

team and keep themselves aligned with the company values. From the practice of

modern western practice organization culture and destroying the harmonisation, the

MAS can improve psychological contracts including more employee engagement.


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3.1 Key Recommendations: In general, the study already has been

recommended some steps towards current MAS complex situation within above all

discussion for the HR. Therefore, the study would like to suggest some key

recommendations for this report. These are as follows:

Create cultural learning environment

Invest towards training and development from the capability

Traditional training and development will be replaced by knowledge and

learning based employee development

Reduce the hierarchy structure and destroy harmonisation

Improve the psychological contract towards more employee involvement and

engagement

Proper utilization of human, social and intellectual capital based on integrated

report frame work towards value adding

More focus on working together to build up trust each other towards develop

innovative solution for the problems

Retain talent and promote them within the organization

HR approach will be blended

HR transformation will be holistic way Prepare a frontline team by learning, developing and motivating to deliver

quality service

Employee motivation through recognition and reward

3.2 Change model for MAS:Now the question is how the MAS will follow the

process of change. In this process, the study would like to recommend the changeprogramme developed by Balogun Hop-Hailey (2004).

The model has nine steps and it is discussing for MAS HR:


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Power: Stakeholder analysis: 1) Government 2) Khazanah 3) Employee 4) Strategic

partner 5) Completely competency map 6) Culture

Time: Total three years process: 1) Crisis for six months 2) One year employee

engagement 3) Two to three years support 4) Continuous incremental change 5)

Best fit approach

Scope: Change in terms of internal and external labour: 1) Transformational and

holistic approach 2) Security of employees 3) Recruitment and selection process 4)

Competency skills

Preservation: Preserve highly competent talent: 1) Psychological contract 2)

Cultural change 3) Destroy de-harmonisation 4) Reforms and reshapes HRpolicies/strategies

Diversity: Diversity of workforce (Positive): 1) Creating feedback loops 2) Cultural

excellence 3) Moves to knowledge based view 4) Transparency and accountability 5)

Impacts on loyalty and identity

Capability: Abilities exists for the change (Negative): 1) Line manager needs to

trains to retrain his/her team 2) High employee morals by high employeeengagement and empowerment 3)Communicate through stakeholders

Capacity: Sources (Cash, time and people): 1) Competency test (Basis knowledge

and skills) 2) People from RBV to KBV 3) Return on investment 4) Cost benefit

analysis (Benefits > Cost) 5) Expertise to initiate change programme

Readiness: Awareness and commitment: 1) MAS ready to change 2) Good

communication 3) Evolvement in change process 4) Contingency approach 5)

Strategic partnership

Design choices: Change target, path, style, start point and levers role: 1) Cost

effectiveness 2) Incremental 3) Structural change 3) RBV to KBV 4)

Transformational 5) Employee mindset change 6) Improving efficiency 7)

Performance measurement


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3.3 Conclusion

Malaysia airline is facing tough challenges to survive followed by two major incidents

this year. Now it is becoming very crucial to redesign their business and value

creation model because they are losing money and already lost brand image

including market reputation as well. Under these circumstances the report aims to

develop agile or adaptive HR capabilities that can meet the external and internal

challenges. Also, the report needs to prepare a change programme on current

situation of Malaysian Airlines. This form of organization can also give it a source of

sustainable competitive advantage. Agile HR is not only working together with

consumers but also focusing on the difficulties within the organization to ahead of

following core question Are these HR problem solutions in the best attention

towards the customers? This potential approach is making the HR more active and

serious towards customer problem solving including satisfy the customer needs as

well. However, HR capability means that strategic involvement. Therefore, agile HR

can make the difference i.e. taking creative competitive advantage. From all above

discussion on current complex situation of MAS, the study has been found that high

commitment/best practice of HR can meet and overcome the MAS current complex

situation based on Pfeffer (1999) recommendation and Ulrich and Brockbankupdated model. It can lead the MAS HR to agile or adaptive. In addition, the study

suggested towards MAS agile HR such as blended approach on change process,

transformational and holistic way, destroy de-harmonisation, prepare a frontline team

to delivery service and move RVB to KBV. Finally, the study has been produced a

change programme model for the MAS agile HR.


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Appendices

Appendix 1: SWOT Analysis of Malaysian Airlines:

Strengths Improve infrastructure

Broad geographic presence

Established on line presence

Government Ownership

One world coalition significantly

boosts global traveller feed

Weakness Substantial debt burden

Poor brand recognition

Government intervention

Exit from equity market

Low Turnover

Lack of customers reliance

Extensive regulatory conditions

impact operating margins

Opportunities

Demand for regional roots

Increased demand for global air

transport

Positive outlook about air transport

Restructuring efforts may start to

bear fruit

One world coalition membership

could facilitate to improved

reputation and generate increased

revenues

New International routes

Threats

Market competition

Increase fuel cost

High degree of regularity

condition

Restructuring the organization

Constant scanning by

consumers

Strong unionized workforce

Source: Market line report, 2014; Sudworth, 2014; Koon et al., 2014


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Appendix 2: PESTEL Analysis of Malaysian Airlines:

Factors Influence of these factors

Political

There are two main factors affecting Malaysian

Airlines like security control and restriction on

migrations. According to TTG digital (2014) and

Khazanah Nasional (2014), The Government has

taken a decision on Malaysian Airlines will be

nationalised after two tragedies this year. Basis on

this decision, the biggest state investment firm

Khazanah National (Malaysia) has given a proposal

to buying shares. The firm already has owns 69.4%

of the airline. In addition, the firm has offered to pay

0.27 ringgit (0.05) per share for the outstanding

stock.

Economical

Again, two major factors are playing vital role in the

Malaysian Airlines such as increasing fuel prices

and fluctuations of exchange rates. After the two

tragedies like July, MH17 and March, MH370, the

government is expecting, it is most likely most likely

by Russian separatists in eastern Ukraine. Because

of that it was shot down. Again, Malaysian

government has been lost Chinese market because

of cancel route from Kuala Lumpur to Beijing for

March MH370 incident. Almost 60% drop sales

from the vital China market in the wake of the

aircrafts disappearance. Past nine months, the

Malaysian Airlines has been fallen 40% market

value. On that situation, Khazanah has been

proposed more than $1 billion investment for

restructuring all aspects of the airlines operations.

This investment will cover business model and

finance as well (TTG digital. Com, 2014 and


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Khazanah Nasional (2014))

Social Changing consumers attitudes and rising life

expectancy in development country are impacting

on current situation of Malaysian Airlines. It is very

important to show sympathy and condolence for

those who have lost their friends, family and

relatives in this MH17 disaster (TTG digital.com,

2014). It is remarkable from one of the reaction like

My wife had a close relative killed when a Korean

flight was hit in rather similar circumstances in the

1980s. In reply from Malaysian Airlines Reaction

is hardly constructive and those of us more

pragmatically minded see the incident as a most

unfortunate one off. Therefore, It has shacked the

confidence and commitment on airline especially on

social factor. (TTG digital.com, 2014 and Khazanah

Nasional (2014)).

Technological

In this section, there are major three factors playing

vital role such as increasing green technology,

online booking service and compare price and

security check technologies.

Environmental

Most crucial factor energy consumption controls is

impacting on current situation of Malaysian Airlines.

Legal

Two important factors like employees rights and

customers rights have also be followed and

changes in laws and regulations are direct

impacting on current situation of Malaysian airlines.

In aviation industry, there is a number of growing

airlines and their demand worldwide review on how

to operate and determine air safe for the fly


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because they are concern about game-changing

MH17 tragedy. In general, fly zone not less than

32,000 ft limit for any airlines whether Malaysian

Airlines Boeing 777 maintained that and there was

a no-fly zone up to 32,000 ft in place in the area

where the Malaysia Airlines Boeing 777 crashed.

However, Jet Airways is always maintaining the

limit above 33,000 ft in fly zone. The chief executive

Tony Tyler advised governments to reconsider how

such gaps are examined to prevent a related

catastrophe in prospect. Also he added

Governments will need to take the lead in

reviewing how airspace risk assessments are

made. However, the industry will carry out the

entire that it preserves towards support

governments throughout ICAO (International Civil

Aviation Organisation) but it is one of the difficult

effort that slander ahead (TTG digital.com, 2014

and Khazanah Nasional, 2014).

Source: Compiled by author, 2014


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Appendix 3: Porters six forces analysis of Malaysian Airlines:

Forces Intensity Justification

ENTRY INTO

MARKET

Low

There are three factors taking vital role in this

current situation such as huge capital

requirements, high compliance and specialized

skills requirements.

THREAT OF

SUBSTITUTES

High

Two prime factors such as telecommunication

and smart and fast rail transporting system are

main threat for Malaysian Airlines in present odd

situation.

BARGAINING

POWER OF

SUPPLIERS

High

Here, it is remarkable that following three factors

are impacting not only the Malaysian Airlines but

also the whole aviation industry. These factors

are as follows: limited numbers of suppliers

within the Industry, suppliers are relatively bigger

and high switch over costs.

BARGAINING

POWER OF BUYERS

High

There are more availability of airlines (United

Airways, Jet Airways, Singapore Airlines),

increased customer awareness and easy access

to information are more impacting on current

situation of Malaysian Airlines. Therefore,

customers have more available options to choice

low price airlines.

COMPETITIVE

RIVALRY

High

Airlines industry characterized by very little

differentiation on their own product. So, airline

industry position is in very week because of

these products and conditions of present market.

In addition, airlines industry is mostly

disappeared because of non-price competitions.

Also, current two incidents Malaysian Airlines


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has been put into the high fixed costs most and

left in a difficult negotiating position.

Complements Low

At present, there are available complements

within the airline industry to travel. It isremarkable that determine magnitude relations

and its maintained so difficult. Some of the

available products and services are very much

related within the airline industry complements to

travel like hotel rooms, restaurants, leisure and

rent a car price as well. Therefore, above

complements and its cost when lower, it will

create greater demand within the airlines

industry. Therefore, the above complements

discussion was very well organized before the

two incidents of Malaysian Airlines. However, it

is now totally discrete and suffering

complements service with their business partner.



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Appendix 4: Risk analysis of Malaysia Airlines:

ID Risk Probability Impact Action

1 Poor brand

recognition

High High More focus and

concentration towards

best practice of

marketing plan and

strategies

2 Increase fuel price Medium High Need to better

prevarication practices

3 Strong unionized

workforce

High High To set up a acceptable

terms and conditions

with union workforce

4 Government

intervention

Medium High

5 Lack of customers

reliance

High High Need to build up

customer relationship

management on the

basis of restructuring

HR policy and practices

towards customer trust

6 High degree of

regularity condition

High High Need to maintain

aviation industry

standard regularity

condition



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Appendix 5: Cultural web analysis of Malaysian Airlines: Based on Johnson et

al. (2011:176)

Stories: In this section some of the following factors are affecting the Malaysian

Airlines especially HR:

Salvation meaning money making deal

In terms of leadership style towards blame practice within the organization

including low cost culture

Symbols:Brand is symbolizing high cost before two incidents. After the incidents

dispersed share rights.

Power:Control by CEO and Corporate Board Directors. It has egotism and male

dominant including visible.

Organization:The organization structure is functional, hierarchical and bureaucratic

including gaps of guiding principles.

Control: All controls centrally on the basis of Board Corporate plan and lots of

measurements.

Rituals and Routines:Within organization, everything going fast through routine. In

addition, it has formal induction and challenges as well.

Paradigm: At present, it has gaps on collaboration, quality customer service and

employee engagement. Senior management evangelizes and more focus towards

overcome the present crisis.


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Appendix 6: Stakeholder analysis of Malaysian Airlines:

Stakeholders are individual, groups or organizations who have potential interest in

the company. Stakeholder can be internal as well as external. Like other airline

industries, MAS has many stakeholders including the Malaysian Government, who

recently bought the ownership of the Malaysian airlines. Stakeholder relationship

explains the connections between the stakeholders and the organization. Malaysian

airlines have a great number of stakeholders group. Important stakeholders are

The Government:Government is the main stakeholders of MAS. They have

got huge range of legislation for domestic, Asian and international. Those

regulations have huge impact on Malaysian airline industry. Due to their

regulations and bilateral agreement MAS cannot run in some routes.

However, government allowing MAS to mainly operates commercial business

model (khazanah Nasional, 2014).

MAS Management:Developing and delivering operational plan that is leading

to build a successful new Malaysian Airlines. They are resetting work rules,

processes and negotiating with suppliers and creditors to business standard

(khazanah Nasional, 2014).

Khazanah: Khazanah is developing and delivering the overall enabling

recovery plan, monitoring the progress and preparing an enabling

environment as well as providing progressive and contingent fund (up to RM6

billion) to support MAS recovery (khazanah Nasional, 2014).

MAS Employees and Unions:Although employees are under pressure to

keep their job open as MAS management decided to cut down 30% of

employees but still performing their highest level to support the MAS

restructuring as they have the huge power of influencing customers. Due to

recent staff cut proves that MAS management and employees do not have

strong relationship and it is making employees dissatisfaction. Unions are

strongly supporting them to raise their voice on taking major decisions


Suppliers, Contractors and Financiers: They are delivering services and

terms reliable with market standards (khazanah Nasional, 2014).

Media:Media is one of the important stakeholders as they have huge impacton MAS. MAS need to maintain high quality of relation with media after the


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recent incidents in order to have the very good relations with publics


Shareholders: Malaysian Airlines need very strong relationship with all the

shareholders as MAS is running under huge financial loss last few years.

Shareholders have very high interest in the financial success of MAS (khazanah

Nasional, 2014).

Appendix 7: Malaysian Airlines internal environment analysis basis on

Maslow's hierarchy of needs:

Source: Mullians, J.L. (2013:253)

On the basis of above figure, it is very crucial that Malaysian Airlines most of the

employee very much concerns about their job security after the two incidents and

6000 staff cut announcement (Koon et al., 2014, Hamzah and Govindasamy, 2014

and Subang, 2014). It is consistent with Maslows second step though employees

are little bit concern about Maslows first step because they have alternative option to

survive their life either government help or any other job facilities. Again, these two

incidents are affecting their personal and family life towards health care, safe

Self-

Actualiz

ExternalEsteemNeeds

Internal EsteemNeeds

Social Needs

Safety Needs

Physiological Needs


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neighbourhoods and shelter from internal environment as well external. In addition,

they have lost their confidence, relationship, trust, social stability and intimacy as

well. Therefore, there is no self-actualization in this situation of Malaysian Airlines

internal environment because they have lost their interested related fulfilling

potential.

Appendix 8: ERG Theory

Alderfer (1972) has divided Maslows six steps by three such as growth, relatedness

and existence. Alderfer idea was same like Maslows on the basis of following below

figure but his argument was simple menthods:

Satisfaction = Progression (Organization performance increase), Frustration =Regression (Organization Performance decrease)

Source: Alderfer (1972:18-29)

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