Human Resource Management Concurrently, to ensure a successful

95
Human Resource Management
The staff strength of Malaysia Airlines as at 31
March 2004 stood at 20,789, comprising 271
managerial staff, 1,208 executive staff, 1,294
technical crew, 4,731 cabin crew, 2,225
technical staff and 11,060 support staff.
In line with the Government’s move to improve
the performance of Government Linked
Companies (GLC), Malaysia Airlines embarked
on the Performance Linked Compensation
(PLC) project. Aimed at changing the Airline’s
culture from one of entitlement to performance,
the project will align performance with pay
and rewards, assess the competitiveness of
pay levels and pay mix consistent with a
defined compensation strategy, and implement
an incentive plan to support the Airline’s
business plan.
The project will cover a job evaluation exercise,
external and internal benchmarking, consistent
titling conventions and the provision of a
platform for competency and performance
management. Corporate and Divisional Key
Performance Indicators (KPIs) will be categorised
under aspects such as Financial, Customer,
Internal Business Process, and Learning and
Growth, to make up a Balanced Scorecard.
The Performance Management System (PMS),
which tracks an employee’s performance in both
KPIs and competencies, will be aligned to the
Corporate and Divisional Balance Scorecard
perspective. The first phase of the PLC project
involves all Assistant General Managers and
above, even though the PMS has been
implemented for all Managers. Subsequently,
it will be cascaded to all levels of employees.
Concurrently, to ensure a successful smooth
transition in organisational leadership, Malaysia
Airlines has also embarked on the initial phase
of its succession planning strategy. With
both the PLC and PMS in place, the Airline
is determined to successfully identify those
with potential and talent to fulfill its future
management needs. This process incorporates
the identification, selection and development
of a pool of human resources that will provide
a steady and reliable supply of well-trained
workforce for various management positions.
This process is of mutual benefit to both
the Airline and its employees, satisfying
business needs as well as the career aspirations
of employees.
Concurrently, to ensure a successful smooth
transition in organisational leadership,
Malaysia
Airlines has also embarked on the initial phase
of its succession planning strategy
96
Alternative channels are being assessed to
ensure the availability of specialised and
technical manpower. The movement of people
in the international aviation industry has forced
Malaysia Airlines to continue sourcing people
for positions such as licensed aircraft engineer
and technical crew, as well as specialists in
accounting and finance, internal audit and risk
management. The recruitment of cabin crew
and cadet pilots is ongoing due to additional
destinations being secured by the Airline.
Malaysia Airlines’ relationships with the
respective in-house unions and associations
continue to be cordial. Negotiations have been
concluded and various collective agreements
and memoranda of understanding have
been signed.
Human Resource Development
Reflecting Malaysia Airlines’ continued emphasis
on the development of its human capital, a
total of 7,542 employees participated in the
484 development programmes organised
by the Malaysia Airlines Academy during the
financial year.
To meet the learning needs of employees, both
internal and external teaching resources were
engaged through active close collaboration
with local and international institutes of higher
learning. The partnership with Jeppesen in
providing flight planning, operations and
maintenance systems for employees involved
in operations dispatch is one such successful
collaboration.
The increasing complexity of the ever-changing
environment, characterised by globalisation,
cross-cultural issues, intense competition and
vast information, is putting business leaders
under constant pressure to make plans and
decisions to ensure the viability of the business.
With the assistance of the Armed Forces, the
Academy has introduced the ‘Corporate
97
Wargame’, an experiential outdoor programme
that exposes participants to the principles
of war, leadership, resource management,
communications, strategic and tactical
planning, among others. At the same time,
the programme aims to enhance esprit de corp
amongst the various groups of employees.
Under the MAS Gemilang initiative that had
been implemented to continually improve
work processes and procedures, 59 projects
were undertaken during the year under review.
Of these, 17 projects have been concluded
and implemented successfully.
Reflecting Malaysia Airlines’ continued emphasis
on the development of its human capital,
a total
of 7,542 employees participated in the 484
development programmes organised by the
Malaysia Airlines Academy during the financial year
OPERA TIONS REVIEW
98
EMPLOYEE CALENDAR OF EVENTS
9 April 2003
Dato’ Md Nor Md Yusof,
Managing Director of
Malaysia Airline System
Berhad (MAS), launched
the Service Towards
Achieving Recognition
(STAR) campaign at
Malaysia Airlines (MAS)
Academy, Kelana Jaya,
Selangor. Initiated by the
Information Technology
Planning & Services
Division, the campaign
is aimed at improving
the service level and
job performance of
the Division’s staff by
recognising their efforts
and abilities.
26 April 2003
Staff of Flight Operations
Division held a gettogether for both ground
and flight crew, where
staff were presented
certificates of recognition
for ‘Going Beyond
Expectations’ in carrying
out their work.
14-17 May 2003
As part of its ongoing
service to the
community, MAS’
Islamic Welfare
Committee completed
the renovation of
a single mother’s
dilapidated dwelling
in Kuala Lipis, Pahang.
17 May 2003 6
MAS’ staff participated
in the Labour Day
gathering at Stadium
Putra, Bukit Jalil.
19 July 2003
The Malaysian Airlines
Pilots Association
celebrated its 30th
anniversary by hosting
a whole-day workshop
for under-privileged
children at the Wira
Kris Hangar, Sultan
Salahuddin Abdul Aziz
Shah Airport, Subang.
The children were treated
to career talks, an
aviation workshop and
video presentations, and
joyrides on Twin Otter
and Cessna 152 aircraft.
19-20 July 2003 6
Kelab Sukan Malaysia
Airlines organised its
16th Annual Athletics
Meet at Petaling Jaya
Stadium, Selangor.
23 June 2003 5
MASkargo launched the
Cargo Staff Testimonial
and Reward Programme
(C-STAR Award) to
enhance the morale
and commitment of its
staff as well as to deepen
the sense of belonging
amongst them.
99
15 August 2003 6
11 Flight Dispatchers
from the Operations
Dispatch Centre
completed their Flight
Operations Management
Level Two course
organised by Jeppesen
Academy at the
MAS Academy.
28 August7 September 2003
MAS’ cultural group,
MASENIDAYA, participated in the Malaysian
Food and Cultural
Promotion Festival in
Colombo, Sri Lanka.
20 February 2004
The Engineering &
Maintenance Department
opened its staff souvenir
shop at the Engineering
Building, Hangar 2,
Subang.
25 March 2004 6
New volunteers of the
Emergency Operations
Committee received their
certificates of attendance
at the MAS Academy.
29 February 2004
MAS staff at Hanoi,
Vietnam, emerged as
the Best Airline Team
Champion at the
second annual inter-airline bowling competition.
19 November 2003 6
The first group of 17
Indian national cabin
crew, who underwent
a four-month training
programme commencing
21 July 2003, graduated
at the MAS Academy.
27 March 2004
MASkargo organised
a ‘Freighter Hunt’ for
its partners as well as
internal and external
customers.
31 March 2004
Staff of MAS hosted
a farewell dinner at
Carcosa Seri Negara,
Kuala Lumpur, for the
outgoing Managing
Director, Dato’ Md Nor
Md Yusof.
OPERA TIONS REVIEW
100
CORPORA TE SOCIAL RESPONSIBILITY
Promoting KLIA as an
International Hub
As the national carrier and responsible corporate
entity, MAS is mindful of its commitment towards
nation-building. It has invested substantially in
infrastructure and resources towards developing
Kuala Lumpur International Airport (KLIA) as
an important international hub. MAS will also
encourage business growth through increased
schedules and better connectivity through KLIA.
Rural Air Services
MAS also has obligations to fulfil that go beyond
the balance sheet. While aggressively extending
its network internationally, it takes into consideration the needs of the Malaysian population.
Since operations began on 1 October 1972, MAS
has provided vital air links within remote areas of
East Malaysia. These services, known as Rural Air
Services, are operated using the 19-seater Twin
Otter aircraft, linking major towns with airfields
in remote places such as Bakalalan, Bario, Belaga
and Kudat. Fares for these services have always
been maintained at well below the operating
costs. As and when the existing airfields are
upgraded, MAS has introduced the 50-seater
Fokker aircraft, such as to Limbang and Mulu.
Affordable Fares
While MAS has to ensure that it operates
profitably, it nontheless offers a variety of rebated
fares to ensure affordable air travel within
Malaysia and foster greater national integration
between East and Peninsular Malaysia.
Rebated fares are offered to groups such as
families travelling together, passengers travelling
in groups of three, students, senior citizens
and passengers with disabilities. These fares
are extended to members of the Security Forces
and the media as well. In addition, there are
the Super Saver fares, night tourist fares for
flights operated between Kuala Lumpur and
Kota Bahru, Penang, Kuching and Kota Kinabalu,
and excursion fares.
MAS also offers special fares for travel between
Malaysia, Brunei and Singapore to accommodate
groups that include students, members of the
Security Forces, passengers with disabilities and
those travelling in groups of ten or more.
Environment-friendly Operations
101
An increasing number of cities worldwide impose
jet curfews at their airports to prevent aircraft
landings and take-offs during the late hours of
the evening until the next morning. MAS takes
care to factor these jet curfew restrictions into its
flight operations planning.
Within the Airline, a number of initiatives have
been taken to put in place operations that are
environment-friendly. At MAS’ hangars in Subang
and KLIA, waste water arising from all cleaning
processes relating to aircraft and the maintenance
of parts is first treated in-house to raise it to
‘Standard A’, as required by the Department of
the Environment (DOE), before being discharged
into the drainage system. At the engineering and
maintenance premises, all toxic waste is collected
and stored in containers in accordance with
DOE guidelines under the revised Environmental
Quality Act 1974. The waste is then sent to the
incinerator operated by Kualiti Alam Sdn Bhd at
Bukit Pelanduk, Negeri Sembilan, for disposal.
Air and noise pollution are also areas of concern.
To prevent toxic gases from being discharged into
the atmosphere, all cleaning and maintenance
processes of components and parts at the hangars
in Subang and KLIA are subject to chemical
emission tests. On the aspect of noise pollution,
both the engine run bays at Subang and KLIA
hangars, where aircraft engines are operated and
tested, are equipped with a noise suppression
system. Even when an engine is tested at full
power, the sound emission is limited to 85
decibels maximum as stipulated by the DOE.
At the work place, MAS places the safety of
its employees as the top priority. As such, all
engineering and maintenance staff are supplied
with appropriate personal protective attire
and equipment.
Developing the Nation’ s
Aviation Workforce
MAS’ extensive network and worldwide operations
makes it an employer of choice in the work
market. The Airline provides employment as well
as training and development opportunities for
Malaysians keen on developing a career in the
aviation industry. In the process, MAS is helping
to build up a workforce of Malaysians trained in
aviation-related skills and committed towards
quality. This in turn will go far in positioning
Malaysia as an aviation centre of excellence.
OPERA TIONS REVIEW
102
CORPORA TE CITIZEN
CALENDAR OF EVENTS
17 July 2003 6
ESPN Star Sport appointed MAS as the official
airline for the inaugural
FA Premier League Asia
Cup tournament to be
held on 24-27 July 2003
at the National Stadium,
Bukit Jalil.
28 April 2003 5
Malaysia Airline System
Berhad (MAS) conducted
a SARS awareness briefing at the Malaysia
Airlines (MAS) Academy,
Kelana Jaya, for its travel
agents.
29 April 2003
The Sabah and Brunei
Regional Office of MAS
at Kota Kinabalu held
the first of a series of
career talks for secondary
students at Maktab
Sabah Secondary School,
Kota Kinabalu.
5 & 19 May 2003
The Occupational Safety
and Health Department
organised a Safety,
Security & Health
Awareness Campaign
and Exhibition at the
MAS Academy and
the Facilities Support
Building, South Support
Zone, Kuala Lumpur
International Airport
(KLIA).
2 October 2003
In conjunction with
its 31st Anniversary
celebration, MAS
launched a monthlong exhibition at
the MAS Academy as
a tribute to the
contributions of the outgoing Malaysian Prime
Minister, Dato’ Seri Dr
Mahathir Mohamad, to
the country and MAS.
19 May 2003
Motorola Malaysia
selected MAS as the
first company to launch
its ‘Green Malaysia’
programme at the
MAS Academy.
29 May 2003
MAS organised a Pesta
Ka’matan and Gawai
Festival ‘Show Time’
at KLIA, with the
cooperation of the
Sabah Tourism
Promotion Cooperation
and Sarawak Tourism
Promotion Corporation,
to promote local festivals.
1-3 July 2003
MAS, in conjunction with
Malaysia Airports Berhad,
organised a three-day
event in Penang to
launch its inaugural
Safety, Security & Health
Awareness Campaign
road show outside the
Klang Valley.
23 July 2003
MAS was appointed
the official airline of the
Real Madrid Asia Tour
2003 by Asia Sports
Development Ltd of
Hong Kong.
31 August 2003 6
MAS participated in
the 46th Merdeka Day
parade in Putrajaya.
28 November-7
December 2003
As part of its promotion
of the arts in the
country, MAS became
the official airline for
‘Beauty and the Beast’,
a Disney-on-Ice
production staged
at Stadium Putra,
Bukit Jalil.
6 December 2003
MAS was the official
partner for the Fourth
Philips International
Jazz Festival held at
Bukit Kiara Equestrian
& Country Resort,
Kuala Lumpur.
103
6 December 200331 January 2004 6
MAS participated in
the ‘Centenary of
Aviation’ exhibition at
the National Science
Centre, Kuala Lumpur, to
commemorate 100 years
of global aviation history.
7 January 2004
The first episode of a
weekly reality TV
programme to showcase
various domestic
destinations was aired.
The programme,
‘Explorace’, was
produced by TV3 in
collaboration with MAS.
15 January 2004
MAS hosted a joyride
from Kota Kinabalu
International Airport
for 80 children from a
number of charity
homes in Sabah.
The children had the
opportunity to sample
the Airline’s awardwinning in-flight service.
20 January 2004 5
MAS teamed up for the
first time with Express
Rail Link Sdn Bhd to
organise a ‘Show Time’
to celebrate the Chinese
New Year festival.
12-17 December 2003
MAS was the official
airline for the Irish dance
and music extravaganza,
‘Riverdance’, staged
at Stadium Putra, Bukit
Jalil. The group also
performed in Beijing,
Shanghai, Nagoya,
Osaka, Tokyo, Sendai,
Hiroshima and Fukuoka.
8-26 January 2004
MAS was the major
sponsor and official airline for the Sydney
Festival, Australia’s most
popular annual visual
and performing arts
festival. The appointment
enhanced MAS’ position
as a promoter of the arts
in the Asia-Pacific region.
23 December 2003
To showcase Malaysia’s
multi-racial society, MAS
celebrated the forthcoming Christmas festival
through a ‘Show Time’
at the KLIA.
15 January 2004
An agreement was
signed with the Squash
Rackets Association
of the Federal Territory,
appointing MAS as the
title sponsor for the Kuala
Lumpur Open 2004
Squash Championship to
be held on 10-15
February 2004 at the
National Squash Centre,
Bukit Jalil.
11 February 2004 6
A group of 45 students,
accompanied by their
lecturers, from University
Institute of Technology
Mara, Shah Alam, visited
the MAS Academy as
part of their educational
programme, during
which they were briefed
on the Airline’s financial
accounts system in
relation to applications
technology information
and computerisation.
12 February 2004
42 students, including
their teachers, from
Maktab Rendah Sains
Mara, Kuala Kubu Bharu,
Selangor, visited the MAS
Engineering Complex,
Subang, and briefed on
aspects of the aviation
industry.
29 February 2004
MAS was the official air line for the Kuala Lumpur
International Marathon
2004, which had about
4,000 runners, including
from Africa and Europe,
flagging off at Dataran
Merdeka, Kuala Lumpur.