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Human Resource Management

The staff strength of Malaysia Airlines as at 31March 2004 stood at 20,789, comprising 271managerial staff, 1,208 executive staff, 1,294technical crew, 4,731 cabin crew, 2,225technical staff and 11,060 support staff.

In line with the Government’s move to improvethe performance of Government LinkedCompanies (GLC), Malaysia Airlines embarkedon the Performance Linked Compensation (PLC) project. Aimed at changing the Airline’sculture 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 implementan incentive plan to support the Airline’sbusiness plan.

The project will cover a job evaluation exercise,external and internal benchmarking, consistenttitling conventions and the provision of a platform for competency and performance management. Corporate and Divisional KeyPerformance Indicators (KPIs) will be categorisedunder 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 bothKPIs and competencies, will be aligned to theCorporate and Divisional Balance Scorecard perspective. The first phase of the PLC projectinvolves all Assistant General Managers andabove, 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 smoothtransition in organisational leadership, MalaysiaAirlines 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 incorporatesthe 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 aspirationsof 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

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Alternative channels are being assessed toensure the availability of specialised and technical manpower. The movement of peoplein the international aviation industry has forcedMalaysia Airlines to continue sourcing peoplefor positions such as licensed aircraft engineerand technical crew, as well as specialists inaccounting and finance, internal audit and riskmanagement. The recruitment of cabin crewand cadet pilots is ongoing due to additionaldestinations being secured by the Airline.

Malaysia Airlines’ relationships with the respective in-house unions and associations continue to be cordial. Negotiations have beenconcluded and various collective agreementsand memoranda of understanding have been signed.

Human Resource Development

Reflecting Malaysia Airlines’ continued emphasison 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 thefinancial year.

To meet the learning needs of employees, bothinternal and external teaching resources wereengaged through active close collaboration with local and international institutes of higherlearning. 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-changingenvironment, characterised by globalisation,cross-cultural issues, intense competition andvast information, is putting business leadersunder constant pressure to make plans and decisions to ensure the viability of the business.With the assistance of the Armed Forces, theAcademy has introduced the ‘Corporate

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Wargame’, an experiential outdoor programmethat 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 corpamongst the various groups of employees.

Under the MAS Gemilang initiative that hadbeen implemented to continually improve work processes and procedures, 59 projectswere 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

17 May 20036MAS’ staff participated in the Labour Day gathering at StadiumPutra, Bukit Jalil.

19 July 2003The Malaysian AirlinesPilots Association celebrated its 30thanniversary by hosting a whole-day workshopfor under-privileged children at the Wira Kris Hangar, SultanSalahuddin Abdul Aziz Shah Airport, Subang.The children were treatedto career talks, an aviation workshop andvideo presentations, andjoyrides on Twin Otterand Cessna 152 aircraft.

19-20 July 20036Kelab Sukan MalaysiaAirlines organised its 16th Annual AthleticsMeet at Petaling Jaya Stadium, Selangor.

E M P L O Y E E C A L E N D A R O F E V E N T S

9 April 2003Dato’ Md Nor Md Yusof,Managing Director ofMalaysia Airline SystemBerhad (MAS), launched the Service TowardsAchieving Recognition(STAR) campaign atMalaysia Airlines (MAS)Academy, Kelana Jaya,Selangor. Initiated by theInformation TechnologyPlanning & ServicesDivision, the campaign is aimed at improving the service level and job performance of the Division’s staff byrecognising their effortsand abilities.

26 April 2003Staff of Flight OperationsDivision held a get-together for both groundand flight crew, where staff were presented certificates of recognitionfor ‘Going BeyondExpectations’ in carrying out their work.

14-17 May 2003As part of its ongoingservice to the community, MAS’ Islamic WelfareCommittee completedthe renovation of a single mother’sdilapidated dwelling in Kuala Lipis, Pahang.

23 June 20035MASkargo launched theCargo Staff Testimonialand Reward Programme(C-STAR Award) to enhance the morale and commitment of itsstaff as well as to deepenthe sense of belongingamongst them.

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O P E R A T I O N S R E V I E W

15 August 2003 611 Flight Dispatchersfrom the OperationsDispatch Centre completed their FlightOperations ManagementLevel Two course organised by JeppesenAcademy at the MAS Academy.

28 August-7 September 2003MAS’ cultural group,MASENIDAYA, participat-ed in the Malaysian Food and CulturalPromotion Festival inColombo, Sri Lanka.

20 February 2004The Engineering &Maintenance Departmentopened its staff souvenirshop at the EngineeringBuilding, Hangar 2,Subang.

29 February 2004MAS staff at Hanoi,Vietnam, emerged as the Best Airline TeamChampion at the second annual inter-air-line bowling competition.

25 March 2004 6New volunteers of theEmergency OperationsCommittee received theircertificates of attendance at the MAS Academy.

27 March 2004 MASkargo organised a ‘Freighter Hunt’ for its partners as well asinternal and external customers.

31 March 2004Staff of MAS hosted a farewell dinner atCarcosa Seri Negara,Kuala Lumpur, for theoutgoing ManagingDirector, Dato’ Md Nor Md Yusof.

19 November 2003 6The first group of 17Indian national cabincrew, who underwent a four-month trainingprogramme commencing21 July 2003, graduatedat the MAS Academy.

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O P E R A T I O N S R E V I E W

C O R P O R A T E S O C I A L R E S P O N S I B I L I T Y

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Promoting KLIA as an International Hub

As the national carrier and responsible corporateentity, MAS is mindful of its commitment towardsnation-building. It has invested substantially ininfrastructure and resources towards developingKuala Lumpur International Airport (KLIA) as an important international hub. MAS will alsoencourage business growth through increasedschedules and better connectivity through KLIA.

Rural Air Services

MAS also has obligations to fulfil that go beyondthe balance sheet. While aggressively extendingits network internationally, it takes into considera-tion the needs of the Malaysian population.

Since operations began on 1 October 1972, MAShas provided vital air links within remote areas ofEast Malaysia. These services, known as Rural AirServices, are operated using the 19-seater TwinOtter aircraft, linking major towns with airfields in remote places such as Bakalalan, Bario, Belagaand Kudat. Fares for these services have alwaysbeen maintained at well below the operatingcosts. As and when the existing airfields areupgraded, MAS has introduced the 50-seaterFokker aircraft, such as to Limbang and Mulu.

Affordable Fares

While MAS has to ensure that it operates profitably, it nontheless offers a variety of rebatedfares to ensure affordable air travel withinMalaysia and foster greater national integrationbetween East and Peninsular Malaysia.

Rebated fares are offered to groups such as families travelling together, passengers travellingin groups of three, students, senior citizens and passengers with disabilities. These fares are extended to members of the Security Forcesand 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 betweenMalaysia, Brunei and Singapore to accommodategroups that include students, members of theSecurity Forces, passengers with disabilities andthose travelling in groups of ten or more.

Environment-friendly Operations

An increasing number of cities worldwide imposejet curfews at their airports to prevent aircraftlandings and take-offs during the late hours of the evening until the next morning. MAS takescare to factor these jet curfew restrictions into itsflight operations planning.

Within the Airline, a number of initiatives havebeen taken to put in place operations that areenvironment-friendly. At MAS’ hangars in Subangand KLIA, waste water arising from all cleaningprocesses relating to aircraft and the maintenanceof parts is first treated in-house to raise it to‘Standard A’, as required by the Department of the Environment (DOE), before being dischargedinto the drainage system. At the engineering andmaintenance premises, all toxic waste is collectedand stored in containers in accordance with DOE guidelines under the revised EnvironmentalQuality Act 1974. The waste is then sent to theincinerator operated by Kualiti Alam Sdn Bhd atBukit Pelanduk, Negeri Sembilan, for disposal.

Air and noise pollution are also areas of concern.To prevent toxic gases from being discharged intothe atmosphere, all cleaning and maintenanceprocesses of components and parts at the hangarsin Subang and KLIA are subject to chemical emission tests. On the aspect of noise pollution,both the engine run bays at Subang and KLIAhangars, where aircraft engines are operated andtested, are equipped with a noise suppression system. Even when an engine is tested at fullpower, 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 suppliedwith appropriate personal protective attire and equipment.

Developing the Nation’ sAviation Workforce

MAS’ extensive network and worldwide operationsmakes it an employer of choice in the work market. The Airline provides employment as wellas training and development opportunities forMalaysians keen on developing a career in the aviation industry. In the process, MAS is helping to build up a workforce of Malaysians trained inaviation-related skills and committed towards quality. This in turn will go far in positioningMalaysia as an aviation centre of excellence.

C O R P O R A T E C I T I Z E N C A L E N D A R O F E V E N T S

28 April 2003 5Malaysia Airline SystemBerhad (MAS) conducteda SARS awareness brief-ing at the MalaysiaAirlines (MAS) Academy,Kelana Jaya, for its travelagents.

29 April 2003The Sabah and BruneiRegional Office of MAS at Kota Kinabalu held the first of a series ofcareer talks for secondarystudents at MaktabSabah Secondary School,Kota Kinabalu.

5 & 19 May 2003The Occupational Safetyand Health Departmentorganised a Safety,Security & HealthAwareness Campaign and Exhibition at the MAS Academy and the Facilities SupportBuilding, South SupportZone, Kuala LumpurInternational Airport(KLIA).

19 May 2003Motorola Malaysia selected MAS as the first company to launchits ‘Green Malaysia’ programme at the MAS Academy.

29 May 2003MAS organised a PestaKa’matan and GawaiFestival ‘Show Time’ at KLIA, with the cooperation of the Sabah TourismPromotion Cooperationand Sarawak TourismPromotion Corporation, to promote local festivals.

1-3 July 2003MAS, in conjunction withMalaysia Airports Berhad,organised a three-dayevent in Penang tolaunch its inauguralSafety, Security & HealthAwareness Campaignroad show outside theKlang Valley.

17 July 20036ESPN Star Sport appoint-ed MAS as the official airline for the inauguralFA Premier League AsiaCup tournament to beheld on 24-27 July 2003at the National Stadium,Bukit Jalil.

23 July 2003MAS was appointed the official airline of theReal Madrid Asia Tour2003 by Asia SportsDevelopment Ltd ofHong Kong.

31 August 2003 6MAS participated in the 46th Merdeka Dayparade in Putrajaya.

2 October 2003In conjunction with its 31st Anniversarycelebration, MASlaunched a month-long exhibition at the MAS Academy as a tribute to the contributions of the out-going Malaysian PrimeMinister, Dato’ Seri DrMahathir Mohamad, tothe country and MAS.

28 November-7December 2003As part of its promotionof the arts in the country, MAS becamethe official airline for ‘Beauty and the Beast’, a Disney-on-Ice production staged at Stadium Putra, Bukit Jalil.

6 December 2003MAS was the official partner for the FourthPhilips International Jazz Festival held at Bukit Kiara Equestrian & Country Resort, Kuala Lumpur.

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6 December 2003-31 January 2004 6MAS participated in the ‘Centenary ofAviation’ exhibition atthe National ScienceCentre, Kuala Lumpur, tocommemorate 100 yearsof global aviation history.

12-17 December 2003MAS was the official airline for the Irish danceand music extravaganza,‘Riverdance’, staged at Stadium Putra, BukitJalil. The group also performed in Beijing,Shanghai, Nagoya,Osaka, Tokyo, Sendai,Hiroshima and Fukuoka.

23 December 2003To showcase Malaysia’smulti-racial society, MAScelebrated the forthcom-ing Christmas festivalthrough a ‘Show Time’ at the KLIA.

7 January 2004The first episode of aweekly reality TV programme to showcasevarious domestic destinations was aired.The programme,‘Explorace’, was produced by TV3 in collaboration with MAS.

8-26 January 2004MAS was the major sponsor and official air-line for the SydneyFestival, Australia’s mostpopular annual visual and performing arts festival. The appointmentenhanced MAS’ positionas a promoter of the artsin the Asia-Pacific region.

15 January 2004An agreement wassigned with the SquashRackets Association of the Federal Territory,appointing MAS as thetitle sponsor for the KualaLumpur Open 2004Squash Championship tobe held on 10-15February 2004 at theNational Squash Centre,Bukit Jalil.

15 January 2004MAS hosted a joyridefrom Kota KinabaluInternational Airport for 80 children from anumber of charity homes in Sabah. The children had theopportunity to samplethe Airline’s award-winning in-flight service.

12 February 200442 students, includingtheir teachers, fromMaktab Rendah SainsMara, Kuala Kubu Bharu,Selangor, visited the MASEngineering Complex,Subang, and briefed onaspects of the aviationindustry.

29 February 2004MAS was the official air -line for the Kuala LumpurInternational Marathon2004, which had about4,000 runners, includingfrom Africa and Europe,flagging off at DataranMerdeka, Kuala Lumpur.

20 January 2004 5MAS teamed up for thefirst time with ExpressRail Link Sdn Bhd toorganise a ‘Show Time’to celebrate the ChineseNew Year festival.

11 February 2004 6A group of 45 students,accompanied by theirlecturers, from UniversityInstitute of TechnologyMara, Shah Alam, visitedthe MAS Academy aspart of their educationalprogramme, duringwhich they were briefedon the Airline’s financialaccounts system in relation to applicationstechnology informationand computerisation.

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