Centurion university of technology and management

School of Management

Subject Code: MGHR2317

Project report on Performance appraisal of Silverspace Technology Inc

Submitted to:
Dr. Swetalina Mishra

Submitted by:
Manish Kankaria (210402100032)
Shrawani Thapa (210402100037)

Centurion University of Technology and Management

School of Management
Khordha, Bhubaneswar, Odisha-752050, India
ABSTRACT:
Performance appraisal is an idea connected to Human Resource Management and, as a result,
a component of the bigger concept of management. Much effort has been carried out to
seriously analyze performance appraisal methods, and this paper provides a brief analysis in
regards to Indian software program industries Silverspace Technology Inc. Performance
appraisal continues to be a brand new concept that is gaining traction in educational and
practitioner circles. This study is an attempt to conduct an empirical exam of performance
appraisal techniques and discourses through making use of a number of the strands of
essential thinking to them. Keywords-performance evaluation,growth,development, feedback.

INTRODUCTION
The present business environment is increasingly characterized by advanced levels of
globalization and dynamism, which has brought about a constantly changing global
competition in the business world. Within this context of market developments and
competitiveness, companies will need to be more proactive in order to address the challenges
that they face as such threatens their overall sustainability. Therefore, it is important that
these companies employ the strategies and measures that will bring about beneficial and
revitalizing outcomes and such would ensure measuring their performance in order to
contribute to their overall stability (Gabcanova, 2012). Organizational performance
management (OPM) gives a company a clear picture of where they are presently relative to
where they desire to be.
The focus of this paper will be on AirAsia. Created since 2001, the company has been
operating based on the mission “to allow everyone to fly”. Since then, the company has been
able to deliver world class services at low fare to over 500 million guests across the Asia
Pacific region, demonstrating that offering low cost doesn’t imply that the company will have
to reduce quality and air travel is something that shouldn’t be costly (AirAsia, n.d).
The influence that organizational performance has been having on companies (Folan and
Browne, 2005) has emerged as an important and interesting feature of empirical research
done in this area (Dess and Robinson, 1984; Garengo et al., 2005). In a bid to offer further
proof of this interest, it was stated by Neely (1999) that 3,615 publications were made
between 1994 and 1996 on this topic alone.
In view of this interest, this research is designed to analyze the present performance systems
of organizational performance management (OPM) in AirAsia, highlighting potential issues
with it and making necessary recommendations to that effect. Thus, this paper is divided into
three sections. The first section is the introduction and it sheds light on the concept of
organizational performance management (OPM) while also offering an introduction on the
company to be reviewed.
Effectiveness of Airasia’s Performance
Measurement System
We could see that this system used by AirAsia is successful as they have been doing really
well and improving since 2001 from the first airline in the world to introduce mobile
booking, to being a publicly listed company on the Malaysia Stocks Exchange (Bursa
Malaysia), after having on 22 November 2004. In line with its growth and expansion plans,
AirAsia has secured a 175 aircraft commitment with Airbus for its A320s. The 175 aircraft
order will place AirAsia as the single largest customer for the aircraft in Asia-Pacific, and
potentially one of the largest airline fleets in the region.
On 23 of March 2006, AirAsia successfully moved its operations to the new Low Cost
Carrier Terminal (LCCT). This is a major milestone as it is the first dedicated terminal for
low cost carrier operations in the world. Besides that, they have achieved many more heights
even in the past 2 years. AirAsia is focused on its performance measurement system and
makes sure that whatever they do are in line with the system and try as hard to meet its
benchmark.

For example, to ensure the safety of guests and employees, the "List of Checks for Airbus
A320" is created.

These safety procedures include strict aircraft maintenance, constant updating and training of
technicians and flight crew. Once any problems occur during this checklist, immediate action
will be taken, making sure it is safe and no problems will occur. Because if the safety is
threatened, it will influence the investors, potential customers and rest of the stakeholders to
lose confidence in AirAsia, making it hard for AirAsia to achieve their vision.

With all these achievements, awards and significant milestones in just 6 years, it is obvious to
see that the performance measurement system that AirAsia is using is effective and efficient.
This system set a very good benchmark to all the key elements in helping AirAsia achieve its
vision and goals. By following the system, AirAsia gives priority on areas like cost
efficiency, branding, product development, growth, human capital, safety of guest and
employee. The performance measurement system applied to identify prominent areas that
will affect its business and lead it towards its goal and vision.
Analysis of existing organizational
performance management systems in
AirAsia
Based on the discussions in the introduction, this section will analyze organizational
performance management systems in the company. Discussions on this are presented below.
The existing views on performance management consider it to be the holistic framework
which connected the formulation of strategy, evaluation and implementation in the structure,
culture, operating systems, and human resources practices of a company (Adler, 2011). It is
the new term that is used to take a broader view on the management control systems of a
company.
The implementation of performance management strategy in AirAsia is shaped by a number
of unique business activities, and processes and systems geared towards managing the
company’s performance. The most prominent of this strategy is how the company treats its
employees, its cultures, and the manner employed by the company in branding and marketing
its products to the customers. A discussion of each of these strategies is presented below.
The first is human resources, and AirAsia is a company that has a genuine understanding of
its human resources. The company recognizes the people what the major resources required
for the company to be successful. While the company is a low cost carrier, it still puts in
necessary efforts to make sure that its employees are highly satisfied with high morale. This
is based on their long standing philosophy of attracting the best personnel, according to
necessary training, and retaining them (AirAsia, 2010b). in order to help the company in
attaining this philosophy, it made the right move by creating a Corporate Culture Department
in 2004. The belief in AirAsia is that every aspect of its business model should be made
simple in order to ensure that its entire stakeholders understand their vision, philosophy and
objectives (AirAsia, 2010b).
A centrepiece in the human resource practice of the company is the promotion of employee
empowerment. The company is able to attain this through its open office layout and by
operating a flat hierarchy and the reason is to make sure that employee empowerment is
enhanced with cultural or social barriers reduced (Ahmed, 2010). In their system, the idea
that is proposed by any person in the company can be implemented, with staff encouraged to
adopt face-to-face meetings, and all their managers have tweets and blogs used for sharing
their overall experience in the company. All members of the AirAsia family address each
other by their first-name, with the senior management commonly dressing down in order to
reduce the perceived power of distance between them and the other employees in the
company (AirAsia, 2010c).
AirAsia’s culture is the second pillar that underpins the company’s unique strategy. The main
features of this culture include innovation, audacious sense of fund, openness, and
youthfulness, as well as the attitude of never-say-die (Ahmad, 2010). On this ground, this
culture is supported and conditioned by the commitment of the airline to simplify its work
structure, make the performance management practices transparent, and ensure that the
employees are empowered.
The creation and shaping of the company’s culture is aided by the Chief Executive Officer
(CEO), Tony Fernandes. There is this inherent belief in him as a leader that the vision of the
airline should be made concise and clear, its work practices should be streamlined and
simplified, and that the employees should be respected and valued (AirAsia, 2010c).
Therefore, there is a strong demand for transparency and encouragement of loyalty in the
company. On the same note, the CEO is always willing to make himself accessible to the
media and the investment community (Airlinetrends, 2012).
The third pillar that is used by the company to stand its unique strategy is featured in the
manner in which AirAsia is branded and marketed to the public. This is in line with the
Company’s “fun and trendy image”, and AirAsia leverages the internet as a tool that is used
for further development and communication of its brand. Just like the majority of the
companies in this 21st century, AirAsia has an official website and maintains numerous social
media platforms, where it reaches to its customers on a 24/7 basis. When compared with
some of its counterparts, it is clear that the company embraces the use of social networking
tools the most, as its pages are frequently updated, sometimes in the middle of the night.
There is another testament to the hip communication style that the company adopts, with the
company being considered as the world’s best airline because it replies to its tweets, offering
responses to over 40% of the tweets that it receives.
When it comes to brand communication, the central aim of the airline is to ensure that the
widest level of publicity is attracted, making it possible to maximize the awareness of its
brands from all over the world (Lim et al., 2009). There are three global sports icons being
sponsored by the company as: Manchester United, Queens Park Rangers, and William’s
Formula 1 racing team. Due to this strong sponsorship program, the company has its brand
name visually displayed for millions of viewers across the world. There are different kinds of
generous and philanthropic acts that the company has embarked on in recent years, with the
result being AirAsia coined as the “people’s airline”. For instance, the 2010 record has it that
$128 million was raised by the company for UNICEF; as an addition, the company created
the “Donate loose change campaign” which is used for providing help to those having heart
issues, and is also renowned for its campaigns for free-seats, as it over 1 million free seats on
flights throughout its wide network (AirAsia, 2010b). Ultimately, the company has ended up
setting the benchmark for corporate social responsibility high in both the aviation industry
and across other industries.
As a summary, to ensure that AirAsia is able to rubber stamp its authority as the “people’s
airline”, sustainable competitive edge in the company is developed through the combination
of LCS operational practices (like high utilization of aircrafts, standardized fleet, easier self
check-in services, and so on) and organizational performance management processes that
influence human resources practices centred on the employees, an organizational culture that
is supportive, and a consistent and clear communication of its brand to general public.
The likely future challenge that the company will face will come in the form of having to
meet the demands of the consumer by combining the characteristics of LCS and FSC models,
and this is being referred to as “the new world” carrier by experts in the industry. The
prediction is that against the present two models being employed in the industry as LCS and
FSC, airlines will not need to understand ways to combine the elements of cost leadership
and differentiation together (Dostaler and Flouris, 2004).
A primary example was offered by Cooper (1995), who made use of the automobile industry
by recounting on the collapse of the survival zone of the auto manufactures that occurred in
the mid-1980s. This description placed emphasis on the fact that in the 1960s, the auto
manufacturers were capable of choosing from a variety of unique strategies, and their
strategies represented different trade-offs between the quality of products offered and the cost
of such products. As the mid-1980s approaches, there was a change in the industry because
the viable competitive space started to collapse, which made it impossible for the companies
to choose from different strategies are they are now forced to pursue a single strategy in the
form of head-to-head competition (and the researcher termed this as “confrontation
strategy”). The impact of confrontation strategy is that it makes it impossible for one to create
tradeoffs between the quality of products and cost of the said product. Instead, it brings about
a high minimum threshold for the company which covers both low cost and high quality. As
such, when companies are not able to meet the demands of the customers based on the
minimum threshold, they end up becoming uncompetitive and losing market share.
Clearly, the airline industry is starting to show signs of survival-zone collapse. This is
because air travel is now an established service industry and there is now an increased
reference to this industry as commodity services by experts (Lawson, 2005). The
competition in the industry is now being considered as very high with the experts now
arguing that deregulation and the advent of the LCS competition and this competition is now
even hyper in some regions (Adler, 2011). On the same note, airline passengers are now
wielding substantial amounts of power. This is based on the notion that passengers commonly
make use of the internet when searching for the least possible fares, and the impact is that it
has made revenue management, capacity management, and operational cost management
crucial (Rouse et al., 2010).
Conclusion:
From the discussions above, it is now evidenced that organizational performance
management (OPM) is an important tool in the business environment of today. This is
because; the business setting is now highly competitive and innovative, making it much
easier for companies to imitate each other in all senses. Therefore, what would represent the
difference between the sustainable and dying firms in the future is their ability to manage
their performance. From the case of AirAsia, it is also demonstrated that even when a
company seems to have everything sorted out, the company still needs to forecast the
potential environment in the future and start positioning itself for such changes. This is the
reason why it was recommended that while it is clear that AirAsia has implemented a number
of measures to ensure it can sustain its position in the future.