Malaysia Airlines revamps its performance management system

Following the appointment of a new CEO, Malaysia Airlines (MAS) has announced initiatives to track and boost performance of employees.

In a quarterly progress update, the airline reported "sustained progress amidst a backdrop of external macro-economic fluctuations."

Group chief executive officer of Malaysia Airlines, Christoph Mueller said “We have seen a challenging quarter but I am pleased to see continued progress made in all key areas such as on-time performance and costs. Malaysia Airlines has been operating for six months now and although we have a long way to go and areas for improvement, we are making steady progress in the restructuring.”

“We are focused on building momentum with our restructuring in 2016. Diligent execution on efficiency and tighter cost controls has already produced results which have seen us emerging leaner and more focused. There is still plenty to be done but the group is working hard to ensure that Malaysia Airlines succeeds and prospers for the years to come,” added Mueller.

Part of these initiatives to boost profits involve strengthening the firm's talent pipeline and enhancing skills of employees.

MAS emphasised people development and succession planning remained an integral part for the organisation’s sustained success, remains a key focus in 2016.

To this end, the quarter saw the introduction of the revamped performance management system, which aims to boost productivity by providing clear targets as well as a clearer path for career progression.

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"The system will enable us to spot skills gaps and escalate retraining programmes," MAS stated.

To address skills gaps, the airline will also be exploring joint ventures with established international organisations to provide training and specific skillsets.

Whilst being beneficial for the airline, the firm added this venture is also very much in line with the Government’s Economic Transformation Programme.

"The airline has been working hard in closing the skills gap via the Malaysia Airlines Academy which will be based in KLIA, providing a centre of aviation skills for Malaysia. The newly revamped academy will ensure future generations of leaders for the airline will be groomed entirely from within," the report stated.

To this end, MAS confirmed it has successfully recruited 20 management trainees towards building a talent pipeline as well as growing the aviation skillsets in Malaysia.

The trainees will be assigned and rotated across the various divisions in Malaysia Airlines to ensure exposure across all functions of the organisation and to inspire passion for the industry.

"The quarter saw further strengthening of the leadership team with the announcement of a new Head of Revenue Management and Head of Engineering. The new team is an important strategy of having world class and diverse talent to reflect the company’s global business and operations," the report concluded.

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