Principles Of Information Systems Commerce Essay


The AirAsia is a type of business that provided flight service to everyone. Their vision is to be the largest low cost airline in Asia with poor connectivity and high fares. It is a profit organization in the flight service, so it is making profit with the intent. But, it is also the leading low-cost carrier in Malaysia. Besides, the business strategy of Air Asia's is centred on cost leadership and targets specific markets which are price sensitive customers who need the short haul flights. AirAsia makes the low fare model possible and create values through the implementation of the key strategies.

One of the strategies of they makes is safety first. The AirAsia has partnered with the world most renowned maintenance provides and complying with the world airline operations. So, they have to communicate with each other and maintain contact with each other in any time. Before the airplane is ready to flight, they also have to inform each other. In this case, the customer has a safety flight while the airplane flight.

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Next, AirAsia also have a strategy that is low fare and no frills in airline. They provided guests with the choice of customizing services without compromising on quality and services. No matter how, their services is still same and provided better service or more to their customer. Besides, there is also has the streamline operation to make sure that processes are as simple as possible. An example, the flight schedule is provided into the website, so that the guests are offered to check the schedule of flight in any time. Furthermore, the guests are also allowed to contact to the customer service through by the website to ask any question about flight.

The AirAsia also provided food services inside the airplane. While the airplane is flying, the air hostess will goes to their customer seat to ask them need any drink or food, so that they are preventing their guests be hungry and thirsty while inside the airplane. Besides of that, the guests are allowed to order food on the website and pay by credit card. Choose their favourite food and drink to having inside the airplane.

1.2 Organization Chart of AirAsia

CEO (Chief Executive Officer)

Operations and Planning Department

Secretary Department

Quality and Safety Department

Engineering Department

IT & e-Commerce Department

Legal & Services Department

Communication Department

Finance Department

Human Resources Department

1.3 Four Department of AirAsia

1.3.1 Flight Engineering Department

Flight Engineering Department's responsibilities are to monitoring the overall condition of an aircraft and repair the aircraft. This department will also check for the engine performance and record the cabin pressurization data.

Flight engineers are advance to management positions within a flight engineering department and advance to general airline management. The flight engineers will develop a sophisticated knowledge of airline technology and trends within the industry in order to advance. Beside, flight engineers must know everything about their specific job and the policies of their airline so that they easy to make decision. However, exceptional flight engineers are also research different plane issues and understand the engineering issues prevalent throughout the airline industry.

1.3.2 Quality and Safety Department

Quality and Safety Department's responsibilities are to make sure that safety and efficiency of the flight be done. This department will make sure every flight operate in time and check the safety of the airplane before the flight.

This department will take all the measures to ensure secure, safety and efficient flights. At the same time, this department is also continuously to improving their operational efficiency considering environmental protection, safety performance, and occupational health. Quality and Safety Department are improving their collaboration with their suppliers in respect of environmental sensitivity, work safety and ensure employee participation. Besides that, they also will ensure their guests in travel on time in every flight.

1.3.3 Finance Department

The finance department is responsible for all matters relating to Finance functions of the commission. Financial accounting is responsible for recording all business transactions and produces the accounts. Cost accounting is to calculate the cost of production and management accounting involves the accounting for decision-making purposes about planning activities, budgets, and capital investment. Besides that, the finance department involves in decision of methods of raising finance, cash flow, credit control, debt control, and expenditure. They also create a balance sheet and profit or loss account and manage the wages and raise of finance.

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In the finance department, the finance function is in charge of managing the capitalization of the firm. Besides, the finance function is also responsible for managing the firm's financial assets to maximize the return on these financial assets. The finance department is helping the company to make more assets for futures.

1.3.4 Human Resources Department

Human resources are the most important assets in a company. The human resources department in any companies is responsible for hiring, training, evaluating and compensating employees. Besides, they provided training and development programmes for employees to upgrade their skills on business processes. They also attract newly graduates to join their management in various departments.

2.1 Four of Information System

Human Resource Management Information Systems (HRMIS)

In the HRMIS, human resource planning is plan by an employee from the HRD management to resource ordains. They will consultation with the top management about the human resource planning. HRMIS are primarily based on the requirements of human resource planning. A typical information system has gained importance to as skill inventory information system and human resource assessment bank. Besides that, the objective of information system is to identify the talent resources of the organization and to optimize its effective use. The information system includes a computer simulation work force model, so that the simulation technique is used to evaluate alternative human resource plans such as new recruitment, transferring, retraining, project feasibility, and others are under to the various human resource management approaches. Next, the significant human resource information system is salary control information system. It ensures that the salary policies of the company are implemented in such a way that the salary costs remain within a limit of the human resource budget, and it is a product of number of employees to be recruited or maintained and the rates at which they are to be paid over a budget year. Besides, the salary control information system provides a system of salary audit, so that it ensures the salary levels are in direct correlation with the ever fluctuating market rates in the industry.

Human Resource Planning System (HRPS)

Human resource planning is governed by the demand and supply forecasting techniques to determine the current and the future human resource requirements of an organization. Human resource planning is the process by which a management determines how an organization should move from its current manpower position to its desire manpower position. Demand prediction is to calculate of future requirement in human resources in quality and number. Ordinary, the basic of the forecast is the annual budget that is translated into activity levels for various management functions. The most popular technique used in demand forecasting such as ratio analysis and work analysis. Work analysis start with the information on estimated saleable products or budgeted volumes of output for individual department. The information is drawn from the project budget or the annual corporate budget. On the basis of the above information the productive hours are compiled in a project. The productive hours generate information on estimate of direct labor requirement or number of permanent employees. Before that, activity level forecast usually used to determine the direct labor requirements. Ratio trend analysis is accomplished by employing past ratios. Factor also included in analysis considerations on changing method of management style and past experience. Further, benefit/cost analysis combined with ratio trend analysis yield the estimation of indirect labor requirement of non-permanent employees or consultants sourced from outside the organization. Supply forecasting estimates the number of people that from available from within and outside of organization taking into consideration estimated absenteeism, wastage of time or other internal and external environmental factors.

Customer Relationship Management (CRM)

CRM is the abbreviation for Customer Relationship Management. CRM entails all aspects of interaction that a company has with its customer, whether it is sales or service-related. In addition, CRM is often thought of as a business strategy that enables businesses to understand the customer. That is the first business strategy of CRM. The second business strategy of CRM is to retain customers through better customer experience. The third business strategy of CRM is to attract new customer. The fourth business strategy of CRM is to win new clients and contracts increase the profitably. The last business strategy of CRM is to contracts increase profitably and decrease customer costs.

Computer Reservation System (CRS)

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Computer reservation system that also called 'central reservation system' is used to store and get customer's information and conduct business transactions related to air travel business.

2.2 Detail of Information Systems

Human Resource Management Information Systems (HRMIS)

The scope of the HR management includes work design, performance analysis, recruiting, reward and work evaluation, motivation plan, salary structure design, employees' skill analysis and systematic training. The work design includes decisions on the content of a particular job in an organization in terms of techniques, systems and procedures.  There need to maintain data on particulars of the jobs, duties, responsibilities and interrelationships of the tasks force and the skills. In other, the salary control ratio suggested how far of the average salary for the grade in an organization is varies from the industry average may be calculated. For example, if 'Average of all salaries in a grade' divided to 'Average salary of the industry for the same grade' the answer is equal to 1, then the distribution of the salary may be considered on target. Otherwise, if the ratio is less than or greater than 1, then it such case ordains a proper study to justify or correct such variation.

Function of Human Resource Planning System

Function is an important of human resource planning system in a company. In order for a company to make proper use of its resource, there needs to be a plan in place. By not having proper human resources planning in place, a company will lose money because of an under-qualified staff or an inappropriate staffing amount, according to the staffing experts at the Accel Team Development website. By understanding the functions of human resource planning, you can better appreciate its impact on your company's success. It has four types of functions in human resource planning such as staff levels, qualifications, budgets, recruitment. Staff levels is human resource professionals will gather all of the personnel projections from each of the department, then compare them to present staff levels and then design a plan to make sure that the company is adequately staffed for the coming years. Demand of a business can change quickly, so that the human resource group should review the staffing levels with departmental managers on no less than a quarterly basis to make sure that accelerated company growth has not affected the need for personnel. Qualification is a function of the human resources group in respect to qualified employees is two-fold proposition. It's make sure that there is always an updated file of resumes on hand of qualified individuals who already have been interviewed by human resource staff. Besides that, qualification function of the human resources group is to go over the growth patterns of the company with departmental managers to see what new qualifications should be part of future candidate searches. Budget that is a company stays profitable by working within its predetermined budget. When human resources personnel set out to fill job openings, they need to understand the departmental personnel budgets they are working with and stay within those numbers when conduct with candidates. This requires close work with executives and managers to make sure the company gets the talent it needs to move forward but without going over the prescribed annual budget. Recruitment is the resumes that human resources professionals use to keep candidates available for future staffing needs to come from permanent recruiting efforts done by the human resources group. The human resources professionals spend time at recruiting trade shows, visiting college campuses and getting involved in any other activity that will help them come into contact with talented candidates. A proactive recruiting effort is essential to the ongoing human resources planning success of any company.

Customer Relationship Management (CRM)

Customer Relationship Management (CRM) is the strongest and the most efficient approach in maintaining and creating relationship with customer. Definition of CRM, CRM provides the tools that enable a business and its employees to provide fast, convenient, dependable, and consistent service to its customers. Besides, CRM use a set of integrated applications to address all aspects of the customer relationship, including marketing, sales and service. Objective of CRM is learns about customers' needs and behaviours. Other than this is builds long-term and sustainable customer relationship by treating the customer as unique. Furthermore, it is manages all aspects of customer encounter. Finally, assists marketing managers in CRM product planning, pricing, and other product management decisions, advertising, sales promotion, and targeted marketing strategies, and market research and forecasting.

Benefit of using CRM that consists of helping an enterprise to enable its marketing department to identify and target their best customer, manage marketing campaigns and generate quality leads for the sales team. Besides, CRM also consists of assisting the organization to improve telesales, account, and sales management by optimizing information shared by multiple employees, and streamlining existing processes. In addition, it is also allowing the formation of individualised relationships with customers, with the aim of improving customer satisfaction and maximising profits identifying the most profitable customers and providing them the highest level of service. Finally, CRM also providing employees with the information and processes necessary to know their customers, so that understand and identify customer needs and effectively build relationships between the company.

Computer Reservation System (CRS)

With the existence of CRS, travel agencies and customer can make reservations easily and directly using their computer to book any airline without go to airports. At the same time, marketing department will not waste any staff in the airport for ticket reservation.

2.3 Suggestion to improve or add new function to the Information System

Improve service

In hiring employee part of AirAsia, I suggest they must improve their requirement while hiring an employee. AirAsia one of the business parts is taking about service. In the airplane, customer need a good service while they are in the airplane from where to where. Customer inside the airplane are resting or enjoying, they hoped they can get a good service at all. Once AirAsia employees are not servicing the customer, it will affect the AirAsia companies honorary. The customers will complaint to the companies. So, AirAsia must have a good service at all even at the airport or in the customer service while customers need help. It is related to the HR department while hiring employee. Once hired an employee are rude while servicing customers, the company honorary will be affect in this case. Besides that, HR department also must teach their employee skills how to serve a customer properly and how customer felt their service is good enough. They must have training from time to time. The training are compulsory to join even an employees are expert in servicing. In the final, while they are hiring employee, who meet the requirements and fulfill the HR department request just can hire to be employee.

Problem that cause and improve it

The problem that cause human resource planning are accuracy of forecasts, support of top management, resistance from employees, insufficient initial efforts and unbalanced approach. Accuracy of forecasts defined as actual sales compared to the forecast. It the forecast are not accurate, planning will not be accurate. Inaccuracy increases when departmental forecasts are merely prepared without critical review. So we need to accurate the forecasts that can improve our accurate of forecasts. Support of top management is requires full and wholehearted support from the top management. In the absence of this support and commitment, it would not be possible to ensure the necessary resources and cooperation for the success of the human resource planning. Besides, resistance from employees is employees and trade unions resist human resource planning. They feel that this planning increases their overall workload and regulates them through productivity bargaining. They also feel that it would lead to wide spread unemployment, especially of unskilled labor. Insufficient initial efforts also has problem in human resource planning because of successful human resource planning flourish slowly and gradually. Sometimes sophisticated technologies are forcefully introduced just because competitors have adopted them. These may not be successful unless matched with the need and environment of the particular enterprise. So, we need sell faster than other competitors because it can improve sales. Lastly, unbalanced approach is many human resource person gives more importance on the quantitative aspects of manpower to ensure that there is adequate flow of people in and out of the organization. They overlook the qualitative aspects like career development and planning, skill levels and morale. So, political theorists have long raved about the advantages of balanced government. It is always best to have one independent branch looking over the shoulder of the others. Balanced government helps prevent abuses.

Four ways to improve CRM

I have four ways to improve Customer Relationship Management (CRM). The first way to improve CRM are outsourced solution, this application service provider can provide web-based CRM solutions for your business. This approach is ideal if you need to implement a solution quickly and your company does not have the in-house skills necessary to tackle the job from scratch. Besides, it is also a good solution if you are already geared towards online e-commerce. The second way to improve CRM are off-the-shelf solutions, some software companies offer CRM applications that integrate with existing packages. Cut-down versions of such software may be suitable for smaller businesses. Therefore, this approach is generally the cheapest option as you are investing in standard software components. But, the downside is that the software may not always do precisely what you want and you may have to trade off functionality for convenience and price. The third way to improve CRM are custom software, for the ultimate in tailored CRM solutions, consultants and software engineers will customize or create a CRM system and integrate it with your existing software. Yet, this can be expensive and time consuming. If you choose this option, make sure you carefully specify exactly what you want. This will usually be the most expensive option and costs will vary depending on what your software designer quotes. The fourth way to improve CRM are managed solutions, a half-way house between custom and outsourced solutions, this involves renting a customized suite of CRM applications as a tailored package. This can be cost effective but it may mean that you have to compromise in terms of functionality.

Computer Reservation System (CRS)

This system should add a "special need" blank in the web to let the customer fill in their needs to ensure that all of our customer can take off the flight comfortably. For example, there are someone that need wheelchair and we don't have it on the spot. Then our reputation will drop and more. Therefore, we should more concern to case like this.

3.1 The Report of Human Resource Department

The function of the HR department is to ensures the Company are under consideration selects the most skillful and competent person from a sea of applicants at that time. This function can be involves that what the Company needs in evaluation of ability and competency of potential employees in relation. Staffing role of management are controlling the function, so if this function is performed well, then the organization will be increases value consequently being on the right pathway and to achieve its organizational and departmental goals and objectives. Effective recruitment can conduct through by the educational and psychological measurements. This task can be involves assessment of skills, abilities and character evaluation of applicants. If through by the psychometric evaluation to recruitment employees, it can be ensure that employees have the right attitude necessary to fit into the organization. The company is also can be through by interviews to recruit employees. Besides, the HR department can ask applicants questions to evaluate how their decision making abilities and how they would deal with certain situations while presenting with them. Another method is to written interviews where applicant answer questions addressing key issues in the organization. Through those methods, the HR department contributed towards organizational performance in the companies. Those functions will be useful for manager to recruitment employees, so that they will be hired highly capable of employees for the companies.

Besides, the function of the HR Department is using Human Resource Planning System to plan adequately for the whole organization's future that involves employees. It is important to ensure all employees under every department make profit and upgrade the organization value. This function of the department ensures that people in the organization to focus on their own work and have their specific direction. Organizations that make clear of their direction are usually effective and won't have problem with it. In this case, those department staff will be produce more effective result oriented rather than blindly done the job.HR Department also create work analysis and ratio analysis to forecast demand. With these of analysis, the HR Department can plan the budget for every department. They will check every department's report for every year budget used and make decision. If they overused the budget and the profit is lower than it used to be, then the budget will be cut.HR Department will usually approve budget for those department that will earn more profit every year to increase their organization revenue. In short, they will make a long term plan before they take the action.