1. Aims

The purpose of this study is to detect the organisation construction between Hong Kong Aircraft Engineering Company Limited – HAECO and China Aircraft Service – CASL. Discover and analyze the two organisations ‘ attack to human resource direction, motive, communicating, leading, larning and knowledge direction, information engineering and civilization and diverseness. In the study we make usage of the theories and patterns learnt from Management & A ; Organizational Behavior to do the analysis and demo how the apprehension of theory is relevant in pattern.

2. Business Background

2.1 HAECO – General Background

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The Hong Kong Aircraft Engineering Company Limited ( HAECO ) is a cardinal company of aircraft fix, care and inspection and repair services in Asia. It provides complete set of aeronautical technology services to operators and air hoses since 1950.

When the company has signed a 20-year franchise understanding with the Hong Kong Airport Authority, it was a new milepost and became the lone full services supplier of the new International Airport at Chek Lap Kok, Hong Kong.

HAECO is a keeping party in many aircraft technology and interrelated companies in assorted states, including Singapore and mainland China. HAECO over the old ages has expanded its concern of Hong Kong SAR into Mainland China with the company of Taikoo ( Xiamen ) Aircraft Engineering Co. Ltd. ( TAECO ) at Xiamen, Shandong and Fujian TAECO Aircraft Engineering Co. Ltd. ( STAECO ) at Shandong. Recently, in Sichuan, a joint venture “ Taikoo SIchuan Aircraft Engineering Services Co. Ltd. ” has been formed. Besides HAECO operates care services in Singapore – Singapore ( HAECO ) Pte. Ltd. ( SHAECO ) . In add-on, HAECO has set joint ventures with Original Equipment Manufacturers ( OEMs ) in supplying full attention services to its clients.

The Swire Group, together with Cathay Pacific Airways, provides direction support and holds the major involvements in HAECO.

HAECO what ‘s more owns 45 % portions of the ( HAESL ) , Hong Kong company Aero Engine Services Limited is a joint venture with Rolls-Royce plc and SIA Engineering of Singapore, chiefly supplying overhaul service of Rolls-Royce Trent 800, 700 & A ; 500 series and Rolls-Royce RB211 jet engines. 1

2.2 CASL – General Background

China Aircraft Services Limited ( CASL ) is a joint venture company between Hutchison Whampoa ( China ) Limited ( 20 % ) , China Airlines ( 20 % ) , United Airlines ( 20 % ) and China National Aviation Corporation ( Group ) Limited ( 40 % ) . CASL was founded in 1995 chiefly to supply the services of aircraft cabin cleansing, line care and land equipment back uping services at International Airport Hong Kong.

China Eastern Airlines, China Southern Airlines, Air China and Xiamen Airlines have representations in the company through CNACG ‘s 40 % shareholding ownership of CASL.

Despite of operating in Hong Kong, CASL and China Eastern Airlines founded a joint venture company – Shanghai Eastern Aircraft Maintenance Limited ( SEAM ) offering aircraft land equipment back uping services and line care at International Airport Shanghai Pudong since 2003.

With the gap of its aircraft care airdock at International Airport Hong Kong in May 2009, CASL is able to supply a superior degree of aircraft care services to widen their air hose clients in together with aircraft heavy care and line care.

Now CASL has more than 1000 staffs with widespread experiences and wide-ranging of abilities. The company is to the full pledged to supplying the best quality of services to their clients in concentrating on client attention, uninterrupted betterment and proficient development. 2

3. Organization Structure and Design

3.1 HAECO – Organization Structure and Design

HAECO Organization Chart 1

In the formal constellation of an organisation chart ( B. ) has to be divided between its members and diverse occupations interconnected to each other. The distribution of work and the combination of people should, whenever possible, be organized by mention to some general characteristic which forms a logical nexus among the activities involved. It is necessary to keep a sense of balance among an importance on capable affair or function at higher degrees of the organisation, and specialisation and concern for staff at the operational degree.

( B. ) Formal constellation of an organisation chart 3

With comparing the Formal constellation of an organisation chart, more or less HAECO organisation chart ( a. ) is the same with it. In division by service, the parts of diverse specializers are integrated into division for a complete rhythm of work. This signifier of combination is more common in the larger diversified organisations like HAECO and may be used as a manner of spliting sections into different subdivisions.

In HAECO line relationships, power flows vertically downward through the construction – the concatenation of authorization – for illustration, from the CEO to COO, manager to directors, subdivision caputs, supervisors and staffs. There is a direct relationship among each other which responsible to merely one individual. Line relationships are united with the departmental division of work and organisational control.

Line directors have the duty and authorization for all the activities and affairs within their ain section.

3.2 CASL – Organization Structure and Design

( c. ) CASL Organization Chart 2

( d. ) Flat hierarchal construction

The grouping of breadth of control and concatenation of bid determines the pyramid form of the organisation and whether the hierarchal construction is “ level ” ( d. ) or “ tall ” . Besides the pyramid represents the construction of authorization. Broader spans of organize and few degrees of authorization consequence in a level hierarchal construction ( d. ) , like CASL. In a flatter structures that will hold a lower managerial costs, good communications and a short length of the concatenation with fewer degrees among the top and the underside of the hierarchal pyramid. 4

Lateral relationships exist among persons in diverse subdivisions or sections, particularly on the same degree. These sidelong relationships are based on treatment and contact that is to keep synchronism and efficient organisational public presentation. 5

3.3 – Compare the Similarities and Differences of Organization Structure between HAECO & A ; CASL


With comparing the organisation construction between HAECO & A ; CASL. Generally, both companies apply the basic constellation of the formal organisation chart ( B. ) that I mention earlier. In division by service, the parts of diverse specializers ( selling, funding, production ) are integrated into division for a complete rhythm of work. This signifier of combination is a common in good developed organisation. In line relationships, both companies ‘ authorization flows vertically downward through the construction – the concatenation of authorization – for case, from the CEO to COO, manager to directors, subdivision caputs, supervisors and staffs. Their directors should hold the duty and authorization for all the activities and affairs within their ain section.


When comparing two companies, we know that HAECO is a “ elephantine ” aeronautical technology services company since 1950 with the supporting of Swire Group. On the other side, CASL is a comparatively “ little ” company since 1995. Most organisations needfully prosecute a grade of decentalisation originating from such characteristics as an addition in size, the geographical separation of diverse parts of the organisation, or the demand to widen activities or services to remote countries. This is the now state of affairs of HAECO Company. With the policy of decentalisation HAECO Company do the advantage of determination to be made closer to the operational degree of work.

With the “ little and level ” hierarchal construction company CASL, it makes the advantages of centralisation. It makes for easier co-ordination and disposal control ; and more of import is the easier execution of a common policy for the organisation as a whole.

4. Approachs to Management & A ; Organizational Behavior

4.1 – Motivation

4.1.1 – Motivation of HAECO

HAECO knows that the development of its staff is the cardinal point to the sustainable enlargement of its concern. HAECO places great foregrounding on rewarding, back uping and actuating staff to construct up their potencies. In add-on, it gives equal chances to all employees, offering them a competitory wages and benefit bundles. It tries to supply a good environment that promotes diverseness, precautions safety and wellness, and encourages an proper work-life balance and long-run calling growing.

By the construct of position F. W. Taylor believed that in economic demands motive ; peoples would be motivated by deriving the upper limit and possible wage through working in the most productive and efficient manner. Furthermore F. W. Taylor mentioned that, motive was a relatively straightforward issue – what the employees wanted from their employers more than anything else was high wage. 6, 7

( e. ) Maslow ‘s hierarchy of demands model7

In the theoretical account of Maslow ‘s hierarchy of demands ( e. ) ; when a lower “ demand ” has satisfied, it is no longer a strong incentive. The demands of the upper degree in the hierarchy go the motivation and demand satisfaction. Simply say people are merely motivated by unsated demands. 7

In HAECO non all the people followed the theoretical account of Maslow ‘s hierarchy of demands ( e. ) ;

These include the followers:

Staffs in the same degree of Maslow ‘s hierarchy, the factor of motive will non be the same. Staffs may establish satisfaction in many different ways, for case, their esteem demands.

From the position of Maslow, satisfaction is the chief motivational consequence of behaviour. However, occupation satisfaction may non a needfully lead to acquire better work public presentation.

4.1.2 – Motivation of CASL

( f. ) Herzberg ‘s two-factor theory 9

In CASL, Herzberg ‘s two-factor theory ( f. ) can be applied ; two diverse sets of factors impacting work and motive. This led to Herzberg ‘s two-factor theory of occupation satisfaction and motive. One set of factors if losing so do dissatisfaction. One set of factors are hygiene or care, they serve to dissatisfaction. Another set of factors, if present, function to actuate the human being to higher public presentation and attempt. These factors are interconnected to occupation content of work. They are growing factors or incentives. The strength of the factors will hold an consequence on the feelings of satisfaction ; no satisfaction, other than non dissatisfaction. 9

4.2 – Leadership

4.2.1 – Leadership of HAECO

HAECO emphasizes ends and aims, work undertaking and results and mobilizes people toward a vision. It concentrates on uninterrupted betterment and quality orientation and provides the best service to the clients. It is endeavoring to widen their vision by concentrating on single company on a stand-alone footing and developing the strengths and capablenesss of the single group companies to function the clients. It promotes teamwork and reactivity to client demands. Its employees are competent and driven to carry through the undertakings in manus, achieve a high degree of production and acquire consequences or net incomes. Self-interest of followings may be in companies.

HEACO pursues Transactional leading which is based on legitimate authorization within the bureaucratic construction of the organisation since it focuses on the elucidation of ends and aims, work undertaking and results. It creates a relationship of common dependance and an exchange procedure of: ‘I will give you this, if you do that ‘ .

4.2.2 – Leadership of CASL

CASL promotes invention to drive hereafter concern success as it offers alteration as an chance for a different concern and better services. Particularly when air hoses encounter the harsh concern environment, CASL as a service supplier understands merely advanced thoughts to make a new vision and better service pattern so as to equilibrate the involvements of all parties and serve the air hose most cost-efficient. Its nucleus values include Safety First, Positive Communication, Innovation, Resources Management, Improvement on Continuous Basis, Teamwork and Satisfaction of Customers.

CASL besides pursues Transactional leading with alteration component. It tends to be important leading. It mobilizes employees toward a vision. It works best when alterations require a new vision or when a clear way is required. For illustration, utilizing “ come with me ” to take employees. Employees are trained to be self-confidence, advanced and able to accommodate alterations.

4.3 – Learning & A ; Knowledge Management

4.3.1 – Learning & A ; Knowledge Management of HAECO

HAECO formed a Technical Training Department since 1957. It is a section that responsible for provided all proficient preparation and back uping demands within the Company. It besides gives services to the air hoses, concern spouses and other care organisations. It ever keeps the most updated criterions of preparation stuffs as approved by the air hose clients, regulative governments in the industry.

The range of the preparation includes basic licence and aircraft types developing which covering most of the Boeing and Airbus commercial aircraft types.

Training is a procedure of larning that means alteration of a comparatively lasting. Persons may be different because of some short-run factors for case intoxicant or fatigue.

( g. ) Theory of operant conditioning B. F. Skinner

Skinner made an experiment on animate beings that showed the effects of penalty and wages on animate beings larning. He proved a behavioural response would be learned as a wages or support was given and S & A ; R bonding would be broken with penalty.

In HAECO, it is a existent fact that staffs are willing to hold preparation because of wages such as a publicity. When a penalty came so S & A ; R bonding would be broken ; for case if a penalty like ‘increasing of work burden and without publicity or higher wage ‘ after preparation ; no 1 would wish to hold a preparation any more although many class are provided. 10

4.3.2 – Learning & A ; Knowledge Management of CASL

CASL provides diverse preparation to heighten and back up their staff both proficient and non proficient accomplishments. Supported by their ain preparation professionals, CASL besides ensures that the preparation is run intoing the demands of clients, air power regulative.

Some non proficient preparation such as human factors, squad edifice and concern preparation are provided for a long term development program.

As CASL was founded in 1995, comparison with HAECO in 1950, CASL is a brassy company in the field of industry. Their attack is going a learning organisation defined as a topographic point where company expands their capacity to organize the result they desire. The learning organisation ( CASL ) sounds ideal ; the image that is an organisation is open-ended and extremely flexible. It is able to transform itself continually and larn from experience besides ever gets ready to take the advantage by altering of external conditions.

4.4 – Human Resource Management

4.4.1 – Human Resource Management of HAECO

Endowment Development

HAECO put the speech pattern on staff ‘s enlisting with a diverse scope of specialised accomplishments and endowments. It operates diverse types of preparation strategies to develop staffs to be professionals or specializers in the aircraft care industry. It aims to assist staffs recognize their full potency ; besides develop their calling.

Base on the doctrine of human resource direction ( HRM ) ; the map of preparation is to develop accomplishments and cognition, besides to alter the attitudes. It is the most of import possible incentive. This may take to tonss of possible benefits for both organisation and persons ; for case preparation can increase self assurance, committedness and motive of staff. In add-on preparation can give a feeling of single accomplishment and satisfaction, besides widen chances for calling patterned advance. 11, 12

4.4.2 – Human Resource Management of CASL

After the gap of the new aircraft airdock in 2009 ; CASL has a great demand for professionals. Their Human Resource Management planned to enroll many proficient staffs and applied scientists to run into their operational demands. Besides CASL will set up a proficient preparation school, which developing 100 proficient staff each twelvemonth.

CASL, Chief Executive Officer of Zhang Qian Hua Fei said that an first-class experience staff in aircraft care industry is about 10 old ages to develop and preparation will assist to construct up the capacity of new staffs that is the company long-run key to future enlargement and success.

From the position point of HRM, developing ought to be viewed like an investing in staff. This is of import, peculiarly in clip with the fast alteration of technological, societal and structural alteration. Training besides requires the support of line directors, finance, resources, skilled staff, clip, and a supporting system. There has to be a existent committedness – from top of direction merely like the Chief Executive Officer of CASL has a ‘real committedness ‘ with their staff.

Training non to be think of an stray activity, segregated from day-to-day working.

4.5 – Culture & A ; Diversity

4.5.1 – Culture & A ; Diversity of HAECO

HAECO is a taking supplier of aeronautical technology company in Asia. The Company ‘s civilization is runing in a competitory environment, broad scope of care activities from cabin to proficient service and aircraft release. The company provides services for approximately 80 air hose clients and besides managing about 90,000 flight motions in a twelvemonth.

The HAECO group has employed over 12,000 staffs, of which 5,700 base in Hong Kong.

For Kandola and Fullerton define diverseness is a basic construct of pull offing work force of diverse population of people. Diversity consists of non-visible and seeable differences that will include age, sex, background, disablement, race, work manner and personality. All these differences will make an environment that is productive besides wherein everybody will experience valued, their endowments will to the full be utilised and therefore organisational ends are met. 13

The diverseness chart of HAECO group ( h. ) shows that how the concern diverseness it is.


The diverseness chart of HAECO group ( h. )

4.5.2 – Culture & A ; Diversity of CASL

CASL is a power cultural company that depends on a cardinal power with the beams of influence from cardinal throughout the organisation. About a power civilization frequently found in little organisations and relies on trust for its effectivity. Control is exercised from the one by the choice of cardinal persons such as CASL ‘s CEO. There are few processs and regulations besides small bureaucratism precisely the same with CASL company.

When speaking about diverseness it brings me to another word, difference. In CASL merely the same with HAECO, people is the most of import plus of company, they have different positions and positions ; conveying different behaviour to the workplace every bit good holding different imposts, traditions and aspirations. Differences are besides doing many challenging in both company.

4.6 – Information Technology

4.6.1 – Information Technology of HAECO

HAECO with a new web system H3C 10GE that aid to spread out its concern in Hong Kong.

Some background reappraisal, International Airport Hong Kong is one of the busiest airdromes around universe. More than 48 million riders traverse each twelvemonth, besides around approximately 800 aircrafts are set downing or take-off every twenty-four hours. The anchor of the IT communications is a information web rooted from a individual seller – H3C. It is a extremely developed 10 Gigabit Ethernet system. 14

The biggest challenge in the concern of aircraft care is finishing review and fix undertakings as fast as possible so as to allow the plane gets back into the air because aircrafts make money as they are in the air, hence air hoses keen to extinguish unneeded clip on land. For that ground HAECO uses information engineering to supervise, support, and speed up the procedure with no compromising safety or quality.

The importance of an effectual direction of technological alteration has been emphasized by recent developments in IT ; information engineering. The impact of IT ( such as H3C web system in HAECO ) demands latest forms of work organisation, peculiarly in the relation to administrative work processs. IT affects the construction and formation of work groups besides the nature of occupations separately.

4.6.2 – Information Technology of CASL

Although CASL do non hold the high tech web system like H3C in HAECO, it besides makes usage of engineering such as utilizing widespread computing machine system for all the admin work and informational transmittal. Procedures of the communicating linked to computing machine systems are able to convey information quickly and direct entree to international or other national offices. In add-on with the developments of IT systems there is a working atmosphere appeared in CASL that is a greater outlook of speedy response.

An extra point of position is that IT in CASL doubtless transforms the work nature significantly, staffs may work more than earlier, such as utilizing their ain place ‘s computing machine to entree company ‘s intranet to go on the incomplete occupations. However, if staffs are frequently work remotely ; there will raise a hazard of mentally sick and possible job under force per unit areas. 15

4.7 – Communication

4.7.1 – Communication of HAECO

HAECO consults staffs actively on a diverseness of issues to do certain that staffs commit to sharing their values of the Company. HAECO has three staff associations which represent staffs at different rating severally. Meetings with staffs ‘ representatives on a regular basis to guarantee that issues of common involvements or common concern of are addressed seasonably. On the other manus, HAECO have a bilingual quarterly internal diary, hot intelligence and newssheet for staff to widely read. All these things can assist the interaction among staffs of a group.

The degree of interface between staff of a squad or a group is influenced by the construction of communicating channels. Research by Bavelas and survey by another research worker such as Leavitt have resulted in a design of a series of webs ‘ communicating.

There are five types of webs ‘ communicating ( one. ) ; concatenation, circle, wheel, Y and all-channel. In HAECO, it seems to be a Y communicating web. A Y web might be suited for simple problem-solving undertakings that require small interaction between members. This web is more centralised with information flows wholly along a preset channel. The general staffs do non hold the chance of ‘say ‘ to the top. Like in HAECO the ‘central’person is the staffs ‘ representative which pass the messages as between. When the undertaking has an inordinate information burden or managing complex job so the web will take to inefficient and impregnation. 16, 17

( I. ) Communication webs

4.7.2 – Communication of CASL

CASL knows the success of the services is non merely based on package, hardware or constituents. It ‘s the people behind the services make all difference. CASL direction understands positive communicating that is the best manner to link their people and direction besides can increase their spirit and finally their service quality.

In CASL, it seems to be an all-channel communicating web. The all-channel or comcon web is a web that involves full engagement and treatment ; merely like CASL direction will ever do treatment with their staff. This web shows to a high degree of interaction among all the people so as to work out complex job. There is a reasonably high degree of satisfaction for staff. The comcon web may non perchance construct up under force per unit area ; in that instance it will either reform or disintegrate into a wheel web. 16, 17

5. Decision

The Hong Kong Aircraft Engineering Company Limited ( HAECO ) is a long historical company in aircraft technology field in Asia ; comparison with CASL, it is a new trade name company. They have both similarity and unsimilarity in organisations ‘ attack to motive, human resource direction, communicating, larning and knowledge direction, leading, information engineering and civilization and diverseness. In decision the study with the usage of theories and patterns learnt from Management & A ; Organizational Behavior to do the analysis and demo the apprehension of theory is relevant in pattern.

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