*INTRAPRENURIAL COMPETENCY AMONG EXECUTIVE
AND SUPERVISORY LEVEL IN Malaysia Airlines Cargo Sdn Bhd
(MASkargo), MALAYSIA
Nor Aida Bt Abdul Rahman – [email protected]
Prof. Hj. Ahmad Zahir Hj. Mokhtar – [email protected]
Shahari bin Sulaiman – [email protected]
University Kuala Lumpur Malaysian Institute of Aviation Technology
(UniKL MIAT)
Lot 2891, Jalan Jenderam Hulu, Jenderam Hulu, Dengkil 43800 Selangor DE
Tel: (603) 8768 8487
Fax: (603) 8768 8485
ABSTRACT
Intrapreneurial is a topic with a high attraction equally to many executive and
managers in companies of any size nowadays. It is defined as entreprenurship within
existing organizations and became a subject of interest because of its effect on
organizational performance, innovation, revitalization and the creation of new
business activity. To ensure success in Its Endeavor, highly corporate organization
like MASkargo must be good at retaining their executive and supervisory level to
make them 100% understand the mission, vision, and goal of organization and also
understand their role as a worker and intrapreneur to make business or company
success and running in a right way. Intrapreneurial environments also promote
expansion and intrapreneurial competency for their employees. Intrapreneurial
employees are typically energetic, imaginative, creative, inventive and enthusiastic.
This paper aims at the importance of an intrapreneurial competency among executive
and supervisory level in MASkargo to make sure they work in right direction and
right way to make sure business ‘boom’ success. Sometimes they work and they do
mistake and this will effect to all lines in organization. However, by understand the
‘intrapreneurship’ and ‘intrapreneurial’ concept, they will have the ability to see the
business and react as they are the owner of the company. This paper will examine the
importance of fostering intrapreneurial competency among executive and supervisory
level to MASkargo growth and illustrate how to develop intrapreneurial culture within
large organizations.
Keywords: Intrapreneurial, competency, Intrapreneurship, Intrapreneur
_____________________________________________________________________
SYNOPSIS
The definition of an entrepreneur has evolved over time as the world’s economic
structure has changed and become more complex. Who is an entrepreneur? What is
entrepreneurship? What is entrepreneurial career path? These frequently asked
questions reflect the increased national and international interest in entrepreneurs by
individuals, university professor and students, government officials, organization
managers, and employees. The development of the theory of entrepreneurship
parallels to a great extent the development of the term itself. Entrepreneur is an
individual who takes risks and starts something new. Entrepreneurs also known as an
individual developing something unique. To an economist, an entrepreneur is one
who brings resources, labor, materials, and other assets into combination that make
their value greater than before and also who introduces changes, innovations and a
new order.
Entrepreneurship is the process of creating something new and assuming the risks and
rewards. The role of entrepreneurship in economic development involves more than
just increasing per capita output and income; it involves initiating and constituting
change in the structure of business and society. Intrapreneurship means
entrepreneurship within an existing organization and it’s become a subject of interest
because of its effect to the business activity and organizational performance.
Intrapreneurial culture is the environment of an entrepreneurial oriented organization.
Carrier (1996) views intrapreneurs as those who innovate on behalf of an existing
organization, whilst entrepreneurs are seen as the corporate equivalents of
entrepreneurs, who find opportunities for innovation.
Competency is more than just knowledge and skills. It involves the ability to meet
complex demands, by drawing on and mobilizing psychological resources (including
skills and attitudes) in a particular context. For example, the ability to communicate
effectively is a competency that may draw on an individual’s knowledge of language.
Employees need a wide range of competencies in order to face the complex
challenges of today’s world.
The Issues
As all known, MASkargo (Malaysian Airlines Cargo Sdn Bhd) is a cargo airline
based in Kuala Lumpur, Malaysia. As a wholly owned subsidiary of Malaysia
Airlines specializing in air cargo transportation worldwide including carriage of live
animals, MASkargo is committed to provide excellent service in air cargo
transportation by focusing on reliability, consistency and innovation aimed at
ensuring the highest of service to their valued customers. Based on IATA’s latest
forecast, based upon a comprehensive survey of the airline and freight industry, shows
that passenger and freight demand growth will continue to provide a positive boost to
airline and freight revenues over the five years to 2011. As a leading industry towards
making KLIA a transshipment hub, a strategic plan has been set up to make
MASkargo become a global gateway in the highly competitive air cargo business.
MASkargo had planned several strategic planning as follows.
1. To reduce Mishandling rate in
year 2008. From 0.06% to 0.05%
2. Cost Control. To focus on fuel,
block hours, productivity, big ticket
cost and yield maximization
3. Seeking continuous
improvement
4. Contributing to MAS
Business Turnaround Plan
The Business Turnaround Plan
COMMERCIAL
Vision : Going
Beyond Expectation
Flying to win
customers
FINANCE
Financing & aligning
the business on P & L
PEOPLE
Unleashing Talents
And Capabilities
STAKEHOLDERS
Mission : To be a
profitable airline
Winning
Coalitions
OPERATIONS
Mastering operational
excellence
STRATEGY: BUSINESS
TURNAROUND
- to achieve sustained
profitability by going beyond
expectation on 5 thrusts
In order to make sure all above plan can be successful achieved, the introduction of
Intrapreneurship concept and developing Intrapreneurial culture within MASkargo
staff is a important step. This is important to make sure all their staff especially
executive and supervisory level work in a right way to make all plans by the top
management above going smoothly. Not only top manager or board directors have to
work and act as an intrapreneur and have the intrapreneurial competency, but all
employees especially the executive and supervisory level have to act as an
intrapreneur. MASkargo must be good at retaining their executive and supervisory
level to make them 100% understand the mission, vision and goal of organization and
also understand their role as a worker and intrapreneur. With that, MASkargo should
have a platform and strategic action to make sure their executive and supervisory
level have the ability to see the business and react as they are the owner of
MASkargo. Sometimes they work hard and they do mistake, and this will effect to all
lines. So, in order to make sure the supervisor and executive level work in right
direction, the term of entrepreneurship, intrapreneurship, intrapreneurial and
competency are very important to them. By understand the word intrapreneurial
competency; they will definitely understand their role as a worker and intrapreneur to
make sure MASkargo success and running in a right way.
Vision and Mision Of MASkargo
To get the real picture of MASkargo, it is a good beginning to understand the vision
and mission of this air cargo organization.
The Vision
The vision of MASkargo is to be “Your Preferred Air Cargo Partner”. Each of these
key words needs to be translated into an action plan.
Preferred
To be a preferred air cargo partner means to be leading in air cargo business to
support the need of the specific industry in term of providing an excellent services
with very small mishandling rate. Mishandling here means shortlanded breakdown,
surplus breakdown, damaged breakdown and mixloaded transshipment. Therefore, all
effort should be channeled into providing the necessary resources, expertise, facilities
and capabilities towards supporting the future needs.
The Mission
To ensure timely and cost effective transport of cargo from the point of acceptance to
the point of delivery.
MASkargo mission again will require translation in order to enable action plan to be
developed. This phase will mean every MASkargo schedule must be on time and follow the
schedule. Any lateness or delay in schedule will affected cost of fuel.
THE IMPORTANCE OF DEVELOPING INTRAPRENEURIAL CULTURE
WITHIN THE LARGE ORGANIZATION: MASKARGO
Many organizations included MASkargo have placed greater importance on a service
oriented approach to their business activities. Customers are seen as both internal and
external and employees are expected to be positive, polite and professional.
Pinchot (1999) has noted that intrapreneurial activity increases the speed and cost
effectiveness of technology transfer from research and development to the
marketplace. To facilitate intrapreneurial development Pinchot also recommends
organizations institute a 15% rule whereby employees use 15% of their work time to
develop new ideas of their own choices. Choice is an important concept in
Intrapreneulism. It allows employees to choose what projects they work on.
Consequently, employees will find more creative ways to satisfy the needs of both
internal and external customers. An intrapreneurial employee is considered to be a
moderate risk taker who is frugal and flexible. They will be creative about their
pathway and willing to build a team of enthusiastic volunteers and a network of
sponsors (Kautz.J. 2003).To develop intrapreneurial culture within an organization the
following structures, sytems, features and functions should be in place (Ross S. 2003)
1. Organizational structure – flat, lean; work teams or natural units; formal
participative structure.
2. Job Design – self managing teams or individual enrichment
3. Information System – Open, decentralized; inclusive; uses participatively set
goals
4. Careers – multiple tracks; open posting; counseling
5. Selection – realistic job preview; team involvement; potential and social skills
considered important criteria.
6. Training – extensive; peer trainers, economic education, interpersonal skills,
technical skills
7. Rewards – all salaried; skill based pay; egalitarian prerequisites; flexible
benefits; gain sharing
8. Personnel Policies – employment stability; participatively determined
9. Physical Layout – designed around structure; safe, pleasant, emphasize values
symbolically”
CORPORATE VERSUS INTRAPRENEURIAL CULTURE
Business and sociological conditions have given rise to anew era in business; the era
of the entrepreneur. The positive media exposure and success of entreprneurs are
threatening to some established corporations as these smaller, aggressive,
entrepreneurially driven firms are developing more new products and becoming major
factors in select markets. Recognizing the results that occur when employees in other
large corporation catch the “entrepreneurial fever”, many companies are now
attempting to create the same spirit, culture, challenges and rewards of
entrepreneurship in their organizations. What are the differences between corporate
and entrepreneurial cultures? Among managers, entrepreneurs and intrapreneurs?
The typical corporate culture has a climate and a rewards system that favor
conservative decision making. Emphasis is on gathering large amounts of data as the
basis for a rational decision and then using the data to justify the decision should the
intended result not occur. Risky decisions are often postponed until enough hard facts
can be gathered or a consultant hired to “illuminate the unknown”. Frequently there
are so many sign-offs and approvals required for a large scale project that no
individual feels personally responsible.
The traditional corporate culture differs significantly from an intraprenurial culture.
The guiding directives in a traditional corporate culture are: Adhere to the instruction
given, do not make any mistakes, do not fail, do not take the initiative but wait for
instructions, stay within your turf, and protect your backside. This restrictive
environment is of course not conducive to creativity, flexibility, independence,
ownership or risk taking- the guiding principles of intrapreneurs. The goals of an
intrapreneurial culture are quite different; to develop visions, goals and action plans;
to be rewarded for actions taken; to suggest, try and experiment; to create and develop
regardless of the area; and to take responsibility and ownership.
There are also differences in the shared values and norms of the two cultures. The
traditional corporation is hierarchical in nature, with established procedures, reporting
systems, lines of authority and responsibility, instructions and control mechanism.
These support the present corporate culture and do not encourage new product,
service or venture creation. The culture of an intrapreneurial firm is in stark contrast
to this model. Instead of a hierarchical structure, an intraprenurial climate has a flat
organizational structure with networking, teamwork, sponsors and mentors
abounding. Close working relationships help establish an atmosphere of trust that
facilitates the accomplishment of visions and objectives. Tasks are viewed as fun
events, not chores, with participants gladly putting in the number of hours necessary
to get the job done. Instead of building barriers to protect turfs, individuals make
suggestions within and across functional areas and divisions, resulting in a cross
fertilization of ideas.
As would be expected, these two cultures produce different types of individuals and
management styles. A comparison of traditional managers and intrapreneurs reveal
several differences (See table 1 below). A traditional manager means managers in a
non intrapreneurial oriented organization. While traditional managers are motivated
primarily by promotion and typical corporate rewards, entrepreneurs and
intrapreneurs thrive on independence and the ability to create. The intrapreneurs
expect their performance to be suitably rewarded.
Figure 1 : Comparison of Intrapreneurs and Traditional Managers
Primary
Motives
Time
Orientat
ion
Activity
Risk
Status
Traditional Managers
Promotion and other traditional
corporate reward, such as office,
staff and power
Short term-meeting quotas and
budgets,
weekly,
monthly,
quarterly and the annual planning
horizon
Delegates and supervises more
than direct involvement
Careful
Concerned about status symbol
Between
entrepreneurial
and
traditional managers, depending on
urgency to meet self-imposed and
corporate timetable
Direct involvement more than
delegation
Moderate Risk taker
Not concerned about traditional
status
symbols-desires
independence
and Attempts to hide risky projects from
view until ready
Failure
Tries to avoid mistakes
and
surprises
mistakes
Decisions Usually agrees with those in upper
management positions
Who
Others
serves
Family
Family members worked for large
History organizations
Relations Hierarchy as basic relationship
hip with
others
Intrapreneurs
Independence and ability to
advance in the corporate rewards
Able to get others to agree to help
achieve dream
Self, customers and sponsors
Entrepreneurial small business,
professional or farm background.
Transactions within hierarchy
THE VALUE OF FOSTERING INTRAPRENEURIAL EMPLOYEES IN
MASkargo
Allowing Executive and Supervisory level to introduce and implement innovation
within an organization is a means of fostering company towards intrapreneurial and
economic growth. Large organization like MASkargo must identify who are their
intrapreneurial employees and how the company can encourage, shape and mold their
creativity to be a competent intrapreneur in MASkargo. By having competent
intrapreneurs in the organization will provide a fantastic boost to the company’s
bottom line. Not only do innovations add to company revenue stream, they also
increase motivation and empowerment among their intrapreneurial employees.
COMPETENT INTRAPRENEUR
Referring to Doug Ross (2003), intrapreneurs with the right competencies can drive
value creation. It is little wonder that organizations are now recognizing the
importance of taking a more rigorous approach to selecting and developing
intrapreneurial managers as they need to have competencies that typically reflect
those of high performers.
THE MODEL ON ESTABLISHING INTRAPRENEURSHIP IN MASkargo
An organization desiring to establish an intraprenurial environment must implement a
procedure for its creation. Although this can be done internally, frequently it is easier
to use someone outside to facilitate the process. This is particularly true when the
organization’s environment is very traditional and has a record of little change and
few new products being introduced. There are nine steps in the Model of Establishing
Intrapreneurship in MASkargo as follows:1.
Secure commitment to intrapreneurship in the
organization by top, upper and middle
management levels
2.
Ideas that top management are interested in
supporting should be identified along with risk
3.
Organization (MASkargo) needs to use
technology to make itself more flexible
4.
The organization (MASkargo) should be a group
of interested managers who will train employees
as well as share their experiences
5.
The organization (MASkargo) needs to develop
ways to get closer to its customer
6.
An organization that wants to become more
intrapreneurial must learn to be more productive
with fewer resources.
7.
The organization needs to establish a strong
support structure for intrapreneurship.
8.
Support must also involve tying the rewards to the
performance of the intraprenurial unit.
9.
Finally, the organization needs to implement an
evaluation system that allows successful
intraprenurial units.
Figure 2: Model on establishing Intrapreneurship
The first step in this process is to secure a commitment to intrapreneurship in the
organization by top, upper and middle management levels. Without top management
commitment, the organization will never be able to go through all the cultural changes
necessary for implementation. Once the top management of the organization has been
committed to intrapreneurship for a sufficient period of time, the concept is
introduced throughout the organization. This is accomplished most effectively
through seminars, where the aspects of intrapreneurship are introduced and strategies
are developed to transform the organizational culture into an intrapreneurial one.
General guidelines need to be established for intrapreneurial venture development.
Once the initial framework is established and the concept embraced, intrapreneurial
leaders need to be identified, selected and trained. This training needs to focus on
identifying viable opportunities and their markets.
Second, ideas areas that top management are interested in supporting should be
identified along with the amount of risk money that is available to develop the
concept further. Overall program expectations and the target results of each
intrapreneurial venture should be established. As much as possible, these should
specify the time frame, volume and profitability requirements for the new venture,
and the impact of the organization. Along with the intrapreneurial training, a mentor
systems need to be established. Without mentor, there is little hope that the culture of
the organization can be transformed into an intraprenurial one.
Third, a company needs to use technology to make itself more flexible. Technology
has been used successfully for the past decade by small companies that behave like
big ones.
Fourth, the organization should be a group of interested manager who will train
employees as well as share their experiences. The training sessions should be
conducted one day per month for a specified period of time.
Fifth, the organization needs to develop ways to get closer to its customer. This can
be done by tapping the database.
Sixth, an organization that wants to become more intrapreneurial must learn to be
more productive with fewer resources. This has already occurred in many companies
that have downsized. Not surprisingly, the span of control may become as high as 30
to 1 in divisions of such companies. The concept of “lean and mean” needs to exist if
intrapreneurship is to prevail.
Seventh, the organization needs to establish a strong support structure for
intrapreneurship. This is particularly important since intrapreneurship is usually a
secondary activity in the organization. Since intrapreneurial activities do not
immediately affect the bottom line, they can be easily overlooked and may receive
little funding and support. To be successful, these ventures require flexible, innovative
behavior, with the intrapreneurs having total authority over expenditures and access to
sufficient funds. When the intrapreneur has to justify expenses on a daily basis, it is
really not a new internal venture but merely an operational extension on the funding
source.
Eight, support must also involve tying the rewards to the performance of the
intrapreneurial unit. This encourages the team members to work harder and compete
more effectively since they will benefit directly from their efforts. Because the
intraprenurial venture is a part of the larger organization and not a totally independent
unit, the equity portion of the compensation is particularly difficult to handle.
Finally the organization needs to implement an evaluation system that allows
successful intrapreneurial units to expand and unsuccessful ones eliminated. The
organization can establish constraint to ensure that this expansion does not run
contrary to the corporate mission statement. Similarly, inefficient intrapreneurial
venture units should not be allowed to exist just because of vested interests.
FUTURE PLAN: TRAINING MASkargo INTRAPRENEUR
As the journey ahead is going to be arduous and challenging, it will require
unleashing the talent of all MAS and MASkargo staff and also will require a training
in intrapreneurship to adapt all staff with intraprenurial culture to transform
MASkargo staff with intraprenurial competency.
CONCLUSION
To make sure MASkargo success in its Endeavor, MASkargo have to decide to
commit their reputation and inspiration of its employees to the concept of
intrapreneurial and they will need to reinforce this desired culture with effective
measurement, competencies, and leadership to allow innovation to flourish.
Malaysian Airlines Cargo of tomorrow will be recognized as the world’s Five Star, air
cargo freighter with a competitive cost structure and will be renowned as one of the
best places to work in Malaysia, and a company that is a source of pride of its
employee. They can do this and they will.
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