PROFESSIONAL ETHICS (OUMM3203)

1.0 INTRODUCTION

Efficiency management plays an important role in an organization. However, the

development and efficiency of management are not sufficient if no emphasis is placed
on positive and ethical values. Organizations will be at a disadvantage if a manager
does not practice good work values despite the fact that they are skilled in the
management process. Every manager needs to guide their employees to provide
excellent service with high commitment to improve the quality of work and company
performance.

Ethics is part of the philosophy of good living, good people, doing the right thing and
interacting with others. Ethics also discusses human behavior as good or bad as human
intellect can determine. The word ethics also comes from the Greek Greek meaning of
temperament. In Latin, ethics is used as a moral mores of different moral character. In
addition, ethics is also a "knowledge that describes what is good and what is wrong
and what is done by man, also shows a purpose for mankind to do it and shows the
direction to do what is required of man" (Ahmad Amin).

1.1 Company Background

On October 12, 1937, Malayan Airways Limited (MAL) was established in

Singapore by the Ocean Steamship Company, The Straits Steamship Company
and Imperial Airways to start air service connecting Penang with Singapore.
MAL began his first flight on April 2, 1947 from Singapore to Kuala Lumpur.
The name of Malayan Airways was then changed to Malaysian Airlines Limited
(MAL) after the Malaysian establishment in 1963. In 1966, the airline changed its
name to Malaysia-Singapore Airlines (MSA) after Singapore left Malaysia. MAS
flies to 34 domestic and six international destinations.

1.1.1 Recognition

MAS has gained worldwide recognition for its quality of service. MAS
has also won the Skytrax World Series of Crews award four times in
succession from 2001 to 2004. MAS has been awarded five-star airlines

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in addition to the World Class Economy Award (2010) and Asia's

Leading Airlines (2010, 2011) .

1.1.2 The Fall of MAS

MAS has faced many challenges since its inception in 1947, including six
consecutive quarterly losses since 2012. The year 2014 saw twin tragedies
following the disappearance of MH370 on March 8, 2014 and July 17,
2014, MH17 being shot down in eastern Ukraine. According to the Report,
MAS has been through the company's three restructuring plans since
2007 but all failed due to intense competition and high costs.

2.0 ISLAMIC PROBLEMS AS MANAGEMENT PROBLEMS

Ethical issues are the conflicts between economic performance and social
performance within the organization and it is also a management problem. An
appropriate balance needs to be established between the two. Homer (1991) says
that there are five characteristics of ethical problems in management and this
task I choose only three to describe. These are:

2.1 Long-term consequences

NUFAM President Ismail also criticized MAS's actions to suspend 5 cabin

crew, aged 50 because of "obesity". In addition, the dismissal of workers is
also a major problem for the elderly because of the difficulty in finding new
jobs based on the current economy as well as competition from local and
foreign workers.

According to Nik Nazmi Nik Ahmad, the Daily Rays editor states that over
the years MAS has signed one-sided contracts in favor of companies and
their crony partners, which has led to rising prices of goods and services
including MAS. Catering. This has dramatically increased operating costs.
As a result, MAS 'wealth was gradually taken away by this irresponsible
party.

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3.0 ETHICS ANALYSIS IN MANAGEMENT PROBLEMS

Ethical decisions are not as easy as choosing between "right" and "wrong." The
decisions made are complex because they need to strike a balance between
economic performance and social performance within an organization. To
address both, 3 methods of analysis were introduced.

3.1 Economic Analysis

Ethical issues from a microeconomic approach have had a profound impact

on retired MAS staff. It is worrying that workers are losing their jobs due to
a reduction in labor or the closure of factories. However, there is still a labor
market where workers can be re-employed provided they are willing to
accept their salaries under market conditions.

According to MAS 'current situation, 6000 MAS employees have been

terminated under the company's recovery plan and have been registered
with the Corporate Development Center (CDC). Human Resources Minister
Richard Riot Jaem said of the total, 81% opted for a new job while another
18% wanted to work on their own. About 60 local and international
companies are ready to provide employment and employment opportunities
to these former employees. CDC companies offer free jobs and training to
MAS employees who do not accept offers from Mas NewCo companies. 50%
of retired Mas staff are from MAS maintenance and engineering division.
The CDC company said the group was among the easiest to find new jobs as
it had offers from a number of leading companies, especially in the aviation
industry. The 11th Malaysia Plan (11MP) has created 330,000 job
opportunities in various positions, so there is no risk of rising unemployment
among the Malaysian community.

4.0 MANAGEMENT OF ETHICS ISSUES IN MANAGEMENT

Ethical issues are a lot of things happening in the work environment without realizing
it. While ethical issues can be clearly seen but there are ethical issues that are a secret

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to management. Some of the recommendations I can give to solve this ethical

problem.

4.1 Cost reduction

Employers should take reasonable steps to avoid termination as recommended in

the Code of Corporate Harmony, by conducting a freeze-up of new employee
exceptions in critical areas, limiting overtime, limiting day-to-day work. weekly
breaks and general holidays. Former Head of Economic Group and Senior
General Manager of RAM Holdings Berhad, Dr. Yeah Kim Leng said MAS could
certainly recover by taking drastic steps especially through cost reduction or
spending.

5.0 CONCLUSION

Overall, the ethical dilemma in managing the Malaysian Airlines System (MAS)
Maritime Company was the reduction or termination of the workforce of 6,000
employees in total. MAS management has made every effort to save and protect
the well-being of its staff, but as the situation escalates with increasing
speculation over the unfortunate tragedy of the MH370 and MH17 aircraft, the
company has been paralyzed. Day after day MAS suffered a severe loss and
almost collapsed. MAS 'largest shareholder, Khazanah Limited (69.4%) has
begun a new phase by taking over the MAS leadership. Change in management
began a new phase for MAS staff, as NewCo announced 12 MAS recovery plans.
The key points outlined are cost, operating structure and manpower based on
competitive benchmarks and industry norms.

Furthermore, Characteristics of ethical problems such as prolonged consequences

have a significant impact on employees as they lose their source of income, but
the Treasury is committed to ensuring that processes such as migration, migration
and segregation are carried out carefully. Various alternatives were also applied to
this ethical issue but did not meet its objectives as MAS management maintained
their decision to revitalize the country's icon. Personal implications have also
contributed to Mas's past failure, too many cronies are involved in MAS

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management. Ethical analysis from an economic standpoint that affects the

unemployed. Employees aged 40 to 50 are a bit difficult to find