CASE STUDY INDIAN AIRLINES HR PROBLEMS

Presented by Group 02 Ankit Chourdia Deepankar Dey Krati Sharma Kunal Seth Pardeep Dahiya Sharavan

CASE OVERVIEW

Case highlights the journey of Indian Airlines and its various challenges

Although having monopoly in the market Indian Airlines was unable to manage its human resource problems and suffered from lack of proper manpower planning
Employees were not supportive and frequently strikes occurred as a result of it public was not happy with the services

IA was formed in 1953 after nationalization of airline industry

In 1994 it was open for privatization and thereafter services improved but did not sustain for longer period

CASE OVERVIEW

There was also interference from government. Social objectives were also the reasons for loss

Fighter Pilots were having their own demands which also created chaos To tackle the problem AIR ALLIANCE was created

Continuously board members and directors were changed PLI scheme was introduced but that too didn't worked and day by day staff members misused it and therefore cost was increasing

ANALYSIS
PROBLEMS FACED BY INDIAN AIRLINES :-

Frequent strikes Public discomfort Lack of manpower planning and cold attitude towards solving HR problems No proper research on needs of manpower requirements No strict measures for undisciplined employees No coping up with the competition Improper flight schedules Government intervention No understanding for needs of pilots Mismanagement

QUESTIONS ARISING

Why the decision for disinvestment took 10 years? Why IA was not able to sustain in competition even after sufficient measures? Why even private players suffered loss? Was the attitude and demands of pilots wrong? Why interference from civil aviation ministry was major concern? Was ALLIANCE AIR really needed? Do sacking of entire board of directors help? Why was unnecessarily higher posts and increment in staff?

CONSEQUENCES

Hampering the image and goodwill of India as a whole across the globe Increase in internal politics and people taking unnecessary advantage Increase in costs

Employees overpowering the management

LACK OF MANPOWER PLANNING :

Impact of increase in staff cost on fare increases was substantial, being in the range of 9 to 36 per cent of the fare increases but Inefficient manpower planning coupled with abnormal increases in salaries and allowances accounted for the abnormal increases in staff costs

Absence of pragmatism characterized manpower planning of Indian Airlines Personnel Manual of IA did not prescribe any eligibility criteria prescribing higher educational/professional/technical qualification for promotion to higher managerial posts

LACK OF MANPOWER PLANNING

Whereas the number of employees per aircraft in Indian Airlines was the highest among the airlines, the productivity measured in terms of Available Tonne Kilometers per employee of IA was the lowest among all these airlines

There existed a curious combination of under utilization of manpower on the one hand and payment of heavy overtime allowance on the other hand through PLI

IMPACT DUE TO COMPETITION

Effect on revenue Increase in air traffic

impact on commercial earnings

REASONS WHY IA WAS NOT ABLE TO COPE WITH COMPETITION

Jet was offering a high quality of service and reliable, comfortable and efficient operations Jet Airways is achieving objectives by ensuring consistent profitability, achieving healthy, long-term returns for the investors and providing its employees with an environment for excellence and growth

POSSIBLE REASONS FOR UNDER PERFORMANCE: Fuel costs More players means more options therefore reduced price of tickets and burden on cost No support from employees Lack of belongingness towards the industry No proper treatment to employees Lack of planning and research Politics Global competition Improper Customer treatment

RECOMMENDATIONS

Merging of AIR INDIA and INDIAN AIRLINES Strict measures for employee discipline code Review on need of fulfilling social objective

Revision of manpower requirement

Grievance redressal cell for employees Feedback from travelers Privatization of INDIAN AIRLINES

RECOMMENDATIONS
IMPROVEMENT IN HR PLANNING AND SORTING OUT PROBLEMS: Re designing the work structure and implementation of work profile according to the productivity and output given by employees

Training Indian airlines employees on following industrial ethics Giving attention to their needs and thereafter taking action if necessary Pilots are very crucial to aviation industry so they should be entertained as they deserve a higher salary

thank you