PRESTIGE INSTITUTE OF MGMT.

& RESEARCH
Case Study on HR FOCUS: HRM Problems encountered by AIR INDIA Submitted by SUMIT ARYA & SEEMA RAI

BACKGROUND NOTE

-Indian Airlines (IA) Indias national carrier is a perfect example of a monopoly gone with the absolute power it had over the market. IA was formed in May 1953 with the nationalization of the airlines industry through the Air Corporations Act. IA and its subsidiary, provided domestic as well as international air services -Corporation is organized with: The Board of directors is constituted once in two years by the govt. it consists of Chairman and managing director and ten directors.

- Had Various Departments and different regions.

1.Manpower planning: Air India is having over staffing problem. They havem18000 employees for handling 26 aircrafts only.

2.Resistance to contracting of jobs : The unions were opposing for giving contracts to outside agencies for jobs. This affected the organisational manpower costs.

3.Wage Determination: No proper method for the distribution of wages was adopted by Air India. Employees were paid wages as they demanded.

4.Promotion by Seniority: Seniority was the only criteria for getting promoted. Meritorious and deserving employees rarely got any chance of getting promoted or rewarded. 5.Strikes: The unions were going on strikes regularly for making their demands accepted. This affected the working of the airlines, leading to losses .

MAJOR PROBLEMS IN THE CASE

Continual losses about the Personality of Air India, frequent human resource problems and gross mismanagement were just some of the few problems plagued the company.

Frequent strikes by IA pilots reflected the adamant attitude of the pilots resulting in increased public resentment towards the airline. Amidst strong opposition by the employees, This shows how poor management, especially in the human resources area,

 Their were lack of understanding between both levels. Talent were not getting proper appreciations.

Not having proper structure of rewarding and promoting dedicated employees.

Lack of Functional Flexibility. AI is 3 times less efficient in compare with the Lufthansas.

Suggestion And Solutions

They Should Restructure strategy of rewarding and promoting their Employees and implement all these strategies after proper findings, where ever essential. Should focus on more Recruiting peoples, so that proper work might be maintained. Functional Flexibility should be their. The night shifts responsibilities should be distributed among the seniors.

 They should think about giving jobs to outsiders. Promotion Should be given on the basis of their caliber. They should go with some appraisals of employees and make some efforts to know their behavioral aspects and modify that.

Thanks