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Indian Airlines & its human
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HUMAN RESOURCE MANAGEMENT ASSIGNMENT-2
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Sanj Sanjay ay Nagp Nagpal al is a new recruit recruit from a reputed reputed managemen managementt insti
recruited as a sales trainee in a sales office of a large computer hardware located in Chennai. •
Raghvan is the zone sales manager responsible for overseeing the wo sales officer, field executives and trainee salesmen numbering over 50 of areas namely Chennai, Bangalore, and Trivandrum.
•
The sales growth of the products in his area was highly satisfactory owin the the deve develo lopm pmen enta tall initi initiat ativ ives es take taken n by resp respec ecti tive ve Stat State e Gove Govern rnme me spreading computer education.
•
Raghvan Raghvan had collected collected several several sales reports, catalogues and pamph
detailing the types of office equipment sold by the company for Sanj for Sanj reference. •
After short chat with Sanjay, Raghvan assisted him to his assigned desk provided him with the material collected.
•
Thereafter Raghvan excused himself and himself and did not return. return.
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Answer: •
The traini training ng method method adopt adopted ed by Raghva Raghvan n is not not apt apt for a new tra employee like Sanjay.
•
Even Even thou though gh from from a reputed reputed management management institute institute,, Sanja Sanjay’ y’s s sk knowledge are limited to his learning in the institute.
•
The The mate materi rial al coll collec ecte ted d in rela relatio tion n to the the prod produc ucts ts of the the comp compan an
provides an insight insight as to what the company sells and not what Sanj desired to perform as a part of his job. job. •
This thus justifies that the training programme followed by Raghvan doe
suffice for imbibing the required job instructions required for performing job. •
This This type type of trai traini ning ng may in gene genera rall be of no benefi benefitt to both both San perf perfor orma manc nce e and and Comp Compan any’ y’s s prod produc uctiv tivity ity and and also also wast waste e of pr resource and time.
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Answer: •
The factors that need to be kept in mind while suggesting an apt sales trai programme would be:
•
•
Sanjay being a newly recruited trainee. trai nee.
•
The nature of the job (sales).
•
The level of performance desired.
•
Awareness about how to do the job.
Identifying the Trainee: Trainee: - In this case Sanjay being a new recruit, he mus given an entry-level training.
•
Identifying the Trainers: Trainers: - It would be essentially suitable that training m be imparted by immediate experienced supervisor of the trainee.
•
Method and Technique of Training: Training: - Training may be imparted by mean
on –the job methods as Sanjay is from a management college of good re where he has already learnt a lot via off- the-job techniques. •
Level of learning: learning: - As it is an entry level training more emphasis mus
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Conduct of training: training: - Suitably the training programme should be on the
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Answer: •
The method suitable for training would be On-the-Job Training (OJT). (OJT).
•
In this this metho method d the traine trainee e would would receiv receive e firsth firsthan and d exper experien ience ce of the conditions.
•
This This metho method d is econom economica icall since since no additi additiona onall perso personne nnell or facilit facilities ies required.
•
The trainee learns on the actual equipment in use and in the true environm of his job.
•
The trainee also learns by day-day observation the applications of the ru regulation and procedures.
•
It is also appropriate for teaching the skills and knowledge which ca acquired in short term.
•
Since the nature of the job is of sales, hence hands on experience is a mus gaining experience of the job.
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This way the trainee will build up his experiences and learn the dec
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Rajat Sharma has been employed for six for six months in the accounts sectio a large manufacturing company in Faridabad.
•
A formal investigation to monitor and monitor and determine the contributions of
employee in the accounts section and check whether they meet standard •
After the investigation it was found that all employees in the accounts se were meeting the targets that were set.
•
Rajat, Rajat, an empl employ oyee ee in the the acco accoun untt sect sectio ion n was was an exce except ptio ion n performance displayed by his colleagues. colleagues .
•
Alon Along g with with numer numerou ous s errors errors,, Raja Rajat’ t’s s work work is char charac acte teri riz zed by performance; performance; often he does 20 percent less than the other clerks department.
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Answer: •
Yes, the cause of the poor performance can be well determine determined d
whether, it is because of poor of poor training or other causes such as unconge work place, low wages or low motivation. •
To check whether the poor performance is attributed to poor training reports of his performance/learning during the training must be checked
•
It is to be inspected and identify the areas where he had not performed or did or did not show good progress in learning,
•
Then these identified areas must be closely closely supervise supervised d when the jo performed by Rajat.
•
Mistakes encountered must be closely examined and brought to his n along with the corrections that are required.
•
He must also be humbly prompted to review his own work to find ou mist mistak akes es in orde orderr to make make him him realis realise e his mistak mistakes es and and prov prov opportunity for self–correction for self–correction..
•
He must be properly supervised for 2-3 months so to bring about a cha
performance. Master yourinsemester with Scribd Read Free Foron 30this Days Sign up to vote title Parallel investigations must also be done to check other than trai & The New York Times Useful factors Not useful •
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Q2. If you find Rajat has been inadequately trained, how do you go ab introducing a remedial training programme? Answer: •
Firstly, it is to be checked as to what type of training Rajat had been throu the organisation.
•
Then Then the the reco record rds s of the the perfo perform rman ance ce/l /lea earn rnin ing g in the the train trainin ing g are are investigated in order to find the “weak” areas.
•
Secondly, an analysis is also to be done on his colleagues who had rece
same training as him and determine as to how they are coping and perform with the training provided. •
Investigation into the training records can also help in determining the gap the training that may have lead to the present problems
•
An appropriate plan of action or training has to be in place in order to fi gaps identified.
•
The remedial training should basically focus on the gaps observed in earlier training and also keeping the focus on the skills and abilities that prime-importance in meeting the set-standards.
•
Remedi Remedial al traini training ng shoul should d be oriente oriented d in a manne mannerr such such that that Rajat Rajat receive Incentives /awards for his improvement in his work, thus acting
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Answer : •
As Rajat has been working in the company for the last six months he m have gained some necessary experience and skills to perform his job.
•
He must have been provided with a initial training during the period o induction into the company.
•
The training would have helped him understand and better comprehend hi and make him understand as to be expected of him.
•
If in case due to some reason or the other if the training wasn’t successf
any gaps in learning may have been left in his training, it must be concentr upon to fill those required gaps by a remedial training. •
An assessment of his training report can well highlight the gaps.
•
The training programme should be designed in a manner such that it se the purpose of covering the gaps.
•
The training necessarily may not be of long period and can also be of on-s nature i.e. on the job.
•
This shall help him gain practical experience as he goes through the tra
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Answer •
Rajat must be closely supervised as it is necessary from his as well as
organisation’s point of view to achieve appropriate standards of performan •
Supe Superv rvis isio ion n is stric strictl tly y nece necess ssar ary y to chec check k the the nume numero rous us mist mistak akes es lessened productivity portrayed by Rajat.
•
To some extent supervision is good as it is a matter of improving the per holding back from doing so would only harm him.
•
The supervision can be done by providing personal attention and interac such such as, as, a one one to one one discu discuss ssio ion n of the the prob problem lems s face faced d and and sugg sugg appropriate solutions for them.
•
The The supe superv rvis ision ion must must be done done on the the lowe lowest st poss possib ible le tone tone/i /int nten ensi si
indirectly reviewing the daily work with least interventions possible and pro
feedbacks or recommend corrections by communicating informally/ perso rather than formal communication.
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Answer •
The magnitude of the problem is compelling and demands Rajat’s immed attention.
•
Rajat needs to be aware of the situation and the harm being caused, such he doesn esn’t perc perce eive ive
clos close e
supe superv rvis isio ion n
of his work work as
criti ritic cis
reprisal. •
Discussing the situation will make him aware of his current position, wh wrong with it and what remedial action is planned.
•
Rajat’s interest and willingness are prerequisites for active participation in
remedial measures and also to the success or positive outcome of the s taken. •
The The abov above e prepre-re requ quis isit ites es can can only only be stim stimul ulat ated ed by havi having ng a de
discussion on the concerning issue rather than keeping him unaware o situation and create a discomforting work environment.
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FLYING LOW •
Indian Indian Airlin Airlines es (IA) (IA) India’ India’s s nation national al carrie carrier r is a perf perfe ect exam xample monopoly gone berserk with the absolute power it had over the market.
•
Continual losses over the years, frequent human resource problems
gross gross misma mismanag nageme ement nt were were just just some some of the few proble problems ms plagued company. •
Frequent strikes by IA pilots reflected the adamant attitude of the p resulting in increased public resentment towards the airline.
•
Recurr Recurring ing human human resour resource ce proble problems ms were were attrib attribute uted d to its lack lack of manpower planning and underutilization of existing manpower .
•
The recruitment and creation of posts in IA was done without proper scie analysis of the manpower requirements of the organization.
•
Employee unions were rather infamous for resorting for resorting to industrial actio the slightest pretext. pretext.
•
The Government took various steps to turn around IA and initiated talk its disinvestment. disinvestment.
•
Amidst strong opposition by the employees, the disinvestment plans drag on endlessly well into mid 2001.
•
This shows how poor management, especially in the human resources a
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BACKGROUND NOTE •
IA was formed in May 1953 with the nationalization of the airlines indu through the Air Corporations Act.
•
IA and its subsidiary, Alliance Air, provided domestic air services.
•
IA’s network ranged from Kuwait in the west to Singapore in the east, cove 75 destinations (59 within India, 16 abroad).
•
In 1999, the company
•
In 1999, it had a fleet strength of 55 aircraft - 11 Airbus A300s, 30 Ai A320s, 11 Boeing B737s and 3 Dornier’s D0228.
•
In 1994, 1994, the Air Corpo Corporat ration ion Act was repeal repealed ed and air transp transport ort thrown open to private players.
•
Corporate houses entered the fray and IA saw a mass exodus of its pilo private airlines.
•
To coun counte terr incr increa easi sing ng comp compet etiti ition on IA laun launch ched ed a new image image bui advertisement campaign.
•
Improved its services by strictly adhering to flight schedules and prov better in-flight and ground services.
•
Laun Launch ched ed seve severa rall othe otherr new new airc aircra raft ft,, with with a new, new, youn younge ger, r, and and dynamic in flight crew. crew.
•
These initiatives were soon rewarded in form of 17% increase in passe revenues during the year 1994.
•
Competitors like Sahara and Jet Airways (Jet) provided better services network.
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•
By 1999 the losses touched Rs 7.5 bn.
•
In the next few years, IA’s market share, share, however continued to drop. drop.
•
In 1999, while IA’s market share was 47%, the share of private airl reached 53%.
•
Unnecessary interference by the Ministry of Civil Aviation was a major ca of concern for IA.
•
Interference ranged from deciding on the crew’s quality to major techn decisions in which the ministry did not even have the necessary expertise.
•
IA had to operate flights in the North-East at highly subsidized fares to ful fu
social objectives of connecting these regions with the rest of the cou These flights contributed to the IA’s losses over the years. •
The carrier’s balance sheet heavily skewed towards debt with an equity
of Rs 1.05 bn in 1999 as against long term loans of Rs 28 bn, heavy inte outflows of Rs 1.99 bn further increased the losses. •
IA was was foun found d grossly grossly deficient deficient in realist realistic ic assess assessmen mentt of the manp manp
needs, need-based recruitment, optimum personnel utilization and abolitio surplus and redundant posts.
‘FIGHTER’ PILOTS? •
IA’s eight unions were notorious for their defiant attitude and their us
unscrupulous methods to force the management to agree to all their dema •
Strikes, go-slow agitations and wage negotiations were common.
•
Each had a different reason, but every strike was about pressurizing IA
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This was strongly opposed by the board of directors, in view of the moun losses.
•
Mody also proposed to increase the age of retirement from 58 to 6 control the exodus of pilots.
•
Government however rejected his plans.
•
When Probir Sen (Sen) took over as chairman and managing directo bought bought the pilot pilot emolum emolument ents s on par with with emolum emolument ents s other other air thereby successfully controlling the exodus.
•
Sen Sen crea create ted d Alli Allian ance ce Air Air , a subs ubsidia idiary ry air airlin line
compa ompany ny wher
re-employed people were utilized. •
He was was also also inst instru rum menta entall in effe effect ctin ing g subs substa tant ntia iall wage wage hike hikes s fo employees.
•
The extra financial burden on the airline caused by these measures was by resorting to a 10% annual hike in fares.
•
Sen.’s efforts seemed to have positive effects with an improvement in air utilization figures.
•
IA also managed to cut losses and reported a Rs 140 million profit in 1997
•
But recessionary trends in the economy and its mounting wage bill pushe back into losses by 1999.
•
Sen and the entire board of directors were sacked by the government.
•
In 1990s, in yet another effort to appease its employees, IA introduced productivity-linked scheme.
•
Eventually, the PLI schemes raised an additional annual wage bill of Rs 1.
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It was alleged that IA employees did not work during normal office hours; way they could not work overtime and earn more money.
•
Though experts agreed that IA had to cut its operation costs. costs. To survive airline airline contin continued ued to add add to its its cost costs s, by payi paying ng more more mone money y employees. employees.
•
In 1998, IA tried to persuade employees to cut down on PLI and overtim help the airline weather a difficult period; however efforts failed.
•
Over the years, the number of employees at IA increased steadily.
•
IA had the maximum number of employees per aircraft. aircraft.
•
It was reported that the airline’s monthly wage bill was as high as of Rs million, which doubled in the next three years
•
The Brar Brar comm committ ittee ee attribu attributed ted this abnor abnormal mal increa increase se in staff staff cos
inefficient manpower planning, unproductive deployment of manpo and unwarranted increase in salaries and wages of the employees. employees. •
Analysts criticized the way posts were created in IA.
•
In 1999, Six new posts of directors were created of which three were cre by dividing functions of existing directors.
•
Thus, in place of 6 directors in departments’ prior April 1998, there we directors by 1999 overseeing the same functions.
•
Analysts pointed that in the case of cabin crew, 40 posts were introduce the Southern Region on an ad-hoc basis, pending the assessment of requirement by the Staff Assessment Committee.
•
Another problem was that no basic educational qualifications prescribe
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With each strike/go-slow strike/go-slow and subsequen subsequentt wage negotiations, negotiations, IA’s fina woes kept increasing.
•
Though at times the airline did put its foot down, down, by and large, it alw acceded to the demands for wage hikes and other perquisites.
TROUBLED SKIES •
Frequent agitations were not the only problem that IA faced in the are human resources.
•
There were issues that had been either neglected either neglected or mismanaged. mismanaged.
•
Various allowances such as out-of-pocket expenses, experience allowa
simulator allowances etc. etc. were paid to those who were not strictly eligi •
Excessive expenditure was incurred on benefits given to senior execut such such as rete retent ntio ion n of comp compan any y car, car, and and room room air-c air-con ondit ditio ione ners rs even even
retirement. All these problems had a negative impact on divestment proced •
Privatization was expected to give the IA management an opportunity to m the venture a commercially viable one.
•
Freed from its political and social obligations, the carrier was expected to b a much better position to handle its labour problems.
•
The biggest beneficiaries would be perhaps the passengers, who would better services from the airline.
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Answer •
The Air Corporation Act was repealed in the year 1994, thus throwing aviation market open to private players.
•
•
Corporate houses entered the fray to milk the large opportunity available.
As a result, Indian Airlines witnessed mass exodus of its pilots to pri airlines.
•
Indi Indian an Airl Airline ines s had had to face face the the heat heat of the the open open mark market et comp compet etit itors ors consumer expectations.
•
To gain gain compet competitiv itive e edge edge Indian Indian Airlin Airlines es launch launched ed a new image image bui advertisement campaign.
•
Emphasis was put upon the improvement in services both in-flight and ground and flights strictly adhering to schedules.
•
New flights with younger and dynamic crew were also launched to at consumers.
•
As a result of the above effort Indian Airlines could garner 17% increas
revenues during the same year. Master yourpassenger semester with Scribd Read Free Foron 30 Days Sign up to vote this title and netw Meanwhile the other competitive player provided better services & The New York Times Useful Not useful on offer for consumers. •
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Indian Airlines Performance. •
The airlines response to the emerging competitiveness in the open mark
1999 was eminent with the decision to undertake various initiatives to re its image. •
It was successful in its initiative and was even rewarded with increas revenues.
•
This however couldn’t be sustained by the airline and its revenues sta sliding downwards.
•
Unable Unable to match match the servic services es and sustai sustain n improv improveme ements nts the airlin airlin
criticised for its inefficiencies and excessive expenditure on human resou •
The organisation started to face frequent losses which amounted to Rs billion in 1999.
Failures in Competition •
The airline failed in its image rebuilding initiatives where in the contributing of the human resource spiralled out of tolerance levels.
•
The ineffic inefficien iencie cies s and expend expenditu itures res were were attribu attributed ted to the organi organi growing losses.
•
Staff cost increased alarmingly to Rs 5.9 bn during 1994-98 period.
•
Although many private companies were vanquished, those which went o eat up IA’s market share.
•
This was evident by the fact that in 1999 IA’s share was 47% where as th
airlines was of 53 %. Master yourprivate semester with Scribd Read Free Foron 30this Days Signunnecessary up to vote title These failures could also be attributed to the interference by & The New York Times Useful Not useful civil aviation ministry which neither had the necessary competence or expe •
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The fulfilment of social objective by the organisation of connecting the n
eastern regions with the rest of the country also contributed to the alre heaping losses. •
Heav Heavy y inte intere rest st outf outflo lows ws and and larg large e debt debts s can can be attr attrib ibut uted ed as a contributor to the huge losses.
•
Unorganised and and unplanned human resource resource were also responsible for ever increasing costs and inefficiencies.
•
Basic human resource management concepts were not followed that le unplanned manpower.
•
Inefficient Manpower planning can mainly be attributed as the prime reaso the presence of surplus and redundant posts.
•
Inefficient in manpower planning, rocketing cost of human resource, s
obligations, too much beaurocrat and political interference, huge interest f
and incapability of maintaining the improvements in combination fuelled failure of the airline in the open competitive market.
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It is true that IA’s human resources problems were due to its poor hu resource management policy.
•
Recurr Recurring ing human human resour resource ce proble problems ms were were attrib attribute uted d to its lack lack of manpower planning and underutilization of existing manpower.
•
Employee unions were infamous for resorting to unscrupulous methods on slightest pretext and arm-twisting tactics to get their demands accepted.
•
In turn, the management of the airline was more interested in making pe with the unions rather than looking at the company’s long-term benefits.
•
Mounting wage bills as a result of the many employee wage friendly sche depicted the simplistic approach of the management. management.
•
Impr Improp oper er moni monito tori ring ng by mana manage geme ment nt and and abus abuse e by empl employ oyee ees s Productivity linked incentive scheme reflects the inefficient functioning.
•
Uncontrolled increase in the number of employees and the number of su and redundant posts with maximum number of employees per aircraft.
•
This This abno abnorm rmal al incr increa ease se in staf stafff was was attr attrib ibut uted ed to inef ineffi fici cien entt manp manp
planning, unproductive deployment of manpower and unwarranted increas salaries and wages of the employees. •
The recrui recruitme tment nt and creati creation on of posts posts were were done done without without proper proper sci
Master youranalysis semester with Scribd of the manpower requirements of the Read Free Foron 30this Days Signorganization. up to vote title & The New York Times Useful Not useful In place of 6 directors in departments there were 9 directors. •
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In total there were 30 full time directors, who in turn had their retinue of pr
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A matriculat matriculate e also could be a manager, manager, by acquiring acquiring necessary necessary job-re qualifications & experience.
•
Illiterate employees drew salaries that were on par with senior civil servant
•
Retired employees were re-employed by the airline in an advisory capacity
•
Frequent Dissonance between the union and the management made a ho environment in the organisation.
•
Though, the airline at times held its ground, by and large, it acceded to demands for wage hikes and other perquisites.
•
Various allowances such as out-of-pocket expenses, experience allowa simulator allowances etc. were paid to those who were ineligible.
•
Excessive expenditure was incurred on benefits given to senior execu such such as rete retent ntio ion n of comp compan any y car, car, and and room room air-c air-con ondit ditio ione ners rs even even retirement.
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