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Staffing : HR challenges within the corporate Flight Department

Live Case:

We are excited to invite our members and their Human Resource and Recruiting partners to the PNBAA Fall general meeting and luncheon to be held on November 10th at the Museum of Flight from 11:00 to 1:00.  You will not want to miss Sheryl Barden of Aviation Personnel International and Craig Foster of Jet Professionals discuss critical staffing issues that often strain the relationship between the HR department and the flight department.  Is your flight department or company aware of the current pitfalls for using contract, part-time and temporary employees in the flight department? Learn more about the current exposure, safety, risk management and liability associated with the “elastic workforce.” Sheryl, Craig and attorney Katheryn Bradley of Lane Powell will help you put your newfound knowledge to work by hosting a question and answer session following the presentation.

Sheryl Barden is the President & CEO of Aviation Personnel International and a voice for the people behind the planes.  She is a leading authority on HR issues for flight departments and is a frequent speaker at industry events. Based in San Francisco, she’s an active member of the National Business Aviation Association, Flight Safety Foundation, Women in Corporate Aviation, The Society of Human Resource Management and the International Women’s Forum. She earned an MBA from the Masagung School of Business at the University of San Francisco and a B.S. in Management with an emphasis in Personnel Management from Pennsylvania State University.

Craig Foster has served as a Regional and National Sales Director at Jet Professionals since joining the company in 2005.  He has 11 years of experience providing part-time and full-time staffing solutions to corporations based in the United States, Europe, Middle East, and the Pacific Rim.  Previously, he worked for the engineering company CDI Corporation in recruiting, account management, and business development roles.  Craig began flying at age 13 in gliders, soloed at 14, and became a licensed pilot on his 16th birthday.  He holds an FAA private pilot’s certificate for gliders, single-engine aircraft, and is IFR certified.  He flies out of Heritage Field (KPTW) in Pottstown, Pennsylvania.  Craig earned his B.A. in Political Science from Hobart College and earned his Graduate Gemologist degree from the Gemological Institute of America.

Katheryn Bradley represents private and public employers in workplace disputes, and has successfully litigated and resolved claims for wrongful discharge, discrimination, and violations of leave and wage and hour laws. She has defended employers in individual and class action lawsuits in trial and appellate courts throughout the Pacific Northwest, including Washington and Alaska.  In addition to her extensive employment litigation experience, Katheryn devotes a substantial part of her practice to counseling managers and human resource professionals in organizations of all sizes.  She advises clients on best practices to manage leave and navigate through the interactive process to accommodate disabled employees. She helps employers avoid employment claims by preparing effective workplace policies and counseling them through the process of carrying out reductions in force, separations and terminations. Katheryn prepares executive employment agreements, effective covenants not to compete and other agreements to protect trade secrets and intellectual property. She works closely with business executives to enforce non-competition agreements and respond to cease and desist letters. Katheryn also provides interactive EEO training to managers. She is a frequent speaker at employment law seminars.

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HR challenges within the corporate Flight Department




Er Reema Chordiya [ BE, MBA ]  
Manager HR
www.AeroSoftCorp.com
www.AeroSoft.in
www.AeroSoft.co.in
www.AeroSoftseo.com
On Line Assistence    :
Gtalk                          :   Reemac.AeroSoft@gmail.com
Y! Messenger             :   Reema.AeroSoft@yahoo.com
Rediff Bol                    :   Reema.AeroSoft@rediffmail.com
MSN                           :   Reema.AeroSoft@hotmail.com

Crew Resource Development Strategy in SIA(Singapore International Airline)

Abstract

Today, SIA(Singapore International Airline) has developed to be ranked as the top 10

international air carriers in the world. Significantly, Singapore Airlines has won the "airline

of the year" in the airline industry,rewarded by the ATW(Airline Transport World)'s 34th Annual

Airline Industry Achievement Awards. How is it possible that SIA is so successful in achieving

competitive advantages above the competition over three decades? One of the important reasons

is that this has been achieved through crew resource development and employees’ training

(Singh,1984)1. Through crew resource development, and extensive investments in training staff,

SIA has expanded its different origins to be in the service of 36 cities in 27 countries.

Today, SIA still focus on the area of the commitment of staff, and the disciplined long term

focus, which is the investment on training.

1. Introduction

How does the company’s internal communication and recruitment give credit to consistently

deliver on its brand promise and maintain its premium positioning in the competitive airline

industry? To answer this question, we examine the five interconnected and equally supportive

aspects that behind the company’s effective human resource management strategy. The five

aspects along with the leadership and role modeling of top management, play a crucial role in

the ability to constantly achieve cost-effective service excellence through a cost effective

manner. The five elements which form the foundation of our company’s human resource management

and reinforce its service excellence strategy are:
1) stringent selection and recruitment processes;
2) extensive training and retraining of employees;
3) formation of successful service delivery teams;
4) empowerment of front-line staff; and
5) motivation of employees (Heracleous & Wirtz, 2009)

Furthermore, we will explore successful communication and motivation in the company, which have

been offered through rewards and recognition, and how crew resource development and successful

communication in SIA has improved and supported SIA to build and sustain its competencies

consistently above the competition over three decades.

2. A strategic view of Human Resources development in SIA

Crew resource management is the main aspect of the company’s dimension, which should enable the

abilities that assist a company’s strategy. In SIA’s case, the Crew Resource management

performance delivers the improvement of service excellence, customer s’ expectation, values of

cost consciousness and adapting to changing market abilities, which as a result, support the

differentiation strategy of innovation and service and cost effectiveness (Managing HR for

service excellence & cost effective). To achieve this strategy, the company has chosen most

particular quality control systems and processes for employee selection and training, and also

particular training and service policy (p. 34, Asian Business Review, 1996)

The support of the employees and the contributions every staff made were important. Everyone is

bonded, and stressing the bond working relationship between top management and staff. As a

result, the company is quick-witted and flexible, which enables fast decisions and speedy

practice of measures, which in turn, solve the issue at the beginning (The Annual Report, 2009

-2010).

3. The Five Key Elements of SIA’s Human Resource development strategies

In order to manage people effectively to deliver sustained service excellence, SIA’s crew

resource management process, is an important aspect of their business. They focus on the people

side of the company’s sustained service excellence, more specifically, the five key elements

behind effective human resource management strategy and how each of the five aspects reinforces

the company’s service excellence strategy. The five elements are
 1) stringent selection and
2) hiring of people,
3) extensive training and retraining,
4) formation of successful service delivery teams,
5) empowerment of the front line, and staff motivation.

3.1 Stringent selection processes

The most significant advantage is the right people. Human resource strategy begins with hiring

right people, where we implement a highly accurate and strict selection process. It includes

meeting a multitude of criteria, interview, etc. This particular selection process with a

selection rate of 3to 4 percent of all the applicants, makes sure that the company hires

applicants with the preferred characteristics.

3.2 Developing staff holistically Recruitment

The holistically recruitment goes on for the whole term of employment, it starts from the new

recruits’ on-the-job training for four months, to make sure that they understand the company’s

corporate values and the promise of being ‘a great way to fly’. Once they join the company, the

training serves focus on improving coalition between the employees’ individual value system and

the company’s corporate values. However, everyone, including senior managers has training and

development plans. It is an ongoing procedure that calls for all management’s attention. These

programs constantly enhance the alignment of individual with corporate values by the

communication and shared value of experiences

3.3 Investment on Training and retraining

Once a company has good people hired, investment in training and retaining can bring in

excellent outcomes. SIA’s experience emphasizes how recruitment and development should be

managed, aiming to realize well managed human resource which can efficiently sustain the

company’s competitive advantage. The company placed substantial stress on training, so that

training is considered as one of the important points in human resource development and service

excellence strategy (Managing HR for service excellence & cost effective). The training intends

to ensure that the cabin crew offers excellent service. This on-going training and retraining

has been essential to the company’s objective of constant development, and it is important to

the company in maintaining service excellence through managing employees to be open minded, to

adapt to change and improvement and to bring new services that introduces regularly.

In order to assist retrenched staff, the company holds training programs and workshops that

included courses on managing emotions, financial planning and career guidance.

Basically, the company has divided the training into two types, which are functional training

and general management training, it involves not only safety and functional issues, but also

beauty care, gourmet food and wine appreciation, and art of conversation (Chan, 2000a, b)5.

Overall, there are seven training schools, which are responsible to offer training in each of

the core functional areas. The general management training is delivered by the Management

Development Centre (MDC), which is target with softer skills, its programs are divided into

three fields:
(1) management development programs focusing on the changing priorities and skills required at

various levels of the managerial hierarchy;
(2) management skills development programs which are functional or skills related, ranging from

the art of negotiation to the learning of other cultures;
(3) self-development programs in areas such as social etiquette.

Leadership as well as the relationship management with employees is the main forces that drive

the success of our training and retraining programs. Our managers usually think themselves as

counselor and coaches to direct the new employees. We also take on a job rotation approach to

let management understand a whole picture of our company, and also, it generates enthusiasm for

change and innovation .

3.4 Quality of Management (Building high-performance service delivery teams)

SIA has one of the youngest management teams, among all the main and well-managed airlines in

the world, the average manager is in his late 30s. The feature of young and energetic team has

enabled to react fast and determinedly in decision-making, in turn, quick decisions can be

made, as well as action taken (Singh,1984)8.

In terms of the significance of the teamwork in the delivery of service excellence, SIA aims to

create ‘team spirit’ among our cabin crew. Team concept is the approach to improve teamwork

among the diversity of group of cabin crew staff. In doing so, the company has divided the

total crew members into teams of 13 people, in which team staff are managed to fly together

quite often, this lets them create better understanding of each other’s personalities and

abilities within a team (Heracleous, Wirtz, & Pangarkar, 2008) (Managing HR for service

excellence & cost effective). In addition to training, the company also promotes and

facilitates activities. For instance, the ‘performing arts cycle’, these activities also

enhance building company and team spirit as well as personal interests, which in turn, supply

the quality of service that crew delivers in the flight (Heracleous,Wirtz,& Johnston, 2004).9

3.5 Empowerment of front-line staff to control quality (Listening to Customers and Front Line

Staff)

In our company, senior management stress that employees should have a clear idea of the

boundaries of their rights and which is charge of the management to correspond and illustrate

the empowerment limits, especially, empowerment of the front-line staff is crucial during

service recovery processes.

The company has very complicated feedback methods that help their staff to listen to customers

and to understand them better. Information can be collected from a random sample, benchmarking

survey, and so on. They track and analyze all the feedback from customers we received. Not only

managers but also staff have lots of opportunities to give feedback (Jochen& Robert, 2001).11

SIA has a motto: ‘If SIA can’t do it for you, no other airline can’. To maintain the reputation

for service excellence, and to assist the front-line staff to conquer the high expectations and

demands from customers, The company encourages the staff to try to sort things out, to do as

much as they can for the customer and help them deal with the emotional turmoil of having to

handle their customers well.

4. Communication and Motivation
To ensure that staff will deliver service excellence, we created reward systems which are the

major contributor to motivation and reorganization. Motivating and rewarding proactive service

staff is also the most effective method of retaining them.
The company recognizes excellence, and highlights positive performance. The reward and

evaluation system is fully aligned with desired performance (Heracleous,Wirtz,& Johnston,

2004)13. For instance, SIA provides a variety of kinds of rewards, involving interesting and

varied job content, etc. Another source of motivation comes from the global award for

excellence, such as the ‘best airline awards’. In addition, the company uses non-financial

rewards to motivate good service, such as newsletters, to motivate staff.
4.1 Internal communication at SIA

The company’s employee communication program is fundamental on the mission and main corporate

values of the company. SIA’s mission is to be 'a global company dedicated to providing air

transportation services of the highest quality and to maximizing returns for the benefit of its

shareholders and employees'. Its main corporate values are the pursuit of excellence (service

orientation and product knowledge), (safety, security, and teamwork (work relationship and

people management)

The employee communication function exists in the People Network department, which focuses on

creating and sustaining well-built relationships among management and employees through share

of the company’s mission, core values and strategic decisions, this is made possible by a

complex and incorporated communication network which includes print materials, online

communication channels, face-to-face meetings, bond-building extra-curricular activities and

the organizational climate survey. It is important that union members are also actively

participant in all meetings and training sessions, it enforce union and management relations

and inspire a sense of ownership (Chong, & Chian, 2007).16

The communication of the company’s core values is a sign of their strategic status in the

company’s internal communication and training programs. The companies’ core values are also

enhanced during the ongoing training program, such as the Managers’ program. The company has an

evaluation system to make sure that the core values are associated with performance. Such as an

on-board assessment(OBA), which integrate performance indicators which show the company’s core

values.

Conclusion

For over three decades, SIA has managed to achieve what many others in the aviation industry

can only dream of: cost- effective service excellence that is reinforced by effective human

resource management. We discussed the role of SIA’s leadership, the five key elements

constituting SIA’s human resource management strategy (i.e., stringent selection and hiring of

people, followed by extensive training and retraining, formation of successful service delivery

teams, empowerment of the front line, and motivating staff), and successful communication and

motivation, which have helped SIA to build and sustain service excellence at levels

consistently above the competition over three decades. In summary, SIA’s core values build the

foundation of its internal communication and training programs, which aims to enhance manners

to enhance these core values in employees to be able to deliver our brand promise of ‘a great

way to fly’.

singapore international airlines,

sia,

singapore international airlines website,

singapore international airlines career,

singapore international airport,

tiger airways,

sia airline,

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emirates

Er Reema Chordiya [ BE, MBA ]
Manager HR
www.AeroSoftCorp.com
www.AeroSoft.in
www.AeroSoft.co.in
www.AeroSoftseo.com
On Line Assistence    :
Gtalk                          :   Reemac.AeroSoft@gmail.com
Y! Messenger             :   Reema.AeroSoft@yahoo.com
Rediff Bol                    :   Reema.AeroSoft@rediffmail.com
MSN                           :   Reema.AeroSoft@hotmail.com

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The candidate should have good experince in SEO operations.should be experienced in SEO Promotion .Should have hands on experince in Joomla Administration and updation of website via ...
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BBA - BCA - BA - BSc Freshers - SEO Trainee (0-0 yrs.)
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Noida
We are hiring for Graduates and Undergraduate freshers. Below are requirements: 1. Must have good command over English (Written & Verbal) 2. Well aware of Computers (Internet) 3. ...
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Junior Seo (0-2 yrs.)
Internet Moguls
Delhi
Submitting articles in directories and in content sharing websites. Managing supporting websites and blogs for 3 way link exchange. ...
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SEO (Search Engine Optimizer) (2-5 yrs.)
Internet Moguls
Delhi
SEO, Website analysis, ...
 | IT Software - E-C...»WebmasterActionsPosted Date:25 Feb


Seo Trainee (0-0 yrs.)
MG Infocom Pvt. Ltd
Delhi/NCR
4 Months Training in Search Engine Optimization such as on-page and off page optimization with no salary payout.Only Free ...
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SEO analyst (1-6 yrs.)
Intelli Search
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Seo Analyst. must be good at good at On-page optimization, Offpage optimization – link building, blogs, social media marketing, local search marketing etc.., ...
 | IT Software - Oth...»IT / Technical Co...ActionsPosted Date:27 Feb


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Corporate Business Support Solution
Bengaluru/Bangalore
Off page optimization. Link building, Forum ...
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Client of AM Consultant - Ahmedabad
Ahmedabad
Looking for skilled professionals for our fast growing IT company at Ahmedabad, The candidate must have a good knowledge of On Page/Off Page Search Engine Optimization. Social Media ...
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SEO - Team Lead (3-7 yrs.)
Cyber Futuristics (I) Pvt. Ltd.
Noida
*Minimum Experience- 3 years *On page & off page factors on Google and Yahoo with knowledge of Ad word and ad sense. *Proficient with meta tag, keyword analysis *SEO technical ...
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SEO Executive (2-4 yrs.)
Cyber Futuristics (I) Pvt. Ltd.
Noida
*On page & off page factors on Google and Yahoo with knowledge of Ad word & ad sense *SEO link building *Knowledge of HTML is necessary *Keyword research analysis,Website analysis. ...
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Team Leader SEO (Search Engine Optimization) / SEM / PPC (3-8 yrs.)
IndianTAG
Hyderabad / Secunderabad
*On page & off page factors on Google and Yahoo with knowledge of Ad word and ad sense. *Proficient with meta tag, keyword analysis *SEO technical analysis and evaluation *META ...

American Airlines: A fresh take on human resources services

American Airlines: A fresh take on human resources services

"Beyond the immediate objectives, this platform positions us for the future and gives us the freedom and flexibility to deal with all eventualities."


Business Challenge
American Airlines sought to enhance capabilities in areas such as compensation, learning and employee benefits so that it could continue to achieve its strategic human resources (HR) objectives. However, its internally developed HR support platform was reaching the limits of its ability to address change and be maintained in a cost-effective manner.

Solution
American partnered with a team of IBM and IBM Business Partners to build a new, outsourced global HR infrastructure. The objective was to achieve high standards of service delivery excellence, while positioning the airline to more easily capitalize on future developments and opportunities and allowing American to dynamically respond to potentially dramatic business cycles.

Business Benefits
Maintains and upgrades application infrastructure with additional functionality in a cost-effective manner
Leverages best practices and operational efficiencies from strategic outsourcing partners, freeing internal resources to drive greater business value
Improves business agility by providing a variable cost model, allowing the airline to more easily expand and contract in response to economic pressures
Provides best-in-class delivery of human resources services while positioning American to capitalize on future opportunities for optimization
Offers an enhanced online and telephone experience for employee self-service through more robust Web-based applications and improved call center capabilities

Smarter Travel and Transportation
To optimize its business, improve cost efficiency and enhance flexibility, American Airlines chose to transform its best-in-class human resources operations by engaging in a strategic outsourcing partnership with a team of IBM and IBM Business Partners. The new, global operation provides seamless continuity with American's existing operations while positioning the airline to respond more easily to economic forces and future opportunities for optimization.

Key Components
Software
IBM: eHR
Liveperson
Mercer: Health and Welfare Benefits suite 4.0 -- Benefits Workstation, ePrism
SuccessFactors: Performance Manager, Total Goal Management, Succession Planning, Career Development
Taleo: Enterprise, Connect Broker, Passport, Advanced Reporting, Resume Parsing, On-Boarding
Workscape: Compensation Planner
Services
IBM Global Business Services
IBM Global Technology Services -- Business Process Outsourcing Services
IBM Business Partners
Mercer
Taleo
SuccessFactors
Workscape

Achieving best-in-class capabilities in key business functions is a highly desirable goal for any company. That's what American Airlines, one of the world's largest scheduled passenger carriers, accomplished several years ago by creating its own internally developed, shared services model for human resources.

As good as American's systems were, there was still opportunity for improvement. American ran an outstanding shared HR Service Center, but the technology supporting that operation was dated and the cost to maintain and upgrade its capabilities was high.

"In the airline industry," says David Levine, Managing Director of Human Resources Delivery for American, "we're not only looking at growth -- we follow the economy and have to be able to expand and contract as needed with minimal disruption. With the current economic climate, we have increased incentive to make ourselves more cost-efficient and nimble."

By 2005, improvements to American's human resources platform were starting to slow. It was becoming more difficult and costly to optimize and maintain the systems, and the company was beginning to see the need to refresh some of its technology. "The question going forward became, 'should we invest more internally, or form a strategic partnership with a world-class provider and by so doing leverage its investments in research and development instead?' We already had a good product, but we needed to determine where we should be five years down the road," says Levine.

When a company creates as robust a set of capabilities as American had, there is a natural tendency to believe that keeping things in-house is the wisest move. After a thorough study, however, it was decided that a strategic partnership would in fact be the next logical step for American -- provided that the solution could at least match the airline's current capabilities and performance. Outsourcing would ensure that the technology used would be kept up to date, eliminate direct maintenance cost, leverage expertise from industry experts, and most importantly, provide a cost-effective, flexible business model to meet the airline's current and future requirements.

A project of extraordinary complexity and scope
The extent of the HR transformation project was considerable. "American Airlines may not be unique in terms of the complexity of our needs," says Levine, "but we have a very large number of requirements and high expectations for service delivery excellence."

American selected IBM, which assembled a global team of IBM Business Partners to address this large and complex project. Human resources specialist Mercer provided key consulting services, helping to identify where cost savings could be realized and how to seamlessly transfer American's existing HR functions to the new architecture. American, Mercer and IBM partnered to transform and optimize existing HR business processes, create new processes that would facilitate the transition, and integrate the new applications with American's IT infrastructure.

The IBM team supplied a powerful set of applications to handle the functional requirements of the solution. The key was to identify which functions were a good fit for the new outsourcing model, then assemble best-of-breed commercial applications to handle those functions, leaving other, strategic aspects of HR operations in American's hands. While this is a more cost-effective way of addressing the challenge than extensive custom development, it requires careful and thorough planning and expert integration work to ensure that service levels are maintained and no capabilities are compromised.

The solution ultimately incorporated a variety of tools from IBM, several IBM Business Partners and other vendors. Mercer provided a holistic software suite, which includes its Benefits Workstation core recordkeeping system and ePrism for salary planning. Other solution components included Liveperson for real-time chat, Taleo's software suite for talent management and recruiting, SuccessFactors for performance management and Workscape for compensation management. IBM contributed the eHR Web-based HR management and service suite providing for an online knowledge base and Employee Services Call Center integration, along with service components including business process outsourcing services.

IBM and the team it assembled, along with American, then took these processes along with the updated technology base and delivered several new services to American Airlines management and employees, including:
Selective Learning Services -- Administrative Support, Content Development and Maintenance, as well as Course Delivery
Talent Services for recruiting and compliance
HR Services Call Center
Compensation Management
Organizational Development and Performance Management
Health and Welfare Consulting, Communications and Administration
Pension Administration

The solution addressed more than American's functional requirements. In order to address the business need for flexibility -- namely, the ability to scale both up and down in response to potentially dramatic changes in the economic climate -- the IBM solution incorporated a variable pricing model. This allows American to dynamically and effectively respond to business cycles while maintaining high utilization of its resources.

IBM also made full use of its global reach to deliver greater value and cost efficiency, spreading functions across locations in the United States, Brazil, the Philippines and India, operated by a mix of IBM, Mercer and American employees under a multi-year contract. The solution, combined with the advanced functionality of the new software and the new facilities, enables service personnel to work smarter and more effectively -- for example by allowing call center representatives to handle multiple clients simultaneously.

Transition that leads to transformation
Levine emphasizes that the initial objective of the project was to provide at least equal services and continuity, rather than new functionality or improved performance. "The overriding concern is integration. A smooth transition is very important to us. Having said that, we have gotten some good improvements -- eHR and the performance management systems give us some new capabilities, for example, and Mercer has given us a new plan for health and welfare administration that we could not have handled easily with our old technology."

This emphasis on seamless transition is critical to American. Levine draws a clear distinction between transitioning to a new system and the business transformation that new technology can enable. "Especially when it comes to something as large and complex as this," he says, "transformation and innovation doesn't just happen. First you have to undertake the transition itself, then stabilize the systems, then achieve a steady state that is directly comparable to where you had been -- all without any significant interruption of service or loss of functionality. Only then can you really start to transform the business." Currently, American has achieved a steady state for most functions and is working together with IBM to identify areas of opportunity for improvement. Projects that, due to resource limitations, would not have been considered prior to the strategic partnership are now within the realm of possibility.

"Our immediate goal is matching the excellence in service delivery that we've always had," Levine notes, "and we're at or ahead of where we thought we'd be at this point. Beyond the immediate objectives, though, this platform positions us for the future and gives us the freedom and flexibility to deal with all eventualities."




Keywords :

American Airlines,IBM



Er Reema Chordiya [ BE, MBA ]  
Manager HR
www.AeroSoftCorp.com
www.AeroSoft.in
www.AeroSoft.co.in
www.AeroSoftseo.com
On Line Assistence    :
Gtalk                          :   Reemac.AeroSoft@gmail.com
Y! Messenger             :   Reema.AeroSoft@yahoo.com
Rediff Bol                    :   Reema.AeroSoft@rediffmail.com
MSN                           :   Reema.AeroSoft@hotmail.com

Indian Airline's HR Problems

Abstract:

The case 'Indian Airlines' HR problems', examines the causes of the HR problems faced by Indian Airlines. The case reveals how poor management and stubborn work force can drive a monopoly into losses. The case also throws light on other lapses such as poor canteen management and payment of excessive allowances.

The case is so structured as to enable students to understand why and how Indian Airlines was constantly plagued by HR problems. The students should be able to see how the pilots and other workers used arm-twisting tactics to get IA to agree to all their demands. The case also provides insights into how IA's lackadaisical handling of its HR problems contributed to the overall mess that the airline found itself in.

Issues:

» Human Resource Management

Contents:
 
Flying Low
Background Note
'Fighter' Pilots
Troubled Skies

Flying Low :

Indian Airlines (IA) - the name of India's national carrier conjured up an image of a monopoly gone berserk with the absolute power it had over the market. Continual losses over the years, frequent human resource problems and gross mismanagement were just some of the few problems plagued the company. Widespread media coverage regarding the frequent strikes by IA pilots not only reflected the adamant attitude of the pilots, but also resulted in increased public resentment towards the airline.



IA's recurring human resource problems were attributed to its lack of proper manpower planning and underutilisation of existing manpower.


 
The recruitment and creation of posts in IA was done without proper scientific analysis of the manpower requirements of the organization. IA's employee unions were rather infamous for resorting to industrial action on the slightest pretext and their arm-twisting tactics to get their demands accepted by the management.

During the 1990s, the Government took various steps to turn around IA and initiated talks for its disinvestment. Amidst strong opposition by the employees, the disinvestment plans dragged on endlessly well into mid 2001. The IA story shows how poor management, especially in the human resources area, could spell doom even for a Rs 40 bn monopoly.

Background Note :

IA was formed in May 1953 with the nationalization of the airlines industry through the Air Corporations Act. Indian Airlines Corporation and Air India International were established and the assets of the then existing nine airline companies were transferred to these two entities. While Air India provided international air services, IA and its subsidiary, Alliance Air, provided domestic air services. In 1990, Vayudoot, a low-capacity and short-haul domestic airline with huge long-term liabilities, was merged with IA.

'Fighter' Pilots:

IA's eight unions were notorious for their defiant attitude and their use of unscrupulous methods to force the management to agree to all their demands. Strikes, go-slow agitations and wage negotiations were common. For each strike there was a different reason, but every strike it was about pressurizing IA for more money. From November 1989 to June 1992, there were 13 agitations by different unions. During December 1992-January 1993, there was a 46-day strike by the pilots and yet another one in November 1994.



The cavalier attitude of the IA pilots was particularly evident in the agitation in April 1995. The pilots began the agitation demanding higher allowances for flying in international sectors. This demand was turned down. They then refused to fly with people re-employed on a contract basis. Thereafter they went on a strike, saying that the cabin crew earned higher wages than them and that they would not fly until this issue was addressed. Due to adamant behaviour of pilots many of the cabin crew and the airhostesses had to be off-loaded at the last moment from aircrafts.


 
In 1996, there was another agitation, with many pilots reporting sick at the same time. Medical examiners, who were sent to check these pilots, found that most of these were false claims. Some of the pilots were completely fit; others somehow managed to produce medical certificates to corroborate their claims. In January 1997, there was another strike by the pilots, this time asking for increased foreign allowances, fixed flying hours, free meals and wage parity with Alliance Air. Though the strike was called off within a week, it again raised questions regarding IA's vulnerability. April 2000 saw another go-slow agitation by IA's aircraft engineers who were demanding pay revision and a change in the career progression pattern.

Troubled Skies:

Frequent agitations was not the only problem that IA faced in the area of human resources. There were issues that had been either neglected or mismanaged. For instance, the rates of highly subsidized canteen items were not revised even once in three decades and there was no policy on fixing rates.



Er Reema Chordiya [ BE, MBA ]  
Manager HR
www.AeroSoftCorp.com
www.AeroSoft.in
www.AeroSoft.co.in
www.AeroSoftseo.com
On Line Assistence    :
Gtalk                          :   Reemac.AeroSoft@gmail.com
Y! Messenger             :   Reema.AeroSoft@yahoo.com
Rediff Bol                    :   Reema.AeroSoft@rediffmail.com
MSN                           :   Reema.AeroSoft@hotmail.com

Indian Airline's HR Problems

Abstract:

The case 'Indian Airlines' HR problems', examines the causes of the HR problems faced by Indian Airlines. The case reveals how poor management and stubborn work force can drive a monopoly into losses. The case also throws light on other lapses such as poor canteen management and payment of excessive allowances.

The case is so structured as to enable students to understand why and how Indian Airlines was constantly plagued by HR problems. The students should be able to see how the pilots and other workers used arm-twisting tactics to get IA to agree to all their demands. The case also provides insights into how IA's lackadaisical handling of its HR problems contributed to the overall mess that the airline found itself in.

Issues:

» Human Resource Management

Contents:
 
Flying Low
Background Note
'Fighter' Pilots
Troubled Skies

Flying Low :

Indian Airlines (IA) - the name of India's national carrier conjured up an image of a monopoly gone berserk with the absolute power it had over the market. Continual losses over the years, frequent human resource problems and gross mismanagement were just some of the few problems plagued the company. Widespread media coverage regarding the frequent strikes by IA pilots not only reflected the adamant attitude of the pilots, but also resulted in increased public resentment towards the airline.



IA's recurring human resource problems were attributed to its lack of proper manpower planning and underutilisation of existing manpower.


 
The recruitment and creation of posts in IA was done without proper scientific analysis of the manpower requirements of the organization. IA's employee unions were rather infamous for resorting to industrial action on the slightest pretext and their arm-twisting tactics to get their demands accepted by the management.

During the 1990s, the Government took various steps to turn around IA and initiated talks for its disinvestment. Amidst strong opposition by the employees, the disinvestment plans dragged on endlessly well into mid 2001. The IA story shows how poor management, especially in the human resources area, could spell doom even for a Rs 40 bn monopoly.

Background Note :

IA was formed in May 1953 with the nationalization of the airlines industry through the Air Corporations Act. Indian Airlines Corporation and Air India International were established and the assets of the then existing nine airline companies were transferred to these two entities. While Air India provided international air services, IA and its subsidiary, Alliance Air, provided domestic air services. In 1990, Vayudoot, a low-capacity and short-haul domestic airline with huge long-term liabilities, was merged with IA.

'Fighter' Pilots:

IA's eight unions were notorious for their defiant attitude and their use of unscrupulous methods to force the management to agree to all their demands. Strikes, go-slow agitations and wage negotiations were common. For each strike there was a different reason, but every strike it was about pressurizing IA for more money. From November 1989 to June 1992, there were 13 agitations by different unions. During December 1992-January 1993, there was a 46-day strike by the pilots and yet another one in November 1994.



The cavalier attitude of the IA pilots was particularly evident in the agitation in April 1995. The pilots began the agitation demanding higher allowances for flying in international sectors. This demand was turned down. They then refused to fly with people re-employed on a contract basis. Thereafter they went on a strike, saying that the cabin crew earned higher wages than them and that they would not fly until this issue was addressed. Due to adamant behaviour of pilots many of the cabin crew and the airhostesses had to be off-loaded at the last moment from aircrafts.


 
In 1996, there was another agitation, with many pilots reporting sick at the same time. Medical examiners, who were sent to check these pilots, found that most of these were false claims. Some of the pilots were completely fit; others somehow managed to produce medical certificates to corroborate their claims. In January 1997, there was another strike by the pilots, this time asking for increased foreign allowances, fixed flying hours, free meals and wage parity with Alliance Air. Though the strike was called off within a week, it again raised questions regarding IA's vulnerability. April 2000 saw another go-slow agitation by IA's aircraft engineers who were demanding pay revision and a change in the career progression pattern.

Troubled Skies:

Frequent agitations was not the only problem that IA faced in the area of human resources. There were issues that had been either neglected or mismanaged. For instance, the rates of highly subsidized canteen items were not revised even once in three decades and there was no policy on fixing rates.

HR Problems at Jet Airways

 Coping with Turbulent Times in the Indian Aviation Industry

Abstract:
The case is about the retrenchment drama that unfolded in one of India’s leading aviation companies, Jet Airways (India) Limited (Jet), in late 2008. After showing the door to more than 1000 employees in a bid to streamline its operations, Jet was faced with immense criticism and opposition by various organizations and political parties.

Jet’s chairman Naresh Goyal (Goyal) reinstated the employees a day later saying that he was not aware of these sackings. The Indian aviation industry was going through a tough phase and experts felt that it was in the interest of the company to retrench employees to remain competitive.
Experts largely felt that Goyal had capitulated under pressure from external parties while others felt that all may not be well with the organizational communication mechanisms at Jet.

We have created high morale for our people. Our employees believe in the company. They believe it’s their company. There’s a feeling among employees that if the company makes money, it’s their money and if the company loses money, that’s their loss."
Naresh Goyal, Chairman, Jet Airways (India) Limited, in July 2007.

"While the mishandling of the Jet Airways sacking and reinstatement of 1,900 employees was an HR and PR disaster, the larger implications of what happened are also worth considering. It is not just that the chairman of India’s most successful airline became the butt of jokes, it is also a question of what he knew, when he knew it, and who did the bungling."
- Anjuli Bargava, Columnist, Business Standard, October, 2008.

"The sackings were completely illegal. There was no notice nor was government’s permission taken to sack 800 employees. Perhaps they realized their folly and decided to take these employees back. The matter would have landed in the court otherwise."
- Anand Pujari, Labour lawyer, SI Joshi & Co., in October 2008

ISSUES

» Analyze the HR problems faced by Jet Airways in 2008.

» Discuss various concepts related to hiring, firing, and compensation management.

» Understand the rationale behind Jet’s decision to lay-off employees and the reason’s behind its later decision to take back the sacked employees.

» Understand the importance of communication in an organization and analyze whether there were any loopholes in Jet’s organizational communication network.

» Understand the rationale behind the pay cuts initiated at the company.

» Understand how environmental variables could affect a company’s HR policies.

Introduction:

In October 2008, Jet Airways (India) Limited (Jet), one of India’s leading domestic airlines, decided to lay off more than 1,000 employees to streamline its operations.5 The retrenchment was the second phase of its trimming operations.

The first phase, which took place a day earlier, saw the airline showing the door to 850 cabin crew members6. The second phase of retrenchment included employees from all operations - cabin crew, pilots, ground staff, airport services staff, and employees from management departments.
The sudden decision not only took the employees by surprise but also caused alarm in the Indian aviation sector. Amidst great furor and opposition by various organizations and political parties, Naresh Goyal (Goyal), chairman of Jet, reinstated the employees a day later amidst great emotional drama. He was quoted as saying he had been appalled by the retrenchments of his employees, which he claimed, he had come to know only through media reports.

He added that he would "not be able to live as long as he lives" with the tough decision his management had taken and clarified that he was taking back the employees as they were "family to him and as head of the family he would take care of them.
A month later - in November 2008, Jet announced that it would consider serious salary cuts for its staff to handle the aviation crisis.
While many industry analysts were surprised by the turn of events that had led to the reinstatement of the sacked employees, they opined that Jet had been forced to take drastic decisions such as laying off employees or initiating pay cuts because of the turbulent phase through which the aviation industry was passing.

In September 2008, the International Air Transport Association (IATA) had predicted that world over the aviation industry would lose about US$5.2 billion based on an average jet fuel price of US$140 . The rise in fuel prices had pushed the fuel bills of the aviation industry to US$186 billion by the end of the year 2008.

Background Note:

Jet, with its headquarters in Mumbai, India, began as an air taxi operator in April 1992 and started its commercial operations a year later, in 1993. It operated with just 24 flights across 12 destinations initially, but showed exceptional growth with more than 357 daily flights to about 62 domestic and international destinations in 2008. It was first listed in the National Stock Exchange (NSE) in the year 2005. As of June 2008, it operated over 370 daily flights to about 68 destinations both in India and abroad including San Francisco, New York,Toronto, Singapore, Brussels, London (Heathrow), Hong Kong, Shanghai, Kuala Lumpur, Colombo, Bangkok, Kathmandu, Dhaka, Kuwait, Bahrain, Muscat, Abu Dhabi, Dubai, etc...

HR Issues, Management and Decision Making at Jet

According to the company, Jet paid the utmost importance to the composition of its senior management and its human resources with emphasis on teamwork as a key success factor. Being in the service-based industry, Jet gave priority to high quality, professional service to its customers...

The Retrenchment Drama Unfolds

The retrenchment drama unfolded on October 16, 2008, when Jet announced that it would lay off nearly 1,100 of its staff a day after it had already laid off around 800 of its cabin crew members.

The second phase of 1,100 employees included those from departments like management, flight attendants, and the cockpit crew.

The company decided to lay off these employees with no prior notice but offered them a month’s remuneration...

Reasons for Retrenchment

The growing challenges in the Indian aviation industry were the main reason for the lay offs at Jet, according to the company and other industry analysts.

Turbulent Times for the Indian Aviation Industry

The Indian aviation industry was one of the fastest growing aviation industries in the world. The Air Corporations (Transfer of Undertakings and Repeal) Act 1994 opened the Indian skies up to private operators. Apart from government-owned airlines, the aviation industry was flooded with private operators and low cost carriers...

The Debate Leading to the Reinstatement of Employees

Jet received criticism from several quarters for retrenching its employees. Many of its employees protested against the decision to oust them without prior notice. Most of them had paid substantial amounts to receive training at major Aviation Training institutes...

Massive Salary Cuts Follow

In the last week of November 2008, Jet decided on a 20% cut in the salaries of its pilots, engineers, and some other staff. The company planned a 5 percent to 10 percent cut in the salary of top officials who drew a salary above Rs. 75,000...

End of Case.

Please provide me your valuable inputs.

Problems encountered by British Airways after the merger

Question 1

What are the Problems encountered by British Airways after the merger in the year 1974-1981?

Answer

            After the merging of British Overseas Airways Corporation and British European Airways which formed British Airways, the company had faced many issues and problems.  One of the problems encountered by the company is in terms of cultural context. The consequences of culture become particularly apparent in cross national operations, mergers, and acquisitions, where not only different organizational cultures but also organizational cultures rooted in different national cultures meet (Very, Lubatkin & Calori, 1996; Schneider and DeMeyer, 1991).  When organizational members from diverse cultures interact and, especially, when one culture is required to adopt the methods and practices of the other culture, disruptive tensions emerge.

And this happened between the employees of the two merging industries (BOAC and BEA).  This problem can be described as acculturative stress or culture clash (Very et al, 1996). The costly resulted from the differences of the personnel. For example, the employees of BOAC were described by BEA staff as aloof, and certainly ill-equipped with the knowledge of the intensively competitive airline industries.  On the other hand, BOAC were snobbish with the staff of BEA thinking that flights to the European mainland were for tradesmen while long haul air travel was for the province of the gentleman.  The opposing ideas and beliefs of each of the employee was the cause of the problems encountered by British Airways after the merging.

Another problem or issue faced by British Airways is in terms of its imposed management system.  The British Airways implement a very hierarchical, inflexible and preoccupied with status differences which can be seen in their staff uniforms. The company is also having a problem because of its being rules-oriented.  In addition, another problem that arises is the inability of the management of the new company to see and satisfy the needs of their customers.  The company has given emphasis on its inward-looking management approach and concentrates on retaining its various routes which resulted on unsatisfied customers.


 Question 2

What are the effects of these conflicts?

Answer

These problems and conflicts had a negative effect on the new company.  British Airways has been considered as the most notorious company because of its poor service.  Furthermore, the company’s operation has been affected and in 1980 the company had been regarded to have the worst punctuality record all over European carriers flying from UK and voted as the airline to avoid. This also results in substantial loss of the company.

 Question 3

            What is the management changes made within British Airways?

Answer

            In order to change its reputation of being an industry with poor services, British Airways had considered major management changes. Known as change management, companies, businesses and working organisations are integrating change into their work system so as to be competitive and be more efficient in satisfying clients or customer needs.  According to Carlopio (1998) change may be referred as the implementation of an innovation, in which the vital role is to improve output through an adaptation of practices. Realizing the value of changing the management system of British Airways to become competitive, the Conservative Prime Minister Margaret Thatcher appointed John King in 1981 to be the Chairman of British Airways. Under the management of John King, he imposed changes including the closure of several routes as well as selling off the cargo service and planes. The company also lay off 20,000 staff as part of the change.

In 1982, Colin Marshall became the Chief Executive Officer of British Airways. During this period, BA was generating its first surplus which is the effect of the cost-cutting activities imposed by John King. This was the time when Marshall had also realized that the organization needs to pay attention on it customer service so as to ensure that the industry will continue to earn profit. In order to initiate such change, Marshall hired Consultants to gather data about staff and customer attitudes. The result of such evaluation shows that there is a significant gap between what the staff is providing and what the customer actually needed. Hence, another management initiative was the change of the system from staff- oriented to customer oriented industry through the creation of “customer is king” culture within the organization.

Marshall also founds out that the staff has an internal problem in terms of having a good and harmonious working relation; hence, he decided to create a more cohesion among the BA staff by implementing the Staff Development Initiative which aimed at deep-seated and lasting cultural change. This also aims on having more effective employees which will provide quality and excellent service among its customers.

This cultural training continued until the late 1990s and in order for the employees to do their job efficiently and to ensure customer satisfaction Marshall also created Awards for Excellence in 1987.  The aim of this initiative is to reward high performers and motivate the employees to always do their best in providing services.  During that year, Brainwaves, a suggestion scheme was also introduced.

Part of the changes imposed by Marshall is its integration with Lancaster University to provide MBA course for its employees. This is a part of the cultural training imposed by the company to make its employees more effective is providing services to its target market.

In addition, the organizational structure of British Airways also changes to a much flatter and slimmer structure. Five sections of the industry are directly reporting to the CEO and eleven profit centres were created. This structural alternation aims to enhance the staff integration and communication, within BA. The performance-related pay was also introduced by the management based on an appraisal system which values the significance of customer service and organizational cohesion. This change also includes major investments in planes, ground facilities and IT in order to adhere to the needs of its customers.

It can be said that the major management change happened within BA is when the industry has been privatized in 1987 and took over British Caledonian Airway in 1988.


 Question 4

How these changes helped the company?

Answer

            The main objective of the changes imposed by British Airways is to make the company survive in the marketplace and become competitive in the airline industry.  The changes imposed by the company had helped the industry to become more customer-oriented by providing quality and excellent services. Through these changes, the company has also been able to improve the relationship of the employees as well as the employee-customer relations.  The time-consuming and expensive investments as part of the changes also paid off when BA won the prestigious Business Traveller “World’s Best Airline award in 1989.  The management changes imposed within BA had made the company become more competitive in the UK market. The strategies imposed as well as the human resources management technique has been the key factors why the company had achieved so much and became a strong competitor in the airline industry.

 Question 5

What are the problems encountered by the British Airways during and after the management change?

Answer

Although the management change had been able to enhance the competitiveness of the British Airways, this does not mean that the company is free from any other problems and issues. As mentioned above, the management imposed a more comprehensive human resources management through its Staff Development Initiative, however, not all employees had been able to meet the objective of such initiative.  Hence, the problem encountered by BA during and after the management change is with regards to some of the employees.

The problems were attributed to the behavior of some of the employees which causes internal problems to the operation of the industry. Another problem is the libel case of King and Marshall by Richard Branson in 1993. This issue gain negative effect for the company. In edition, the initiative in terms of customer relations also faced problems by 1997 as far as employee relations is concerned. The problem lies on the inability of the management to foresee and predict some problems upon the change management.

Internal problems in accordance with employee relation also arise when the company had included cost-cutting approach within the industry which Ayling called Business Efficiency Programme (BEP). This programme had resulted in cabin crew worries in terms of financial losses and triggered the employees to conduct strikes and rallies. In this event, 300 staff has joined in spite of the intimidation of the management including threats to block promotion or even of dismissal and/or being sued for damages. Another 1500 personnel participated in a mass sick-out which has an overall cost of BA £125 million. This problem was a result of the inability of the management to utilise strategic management system in terms of employee relations.

Another problem arise during the change process, this time because of the initiative of the management of the company to change the brand of British Airways from the familiar red and blue BA logo into a 50 new designs from artists across the globe. The goal of this image change is to make the BA more recognizable into the world market.  However, these cause problems because some of the shareholders did not agree to this idea and find such change as extravagant and unpatriotic.

Another problem that arises is in terms of the increasing customer dissatisfaction of the services offered by British Airways. In addition, because of the inability of the management to handle employees effectively and to show commitment and honest communication, more internal human resources problems arise.  This in return affects the overall operation of the business making the business loss profits and reputation among its target market.

Although, Ayling had resigned, the man who replaced him also faced a lot of challenges and problem and above the difficulties linked with continuing to cut costs at the carriers by downsizing while improving morale. In July 2003, the company has faced problem relating to the introduction of electronic swipe cards for employees to clock on and resultant alterations to rosters.  Because of this unofficial stoppages to 500 flights were being cancelled. This caused a lot of issues and problems within the airline industry and the image of the British Airways had been sacrificed because of these undying problems and conflicts.


 Question 6

            What are the responses of the management of BA to solve these problems?

Answer

            In order to solve such problems in terms of having good employee relationship and customer relationship the management brings back its strategy of Putting People First as Putting People First Again. In addition, the management also provides the updated course to all BA personnel. The year 1999 has been a remarkable year for BA because of the problems and conflict faced by the management and all the approaches used to solve such conflicts.

             The company also initiated an e-commerce strategy to increase online sales and provide new innovations like flat beds and in-seat laptop, e-mail, phone and fax connections in business class which increases customer satisfaction.


Question 7

            What lies in the future of British Airways?

Answer

            The company is still facing a bigger problem in spite of its initiatives and changes imposed.  In this case, the Gate Gourmet adds up to the cause of the problems in terms of the BA’s brand image. Such dispute has created a notion that the business practices imposed by British Airways is not relevant to what it shows in its corporate images.  With this, the management is now trying to seek some strategies and approaches so as to solve these problems and one of which is thru a marketing communication initiatives.

            In addition, the current management also realizes that the lack of leadership and entrepreneurial competence had been the root of all the problems encountered by the company.


 Question 8

Recommendations for British Airways Management

Answer

            It seems that the major cause of the problems encountered by British Airways is due to the unplanned management changes imposed. In addition, the problems also arise because of the inadequate knowledge of its management about the use of strategic management and other management systems. Strategic management is the process of specifying an organisation’s objectives, developing policies and plans to achieve these objectives, and allocating resources so as to implement the plans. It provides overall direction to the whole enterprise (Abell, 1999). It can be "viewed as a set of theories, frameworks designed to explain the factors underlying the performance of organisations and to assist managers in thinking, planning and acting strategically" (Campbell, Evans & Stonehouse, 2002).

Urgent opening for the position of Customer Associate

For the requirement mention below immideatly contact  Nisha : 0731-3228569/3228450.

and forward ur cv at:- cv@pagdandi.in

Position: Customer Associate.

Responsibility: Front end sales.

Additional Knowledge: Working Knowledge of computers is a must.

Education. Qualifications	Graduate
Job Location	Bangalore,Chennai,Mumbai, Pune,Goa,Ahmdabad Note: Relocation from Bangalore to Chennai & Pune to Mumbai, Ahmdabad, Goa and visa versa should be fine with the candidate.
Desired Experience	Fresher or 0 – 2 yrs of experience in sales, hotels, food retailing, apparel stores.
Additional Knowledge	Working Knowledge of computers is a must.
Age	18 - 26
Reporting relationship	Store Manager
Salary	Rs. 15100/- For Metro locations (Bangalore,Chennai,Mumbai) only, and for Non-Metro locations (Pune,Goa,Ahmdabad) Rs.13413/-(plus medical, job based incentives and other annual perks).
Joning	Immediate
Key Skills and Attributes	Customer Facilitation - Greeting consumers.     - Highlight suitable higher value products to consumer while facilitating. - Appraise consumer on product / fashion and facilitate sales - Assess the consumer needs & suggest the right product. - Manage the Cash till at the Store whenever assigned and ensure checkout quickly   and efficiently - Collect and give consumer feedback / information to the Store Manager for action. Visual Merchandising - Assist the SM in implementation of VM plan to highlight the coordinates rather    than individual products - Ensure proper stacking & visual appeal of merchandise displayed. - Housekeeping and maintenance to ensure that the Store reflects a great shopping ambience. Product Knowledge - Update one’s own knowledge on the current season’s merchandise thru product hand    tags copy. Stock management - Regular replenishment of stocks from back office to assigned area in shop front - Assist SM in preparation of regular replenishment orders Reporting & Market Intelligence - Assist SM in tracking performance of Competitors in the market. - Assist SM in identifying and analyzing trends - Assist SM in preparation of reports accurately and on time Sales Productivity - Implement best practices of Up-selling & Cross-Selling - Strive to achieve higher conversion levels & measure the same on daily basis - Assist SM in breaking up of monthly targets into weekly / daily targets Marketing Initiatives - Assist SM in planning & execution of all marketing initiatives - Ensure maintenance & relevance of all brand collaterals in the store General / Administration - Ensures that he/she displays the high standards of grooming - Adhere to the disciplinary requirements of the store. - Assist SM in training & development of new CF’s
Key Success Factors	Good communication skills. Should be pleasant fluent in English and a desire     to work in retail.  Should be customer service oriented.