Indian airlines- Human resource case study

1. INDIAN AIRLINES
HUMAN RESOURCE
PROBLEM
BY GROUP 1

2. SUMMARYIA was formed in May 1953 with the nationalization of the airlines industry through
the Air Corporations Act.
In 1994, the Air Corporation Act was repealed and air transport was thrown open to
private players.
To counter increasing competition IA launched a new image building advertisement
campaign.
IA was affected more by it’s gross mismanagement of human resources.
IA’s eight unions were notorious for their defiant attitude to force the management
to agree to all their demands.
Strikes, go-slow agitations and wage negotiations were common.
In 1998, IA tried to persuade employees to cut down on PLI and overtime to help the
airline weather a difficult period; however there efforts failed.

3. HUMAN RESOURCE
PROBLEMFrequent
strikes
Rampant
unionization
Over
employment
Restrictions
placed by
government
Political
agenda being
made as
policy for
company.

4. Analyze the developments in the Indian
civil aviation industry after the sector was
opened up for the private players. Evaluate
IA’s performance. Why do you think IA
failed to retain its market share against
competitors like Jet Airways?

5. IA’s human resource problems can
largely be attributed to its poor
human resource management
policies. Do you agree? Give
reasons to support your stand.

6. Mid Basic Pay and Variable Incentivising should be done to open up the
possibilities for employees and make it more attractive to employment.​
Focus on domestic high volume routes to help with human capital
utilisation
Focus on international flights where return on investment is high to
come back to profitability
Lowering the high scale hiring to ensure not more than necessary human
capital is at use.
WHAT SHOULD BE DONE?

7. THANK YOU