Air India Mcs Group E

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Air India Mcs Group E

  1. 1. AIR INDIA An Analysis of Management Control System in AIR India SONIA PURI NEHA JAIN MOUSAMI DAS SAURABH TRIVEDI ISHAN BATRA VIBHOR SINGHAL NEHA PODDAR www.airindia.in
  2. 2. TABLE OF CONTENTSSI NO. TITLE OF THE SLIDES 1 Introduction 2 Organization Structure 3 Control Processes in AIR India 4 Management Style and Culture 5 Communication & Co-ordination 6 Investor Relations 7 Budget and Audit 8 HR Policies 9 Recommendations and Conclusion
  3. 3. Introduction to Aviation Industry • The global aviation industry to grow at a 5.6% CAGR over the next 15 years. • Liberalization and deregulation increased Competition. • Industry growth at 25% YoY basis. • Compounding Problems
  4. 4. Introduction to AIR India• HISTORY• FLEET• NETWORK• SERVICES – STAR ALLIANCE, AIR INDIA EXPRESS• ACCOLADES
  5. 5. ORGANISATION STRUCTURE
  6. 6. Committees In AIR India• FINANCE COMMITTEE• HR COMMITTEE• STRATEGIC COMMITTEE• AUDIT COMMITTEE
  7. 7. Control Process in Air India• SAP ERP• Vigilance Department• SITA, to provide new Passenger Services System• Integrated Operations Control Centre (IOCC)• Norms set for the discharge of functions• Scrutiny of policies and activities• The budget allocated to each agency
  8. 8. Management Style & CultureVISION AND MISSION-• The Main object :to carry on business, in any part of the world as an airline and air transport and to provide air transport services and carry out all other forms of aerial work, whether on charter terms or otherwise, and to carry on any other trade or business or do anything which is calculated to facilitate or is auxiliary to or associated with such businessFocus –• Relationships• Shared goals• Shared knowledge• mutual respect.Decision making process-• Power is delegated• Discussions among cross section of departments• Worker/management committees. 8
  9. 9. Cont.…Attitude towards employees-• Employees are treated as valuable assets• Stable work environment• Encourage innovation and creativity.Credibility & caring-• Ability to inspire trust• The ability to inspire in employees the belief that their leaders care deeply about their well-being.Relational competence-• The ability to relate effectively with others• Enhances team workSAFETY CULTURE-• “Safety Culture is the set of enduring values and attitudes regarding safety issues, shared by every member of every level of an organization. 9
  10. 10. Communication & Coordination
  11. 11. Internal Communication• SITA• TELEPHONE SYSTEM• RADIO COMMUNICATION SYSTEM
  12. 12. External Communication• 24 hour dedicated call centre• Rescheduling messages to customer’s mobile phone.• Audit agency for continuous image audit, media relations, communication counsel, advising on regular basis for effective channel of communication
  13. 13. Investor Relations• Media Centre• Web Site• Right to Information• Manuals• Annual Statements
  14. 14. AUDIT COMMITTEEFunctions of Audit committee• Management responses.• Half yearly and yearly basis• Recommendations are taken from more than 1 audit firms• To review the company statement• To review the internal audit program & ensure co-ordination betweenthe internal & external auditors. BENCHMARKINGAir India did not reveal any bench marking details in their annualreport. But it uses industry standards which are followed by every otherairline like Flight on time ,Security Measures, Annual Maintenance Plansand Maharaja Club
  15. 15. BUDGETThe twin budget is prepared in air India which is both annual and five year planForecast Highlights• Traffic• Yeilds• Load Factor• FuelVariance analysis
  16. 16. HR POLICIESRecruitmentAppraisalCompensationReward 16
  17. 17. ADVANTAGES & DISADVANTAGES• Represents brand India• Job security to employeesomer service• No proper mechanism to manage salaries of employees• Sales to compensation ratio is decreasing since 2008• Most employees are 50+ with less energy levels and motivation for quality
  18. 18. RECOMMENDATIONS• Adopt strict cost control measures• Revise wage and implement multi-skill environment• Limit government control and policies for AI• Increase fleet size and invest in aircraft maintenance• Refresh and rebrand the company• Timely payment of salaries to employees
  19. 19. THANK YOU

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