AIR INDIA PROBLEMS FACED IN RESPECT TO HUMAN RESOURCE MANAGEMENT
The study reveals how poor management and stubborn work force can drive a monopoly into losses. It also throws light on other lapses such as poor canteen management and payment of excessive allowances. The airline is entering a defining period. The human resources integration following the merger of the Indian Airlines with Air India has been handled badly, It adds that this issues has been almost deliberately ignored, with nobody in senior management or government taking responsibility. With no strategy of its own, the report says the government now has no option but accept the proposals of the Justice Dharmadhikari report, whose recommendations are yet to be made public.The outcomes will meet with a mixed response from the unions and more strikes are likely. The government, it says, seems to be preparing to adopt a firm stance, limiting discussions with the unions.It may not even shy away from a watershed moment in the next two to three months after the report is accepted by the government. This moment, the report says, could include a temporary shutdown of the airline. Another key concern is that the management at Air India could be set for change at the most senior levels, including the position of chairman and managing director. The new team could be faced with a highly charged and complex situation. The Air India board has also not been strengthened following a couple of high profile non-executive departures last year. Within the government, too, there could be new appointments in a number of senior roles. There is nobody taking ownership of the turnaround plan for Air India. At the same time, the plan itself is unrealistic and unachievable without first resolving the personnel issues emerging from the merger of the two carriers. Air India should be placed in special administration, similar to that adopted for Satyam, if any meaningful progress is to be achieved. This would involve...
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