Air India Case

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Air India-Case Study Understand Organizations: Structure, Design and Strategy 6/28/2014 Nabila Khan F13093 Introduction: Air India and India Airlines were merged in 2007 (NACIL was formed) in order to recover their losses and work efficiently. But due to mismanagement of authority it became a complete failure. Instead Air India right now is immersed in huge amount of debts. The problem with Air India is there is no clear ownership. The MD is frequently changed and new plans are laid. Due to poor execution of plan and improper strategy along with massive misuse of funds the net worth of Air India is right now is in negative. Thus,it is high time Government take drastic step to save Air India Widespread media coverage regarding the strike by the pilots not only reflected the adamant attitude of the pilots, but also resulted in increased public resentment towards the airline. The airline’s recurring human resource problems were attributed to its lack of proper manpower planning and underutilization of existing manpower.The recruitment and creation of posts was done without proper scientific analysis of the manpower requirements of the organization. The 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. | | The effectiveness of Air India can be measured by the following approaches: * External Resource Approach: This evaluates the organization’s ability to secure, manage and control scarce and valued skills and resources. The goals set to measure the effectiveness are as follows: Quality of employees: Overstaffed: Highest Employee per Aircraft ratio in the world 200:1 where as desirable is 130-170:1.Over the years, the number of employees at IA increased steadily. IA had the maximum number of employees per aircraft. It
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