ABSTRACT

INTRODUCTION OBJECTIVES Hrm system HOW TO OPTIMIZE AND MAKE CHANGES ACTION PLAN CONCLUSION

Air India is the flag carrier airline of India. It is part of the government of

India owned Air India Limited (AIL). The airline operates a fleet of
Airbus and Boeing aircraft serving Asia, Australia, Europe and North America. Air India has the fourth largest share in India's domestic air travel market, behind Jet Airways, Kingfisher and Indigo. Following its merger with Indian, Air India has faced multiple problems, including escalating financial losses and discontent among employees. Air India management system is made up of a chairman managing

director, two deputies director in administration and operation, twelve executives

director in different in different station head and station manager, this makes Air India management system make slow decision making within the organization also make the strength of the work force high and high cost of wages.

1. Achieving the goals of the organization through employees. 2. Enhance the employees & the organization effectiveness and capability.

3. using the existing and available resources for an organization to achieve the. goals

HRM Policy: 1. 2. 3. 4. Strategic integration High commitment. High quality. Flexibility.

HRM Theories:

HRM theories are the connection between business strategy and HRM policies to have
the ultimate performance and that is achieved by putting into consideration the environment and circumstances of an organization (Contingency Theory), strategic development of an organization (The Resource Based View) and the ability, motivation and opportunities (AMO theory).

Characteristics of HRM:
- Policies and communication - Management of people strategy. - Focusing on business values. - Focus on line managers. - Mutuality between management and employees. - Continual employment relationship.

- People treated as assets or human capital.

Skills & abilities

Employee's behaviours

Employees' satisfaction & performance

Factors affecting on HRM practices and policies: - The external environment. - The internal environment.

- The ethical dimension:

1. Maintain equality between employees. 2. Apply fair justice between employees. 3. Rewards are granted basing on performance and as promised. 4. Treats employees as valuable assets not just factors of production. 5. Offer security for the employees as well as offering safety and health. 6. Help them to achieve balance between life and work.

LEWINS CHANGE MODEL

This model defines three stages in the process of change: (1) Unfreezing (2) Change (3) Refreezing It assists organisation change by: Allowing the process to be understood Providing milestones for evaluating progress towards the change Unfreezing

This is the shake up phase perhaps triggered by declining sales or profits. The result is an acceptance that the existing structures and ways are not
working To get people ready for change it is necessary to develop an awareness of the: Necessity of change Nature of change needed Methods planned to achieve the change Needs of those affected

Ways that progress will be planned and monitored

Changing This is the process of devising and implementing the change: Define the problem Identify solutions Devise appropriate strategy to implement change Implement solutions

Refreezing
This is the process of maintaining the momentum of change: Locking in the changes Stabilising the situation Building relationships Consolidating the system Evaluation and support

Preventing any going back to the old ways Refreezing is complete when the new patterns are accepted and followed willingly

Driving forces for change

To avoid Indian Airline going bankrupt Make changes to the Indian Airline operating system to take advantage of the existing opportunities which will see the company move forward.

Rate it
5

Restraining Forces(against change)

Rate It
3

Proposed Change
Staff fears for job security Workers are scared of the disruption that will follow the planned changes since they are already used to the old system and might not be too sure how the new system will benefit them.

The desire to eliminate all possible threats to the company.

The desire to avoid/improve on company weaknesses (technological, economical and operational weaknesses). The desire to move from the HARD to SOFT HRM model.

The aim of the analysis is to see Indian Airline overcome its threats, weakness, take advantage of the existing opportunities and continuously grow as a company .

Workers fear for their job security, having their positions downgraded, having their salaries slashed, being made to work longer hours.

The cost of buying/upgrading of technology. Staffs that might not be able to use the new technology. Government officials who benefit from the present company set-up. Competition from other airlines.

1 3 2

The need for workers to keep their own part of the psychological contract. Privatisation/possible merger with other airlines.

Workers who might not be too sure of how this new model will affect them.

Workers who do not want to keep the contract because they equally suspect that management will not keep theirs.

RESULT

32

Revolting workers who fear for the unknown and the implication of losing government direct support. RESULT

24

FOR: The idea of privatisation/possible merger should be dropped for now as this might worsen the whole situation. Action (1) to (6) should be continued as this will bring the much need change and reposition Indian airline on the path of success. AGAINST: 1. Workers should be educated on way change is needed in the company and should be reassured that the proposed changes will benefit and improve their skills and overall value. 2. Workers should be reassured that their jobs will be secure with the new changes although some will be rendered redundant to enable the company survive (It is much better having some workers lose their jobs and company survives than retaining all staffs and the company will collapse and everybody goes home with nothing). 3. Workers should be involved in the designing of the new practices as this will encourage them to work harder, give them sense of belonging and equally build a closer relationship with the management. The issue of constant strikes will also be eliminated because most issues that would have caused strikes will be taken care of while designing the new practices. 4. Indian Airline management should train and continue to retrain their workers by organising courses and seminar where the workers will be trained by experts on the best practices. The trainings will help improve the workers skills and keep them updated on the modern technology and practices that will enable them remain competitive. 5. The management of Indian Airline should take full advantage of the current issues in HRM like information technology, human capital, added value, talent management and knowledge management. Information technology for instance will do them a lot of good because it will eliminate job duplication, see that only qualified candidate are employed, manage and monitor workers performances, eliminate ghost workers if any, stop the old practice of carrying files from one office to another which is time wasting, manage workers payroll more effectively and storage of vital data etc.

6. Outsourcing and buying of more aircrafts for their generations.

7. Finally for Indian Airline to remain competitive, they must constantly benchmark using the leaders in commercial aviation sector.

From the analysis of the existing structures of the Indian Airline using the
Lewins Force Field Analysis method, it is clear that urgent change is needed for Indian Airline to have any chance of survival. Therefore the management should adopt and implement the above analysis and proposed actions (changes) to their existing structure as that will help them plan, optimise and manage the expected/needed change.

 Michael Armstrong (2009). human resource management practice. 11th ed. London: kogan page limited. p4-163. Kurt Lewin. (1951). Force field analysis. Available: http://www.mbsportal.bl.uk/taster/subjareas/busmanhist/mgmtthinkers/lewin.aspx. Last accessed 24th Oct 2011. Kurt Lewin. (1951). Force field analysis. Available: http://www.change-management-

coach.com/force-field-analysis.html. Last accessed 24th Oct 2011.

Kurt Lewin. (1951). Force field analysis. Available: http://tutor2u.net/business/strategy/changemanagement-force-field-analysis.html. Last accessed 24th Oct 2011. Kurt Lewin. (1951). Force field analysis. Available: http://www.mftrou.com/six-sigma-processimprovement.html. Last accessed 24th Oct 2011. Paul Sparrow, Michael Dickmann and Chris Brewster (Kindle Edition - 9 Jan 2009).International Human Resource Management : An European Perspective Cary Cooper, Paul Sparrow, Anthony Hesketh and Martin Hird (Kindle Edition - 30 Apr 2010). Leading HR Derek Torrington, Laura Hall, Stephen Taylor(6th Edition). Human Resource Management

SUBMITTED BY
NAME STUDENT ID

BRUNO RETHINA SWAMY RENISH

DANIEL ONYEBUCHI ONUBOGU INDERJEET SINGH KHALID SALAH ELDIN SALIH MUSTAFA NAIYEJU OLUWAYOMI STEPHEN

4053053

2974006