Pree ASE ANALYSIS Souther Airline (SA) is @ highly professionally managed global player in the civil aviation industry. This company has had a phenomenal growth over the past thirty years Its employee’s strength is around 25,000. SA is known for winning a number of awards for its quality service. It may be mentioried that SA was opposed to be one of the partners with the Tata’s in the Air-India disinvestment deal with Government of India (GOD, which is yet to take shape. It may be recalled that the emerging competitive business environment of the 1970s was the resultant effect of the US deregulation of the airline business, which led to cut throat competition from carriers in Asia Pacific region, resulting in air fare reduction. SA took pains to turn the threat of fierce cut throat competition into. opportunity by providing differentiated service against its immediate val airliners. It projected an image of high value based quality service in all areas of ils operations, including global in-flight telecommunications facilities at the disposal of Passengers, as well as service in ticket reservations, etc. At the operational level, SA effected savings in fuel consumption through a fleet of young air orafis- average age of an SA aircraft being five years against the industry average of eleven years, The SA management was determined to control costs through integrated HR strategies in the sub- systems, namely, performance appraisal and rewards, recruitment and selection, career development, etc. SA uses psychometric tests in the selection of outside candidates. Onlythose who can fit the organizational corporate culture and are also found to be task- oriented are selected. As such, its selection process is quite rigorous and elaborate. Training and Development of employees is given utmost weightage to enable the staff give their best to the job. Career development of staff receives full attention of the management. Line managers play a significant role in imparting training for on-the-job related skill, e.g. skill in operation of enc/ne (computerized numerically controlled/numerically controlled machines), On an average, every employee is given eleven days of annual training. Adequate emphasis is given to development of managerial skills. The corporate office coordinates this activity. SA has a well-knit performance appraisal system for the senior management and the staff. Potential appraisal and career planning of senior cadre management positions is linked to performance appraisal. Juniors are promoted to senior positions as part of their career development plan. Potential appraisal is the basis of staff career progression. There are opportunities for the staff to move horizontally. This helps broadening the experience, which is helpful in career growth. Besides, the staffs are allowed to change their jobs at intervals of four years. SA’s reward system is considered attractive, The company provides medial insurance, stock/share options as well as travel loans. Salaries are not very attractive though, but the total package is attractive and includes performance and profit-linked compensation. So, the pay with benefits attracts outside candidates. The labor turnover rate is well within 3 to 6 per cent, To sum up, SA was faced with a dynamic business environment. As part of its strategy to combat the uncertainty, the company, first of all, aimed at controlling the costs, and achieving market differentiation through strategic quality service. HRM sub-systems were aligned to the strategy for the drive for quality service. Alll efforts were made for the development of employees’ commitment and identification with the company, Recruitment processes were well defined to select the best talents to match the strategic objectives vi is the SA corporate culture. Case Question Elucidate and analyze the case in light of current airline business environment in India and outside the country. Enunciate the profile of the company (SA) with a legitimate SWOT or TWOS analysis. What you suggest to the company despite the fact all activities of the company are aligned with strategic human resource management perspectives, How much strategic human resource initiatives you can sense for analyzing the case. 10 Marks / 400 Words