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“A STUDY ON INTERPERSONAL RELATIONSHIP AT

WORKPLACE

AT AIRPORT AUTHORITY OF INDIA, CHENNAI”

SUBMITTED BY

ARCHANA DAMODARAN

[Reg.

No. 8W0059]

K. MITOO

[Reg. No. 8W0061]

M. SUGANTHA
[Reg. No. 8W0050]

A PROJECT REPORT

Submitted to the

FACULTY OF MANAGEMENT STUDIES

In partial fulfillment of the requirements for the

award of the degree

OF

BACHELOR OF BUSINESS

ADMINISTRATION

SHRIMATHI DEVKUNVAR NANALAL

BHATT

VAISHNAV COLLEGE FOR WOMEN

(Autonomous), Accredited with ‘A’ Grade by

NAAC

Chromepet, Chennai-600044.

December 2009

CERTIFICATE

This is to certify that Ms.ArchanaDamodaran [Reg.No. 8W0059], Ms. K. Mitoo

[Reg.No. 8W0061] and Ms. M. Sugantha [Reg. No. 8W0050]

Bachelor of Business Administration, students of ShrimathiDevkunvarNanalal

Bhatt Vaishnav College For Women, Chromepet, Chennai, have undergone an
internship program and have submitted a report on the topic “A STUDY ON THE
INTERPERSONAL

RELATIONSHIP

AT

WORKPLACE” conducted at Airport Authority of India, Chennai, for a period of

one month from 23.11.2009 to 24.12.2009.

PLACE: CHENNAI

DATE:

Signature
DECLARATION

We -Ms.ArchanaDamodaran [Reg.No. 8W0059], Ms. K. Mitoo [8W0061] and Ms.

M. Sugantha [Reg. No. 8W0050] are bonafied students of
ShrimathiDevkunvarNanalalBahattVaishnav College For Women, Chromepet,
Chennai. We would like to declare that the project entitled “INTERPERSONAL
RELATIONSHIP AT WORK PLACE” conducted at Airport Authority of India,
Chennai, is submitted by us in partial fulfillment of the requirement for the award
of degree of Bachelor of Business Administration (BBA) is our original work.

PLACE: CHENNAI

DATE:

Signature

ABSTRACT

The project work entitled Interpersonal Relationship with special reference to the
Airport Authority of India, Chennai emphasis on the various factors that are
concerned towards the Interpersonal relationship of the employees.

The first skill for managers to understand and practice is interpersonal

communications or enhanced interpersonal relationship, because it is the
foundation for all actions in the workplace and it allows the supervisor or
manager an opportunity to build relationships with the overall workgroup without
alienating anyone in the work environment. Working with diverse groups of
people requires a tremendous amount of interaction. If these interactions are
positive, they can help create the right workplace climate, attitudes, beliefs and
behaviors. This makes the foundation for the need of this study.

The analysis has been made mainly based on Primary data that is the employee
opinion survey method using questionnaires and personal interview. We have
taken a sample size of 50 and used the sampling method to select the samples
from the total population. We have used various diagrams and charts to make
the explanation clear and easily understandable.

The study gives the opinion of the employee towards interpersonal relationship
condition, existing at Airport Authority of India, Chennai, while also getting an
opinion about their satisfaction towards their organization.

A mystique still exists around the concept of interpersonal relationship.

Methodology proposed in the report used both qualitative and quantitative
methods determining the existing interpersonal relationship prevailing in the
company, at some moment in time requires the understanding of the company
values, practices, and artifacts, and of the core task defined by them, by
clarifying these elements and attempt is made to clarify the underlying
assumption prevailing in the company.

ACKNOWLEDGEMENT
We use this opportunity to extend our cheerful thanks to the people behind

the success of the project.

We deem it a great pleasure to thank our beloved Principle Dr. [Tmt] T. Sumitra,
M.Com, M. Phil, Ph.D., for having permitted us to undertake this project work and
for giving us necessary facilities and timely help in carrying out this successfully.

We express deep and whole hearted gratitude and sincere thanks to our Head of
Department Mrs. D. Lalitha, M.Com, M. Phil, for her invaluable guidance and
effort taken to bring out the project successfully.

Firstly we would like to thank Management of Airport Authority of India,

Chennai for providing us an opportunity to do our Internship Project.

We express our gratitude and heartiest thanks to Mr. R. Prabhu, DGM [Pers], Mr.
K. Jebakumar, Sr. Manager [Pers] and Mrs. S. Chitralekha, Manager [Pers] of AAI,
Chennai who have helped us in finalizing this internship training.

Our special thanks to Mrs. G. Shanthi, Sr. Superintendent, who has given us a
tremendous support and helped us to complete the internship training. We also
thank Mr. E. Manimozhiyan, Assistant [Office], who has shown enthusiasm
throughout the project and gave full assistance for the completion of this project.

We would also like to express our heartfelt gratitude and sincere thanks to

parents and friends, who have inspired a lot for doing this project.

Date:

Place:

Signature
TABLE OF CONTENTS

CHAPTER

TITLE

PAGE

INTRODUCTION

1.01

Human Resource

Management

1.02

Interpersonal Relationship

2
PROFILE

2.01

Industry Profile

2.02

Company Profile

About the Study

3.01

Need of the Study

3.02

Objective of the Study

3.03

Scope of the Study

3.04

Review of research

Literature

3.05

Research Methodology

a,

Research Objective

b,

Research Design

c,

Research Instrument

d,

Sampling Design

e,

Method of Data collection

f,

Tools Used

DATA ANALYSIS AND

INTERPRETATION

FINDINGS AND

SUGGESTION

CONCLUSION

6.01

Webliography

6.02

Bibliography

6.03

Questionnaire

MANAGEMENT

It is necessary to understand the term ‘Management’ before starting our

discussion on ‘Human Resource Management’.

Management is basically concerned with the performance of planning,

organizing, directing, co-ordination and controlling, which, in fact, are its main
functions. Management is also regarded as the art of getting things done through
others. It is not possible for any individual to do all the work himself. The work is
always shared with others. In a household, for example, the head of the house-
the father, earns for the family maintenance. The lady of the house manages the
kitchen and so on. Similarly, in a bank there are different individuals to look after
cash, savings bank account, fixed deposit, current account, recurring deposit
account and so on. The overall control lies with the Bank Manager. Thus, it
becomes clear that the work is assigned to many in any work place and
responsibilities are fixed on them. The person assigning the work, i.e., the
manager, knows how to get things done through others, i.e., subordinates. A
manager who is unable to make his subordinates work cannot be a successful
manager.

INTRODUCTION

TO

HUMAN

RESOURCE

MANAGEMENT

For the successful functioning of any business organization, finance, machines,

materials and manpower resources are essential. Of these various resources, the
manpower of the human occupies a very important place in view of its distinctive
characteristics. The term ‘human resource’, with reference to an organization,
refers to its employees. Commitment, devotion, enthusiasm, energy, interest,
intelligence, etc., of a person determine his performance. A manager can only
hire the labour of an employee but not these qualities. Human resource alone
can be creative. Every individual is blessed with certain creative skills that help
him to bring
out something unique. The behavior of the human resource is also highly
unpredictable. There exists no method by which a person can read the mind of
another. While all other resources depreciate in value with the passage of time,
the value of human resources alone appreciates. A person with greater work
experience has more value to an organisation. The very fact that most
establishments prefer experienced hands proves this point. In view of these
unique characteristics, management of human resource is always a challenging
task.

Definition of Human Resource Management [HRM]

“It is that part of the management function which is concerned with people at
work and with their relationship within an enterprise. Its aim is to bring together
and develop into an effective organisation the men and women who
make up an enterprise and having regard to the well-being of an individual and
of working groups, to enable to make their best contribution to its success”- The
British Institute of personnel Management.

The above definition makes it clear that human resource management is

basically concerned with the task of procuring, developing, maintaining and
utilising the manpower resource effectively so that the objectives of the
enterprise can be fruitfully realised.

Distinction between Human Resource Management and

Personnel Management:

The following points of distinction may be made between human resource

management and personnel management:

Human Resource Management

Personnel Management
1. Contemporary management

experts use this name.

2. The term, when used in a

broader sense, refers to the
task of managing people
belonging to different sections
of the society.

3. It has relevance not only for a

business organisation but for
a government as well.

4. The employee is seen as a

resource of the enterprise like
any other resource.

5. Measures are taken for the

overall progress of the
employee i.e., his economic,
social and psychological
needs are fulfilled.

6. The amount spent on the employee is viewed as an investment.

7. The term has wider scope.

1. This is a conventional name.

2. The term, however used, refers

to the task of managing the
employees of the concern.

3. It is relevant mainly for a

business establishment.

4. Employee is seen as a
commodity that can be
purchased for a price.

5. Measures are taken to satisfy

the economic needs of the
employee mainly.

6. The amount spent on the employee is only seen as expenditure incurred.

7. The term has limited scope.

•
Importance of Human Resource Management [HRM]

The importance of HRM to any particular organisation may be explained as

follows:

1.

It helps the organisation to identify correctly its manpower

needs: The manpower needs of an organisation will have to be correctly

determined. As amount spent on human resource is deemed an investment, it is

necessary to determine the number of men required for doing the various jobs in
the enterprise accurately so that investment in human resource will be at the
optimum level.

2.

It ensures that the organisation does not suffer from either

surplus or shortage of manpower: It is further important that the

number of persons employed in the organisation at any given point of time

should neither be more nor less than what is actually required. HRM helps to do
away with the problem of both surplus and shortage of labour.

3.

It facilitates the selection of the right man for the right job:

HRM ensures selection of the right man for the right job. It recognises the fact
that if a candidate is overqualified for the job, he will not have a positive attitude
towards work and on the other hand, if he is under qualified, he cannot carry out
the task assigned.

4.

It focuses attention on the development on the skill of every

individual in order to make him up-to-date: Every person in the

workplace has to update his knowledge and skill in tune with the development in
work methods. HRM takes note of the fact that a person who does not update
himself will become outdated.

5.

It recognises the need for the appraisal of the employee’

Performance: Performance appraisal is an integral part of human resource

management. Unless the performance of the employees is periodically reviewed,

it will not be possible for the employer to know their level of efficiency.
6.

It considers the need to provide incentives to the employees

performing well: Employees who are very good in their work, need

inducement in the form of incentives. These incentives may be financial as

well as non-financial. HRM does recognise the fact that if good workers are

not suitably rewarded, they may lose interest in their work.

7.

It gives utmost importance to securing a favorable employee

attitude: The attitude of the employees towards work is a crucial factor

determining performance. HRM makes an earnest attempt to secure a favorable

employee attitude. This is done by providing the employees with proper working
environment. Counseling is provided to those employees who undergo stress.

8.

It emphasises the need for good human relations in every

workplace: HRM places emphasis on cordial human relations. Conflicts are

unavoidable in a workplace. But such conflicts shall not be allowed to

damage inter-personal relationships.

9.

It provides scope for collective bargaining: The employer shall

encourage the employees to form a union in the workplace. This will give the
employees the benefit of collective bargaining. In the absence of such a union, if
any individual has certain grievances, he may find it difficult to represent the
same to the management in his personal capacity.

Objectives of Human Resource Management

The main objectives of HRM are as follows:

1.TO make an optimum utilisation of the human resource of

the organisation: By this we mean that every individual in the

enterprise shall work to his potentials. Only then the amount spent on

human resource will be justified.

2.To ensure that the organisation has the required number of

staff: The objective here is ti do away with the problem of both

surplus and shortage of labour. Surplus labour would mean higher labour cost
and inefficiency. Shortage of labour would mean that the organisation is ill-
equipped to cope with the volume of work.

3.To establish and maintain a sound organisation structure:

HRM aims at dividing the organisational tasks into different functions, jobs and
positions. The authority and responsibility associated with each such position is
clearly defined.

4.To reconcile personal and organisational goals: There is often a

clash between individual goaland organisational goal. HRM aims at integrating

personal and organisational and goals by guiding the employees to work with a
sense of involvement, commitment and loyalty towards the enterprise.

5.To provide scope for the development of personnel: HRM

provides scope for the employees to enrich their job knowledge and skill by
undergoing relevant training programmes. Employees need to update
themselves in tune with the requirements.

6.To ensure that the employees have higher job satisfaction:

HRM ensures a higher level of job satisfaction among employees by providing

them the kind of work environment that is really conducive. The employees are
assured of equitable remuneration and social security benefits like provident
fund, gratuity, insurance etc.

7.To provide scope for participation in decision-making: Under

HRM, employees are involved in the process of decision-making. The decisions

binding on employees are made with their participation. In other words, the
management does not take unilateral decisions. As employees are involved in
decision-making, they extend their support to the implementation of any
decision and do not show resistance.

INTRODUCTION TO INTERPERSONAL RELATIONSHIP

AT WORKPLACE

Relationships at workplace are different from those that we create and develop
in our day to day life. Just like our personal relations, our professional relations
are also based on trust, faith, and respect. Both types of relations require
investment of time. However, basic differences between our personal and
professional relations are as follows:

1. Relations at workplace are time-bound and can or cannot be permanent or

long-term based.
2. Though based on common vision and focused on similar goals, relations at
work-place require one to be competitive and sometimes even compete with one
another to stay ahead.

3. There can only be a possibility of mutual trust, faith and respect and it

cannot be one-sided.

4. People involved in workplace relations should have High Emotional Quotient

and should be able to differentiate between personal and professional emotions.

SCOPE OF THE INTERPERSONAL RELATIONSHIP

Based on above definitions of Interpersonal relationship, the scope of

Interpersonal relationship can easily been delineated as follows:

Labour relations, i.e., relations between labour union and

management.

Employer-employee relations i.e. relations between management and

employees.

The role of various parties viz, employers, employees, in maintaining

interpersonal relations.

The mechanism of handling conflicts between employers and

employees, in case

conflicts arise.

The main aspects of interpersonal relations can be identified can be

identified as follows:

Promotion and development of healthy labour-management relations.

Maintenance of industrial peace and avoidance of industrial strife.

•

Development and growth of industrial democracy.

OBJECTIVES OF INTERPERSONAL RELATIONSHIP

The primary objective of interpersonal relationship is to maintain and develop

good and healthy relations between employees and employers or operatives and
management. The same is sub- divided into other objectives. Thus, the
objectives of Interpersonal relationship are designed to:

Establish and foster sound relationship between workers and

management by safeguarding their interests.

Avoid industrial conflict and strikes by developing mutuality among the

interests of concerned parties.

Keep, as far as possible, strikes, lockouts and gheraos at bay by

enhancing the economic status of workers.

Provide an opportunity to the workers to participate in management

and decision making process.

Raise productivity into organisation to curb the employee turnover and

absenteeism.

Establish and nurse industrial democracy based on labour partnership

in the sharing of profits and of managerial decisions.

TYPES OF RELATIONS AT WORKPLACE:

Types of relations that can exist at workplace are:

a) Employer-Employee
b) Manager-Subordinate (or rather Head – Subordinate)
c) Colleagues
d) Employee – Internal Service Provider (Finance, HR etc)
e) Employee – External

Positive workplace relations rely on three skills:

1. Having a good understanding of the person (people) that you have

relations with;

2. Seeking first to understand others and then to be understood

(Empathetic Listening); and

3. Using positive communication strategies.

Good Understanding

Having a good understanding of others helps us adjust our behaviour to be able

to get along well with them, thereby building good rapport. Understanding
someone's uniqueness can be accomplished by having awareness that people
have different personality behavioral styles. Each of these styles has distinct,
predictable and observable behaviour patterns. Once you understand these
personality styles, you will have the ability to get along with almost anyone.
Personality style studies have been around for years. There are several
modalities, however the one chosen is that of Dr. Tony Alessandra, where four
dominant behavioral styles are Director, Socializer, Thinker or Relator1. If we
take the advice of Dr. Alessandra, we can adopt a rule more superior to the old
golden rule, namely the Platinum Rule. It says, "Do unto Others as They Would
Have You Do unto Them", or more simply stated "Treat Others as They Wish to
Be Treated".

Once you learn about the characteristics of each dominant personality style, you
can quickly learn to read the person with whom you are dealing, and make minor
adjustments to your own behaviour to relate better with that person. For
example, a Director style is very direct and to the point in their communication.
Their key desire is results. So if we approach a Director in a conversation to
request money for our budget, we should use a strategy of being direct and
showing them how giving us the money would benefit the bottom line results.
I.e. "Bob, I need another $5,000 by Friday to ensure that

we have the infrastructure in place to accommodate the large volume of sales

projected by our sales department." Short, sweet, and to the point, indicating the
results with the request - just as a Director wants to hear it. We are in a much
better opportunity of being successful with our request if we meet our audience
on their personality style turf, even though we may be of a different personality
style. This is more positive, more productive and much more profitable. Try it!
First you will need to learn more about personality styles, however as you learn
to listen for clues from other people, the better trained you will become at
reading people before engaging in conversation. This leads us into the next step
to good relations - Empathic Listening.

Empathetic Listening

"The dialogue of the deaf", as described by Dr. Stephen Covey in 7 Habits of

Highly Effective People, indicates that most of the time we don't communicate,
we just take turns talking. Since the basic need of a human being is the need to
be understood, listening is more important than talking when in conversation
with someone. Real empathic listening means that you are doing more than
hearing someone's words. It means that you seek to understand what they are
saying and will provide feedback once you have heard what they are telling you.
This ensures that you understand what has been said and that the person
speaking feels like they have been understood. When we feel that we have been
understood, we are likely to feel better about the relationship, resulting in more
productive relations. The next time you have an opportunity to communicate
with someone, tell him or her that you would like to listen to them first, giving
you the opportunity to gain a good understanding of what they are
communicating to you. Once you offer feedback to what you have heard, and the
speaker feels that they have been understood, you will be in a good position to
begin the final step of building strong and positive relations - Positive
Communication.

Positive Communication

Positive communication is productive because it fosters some of the key

fundamentals of successful workplace relations including, trust, honesty,
integrity, nurturing, productivity, and satisfaction. At this point in your
communication with someone you would have an understanding of their
personality style, and have empathically listened to them making them feel that
they have been understood. Forming positive messages is more attainable when
you can 'begin with the end in mind', meaning you have an idea in your mind of
what the positive relationship would look like. Once you have this goal of the
communication in mind you are in a better opportunity to attain that goal.
Strategies recommended for positive relations include

making the other person feel good about themselves and their contribution.
People feel good about their employment when they are recognized in a positive
and genuine way. Therefore, positive communication can start with a genuine
compliment and carry forward from there. We should use the "sandwich
technique" when communicating something that is constructive, which
sandwiches the constructive criticism between two genuine positive statements.
See an explanation of 'The Sandwich Technique' in an article "It's what you Say
and How You Say it"2.

To recap, these positive workplace relations techniques - understanding who it is

you are communicating with, empathically listening to them first, and returning
some positive communication - your relations are sure to be more positive,
productive and profitable. Although these points are pretty much common sense,
they are not necessarily common practice. Make a conscious effort to put them
into play in your workplace and your personal life, and reap the benefits that
strong and positive relationships have to offer.

IMPORTANCE OF WORKPLACE RELATIONSHIP

Reduction in Industrial Disputes – Good interpersonal relationship

reduces the industrial disputes. Disputes are reflections of the failure of basic
human urges or motivations to secure adequate satisfaction or expression which
are fully cured by good interpersonal relationship. Strikes, lockouts, go-slow
tactics, gherao and grievances are some of the reflections of industrial unrest
which do not spring up in an atmosphere of industrial peace. It helps promoting
co-operation and increasing production.

High morale – Good interpersonal relations improve the morale of the

employees. Employees work with great zeal with the feeling in mind that the
interest of employer and employees is one and the same, i.e. to increase
production. Every employee feels that he is a co-owner of the gains of industry.
The employer in his turn must realize that the gains of industry are not for him
alone but they should be shared equally and generously with his employees. In
other words, complete unity of thought and action is the main achievement of
interpersonal relationship. It increases the place of employees in the society and
their ego is satisfied. It naturally affects production because mighty co- operative
efforts alone can produce great results.

Mental Revolution – The main object of interpersonal relation is a

complete mental revolution of workers and employees. The industrial peace lies
ultimately in a transformed outlook on the part of both. It is the business of
leadership in the ranks of workers and employees to work out a new relationship
in consonance with a spirit of true

Interpersonal Relationship of the Employees

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Introduction:

Human resource is the impending and vital factor in any organization. In Corporate Sector, the
manpower is implicated in all aspects of its functioning. The human resource has got specific
features like talent, creativity, Leadership, flexibility and capacity to improve the potential in their
work. Such factors lack in case of machineries and other fixed assets. The other important features
of the human resource are that the human factor is susceptible to emotions, feelings, moods,
environmental situations, conflicts and other factors. To become conscious, Effective planning,
organizational strategy and the attitude of leadership from the managers are needed. HRM
Programmes must aim at motivation of employees in the execution of their work and at increasing
the potential of the employees to meet the anticipated changes and challenges in their job. This
must lead to individual development and career development of the staff of the organization.

The major objectives of HRM are enumerated below:

To help the organization reach its goals: HR department like other departments in an
organization exists to achieve the goals of the organization first and if it does not meet these
purposes, HR department (or for that matter any other unit) will wither and die.

To employ the skills and abilities of the workforce efficiently: The primary purpose of HRM
is to make people's strengths productive and to benefit customers, Stockholders and employees.

To provide the organization with well trained and well motivated employees: HRM
requires that employees are motivated to exert their maximum efforts that their performance be
evaluated properly for results and that they be remunerated on the basis of their contributions to
the organizations.

To increase to the fullest employee's job satisfaction and self actualization: It tries to
timely and stimulates every employee to realize his potential. To this end suitable programs have
to be designed aimed at improving the quality of work life(QWL).

To develop and maintain quality of work life: it makes employment in the organization a
desirable, personal and social situation. Without improvement in the quality of work life it is
difficult to improve organizational performance.

To communicate HR policies to all employees: It is the responsibility of HRM to communicate

in the fullest possible sense; tapping ideas, opinions and feelings of customers non customers
regulators and other external public as well as understanding the views of internal human
resources.

To be ethically and socially responsive to the needs of society: HRM must ensure that
organizations manage human resource in an ethical and socially responsible manner through
ensuring compliance with legal and ethical standards.

People have always been central to organizations, but their strategic importance is growing in
today's knowledge based industries. An organization's achievement more progressively depends on
the knowledge skills and abilities (KSAs) of employees particularly as they help establish a set of
core competencies that distinguish an organization from its competitors. With suitable HR policies
and practices an organization can hire, develop and utilizes best brains in the marketplace realize
its professional goals and deliver results better than others.

Furthermore, Human resources management helps an organization and its people to realize their
respective goals thus:
At the Institution levels:

1) Good human resource practices can help in attracting and retaining the best people in the
organization. Planning alerts the company to the types it will need in the short medium and long
run.
2) It helps in training people for challenging roles, developing right attitudes towards the job and
the company promoting team spirit among employees and developing loyalty and commitment
through appropriate reward schemes.

At the individual level: Effective management of human resources helps employees thus:

1) It promotes team work and team spirit among employees.

2) It offers excellent growth opportunities to people who have the potential to rise.
3) It allows people to work with diligence and commitment.

At the society level: Society, as a whole is the major beneficiary of good human resources
practices

1) Employment opportunities multiply.

2) Scarce talents are put to best use. Companies that pay and treat people well always race ahead
of others and deliver excellent results

At the national level: Effective use of human resources helps in exploitation of natural, physical
and financial resources in a better way. People with right skills, proper attitudes and appropriate
values help the nation to get ahead and compete with the best in the world leading to better
standard.

Importance of HRM

Good HR practices help:

1)attract and retain talent

2) train people for challenging roles
3) develop skills and competencies
4) promote team spirit
5) develop loyalty and commitment
6) increase productivity and profits
7) improve job satisfaction
8) enhance standard of living
9) Generate employment opportunities.

From the aforesaid discussion it is felt that, all corporate undertakings must carry out the
functions of Human Resource Management without any hesitation. This will help them to maximize
ROI.

Read more: http://www.articlesbase.com/human-resources-articles/goal-and-magnitude-of-hrm-need-

of-the-hour-3504790.html#ixzz16rdd3MQj
Under Creative Commons License: Attribution
HRM and Training for Indian Airlines
Industry
Submitted by profpadhy on Mon, 02/23/2009 - 21:45

TRAINING FACILITIES: Indira Gandhi RashtriyaUranAkademi was set up at Fursatganj,

Uttar Pradesh to standardize and improve the flying training facilities in the country. Till
January 1997 it had trained 289 pilots on fixed wing aircraft and 20 pilots on rotary wing
aircraft.
Flying / gliding training clubs was started on December 31, 1996, besides the above
Academy, 41 flying clubs / institutes and their branches including nine private institutes were
imparting flying training. Five gliding clubs, seven gliding wings of flying clubs and a
government Gliding Centre, Pune, were imparting training in gliding.
GENERAL INFORMATION ABOUT AVIATION INDUSTRY: Till recently Indian
Airlines had a monopoly in the sector. However, in 1993 the skies opened for private
participation after which 8 airlines commenced operations in this sector. Of these, only two
have survived - Jet Airways and Sahara Airlines. Another airline, called Crown Express, has
very recently got an approval from the government to start domestic operations. Modiluft,
which is re-entering the sector, will be renamed as Royal Airways in its new form.
EXTENSIVE ENGINEERING INFRASTRUCTURE:
Maintenance base
A300 MUMBAI
A320 DELHI & HYDERABAD
B737 DELHI
DO228 KOLKATA
COMPREHENSIVE TRAINING INFRASTRUCTURE
-Operations Training at CTE
-Cockpit Crew
-Flight Dispatchers
-Engineering Training School
-Cabin Crew training School
-Commercial Training College
-Management Training Center
-Ground Support Training School
OTHER KEY FACTS
• Indian Airlines Ltd. has an equity base of Rs. 105 Crores.
• The Employees strength of IAL as on 31st March 2000 is 21,173.
• During the past seven years IAL’S contribution was around Rs. 275.38 Crores to the central
exchequer and Rs.715.36 Crores to the state exchequer, by way of duty on aviation fuel and
sales tax etc.
1990 onwards: UNEQUAL COMPETITION FROM PRIVATE AIRLINES
With the commencement of open-sky policy, private airlines entered the fray. The private
airlines were initially allowed to concentrate on the profitable trunk routes and the resultant
loss to IAL was approx. Rs: 150 Crores. Since traditionally it is profit from these trunk routes
that had subsidized the remaining 60% routes, which were loss- making and cutting off
operations on these routes would mean immense hardship to the people in far-flung areas like
the northeast, Andaman, J & K etc.
1993 MERGER OF VAYUDOOT WITH INDIAN AIRLINES:
In may 1993, Vayudoot, with an accumulated loss of Rs: 207 Crores and an annual loss of
Rs.15 Crores was merged with Indian Airlines, IAL had to absorb around 1000 of its
employees.
2007 MERGER OF AIR-INDIA WITH INDIAN AIRLINES:
A new company called the National Aviation Company of India Ltd. (NACIL) was
incorporated on March 30, 2007 under Sections 391 and 394 of the Indian Companies Act,
1956 to facilitate the merger. Under the terms of the merger, all the undertakings, properties,
and liabilities of AI and IA were to be transferred to NACIL.
The AI-IA merger was expected to create one of the biggest airlines in the world in terms of
the fleet size. As of May 2007, the two airlines had a combined fleet of 122 aircraft and
34,000 employees including 1,315 pilots. The combined fleet size placed the merged entity
among the top 10 airlines in Asia, and the top 30 in the world. It would also be India's first
airline with more than 100 aircraft.
The new Air India extends a warm welcome on board. Air India holds the unique distinction
of being the world’s first all Jet Airlines. It has always been the endeavour of Air India to
place the most technologically advanced aircraft service discerning passengers. Recently, Air
India has placed the largest order in the history of civil aviation in India for its fleet renewal
and expansion plans. As part of its fleet acquisition program, Air India has ordered 111 new
aircrafts, 68 from Boeing and 43 from Airbus. The order comprises eight B 777-200LR,
fifteen B 777-300ER, twenty seven B 787, eighteen B 737-800, four A 320, nineteen A 319
and twenty A 321 aircrafts, deliveries of which commenced already in 2006, Air India will
boost one of the youngest fleets amongst international airlines. It also takes into account
aircrafts like B 747- 400, A 310, ATR 42-320 in its operation.
The merger took place in August 2007, Indian Airlines merged with Air India forming a new
company known as National Aviation Company of India Limited. The merged entity, which
flies under the brand of ‘Air India’, benefits passengers considerably by providing an
integrated international and domestic footprint ensuring seamless integration of flights and
allowing international flights from any domestic point in India and vice versa for the
incoming passengers can now see the unified face of the new invigorated Air India at most
Indian and international airports.
In May 2007, India's Ministry of Civil Aviation announced that Air India Limited (AI),
India's national flag carrier and Indian Airlines Limited (IA), the government owned
domestic airline, would merge with effect from July 15, 2007. The new airline formed by the
merger was to be called 'Air India,' and would operate in both the domestic and international
sectors. The proposal to merge AI and IA had been first mooted in the 1990s. In February
1999, a Parliamentary Standing Committee on Transport and Tourism had recommended the
merger of AI and IA in its report on the 'Functioning of Air India'.
However, the process had formally been initiated only in September 2006, when the Indian
government assigned the duty of preparing the roadmap for the merger to Accenture Inc., a
management consulting, technology services and outsourcing company. After being endorsed
at various levels of the administrative hierarchy, the plan for the merger was finally approved
by the Union Cabinet in March 2007.
The motives for the merger were widely discussed in the media. India was the fastest growing
aviation market in the world, ahead of China, Indonesia and Thailand, as of early 2007. The
number of people traveling by air had been increasing rapidly in the country. The main
reason for this was thought to be the advent of low cost airlines like Air Deccan and Spice Jet
in the country in 2003-2004, which brought air travel within reach of India's large middle
class.
The entry of a number of new airlines had intensified the competition in the aviation sector
by 20. According to information posted on IA's website, the increasingly intense competition
faced by AI and IA from private and global airline companies, was the main reason for the
merger of the two airlines. In addition to helping AI and IA tackle competition, the merger
was expected to result in considerable synergies by integrating routes and streamlining
overlapping facilities and infrastructure.
Accenture had identified significant potential synergies between the two airlines in the areas
of sales and distribution network, fuel procurement, material procurement, passenger
amenities, ground handling and parking facilities. According to a report submitted by
Accenture in late 2006, the merger could result in a 3-4% reduction in costs, and lead to a
revenue increase of around Rs 6 billion initially.
However, the proposed merger was not without its share of critics. Initially there was
opposition from the employees of the two airlines as they feared that the merger would result
in job cuts. The Aviation Minister, Praful Patel, had allayed their fears and assured the
employees unions of the two airlines that employment conditions, wages, seniority and career
progression, would largely remain unchanged. He also said that a grievance redressal
mechanism would be set up to protect employee interests. The government also indicated that
there would be no layoffs.
Despite this, analysts warned that the merger might pose a serious challenge in terms of
integrating the employees of the two airlines, especially as they had followed completely
different operational methods, before the merger. The two airlines also had different fleet
compositions, which might create complications in inventory management, maintenance and
repair establishments, and pilot training.
Analysts also felt that the merger should be followed by a thorough overhaul of the
operations of the airline. KapilKaul, Chief Executive (South Asia) of the Centre for Asia
Pacific Aviation, an airline industry consultancy, had suggested "a partial sale of equity
through an initial public offer to begin with to help induce professionalism and market
dynamics, followed by privatization over the next five years or so."
The Indian aviation industry was headed towards consolidation in 2006-2007. Jet Airways
had already acquired Air Sahara in April 2007. This had been followed by Kingfisher
Airlines acquiring a 26 % stake in Air Deccan in June 2007. The merger of AI and IA
following these was expected to bring about more changes in the dynamics of the industry.\
Details of fleet services operating in India are mentioned at ANNEXURE-I.

Aviation Employers Rankings

The Indian aviation sector is moving at a faster pace. At present, Airports Authority of India (AAI)
operates 127 airports including 13 international airports and 25 civil enclaves in the country. In 2007,
36.47 per cent growth was registered in domestic segment. The domestic aviation sector is expected
to grow at a compounded annual growth rate (CAGR) of 20% over the next five years. The number of
air travelers also increased by a record 38.5 per cent in 2006-07. Cargo traffic is also growing at a
 fast pace at these airports. From the current volume of 1.6 million, cargo growth is expected to reach
9 million MT by 2020, growing at a CAGR of 14%.

By 2020, Indian airports are estimated to handle 100 million passengers, including 60 million

domestic passengers and Cargo traffic of 3.4 million tonnes per annum. Year 2007 was marked by no
accidents, a landmark in seven years. However, certain factors have been hampering the growth of
Indian Aviation Sector like high aviation turbine fuel prices, shortage of skilled labors, rapid fleet
expansion, and infrastructure constraints. Some key players of the sector are JetLite, Air India,
Kingfisher Airlines, GoAir, SpiceJet, and Paramount Airways.

Employment: The Indian aviation sector is likely to generate nearly 2.5lakh jobs by 2010 as fleet
expansion is on the rise. As a consequence of commonwealth games, approximately 10million tourists
will be visiting India by 2010. There is a growing demand for training 1,500 pilots every year due to the
phenomenal growth in the civil aviation sector. With such a robust growth, the sector would be facing a
dearth of qualified commercial pilots, expats and technicians. It is estimated that a requirement of
40,000 cabin crew members will arise in coming five years.

Attrition: Skilled employees are leaving their companies on a large scale thus, resulting in dearth of
talented professionals in the companies. The attrition among pilots and cabin crew is as high as 46 per
cent. Moreover, maximum attrition is observed in employees in age group of 26 to 30 years with
experience of two to four years.

Compensation: The key players are paying hefty salaries to their employees in order to retain them
with the company for long. The salaries offered are at par with the competitors. For example, the
ground staff get salary ranging between Rs 10,000 to Rs 15,000. Similarly, the pay packets of pilots
and cabin crew range from Rs.5 lakh to Rs.6 lakh per month. There is little difference in the pay
packages of state run airlines and private players. Engineers of both carriers are paid between Rs.1
lakh and Rs.2 lakh per month. While some private airlines are even paying their engineers Rs.3 lakh a
month so as to retain talent.

NaukriHub Rankings attempt to rank companies on basis of various HR practices, procedures and
policies prevalent in FMCG industry . Ten companies are selected on random basis and ranked on
various parameters like recruitment practices, retention rates, compensation policies, work culture,
recognition for good work, flexible work timings, et al. The scores are consolidated on the basis of data
collected through recent surveys and studies conducted by renowned names like Business Today, IDC
Data Quest, Hweitt Association, NASSCOM and our own study of the organization.