Strcuture and Design

Furthermore, Air India’s new management team has also worked out a service agreement which
includes key performance indicators and key result areas, according to one of the persons in
know of it. However, the new policy is likely to be challenged by the unions who have already
written to the Chief Labour Commissioner. Unions said that any change in service conditions
will be illegal.
While the management has been looking to change the culture at the airline, some employees
have been reportedly resisting this with support of the unions. Others have been adopting new
processes and behaviours, according to the executives.
"Tatas don't have a hire-and-fire culture. Air India has therefore created indirect recognition
programmes to reward customer-centric behaviours and encourage accountability by taking
ownership of outcomes,” a senior executive told ET.
The cash flows have improved on account of better on-time performance and
improved load factors. There have been no delays in making statutory payments.
Banks also enjoy giving capital to an airline at cheaper rates if the promoter has a
reputation and image like the Tatas," said a senior industry executive.

The airline is also working on improving the work culture. It plans to reward
employees based on merit instead of seniority, the executive said, and added that the
recently announced employee stock option scheme is an attempt to improve
productivity, loyalty and morale of employees.
Under this, Air India has offered around 980 million shares of the company to its
permanent employees as part of a stock option scheme. The shares are also being
offered to the permanent staff of Air India Express as part of the Employees’ Share
Benefit (ESB) Scheme 2022 and are expected to benefit around 8,000 staff.

 None of the over 10,000 employees will be retrenched for the next year
 Employees will be eligible for VRS from the second year onwards with
all benefits
 They can stay in company colonies for six months after the takeover
 Employees will continue to get statutory benefits like PF, gratuity etc.
 Tata group will continue to provide benefits to employees
 50,000 retired employees will continue to get medical benefits under
CGHS and NHIS
 Tata group is expected to continue negotiations with various staff unions
to resolve their pending demands and issues

Similarly, another senior cabin crew of Air India said that the new Air India
management’s decision to inspect cabin staff members’ grooming and
measure their body mass index (BMI) at airports has come across as an
indication that the airline might look to replace certain employees.

She added that in some instances senior cabin crew members were also being
assigned fewer flying hours by the new management.

Some senior pilots working with Air India have also raised concerns with the
new management about shifting their base of operations.

“We hear from several sources that the company plans to transfer pilots from
their original bases to cut down operational costs. While we understand that
cost reduction is vital to the success of our airline, we also believe that the ill
effects of this initiative have not been fully taken into consideration,” the Air
India pilot unions had said in a letter sent to the Air India chairman in June.

The letter also highlighted the pay cut in place for the last two years and said
that if the airline decides to go ahead with these transfers, most of the crew
would be forced to undertake the additional financial burden of procuring and
maintaining another house at the new base.

"Taken together, the progress over the last 12 months has been nothing short of
stunning, even if so much of what we have been working on has been behind the
scenes, building platforms and capabilities so that our future ambitions can take flight.
There is of course much more that needs to be done, and everyone - internally and
externally - is hungry for us to do it," Campbell Wilson said.

Started his message by saying "Happy Friday, folks..... and Happy Anniversary, for
today marks the first anniversary since Air India returned to Tata!" Campbell Wilson
extended his deepest gratitude to the employees for the hard work put in over the past
year.

Noting that together they have embarked upon "one of the most ambitious
turnarounds in international aviation history", Campbell Wilson said, "quite
remarkable progress" has been made in a very short space of time.
"I would especially like to acknowledge our erstwhile Air Indians who have
experienced probably the most significant period of change in your entire working
lives, with all the trepidation, uncertainty and adjustment that this entailed.

"And to all of you, whether 'old' or 'new', I thank you for coming together behind this
mission of national importance so quickly and constructively," he said.

According to Campbell Wilson, the airline will continue to communicate and roll out
new things, "being clear about the rising expectations we must all meet, how these
relate to you and how we will support".

"Transforming any organization entails deep cultural shifts, which is why we have put
such a high priority on communicating with you, and on improving policies, practices
and support systems, not just benefits." "Fostering integrity, accountability,
collaboration and trust are keys to future success, and must be guiding lights," he
added.

The airline has revamped its domestic in-flight menu with an assortment of gourmet
meals, appetisers, desserts and refreshing beverages to satiate taste buds. It will also
shortly introduce an enhanced menu on its international routes.

Changing employee mindset — Since the employees at Air India are used to the old
ways of working, they need to bring about a change in their mindset, so that they can
be part of a company which now wa...

Read more at: https://www.hrkatha.com/features/how-to-change-a-culture-from-psu-

to-corporate/

Air India and Tata are culturally different organisations. In such situations, aligning
two different cultures becomes a challenge. Basically, the culture of the entity taking
over should be aligned w...

Read more at: https://www.hrkatha.com/features/how-to-change-a-culture-from-psu-

to-corporate/