HR Case Study

In 1932, the seeds of Air India were sown when J.R.D. Tata established Tata Airlines. With a single-engine
de Havilland Puss Moth aircraft, the airline embarked on a journey of connecting cities and dreams. The
year 1947 brought India's independence and a transformation for the airline. Renamed as Air India, it
became a nationalized entity. The 1950s witnessed a remarkable feat as Air India pioneered transatlantic
flights, using the Super Constellation aircraft to connect Mumbai with London via Cairo and Geneva.

With the advent of the jet age in the 1960s, Air India embraced technological advancement. The
introduction of the Boeing 707 jets not only revolutionized air travel but also established Air India as a
premium international carrier. In the 1970s, the airline gained further prominence with the introduction
of the Boeing 747 "Jumbo Jet." This iconic aircraft allowed Air India to offer luxurious services, setting
new standards for in-flight experiences. Through the 1990s and 2000s, the government of India took
multiple steps to modernize the fleet.

In May 2004, Air India launched a wholly owned low-cost subsidiary called Air India Express connecting
cities in India with the Middle East and Southeast Asia. In 2007, the long-awaited merger of Air India
with Indian Airlines formed Air India Limited, enhancing operational synergies and competitiveness.

In 2014, Air India achieved the distinction of becoming the sole Indian airline to join the world's largest
airline alliance, known as Star Alliance. This strategic partnership granted Air India's passengers
privileged access to a wide array of international destinations that were served by fellow partner airlines
within the alliance. Notably, this collaboration also expanded the horizons of Air India's loyalty program,
Flying Returns, ushering in a globalized reward accrual and redemption paradigm.

Over the years, Air India and Air India Express have played pivotal roles in times of national exigencies
particularly in evacuation of stranded Indian nationals worldwide through initiatives like the Vande
Bharat Mission flights during the Covid-19 outbreak.

After decades of being a Govt. owned airline, Tata Group welcomed back its treasured airline after 68
years, post-privatization on 27 January 2022. As part of its plan to restore Air India to its glorious past, it
has laid down a five-year transformation plan known as Vihaan.AI. The immediate focus of the airline has
been on fixing the basics and readying itself for growth (Taxiing Phase), and the medium-to-long-term
focus will be on building excellence and establishing scale to become a global industry leader through a
rigorous change management exercise (Take Off & Climb phases). With the strong brand portfolio and
prestige that TATA group commands in India and overseas, there is immense expectation from customers
to see Air India as a transformed carrier. There has been a paradigm shift in strategy by being highly
customer-centric through the adoption of leading technologies, innovation, and process improvements.
The goal is to position Air India as one of the world’s leading airlines offering international standards of
service, with a strong emphasis on providing the experience of Indian hospitality.

How to maximize integrated human capital to deliver a superior customer experience?

During any merger, there are a lot of moving parts that need to be accounted for. However, one of the
biggest pitfalls of the event comes after it has happened, during the actual merging of the two
businesses, which is commonly referred to as ‘post-merger integration.’ The role of an effective HR
manager is critical as they have a huge task ahead of them in bringing two or more completely different
workforces together in a way that will thrive into the future. This means that if things do not start out on
the right foot, the teams may never fully mesh, causing an increase in churn, the loss of key talent, and -
if things are never addressed - the downfall of the entire business moves.

As Tata Group looks to merge its various investments in the airline industry, the challenge of unifying
workforces from these entities under the same vision is one of the most crucial tasks that the leadership
is focused on.

With a total headcount of 17500 split between seasoned and new-age employees in the ratio of 47:53,
there is a range of challenges that lie ahead as the seasoned employees have been a part of airlines’
operation for a long time, creating a habit of distinct organizational culture. Integrating these employees
with the newly hired batch or those from airlines that operate in a fast-paced modern workplace
environment could lead to clashes in work style, value, and overall organizational fit.

Since employees from different backgrounds are to be united, there will be a need to identify the
differences and similarities in the levels of skills, industry knowledge, and overall expertise. With a
retirement rate of 7-8%, there is a huge opportunity loss in terms of institutional knowledge that
requires the transfer of expertise to happen at a much quicker pace to ensure that overall skill levels are
maintained or improved in the workforce.

To secure a smooth transition of knowledge and skills, it might become imperative to relocate a certain
chunk of seasoned employees from regional offices to the HQ and vice versa, which could lead to some
turbulence in the lifestyle that these employees have become accustomed to. However, it is crucial for
the company’s success that it moves from a regional functionality to a structured one with clear KPIs and
performance management aligned at all levels.

In the context shared above, you are required to present to the board a plan on the following points:

1. What are some of the best practices from the industry that can be evaluated and applied to
integrate diverse workforces from different entities?
2. Roadmap with a timeline on how to create an integrated workforce with a strong sense of
identification with Air India and the common vision. What are the challenges and how to
overcome them?
3. A robust learning and development program to ensure the skills and knowledge are continuously
updated and transferred from seasoned employees to new employees and vice versa.