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Alitalia CAI Employee Satisfaction Survey Results

Based on

“The Boomerang Effect: Careless Downsizing and Survivors Mismanagement Keep Alitalia Grounded” A Term Paper for the Degree of Master of Public Administration
Bowie State University
in cooperation with

Italian Pilots Association

Date:15 Aug 2011
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employee trust/ commitment etc. and • survivors management.) which in turn affects financial performance.  Literacy reviewed for this paper includes studies on:  Downsizing Implementation  Survivors Management  Impact of HR activities on HR outcomes and financial performance  Airline pilots job  Research Questions: Was Alitalia downsizing implemented effectively? Has the new management way of leading and managing change influenced the airline performance?  Sampling Method: Non-probability sampling 2 . social climate between worker and management. HR activities affect organizational performance (HR Outcomes: employee satisfaction. motivation.Theoretical Framework  Research on the effects of downsizing on financial performance shows negative results due to issues related to: • the way downsizing is implemented.

Why pilots? – – – – Pilots play a central role in airline operations Airline pilots job peculiarities Pilots management has safety implications(1) Successful airlines manage their aircrews effectively 3 .Sample Population Selection Alitalia CAI Survivor pilots were selected as the sample population.

half of them are fathers of one or more children. the great majority are married or co-habiting.000+ hours 38% = First Officers 4500-13000 hours 12% = did not provide this information 38%= prior military experience.Sample Population Description A total of 76 valid questionnaires were received. Of all married or co-habiting pilots. either fulltime or part-time (only 20% of them are airline employees). 4 . while a small percentage (30%) are housewives. As far as their family status is concerned. EXPERIENCE • • • • 50% = Captains 7500-15. Most of their wives/partners are employed (70%). • • Only 10% have been relocated after downsizing. • • The majority of pilots who replied were between 40 and 50 years old and have 8-25 years seniority with the airline.

Survey Themes • Downsizing Implementation – Perception of Process – Emotional & Physical Reactions – Impact on Commitment • Employees/Unions Management Relations • Leadership Communication of Goals & Strategies • Work Environment 5 .

Change Management at Alitalia Q3 I was proud to work for Alitalia LAI (before privatization) 1% 8% 0% 26% Strongly Agree Agree Q1 I am proud to work for Alitalia CAI 1% 17% Strongly Agree Agree Neutral 38% 53% Neutral Disagree Strongly Disagree 28% 28% Disagree Strongly Disagree The “lost” pride: 91% to 18% (2) 6 .

transparent and respectful of laid off employees 1% 5% 17% Strongly Agree Agree Neutral Disagree Strongly Disagree 52% 41% Disagree Strongly Disagree Q10 After downsizing implementation You received adequate support from Alitalia CAI HR Dept. to cope with the consequent negative attitudes/emotions (*) 0% 3% Q7 Thanks to downsizing Alitalia CAI today is a leader in the industry in many ways 3% 11% Strongly Agree Agree Neutral 50% 36% Disagree Strongly Disagree 0% 8% 24% Strongly Agree Agree Neutral Disagree Strongly Disagree 65% (*) Expand option 7 .DOWNSIZING IMPLEMENTATION (PART I) Perception of Process Q9 Downsizing was implemented in accordance with established agreements/criteria (*) 1% 1% 5% Strongly Agree Agree Neutral 52% 25% Q8 Internal communication at the time of downsizing were timely.

change in eating habits.(*) 21% 20% Strongly Agree Agree 13% 28% 18% Neutral Disagree Strongly Disagree 43% Strongly Disagree (*) Expand option 8 . ... anxiety.DOWNSIZING IMPLEMENTATION (PART II) Emotional & Physical Reactions Q39 Did you experience guilt since your colleagues were laid off Q40 Surviving mass layoff has affected your morale and motivation 3% Strongly Agree Agree Neutral 13% 4% 15% 3% 25% Strongly Agree Agree Neutral Disagree Strongly Disagree 21% 30% 38% Disagree Strongly Disagree 48% Q41 Surviving mass layoff has affected your health 1% 32% Strongly Agree Agree Neutral Disagree 4% 20% Q42 In the past two years you have experienced one or more of the following: depression.

I have perceived external pressures as interfering with my decision making process 8% 13% Never 20% Strongly Agree Agree Neutral Disagree Strongly Disagree 16% 13% Rarely Sometimes 13% 37% Often Many times Always (*) Expand option 9 .DOWNSIZING IMPLEMENTATION (PART III) Impact on Commitment Q4 I feel more committed to the airline now than I did before downsizing and privatization in 2008 4% 0% 13% 39% Strongly Agree Agree Neutral Disagree Strongly Disagree Q21 The number of hours allocated to study my manuals has remained unchanged after privatization 4% 33% 20% Strongly Agree Agree 5% Neutral Disagree Strongly Disagree 44% 38% Q20 My commitment to maintaining high professional standards has remained unchanged after privatization(*) 9% 26% 28% 17% Q18 In the past 24 months.

.e. personal needs. dignity.EMPLOYEES/UNIONS MANAGEMENT RELATIONS (PART I) Q38 How would you define the quality of the airline's employee/management relations 0% 35% 1% 15% Very Good Good Neutral Bad Very Bad 49% 54% 32% Q24 How satisfied are you with HR Dept communication style 0% 14% Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied Q23 How satisfied are you with HR Practices & Policies (i. respectful of workers' rights..) 0% 1% 6% Very Satisfied Satisfied Neutral Q6 I feel that Alitalia CAI Management cares about its people 0% 4% 8% Strongly Agree Agree 52% 52% 36% Neutral Disagree Strongly Disagree 41% Dissatisfied Very Dissatisfied Q30 How satisfied are you that HR Dept cares and is responding to the issues of most importance to you 0% 30% 1% 11% Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied 58% 10 .

EMPLOYEES/UNIONS MANAGEMENT RELATIONS (PART II) Q37 How would you define the quality of Alitalia CAI industrial relations (Management/Unions) 1% 0% 4% Q36 Do you feel that Unions are effective in representing your interests and protecting your job 3% 8% Very Good Good Neutral Bad 35% Strongly Agree 27% 17% Agree Neutral Disagree Strongly Disagree 68% Very Bad 37% 11 .

COMMUNICATION OF GOALS & STRATEGIES Q17 Alitalia CAI is responding to important INTERNAL issues 3% 0% 9% 38% Strongly Agree Agree Neutral Disagree Strongly Disagree 50% 43% 30% 16% Q13 Alitalia CAI leadership has a clear vision of the future 7% 4% Strongly Agree Agree Neutral Disagree Strongly Disagree Q15 Alitalia CAI leadership has made changes which are positive for me 0% 5% 9% Strongly Agree Agree Q11 I understand how Alitalia CAI stragegy differentiates us from the competition 0% 9% Strongly Agree 17% 28% Agree Neutral Disagree 53% 33% Neutral Disagree Strongly Disagree 46% Strongly Disagree Q2 I am optimistic about my future success with this airline 0% 3% 21% Strongly Agree Agree Neutral Disagree Strongly Disagree Q14 Alitalia CAI leadership has made changes that are positive for the airline 1% 26% 18% Strongly Agree Agree Neutral Disagree 32% 44% 22% 33% Strongly Disagree Q12 I am optimistic about the future of Alitalia CAI Q16 Alitalia CAI Leadership is responding to the important external issues 3% 1% 36% 7% 17% Strongly Agree Agree Neutral Disagree Strongly Disagree 17% 18% Strongly Agree Agree Neutral Disagree 25% 37% 39% Strongly Disagree 12 .

WORK ENVIRONMENT (PART I) Individual Q27 How satisfied are you with Alitalia CAI as a place to work Q26 How satisfied are you with the amount/frequency of informal praise & appreciation from supervisor 24% 0% 11% Very Satisfied 23% Satisfied Neutral Dissatisfied 42% Very Dissatisfied 0% 10% 27% 18% Very Satisfied Satisfied Neutral Dissatisfied 45% Very Dissatisfied Q34 How satisfied are you with your own morale 1% 30% 21% Q35 How satisfied are you that your work gives you a feeling of personal accomplishment 4% 27% 7% Very Satisfied Satisfied Neutral Dissatisfied Very Dissatisfied 41% 11% Very Satisfied Satisfied Neutral 30% 28% Dissatisfied Very Dissatisfied Q28 How satisfied are you with your ability to maintain a reasonable balance between family life & work life 0% 30% 13% 20% Very Satisfied Satisfied Neutral Dissatisfied 37% Very Dissatisfied 13 .

WORK ENVIRONMENT (PART II) Individual (cont) Q25 How satisfied are you with your job security Q5 I feel that people in Alitalia CAI get ahead primarily on the merits of their work 0% 7% 13% 44% Strongly Agree Agree Neutral Disagree Strongly Disagree 14% 0% 14% Very Satisfied Satisfied Neutral 27% Dissatisfied Very Dissatisfied 45% 36% Q29 How satisfied are you that your compensation matches your responsibilities (compared to airlines in your reference group) 0% 35% 7% Strongly Agree 24% Agree Neutral Disagree Strongly Disagree 34% 14 .

it/resources/cms/documents/rass_03_04_11_03.pdf The effects on morale and motivation of the unprecedented denigration media campaign against pilots and flight assistants. aircrew training. The rules of bankruptcy were changed in the middle of the game to meet the government's needs. aircrews Unions had to intervene several times to ask Alitalia CAI Management to implement measures to protect its pilots and flight assistants from radiation exposure. and we look after our staff well” (Wirtz & Johnston. 2008) Alitalia CAI maintained the old Alitalia LAI logo. and the merger with the private airline AirOne. so this result may look worse if one consider that current employees sense of attachment may stem from the airline’s glorious past rather than its present identity. uniforms. 7.cronies.protezionecivile. 4. Ambassador Spogli states: “The Alitalia saga is a sad reminder of how things work in Italy and of PM Berlusconi's rather weak adherence to some of the core principles of freemarket capitalism. leaving its debts to the Italian taxpayers. Under the guise of a rather quaint (and distinctly un-EU) desire to maintain the Italian-ness of the company. the commitment of pilots to exercise “good airmanship”. The way in which this deal was done -. A recently published wikileaks cable from Ambassador Spogli. good HR management. and symbols. 2. if properly managed. Berlusconi had the chance to let this be handled as a business matter. but his involvement probably cost the Italian taxpayers a lot of money. morale and motivation. Thus those measures only delayed laid off pilots “professional death” and inability to sustain their families. preference for Italian buyers. a group of wealthy Berlusconi cronies was enticed into taking over the healthy portions of Alitalia.e. political interference. safe operating procedures. in terms of firms financial performance (Gittel. custom-made laws -provided the world with a clear reminder of Italy's investment climate shortcomings”. confirms pilots perceptions about their airline privatization process. 2009) During the emergency in Japan last March.repubblica.Notes (Results & Analysis) 1. Factors affecting a pilot’s ability to perform his primary task. The books “Up In The Air: How Airlines Can Improve Performance by Engaging Their Employees” and “The Southwest Airlines Way : Using the Power of Relationships to Achieve High Performance” explain how employees. Mr Yap Kim Wah. http://www. the quality of pilots employed.it/dettaglio/alitalia-ecco-la-truffa-di-b/2154169) Government designed social measures to protect laid off employees did not take into account pilots peculiarities. An airline pilot primary task is “to fly the aircraft under his command from the departure airport to destination safely”. Berlusconi pulled this one off. but he chose to politicize it. can make the difference.gov. 6. 3. US Ambassador for Italy back in 2008. (http://espresso. lists among the most important factors contributing to his airline success his people: “We have talented and good people. 5. have not been considered for this study. 15 . of one of the world leading airlines. 2001). Union busting. Vice President of Singapore Airline. and pilots’ operational decision making process) but most of all that pilots are able to exercise their professional skills free of commercial pressure (Paterson. These shortcomings certainly have affected survivor pilots feelings of guilt. the active support received by airline management to operate their aircraft in a professional (safe) manner (i. 2003. good industrial relations.