Government has obligation to provide Public services no matter they are profiting making or not, State roadways, railways and healthcare are some of the entities which government has to run whether the route service they are operating is profitable or not. Till past some most of the government enterprises use to have huge deficit because of the performance inefficiency and performance ineffectiveness
There are inefficiencies in terms of resource utilization (underutilization) and they are ineffective in terms of achieving organization goals. They never had a strategy of optimum utilization of resources, increasing the efficiency and effectiveness and generate profit from there operations. Any Organization has to run for profit but running business only for profit tends to be corrosive so Profit with values would be the right approach
Current development of AIR India seems to justifying the above written though.
If we probe the history of Air India It was on this day On 15 October 1932, J. R. D. Tata, the father of Civil Aviation in India and founder of Air India, took off from Drigh Road Airport, Karachi, in a tiny, light single-engine de Havilland Puss Moth on his flight to Mumbai via Ahmadabad. Today Air India is the 16th largest airline in Asia, serving 28 destinations worldwide, and, with its affiliated carriers, serves over 100 cities. In 1946, Tata Airlines became Air India and in 1953, the company was nationalized by the Government of India.
Well the point to ponder is 56 years of operation and still 16th largest airline in Asia, and only 100 cities. And the worst to happen the defamation that the organization it is facing a bad weather, looking for bailout, deferred salary for the staff, salary cut etc. etc.
The reasons for the downfall of Air India can be as
1) Air India recruitment process and performance appraisal system can be at fault Good companies distinguish themselves by their quality people. The success of any organization comes through its people.Any HR expert will tell you that an organization needs to recruit good people who have the characteristics (talents) to win the market place.
2) Employees can be incompetent and may not have any sense of belonging. Air India might have not thought of ‘cost leadership’ because of its employees’ low productivity and ‘poor’ cost awareness. It employs 600 persons for running and maintaining one air craft whereas Singapore Airlines employs just 27 persons for a similar air craft. Yet Singapore Airlines is rated as No.1 airlines in terms of performance.
3) Ineffective Operations Main function of the Operations Management of any organization is to create a competitive edge by 15 – 20 % in terms of costs by operational excellence so that the organization can fight its competition in the market place effectively. This seems to be absent in Air India for the last 4 decades.
4) Lack of disciplinary action No disciplinary action was ever reported against the erring pilots who went on strike every time the Management attempted some disciplinary action as a result, the pilot associations /unions practiced their arm-twisting tactics as often as they could and brought the Management on their knees. Finally the management could never think of any disciplinary action against them at all. Hence accountability for performance was totally lost causing huge losses to the airlines
5) No service orientationLike nationalized banks, customer service is something unknown to Air India employees. Instead, the pilots & air-hostesses were behaving like bosses and the passengers were virtually treated like slaves in the mid-air.
There may be many more reason because of which the bottom line may have got eroded. If the Organization would have been in profit it could have served the people in a better way, still we are way behind the developed countries in terms of air transport. There is little air connectivity within the cities across the country. Air transport is a basis infrastrure if we want the cities to grow and industrialization to happen across the country. The responsibility lies majorly with Air India because the private players would be interested to operate only on profitable routs. Somebody needs to take the responsibility of providing air connectivity in / with all the major cities of India
So I wish Air India should stand up again. Because embarrassing delays and technical faults that have led passengers to turn to private carriers with state-of-the-art planes can be regained by adopting good HR Practices and Operational efficiency.
References
http://timesofindia.indiatimes.com/Govt-to-bail-out-leaner-trimmer-Air-India/articleshow/4698022.cms
http://home.airindia.in/
http://tharakad.sulekha.com/blog/post/2009/06/should-the-government-bail-out-air-india.htm
http://travelhouseuk.wordpress.com/2009/03/20/air-india’s-hyderabad-chicago-flight-from-march-29/
There are inefficiencies in terms of resource utilization (underutilization) and they are ineffective in terms of achieving organization goals. They never had a strategy of optimum utilization of resources, increasing the efficiency and effectiveness and generate profit from there operations. Any Organization has to run for profit but running business only for profit tends to be corrosive so Profit with values would be the right approach
Current development of AIR India seems to justifying the above written though.
If we probe the history of Air India It was on this day On 15 October 1932, J. R. D. Tata, the father of Civil Aviation in India and founder of Air India, took off from Drigh Road Airport, Karachi, in a tiny, light single-engine de Havilland Puss Moth on his flight to Mumbai via Ahmadabad. Today Air India is the 16th largest airline in Asia, serving 28 destinations worldwide, and, with its affiliated carriers, serves over 100 cities. In 1946, Tata Airlines became Air India and in 1953, the company was nationalized by the Government of India.
Well the point to ponder is 56 years of operation and still 16th largest airline in Asia, and only 100 cities. And the worst to happen the defamation that the organization it is facing a bad weather, looking for bailout, deferred salary for the staff, salary cut etc. etc.
The reasons for the downfall of Air India can be as
1) Air India recruitment process and performance appraisal system can be at fault Good companies distinguish themselves by their quality people. The success of any organization comes through its people.Any HR expert will tell you that an organization needs to recruit good people who have the characteristics (talents) to win the market place.
2) Employees can be incompetent and may not have any sense of belonging. Air India might have not thought of ‘cost leadership’ because of its employees’ low productivity and ‘poor’ cost awareness. It employs 600 persons for running and maintaining one air craft whereas Singapore Airlines employs just 27 persons for a similar air craft. Yet Singapore Airlines is rated as No.1 airlines in terms of performance.
3) Ineffective Operations Main function of the Operations Management of any organization is to create a competitive edge by 15 – 20 % in terms of costs by operational excellence so that the organization can fight its competition in the market place effectively. This seems to be absent in Air India for the last 4 decades.
4) Lack of disciplinary action No disciplinary action was ever reported against the erring pilots who went on strike every time the Management attempted some disciplinary action as a result, the pilot associations /unions practiced their arm-twisting tactics as often as they could and brought the Management on their knees. Finally the management could never think of any disciplinary action against them at all. Hence accountability for performance was totally lost causing huge losses to the airlines
5) No service orientationLike nationalized banks, customer service is something unknown to Air India employees. Instead, the pilots & air-hostesses were behaving like bosses and the passengers were virtually treated like slaves in the mid-air.
There may be many more reason because of which the bottom line may have got eroded. If the Organization would have been in profit it could have served the people in a better way, still we are way behind the developed countries in terms of air transport. There is little air connectivity within the cities across the country. Air transport is a basis infrastrure if we want the cities to grow and industrialization to happen across the country. The responsibility lies majorly with Air India because the private players would be interested to operate only on profitable routs. Somebody needs to take the responsibility of providing air connectivity in / with all the major cities of India
So I wish Air India should stand up again. Because embarrassing delays and technical faults that have led passengers to turn to private carriers with state-of-the-art planes can be regained by adopting good HR Practices and Operational efficiency.
References
http://timesofindia.indiatimes.com/Govt-to-bail-out-leaner-trimmer-Air-India/articleshow/4698022.cms
http://home.airindia.in/
http://tharakad.sulekha.com/blog/post/2009/06/should-the-government-bail-out-air-india.htm
http://travelhouseuk.wordpress.com/2009/03/20/air-india’s-hyderabad-chicago-flight-from-march-29/