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HUMAN RESOURCE MANAGEMENT AT OCEATIC AIRWAYS
Submitted by
Ajit kumar Seth
Nibedita Biswal
Ranjeeb Padhi
Richie Das
Vivek Mohapatra
SCHOOL OF MANAGEMENT,
NIT ROURKELA
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INTRODUCTION
• This case study is based upon a giant company who was the market leader once upon a time.
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BACKGROUND
• 1948- Oceatic airways was originally established as international airways ltd. By M.sayid.
• 1950-It is merged with state owned airline and was renamed oceatic airways.
• 1957-started first schedule international service to London via Cairo and Rome.
• 1959-Launched first jet service(Boeing 707) on London-Huderabad-dacca route.
• 1961-started cross atlanta service from Baharin to Newyork.
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Contd.
• 1997-it was one of the biggest corporation in Asia.
• It was the first airline in Asia to induct Boeing 737 aircraft and also provided helicopter service.
• It has near about 50 aircraft,18000 thousand employees and travel around 100 destinations.
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OBJECTIVES
• To improve the HR practices & co-ordinate various functional areas to receive from financial less lost reputation of the company.
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ISSUES
• Heavy loss of money around $4 billion.
• Loss of company’s brand image and reputation.
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Profits /loss in million
1999 2000 2001 2002 2003 2004 2005
-6
-5
-4
-3
-2
-1
0
1
2
3
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CAUSES
• Stiffer competition from both domestic and international airways.
• The increasing price of the fuel.
• Political interference in the process of recruitment.
• Requirement was not based on proper merit basis.
• Lack of proper trainings to the employees.
• No priority was considered for standby candidates which leads to demotivation of the employees to compete next year with fresher.
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Contd.
• Lack of coordination between HR department and other functional department.
• Each subordinate has to report a multiple number of bosses.
• Tall organization structure.
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STRENGTH
• Strong brand recognition.
• One of the largest public sector company.
• First to operate helicopter service and Boeing 737 in Asia.
• 3 star ranking by skytrax.
• Efficient seat utilization factor.
• Promotions are based on ability and not on seniority.
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WEAKNESS
• Unable to make proper utilization of man power
• Employees are recruited on non merit basis.
• Lack of proper training and control leads employee demotivation.
• Lack of coordination between HR dept. & functional dept. during induction process leads towards wrong forecast of HR needs.
• The appraisal form is unclear.
• Bell curve system for performance appraisal which is not understood by the employees.
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Contd….
• Reporting to more than one boss which creates confusion and unclear picture of the job.
• Improper promotion system.
• Balloon type organization structure leads towards delay in decision making.
• Job descriptions are not clearly explained or written down.
• Lack of efficient employees.
• Inefficient staff cervices and product deliveries.
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THREATS
• Increase in fuel price.
• Competition from other airlines in the both local and global domain.
• Government started giving more incentives to attract greater investment.
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OPPORTUNITY
• Broad image.• Large no. of employeer and their
potential is to be used effectively.• To upgrade standardised & energised
the existing HR system.
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SOLUTIONS
• Need a proper HR planning and involving middle and lower management people along with top management in the decision making process.
• Developing strategies to integrate different HR functions in order to achieve organizational goals.
• Adopting flat organization structure.
• job description should be clear and it should not contain any ambiguity.
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