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8/7/2019 HR In Oceatic Airways
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INTRODUCTION
Oceatic Airways was established in 1948 by M.Sayid, originally
named as International Airways Ltd.
Oceatic Airways enjoyed a monopolistic environment in the
aviation industry. It was the only airline that served both domestic and international
routes.
It is a major airlines of the developing world with a fleet size of
over 50 aircraft and employee strength of more than 18,000.
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CONTD.
Oceatic Airways was one of the biggest corporations in Asia in
1997. It was the first airline in the region to operate scheduled
helicopter services
In 1991, two private airlines SAI and AA were launched intomarket.
Hence encouraged non air travellers and demand was fullfilled
The biggest challenge for durrani was to turn the demand into
profits and change the quality image of the organisation
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HRM SYSTEMS
RECRUITMENT
Done as per the vacancies by respective departmental heads
Employment section advertised the required profiles of job
Final decision was done by selection board
Foreign qualified candidates were directly in pay group
Recruitment was influenced by political leaders
Select in batches ,train at Oceatic training center and then appoint
in various departments
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TRAINING
Asked employee to participate in the training program provided by
the Co.
Imparted training to freshers for about 20 weeks
Trainees need to sign a bond after completion of taining-Notapplicable to administration , refresher/professional
Training need analysis as there was no relation between job and
training
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PERFORMANCEAPPRAISAL
Represented by bell curve
Evaluated by immediate supervisior(reporting officer) and next
supervisior(finalizing officer)
Evaluated by form EAF-2 consists of 6 parts There was a chaos as there was no certainity who is going to
evaluate them
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PROMOTION
Based on ability not on seniority
Depends on nature of contract with the resp. employee and job
position
Acc. to vacancies available Had a tall organizational structure rather a pyramidal
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PROBLEMS
Stiffer domestic and global competition
Expected hike of fuel price
Loss of company brand image and reputation
Operational inefficiencies plunging company profits Heavy loss of money around $4 billion
Tall organization structure
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PROBLEMS
HR Function Problems
Recruitment
Political Influence on hiring decision
Inappropriate allocation of new recruits
Training
Lack of focused induction level trainingLack of need analysis for training
Inadequate training infrastructure
Supervisors disapproval to relieve subordinates for training
Performance
Appraisal
Lack of merit based evaluation
Lack of understanding of the bell curve and unclear appraisal
Very little feedback during the year
Appraiser doesnt measure performance against objective s of
the organization
Promotion
Merit is not the criterion for promotion
Minimum period of five years for eligibility of next promotion
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STRENGTHS
Oceatic airways had successfully established astrong brand recognition.
Five decades of enjoying monopolistic power.
Fleet size of over 50 aircraft and employee strengthmore than 18000.
Oceatic airways travels to over 100 destinations(including international and domestic), spread over
four continent. Oceatic airways continues to be one of the largest
public sector companies in the country, with officesin all major international cities around the world.
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STRENGTHS
First airline in the Asia region to operate helicopterservices.
First airline to induct the new technology superiorB
oeing 737-300 aircraft. Oceatic airline was ranked a 3-star airline according
to Skytrax.
Oceatic airways showed the better result was the seat
utilization factor. From the point of view of its employee, the company
offers some relaxation on grading to the dependent.
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WEAKNESSES
Poor recruitment system.
Operational inefficiency.
Lack of motivation.
Work environment was non conductive.
Job dissatisfaction.
Inefficient induction process, meeting different departmental
requirement.
Lack of coordination .
From the point of view of the company, the company
compromises with the talent by offering relaxation on grading
to the dependent of deceased/retired/ serving of employees.
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WEAKNESSES
In the absence of a proper system to forecast HR needs, the
number of people hired was always different from the actual
required.
Mismatch between training and job requirement. Each subordinate was reporting to multiple bosses.
Lack of understanding of the bell curve and unclear appraisal
forms.
Organization structure was balloon type structure. Jobs are not clearly explained by supervisors
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OPPORTUNITIES
Monopolistic environment.
Leverage on its strong brand recognition.
An increase in demand for air travel across theglobe.
Government providing more incentives to attract
greater investments. Induction of new technology.
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POSSIBLE ALTERNATIVES
Promotion should be based on the basis of
performance than on seniority.
Can cater to the needs of price sensitive airtravelers
Should try to decrease political interference in
recruitment.
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