Air India Project Final

EVALUATION OF ES & PAS AIR INDIA

INDUSTRY PROFILE Air India is India’s national flag carrier. Although air transport was born in India on February 18, 1911, when Henri Piquet, flying a Humber bi-plane, carried mail from Allahabad Allahabad to Naini Junction, some 6 miles away, the scheduled services in India, in the real sense began on October 15, 1932. It was on this day that 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 maiden flight to Mumbai via Ahmadabad. Air-India International inaugurated its international services on June 8, 1948, with a weekly flight from Mumbai to London via Cairo and Geneva with a Lockheed Constellation aircraft. The deteriorating financial condition of the various airlines operating in India in 1950s forced the government to step in and nationalize the air transport industry and accordingly two autonomous corporations were created on August 1, 1953. Indian Airlines was formed with the merger of eight domestic airlines to operate the domestic services, while Air-India International was formed to operate the overseas services. The word ‘International’ was dropped in 1962. From March 1, 1994, the airline has been functioning as Air-India Limited.

ASM’S, IMCOST, THANE

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MISSION •

To create and maintain consumers and customers of international transportation by providing competitive superior package of services and generate a sustainable surplus by keeping the assets in a new and contemporary state and deploy the net surplus for growth and for justifiable reward to the stakeholder.

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To generate a net inflow of foreign exchange and seek its progressive enlargement through a larger share of the international market.

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To cont contri ribut butee throu through gh comp compet etit itiv ivee succe success ss of Air-I Air-Indi ndiaa Limi Limite tedd to the the nati nation onal al preparedness for the inevitable progressive globalization of the economy by generating confidence in the Indian business genius.

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To inspire people to make India win and take pride in India and Air-India Limited.

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To enhance its competitive market standing and image as an international carrier.

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To achieve the highest level of safety of operations.


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OBJECTIVE •

To provide safe, efficient, adequate, economical and properly co-ordinate international air-services, and to develop such services to the best advantage.

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To provide high standards of services to passengers and customers on ground and in the air.

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To achieve, maintain and improve its rightful place in the international air transport industry.

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To make an increasing contribution to the national economy and maximize revenues with efficient fleet utilization and route network.

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To promote international tourism to India and to improve the nation’s foreign exchange resources.

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To assist in the promotion of nation’s export trade.

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To improve the national economy by encouraging local skills and technology to get equipment and materials other than aircraft, indigenously manufactured with the intention to curtail imports steadily.

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To promote healthy relations with the various employee’s unions for ensuring employee’s co-operation in the performance of the company’s activities.

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To provide wider participation amongst its employees in management functions.


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BOARD OF MEMBERS

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Minister of Civil Aviation

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Chairman Secretary – Ministry of Civil Aviation

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Chairman – Air India

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Managing Director - Air India

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Chairman – Airports Authority of India

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Joint Secretary - Ministry of Civil Aviation

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Joint Secretary and Financial Advisor - Ministry of Civil Aviation

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Chairman – Indian Airlines

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Managing Director - Indian Airlines

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Chairman – ICICI Ltd.


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MANAGEMENT •

MR. V. THULASIDAS-Chairman & Managing Director

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MR. V. K. VERMA, Commercial Director

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MR. JITENDER BHARGAVA, Director-Public Relations

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MR. V. K. MEHRA, Director- Engineering

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MR. HASAN GAFOOR, Director-Security

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MR. S. PUNHANI, Director-Finance

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MR. BABU PETER, Director-Engineering (Engine Overhaul)

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MR. AMOD SHARMA, Director-Inflight Services

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CAPT. M.K. HATHI, Director-Operations

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MRS. M. KACKER, Chief Vigilance Officer

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MR V.CHANDRAMOULI, Director-Internal Audit & Executive Director-Mumbai Airport

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MR S. RANGANATHAN, Director-Ground Services

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MR V.A. FERREIRA, Director-Human Resources Development

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MR.V.SRIKRISHNAN, Director-Materials Management

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MRS.S.LALWANI, Director-Planning & International Relations

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CAPT. DEEPAK ANAND, Director-Air Safety

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MR. S. MUKHERJEE, Offg. Director-Corporate Affairs

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MR.I.S.VHATKAR , General Manager-Properties & Facilities

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MR.S.PHADKE, General Manager-Department of Information Technology

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Mr.D.S.KOHLI, Director-Northern Region


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ORGANIZATION STRUCTURE

Chairman

Managing Director

Director

General Manager

Deputy General Manager

Assistant General Manager

Senior Manager

Manager

Deputy Manager

Assistant Manager

Clerical staff


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DEPARTMENTS

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AIR SAFETY

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COMMERCIAL

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DEPARTMENT OF INFORMATION TECHNOLOGY

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ENGINEERING

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FINANCE

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GROUND SERVICES

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HEADQUARTERS

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HUMAN RESOURCES DEVELOPMENT

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INFLIGHT SERVICES

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INTERNAL AUDIT

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MATERIALS MANAGEMENT

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MEDICAL SERVICES

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OPERATIONS

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PUBLIC RELATIONS

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PLANNING AND INTERNATIONAL RELATIONS

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PROPERTIES AND FACILITIES

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SECURITY

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VIGILANCE


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HUMAN RESOURCES DEVELOPMENT DEPARTMENT The importance of human assets in any organization can never be overemphasized. There is a fundamental truth in the cliché that, ‘People are an organization’s most important asset’. Human resources can be compared to economic resources, whose development and utilization require proper planning and management. In fact, human resources are much more fundamental in sustaining continuous development and prosperity than economic resources. That is why we find smaller countries like Singapore and South Korea have developed into economic tigers despite being devoid of any natural resources, and on the other hand large countries like Brazil and India languishing in the bottom, despite having abundance of natural resources. What makes the South-East Asian countries globally competitive is the fact they have succeeded in putting in place a Human Resources Utilization System that encourages maximum utilization of human resources by developing and updating the people’s skills, encouraging entrepreneurship, allowing freedom of expression and encouraging to tread on unknown territories. Air-India in its quest to become a globally competitive entity in the world aviation scenario has tried to put in place a sound HR Management System that would focus on encouraging the maximum utilization of its vast human resources, thereby strengthening its endeavor to put in best practices to serve the customers in the most perfect manner. The evolution of HRD Department in Air-India is an outcome of such objectives. The results have been quite encouraging. Air-India has 9 different sections, each looking after specific areas in HRD. The different sections are: •

MANPOWER AND PLANNING DIVISION

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RECRUITMENT SECTION

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SC/ST CELL

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WELFARE SECTION

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ESTABLISHMENT DIVISION

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TIME OFFICE


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EVALUATION OF ES & PAS AIR INDIA •

INDUSTRIAL RELATION DIVISION

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CANTEEN SERVICES

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HINDI SECTION

MANPOWER PLANNING DIVISION The manpower planning division is engaged in the assessment & review of staff recruitments in various categories for the entire company. The requirements of the manpower projected by the various departments are examined by the division; keeping in view the work load & the positional requirements in a particular area, pattern of operations etc. so that adequate personnel are available to meet the desired level of service. The proposals pertaining to creation/abolition of posts, recognitions & up gradation of posts, requirements & postings of officers, formation of promotion/selection panels & scrutinizing of panel reports, administration of performance linked incentive scheme for officers & staff etc. received from various departments are examined by this division.

ESTABLISHMENT DIVISION The Establishment Division handles a plethora of activities, which includes Grievance redress, Performance Appraisal, Maintenance of personal records & assurance of promotion confirmation & Retirement settlements. Establishment Division is the backbone of HRD department. It comprises of maintaining Human Resources Information System pertaining to all India based employees of the Company, which is approximately 15000+. Briefly, the list of activities carried out in the Establishment Division is as follows: 1. Creation of personal files / record cards. 2. Creation of new grade / designation code. 3. Probation for new recruits. 4. Verification of previous employment, character, & antecedents. 5. Confirmation. ASM’S, IMCOST, THANE

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6. Annual increments. 7. Seniority of non-technical categories. 8. Performance appraisal reports. 9. Promotion. 10. Fixation of salary on promotion. 11. Release of confirmation letters after promotion. 12. Implementation of punishment orders. 13. Implementation of wage / salary agreements. 14. Rectifying pay anomaly. 15. Final settlements of accounts on: 

Superannuation

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Resignation / termination

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Voluntary Retirement / VRS scheme

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Death

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Dismissal / removal

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Retirement on medical grounds

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Annuity

16. Payment of gratuity. 17. Parting gift 18. Service plaque 19. Miscellaneous 

Filing of documents

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Queries from Ministries / Parliament.

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Official language

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Trade apprentices

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Reports– statutory & non-statutory

20. Filing of Approval Applications before NIT / CGIT. 21. Record management.


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TIME OFFICE The basic function of Time Office is Time-keeping, which includes: 

Monitoring of Attendance

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Leave Maintenance

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Calculation of Payments

Time Office has its offices at Old Airport and at Medicon Bhavan. At the Indian outstations such as Delhi, Chennai and Kolkata, regional HRD Office has a Time Office Unit. Time Office at Old Airport monitors attendance of the staff working at OAP and the staff working in Properties & Facilities and Security Departments at Nariman Point, Mumbai. Time Office at Medicon Bhavan monitors the attendance of the staff working at CSI Airport, Sahar, and NIPTC. Time Office at The Indian outstations mentioned above carry out timekeeping functions relating to the staff working in the respective stations. In respect of the staff working in other stations except OAP, NIPTC, Delhi, Kolkata, and Chennai, time-keeping functions are carried out by the administrative units of the respective departments.

SC/ST CELL The Director of HRD, who has also been designated as the liaison officer of the company, has been entrusted with the responsibility of implementing the orders & instructions issued by the Ministry for Reservation of SC/ST/OBC.

Dy. General Manager

Asst. Manager


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Subordinate Staff

WELFARE & PASSAGE DIVISION Welfare section as the name itself suggests its worth. The division is constantly works for the contentment and well being of its employees. Functions of welfare section in Air-India are broadly categorized as: 1. The statutory welfare 2. Non statutory (Voluntary welfare)

INDUSTRIAL RELATION DIVISION Industrial Division is one of the most important divisions of the HRD set-up in Air-India. In fact, it is the only intermediary between the Management and the Union. IR Division deals with two aspects, namely: 

Wages and Unions



Legal Matters

Air-India has seven unions that have been formed category-wise. Following are the unions: 

Air-India Employees Union:

This union consists of technical and non-

technical staff along with the workmen category. It is the biggest union in terms of size, encompassing 8263 employees of Air-India. 

Air-India Officers association:

It consists of the general cadre officers

from Asst Manager onwards, upto the Asst Gen Manager level. The membership is 3311. 

Air-India Engineers Association:

It consists of the non-licensed category

engineers who deal with the maintenance and repair of the aircrafts. These engineers belong to non-workmen category. The strength is 158. 

Air-India Aircraft Engineers Association:

It consists of the licensed

category engineers, who have obtained licensed from DGCA to certify the ASM’S, IMCOST, THANE

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aircraft. The membership is restricted upto Dy. Chief Aircraft Engineer and below. The strength of the union is 484. 

Air-India Cabin Crew Associations:

It consists of all the flying cabin

crewmembers i.e., the airhostess and the flight pursers with total strength of 676. 

Air-India Flight Engineers Association:

It consists of all the general

flight engineers. These engineers are not allowed to go to strike as new planes are being introduced. The membership is a paltry 14. 

Air-India Pilots Union:

It consists of first officers and senior captains

and has a total strength of about 275 employees. The members of this union belong to the workmen category. Recently, it has been de-recognized.

CANTEEN SERVICES The organization felt for the need for Canteen Facilities to be provided to the staff working on round-the-clock basis covered under Factories Act. In order to cater to the employees, canteen was introduced in 1953 at Santacruz, Old Airport. Canteen was extended to NTB, Cargo-ETV, and NIPTC-Sahar. Canteen is a major welfare activity of the HRD Department. There are two types of canteen facilities: Statutory:

Under the Factories Act, Air-India is required to provide canteen facilities where the number of employees exceeds 250. Accordingly, Air-India has canteen facilities for workmen at Santacruz, NIPTC, Delhi, Kolkata, Chennai, and Trivandrum. Non-Statutory:

A Canteen facility for supervisory/officers category is provided in Mumbai and is termed as ‘Restaurant’ at Old Airport and Air Building. The executive dining room at OAP caters to executives and their official guests. It also caters to high-level delegates from the ministries.


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HINDI DIVISION To implement the statutory and administrative provisions as laid down in the Constitution of the Official Languages Act, 1963; Air India and its regional offices have adopted the following three-point programme: 

Training



Translation

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Implementatio n


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EMPLOYEE SATISFACTION AND PERFORMANCE APPRAISAL SYSTEM Satisfaction can be defined as a state of being gratified. It is a qualitative term more psychological in nature than concrete. Employee satisfaction is different in different employees that may be depends on their age, salary, attitude towards their job, etc.Employee satisfaction mainly depends on 4 C’s,that is commitment,culture,communication and compensation. It is highly affects the productivity of the organization also. A consistently high level of employee motivation and commitment are the key factors in developing a positive working environment in an organization. Employee satisfaction can be unidirectional or multidirectional. Unidirectional construct views that you are generally satisfied or dissatisfied with the job. Whereas, multi-dimensional construct views that you pay, your work place, etc.In any of these cases, high job satisfaction or highly satisfied employees would show the following: A belief that the organization will be satisfying in the long run. •

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Care about the quality of work.

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Are more committed and loyal to the organization.

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Are more productive.

Performance appraisal is a tool to rate the employees on their performance. Where employee satisfaction gives an idea as to how much gratification an organization gives its employees, PA helps to rate as to how much the employee is giving to the organization ,to his or her job. As employee satisfaction and performance seem to be directly related, performance appraisal techniques its implementations and consequences of the results play an important and major role in ES.It is a base on which much of an employee’s future in the organization is decided. (Promotions, demotions, transfers, incentives, etc).Thus PA and ESare two important concept in relation to any organization. The people factor or the human factor is the most sensitive aspect of an organization. It is on this the successes and failures of the organization depend. It is the same with the enquiry and evaluation of the effectiveness and performance appraisal that is conducted. Further studies on how effective the performance appraisal system in other departments are and comparisons will give greater insights and also show how P.A.S can be implemented more effective. ASM’S, IMCOST, THANE

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Performance appraisal evaluation provides the overview and solution of the process of assessment of the employees, objectivity of the current appraisal system, relevance of the existing appraisal system in identifying employee potential in holding higher responsibilities, If provided with more time a study on the available concepts and peer practice in different organizations can be conducted. They can be compared and contrasted and the best can be inducted to be implemented.

SCOPE OF THE STUDY This study mainly focuses on the employee satisfaction as well as performance appraisal system in Air India. Employee satisfaction is different in different employees that may be depends on their age, salary, attitude towards their job, etc.Employee satisfaction mainly depends on 4 C’s,that is commitment,culture,communication and compensation. It is highly affects the productivity of the organization also. A consistently high level of employee motivation and commitment are the key factors in developing a positive working environment in an organization. It is the same with the enquiry and evaluation of the effectiveness and performance appraisal that is conducted. Further studies on how effective the performance appraisal system in other departments are and comparisons will give greater insights and also show how P.A.S can be implemented more effective. Performance appraisal evaluation provides the overview and solution of the process of assessment of the employees, objectivity of the current appraisal system, relevance of the existing appraisal system in identifying employee potential in holding higher responsibilities, If provided with more time a study on the available concepts and peer practice in different organizations can be conducted. They can be compared and contrasted and the best can be inducted to be implemented. Based on this study we can easily identify how much employees are satisfied in their job and performance appraisal system followed in Air India. According to this the organization can improve their working environment and appraisals.


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OBJECTIVES The main objectives of this project are as follows:  To evaluate and analyze the employees satisfaction in HRD department of Air India 

To understand the current performance appraisal system of Air India

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To understand the attitude and satisfactory level of the employees towards their performance appraisal system, working condition in Air India

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To evaluate satisfactory level of the employees towards the incentives and benefits provided by Air India

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To evaluate the effectiveness of performance appraisal system in Air India

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To determine the performance appraisal as an important factor in employee satisfaction

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To understand the post appraisal measures taken after evaluating the performance of the Employees


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LIMITATIONS The main limitations of the project are 1) Scope of the research is confined to the study of Air India’s human Resource Management 2) Since the time of the year was such that there is maximum absenteeism, the availability of subjects to approach with the questionnaire were difficult to find and also time consuming to re-collect the same 3) It was thus necessary to concentrate on a single department and select a small sample size 4) The inferences and implications drawn from the findings of the survey thus have only limited extent of generalization 5) Access to the technical information with respect to the appraisal system was restricted


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RESEARCH METHODOLOGY SAMPLE DESIGN a) Sample Area

: HRD Department of Air India, Old Airport

b) Sampling Technique : Convenience Sampling c) Total Population

: a) 100 office staff

d) Sample Size

b) 15 manager level executives : a) 40 of the office staff b) 12 of the manager level executives

METHOD OF DATA COLLECTION •

Questionnaires

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Briefs provided to us by the various sections within the HRD departments

A) Primary Data : •

Questionnaires

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Interviews

B)Secondary Data : •

Magazines


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Internet

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Management Books

METHOD OF STATISTICAL ANALYSIS 1) 10 of the tentative questions were selected 2) The options were rated •

5 points for the positive response and 1 point for the negative response

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Wherein there were 3 options it was rated 5,3,1

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Wherein there were 4 options it was rated 5,3,2,1 accordingly

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Each of the questionnaire were tabulated by way of noting down the details and the score that each score against the ideal score of 50

3) Each total was then converted in to percentage form 4) Satisfaction was calculated on 3 basis •

Satisfaction on the basis of groups had 4 categories a) Below 50% b)50% - 70% c)71% - 90% d) Above 90%.The average satisfaction in each group is calculated giving the statistics.

•

Satisfaction was also analyzed on the basis of age. The age group were categorized as a) 30’s b) 40’s c) 50’s.The average satisfaction in each of these groups were calculated and were analyzed.


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The other questions and open ended questions were used to calculate the percentages in the last 5 findings and the recommendations respectively.

PERFORMANCE APPRAISAL SYSTEM Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semiannual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotions.By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter. The essentials of an effective performance system are as follows: Documentation – means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings. 

standards set should be clear, easy to understand, achievable, motivating, time bound and measurable. 

Standards / Goals – the

The appraisal format should be simple, clear, fair and objective. Long and complicated formats are time consuming, difficult to understand, and do not elicit much useful information. 

Practical and simple format -

An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee. 

Evaluation technique –

is an indispensable part of the Performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Communication also plays an important role in the review or feedback meeting. Open communication system motivates the employees to actively participate in the 

Communication – Communication


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appraisal process. purpose of the feedback should be developmental rather than judgmental. To maintain its utility, timely feedback should be provided to the employees and the manner of giving feedback should be such that it should have a motivating effect on the employees’ future performance. 

Feedback – The

relationships can influence the evaluation and the decisions in the performance appraisal process. Therefore, the evaluators should be trained to carry out the processes of appraisals without personal bias and effectively. 

Personal Bias – Interpersonal


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PERFORMANCE APPRAISAL SYSTEM IN AIR-INDIA The system of Performance Appraisal in Air-India has been in practice since 1956.Initially; the performance appraisal was linked to the Annual Increment report and was basically used for grant of annual increment as well as for determining the employee’s suitability for promotion. However, the annual increment report failed to constitute a proper assessment of the employee’s work and conduct, his outstanding qualities and weaknesses and his need for training and development. It was, therefore, decided to improve the system and accordingly a revised procedure of performance appraisal for various categories of employees was introduced effective from October 1967. Subsequently, the performance appraisal report forms prescribed for Officers were revised from time to time. The appraisal has to be completed carefully by the reporting officer and then countersigned by the countersigning officer.

APPRAISAL FORMS The appraisal forms applicable to different categories of employees are: Form ’A’ for officers Form ‘B’ for supervisory staff Form ‘C’ for non-supervisory staff Form ‘D’ for unskilled categories The Administrative Section of the department concerned fills the part of the forms relating to personal data of employee. The other parts of the appraisal form are required to be completed by the reporting officer and then countersigned by the countersigning officer. In case of an officer, his assessment is done on the basis of 8 criteria. These are: 2. Decision Making 1. Knowledge 3. Results Produced 5. Personality 7. Resourcefulness


4. Power of Analysis 6. Human Relations 8. Communication

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ANALYSIS 1) The below 50% satisfied group, i.e., employees scoring 36, 44, 48 (5 employees in total) with an average of 43% satisfaction can be said to have poor satisfaction. Their contribution towards the fulfillment of organizational goals and targets can be deemed to be zero. As their work quality and quantity are likely to suffer and nowhere near standards. For example, in the recruitment section, wherein the staff has to meet deadlines and do the processing as required and as scheduled, the poorly satisfied employees are likely to lag behind and do their work inefficiently, resulting in reprocessing etc. Thus there would be a loss of company resources and time. The company reputation and productivity would in due course of time degrade. 2) The 50%-70% satisfied group, i.e., Employees scoring 52, 60, 64,68 (11 employees in total) with an average of 60% satisfaction, can be said to have an average satisfaction. Their contribution would be around the mark of 50. This group of employees does work only under compulsion and pressure from higher authorities which reflects in the poor quality of work due to lack of dedication and genuine interest. Persuading such employees to work is likely to consume time of the organization. “Work for working sake” may be deemed as their motive as their dire financial condition may be the only reason for needing a job.

3) The group with the satisfaction level between 71%- 90%, i.e., Employees scoring 72, 76, 80, 84, 88 (13 employees in total) with an average satisfaction of around 79.66% can be said to have above average or rather a good satisfaction. Their contribution can be said to be around the mark of 80. They produce work of good quality and quantity though there is a likelihood of resources mismanagement. ASM’S, IMCOST, THANE

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If they are encouraged in the right direction they can prove to be assets to the organization and belong to the highly satisfied group.

4) Above 90% satisfied group i.e., employees scoring 92, 96, 100 (13 employees in total) having an average satisfaction of 95.69% can be said to be highly satisfied. Their contribution to the fulfillment of the organizational goals and targets can be said to be between the marks of 95 to 100. They produce the results on time and always try to be efficient in utilizing the available resources. They are employees any organization would be proud to have. The organization would have the responsibility to maintain these employee’s loyalty and dedication towards the organization. 5) In the age group based satisfaction: a) 35% of employees i.e., 14 employees in total who lie in their 30’s, having an average satisfaction of 73.4% can be deemed to be around the mark of 70, thus average satisfaction. b) 47.5% of employees i.e., 19 employees in total who lie in the age group of the40s having satisfaction of 81% can be deemed to be around the mark of 80, thus highly satisfied. c) 15% of the employees i.e., 6 employees in total lie in the age group of the 50’s and an average satisfaction of 65.3% can be said to have poor satisfaction.

6) Thus, employees in the age of 40s are most satisfied than the 30’s or the 50’s. a) This can be accounted from the fact that the younger (30’s age group) employees would still be considering ‘greener pastures’ ie., other organizations with a little more of everything they get now, better salary, perks, facilities, career advancement chances, new experiences, etc. b) Whereas the older (50’s age group) employees would be filled with apprehension of retirement and the rest of the years after retirement. Having reached almost the end of what they could get in the particular organization and perhaps given their best, their enthusiasm seems to die out. ASM’S, IMCOST, THANE

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c) The 40s, is the age were mostly employees have family responsibility and social responsibility; they are no more in a stage wherein they can experiment or even take risk. A secured job is what they require. They try to make the best of what they are given- thus profiting the organization and themselves.

7) Analysis of satisfaction levels among different salary groups show that salaries do not have any significant effect on the satisfaction level. a) The satisfaction in 62.5% of employees (25 employees in total) in the salary group of Rs. 8000- Rs. 15,000 on average is 73.68%. b) The satisfaction in 35% of employees (14 employees in total) in the salary group of Rs. 15,000 – Rs. 20,000 on average is 76.53% On comparing the two groups and their satisfaction level we find that there is only slight difference in the two levels of satisfaction. 8) Of the 40 questionnaires collected 92.5% of the employees (37 employees in total) have worked for over 5 years in this organization. 9) 32% of these employees (12 employees in total who worked for over 5 years) have said that they would change their job i.e., choose to work for any other organization, if given a chance. 10) 58% of these employees (i.e., 7 employees in total who said they would change their job though having worked for over 5 years in this organization) were found to belong to the 30’s age group. 11) Analysis and calculation of the effectiveness of the Performance Appraisal System has shown that it is only 70.66% effective i.e., it is just about average. 12) 37.5% of the total sample size have indicated their dissatisfaction with the implementation of the Performance Appraisal System


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INFERENCE The research gives the following insights: 1) Employee satisfaction (ES) in HRD department of AI is poor for the majority of the employees on the whole i.e., more than half of the employees (67.5% of the employees) need to be brought to the highly satisfied group (above 90% satisfaction). 2) HRD department needs to work on this percentage to raise their average satisfaction to about 95.6% so as to bring their contribution around the range of 95 to 100. 3) Such a raise in satisfaction and the level of contribution would ensure high quality and quantity of work.


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4) The age based evaluation of satisfaction which shows that the 40’s are the most satisfied group than the 30’s or 50’s, show a need to encourage this group to achieve new heights. 5) At the same time, the 30’s age group needs to be motivated to stay on in the service and provide them encouragement, salary incentives and other facilities according to their performance. 6) Those in their 50’s can be encouraged to give their best by ensuring them a safe and carefree retired life ahead. They can also be encouraged to take V.R.S (Voluntary Retirement Scheme) 7) Though the salary based evaluation of satisfaction did not show any significant effect on the satisfaction levels, there is scope of research on this aspect by keeping in view the incentive division and its effect. 8) Further research is also possible on aspects like posts/ positions/designations groups. Example, Office Administrator, Manager, Assistant Manager, Senior Manager, etc. Such a research can give insights into the trends that are developing or already existing in an organization. It would help us determine where these trends are leading the organization. 9)

The effectives of PAS in AI, HRD department is just above average. This is mainly because its implementation is inefficient and there is a lack of professional spirit? PAS needs reinforcement and backup to make it full proof.

10) Since 37.5% of the employees in HRD department of AI have indicated a dissatisfaction with the implementation of the PAS. Thus an increase in the effectiveness of the implementation of PAS will increase the employee satisfaction.

FINDINGS The following are the findings of the survey: Satisfaction on the basis of groups are: •


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1) There are 10% of the total employees in below 50% satisfied group with an average satisfaction of 43% 2) There are 27.5%employees in the 50%-70% satisfied group with 60% average satisfaction. 3) 30% of employees belong to the 71%-90% satisfied group with 79.66% average satisfaction. 4) 32.5% of employees belong to the above 90% satisfied group with the average satisfaction of 95.69%.

•

Satisfaction on the basis of age groups are:-

5) In the 30’s age group there are 35% employees who have average satisfaction of 73.4%. 6) In the 40’s age group there are 47.5% employees having the highest average satisfaction of 81%. 7) 15% of the employees belong to the 50’s age group with average satisfaction of 65.3%. •

Satisfaction on the basis of salary groups are:-

8) 65.5% employees fall in the Rs. 8,000- Rs. 15,000 salary group and have an average satisfaction of 73.68% which is only a little less than the average satisfaction 76.53% of the Rs. 15,000 – Rs. 20,000 salary group.

•

•

92.5% of the salary has worked for over 5 years. 32% (12 employees) such employees have expressed a wish to change organization i.e., Job, if given a chance.

58% of these 12 employees belong to the 30’s age group.


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The Performance Appraisal System is only 70.66%effective and 37.5% of the sample size have expressed dissatisfaction with the ineffective implementation of Performance Appraisal.

SUGGESTIONS I. To improve Employees Satisfaction (ES) in AI, HRD department There is a need for several changes in wake of improving the ES- some major ones and some minor ones. They are as follows: 1) AI on the whole has a very rigid hierarchy. There is a need to make it more lucid, perhaps decentralize it so that are no delays in decision making- for example, in implementing the charter of demands, bringing transparency in decision making and day-to-day working, in building an environment where employees and management can correlate with each other on a more co-operative basis to bring about a co-ordination in the functioning of each department and within each department. 2) Since, AI is a government organization; its policies need to undergo changes. •

•

•

•

•

Transfers can be made interdepartmental. Thus providing employees with new exposure and avoiding a feeling of stagnation inducing tardiness and lazy atmosphere. It would also induce the workers and help them in self-development and increase their knowledge about the organization on the whole. Promotion policy also needs to be changed. Promotions should be awarded only on merit basis/performance basis. Such a policy will automatically bring about a healthy competitive spirit, decreasing even eliminating unnecessary delays in meeting deadlines, and uncalled absenteeism. It will increase self-efficiency and induce a professional attitude and ultimately increase the profit and goodwill of the organization. According to the present policy timely promotions on basis of seniority are granted unless any serious offence is reported. Thus personal bias and partiality is bound to have the majority toll decreasing the morale of employees.


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3) All departments need to be fully computerized. This would lead to an increase in the efficiency of the employees and save time and energy and produce quality work and quantity of work within a short time span. This would also allow cutting out the disinterested employees from the organization and curtailing wasteful expenditure.

4) By inducing competitive spirit in the employees, the facilities provided would be claimed only by those who are eligible and are worth to enjoy them. Thus it would curtail the wastage of resources.

5) Updating employees on new technology and developments in their field will act to increase their efficiency. Periodical workshop, seminars are means of doing this. Also time to time on-the-job training will avoid a lot of confusion and misunderstandings which lead to waste of time and resources. These changes will boost the morale of the employees and prove beneficial to the organization which would ultimately benefit the employees.

II.To Increase The Effectiveness of Performance Appraisal System (P.A.S) Though the present PAS is very good, its implementation hasn’t been at all stressed on or given importance. For almost 20 years of an employee’s tenure, the PAS is a mere formality, which every employee seems to pass through. Though this system would do perfectly if it was followed with the professional spirit and to be implemented as a compulsory measurement for evaluating the monthly, quarterly and yearly work of an employee. Which was to have serious consequences for the career progression and incentives rewarded to any employee then it would surely do wonders for raising the productivity and profit of the organization/ department. Thus certain recommendations are put forth: 1) The implications of the PA should change. It should have practical implications ie., if an employee has lagged behind in his performance, it should affect his promotions or the incentives or other facilities he would enjoy. This is possible only if the policies need to be remodeled 2) The steps should be strictly complied with, in a professional manner and rule out the possibility of partiality playing any role. 3) Self- Appraisal can be implemented on a regular time basis. This can be taken into account along with quarterly/yearly PA. this also keeps an account of all ASM’S, IMCOST, THANE

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the assignments done by the employee and the time period taken to complete each. This can be checked by the Supervisor. This would also aid the employees in self development. 4) Personal counseling, which is a post appraisal step should also be given more importance. Critical cases can be handled better by this method. It would also act as an encouragement to the employee and he/she will feel cared for in the organization. 5) A follow up is absolutely necessary as the organization need to keep a track of activities the employee is involved in. It is also necessary to monitor his/her effort in improving on the shortcomings pointed out earlier, as to how much the employee has improved on those points and how he/she is performing at present.

TABLES

TABLE – I TABULATED QUESTIONNAIRE TO THE EMPLOYEES NUMBER

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17

EMPLOYEE AGE GROUP

SALARY GROUP

40’s 40’s 40’s 40’s 30’s 50’s 30’s 30’s 40’s 30’s 40’s 40’s 30’s 50’s 30’s 50’s 40’s


SCORES

Q2

Q3

Q4

Q5

Q6

Q7

Q8

Q9

Q10

Q11

5 5 5 5 5 5 5 5 5 1 5 5 1 5 5 5 5

3 3 3 3 3 5 5 3 3 3 5 3 3 5 5 5 3

3 5 5 5 5 5 5 5 3 3 5 5 3 3 5 3 3

5 1 5 5 1 1 1 1 1 1 5 5 5 1 1 1 5

1 5 5 5 5 1 1 5 1 5 5 5 5 5 5 1 5

1 5 5 5 5 5 1 1 1 1 5 5 1 1 5 5 5

1 5 5 5 5 5 5 1 5 5 5 5 5 5 1 5 5

1 1 5 5 5 1 1 1 1 1 5 5 5 5 1 5 5

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

5 5 5 5 5 1 5 5 1 1 5 5 1 5 5 5 5

TOTAL SCORE

%of SATISFACTION

30 40 48 48 44 34 34 32 26 26 50 48 34 36 42 40 46

60 80 96 96 88 68 68 64 52 52 100 96 68 72 84 80 92 Page 32


18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40

50’s 40’s 40’s 40’s 40’s 40’s 30’s 40’s 40’s 30’s 30’s 50’s 30’s 30’s 30’s 40’s 40’s 30’s 30’s 30’s 40’s 40’s 50’s

1 5 5 5 5 5 5 5 5 5 5 5 5 5 5 1 5 1 5 5 1 5 1

5 3 5 3 5 3 5 3 3 1 3 5 5 3 3 3 5 3 5 3 3 5 3

5 5 5 5 5 5 5 5 3 5 3 5 3 5 5 5 5 3 5 5 3 3 3

5 1 1 1 5 5 5 5 5 1 1 5 1 1 5 5 5 5 5 1 1 5 1

1 1 5 5 5 5 5 5 5 1 5 1 5 5 5 5 5 1 5 5 5 1 1

1 1 1 5 5 5 5 5 5 1 1 1 5 5 5 1 5 1 5 1 1 1 1

5 5 5 5 5 5 5 5 5 5 1 5 5 5 5 5 5 1 5 5 1 1 1

1 5 1 5 1 5 5 5 5 5 1 1 5 5 5 5 5 1 1 1 1 1 1

5 5 5 5 5 5 5 5 5 1 5 5 5 5 5 5 5 5 5 5 5 1 5

1 1 5 5 5 5 5 5 5 1 1 5 1 5 5 1 5 1 5 5 1 1 1

30 32 38 44 46 48 50 48 46 26 26 38 40 44 48 36 50 22 46 36 22 24 18

60 64 76 88 92 96 100 96 92 52 52 76 80 88 96 72 100 44 92 72 44 48 36

TABLE – II TABULATED QUESTIONNAIRE TO THE MANAGER LEVEL NUMBER

1 2 3 4 5 6 7 8 9 10 11 12

SCORES

Q1 1 5 5 5 5 1 1 5 5 5 5 1

Q2 1 3 3 5 5 3 1 3 1 5 3 5

Q3 1 5 1 5 1 5 5 5 5 5 1 1


Q4 1 5 1 5 1 5 5 5 5 5 5 1

Q5 1 5 5 5 1 5 1 1 5 5 1 1

Q6 1 5 5 5 1 5 5 5 5 5 5 5

TOTAL SCORES

Q7 1 5 1 5 1 5 5 5 1 5 5 1

Q8 1 5 5 5 1 5 5 5 1 5 5 1

Q9 1 5 5 5 5 1 5 5 5 5 5 5

Q10 2 2 5 1 2 3 5 5 2 1 5 1

11 45 36 46 27 34 38 44 35 46 40 22

EFFECTIVENESS OF P.A SYSTEM (%)

22 90 72 92 54 68 76 88 70 92 80 44

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TABLE – III TABULATED QUESTIONNAIRE TO THE EMPLOYEES – GROUP WISE SL.NO. GROUP EMPLOYEE TOTAL % OF NUMBER SCORE SATISFACTION 35 22 44 1 BELOW 50% 38 22 44 SATISFACTION 39 24 48 40 18 36 1 30 60 6 34 68 7 34 68 8 32 64 9 26 52 2 50 – 70% 10 26 52 SATISFACTION 13 34 68 18 30 60 19 32 64 27 26 52 28 26 52 2 40 80 5 44 88 3 71 – 90% 14 36 72 SATISFACTION 15 42 84 16 40 80 ASM’S, IMCOST, THANE

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4

20 21 29 30 31 33 37 3 4 11 12 17 22 24 25 26 32 34 36

ABOVE 90% SATISFACTION

38 44 38 40 44 36 36 48 48 50 48 46 46 50 48 46 48 50 46

76 88 76 80 88 72 72 96 96 100 96 92 92 100 96 92 96 100 92

TABLE – IV SATISFACTION GROUP WISE GROUPS

%OF EMPLOYEES

%OF SATISFACTION

BELOW 50% 50 – 70% 71 – 90% ABOVE 90%

10%

43%

27.50% 30% 32.50%

60% 79.6% 95.69%

TABLE – V COMBINED TABLE – GROUP WISE GROUP %OF AVERAGE SATISFACTION ABOVE 90% 95.69% AVERAGE OF THE 60% REMAINING 3 GROUPS ASM’S, IMCOST, THANE

%OF EMPLOYEES 32.50% 67.50%

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Page 36


TABLE – VI TABULATED QUESTIONNAIRE TO THE EMPLOYEES – AGE WISE SL.NO.

AGE GROUP

1

30’s

2

40’s

3

50’s


EMPLOYEES

TOTAL SCORE

% OF SATISFACTION

5 7 8 10 13 15 24 27 28 30 31 32 35 36 37 1 2 3 4

44 34 32 26 34 42 50 26 26 40 44 48 22 46 36 30 40 48 48

88 68 64 52 68 84 100 52 52 80 88 96 44 92 72 60 80 96 96

9 11 12 17 19 20 21 22 23 25 26 33 34 38 39 6 14 16 18 29

26 50 48 46 32 38 44 46 48 48 46 36 50 22 24 34 36 40 30 38

52 100 96 92 64 76 88 92 96 96 92 72 100 44 48 68 72 80 60 76 Page 37


40

18

36

TABLE – VII CONBINED TABLE – AGE WISE AGE GROUPS

% OF EMPLOYEES

% OF AVERAGE SATISFACTION

30’S 40’S 50’S

35% 47.50% 15%

73.4% 81% 65.30%

TABLE - VIII TABULATED QUESTIONNAIRE TO THE EMPLOYEES – SALARY WISE SL.NO. SALARY GROUP EMPLOYEE TOTAL % OF NO. SCORE SATISFACTION 1 30 60 2 40 80 4 48 96 5 44 88 6 34 68 8 32 64 10 26 52 11 50 100 13 34 68 1 8,000 – 15,000 14 36 72 17 46 92 19 32 64 20 38 76 21 44 88 24 50 100 27 26 52 28 26 52 29 38 76 30 40 80 31 44 88 32 48 96 33 36 72 35 22 44 36 46 92 37 36 72 3 48 96 7 34 68 9 26 52 12 48 96 ASM’S, IMCOST, THANE

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2

15,000 – 20,000

15 16 18 22 23 25 26 34 38 39 40

TABLE – IX COMBINED TABLE – SALARY WISE SALARY GROUPS % OF EMPLOYEES Rs.8,000 – Rs.15,000 Rs.15,000 – Rs.20,000

62.50% 35%

TABLE – X EFFECTIVENESS OF PERFORMANCE APPRAISAL GROUPS PERCENTAGE % OF DISSATISFIED 70.66% EMPLOYEES WITH PERFORMANCE APPRAISAL %OF EFFECTIVENESS OF 37.50% PERFORMANCEE APPRAISAL


42 40 30 46 48 48 46 50 22 24 18

84 80 60 92 96 96 92 100 44 48 36

% OF AVERAGE SATISFACTION 73.68% 76.53%

OUT OF 100%

100%

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CHARTS CHART I % OF AVERAGE SATISFACTION – GROUP WISE


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CHART II COMBINED GRAPH – GROUP WISE

CHART – III COMBINED GRAPH – AGE WISE


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CHART - IV COMBINED GRAPH – SALARY WISE

CHART – V % OF EFFECTIVENESS OF PERFORMANCE APPRAISAL EMPLOYEE SATISFACTION


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CONCLUSION Conclusion are listed as follows 1. Majority of the employees are dissatisfied with their job in HRD department, Air India. 2. The PAS is not effectively implemented. 3. PAS is an important factor in employee satisfaction as it has implications on the employee satisfaction.


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APPENDIX – I QUESTIONNAIRE TO EMPLOYEES

* Please take note that the information collected from this questionnaire would be kept confidential to the point of any personal details and will be used to make only generalized opinions and find outs. So, please give your true and unbiased opinions by tick marking ( √ ) the appropriate  DESIGNATION: 

AGE:



INCOME GROUP:

Less than Rs. 8000 Rs. 8000 – Rs. 15,000 Rs. 15,000 – 20,000 1. How long have you been working for the organization? Less than a year

□

1-3 years

□

3-5 years

□

above 5 years

□

2. If you are working for more than a period of 1 year, are you satisfied with your performance appraisal? Yes

□

No

□

3. What do you feel about the career advancement chances, while working for this organization?

□

4.

□

□

Good Average Poor Would you say the working environment (includes co-operation, co-ordination on work front and personal relationship with colleagues and superior) is


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□

Good

□

Average

Poor

□

5. Do you feel you work outside your specified job areas?

□

□

Yes No 6. Do you feel overworked?

□

Yes 7.

□

No

Do you feel the Grievance Redressal is adequate?

□

Yes

No

□

8. Does the company update your work knowledge as an when required (eg. when they computerized the office jobs)?

Yes 9.

□

No

□

Was the training conducted during probation and at regular intervals (if provided) adequate and effective?

Yes

□

No

□

10. Do the benefits and facilities provided to the employees of AI actually motivate you to stay on in the organization?

Yes

□

No


□ Page 46


11. Has the Performance Appraisal conducted actually helped you understand and improve your abilities towards the benefit of the organization and yourself efficiency?

Yes

□

No

□

12. Given a chance would you choose to work for another organization?

Yes

□

No

□

13. If the answer to the Q.No. 12 is YES, give reasons, if NO give reasons.

14. What modifications/changes would you like to suggest to improve your satisfaction as an employee of AI.

APPENDIX – II QUESTIONNAIRE TO MANAGER LEVEL

Please tick mark (√) the appropriate  DESIGNATION: 

AGE:



INCOME GROUP:

Rs. 8, 000- Rs. 15,000

□

□


Rs.10, 000 - Rs.15, 000

□

Rs. 20, 000 & above

Page 47

EVALUATION OF ES & PAS AIR INDIA 

1.

Number of Years in the Organization:

Does the department have clearly defined job descriptions?

Yes

□

No

□

2. For how long does employee orientation last?

□

3.

□

□

Less than a day 2 days more than 2 days At the time of joining, is the employee given a job specification and job description?

Yes

□

No

□

4. Is there any effort taken to update the employee’s skills and knowledge of their job?

Yes

5.

□

No

□

Does the department specify its overall objectives and goals every year?

Yes

□

No

□

6. After the performance appraisal is done, is there a discussion with the employee?


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Yes

7.

□

□

No

Is a follow up done by the Management after performance appraisal is done to know whether the employee is doing better?

Yes

□

No

□

8. Are steps taken to ensure that a better performance is given by the employee eg., A telling of/ punishment etc.

Yes

9.

□

No

□

Does the company have any reward/incentive scheme for better/good performance?

Yes

□

No

□

10. What is the percentage of job turnover per year in HRD? 0.1

□

2-5

□

□ □

5-10 above 10 11. Do you feel the present performance appraisals are effective & beneficial towards improving productivity of company and efficiency of employees? Give reasons.


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12. Suggest modifications in the performance Appraisal technique and its implementation, (in wake of raising employee satisfaction, productivity of the organization in HRD department)

APPENDIX -III THE CLUBBED FORM FOR UNSKILLED AND SKILLED CATEGORY

SECTION – I

Name: Designation: Department: Staff No. : Date of Birth: Date of Joining: Factors

Outstanding

SECTION – II Above Average Average

Below Average

Poor

1.Quantity of Work 2.Quality of Work 3.Regularity


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4.Sincerity and Honesty

Additional Comments:

SECTION :III

Remarks of the Countersigning Officer: Adverse entries communicated YES NO

Signature of the Countersigning Officer Name and Designation

REFERENCE •

www.airindia.com

•

www.google.com

•

www.wikipedia.com

•

www.airlines-in-india.com

•

www.airindiaexpress.in

•

www.busreslab.com

•

www.confirmit.com


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Air India Project Final

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