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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