Shrm cornl

Air National

PRESENTED BY:-Pooja Bhayani – 05Shruti Poddar – 24

Background

• Its is an aviation industry• In 1980,

– civil aviation market was highly competitive.– AN’s share of domestic market was 60%.

• Middle 1980– AN was privatized by Britain's Conservative Government.– Preparing to restructuring and downsizing of assets and

workforce.– Plan and implement new business and HRM strategy.– Pressure generated by economic recession in Europe.

• Recession Period– Adopting a low cost competitive strategy.– New strategy were formed .– Strategies was focused to have cost reduction and cost

minimization in areas like service, marketing and advertising.

– The above strategy failed and that lead to slump of 7% of passengers.

– New CEO ,Clive Warren was appointed in 2000– CEO developed a business strategy i.e “added- value”

strategy.

• In 2002– A Catastrophic happened– It causes loss of more than 1,00,000 airline jobs.– Competition between AN, Hop Jet Airlines and Tango

Airlines.– New Competitive and HR Strategies were formed.

New Competitive Strategy

• Prioritized high customer service• Re-engineered the company• Launch a discounted airline• Management structure was re-launched.

Corporate Strategy

North America Pacific India Europe Domestic

• Each group will be headed by a general manger who give authority over the development of the business.

• New brand names were developed & new uniforms were introduced for the cabin crew & point of service.

• The company focuses on the new program “customer – first” that highlights the interface between the employee & the customer.

• Their mainline business are congruent with HR strategies that emphasis on employee empowerment & commitment.

Key Strategies of Air National

Corporate Level

• Differentiation competitive strategy• Corporate values recognizing the contribution of Air National

employees• Effective voice for human resources at the strategy table

HR Polic

y Level

• Priority given to security of employment• Investment in workplace learning• Competitive & equitable pay policies

Workplace Level

• Broad task design & self – managed teams• Emphasis on employee empowerment & self – accountability • Climate of cooperation, commitment & trust

• Demarcation between the craft groups were removed & staff were organized into teams of multi skilled operatives & team leaders.

• Air National institute a series of customer service training seminars & invested in T & D

• They develop a strategic partnership with unions.

• Profit related pay system was launched.

• Major training programs were designed on

the importance of trust, motivation &

visionary leadership.

GoJet competitive & HR strategy

• Air National launched GoJet product in Nov,2002.

• The objective was to take advantage of the dramatic shift by European & North American passengers towards discount airlines.

• GoJet planes had more seats & no business class section, that allowed additional 20 passengers.

• The cost will be 20% less than the Air National comparable mainline flights.

• The wages of the GoJet employees were les than their counter parts at Air National.

• Air National has been transformed by re-engineering.

Key Takeaways

• Air National has been transformed by re-engineering.

• GoJet was launched to have a competitive advantage in the market.

• Company focuses on program “customer – first”

• Organization structure was redesigned.

• T & D programmes were designed.

• Customer service seminars were taken.

Thank You