Cbi Report-lb 5214(k.s.premgopal 12615526)

8/2/2019 Cbi Report-lb 5214(k.s.premgopal 12615526)

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LB 5214-Current Business Issue

Research Report

Attrition Rate Affecting Air

IndiaSubmitted To

Lecturer Mr.Chua Chong Hock

Submitted By

K.S.PremGopal

Student Id: 12615526

Letter of transmittal

Research Report Page 1


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12th December 2011

Mr.Rohit Nandan , (Chairman & Managing Director)

Air IndiaAir India Building,1st Floor, Nariman Point,Mumbai 400 021

Respected Sir,I have enclosed a report with this Letter about the attrition rate ofemployee affecting your Company. The main objective of this report is towhy attrition rate is more in your company comparing to other airlinesand gives some recommendations to avoid employee attrition and somesteps to sustain in the business in upcoming years.

This report which will help your top level management to see in to whyproblems are caused and how it can be avoided in upcoming years .Thesolutions which are given in this report will be more helpful for you toavoid attrition rate .

Here by I think this report will be helpful to your company to have an

healthy business in the upcoming , if any queries on this report you cancontact me at 90966961 email id [email protected], will bewaiting for your feedback and thanks for giving a great opportunity andwill really look forward to work with you one again .

Thank you

Yours Sincerely,

K.S.Premgopal(Consultant)

Enclosure: Final Report

Executive Summary:

mailto:[email protected]:[email protected]


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In India attrition rate is been more and major issue in many organizationthat to mainly in aviation industry. In India Air India Company has facedby many issues and problems in this year 2011. One of the majorproblem was employment strike which was held in the month of May,

Due to delay of salary and salary hike is not been offered for any one nopromotions in their work level , fringe benefits not offered and paid well.

Air India is a public sector company owned by government in India. Themajor cause and problems faced by the company is fuel price hike. Dueto the fuel price hike the company cannot even fly their flights asscheduled its been cancelled due some reason like flights not been fullyoccupied by the customers. Due to this customers in India not preferringair India for their travel.

Attrition rate in aviation industry is more nowadays because other airlinecompanies pay more for their employees and give fringe benefits tothem by paying their telephone bills, leaving expenditures and providingcars for their travel. These benefits are not given by air India to theiremployees, to retain the employees company should work accordingly.

In India the economy rate is high nowadays so employees in thecompany need more salary to overcome all expenditures, So employees

jump from one organization to other because they get more salary theyeven go out of India to work to overcome their basic needs so theemployment attrition rate is more India.

The Report tells mainly about why attrition rate is more in air India andhow it can be avoided or solved. Recommendations and advices givento overcome the major problems like fuel price hike, retaining thecustomers and give more fringe benefits to retain their employees. Thisresearch report also tells about the attrition rate in India and tells why

employees switch companies and what companies should do to avoidthe attrition rate in upcoming years.

Table of Contents Page no



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Introduction..............05

Company Background.....06

Issues and problem..07 Fuel Price Hike .07 Competitors Increases.07 Re-hiring Problem 07 Company Name /Brand decreases08 More Loans taken in RBI.08

Critical analysis. 09What makes an employee

Leave an organization? .09-10

Recommendations/ Implementation Plan:11Recommendations:

How employee attrition rate can beavoided/solved...11

Definition of employee Retention11 Importance of employee retention..12 Steps to Increase employee retention...12

Implementation Plan: Phase 1...13

Phase 2...14 Phase 3...14

Conclusion 15

References.16

Introduction:



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Attrition rate is been a major issue for all organizations all over the worldbut in India the percentage of employees attrition rate is high whencompare to other country in all sectors . The attrition rate in India ofdifferent sectors is given below.

In the above bar diagram shows that the aviation industry is in the thirdplace in India. In an organization employees are the major back bone ofeach and every organization , so it is a necessity a company should lookthat every employees is satisfied with is work and salary, if it is not beenseen then the employees switch over to other company where they get

more salary and benefits .

The company should try to retention their employees by serving themthe best salary and benefits. In this report I have given somerecommendations for the retention of employees for long term whichdoes not affect the companies and some recommendations to carry outthe fuel price hike.

Company Background:



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Air India company was started on July 1932 as TATA airlines byJRD.TATA. 1946 29th July it was changed has public sector company inthe name of Air India .Air India corporate office is in Mumbai and almostcovers 44 destinations and its been the Indias national airline .Air India

international was born in the year 1960 and flew its first fight to new yorkvia London from India .

On the year 2007 Indian airlines and air India joined to together andnamed has air India. Now it has air India express under their venture. Instarting stage of air India the company was in a great heights but after2005 the competition became very heavy like there were many privatedomestic airlines with low cost. So air India faces many problems in theirorganization has its been a public sector company owned by

government. Many top level management is been changed now at lastits Mr.Rohit Nandan current Chairman & Managing Director wasappointed on august 2011 .

Mr.RohitNanadan

(CurrentChairman and Manager)

As many airline organization coming in to market air India tires to givethe best to the employees and customer to retain the business and its

brand image.



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Issues and problems:

Fuel Price Hike Competitors Increases

Re-hiring Problem Company Name /Brand decreases More Loans taken in RBI

Fuel Price Hike:

Fuel Price hike is the major issues running out in India. Due to fuel pricehike the company couldnt flew the flights as per the schedule because ifthe flight is not full the company some time cancel the flights. Due to thisthe company losses its reputation in the market, due to fuel price hikethe company somehow adjust and gets the money by increasing theticket rate, by doing this people will think to travel in the airlines and gofor the budget airline company which gives a very low rate. By doing thisthe company can only can sustain only market but they cant develop

are satisfy the employees.Competitors Increase:

Competitors are more in airline industry now in India. Budget airlines aremore comparing to other airline company. In India before there werevery few airline companies but after 2005 there are lot of company camein airline industry so people have a great choice in choosing their airlinewhile traveling which gives the cheap rate and good standards. So this is

a major problem nowadays for air India to with stand like before. So thecompany should keep their employees by providing their needs properlybecause employees have many companies to change and get goodsalary.

Re-hiring Problem:

The Employees gets out of the company because they dont have a jobsatisfaction and they are not paid for they do, so they switch to other

company where they get more benefits and salary. But the companyshould rehire an another employee which is will lead the company to



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Critical Analysis:

As there is more attrition rate in India when compare to other countries.The attrition rates are in many different levels in an organization.

Due to attrition in a company they have training development cost,Administration cost, Recruitment cost, these makes an company in toloss ,waste of money and time instead of these the company can retaintheir employees by making salary hike are by giving fringe benefits.So companies should have employee Retention that means they shouldretain their employees and make them remain in their company formaximum period. Employee retention is important in an organization

and beneficial for employees.



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What makes an employee leave aorganization?

Employees doesnt leave a company suddenly are without any reason.There are some reasons and circumstances that make an employee toleave the company. Here are some most common reasons whyemployee things to leave an organization or company.

Job dissatisfaction:In an organization the job given to the employees does not come haswhat they expect. Due to unexpected job and responsibility it leads an

employee for job dissatisfaction.

Mismatch job:In an organization sometimes the employee will not get a job for hiseducation are personality because he may be fit for some other job butthe organization sometimes gives him a job which does not match hiseducation and personality where he will not be able perform well andthinks to leave the with some reason.

Growth:When an employee have less growth and learning in his company aftermany years he plans to get in to another company where they get morelearning, good position, growth.

Lack of support, appreciation:When employee does not have a support with his co- workers andsenior employees he will not have good office environment and it will bevery difficult for him to work.. So he will try to leave the job and get in to

another company.

No Fringe Benefits for employees:Definition of fringe benefits is when an employee gets a various benefitsand compensation at a work place for e.g. like paid vacation time, sickleave, Paying hand phone bill , claiming medical bill , time-sharecondominiums and discounted and free membership in health clubs.If these fringe benefits are not given the employee may leave thecompany and get in to a company where he gets good fringe benefits.



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Work Life imbalance:When job stress comes to an employee it leads to work life imbalanceand will make the employee to leave the company.

Good Job offer from another company:When an employee gets a job offer with good salary, benefits, growthand learning he will surely switch over to another company without anyfurther delay.

Recommendations/ Implementation Plan :

Recommendations:

How employee attrition rate can be avoided/solved Definition of employee Retention Importance of employee retention Steps to Increase employee retention

How employee attrition rate can be avoided/solved:

To retain the employees the company should follow employee retentionand give fringe Benefits in order to develop the company. This Employee

Retention helps a company a lot to retain their employees and developtheir company to a good standard.

Definition Employee Retention:

Employee retention means keeping an employee in an organization for along period of time. Employee Retention is very beneficial for anorganization. Employees nowadays have many jobs out in the market,so they easily switch to other organization where they get good salary

and fringe benefits. Its a responsibility for each organization to havetheir best employers in their company for a long period. A goodOrganization should learn the employees pulse, how to attract and retaintheir employees. Retention has 5 important ways they are1.Compensation i.e. means fringe benefits 2.Environment 3.Growth4.Employee relationship 5.Support. If these are down with lot of effortsand resources the result will be good and worth for the organization.



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Importance of Employee Retention:

Every organization should retain their employees because there not forcost cutting but also for

1. Loss of company information i.e. employee who moves out of thecompany knows the plus and minus of the company very well soemployee retention is important.2.Rehiring Problem i.e. if an employee leaves an organization againthe company should search for an employee and have interviews,training and that employee should be up to the mark like perviousemployee so time and money is waste . So employee retention isimportant.

Steps to increase Employee Retention:



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Communication:Communication applies faithfulness between the employees. Thecommunication leads an employee informed on major issues. Theimportant thing is always, employee need to know the views of the

management whether they are interested in employees input.Reward Schemes:Whenever an employee does any good job in an organization he can berewarded with some gifts and money, to boost up his work and makerecognition by awards for best employee of month.

Learning and Development Opportunities: Each and every individualis been thinking and worried about their future and career. Each andevery organization should help the employee in developing their skills to

get the next level by free certification training and courses to enhancethe employees knowledge.

Benefits:The employees see that whether company comes out with some fringebenefits .The organization should see that every employee gets somebenefits while he is working in the company. Because if the benefits aregood and attracted by the employees they wont change are search for a

job in other companies. So benefits are major part in employee

retention.

Implementation:

The implementation plan given below is for next three years toretain your employees and develop your company and repay yourloan amount as fast as possible and helps you to have employeeretention.

Phase 1:

Pay the salary on time and introduce exclusive Fringe Benefits tothe employees which satisfy employees.

Fly flights to destination which have more customers and cut shotthe flights to rare destinations.

Dont buy new flights for next two years change the infra-structurein old flights.

Introduce good offers to the customers and maintain a goodcustomer relation when flights are cancelled.



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Phase 2:

Pay high salary to the employees.

Increase more sales of tickets and built customer relation whenevery customer books a ticket.

Weekly seminar on sales of tickets with employees and discusshow to develop the sales of tickets.

Phase 3:

Discussions with employee if he is not satisfied with his salary arework.

Bonus and incentives based on employees best performer.

Develop the company profit margin.

If an employee leaves the company survey should be conducted tothe employee before he/she leaves.



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Conclusion:

Airline industry in India is fastest growing industry but nowadays its

been in loss due to fuel price hike and employment attrition. To retain inthe business organization should see that the employee retain in theircompanies because at this point if employees gets off its been a majorloss for the company so the organization should retain their employees.If the employees leaves an organization the company should search foranother person and appoint him due to this money and time is beenwasted.

Customers satisfaction is main part in the aviation industry. So Air India

should see that customers are satisfied while they travel in their flightsand should be keep on track when is flights are cancelled they shouldsee to that each and every customer knows it before they come toairport . To Avoid Attrition rate of employee in an organization, themanagement should have good rapport with the employees and satisfiestheir needs and should give fringe benefits to retain the employee forlong term.

Air India can develop their company by implementing and Follow the

phase I, 2, and 3 to with stand in the current aviation industry .Air Indiashould immediately implement the phase of the implementation plan toretain the employee and develop the organization and this point.

If Air India follows the Given Recommendations it will be good for theorganization to have healthy relationship with the employees to retainthem in the company for long period. If Air India wants to retain theirbusiness and retain their customers they should satisfy the customer bychanging the infra-structure of flights and inform them about the flightscancellation and giving some good discounts for frequent flyers. Thishelps the Air India for Long term run in the aviation Industry.

References:



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http://home.airindia.in/SBCMS/Webpages/JRD.aspx?MID=196#

http://www.ndtv.com/article/india/180-crores-lost-air-india-strike-crawls-towards-compromise-103474

http://www.ndtv.com/article/india/air-india-cancels-flights-ahead-of-uk-strike-153805

http://www.cedarmesa.org/challenges-faced-by-indian-airline-industry

http://saraalgoe.hubpages.com/hub/rise-in-fuel-prices-airline-industry

http://retention.naukrihub.com/

http://www.ehow.com/list_6197102_airline-employee-retention-strategies.html

http://www.retentionconnection.com/view_articles_retention.php

http://www.ndtv.com/article/india/180-crores-lost-air-india-strike-crawls-towards-compromise-103474http://www.ndtv.com/article/india/180-crores-lost-air-india-strike-crawls-towards-compromise-103474http://www.cedarmesa.org/challenges-faced-by-indian-airline-industryhttp://www.cedarmesa.org/challenges-faced-by-indian-airline-industryhttp://retention.naukrihub.com/http://www.ehow.com/list_6197102_airline-employee-retention-strategies.htmlhttp://www.ehow.com/list_6197102_airline-employee-retention-strategies.htmlhttp://www.retentionconnection.com/view_articles_retention.phphttp://www.retentionconnection.com/view_articles_retention.phphttp://www.ndtv.com/article/india/180-crores-lost-air-india-strike-crawls-towards-compromise-103474http://www.ndtv.com/article/india/180-crores-lost-air-india-strike-crawls-towards-compromise-103474http://www.cedarmesa.org/challenges-faced-by-indian-airline-industryhttp://www.cedarmesa.org/challenges-faced-by-indian-airline-industryhttp://retention.naukrihub.com/http://www.ehow.com/list_6197102_airline-employee-retention-strategies.htmlhttp://www.ehow.com/list_6197102_airline-employee-retention-strategies.htmlhttp://www.retentionconnection.com/view_articles_retention.phphttp://www.retentionconnection.com/view_articles_retention.php

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Cbi Report-lb 5214(k.s.premgopal 12615526)