Jet Airways

Jet Airways is an Indian airline based in Mumbai. It is the second largest airline in
India, both in terms of market share and passengers carried, after IndiGo. It
operates over 300 flights daily to 74 destinations worldwide from its main hub at
Mumbai and secondary hubs at Bengaluru, Chennai, Delhi, Kolkata and Pune.
Jet Airways was incorporated as an air taxi operator on 1 April 1992. It started
commercial operations on 5 May 1993 with a fleet of four leased Boeing 737-300
aircraft from Malaysia Airlines. In January 1994 a change in the law enabled Jet
Airways to apply for scheduled airline status, which was granted on 4 January
1995. Naresh Goyal who already owned Jetair (Private) Limited, which provided
sales and marketing for foreign airlines in India set up Jet Airways as a full-service
scheduled airline to compete against state-owned Indian Airlines.
Some data related to Jet Airways
Revenue
Increase 20908 crore (US$3.1 billion) (2015)
Profit Decrease -2101 crore (US$310 million) (2015)
Employees 13,945

Buyout and Issues

In January 2006 Jet Airways announced that it would buy Air Sahara for US$500
million in an all-cash deal, making it the biggest takeover in Indian aviation history.
It would have resulted in the country's largest airline but the deal fell through in
June 2006. On 12 April 2007 Jet Airways agreed to buy out Air Sahara for INR14.5
billion (US$340 million). Air Sahara was renamed JetLite, and was marketed
between a low-cost carrier and a full service airline. In August 2008 Jet Airways
announced its plans to completely integrate JetLite into Jet Airways.
In October 2008, Jet Airways laid off 1,900 of its employees, resulting in the largest
lay-off in the history of Indian aviation.

Vision
Organization vision is to become the Best Airline in the World.

Mission
Jet Airways will be the most preferred domestic airline in India. It will be the
automatic first choice carrier for the travelling public and set standards, which other
competing airlines will seek to match.
Jet Airways will achieve this pre-eminent position by offering a high quality of
service and reliable, comfortable and efficient operations.
Jet Airways will be an airline which is going to upgrade the concept of domestic
airline travel - be a world class domestic airline.

Jet Airways will achieve these objectives whilst simultaneously ensuring consistent
profitability, achieving healthy, long-term returns for the investors and providing its
employees with an environment for excellence and growth.

HR Practices
Human Resources Management (HRM) is a companys system that ensures the
effective and efficient use of human talent to accomplish organisational goals. It is
an essential function for organisations to remain competitive and efficient.
Human Resources Outsourcing (HRO) entails the outsourcing of the entire HR
function of an organisation or specific area of HR function i.e. Recruitment, Payroll,
Performance Management System (PMS) or Rewards & Recognition System etc. It is
suitable for all MSMEs who want to grow into big or large industries and create a
brand identity in the industry. Human Resources Outsourcing is also ideal for
companies that have an established HR system but feel over-burdened or the lack
of specialisation in certain areas.
Organizational Structure

Manpower Planning
Manpower planning is a complex function in the airlines industry. In operational
terms, it involves the analysis of current and future human resource to ensure that

needs and resources are always kept in proper balance, both in terms of quality and
quantity. Despite maintaining and adequate information systems at times, the work
load spirals an increase in the number of flights, changes in the pattern of
operation, schedule and frequency which cannot be easily forecasted and planned.
Jet Airways has 13,945 employees who manage 113 aircrafts.

Recruitment: Sourcing, Internal recruitment & external

recruitment
According to the need of manpower, the advertisement is published in major English
and Hindi newspapers plus other employment news magazines and papers. After
that a written test is scheduled in which minimum prescribed limit is fixed for the
interview. A panel for interview is formed which consists of nominees from
personnel department, finance department, department head etc. Then the
provisional joining letter is issued to the successful candidates after their
background check and medical investigation is completed. The candidate then has
to undergo for the training of 6 to 9 months duration based on their grades. The
process takes two days generally with the written test and documents verification
being conducted on the first day and interviews happening on the second day.

Performance Appraisal
Performance measurement systems in Jet airways include various aspects on
performance like financial, non financial and are customer-driven. A performance
measure has to be integrated and balanced.
The Balanced Scorecard comprises of financials, internal business, Innovation &
Learning and Customer. The Balance Score Card helps managers to stay focused on
their strategy and objectives in line of organization's goals.

Financial:
Year on Year increase in company's revenue and profitability.
Increase in market share
Increase/ decrease in Customer segment
Value creation for shareholders
Lost baggage claim
Any Accident/ technical faults

Non Financial:
Geography expansion
Addition in number of flights, size of carriers
Perceived value and image

Corporate social responsibility (CSR)

Employee attrition rate

Customer Satisfaction Levels:

Customer satisfaction survey
Average Passenger per flight (Increase/decrease)
Word of mouth service experience
Code sharing with another carrier
Round trip package for business and economy travellers
Complimentary solution for hotels, taxi and site trip
Steps for an integrated and balanced performance measurement system
Work out vision and strategic performance measure
Communicate performance measure
Set out objectives sync with performance measures
Integration in system and evaluation
Strategic learning

Training & Development

Training programs by Jet Airways
-

aircraft operations safety

aircraft maintenance and servicing, including training programs
environmental protection at ground sites
aircraft noise and emissions controls; and
cargo handling policy

The objectives of the training is

Operates within adopted code of conduct and ethics, abide by law, rules and
regulations of the stock exchange.
Every employee including directors required to become familiar with code of
conduct.
Proper training to front end and back end staff
Ensuring the basic skills and competencies to handle customer while check in and
on board

Each employee should avoid using his/her private interest while performing the duty
objectively and effectively.
Ambiguity and conflict resolution with fair and justifiable manner
Reward and recognition as per the aviation industry practice
Qualified and skilled crew members

Compensation
Reward the employees for their excellence
Reward for long-term commitment
Employee's need to be treated in main stream of organisation

Cabin Crew - Monthly

35,853
Flight Attendant - Monthly
32,072
AME - Monthly
1,46,321
Supervisor - Monthly
36,130
Manager-Customer Services
10,00,745
Flight Attendant - Hourly
401.85/hr

Succession Planning & Talent Management

The employee motivation is critical to the results of the service delivered. The
cycles of success and failure are based on the intertwined roles of employees and
customers. The employee's attitudes and behaviours are affected by human
resource (HR) practices which further led to influence customers' attitudes and
ultimately impact the profitability. Higher employee's satisfaction and motivation

enhance service deliverance of individual and achieve higher service quality as well
as lower employee turnover. It improves the customer's perception and makes them
more satisfied which further turn to loyal customer. Hence Jet airways became
preferred choice of travellers and contribute to profitability. The HR practices like job
design, employee empowerment, training, salary and careful selection processes
lead to satisfied employees who deliver high levels of service quality.
The Effective HR involvement in Jet Airways is the key to having a competent and
committed workforce. The recruitment, training and competency development,
performance monitoring and rewards and recognition are the key areas where Jet
Airways implement effective HR policies to achieve a high quality workforce and
high quality service experience for the customer .

Unions
The NATIONAL AVIATOR'S GUILD was formed on the 10th of JUNE 2009 and was
registered as a trade union by the Registrar of Trade Unions, Mumbai. The members
presently are Jet Airways pilots of INDIAN Nationality. The membership currently
stands at 965. It was once de registered by government in 2009 after they staged
an agitation. No other union is present.

Industrial Relations and Strikes

Jet had been constantly incurring losses since 2007-08."Buying Sahara was a big
strategic mistake by Jet. This happened at a time when Jet was growing aggressively
on the international front and facing tremendous competition in local market, said
the India head of the Centre for Asia Pacific Aviation (CAPA). The first sign of real
trouble in Jet became apparent in 2008 when Naresh Goyal entered into an
operational tie-up with arch rival Vijay Mallyas Kingfisher.
Sacking of 1900 employees - This step was followed by Jet sacking 1,900 cabin
crew members in October 2008, all probationary and temporary workers, across all
categories and departments. It was justified as an attempt to switch to leaner
business models and cost-optimize the business operations of the airways.
According to Jet, the layoffs were "unfortunate" but "unavoidable" because
"everybody is bleeding" as the cost of business has gone up by 30 percent and the
alliance is aimed at reaping "maximum synergies." "The economic viability of the
industry has been severely affected by the record high fuel prices and most recently
due to the crisis of the financial markets globally and the downturn in traffic," Jet
Airways said in a statement. "Jet Airways expects these difficult market conditions
to continue." Jet Airway CEO Wolfgang Prock Schaeu and Executive Director B Saroj
Datta held a press conference in Mumbai where they explained the companys
decision to terminate the services of company employees. "It is an unfortunate
decision, which all of us in the company regret. A total of 1,900 people are being
served separation notice. 800 have already been served notice. In the next few
days the others will also be served notice. It is an attempt to save the jobs of
remaining 11,100 employees," said Dutta at the airlines headquarters in Mumbai.
He said the decision to terminate the employees had nothing to do with the alliance

entered into with Kingfisher. "It (alliance) has nothing to do with the workforce of
the companies. These are independent decisions of the two companies."
It resulted in a severe backlash not just from employees but also from the
government, political parties and regulatory bodies who forced the airline to take
back the sacked people. It was in fact an example showcasing the importance of
managing stakeholders in a change management plan. Some commented on the
manner in which it was conducted-employees waiting at home for office transport
found that the vehicles never came; when some of them reached the airport on
their own, they discovered that their jobs were in jeopardy. The Indian aviation
industry was going through a tough phase and experts felt that it was in the interest
of the company to retrench employees to remain competitive. Experts largely felt
that Goyal had capitulated under pressure from external parties while others felt
that all may not be well with the organizational communication mechanisms at Jet.
The Pilots Revolt: Formation of the NAG The retrenchment and then the
reinstatement saga had bred insecurity among the employees. The airline pilots did
not have any union and being contract employees could be shown the door
anytime. It was reasoned that the current financial crisis may badly affect the lives
of the younger pilots who may be laid off any time as the mass sacking had
indicated. This led to the formation of the National Aviators Guild the NAG. On July
24 2009, the NGA - National Aviators Guild- was registered by the Regional Labour
Commissioner. Captain Sam Thomas and one of his colleagues played a significant
role in the formation of the Union.
Discussions and Negotiations : Talks between the pilots and the management
failed to resolve the crisis and the deadlock continued. The striking pilots
continuously demanded the re-instatement of their sacked colleagues. Meanwhile
news reports filtered in that pilots of Jet Airways had skipped a scheduled meeting
with the management of the airline as the imbroglio entered its third day. According
to a news report, pilots were quoted as saying that they were not informed about
the meeting in advance. The meeting was to be mediated by the Central Labour
commissioner. The two parties were also scheduled to meet the Labour
Commissioner in Mumbai where a case relating to sacking of the two senior pilots
was pending. According to reports, the pilots union was unwilling to meet the
management and held a meeting to chart out future course of action. Capt Sam
Thomas, Joint General Secretary of National Aviators Guild, which was spearheading
the agitation, claimed that overall 500 pilots have reported sick.
The pilots maintained that they would not return to work until the management took
back four colleagues who were sacked. Two of them were allegedly shown the door
45 days ago for forming a union the National Aviators Guild (NAG) while the
other two were sacked as the protest action began. The four-day strike had led to
the cancellation of nearly 700 flights, costing hardships to over 28,000 passengers.
The negotiations ended with the formation of a grievance committee consisting of
both pilots and administration members to hear such cases. Under the agreement,
the pilots decided to join duty with immediate effect. It was decided that a
committee to look into the coordination between the pilots and the management
would be formed. The committee would work under the Central Labour
Commissioner. Normal flight operations of Jet airways resumed Sunday after the
airline's pilots decided late Saturday to end their five day old agitation following
successful talks with the management, the airline said. Newspaper reports showed
Jet Airways ground staff holding yellow roses presented by the management as a
goodwill gesture at the city airport in Mumbai on September 11, 2009.

Human Resource Accounting

Human resource accounting is a management tool which is designed to assist senior
management in understanding the long term cost and benefit implication of their
Human resource decision so that better business decision can be taken. If such
accounting is not there, then the management runs the risk of taking decision that
may improve profit in the short run but may also have severe repercussions in
future. HRA is an attempt to identify and report investment made in the human
resource of an organization that are not presently accounted for under conventional
accounting practice. Human Resource Accounting is the measurement of the cost
and value of the people for the organization (Eric flamholtz of University of
California, Los Angeles.)

Challenges and Suggestions

The greatest challenges for services managers in Jet airways are to develop
employees to manage the complexity and conflicting demands of their roles.
Frontline employees have to simultaneously meet customers' expectations and
organizational priorities. Sometimes demand of difficult customers can lead to
feelings of stress, conflict and Frustration. The role stress has a negative impact on
performance in terms of employees' commitment, satisfaction, productivity and
ability to deliver service quality to customers.
Factors Contributing to Work Stress are role conflict, role ambiguity and role
overload. The role stress can be reduced through leadership, empowerment and
formalization.
Collaboration among employees within organisation enables them to find solutions
for critical and unforeseen problems. Sharing of experience and war stories enables
people to learn. Collaborative team approach among employees in Jet airways is
more important due to many services deliverance exhibit variability. The variables
depend upon customer's wants / needs, the frontline employee's abilities/ attitudes
and organizational support. Managers are unable to develop routines, procedures
and manuals to deal with every contingency. Employees help and learn from one
another through their experience.
Employee Empowerment is a HR practice that gives the employees the authority to
use decision making when confronted with diverse customer requests.

One of service management principle is "Decision-making authority as close as

possible to the customer interface". It empowers employees for making decision,
give employees the authority to use judgment and make prompt decisions when
confronted with diverse customer requests. It leads to higher levels of job
satisfaction and employee commitment.
Employee Empowerment helps in customer satisfaction and employee motivation.

References
http://www.ukessays.com/essays/management/analysing-the-indian-airline-jetairways-and-its-management-management-essay.php
https://en.wikipedia.org/wiki/Jet_Airways
https://jetairways.globallinker.com/bizforum/article/leveraging-human-resources-toachieve-business-goals/715
http://home.ximb.ac.in/~jcr/cases/Case03-JetAirways-Dec2011.PDF
http://www.jetairways.com/en/in/jetexperience/mission-statement.aspx
https://www.glassdoor.co.in/Salary/Jet-Airways-Salaries-E22932.htm