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

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 Page 1


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.

To generate a net inflow of foreign exchange and seek its progressive enlargement

through a larger share of the international market.

To contribute through competitive success of Air-India Limited to the national

preparedness for the inevitable progressive globalization of the economy by generating

confidence in the Indian business genius.

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

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

To achieve the highest level of safety of operations.



OBJECTIVE

To provide safe, efficient, adequate, economical and properly co-ordinate international

air-services, and to develop such services to the best advantage.

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

air.

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

industry.

To make an increasing contribution to the national economy and maximize revenues with

efficient fleet utilization and route network.

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

resources.

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

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.

To promote healthy relations with the various employee’s unions for ensuring

employee’s co-operation in the performance of the company’s activities.

To provide wider participation amongst its employees in management functions.



BOARD OF MEMBERS

Minister of Civil Aviation

Chairman Secretary – Ministry of Civil Aviation

Chairman – Air India

Managing Director - Air India

Chairman – Airports Authority of India

Joint Secretary - Ministry of Civil Aviation

Joint Secretary and Financial Advisor - Ministry of Civil Aviation

Chairman – Indian Airlines

Managing Director - Indian Airlines

Chairman – ICICI Ltd.



MANAGEMENT

MR. V. THULASIDAS-Chairman & Managing Director

MR. V. K. VERMA, Commercial Director

MR. JITENDER BHARGAVA, Director-Public Relations

MR. V. K. MEHRA, Director- Engineering

MR. HASAN GAFOOR, Director-Security

MR. S. PUNHANI, Director-Finance

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

MR. AMOD SHARMA, Director-Inflight Services

CAPT. M.K. HATHI, Director-Operations

MRS. M. KACKER, Chief Vigilance Officer

MR V.CHANDRAMOULI, Director-Internal Audit &

Executive Director-Mumbai Airport

MR S. RANGANATHAN, Director-Ground Services

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

MR.V.SRIKRISHNAN, Director-Materials Management

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

CAPT. DEEPAK ANAND, Director-Air Safety

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

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

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

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



ORGANIZATION STRUCTURE

Chairman

Managing Director

Director

General Manager

Deputy General Manager

Assistant General Manager

Senior Manager

Manager

Deputy Manager

Assistant Manager

Clerical staff


AI Board


DEPARTMENTS

AIR SAFETY

COMMERCIAL

DEPARTMENT OF INFORMATION TECHNOLOGY

ENGINEERING

FINANCE

GROUND SERVICES

HEADQUARTERS

HUMAN RESOURCES DEVELOPMENT

INFLIGHT SERVICES

INTERNAL AUDIT

MATERIALS MANAGEMENT

MEDICAL SERVICES

OPERATIONS

PUBLIC RELATIONS

PLANNING AND INTERNATIONAL RELATIONS

PROPERTIES AND FACILITIES

SECURITY

VIGILANCE



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

RECRUITMENT SECTION

SC/ST CELL

WELFARE SECTION

ESTABLISHMENT DIVISION

TIME OFFICE

INDUSTRIAL RELATION DIVISION



CANTEEN SERVICES

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.

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

Resignation / termination

Voluntary Retirement / VRS scheme

Death

Dismissal / removal

Retirement on medical grounds

Annuity

16. Payment of gratuity.

17. Parting gift

18. Service plaque

19. Miscellaneous

Filing of documents

Queries from Ministries / Parliament.

Official language

Trade apprentices

Reports– statutory & non-statutory

20. Filing of Approval Applications before NIT / CGIT.

21. Record management.



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

Monitoring of Attendance

Leave Maintenance

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 time-

keeping 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

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

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.



HINDI DIVISIONTo 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

Implementation



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. Care about the quality of work. Are more committed and loyal to the organization. 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.

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.



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

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

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

To evaluate the effectiveness of performance appraisal system in Air India

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

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



LIMITATIONS

The main limitations of the project are1) 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



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

b) 15 manager level executivesd) Sample Size : a) 40 of the office staff

b) 12 of the manager level executives

METHOD OF DATA COLLECTION Questionnaires

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

A) Primary Data :

Questionnaires

Interviews

B)Secondary Data :

Magazines

Internet

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

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

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

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.

The other questions and open ended questions were used to

calculate the percentages in the last 5 findings and the

recommendations respectively.



PERFORMANCE APPRAISAL SYSTEMPerformance 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 semi-annual), 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 / Goals – the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable.

Practical and simple format - 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.

Evaluation technique – 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.

Communication – Communication 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 appraisal process.

Feedback – The 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.

Personal Bias – Interpersonal 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.


http://appraisals.naukrihub.com/




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 officersForm ‘B’ for supervisory staffForm ‘C’ for non-supervisory staffForm ‘D’ for unskilled categoriesThe 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:

1. Knowledge 2. Decision Making

3. Results Produced 4. Power of Analysis5. Personality 6. Human Relations

7. Resourcefulness 8. Communication



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.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.

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



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.

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:

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.



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.

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 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.

TABLESTABLE – ITABULATED QUESTIONNAIRE TO THE EMPLOYEES

NUMBER EMPLOYEEAGE

GROUP

SALARYGROUP

SCORES TOTAL

SCORE%of

SATISFACTION

Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11

1 40’s 5 3 3 5 1 1 1 1 5 5 30 602 40’s 5 3 5 1 5 5 5 1 5 5 40 803 40’s 5 3 5 5 5 5 5 5 5 5 48 964 40’s 5 3 5 5 5 5 5 5 5 5 48 965 30’s 5 3 5 1 5 5 5 5 5 5 44 886 50’s 5 5 5 1 1 5 5 1 5 1 34 687 30’s 5 5 5 1 1 1 5 1 5 5 34 688 30’s 5 3 5 1 5 1 1 1 5 5 32 649 40’s 5 3 3 1 1 1 5 1 5 1 26 5210 30’s 1 3 3 1 5 1 5 1 5 1 26 5211 40’s 5 5 5 5 5 5 5 5 5 5 50 10012 40’s 5 3 5 5 5 5 5 5 5 5 48 9613 30’s 1 3 3 5 5 1 5 5 5 1 34 6814 50’s 5 5 3 1 5 1 5 5 5 5 36 7215 30’s 5 5 5 1 5 5 1 1 5 5 42 8416 50’s 5 5 3 1 1 5 5 5 5 5 40 8017 40’s 5 3 3 5 5 5 5 5 5 5 46 9218 50’s 1 5 5 5 1 1 5 1 5 1 30 6019 40’s 5 3 5 1 1 1 5 5 5 1 32 6420 40’s 5 5 5 1 5 1 5 1 5 5 38 7621 40’s 5 3 5 1 5 5 5 5 5 5 44 8822 40’s 5 5 5 5 5 5 5 1 5 5 46 9223 40’s 5 3 5 5 5 5 5 5 5 5 48 9624 30’s 5 5 5 5 5 5 5 5 5 5 50 10025 40’s 5 3 5 5 5 5 5 5 5 5 48 9626 40’s 5 3 3 5 5 5 5 5 5 5 46 9227 30’s 5 1 5 1 1 1 5 5 1 1 26 5228 30’s 5 3 3 1 5 1 1 1 5 1 26 5229 50’s 5 5 5 5 1 1 5 1 5 5 38 7630 30’s 5 5 3 1 5 5 5 5 5 1 40 80



31 30’s 5 3 5 1 5 5 5 5 5 5 44 8832 30’s 5 3 5 5 5 5 5 5 5 5 48 9633 40’s 1 3 5 5 5 1 5 5 5 1 36 7234 40’s 5 5 5 5 5 5 5 5 5 5 50 10035 30’s 1 3 3 5 1 1 1 1 5 1 22 4436 30’s 5 5 5 5 5 5 5 1 5 5 46 9237 30’s 5 3 5 1 5 1 5 1 5 5 36 7238 40’s 1 3 3 1 5 1 1 1 5 1 22 4439 40’s 5 5 3 5 1 1 1 1 1 1 24 4840 50’s 1 3 3 1 1 1 1 1 5 1 18 36

TABLE – IITABULATED QUESTIONNAIRE TO THE MANAGER LEVEL

NUMBERSCORES TOTAL

SCORESEFFECTIVENESS OFP.A SYSTEM (%)

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q101 1 1 1 1 1 1 1 1 1 2 11 222 5 3 5 5 5 5 5 5 5 2 45 903 5 3 1 1 5 5 1 5 5 5 36 724 5 5 5 5 5 5 5 5 5 1 46 925 5 5 1 1 1 1 1 1 5 2 27 546 1 3 5 5 5 5 5 5 1 3 34 687 1 1 5 5 1 5 5 5 5 5 38 768 5 3 5 5 1 5 5 5 5 5 44 889 5 1 5 5 5 5 1 1 5 2 35 7010 5 5 5 5 5 5 5 5 5 1 46 9211 5 3 1 5 1 5 5 5 5 5 40 8012 1 5 1 1 1 5 1 1 5 1 22 44



TABLE – IIITABULATED QUESTIONNAIRE TO THE EMPLOYEES – GROUP WISE

SL.NO. GROUP EMPLOYEENUMBER

TOTAL SCORE

% OF SATISFACTION

1 BELOW 50%SATISFACTION

35 22 4438 22 4439 24 4840 18 36

2 50 – 70%SATISFACTION

1 30 606 34 687 34 688 32 649 26 5210 26 5213 34 6818 30 6019 32 6427 26 5228 26 52

3 71 – 90%SATISFACTION

2 40 805 44 8814 36 7215 42 8416 40 8020 38 7621 44 8829 38 7630 40 8031 44 8833 36 7237 36 72

4 ABOVE 90%SATISFACTION

3 48 964 48 9611 50 10012 48 9617 46 9222 46 9224 50 100



25 48 9626 46 9232 48 9634 50 10036 46 92

TABLE – IVSATISFACTION GROUP WISE

GROUPS %OF EMPLOYEES %OF SATISFACTIONBELOW

50%10% 43%

50 – 70% 27.50% 60%

71 – 90% 30% 79.6%ABOVE

90%32.50% 95.69%

TABLE – VCOMBINED TABLE – GROUP WISE

GROUP %OF AVERAGE SATISFACTION

%OF EMPLOYEES

ABOVE 90% 95.69% 32.50%AVERAGE OF THE

REMAINING 3 GROUPS60% 67.50%



TABLE – VITABULATED QUESTIONNAIRE TO THE EMPLOYEES – AGE WISE

SL.NO. AGE GROUP EMPLOYEES TOTAL SCORE % OF SATISFACTION

1 30’s

5 44 887 34 688 32 6410 26 5213 34 6815 42 8424 50 10027 26 5228 26 5230 40 8031 44 8832 48 9635 22 4436 46 9237 36 72

2 40’s1 30 602 40 803 48 964 48 96

9 26 5211 50 10012 48 9617 46 9219 32 6420 38 7621 44 8822 46 9223 48 9625 48 9626 46 9233 36 7234 50 10038 22 4439 24 48

3 50’s

6 34 6814 36 7216 40 8018 30 6029 38 76



40 18 36

TABLE – VIICONBINED TABLE – AGE WISEAGE GROUPS % OF EMPLOYEES % OF AVERAGE SATISFACTION

30’S 35% 73.4%40’S 47.50% 81%50’S 15% 65.30%

TABLE - VIIITABULATED QUESTIONNAIRE TO THE EMPLOYEES – SALARY WISE

SL.NO. SALARY GROUP EMPLOYEE NO.

TOTAL SCORE

% OF SATISFACTION

1 8,000 – 15,000

1 30 602 40 804 48 965 44 886 34 688 32 6410 26 5211 50 10013 34 6814 36 7217 46 9219 32 6420 38 7621 44 8824 50 10027 26 5228 26 5229 38 7630 40 8031 44 8832 48 9633 36 7235 22 4436 46 9237 36 723 48 967 34 689 26 5212 48 9615 42 84



2 15,000 – 20,00016 40 8018 30 6022 46 9223 48 9625 48 9626 46 9234 50 10038 22 4439 24 4840 18 36

TABLE – IXCOMBINED TABLE – SALARY WISE

SALARY GROUPS % OF EMPLOYEES % OF AVERAGE SATISFACTION

Rs.8,000 – Rs.15,000 62.50% 73.68%Rs.15,000 – Rs.20,000 35% 76.53%

TABLE – XEFFECTIVENESS OF PERFORMANCE APPRAISAL

GROUPS PERCENTAGE OUT OF% OF DISSATISFIED EMPLOYEES WITH

PERFORMANCE APPRAISAL

70.66% 100%

%OF EFFECTIVENESS OF PERFORMANCEE

APPRAISAL

37.50% 100%



CHARTS

CHART I% OF AVERAGE SATISFACTION – GROUP WISE





CHART IICOMBINED GRAPH – GROUP WISE

CHART – IIICOMBINED GRAPH – AGE WISE



CHART - IVCOMBINED GRAPH – SALARY WISE

CHART – V% OF EFFECTIVENESS OF PERFORMANCE APPRAISAL EMPLOYEE SATISFACTION



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.



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 – 20,0001. 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?

Good □ Average □ Poor □4. Would you say the working environment (includes co-operation, co-ordination on work

front and personal relationship with colleagues and superior) is

Good □ Average □ Poor □5. Do you feel you work outside your specified job areas?

Yes □ No □6. Do you feel overworked?

Yes □ No □ 7. 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 □ No □9. 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 □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 LEVELPlease tick mark (√) the appropriate

DESIGNATION: AGE: INCOME GROUP:

Rs. 8, 000- Rs. 15,000 □ Rs.10, 000 - Rs.15, 000 □ Rs. 20, 000 & above

□ Number of Years in the Organization:

1. Does the department have clearly defined job descriptions?

Yes □ No □2. For how long does employee orientation last?

Less than a day □ 2 days □ more than 2 days □3. 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 □ No □5. 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?



Yes □ No □7. 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 □ No □ 9. 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.

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 – IName: Designation:Department:Staff No. :Date of Birth:Date of Joining:

SECTION – IIFactors Outstanding Above

AverageAverage Below

AveragePoor

1.Quantity of Work

2.Quality of Work

3.Regularity

4.Sincerity and Honesty

Additional Comments:SECTION :III

Remarks of the Countersigning Officer: Signature of the Countersigning Officer

Adverse entries communicated



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


YES NO



Air India Project Final

Documents

career advancement

holding higher

current appraisal

consistently

pas air india

existing appraisal

performance

50s age group