HR ISSUES IN A MERGER

Case in Point: Air India & Indian Airlines

Group 3

Background About the Merger

Air India, Air India Express and Indian merged to form Air India Limited Resulting airline now comprises of the following:
Primary Airline, Air India Two subsidiary carriers providing regional, low-cost and point-to-point services Third subsidiary for cargo operations

Issues with the Merger

Delay in integration of HR resources
Still awaiting HR integration for almost 98% of the staff Unstable pay and allowances Uncertainty in promotions and transfers Perceived disparity between the employees of both the organizations Pilots and crew members of one of the airlines not functioning in the aircraft of the other

Proposed Changes in HR Policy

Integrated HR Structure Unified Performance Management System Incentives and Salary Cuts Bringing in Singular Identity Redeployment of Excess Staff

Proposed Changes in HR Policy

Integrated HR Structure
Single HR Policy for all the employees No distinction between the employees on the basis of pre-merger entities

Unified Performance Management System Incentives and Salary Cuts Bringing in Singular Identity Redeployment of Excess Staff

Proposed Changes in HR Policy

Integrated HR Structure Unified Performance Management System
Restructuring the existing structure of Performance Linked Incentive (PLI) Factor in indicators like on-time performance, organizational and individual performance

Incentives and Salary Cuts Bringing in Singular Identity Redeployment of Excess Staff

Proposed Changes in HR Policy

Integrated HR Structure Unified Performance Management System Incentives and Salary Cuts
This is not just an HR Issue, focus on improving health of the airline to improve pay Generate ample cash flow for equity in the pay of all employees

Bringing in Singular Identity Redeployment of Excess Staff

Proposed Changes in HR Policy

Integrated HR Structure Unified Performance Management System Incentives and Salary Cuts Bringing in Singular Identity
Identify people on the basis of performance and not their pre-merger entity Develop a sense of belongingness among Indian Airlines employees

Redeployment of Excess Staff

Proposed Changes in HR Policy

Integrated HR Structure Unified Performance Management System Incentives and Salary Cuts Bringing in Singular Identity Redeployment of Excess Staff
Redistribution of staff across major verticals and subsidiaries

Implementation Plans
Implement a centralized structure with representatives from both the premerger entities Benchmark employee packages including non monetary benefits provided Move from a Job-title based pay system to Performance based pay

Implementation Plans
Ego clashes among the employees can be reduced by focusing on equal treatment and by modifying the approach towards each employee issue Appoint an industry expert as CMD, and reduce dependence of Ministry of Civil Aviation Control unionization among employees

THANK YOU