The issues of performance in firms

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Taking a closer look at the company's situation we can identify the issue going on with its employees. The recruitment and creation of post Air India was done without proper scientific analysis of the manpower requirements of the organisation Air India's employee unions were rather infamous for resorting to industrial action on the slightest pretext and their arm-twisting tactics to get their demands accepted by the management.

The government took various steps to turn around Air India and initiated talks for its disinvestment. Amidst strong opposition by the employees, the disinvestment plans dragged on endlessly well into mid.The Air India story shows how poor management, especially in the human resources area, could spell doom even for a Rs 40 bn monopoly. And there are several cases going on in the court alongside the company for pilot persecution. This problem is not only harming the standing of the company but making the workforce unhappy which is leading new talent of the industry to think once before entering or applying into Air India.

Evaluating all these factors we can identify clearly that the problem issue with Air India is with its HR that is unsatisfied and demotivated employees inside the organization.

Reasons for the choice of the issue

AI's recurring human resource problems were attributed to its lack of proper manpower planning and underutilisation of existing manpower.

The recruitment and creation of posts in AI was done without proper scientific analysis of the manpower requirements of the organization The Government took various steps to turn around AI and initiated talks for its disinvestment. Amidst strong opposition by the employees, the disinvestment plans dragged on endlessly well into mid 2001. The IA story shows how poor management, especially in the human resources area, could spell doom even for a Rs 40 bn monopoly. This training problem and unhappy staff effect the service to the customer as there are a lot of complaints about the company's service also which is a sure result of the untrained and unhappy employees who are not treated well and are already agitated.

So this issue is a very crucial one to be taken into consideration if the company wants to maintain its position in the market and its employees to be satisfied and become loyal to the organization.


The various communication methods are as follows:

Website: (Osman, 2011)

Newspaper: (Westhead, 2009)

Article: (GKP, 2010)

Case study: (Verma, 2009)

Development of communication method:

From the above discussion we can see quite clear picture of what is going on inside Air India the most profitable airline in India but still in order to make the picture more clear with the approval of my MD who evaluated my report and suggested to go for this method I did a survey with the employees of the company in order to find out whether if they are really unhappy with the working conditions and pay. (N K Shrama, 2011)

The survey was conducted through questionnaire keeping in mind the confidentiality of the identity of employees because being internal survey employees will hesitate to provide information unless they are assured that their identity won't be revealed.

The result were quite similar with what I have presented in the earlier evidences the employees were absolutely unsatisfied with what they were getting from the organization, running just for profitability won't take the company anywhere and the company have to take care of their most important asset that is their employees which it is not doing at all and the results are in front of it, cases, high employee turnover, poor service to the customer, strikes and this all will not lead the company to a better future.

In order to support my argument and points further about the issue I am doing a situational analysis of the company to find out where the problem exists.


The theory states that there is an old saying you can take a horse to the water but you cannot it will drink only if it's thirsty -so with people. They will do what they want to do or otherwise motivated to do. This is essential for any business for survive and succeed. Employees are big assets of any organisation so, we have to take care. Provide proper reward it support much. (For details refer Appendix1)

So according to this theory the motivation is vital part for business. working hard or perform well comes with the desire of a possible reward, if the employees didn't get the same they get demotivated as well and this is the case with Air India the employees are underpaid and are not treated as an important part of the organization which make them stressed and unable to concentrate on work which results into the poor service, turnover, strikes etc.(Ray, 2010)

This theory clearly states that an employee needs a source of motivation to satisfy its needs and the biggest motivator in the world is money and biggest demotivator is also money because you work for money and we are unhappy if we get lower than we deserve or expect.


The case presented above is a discussion of how Air India is facing the problem issue of employee satisfaction and motivation, due its unreasonable rules and laws the employees are highly demotivated and unsatisfied which is an issue to be taken into consideration by the MD and with due hopes I am presenting the provided information so that he can come on a proper conclusion and take necessary action on the same.

Air India is only operating for profits and is ignoring its manpower to its full which is not harming its relationship with its employees but also harming its reputation in the industry which will lead the company towards a situation where none of the talents of the industry will apply or try for the airline, the demotivated and unsatisfied staff is not working with their full efforts which is creating more and more unsatisfied customers and bad experiences follow with people advising their peers, friends and relative not to fly with Air India.

The report for the problem issue was followed by different communication methods in order to satisfy the need of providing information about the existence of the problem issue which were newspaper, articles, case study, website but after the presenting of the report to the MD he suggested to add one more method of survey and conduct it in the company to know if the employees feel the same but he should have thought that an internal survey will not be a good idea because employees will feel uncomfortable and insecure providing this kind of information against the company which actually happened while conducting the survey instead of the fact that the identity will not be disclosed and they need not fill up their name etc in the survey questionnaire but still resistance was there although maximum of the employees co operated with the same.

The information provided above is apt and sufficient enough as my knowledge to get the proper view about the existing problem issue and the how devastating the results could be if the management didn't accordingly with the present market situation to rectify it and stop it from destroying the company.