5. A Case Study of Jet Airways (I) Ltd.
5.1 Financial Position of Jet Airways (I) Ltd.
The year 2012 has seen very difficult years in terms of operation and consequently has shown losses. The main reason for the same is the high costs of operations and a number of pliers in the industry. The two main rea¬sons for this decline were: Price of ATF and high rate of exchange. Crude oil prices continued to be very high especially in the latter half of the year. In addition, the Rate of Exchange of the Indian Rupee to the US Dollar continued to be negative.
USA, Europe has put the airline in difficulty due to their financial instability. This has put significant pressure on the financials of airlines. The banks were adamant on giving any assistance. Airlines tried to hike fare towards the end of the year, because of some demand – supply imbalance being reduced. The total expenses amounting to `1,650,160 lakhs in Fiscal 2012 increased by 26% from `1,307,492 lakhs in Fiscal 2011. The Company has is able to improve its financial status at the need of the finan¬cial year of 2012. In the year 2013, the results can be seen (Annual Report, 2012).
The Company has introduced its low fare service products under the ‘JetKonnect’ brand to provide its ser¬vices to the low-fare category also. The company believes that JetKonnect re-branding will help it to increase cred¬ibility and revenues. The reason behind the same is the improved perception of the consumers which in turn will help in improving the yields. Airport changes are also posing a threat for the company. The announcement of union budget on service tax will have an impact on the fares. All of these cost increases are being passed through to the customer and this will preclude airlines from taking further fare increases, lest the same becomes unaffordable in the hands of the customer.
As ATF cost represent 50% of the total cost, it has a major impact on the cost factor and the financial condition of the airline. The weak status of the Indian Rupee with the US Dollar is posing a cost challenge. The inflow of foreign currency is not higher than the outflow of foreign currency. A major step to recover from losses is marking the routes which are constantly making losses and removing operations from those routes.
The aviation industry all over the world is facing the financial crisis and so as Jet Airways. The Indian economy is growing at a good pace in comparison with other mar¬kets across the world. It is expected to post growth rates of 6 to 7% per annum for the upcoming decade. This may imply that the Indian aviation industry may see growth rates of over 12%. But, there are few challenges which can put strain on the profitability of the company like the increase in foreign exchange.
Jet Airways is having a moderate fleet which is operating in the difficult environment. The company is earmarking the loss making routes and discontinuing them and add new capacity in markets which can improve the network and increase the revenues. The company has re-branded JetLite into JetKonnect. This can help the company to attract the low fare category of consum¬ers which can yield more returns to the company. This rebranding has seen improved customer satisfaction.
The present study is related to planning for human resource, training and development, recruitment and selection, counselling, performance appraisal, career development, reward system and organizational culture and effectiveness. Thereby to utilize their potentialities for enhancing productivity to help improve job conditions and quality of their work life.
5.2 Findings
Following observations were made based on the survey conducted on the employees of Jet Airways:
From (Fig. 1–6), we can conclude that as a whole the majority of employees of the organisation are not satisfied in terms of promotions and incentives. The majority of them feel that the HR department of the company must be more supportive towards the employees as they are not getting their promotions on time. The employees also feel that they are also eligible for incentives as per their performance appraisals. There should be timely meetings of the employees with the HR managers with whom the employees can share their issues.
It is evident from the survey that the employees feel that personnel of any organisation is to be considered an extremely important factor for productivity. They feel that they should be treated more politely by the management as they are the ones who are actually operating their busi¬ness. Majority of the employees feel that there is an urgent need to re-design their organizations. The most required feature is to provide training to the employees and develop the human resource. They feel that their potentialities are not being fully utilized.
The HRD team of Jet Airways (I) Ltd., is helping the company but the overall performance with regard to higher productivity has not been so encouraging. The main reason is the conflict between employees and the management. Further, organizational culture created within the organizations is not conducive for sustainable development.
5.3 Conclusions, Suggestions and Recommendations
Tourism is an important economic activity as the tourist visiting a particular country is also bringing along with them the foreign currency to utilise in the country visited. The industry has major economic consequences. The indu-stry has the potential of employment generation and it has been well recognized by the world over. The industry today is recognized as a major economic contributor. The tourism industry is facing with many challenges in the field of human resource. One of the major issues in this regard is the quality of human resource. The industry is in dire need of qualified quality personnel.
Today, human resource planning is considered as the way management comes to solve the ill defined and tough-to-solve human resource problems faced by an organization. The role of a HR manager is very crucial as it involves selection and recruitment of the right person who can prove to be an asset for the industry. The train¬ing and development plans are to be effectively implied so that the personnel can develop talents and hence perform effectively in more challenging work situations. An organ¬isation is considered to be successful if it is continuously trying to improve its product and provide quality services to its consumers. This requires each and every personnel of the organization to be professional, able, skilful and knowledgeable. The organisation should determine the training requirements. For this, two levels of supervision can be implemented and both levels of supervision should be addressed by the managers having the competencies required for that level.
If the work allotted to an employee is competent enough in which opportunities are provided and the work draws enough recognition, the employee will achieve a high level of satisfaction. The rewards given to an employee may be monetary or non-monetary. The rewards must meet his basic needs. The environment in which the employee is working is very important. It should be supportive which helps to build team spirit and shows that employees are wanted.
The country which has trained human resource can develop the tourism institutional structure. Many techno¬logical advancement can also be done through the trained personnel. In tourism industry, economic development can be done only when the environment is good enough, ready to change at all levels as per the requirement. This calls for educated and literate people. The main goal is to make the required changes in the policies and strate¬gies so as to develop human resource in tourism industry. Collaboration of all the countries is the need for the next century. HRD system has to be groomed to its fullest to achieve competitiveness on international platform. Quality of manpower is the major challenge faced by the tourism industry.
To promote tourism industry, government of India has shown some interest, but unfortunately the steps taken are not enough. The government has realized the importance of the skilled personnel at different levels. For this, initiatives are being undertaken to train and develop human resources. The government should look after the needs of the human resource by setting up a committee consisting of HRD professionals and professionals from the tourism industry.
The importance of ensuring high standards of quality and efficiency in tourism services to develop international tourism is well-recognised. It is partic¬ularly important in the case of developing countries intending to promote tourism as an instrument for economic development. It can, however, be achieved only by initiating specific measures for HRD in vari¬ous segments of the tourism industry. The industry requires trained professionals at each and every trade like hotels, restaurants, travel agents, tour operators and other providers of tourist services. Security guards, taxi and coach drivers and other ground level work¬ers need to be trained so as to make them skilled and presentable.
Inadequate infrastructure is another factor of much concern for Indian tourism. It is observed that the Department of tourism is not being able to convince the Ministry of Finance and the Planning Commission to grant adequate funds. These funds can be utilised in devel¬oping infrastructure. To upgrade the human resources, we need to educate the personnel regarding career planning, career development and career counselling so that they may become aware of the general phases of their growth and development.
We need to realise the importance of the industry as soon as possible so as to help it in flourishing. It is rec¬ommended that the Government of India should form an ‘HRD Board’, which should encourage the researches upon increasing potentiality of human resources. It should take many productive and aggressive steps for the promotion of HRD
5. A Case Study of Jet Airways (I) Ltd.
5.1 Financial Position of Jet Airways (I) Ltd.
The year 2012 has seen very difficult years in terms of operation and consequently has shown losses. The main reason for the same is the high costs of operations and a number of pliers in the industry. The two main rea¬sons for this decline were: Price of ATF and high rate of exchange. Crude oil prices continued to be very high especially in the latter half of the year. In addition, the Rate of Exchange of the Indian Rupee to the US Dollar continued to be negative.
USA, Europe has put the airline in difficulty due to their financial instability. This has put significant pressure on the financials of airlines. The banks were adamant on giving any assistance. Airlines tried to hike fare towards the end of the year, because of some demand – supply imbalance being reduced. The total expenses amounting to `1,650,160 lakhs in Fiscal 2012 increased by 26% from `1,307,492 lakhs in Fiscal 2011. The Company has is able to improve its financial status at the need of the finan¬cial year of 2012. In the year 2013, the results can be seen (Annual Report, 2012).
The Company has introduced its low fare service products under the ‘JetKonnect’ brand to provide its ser¬vices to the low-fare category also. The company believes that JetKonnect re-branding will help it to increase cred¬ibility and revenues. The reason behind the same is the improved perception of the consumers which in turn will help in improving the yields. Airport changes are also posing a threat for the company. The announcement of union budget on service tax will have an impact on the fares. All of these cost increases are being passed through to the customer and this will preclude airlines from taking further fare increases, lest the same becomes unaffordable in the hands of the customer.
As ATF cost represent 50% of the total cost, it has a major impact on the cost factor and the financial condition of the airline. The weak status of the Indian Rupee with the US Dollar is posing a cost challenge. The inflow of foreign currency is not higher than the outflow of foreign currency. A major step to recover from losses is marking the routes which are constantly making losses and removing operations from those routes.
The aviation industry all over the world is facing the financial crisis and so as Jet Airways. The Indian economy is growing at a good pace in comparison with other mar¬kets across the world. It is expected to post growth rates of 6 to 7% per annum for the upcoming decade. This may imply that the Indian aviation industry may see growth rates of over 12%. But, there are few challenges which can put strain on the profitability of the company like the increase in foreign exchange.
Jet Airways is having a moderate fleet which is operating in the difficult environment. The company is earmarking the loss making routes and discontinuing them and add new capacity in markets which can improve the network and increase the revenues. The company has re-branded JetLite into JetKonnect. This can help the company to attract the low fare category of consum¬ers which can yield more returns to the company. This rebranding has seen improved customer satisfaction.
The present study is related to planning for human resource, training and development, recruitment and selection, counselling, performance appraisal, career development, reward system and organizational culture and effectiveness. Thereby to utilize their potentialities for enhancing productivity to help improve job conditions and quality of their work life.
5.2 Findings
Following observations were made based on the survey conducted on the employees of Jet Airways:
From (Fig. 1–6), we can conclude that as a whole the majority of employees of the organisation are not satisfied in terms of promotions and incentives. The majority of them feel that the HR department of the company must be more supportive towards the employees as they are not getting their promotions on time. The employees also feel that they are also eligible for incentives as per their performance appraisals. There should be timely meetings of the employees with the HR managers with whom the employees can share their issues.
It is evident from the survey that the employees feel that personnel of any organisation is to be considered an extremely important factor for productivity. They feel that they should be treated more politely by the management as they are the ones who are actually operating their busi¬ness. Majority of the employees feel that there is an urgent need to re-design their organizations. The most required feature is to provide training to the employees and develop the human resource. They feel that their potentialities are not being fully utilized.
The HRD team of Jet Airways (I) Ltd., is helping the company but the overall performance with regard to higher productivity has not been so encouraging. The main reason is the conflict between employees and the management. Further, organizational culture created within the organizations is not conducive for sustainable development.
5.3 Conclusions, Suggestions and Recommendations
Tourism is an important economic activity as the tourist visiting a particular country is also bringing along with them the foreign currency to utilise in the country visited. The industry has major economic consequences. The indu-stry has the potential of employment generation and it has been well recognized by the world over. The industry today is recognized as a major economic contributor. The tourism industry is facing with many challenges in the field of human resource. One of the major issues in this regard is the quality of human resource. The industry is in dire need of qualified quality personnel.
Today, human resource planning is considered as the way management comes to solve the ill defined and tough-to-solve human resource problems faced by an organization. The role of a HR manager is very crucial as it involves selection and recruitment of the right person who can prove to be an asset for the industry. The train¬ing and development plans are to be effectively implied so that the personnel can develop talents and hence perform effectively in more challenging work situations. An organ¬isation is considered to be successful if it is continuously trying to improve its product and provide quality services to its consumers. This requires each and every personnel of the organization to be professional, able, skilful and knowledgeable. The organisation should determine the training requirements. For this, two levels of supervision can be implemented and both levels of supervision should be addressed by the managers having the competencies required for that level.
If the work allotted to an employee is competent enough in which opportunities are provided and the work draws enough recognition, the employee will achieve a high level of satisfaction. The rewards given to an employee may be monetary or non-monetary. The rewards must meet his basic needs. The environment in which the employee is working is very important. It should be supportive which helps to build team spirit and shows that employees are wanted.
The country which has trained human resource can develop the tourism institutional structure. Many techno¬logical advancement can also be done through the trained personnel. In tourism industry, economic development can be done only when the environment is good enough, ready to change at all levels as per the requirement. This calls for educated and literate people. The main goal is to make the required changes in the policies and strate¬gies so as to develop human resource in tourism industry. Collaboration of all the countries is the need for the next century. HRD system has to be groomed to its fullest to achieve competitiveness on international platform. Quality of manpower is the major challenge faced by the tourism industry.
To promote tourism industry, government of India has shown some interest, but unfortunately the steps taken are not enough. The government has realized the importance of the skilled personnel at different levels. For this, initiatives are being undertaken to train and develop human resources. The government should look after the needs of the human resource by setting up a committee consisting of HRD professionals and professionals from the tourism industry.
The importance of ensuring high standards of quality and efficiency in tourism services to develop international tourism is well-recognised. It is partic¬ularly important in the case of developing countries intending to promote tourism as an instrument for economic development. It can, however, be achieved only by initiating specific measures for HRD in vari¬ous segments of the tourism industry. The industry requires trained professionals at each and every trade like hotels, restaurants, travel agents, tour operators and other providers of tourist services. Security guards, taxi and coach drivers and other ground level work¬ers need to be trained so as to make them skilled and presentable.
Inadequate infrastructure is another factor of much concern for Indian tourism. It is observed that the Department of tourism is not being able to convince the Ministry of Finance and the Planning Commission to grant adequate funds. These funds can be utilised in devel¬oping infrastructure. To upgrade the human resources, we need to educate the personnel regarding career planning, career development and career counselling so that they may become aware of the general phases of their growth and development.
We need to realise the importance of the industry as soon as possible so as to help it in flourishing. It is rec¬ommended that the Government of India should form an ‘HRD Board’, which should encourage the researches upon increasing potentiality of human resources. It should take many productive and aggressive steps for the promotion of HRD
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