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Hr Issue In Air India Essay

6709 words - 27 pages

HUMAN RESOURCE MANAGEMENTGROUP 29005INSTITUTE OF RURAL MANAGEMENT, ANAND(INDIA)Executive SummaryThere has been an unprecedented growth in the number of mergers and acquisitions that took place (or was announced) in last calendar year. The total number of M&A deals announced during the year 2007 rose up to 661 with a total announced value of $51.17 billion as compared to 2006 in which only 480 such deals took place. Sectors like steel, telecom and aviation witnessed amalgamation of big brands and thus, was clear leaders in sectoral values. With the same thought, the Government of India, on 1 March 2007, approved the merger of Air India and Indian Airlines. Consequent to the above, a new Company viz National Aviation Company of India Limited (NACIL) was incorporated under the Companies Act, 1956 on 30 March 2007 with its Registered Office at Airlines House, 113 Gurudwara Rakabganj Road, New Delhi. With such a whooping number of M&as taking place every year, some concerns of employees also rise apparently. This is because HR issues are the most neglected issues as financial considerations are given more importance.When a merger is announced, employees of the company become worried about issues like job security, role conflicts, interpersonal conflicts, cultural adaptations, etc. Such factors hold the power to make or break the deal. It is believed that most of the overseas mergers fail because of people centric issues as the management fails to deal with them aptly. It becomes the responsibility of HR personnel of the organization to take care of such issues before and after the amalgamations takes place.Role of HR in making M&A successfulThe success of a merger and acquisition depends on how well an organization deals with issues related to its people and cultural integration. The HR department of an organization acts as a strategic partner. So formulating strategies while ignoring the employees can be critical for the organization. The role of HR becomes strategic when it takes decisions about what kind of people, capability and commitment the company would want after the deal. The main issue behind this amalgamation is making synergy with the help of Air India and Indian Airline. This was need of time, because rise in competition. Through this, both the organization is trying to reduce fixed cost. As it plays an important role in organization survival as well as profitability.TABLE OF CONTENTSTopic_________________________________________________________________Page no.1.Introduction32.History of merger & acquistion73.objective of the study94.rEVIEW OF LITERATURE25.Why This merger happened???46.important issues in merger & acquestion67.efficient handeling of new hybrid organisation78.Management of Merger & Acquistion7HR takes control89.vIEW ON aIR INDIA / INDIAN AIRLINE MERGER910.Compansation and their impacts131.INTRODUCTIONIndian Aviation Minister Praful Patel had been making great efforts to improve the service of...

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