A

Summer Training Project Report

On
“AIR INDIA LTD.”

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF

MASTERS OF BUSINESS ADMINISTRATION (FINANCE)

COMPANY NAME: AIR INDIA

TRAINING SUPERVISOR SUBMITTED BY

MR. RAHUL BHATNAGAR YASHIKA JANGRA

MANAGER ROLL NO.: 180101010064

{FINANCE} MBA-GEN.

GURU JAMBHESHWAR UNIVERSITY OF SCIENCE AND TECHNOLOGY

HISAR

(SESSION 2018-2020)
 DECLARATION

I Yashika Jangra, Roll No. 180101010064 MBA GENERAL IIIrd Semester of the Haryana
School of Business hereby declare that the Sumer Training report entitled “AIR INDIA” at AIR
INDIA LTD. is an original work and the same has not been submitted to any other institute for
the award of any other degree.

I also declare that I have done my work very sincerely and accurately up to my knowledge and
information provided to me. Even if any mistake or error is found in the report, I request my
readers to point out such errors and guide me to remove such errors to avoid such mistakes in
future.

Faculty’s Signature Candidate’s Signature

(Signature of Director/Principal of the Institute)

2
 CERTIFICATE

This is to certify that YASHIKA JANGRA student of Guru Jambheshwar University

of Science & Technology, Hisar, Haryana has completed his practical training with
AIR INDIA LIMITED successfully. The duration of the training was from 3rd June
2019 to 26th July 2019.

During the training we found him sincere, hardworking and technically sound & result
oriented. He worked well as part of a team during his tenure.

We take this opportunity to thank and wish him all the best for future endeavors.

For AIR INDIA LIMITED

Authorized signatory

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4
5
 ACKNOWLEDGEMENT

The internship opportunity I had with AIR INDIA was a great chance for learning and
professional development. Therefore, I consider myself as a very lucky individual as I was
provided with an opportunity to be a part of it. I am also grateful for having a chance to meet so
many wonderful people and professionals who led me though this internship period.

I would like to express my gratitude to all those who have been instrumental in the preparation
of my project report.

I am thankful to the organization AIR INDIA, PALAM for providing me the opportunity to
undertake this internship study and allowing me to carry out my project.

I am deeply grateful to my company guide and mentor, Mr RAHUL BHATNAGAR, who

guided me to take this project and helped me bring it to conclusion. I am thankful to him for his
continuous support, advice and words of encouragement.

I am also grateful to Prof. N.S. Malik, the director of Haryana School of Business, for him
guidance and for giving me an opportunity to work.

Finally I would express my deep regards for all those who directly and indirectly helped me to
execute my project.

Yashika Jangra

MBA GENERAL

Haryana School Of Business

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 CONTENTS
S.NO CONTENTS PAGE NO.

1 COMPANY PROFILE 9
2 ORGANIZATION STRUCTURE 16
3 DAILY ACTIVITY REPORT 19
3 RECRUITMENT 20
4 ESTABLISHMENT 20
5 LEAVE & PASSAGE 21
6 TRAINING 21
7 WELFARE 24
8 PAYROLL MANAGEMENT SYSTEM 24
9 SAP SOFTWARE 32
10 SWOT ANALYSIS OF AIR INDIA 33
11 MOTIVATION 37
12 JOB SATISFACTION 38
13 BALANCE SHEET 39
14 PROFIT & LOSS ACCOUNT 40
15 CASH FLOW STATEMENT 41
16 CONCLUSION 42
17 REFERENCE 43

7
 AIR INDIA

COMPANY 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 Nainital 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 Drags 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 1950sforced the government to step in and nationalize the air
transport industry and accordingly two autonomous corporations were created on

8
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.

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 Ltd. To the national preparedness
for the inevitable progressive globalisation 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.

 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.

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 To promote international tourism to India and to improve the nations 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.

Objective: Achieve unit revenue, unit cost, profitability and service level target, based
on benchmark parameters.

Vision:
 To rationalize all business processes around passenger and departure control
applications using industry standards with a view to enhance revenues and reduce
cost.
 Upgrade participation levels with various Global Distribution Systems (GDS) to the
highest level.
 Provide for various modes of booking and check-in and thus extend the convenience
to the customers.
 Timely and accurate revenue determination per flight departure due to uplift of e-
ticket coupons and speedier interline settlements.
 Ensure that NACIL hosted system has incorporated latest Industry Standard (IS)
changes relevant for all PSS applications as per requirements.
 Provide the Customers using the airline IBE for passenger services an experience to
cherish. Provide a world class Frequent Flyer system with comprehensive interface
with other frequent flyer systems of Global Alliances partner airlines.

INCORPORATION

Air India Limited

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Type State Owned Enterprise

Industry Aviation

Founded 30 March 2007

Headquarters Airlines House, New Delhi

Key people Ashwani Lohani

(Chairman & MD)[1]

 Airline
Services
 Ground Handling
Services
 Hotels
 Services

Revenue ₹142.551
billion(US$2.1 billion) (2011)[2]

Owner Government Of India

Number of 28,085 (2011)

employees

Subsidiaries  Hotel Corporation of India

Limited
 Air India Air Transport
Services Limited
 Air India Engineering
Services Limited
 Air India Express
 Alliance Air[3]

11
 Website www.airindia.com

SUBSIDIARIES COMPANY
Air India has the following subsidiary companies with an authorized/Paid-up Capital ( in Rs.
Crores) as under:

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13
AIRCRAFT OF AIR INDIA

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15
16
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Personnel department has various sections:

1) Recruitment
2) Establishment
3) Leave and passage
4) Training
5) Welfare

18
Daily Activity Report

Date List of activities for the day My learning for the day
03-JUNE- Introduction to AIR INDIA Learn about company.
2019

04-JUNE- ECS Basic concepts of ECS.

2019
To
06-JUNE
2019
07-JUNE- ZFI’S Knowledge of ZFI and entries in
2019 excel.

10-JUNE- ZFI’S Hotel bills.

2019
To
21-JUNE-
2019
24-JUNE- SAP Knowledge of SAP and vender
2019 payment.
To
26-JUNE-
2019
27-JUNE- Vendor bill entries Knowledge about Vendor bills
2019
To
29-JUNE-
2019
01-JULY- Entries in SAP How entries are paased in SAP
2019
To
06-JULY-
2019
08-JULY- Entries regarding Payment of Vendors Payment system known
2019
To
13-JULY-
2019
15-JULY- SAP Hospital bills entries in sap
2019
And

19
20-JULY-
2019
22-JULY- Talked about report
2019
23-JULY- Preparing Project Report Various aspects of Report making
2019
To
26-JULY-
2019
29-JUlY- Take a day off to have fun with other Quality time
2019 interns
30-JULY- Training Certificate taken Bid farewell to the staff employees.
2019

RECRUITMENT
Recruitment is the process of identifying the sources for prospective candidates and to encourage
them to apply for the job. It’s linking activity bringing together those with jobs and those
seeking jobs. It locates the source of manpower to meet the requirements and job specifications.

In recruitment process available vacancies are given wide publicity and suitable candidates are
encouraged to submit applications so as to have a pool of eligible candidates for the best
selection.

PURPOSE OF RECRUITMENT
 To increase the pool of job applicants with minimum cost.
 To meet the organization’s legal and social obligations regarding the demographic
composition of its workforce.
 To help increase the success rate of the selection process by reducing the percentage of
applicants who are either poorly qualified or have unwanted skills.

RECRUITMENT METHODS

EXTERNAL RECRUITMENT: Candidates are sought from outside the hiring

organization.

These include:

 Walk in interview

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  Advertising
 Private placement agencies
 Campus recruitment

INTERNAL RECRUITMENT: Candidates are sought from within the organization.

These includes:

 Promotions
 Transfers
 Former employees

Recruitment Done By Air India Ltd.

Currently, AIL is not recruiting employees except for the IFS department and that too on the
contractual basis. Whenever the IFS need recruitment of employees, it tells the recruitment
section of the personnel department via an email. Now the recruitment section releases an
advertisement regarding this informing all employee prospects of the eligibility criteria,
requirements and a written examination date. Interested candidates can now apply and fill out
the application form on the Air India website. Then these candidates come and give an
examination. Based on the result of the written examination, selected candidates are called for
documents verification, preliminary medical check-up and PAR (Personality Assessment
Report). The hiring board conducts the PAR, and if found unsatisfactory, the reviewing board
consisting of GM (P) then conducts the PAR again. Most candidates are filtered in these
procedures. The results are then posted online, and the selected candidates are called for
extensive detailed medical examination. Then these candidates are sent for training at the
training centers at Mumbai or Hyderabad. Now the work of the establishment section starts.

ESTABLISHMENT SECTION
This section is one of the most important sections because it performs various functions
including making and maintaining of APA’s, updating of personal data of employees,
verification of documents, transfer of employees, gratuity, retirement related actions,
maintenance of personal files,etc.

LEAVE AND PASSAGE SECTION

Conditions regarding all types of leaves:

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  No kind of leave can be claimed as a matter of right and the sanctioning authority will
sanction any leave only upon being satisfied with the reasons for grant or leave. The
competent authority may refuse leave according to the exigencies of company’s work.
 All leave should be applied for in writing addressed to the appropriate authority within
the time prescribed.
 A Sunday/weekly off or a holiday falling at the beginning or at the end of the leave
period or both shall not be counted as part of the leave.
 If a leave is refused, postponed or revoked the reasons thereof shall be communicated to
the employee concerned.
 A compensatory off day/days may be prefixed or suffixed to any type of leave with the
prior permission of the competent authority.

PASSAGES
Passage is a welfare measure provided to those employees of the company who have completed
one year of service. They are entitled for free and discounted passage to travel.

4 complementary passages are given which cannot be accumulated and are lapsed after a year.

Retired employees are also given this benefit.

The passage is also given to family members of staff on leave.

TRAINING
The training programs conducted for the employees are based on the needs and requirement of
the job. The following training has been provided to the employees:

1) Training regarding recruitment of perspective employees

2) Orientation program for the newly appointed employees

3) Role and function of personnel department for management trainees.

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As well as many interesting activities are also conducted such as importance of yoga, meditation,
laughter therapy sessions,etc.

WELFARE SECTION

Air India ltd. Provides benefits to its employees under two categories:
1) Statutory Benefits
2) Non- Statutory Benefits

STATUTORY BENEFITS

1) WORKMEN COMPENSATION ACT(1923)

In case of temporary or permanent injury, caused to an employee while service in the
organization has to provide compensation to the employee.

2) PROVIDENT FUND ACT (1925)

Under section 45 of the Air Corporations Act 1953. As per this act 10% of the basic pay is to be
contributed by the employees as well as the employer.

3) WAGES ACT (1936)

According to this act, the wages and salaries will be paid on fixed time and all deductions done
should be told to employees.

4) INDUSTRIAL DISPUTES ACT (1974)

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As per this act, a committee known as works committee is formed which deals with the welfare
of employees at the grass root level. The members of this committee are 50% from the
employer’s and 50% from the employee’ side.

5) EMPLOYEES STATE INSURANCE ACT(1948)

According to this act, if the employee or his family members are sick then the company looks
after their health.

6) FACTORY ACT(1948)
This act takes care of the service conditions, work environment, facilities like rest rooms, lunch
rooms, canteen, etc. are given to the employees. It also keeps a check on the working hours and
action is taken whenever regulations are violated

NON- STATUTORY BENEFITS

1) MEDICAL FACILITIES:
Employees are provided free medical facilities, both ambulatory and hospitalization. Fully
equipped medical clinics are functioning at all important work places at base stations manned by
competent medical facilities under competent medical officers. The employee’s families are
provided medical facilities under contributory scheme on payment of nominal contribution.

2) STAFF HOUSING:
Staff quarters are provided at Mumbai, Delhi, Kolkata, and Chennai and on some other major
stations subject to availability. Employees who are allotted staff quarters are paid House Rent
Allowances (HRA).

3) CANTEENS:
Food is provided at subsidized rates to the employees of the organization.

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4) GROUP INSURANCE SCHEME:
In case of death of the employee while in service, his family members are paid group insurance,
quantum of which depends on the pay drawn by the employee at the time of his demise. This is a
non-contributory scheme.

5) HOLIDAY HOMES:
Holiday homes have been established at a number of places of tourist interest wherein the staff
are only required to pay a nominal rent for accommodation.

PAYROLL MANAGEMENT SYSTEM

Payroll Management is a distributed application, developed to evaluate the performance of
employees working in any organization. It maintains the information about the company,
personal details of their employees.

It is simple to understand and can be used by anyone who is not even familiar with simple
employees system. It is user friendly and just ask the user to follow step by step operations by
giving him few options. It is fast and can perform many operations of the company.

There are various modules related to payroll management system, like employee module into
which we can enter employee details such as his name, address,phone number, e-mail id, basic
salary and many more. After that we can view the details further by using the employee id and
we can modify the details also. We can also view the salary issued to the employees.

Thus it performs the following activities:

 Personal record of all employees.

 Salary calculation of all employees
 Promotion and transfer related activies of employees.
 Salary calculation of all employees.

These all functions are performed by a special software known as SAP.

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SAP software: SAP ERP is an enterprise resource planning software developed by the
German company SAP SE. SAP ERP incorporates the key business functions of an organization.
Business Processes included in SAP ERP are Operations- Sales& Distribution, Materials
Management, Production Planning, Logistics Execution, and Quality Management, Financial
Accounting, Management Accounting, Financial Supply Chain Management, Human Capital
Management Training, Payroll, e-Recruiting.

SAP employee file management software helps to deliver complete, complaint, accessible
digital records of workforce in an organization – making Human Resource management of
organization more efficient. Resulting in Simplified management of worker related documents-
lowering operational costs and making employees happier.

SAP also helps to:

 Process personal tasks faster with fewer errors- reducing time spent on labour
intensive, administrative tasks
 Organize records for instant accessibility and search – complying with legal
requirements
 Deliver high quality HR services for large number of employees at reduced time and
cost.
 Consolidate HR staff duties to service all locations – reducing HR overhead and other
costs
 Optimize and automate strategic activities such as recruitment, skills & development,
and more.

SAP FI MODULE

SAP (Systems, Applications, and Products) in data processing is the leading ERP (Enterprise
Resource Planning) business application software in the market today. The software provides a
unified platform that allows business processes integration.

SAP is developed by SAP AG, a German software company founded in1972 by five ex-IBM
employees. With its headquarters in Germany, SAP has regional offices around the world.SAP
is used by many Fortune 500 companies worldwide as a business solution for processing

26
operational data and for generating reports in real-time, which helps all levels of management
make better decisions and enables them to manage business processes effectively and
efficiently

SAP is scalable and is suited for medium and large organization. Companies can customize the
system to meet their specific needs. SAP comes with the Easy Access menu and
implementation Guide (IMG) menus.

Easy Access

The Easy Access menu is the first screen that comes up when you logon to SAP. It is designed
in a tree structure containing a list of several key items that provide the options that allow you to

27
navigate the system and perform tasks and business processes. For example, you can perform
transactions and generate reports and access web addresses (where you can access
documents from a remote internet server).

Unified Platform

SAP provides the platform where all business processes are executed in a single system and
share common information.

Incorporating Multiple Languages and Currencies

SAP ERP is ideal for multinational organizations because of the flexibility incorporated, which
allows the system to run on multiple currencies and use different languages. These features
make SAP a global software solution.

Integrated ERP Solutions

SAPERP is an integrated ERP package that incorporates other modules. These include
Financial (FI),Controlling (CO), Material Management (MM), Sales and Distribution (SD),
Production Planning (PP),Human Resources (HR), Financial Supply Chain Management
(FSCM), Customer Relationship Management

(CRM), and others

Global Presence

As the market leader in ERP, the SAPERP solution is currently used in over 28 industry sectors
and has a strong global presence in more than 120 countries worldwide. This number is
predicted to rise.

Financial module (FI)

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The FI module is a business process designed specifically for organizations to maintain their
financial records efficiently on a daily basis, for management to be able to ascertain their
financial position, and for those who need to generate financial statutory reports for external
purposes to meet the needs of various stakeholders in real-time.

The FI module consists of other sub modules, including: General Ledger (G/L), Accounts

Receivable (AR), Accounts Payable (AP), Bank Accounting, Asset Accounting, Special Purpose
Ledger, Travel Management, and so on.

FI is integrated into other modules like Sales and Distribution (SD) and Material Management
(MM).

Postings made in these modules with financial implications are posted real-time to FI.

Company code

In the SAP ERP, the company code is an organizational unit used in FI to structure a business
process for financial reporting purposes. SAP FI gives you the option to edit (create from
scratch) your company code or copy the parameters of an existing company code and modify
them to meet your requirements.

Multiple company code may be assigned to a company depending on the requirement. For e.g
A company may have different company codes for different geographical region, in order to
make financial reporting easier

Business Area

A business area is an organizational unit that represents a specific business segment in SAP
that defines a functional area of operation, a plant, or an area of responsibility. For example,
business areas can be a product the company sells, a geographical location, and so on.
Business area is optional and is intended purely for internal financial reporting. They can be
used across company codes for reporting. They are also viewed as balancing entities that can
produce their own set of financial statements. We can define a business area in SAP ERP using
four characters. A business area can be assigned to a company code or several company

29
codes. Likewise, it is also possible to assign a company code to a business area or several
business areas.

The advantage of using a business area is that it allows management to generate internal
financial reports on a business function or a combination of business functions. These reports
aid management in decision-making, because they make it easy to tell how well a business
area is performing.

Transaction Codes

In SAP a transaction code (or t-code) consists of letters, numbers, or both, and is entered in the
command field at the top of the SAP screen. Each function in SAP ERP has an SAP transaction
code associated with it.

Some important transaction codes are given below

Display IMG SPRO

Company Code OX15

Change View “Company Code” Overview OX02

Assign Company Code to Company OX16

Business Area OX03

Fiscal Year Variant OB29

Assign Company Code to Fiscal Year Variant OB37

Posting Periods Variant OBBO

Open and Closing Posting Periods OB52

General Ledger

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Business transactions are sorted and stored in G/L accounts that apply the double entry
principle—dual control (debit and credit). Transactions posted to G/L accounts are classified
into assets, liabilities, income ,and expenditures, from which financial statements are drawn.

Posting a Journal Entry in SAP FI

Enter company code

Enter the Document date

The next step is to provide the following details −

 G/L Account − Enter the account to be credited.

 Short Text − Description of amount.

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  Amount in Doc Currency − Enter the amount to be credited.

Similarly, for the Debit, provide data Click the Save button and you will get the document
number to be posted for the company code

SWOT ANALYSIS

For a country of continental size like India, a strong reliable and efficient civil aviation sector
goes a long way in promoting and sustaining tourism. Air India being the undoubted leader in
this industry cannot operate in a vacuum. It need to keep its eyes and ears open to survive in
the liberalized economy of our country, which has paved a way for any private airline to
operate along with it. The internal and external environment contained various strengths,
weakness, opportunities and threats which need to be identified.

SWOT Analysis of Air India

Strength

 Strong backing by the Government of India

 Brand new fleet of aircraft and owns most updated fleet
 Its information systems are advanced

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  Known for its unique and high quality “Maharaja” advertising
 Presence in nearly 54 countries
 Flying to 61 destinations within India

Weakness

 Labour problem and political intervention is a cause of worry

 Financial crises leading to payment issues of employees
 Low profitability and utilization of capacity
 Airline high cost structure and compulsion of being a public sector unit are the reasons it
had been making a loss

Opportunities

 Dedicated set of customers

 Can leverage on brand new fleet
 Expansion of routes and international destinations
 Solving international issues regarding workforce can highly boost image and operations
 The routes agreement is easier to achieve
 The number of foreign visitors and investors to India is increasing rapidly
 Complementary industry like tourism will increase demand for airline services
 Customers are getting wealthier, tend to be less price conscious and prefer to choose
quality service over cost

Threats
 Rising labour costs
 Rising fuel costs
 Faces imminent aggressive competition from world leading airlines and price wars
triggered by domestic players
 Losing market share due to other airlines

What is Motivation?
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 A simple definition of motivation is that it is the description of person’s motive to
action. It is ‘what makes us do what we do.’ The most complex and valuable resources of
every organization are the employees working in it. It has to be considered that people
should be highly motivated and their efforts should also be aligned with the goals of the
organization.

‘Drives within a person that account for the degree, direction and
persistence of efforts extended at work.’

Just like any other word, there are variations of definitions to describe a concept.
Motivation too has many different definitions, but it is important to focus on those that
are related to the workplace. Understanding exactly what motivation is will help
managers decide what actions to take to encourage their employees. The definition of
motivation starts with the root word, motive. Webster’s Dictionary defines motive as,
something that causes a person to act. Therefore, motivation can be defined as, the act of
providing motive that causes someone to act (Shanks, 24). In other words, according to
Nancy Shanks, motivation causes someone to act and someone else cannot make
someone motivated. It is the discretion of the person to decide if they are going to be
motivated or not. Motivated and unmotivated are not opposites, but instead, there are
determining factors that could cause someone to be unmotivated, such as life events and
attitudes towards a specific job.
Motivation is an employee’s intrinsic enthusiasm about the drive to
accomplish activities related to work. Motivation is that internal drive that causes an
individual to decide to take action. Every employee has activities, events, people, and
goals in his or her life that he or she finds motivating. So, motivation about some aspects
of life exists in each person’s consciousness and actions. The trick for employer is to
figure out how to inspire employees’ motivation at work. To create a work environment
in which an employee is motivated about work, involves both intrinsically satisfying and
extrinsically encouraging factors. Employee motivation is the combination of fulfilling
the employee’s need and expectations from work and the workplace factors that enable
employee motivation. These variables make employee motivation challenging. Many
employers fail to understand the significance of motivation in accomplishing their
mission and vision. Even when they understand the importance of motivation, they lack
the skill and knowledge to provide a work environment that fosters employee motivation.

Motivators

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A. Desire for pleasure (positive motivators) - represents desirable qualities that we want
to achieve and will usually direct our actions to attain one or more of them.
B. Avoidance of pain and discomfort (negative motivators) - we usually attempt to avoid
them. They do motivate us to take actions but only in trying to avoid this.

Positive and Negative motivators comprises of following factors:

“Connection and belonging, Independence, Constancy, Change, Power and control,

Progress, Achievement, Recognition, Stimulation, Possession, Self expression,
Contribution, Meaning purpose and values and Physical conditions.”
Every factor may act as positive or negative motivators i.e. it varies
from person to person. Ex: An employee works harder and harder so as to get connected
with the upper management and stay connected with the group he belongs to. On the
other hand he may work harder and harder so as he does not lose the recognition he gets
from upper management.
Employee performance is frequently described as a joint function of
ability and motivation, and one of the primary tasks facing anger is motivating
employees to perform the best of their ability (Moorehead and Griffin, 1998).
Pinder (1998) describes work motivation as the set of internal and
external forces that initiate work related behaviour, and determine its form, direction,
intensity and duration; work motivation is a middle range concept that deals only with
phenomena related to people in a work context. Pinder (1998) said that an essential
feature of this definition is that work motivation is an invisible, internal and hypothetical
construct, and that researchers, have to rely on established theories to guide them in
measuring work motivation.

Various theories of Motivation are as follows:

1. Maslow theory: Maslow gave hierarchy of need category. According to him,

lower needs take priority. They must be fulfilled before the others are activated.
There is some basic common sense here—it’s pointless to worry about whether a
given colour looks good on you when you are dying of starvation, or being
threatened with your life. There are some basic things that take precedence over all
else.

35
 2. Alderfer’s theory: Alderfer classified need into three categories, also ordered
hierarchically-
 Growth needs (development of competence and realization of potential)
 Relatedness needs (satisfactory relations with others
 Existence needs (physical well-being)

Alderfer believed that as you start satisfying higher needs, they become more intense
(e.g. the Power you get the more you want Power), like an addiction.

3. Herzberg two factor theory: According to Herzberg, two kinds of factors

affect motivation, and they do it in different ways:
Hygiene Factors. These are the factors whose absence de motivates, but whose
presence has no perceived effect. They are things that when you take them away,
people become dissatisfied and acts to get them back
Motivators. These are factors whose presence motivates. Their absence does not
cause any particular dissatisfaction, it just fails to motivate.

4. Reinforcement theory: Operant conditioning is the term used by B.F. Skinner

to describe the effects of the consequences of particular behaviour on the future

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occurrence of that behaviour. There are four types of operant conditioning: Positive
Reinforcement, Negative Reinforcement, Punishment and Extinction.

Positive Reinforcement-This is the process of getting goodies as a consequence of

behaviour. You make a sale, you get a commission. You do a good job; you get a
bonus and promotion.
Negative Reinforcement-This is the process of having a stressor taken away as a
consequence of behaviour.
Extinction- This is the process of getting no goodies when you do behaviour. So if
person does extra effort, but gets no thanks for it, they stop doing it.
Punishment- This is the process of getting a punishment as a consequence of
behaviour. E.g. having your pay docked for lateness.

5. Equity theory: Equity theory says that it is not the actual reward that
motivates, but the perception, and the perception is based not on the reward in
isolation, but in comparison with the efforts that went into getting it, and the rewards
and efforts of others. If everyone got a 5% raise, B is likely to feel quite pleased with
her raise, even if she worked harder than everyone else. But if A got an even higher
raise, B perceives that she works just as hard as A, she will be unhappy.
6. Vroom’s Expectancy theory: Motivation = Expectancy * Instrumentality *
Valence
Expectancy- the person’s perception that effort will result in performance. In other
words, the person’s assessment of the degree to which effort actually correlates with
performance.
Instrumentality- The person’s perception that performance will be
rewarded/punished.
Valence- The perceived strength of the reward or punishment that will result from
the performance. If the reward is small, the motivation will be small, even if
expectancy and instrumentality are both high.

Job Satisfaction- Job satisfaction is a complex and multifaceted concept, which

can mean different things to different people. It is usually linked with motivation, but
the nature of this relationship is not clear. Satisfaction is not the same as motivation.
Job satisfaction is more of an attitude, an internal state. It could, for example, be
associated with a personal feeling of achievement, either quantitative or qualitative.
It is often suggested that job satisfaction is necessary in order to achieve a high level
of motivation and performance. One view, associated with the early human relations
approach, is that satisfaction leads to performance. An alternative view is that
performance leads to satisfaction.

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Dimensions of Job Satisfaction:
 Individual factors include personality, education and qualifications,
intelligence and abilities, age, marital status, orientation to work.
 Social factors include relationships with the co workers, group working and
norms, opportunities for interaction, informal organization.
 Cultural factors include underlying attitudes, beliefs and values.
 Organizational factors include nature and size, formal structure, HR policies
and procedures, employee relations, nature of work, technology and work
organization, supervision and styles of leadership, management systems, and
working conditions
 Environmental factors include economic, social, technical and government
influences.

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 CONCLUSION
I had a great experience working at AIR INDIA LTD. This helps to find out my strengths and
weaknesses. I have gathered a real life working experience and learned about professionalism
and I became more confident now. I made the best to perform all my responsibilities that has
given to me. Especially working in this environment made me realize my competencies and
level of understanding about human resources.

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 REFERENCES

http://www.airindia.in/

https://en.wikipedia.org/wiki/Air_India

https://www.ijerm.com/download_data/IJERM0506003.pdf

http://www.civilaviation.gov.in/sites/default/files/moca_001684.pdf
http://Click.airindia.in

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