Air India Project Final PDF

EVALUATION OF ES & PAS
AIR INDIA
INDUSTRY 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 Naini 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 Drigh 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 1950s
forced the government to step in and nationalize the air transport industry and accordingly two
autonomous corporations were created on 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.
ASM’S, IMCOST, THANE Page 1

AIR INDIA
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 Limited to the national
preparedness for the inevitable progressive globalization 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.

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OBJECTIVE
• 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.
• To promote international tourism to India and to improve the nation’s 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.

AIR INDIA
BOARD OF MEMBERS
• Minister of Civil Aviation

• Chairman Secretary – Ministry of Civil Aviation
• Chairman – Air India
• Managing Director - Air India
• Chairman – Airports Authority of India
• Joint Secretary - Ministry of Civil Aviation
• Joint Secretary and Financial Advisor - Ministry of Civil Aviation
• Chairman – Indian Airlines
• Managing Director - Indian Airlines
• Chairman – ICICI Ltd.

AIR INDIA
MANAGEMENT
• MR. V. THULASIDAS-Chairman & Managing Director

• MR. V. K. VERMA, Commercial Director
• MR. JITENDER BHARGAVA, Director-Public Relations
• MR. V. K. MEHRA, Director- Engineering
• MR. HASAN GAFOOR, Director-Security
• MR. S. PUNHANI, Director-Finance
• MR. BABU PETER, Director-Engineering (Engine Overhaul)
• MR. AMOD SHARMA, Director-Inflight Services
• CAPT. M.K. HATHI, Director-Operations
• MRS. M. KACKER, Chief Vigilance Officer
• MR V.CHANDRAMOULI, Director-Internal Audit &
Executive Director-Mumbai Airport
• MR S. RANGANATHAN, Director-Ground Services
• MR V.A. FERREIRA, Director-Human Resources Development
• MR.V.SRIKRISHNAN, Director-Materials Management
• MRS.S.LALWANI, Director-Planning & International Relations
• CAPT. DEEPAK ANAND, Director-Air Safety
• MR. S. MUKHERJEE, Offg. Director-Corporate Affairs
• MR.I.S.VHATKAR, General Manager-Properties & Facilities
• MR.S.PHADKE, General Manager-Department of Information Technology
• Mr.D.S.KOHLI, Director-Northern Region

AIR INDIA
ORGANIZATION STRUCTURE
Chairman
Managing Director
Director
General Manager
Deputy General Manager
Assistant General Manager
Senior Manager
Manager
Deputy Manager
Assistant Manager
Clerical staff

AIR INDIA
DEPARTMENTS
• AIR SAFETY
• COMMERCIAL
• DEPARTMENT OF INFORMATION TECHNOLOGY
• ENGINEERING
• FINANCE
• GROUND SERVICES
• HEADQUARTERS
• HUMAN RESOURCES DEVELOPMENT
• INFLIGHT SERVICES
• INTERNAL AUDIT
• MATERIALS MANAGEMENT
• MEDICAL SERVICES
• OPERATIONS
• PUBLIC RELATIONS
• PLANNING AND INTERNATIONAL RELATIONS
• PROPERTIES AND FACILITIES
• SECURITY
• VIGILANCE

AIR INDIA
HUMAN RESOURCES DEVELOPMENT

DEPARTMENT
The importance of human assets in any organization can never be overemphasized. There is a
fundamental truth in the cliché that, ‘People are an organization’s most important asset’. Human
resources can be compared to economic resources, whose development and utilization require
proper planning and management. In fact, human resources are much more fundamental in
sustaining continuous development and prosperity than economic resources. That is why we find
smaller countries like Singapore and South Korea have developed into economic tigers despite
being devoid of any natural resources, and on the other hand large countries like Brazil and India
languishing in the bottom, despite having abundance of natural resources. What makes the
South-East Asian countries globally competitive is the fact they have succeeded in putting in
place a Human Resources Utilization System that encourages maximum utilization of human
resources by developing and updating the people’s skills, encouraging entrepreneurship,
allowing freedom of expression and encouraging to tread on unknown territories.
Air-India in its quest to become a globally competitive entity in the world aviation scenario
has tried to put in place a sound HR Management System that would focus on encouraging the
maximum utilization of its vast human resources, thereby strengthening its endeavor to put in
best practices to serve the customers in the most perfect manner. The evolution of HRD
Department in Air-India is an outcome of such objectives. The results have been quite
encouraging. Air-India has 9 different sections, each looking after specific areas in HRD. The
different sections are:
• MANPOWER AND PLANNING DIVISION
• RECRUITMENT SECTION
• SC/ST CELL
• WELFARE SECTION
• ESTABLISHMENT DIVISION
• TIME OFFICE

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• INDUSTRIAL RELATION DIVISION

• CANTEEN SERVICES
• HINDI SECTION
MANPOWER PLANNING DIVISION
The manpower planning division is engaged in the assessment & review of staff
recruitments in various categories for the entire company. The requirements of the manpower
projected by the various departments are examined by the division; keeping in view the work
load & the positional requirements in a particular area, pattern of operations etc. so that adequate
personnel are available to meet the desired level of service.
The proposals pertaining to creation/abolition of posts, recognitions & up gradation of
posts, requirements & postings of officers, formation of promotion/selection panels &
scrutinizing of panel reports, administration of performance linked incentive scheme for officers
& staff etc. received from various departments are examined by this division.
ESTABLISHMENT DIVISION
The Establishment Division handles a plethora of activities, which includes Grievance

redress, Performance Appraisal, Maintenance of personal records & assurance of promotion
confirmation & Retirement settlements.
Establishment Division is the backbone of HRD department. It comprises of maintaining
Human Resources Information System pertaining to all India based employees of the Company,
which is approximately 15000+. Briefly, the list of activities carried out in the Establishment
Division is as follows: -
1. Creation of personal files / record cards.

2. Creation of new grade / designation code.
3. Probation for new recruits.
4. Verification of previous employment, character, & antecedents.
5. Confirmation.

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6. Annual increments.
7. Seniority of non-technical categories.
8. Performance appraisal reports.
9. Promotion.
10. Fixation of salary on promotion.
11. Release of confirmation letters after promotion.
12. Implementation of punishment orders.
13. Implementation of wage / salary agreements.
14. Rectifying pay anomaly.
15. Final settlements of accounts on: -
 Superannuation
 Resignation / termination
 Voluntary Retirement / VRS scheme
 Death
 Dismissal / removal
 Retirement on medical grounds
 Annuity
16. Payment of gratuity.
17. Parting gift
18. Service plaque
19. Miscellaneous
 Filing of documents
 Queries from Ministries / Parliament.
 Official language
 Trade apprentices
 Reports– statutory & non-statutory
20. Filing of Approval Applications before NIT / CGIT.
21. Record management.

AIR INDIA
TIME OFFICE
The basic function of Time Office is Time-keeping, which includes:
 Monitoring of Attendance
 Leave Maintenance
 Calculation of Payments
Time Office has its offices at Old Airport and at Medicon Bhavan. At the Indian
outstations such as Delhi, Chennai and Kolkata, regional HRD Office has a Time Office Unit.
Time Office at Old Airport monitors attendance of the staff working at OAP and the staff
working in Properties & Facilities and Security Departments at Nariman Point, Mumbai.
Time Office at Medicon Bhavan monitors the attendance of the staff working at CSI Airport,
Sahar, and NIPTC. Time Office at The Indian outstations mentioned above carry out time-
keeping functions relating to the staff working in the respective stations. In respect of the staff
working in other stations except OAP, NIPTC, Delhi, Kolkata, and Chennai, time-keeping
functions are carried out by the administrative units of the respective departments.
SC/ST CELL
The Director of HRD, who has also been designated as the liaison officer of the
company, has been entrusted with the responsibility of implementing the orders & instructions
issued by the Ministry for Reservation of SC/ST/OBC.
Dy. General Manager
Asst. Manager

AIR INDIA
Subordinate Staff
WELFARE & PASSAGE DIVISION

Welfare section as the name itself suggests its worth. The division is constantly works
for the contentment and well being of its employees.
Functions of welfare section in Air-India are broadly categorized as: -
1. The statutory welfare
2. Non statutory (Voluntary welfare)
INDUSTRIAL RELATION DIVISION

Industrial Division is one of the most important divisions of the HRD set-up in Air-India.
In fact, it is the only intermediary between the Management and the Union. IR Division deals
with two aspects, namely:
 Wages and Unions

 Legal Matters
Air-India has seven unions that have been formed category-wise. Following are the unions:
 Air-India Employees Union: This union consists of technical and non-
technical staff along with the workmen category. It is the biggest union in terms
of size, encompassing 8263 employees of Air-India.
 Air-India Officers association: It consists of the general cadre officers
from Asst Manager onwards, upto the Asst Gen Manager level. The membership
is 3311.
 Air-India Engineers Association: It consists of the non-licensed category
engineers who deal with the maintenance and repair of the aircrafts. These
engineers belong to non-workmen category. The strength is 158.
 Air-India Aircraft Engineers Association: It consists of the licensed
category engineers, who have obtained licensed from DGCA to certify the

AIR INDIA
aircraft. The membership is restricted upto Dy. Chief Aircraft Engineer and
below. The strength of the union is 484.
 Air-India Cabin Crew Associations: It consists of all the flying cabin
crewmembers i.e., the airhostess and the flight pursers with total strength of 676.
 Air-India Flight Engineers Association: It consists of all the general
flight engineers. These engineers are not allowed to go to strike as new planes are
being introduced. The membership is a paltry 14.
 Air-India Pilots Union: It consists of first officers and senior captains
and has a total strength of about 275 employees. The members of this union
belong to the workmen category. Recently, it has been de-recognized.
CANTEEN SERVICES
The organization felt for the need for Canteen Facilities to be provided to the staff
working on round-the-clock basis covered under Factories Act. In order to cater to the
employees, canteen was introduced in 1953 at Santacruz, Old Airport. Canteen was extended to
NTB, Cargo-ETV, and NIPTC-Sahar. Canteen is a major welfare activity of the HRD
Department.
There are two types of canteen facilities:
Statutory:
Under the Factories Act, Air-India is required to provide canteen facilities where the
number of employees exceeds 250. Accordingly, Air-India has canteen facilities for workmen at
Santacruz, NIPTC, Delhi, Kolkata, Chennai, and Trivandrum.
Non-Statutory:
A Canteen facility for supervisory/officers category is provided in Mumbai and is
termed as ‘Restaurant’ at Old Airport and Air Building. The executive dining room at OAP
caters to executives and their official guests. It also caters to high-level delegates from the
ministries.

AIR INDIA
HINDI DIVISION
To implement the statutory and administrative provisions as laid down in the Constitution of
the Official Languages Act, 1963; Air India and its regional offices have adopted the following
three-point programme:
 Training
 Translation
 Implementation

AIR INDIA
EMPLOYEE SATISFACTION AND

PERFORMANCE APPRAISAL SYSTEM
Satisfaction can be defined as a state of being gratified. It is a qualitative term more
psychological in nature than concrete. Employee satisfaction is different in different employees
that may be depends on their age, salary, attitude towards their job, etc.Employee satisfaction
mainly depends on 4 C’s,that is commitment,culture,communication and compensation. It is
highly affects the productivity of the organization also. A consistently high level of employee
motivation and commitment are the key factors in developing a positive working environment in
an organization.
Employee satisfaction can be unidirectional or multidirectional. Unidirectional construct
views that you are generally satisfied or dissatisfied with the job. Whereas, multi-dimensional
construct views that you pay, your work place, etc.In any of these cases, high job satisfaction or
highly satisfied employees would show the following:
• A belief that the organization will be satisfying in the long run.
• Care about the quality of work.
• Are more committed and loyal to the organization.
• Are more productive.
Performance appraisal is a tool to rate the employees on their performance. Where

employee satisfaction gives an idea as to how much gratification an organization gives its
employees, PA helps to rate as to how much the employee is giving to the organization ,to his or
her job.
As employee satisfaction and performance seem to be directly related, performance

appraisal techniques its implementations and consequences of the results play an important and
major role in ES.It is a base on which much of an employee’s future in the organization is
decided. (Promotions, demotions, transfers, incentives, etc).Thus PA and ESare two important
concept in relation to any organization.
The people factor or the human factor is the most sensitive aspect of an organization. It is
on this the successes and failures of the organization depend.
It is the same with the enquiry and evaluation of the effectiveness and performance
appraisal that is conducted. Further studies on how effective the performance appraisal system in
other departments are and comparisons will give greater insights and also show how P.A.S can
be implemented more effective.

AIR INDIA
Performance appraisal evaluation provides the overview and solution of the process of
assessment of the employees, objectivity of the current appraisal system, relevance of the
existing appraisal system in identifying employee potential in holding higher responsibilities, If
provided with more time a study on the available concepts and peer practice in different
organizations can be conducted. They can be compared and contrasted and the best can be
inducted to be implemented.
SCOPE OF THE STUDY

This study mainly focuses on the employee satisfaction as well as performance appraisal
system in Air India. Employee satisfaction is different in different employees that may be
depends on their age, salary, attitude towards their job, etc.Employee satisfaction mainly depends
on 4 C’s,that is commitment,culture,communication and compensation. It is highly affects the
productivity of the organization also. A consistently high level of employee motivation and
commitment are the key factors in developing a positive working environment in an
organization.
It is the same with the enquiry and evaluation of the effectiveness and performance
appraisal that is conducted. Further studies on how effective the performance appraisal system in
other departments are and comparisons will give greater insights and also show how P.A.S can
be implemented more effective.
Performance appraisal evaluation provides the overview and solution of the process of
assessment of the employees, objectivity of the current appraisal system, relevance of the
existing appraisal system in identifying employee potential in holding higher responsibilities, If
provided with more time a study on the available concepts and peer practice in different
organizations can be conducted. They can be compared and contrasted and the best can be
inducted to be implemented.
Based on this study we can easily identify how much employees are satisfied in their job
and performance appraisal system followed in Air India. According to this the organization can
improve their working environment and appraisals.

AIR INDIA
OBJECTIVES
The main objectives of this project are as follows:

 To evaluate and analyze the employees satisfaction in HRD department of Air India
 To understand the current performance appraisal system of Air India
 To understand the attitude and satisfactory level of the employees towards their
performance appraisal system, working condition in Air India
 To evaluate satisfactory level of the employees towards the incentives and benefits
provided by Air India
 To evaluate the effectiveness of performance appraisal system in Air India
 To determine the performance appraisal as an important factor in employee satisfaction
 To understand the post appraisal measures taken after evaluating the performance of the
Employees

AIR INDIA
LIMITATIONS
The main limitations of the project are

1) Scope of the research is confined to the study of Air India’s human Resource
Management
2) Since the time of the year was such that there is maximum absenteeism, the availability
of subjects to approach with the questionnaire were difficult to find and also time
consuming to re-collect the same
3) It was thus necessary to concentrate on a single department and select a small sample size
4) The inferences and implications drawn from the findings of the survey thus have only
limited extent of generalization
5) Access to the technical information with respect to the appraisal system was restricted

AIR INDIA
RESEARCH METHODOLOGY
SAMPLE DESIGN
a) Sample Area : HRD Department of Air India, Old Airport
b) Sampling Technique : Convenience Sampling
c) Total Population : a) 100 office staff
b) 15 manager level executives

d) Sample Size : a) 40 of the office staff
b) 12 of the manager level executives
METHOD OF DATA COLLECTION

• Questionnaires
• Briefs provided to us by the various sections within the HRD departments
A) Primary Data :
• Questionnaires
• Interviews
B)Secondary Data :
• Magazines

AIR INDIA
• Internet
• Management Books
METHOD OF STATISTICAL ANALYSIS
1) 10 of the tentative questions were selected
2) The options were rated
• 5 points for the positive response and 1 point for the negative
response
• Wherein there were 3 options it was rated 5,3,1
• Wherein there were 4 options it was rated 5,3,2,1 accordingly
• Each of the questionnaire were tabulated by way of noting down

the details and the score that each score against the ideal score
of 50
3) Each total was then converted in to percentage form
4) Satisfaction was calculated on 3 basis
• Satisfaction on the basis of groups had 4 categories
a) Below 50% b)50% - 70% c)71% - 90% d) Above 90%.The

average satisfaction in each group is calculated giving the
statistics.
• Satisfaction was also analyzed on the basis of age. The age
group were categorized as a) 30’s b) 40’s c) 50’s.The average
satisfaction in each of these groups were calculated and were
analyzed.

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• The other questions and open ended questions were used to

calculate the percentages in the last 5 findings and the
recommendations respectively.
PERFORMANCE APPRAISAL SYSTEM

Performance appraisal may be defined as a structured formal interaction between a
subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-
annual), in which the work performance of the subordinate is examined and discussed, with a
view to identifying weaknesses and strengths as well as opportunities for improvement and skills
development.
In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify
the better performing employees who should get the majority of available merit pay increases,
bonuses, and promotions.By the same token, appraisal results are used to identify the poorer
performers who may require some form of counseling, or in extreme cases, demotion, dismissal
or decreases in pay. Whether this is an appropriate use of performance appraisal - the assignment
and justification of rewards and penalties - is a very uncertain and contentious matter.
The essentials of an effective performance system are as follows:

 Documentation – means continuous noting and documenting the performance. It also
helps the evaluators to give a proof and the basis of their ratings.
 Standards / Goals – the standards set should be clear, easy to understand, achievable,
motivating, time bound and measurable.
 Practical and simple format - The appraisal format should be simple, clear, fair and
objective. Long and complicated formats are time consuming, difficult to understand, and do
not elicit much useful information.
 Evaluation technique – An appropriate evaluation technique should be selected; the

appraisal system should be performance based and uniform. The criteria for evaluation should
be based on observable and measurable characteristics of the behavior of the employee.
 Communication – Communication is an indispensable part of the Performance appraisal

process. The desired behavior or the expected results should be communicated to the employees
as well as the evaluators. Communication also plays an important role in the review or feedback
meeting. Open communication system motivates the employees to actively participate in the
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appraisal process.
 Feedback – The purpose of the feedback should be developmental rather than judgmental.
To maintain its utility, timely feedback should be provided to the employees and the manner of
giving feedback should be such that it should have a motivating effect on the employees’ future
performance.
 Personal Bias – Interpersonal relationships can influence the evaluation and the decisions
in the performance appraisal process. Therefore, the evaluators should be trained to carry out
the processes of appraisals without personal bias and effectively.

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PERFORMANCE APPRAISAL SYSTEM IN AIR-INDIA

The system of Performance Appraisal in Air-India has been in practice since
1956.Initially; the performance appraisal was linked to the Annual Increment report and was
basically used for grant of annual increment as well as for determining the employee’s suitability
for promotion. However, the annual increment report failed to constitute a proper assessment of
the employee’s work and conduct, his outstanding qualities and weaknesses and his need for
training and development. It was, therefore, decided to improve the system and accordingly a
revised procedure of performance appraisal for various categories of employees was introduced
effective from October 1967. Subsequently, the performance appraisal report forms prescribed
for Officers were revised from time to time. The appraisal has to be completed carefully by the
reporting officer and then countersigned by the countersigning officer.
APPRAISAL FORMS
The appraisal forms applicable to different categories of employees are:
Form ’A’ for officers
Form ‘B’ for supervisory staff
Form ‘C’ for non-supervisory staff
Form ‘D’ for unskilled categories
The Administrative Section of the department concerned fills the part of the forms relating to
personal data of employee. The other parts of the appraisal form are required to be completed by
the reporting officer and then countersigned by the countersigning officer. In case of an officer,
his assessment is done on the basis of 8 criteria. These are:
1. Knowledge 2. Decision Making
3. Results Produced 4. Power of Analysis

5. Personality 6. Human Relations
7. Resourcefulness 8. Communication

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ANALYSIS
1) The below 50% satisfied group, i.e., employees scoring 36, 44, 48 (5 employees in total)
with an average of 43% satisfaction can be said to have poor satisfaction.
Their contribution towards the fulfillment of organizational goals and targets can be
deemed to be zero. As their work quality and quantity are likely to suffer and nowhere
near standards. For example, in the recruitment section, wherein the staff has to meet
deadlines and do the processing as required and as scheduled, the poorly satisfied
employees are likely to lag behind and do their work inefficiently, resulting in
reprocessing etc.
Thus there would be a loss of company resources and time.
The company reputation and productivity would in due course of time degrade.
2) The 50%-70% satisfied group, i.e., Employees scoring 52, 60, 64,68 (11 employees in
total) with an average of 60% satisfaction, can be said to have an average satisfaction.
Their contribution would be around the mark of 50. This group of employees does work
only under compulsion and pressure from higher authorities which reflects in the poor
quality of work due to lack of dedication and genuine interest. Persuading such
employees to work is likely to consume time of the organization. “Work for working
sake” may be deemed as their motive as their dire financial condition may be the only
reason for needing a job.
3) The group with the satisfaction level between 71%- 90%, i.e., Employees scoring 72, 76,
80, 84, 88 (13 employees in total) with an average satisfaction of around 79.66% can be
said to have above average or rather a good satisfaction. Their contribution can be said to
be around the mark of 80.
They produce work of good quality and quantity though there is a likelihood of resources
mismanagement.

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If they are encouraged in the right direction they can prove to be assets to the
organization and belong to the highly satisfied group.
4) Above 90% satisfied group i.e., employees scoring 92, 96, 100 (13 employees in total)
having an average satisfaction of 95.69% can be said to be highly satisfied.
Their contribution to the fulfillment of the organizational goals and targets can be said to be
between the marks of 95 to 100.
They produce the results on time and always try to be efficient in utilizing the available
resources.
They are employees any organization would be proud to have.
The organization would have the responsibility to maintain these employee’s loyalty and
dedication towards the organization.
5) In the age group based satisfaction:
a) 35% of employees i.e., 14 employees in total who lie in their 30’s, having an
average satisfaction of 73.4% can be deemed to be around the mark of 70, thus
average satisfaction.
b) 47.5% of employees i.e., 19 employees in total who lie in the age group of the40s
having satisfaction of 81% can be deemed to be around the mark of 80, thus
highly satisfied.
c) 15% of the employees i.e., 6 employees in total lie in the age group of the 50’s
and an average satisfaction of 65.3% can be said to have poor satisfaction.
6) Thus, employees in the age of 40s are most satisfied than the 30’s or the 50’s.
a) This can be accounted from the fact that the younger (30’s age group) employees
would still be considering ‘greener pastures’ ie., other organizations with a little
more of everything they get now, better salary, perks, facilities, career
advancement chances, new experiences, etc.
b) Whereas the older (50’s age group) employees would be filled with apprehension
of retirement and the rest of the years after retirement. Having reached almost the
end of what they could get in the particular organization and perhaps given their
best, their enthusiasm seems to die out.

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c) The 40s, is the age were mostly employees have family responsibility and social
responsibility; they are no more in a stage wherein they can experiment or even
take risk. A secured job is what they require. They try to make the best of what
they are given- thus profiting the organization and themselves.
7) Analysis of satisfaction levels among different salary groups show that salaries do not
have any significant effect on the satisfaction level.
a) The satisfaction in 62.5% of employees (25 employees in total) in the salary

group of Rs. 8000- Rs. 15,000 on average is 73.68%.
b) The satisfaction in 35% of employees (14 employees in total) in the salary group
of Rs. 15,000 – Rs. 20,000 on average is 76.53%
On comparing the two groups and their satisfaction level we find that there is only
slight difference in the two levels of satisfaction.
8) Of the 40 questionnaires collected 92.5% of the employees (37 employees in total) have
worked for over 5 years in this organization.
9) 32% of these employees (12 employees in total who worked for over 5 years) have said
that they would change their job i.e., choose to work for any other organization, if given a
chance.
10) 58% of these employees (i.e., 7 employees in total who said they would change their job
though having worked for over 5 years in this organization) were found to belong to the
30’s age group.
11) Analysis and calculation of the effectiveness of the Performance Appraisal System has
shown that it is only 70.66% effective i.e., it is just about average.
12) 37.5% of the total sample size have indicated their dissatisfaction with the
implementation of the Performance Appraisal System

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INFERENCE
The research gives the following insights:
1) Employee satisfaction (ES) in HRD department of AI is poor for the majority of the
employees on the whole i.e., more than half of the employees (67.5% of the employees)
need to be brought to the highly satisfied group (above 90% satisfaction).
2) HRD department needs to work on this percentage to raise their average satisfaction to
about 95.6% so as to bring their contribution around the range of 95 to 100.
3) Such a raise in satisfaction and the level of contribution would ensure high quality and
quantity of work.

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4) The age based evaluation of satisfaction which shows that the 40’s are the most satisfied
group than the 30’s or 50’s, show a need to encourage this group to achieve new heights.
5) At the same time, the 30’s age group needs to be motivated to stay on in the service and
provide them encouragement, salary incentives and other facilities according to their
performance.
6) Those in their 50’s can be encouraged to give their best by ensuring them a safe and
carefree retired life ahead. They can also be encouraged to take V.R.S (Voluntary
Retirement Scheme)
7) Though the salary based evaluation of satisfaction did not show any significant effect on
the satisfaction levels, there is scope of research on this aspect by keeping in view the
incentive division and its effect.
8) Further research is also possible on aspects like posts/ positions/designations groups.

Example, Office Administrator, Manager, Assistant Manager, Senior Manager, etc. Such
a research can give insights into the trends that are developing or already existing in an
organization. It would help us determine where these trends are leading the organization.
9) The effectives of PAS in AI, HRD department is just above average. This is mainly
because its implementation is inefficient and there is a lack of professional spirit? PAS
needs reinforcement and backup to make it full proof.
10) Since 37.5% of the employees in HRD department of AI have indicated a dissatisfaction
with the implementation of the PAS. Thus an increase in the effectiveness of the
implementation of PAS will increase the employee satisfaction.
FINDINGS
The following are the findings of the survey: -
• Satisfaction on the basis of groups are:

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1) There are 10% of the total employees in below 50% satisfied group with an
average satisfaction of 43%
2) There are 27.5%employees in the 50%-70% satisfied group with 60% average
satisfaction.
3) 30% of employees belong to the 71%-90% satisfied group with 79.66% average
satisfaction.
4) 32.5% of employees belong to the above 90% satisfied group with the average
satisfaction of 95.69%.
• Satisfaction on the basis of age groups are:-
5) In the 30’s age group there are 35% employees who have average satisfaction of
73.4%.
6) In the 40’s age group there are 47.5% employees having the highest average
satisfaction of 81%.
7) 15% of the employees belong to the 50’s age group with average satisfaction of
65.3%.
• Satisfaction on the basis of salary groups are:-
8) 65.5% employees fall in the Rs. 8,000- Rs. 15,000 salary group and have an
average satisfaction of 73.68% which is only a little less than the average
satisfaction 76.53% of the Rs. 15,000 – Rs. 20,000 salary group.
• 92.5% of the salary has worked for over 5 years. 32% (12 employees) such employees
have expressed a wish to change organization i.e., Job, if given a chance.
• 58% of these 12 employees belong to the 30’s age group.

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• The Performance Appraisal System is only 70.66%effective and 37.5% of the sample size
have expressed dissatisfaction with the ineffective implementation of Performance
Appraisal.
SUGGESTIONS
I. To improve Employees Satisfaction (ES) in AI, HRD department
There is a need for several changes in wake of improving the ES- some major ones and some
minor ones. They are as follows:
1) AI on the whole has a very rigid hierarchy. There is a need to make it more lucid,
perhaps decentralize it so that are no delays in decision making- for example, in
implementing the charter of demands, bringing transparency in decision making
and day-to-day working, in building an environment where employees and
management can correlate with each other on a more co-operative basis to bring
about a co-ordination in the functioning of each department and within each
department.
2) Since, AI is a government organization; its policies need to undergo changes.
• Transfers can be made interdepartmental. Thus providing employees with

new exposure and avoiding a feeling of stagnation inducing tardiness and
lazy atmosphere.
• It would also induce the workers and help them in self-development and
increase their knowledge about the organization on the whole.
• Promotion policy also needs to be changed.
• Promotions should be awarded only on merit basis/performance basis.

Such a policy will automatically bring about a healthy competitive spirit,
decreasing even eliminating unnecessary delays in meeting deadlines, and
uncalled absenteeism. It will increase self-efficiency and induce a
professional attitude and ultimately increase the profit and goodwill of the
organization.
• According to the present policy timely promotions on basis of seniority

are granted unless any serious offence is reported. Thus personal bias and
partiality is bound to have the majority toll decreasing the morale of
employees.

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3) All departments need to be fully computerized. This would lead to an increase in

the efficiency of the employees and save time and energy and produce quality
work and quantity of work within a short time span. This would also allow cutting
out the disinterested employees from the organization and curtailing wasteful
expenditure.
4) By inducing competitive spirit in the employees, the facilities provided would be

claimed only by those who are eligible and are worth to enjoy them. Thus it
would curtail the wastage of resources.
5) Updating employees on new technology and developments in their field will act
to increase their efficiency. Periodical workshop, seminars are means of doing
this. Also time to time on-the-job training will avoid a lot of confusion and
misunderstandings which lead to waste of time and resources.
These changes will boost the morale of the employees and prove beneficial
to the organization which would ultimately benefit the employees.
II.To Increase The Effectiveness of Performance Appraisal System (P.A.S)
Though the present PAS is very good, its implementation hasn’t been at
all stressed on or given importance. For almost 20 years of an employee’s tenure, the PAS is a
mere formality, which every employee seems to pass through. Though this system would do
perfectly if it was followed with the professional spirit and to be implemented as a compulsory
measurement for evaluating the monthly, quarterly and yearly work of an employee. Which was
to have serious consequences for the career progression and incentives rewarded to any
employee then it would surely do wonders for raising the productivity and profit of the
organization/ department.
Thus certain recommendations are put forth:
1) The implications of the PA should change. It should have practical
implications ie., if an employee has lagged behind in his performance, it
should affect his promotions or the incentives or other facilities he would
enjoy. This is possible only if the policies need to be remodeled
2) The steps should be strictly complied with, in a professional manner and rule
out the possibility of partiality playing any role.
3) Self- Appraisal can be implemented on a regular time basis. This can be taken
into account along with quarterly/yearly PA. this also keeps an account of all

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the assignments done by the employee and the time period taken to complete
each. This can be checked by the Supervisor. This would also aid the
employees in self development.
4) Personal counseling, which is a post appraisal step should also be given more
importance. Critical cases can be handled better by this method. It would also
act as an encouragement to the employee and he/she will feel cared for in the
organization.
5) A follow up is absolutely necessary as the organization need to keep a track

of activities the employee is involved in. It is also necessary to monitor
his/her effort in improving on the shortcomings pointed out earlier, as to how
much the employee has improved on those points and how he/she is
performing at present.
TABLES
TABLE – I
TABULATED QUESTIONNAIRE TO THE EMPLOYEES
NUMBER EMPLOYEE SALARY SCORES TOTAL %of
AGE GROUP SCORE SATISFACTION
GROUP
Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Q11
1 40’s 5 3 3 5 1 1 1 1 5 5 30 60
2 40’s 5 3 5 1 5 5 5 1 5 5 40 80
3 40’s 5 3 5 5 5 5 5 5 5 5 48 96
4 40’s 5 3 5 5 5 5 5 5 5 5 48 96
5 30’s 5 3 5 1 5 5 5 5 5 5 44 88
6 50’s 5 5 5 1 1 5 5 1 5 1 34 68
7 30’s 5 5 5 1 1 1 5 1 5 5 34 68
8 30’s 5 3 5 1 5 1 1 1 5 5 32 64
9 40’s 5 3 3 1 1 1 5 1 5 1 26 52
10 30’s 1 3 3 1 5 1 5 1 5 1 26 52
11 40’s 5 5 5 5 5 5 5 5 5 5 50 100
12 40’s 5 3 5 5 5 5 5 5 5 5 48 96
13 30’s 1 3 3 5 5 1 5 5 5 1 34 68
14 50’s 5 5 3 1 5 1 5 5 5 5 36 72
15 30’s 5 5 5 1 5 5 1 1 5 5 42 84
16 50’s 5 5 3 1 1 5 5 5 5 5 40 80
17 40’s 5 3 3 5 5 5 5 5 5 5 46 92

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18 50’s 1 5 5 5 1 1 5 1 5 1 30 60
19 40’s 5 3 5 1 1 1 5 5 5 1 32 64
20 40’s 5 5 5 1 5 1 5 1 5 5 38 76
21 40’s 5 3 5 1 5 5 5 5 5 5 44 88
22 40’s 5 5 5 5 5 5 5 1 5 5 46 92
23 40’s 5 3 5 5 5 5 5 5 5 5 48 96
24 30’s 5 5 5 5 5 5 5 5 5 5 50 100
25 40’s 5 3 5 5 5 5 5 5 5 5 48 96
26 40’s 5 3 3 5 5 5 5 5 5 5 46 92
27 30’s 5 1 5 1 1 1 5 5 1 1 26 52
28 30’s 5 3 3 1 5 1 1 1 5 1 26 52
29 50’s 5 5 5 5 1 1 5 1 5 5 38 76
30 30’s 5 5 3 1 5 5 5 5 5 1 40 80
31 30’s 5 3 5 1 5 5 5 5 5 5 44 88
32 30’s 5 3 5 5 5 5 5 5 5 5 48 96
33 40’s 1 3 5 5 5 1 5 5 5 1 36 72
34 40’s 5 5 5 5 5 5 5 5 5 5 50 100
35 30’s 1 3 3 5 1 1 1 1 5 1 22 44
36 30’s 5 5 5 5 5 5 5 1 5 5 46 92
37 30’s 5 3 5 1 5 1 5 1 5 5 36 72
38 40’s 1 3 3 1 5 1 1 1 5 1 22 44
39 40’s 5 5 3 5 1 1 1 1 1 1 24 48
40 50’s 1 3 3 1 1 1 1 1 5 1 18 36
TABLE – II
TABULATED QUESTIONNAIRE TO THE MANAGER LEVEL
NUMBER SCORES TOTAL EFFECTIVENESS OF
SCORES P.A SYSTEM (%)
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10
1 1 1 1 1 1 1 1 1 1 2 11 22
2 5 3 5 5 5 5 5 5 5 2 45 90
3 5 3 1 1 5 5 1 5 5 5 36 72
4 5 5 5 5 5 5 5 5 5 1 46 92
5 5 5 1 1 1 1 1 1 5 2 27 54
6 1 3 5 5 5 5 5 5 1 3 34 68
7 1 1 5 5 1 5 5 5 5 5 38 76
8 5 3 5 5 1 5 5 5 5 5 44 88
9 5 1 5 5 5 5 1 1 5 2 35 70
10 5 5 5 5 5 5 5 5 5 1 46 92
11 5 3 1 5 1 5 5 5 5 5 40 80
12 1 5 1 1 1 5 1 1 5 1 22 44

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TABLE – III
TABULATED QUESTIONNAIRE TO THE EMPLOYEES – GROUP WISE
SL.NO. GROUP EMPLOYEE TOTAL % OF
NUMBER SCORE SATISFACTION
35 22 44
1 BELOW 50% 38 22 44
SATISFACTION 39 24 48
40 18 36
1 30 60
6 34 68
7 34 68
8 32 64
9 26 52
2 50 – 70% 10 26 52
18 30 60
19 32 64
27 26 52
28 26 52
2 40 80
5 44 88
3 71 – 90% 14 36 72
16 40 80

AIR INDIA
20 38 76
21 44 88
29 38 76
30 40 80
31 44 88
33 36 72
37 36 72
3 48 96
4 48 96
11 50 100
12 48 96
17 46 92
4 ABOVE 90% 22 46 92
25 48 96
26 46 92
32 48 96
34 50 100
36 46 92
TABLE – IV
SATISFACTION GROUP WISE
GROUPS %OF EMPLOYEES %OF SATISFACTION
BELOW 10% 43%
50%
50 – 70% 27.50% 60%
71 – 90% 30% 79.6%
ABOVE 32.50% 95.69%
90%
TABLE – V
COMBINED TABLE – GROUP WISE
GROUP %OF AVERAGE %OF EMPLOYEES
SATISFACTION
ABOVE 90% 95.69% 32.50%
AVERAGE OF THE 60% 67.50%
REMAINING 3 GROUPS

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AIR INDIA
TABLE – VI
TABULATED QUESTIONNAIRE TO THE EMPLOYEES – AGE WISE
SL.NO. AGE GROUP EMPLOYEES TOTAL SCORE % OF

SATISFACTION
5 44 88
7 34 68
8 32 64
10 26 52
13 34 68
15 42 84
24 50 100
1 30’s 27 26 52
28 26 52
30 40 80
31 44 88
32 48 96
35 22 44
36 46 92
37 36 72
1 30 60
2 40’s 2 40 80
3 48 96
4 48 96
9 26 52
11 50 100
12 48 96
17 46 92
19 32 64
20 38 76
21 44 88
22 46 92
23 48 96
25 48 96
26 46 92
33 36 72
34 50 100
38 22 44
39 24 48
6 34 68
14 36 72
3 50’s 16 40 80
18 30 60
29 38 76

AIR INDIA
40 18 36
TABLE – VII
CONBINED TABLE – AGE WISE
AGE GROUPS % OF EMPLOYEES % OF AVERAGE SATISFACTION
30’S 35% 73.4%
40’S 47.50% 81%
50’S 15% 65.30%
TABLE - VIII
TABULATED QUESTIONNAIRE TO THE EMPLOYEES – SALARY WISE
SL.NO. SALARY GROUP EMPLOYEE TOTAL % OF
NO. SCORE SATISFACTION
1 30 60
2 40 80
4 48 96
5 44 88
6 34 68
8 32 64
10 26 52
11 50 100
13 34 68
1 8,000 – 15,000 14 36 72
17 46 92
19 32 64
20 38 76
21 44 88
24 50 100
27 26 52
28 26 52
29 38 76
30 40 80
31 44 88
32 48 96
33 36 72
35 22 44
36 46 92
37 36 72
3 48 96
7 34 68
9 26 52
12 48 96

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15 42 84
16 40 80
2 15,000 – 20,000 18 30 60
22 46 92
23 48 96
25 48 96
26 46 92
34 50 100
38 22 44
39 24 48
40 18 36
TABLE – IX
COMBINED TABLE – SALARY WISE
SALARY GROUPS % OF EMPLOYEES % OF AVERAGE
SATISFACTION
Rs.8,000 – Rs.15,000 62.50% 73.68%
Rs.15,000 – Rs.20,000 35% 76.53%
TABLE – X
EFFECTIVENESS OF PERFORMANCE APPRAISAL
GROUPS PERCENTAGE OUT OF
% OF DISSATISFIED 70.66% 100%
EMPLOYEES WITH
PERFORMANCE
APPRAISAL
%OF EFFECTIVENESS OF 37.50% 100%
PERFORMANCEE
APPRAISAL

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CHARTS
CHART I
% OF AVERAGE SATISFACTION – GROUP WISE

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CHART II
COMBINED GRAPH – GROUP WISE
CHART – III
COMBINED GRAPH – AGE WISE

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CHART - IV
COMBINED GRAPH – SALARY WISE
CHART – V
% OF EFFECTIVENESS OF PERFORMANCE APPRAISAL EMPLOYEE SATISFACTION

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CONCLUSION
Conclusion are listed as follows
1. Majority of the employees are dissatisfied with their job in HRD department, Air India.
2. The PAS is not effectively implemented.
3. PAS is an important factor in employee satisfaction as it has implications on the

employee satisfaction.

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APPENDIX – I
QUESTIONNAIRE TO EMPLOYEES
* Please take note that the information collected from this questionnaire would be kept
confidential to the point of any personal details and will be used to make only generalized
opinions and find outs. So, please give your true and unbiased opinions by tick marking ( √ ) the
appropriate
 DESIGNATION:
 AGE:
 INCOME GROUP:
Less than Rs. 8000 Rs. 8000 – Rs. 15,000 Rs. 15,000 – 20,000
1. How long have you been working for the organization?
Less than a year □ 1-3 years □

3-5 years □ above 5 years □
2. If you are working for more than a period of 1 year, are you satisfied with your
performance appraisal?
Yes □ No □
3. What do you feel about the career advancement chances, while working for this
organization?
Good □ Average □ Poor □

4. Would you say the working environment (includes co-operation, co-ordination on work
front and personal relationship with colleagues and superior) is

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Good □ Average □ Poor □

5. Do you feel you work outside your specified job areas?
Yes □ No □
6. Do you feel overworked?
Yes □ No □
7. Do you feel the Grievance Redressal is adequate?
Yes □ No □
8. Does the company update your work knowledge as an when required (eg. when they
computerized the office jobs)?
Yes □ No □
9. Was the training conducted during probation and at regular intervals (if provided)
adequate and effective?
Yes □ No □
10. Do the benefits and facilities provided to the employees of AI actually motivate you to
stay on in the organization?
Yes □ No □

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11. Has the Performance Appraisal conducted actually helped you understand and improve
your abilities towards the benefit of the organization and yourself efficiency?
Yes □ No □
12. Given a chance would you choose to work for another organization?
Yes □ No □
13. If the answer to the Q.No. 12 is YES, give reasons, if NO give reasons.
14. What modifications/changes would you like to suggest to improve your satisfaction as an
employee of AI.
APPENDIX – II
QUESTIONNAIRE TO MANAGER LEVEL
Please tick mark (√) the appropriate
 DESIGNATION:
 AGE:
 INCOME GROUP:
Rs. 8, 000- Rs. 15,000 □ Rs.10, 000 - Rs.15, 000 □ Rs. 20, 000 & above
□
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 Number of Years in the Organization:
1. Does the department have clearly defined job descriptions?
Yes □ No □
2. For how long does employee orientation last?
Less than a day □ 2 days □ more than 2 days □

3. At the time of joining, is the employee given a job specification and job description?
Yes □ No □
4. Is there any effort taken to update the employee’s skills and knowledge of their job?
Yes □ No □
5. Does the department specify its overall objectives and goals every year?
Yes □ No □
6. After the performance appraisal is done, is there a discussion with the employee?

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Yes □ No □
7. Is a follow up done by the Management after performance appraisal is done to know

whether the employee is doing better?
Yes □ No □
8. Are steps taken to ensure that a better performance is given by the employee eg., A
telling of/ punishment etc.
Yes □ No □
9. Does the company have any reward/incentive scheme for better/good performance?
Yes □ No □
10. What is the percentage of job turnover per year in HRD?
0.1 □ 2-5 □
5-10 □ above 10 □
11. Do you feel the present performance appraisals are effective & beneficial towards
improving productivity of company and efficiency of employees? Give reasons.

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12. Suggest modifications in the performance Appraisal technique and its implementation,
(in wake of raising employee satisfaction, productivity of the organization in HRD
department)
APPENDIX -III
THE CLUBBED FORM FOR UNSKILLED AND SKILLED
CATEGORY
SECTION – I
Name:
Designation:
Department:
Staff No. :
Date of Birth:
Date of Joining:
SECTION – II
Factors Outstanding Above Average Below Poor
Average Average
1.Quantity of
Work
2.Quality of
Work
3.Regularity

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4.Sincerity
and Honesty
Additional Comments:
SECTION :III
Remarks of the Countersigning Officer:

Signature of the Countersigning Officer
Adverse entries communicated

YES NO Name and Designation
REFERENCE
• www.airindia.com
• www.google.com
• www.wikipedia.com
• www.airlines-in-india.com
• www.airindiaexpress.in
• www.busreslab.com
• www.confirmit.com

AIR INDIA

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EVALUATION OF ES & PAS

Air-India International inaugurated its international services on June 8, 1948, with a

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• To provide safe, efficient, adequate, economical and properly co-ordinate international

ASM’S, IMCOST, THANE Page 3

• Minister of Civil Aviation

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• MR. V. THULASIDAS-Chairman & Managing Director

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Deputy General Manager

Assistant General Manager

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HUMAN RESOURCES DEVELOPMENT

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• INDUSTRIAL RELATION DIVISION

MANPOWER PLANNING DIVISION

The Establishment Division handles a plethora of activities, which includes Grievance

1. Creation of personal files / record cards.

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Dy. General Manager

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WELFARE & PASSAGE DIVISION

INDUSTRIAL RELATION DIVISION

 Wages and Unions

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EMPLOYEE SATISFACTION AND

• Care about the quality of work.

• Are more committed and loyal to the organization.

• Are more productive.

Performance appraisal is a tool to rate the employees on their performance. Where

As employee satisfaction and performance seem to be directly related, performance

ASM’S, IMCOST, THANE Page 15

SCOPE OF THE STUDY

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The main objectives of this project are as follows:

 To understand the current performance appraisal system of Air India

 To evaluate the effectiveness of performance appraisal system in Air India

 To determine the performance appraisal as an important factor in employee satisfaction

ASM’S, IMCOST, THANE Page 17

The main limitations of the project are

ASM’S, IMCOST, THANE Page 18

a) Sample Area : HRD Department of Air India, Old Airport

b) Sampling Technique : Convenience Sampling

c) Total Population : a) 100 office staff

b) 15 manager level executives

b) 12 of the manager level executives

METHOD OF DATA COLLECTION

• Briefs provided to us by the various sections within the HRD departments

ASM’S, IMCOST, THANE Page 19

METHOD OF STATISTICAL ANALYSIS

1) 10 of the tentative questions were selected

2) The options were rated

• Wherein there were 3 options it was rated 5,3,1

• Wherein there were 4 options it was rated 5,3,2,1 accordingly