Facing the Lay-Offs: an Approach to the Jet Airways India Case

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MIDDLESEX UNIVERSITY BUSINESS SCHOOL

HRM4402: INTERNATIONAL HUMAN RESOURCE MANAGEMENT

MODULE LEADER: RANI THANACOODY

FACING THE LAY-OFFS: AN APPROACH TO THE JET AIRWAYS INDIA CASE

STUDENT NAME: LUIS TOBO

MODULE: HRM 4402

WORD COUNT: 2730

DUE DATE: 29 MAYO 2012

Table of Contents
INTRODUCTION
KEY WORDS 1
COMPANY BACKGROUND1
CASE STUDY DESCRIPTION2

MAIN BODY
INTERVENTIONS3
MOTIVATING EMPLOYEES AND RETAINING TALENT3
RIGTH COMUNICATION AND CORPORATIVE IMAGE4
HIRING EFFECTIVELY6
CONCLUTION7
REFERENCES 9

FACING THE LAY-OFFS: AN APPROACH TO THE JET AIRWAYS INDIA CASE.

INTRODUCTION

KEY WORDS:
Downsizing: reduction of personal within a company or corporation for economic condition or change or transition. Recruitment and Hiring: the process of selecting employees taking into account the company’s necessity. Compensation: the salary and benefits that employees get for their effort and job. Motivation: the practices that leaders and manager apply in order to encourage the employees and improve their performance within a company. Communication and Retain talent: the way the company informs the employees any situation or issues, in order to keep the stability the company and retain the employees whom are high qualify.

BACKGROUND
Jet Airways is successful airline situated in India, which started its commercial operations on 5 May 1993 starting with local operations and after a quick growth decided to go abroad and open new international destine from Chennai to Colombo in March 2004. The company was created by Neresh Goyal who was athe owner of a private jet corporation and set up jet airways airline as a scheduled airline by the Indian law, in order to compete with the monopoly of the airlines in its country Indian Airlines by giving attractive oferts and low price marketing strategy. Its head office is located in Mombay where they command all the operations around the world. In 2006 the company bougth Air Sahara becoming the largest airline in India and starting an integrated operation among both companies and finally in 2009 launched a new budged air line company call Jet Konnect in order to gain market participation and compete with low cost airlines companies. By June 2008, it had operations in more than 68 destinations, both, in India and abroad, which shows clearly that the company has gain credibility and market recognition. The company’s objective and vision is based on the statement that they will become the most preferred local airline and the first choice for traveling by offering high quality service and efficient operations as well as consistent profitability and a good working environment for employees, which will allow them to growth and develop their skills.

CASE STUDY DESCRIPTION
However, on October 16, 2008, the company announced that they´d lay off approximately 1.100 of its employees. The worst part of its announcement was the fact that a day before, the company had lay off 800 of its cabin crew members. Besides, it is well known that the decisions were taken without giving any information to the employees; we can say it was a surprise for them, however, due to the international economic crises and the large losses of the past year, we can assure, it was meant to be. Although the company reinstated the lay-off employees, it was clear changes were about to happen, the main one: the salary reduction to the taken-back employees. Even though Jet Airways tried to face the HR problem by taking back its old employees, it was clear that it wouldn’t finished with the global slowdown and price hike of aviation fuel that challenged the Indian aviation industry, which was the main cause of the retrenchment. Besides, it wouldn´t help the problems the company was facing, but it could increase them, as Sadry (1996) argued, when a downsizing process is being carried out the employees uncertainty cold create stress and low...
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