Management Control Systems at Air India

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MANAGEMENT CONTROL SYSTEMS AT

Table of Contents
1.Introduction3
1.1 Domestic Operations3
1.2 Services3
2.Organization Structure4
2.1 Current Structure4
2.2 Outgrowing the traditional model4
3.Management Style And Culture7
3.1 Attitude towards employees7
3.2 Decision-making process7
3.3 Focus of Air India7
3.4 Credibility & Caring-Key to Air India’s Culture8
3.5 Role of Supervisors8
3.6 Role of Relational Competence9
3.7 Official Language Implementation9
4.Control Process of Air India10
4.1 Steps taken for effective control process/system in the organization10
4.2 Norms set for the discharge of functions13
4.3 Scrutiny of policies and activities13
4.4 The budget allocated to each agency13
4.5 Reward13
4.6 Wage disparity15
4.7 Over Time15
5.Communication and Coordination16
5.1 Internal communication system16
5.2 External communication system17
6.Conclusion & Recommendations18

1. Introduction

Air India, a national carrier is characterized with an urge to excel and enthusiasm started its operations on October 15, 1932. The merger of Air India and Indian, the country’s leader in the domestic sector, has helped the airline in emerging as a major force in the airline industry. 1.1 Domestic Operations

On the domestic front, Air India operates to 47 stations, and 17 are connected to international destinations. The 172-seater Airbus A321 aircraft connects all major metros. The Regional operations provide coverage to all the metros and many smaller cities across the nation. 1.2 Services

Apart from the basic services that an airline provides, Air India also offers – Frequent Flyer Programme- "Flying Returns”. Members of the Flying Returns Programme (FRP), can accrue mileage points while flying on Air India, Lufthansa and flights of Air India’s code share partners, and redeem them for award tickets or avail other facilities available with the service provider on Air India or Lufthansa.

Star Alliance - Air India has joined Star Alliance in mid 2010. Star Alliance, is a leading global airline alliance of 21 top international carriers. Air India passes the benefits to its passengers by becoming a member like seamless transfers while travelling across the world, more frequent flyer mileage points, code-sharing leading to a wider choice of flights and access to lounge facilities worldwide. The Star Alliance network offers more than 17,000 daily flights to 916 destinations in 160 countries.   Air India Express - Air India’s international budget airline, Air India Express, was launched in April 2005. Air India Express operates 200 weekly flights on its network between 17 Indian and 14 international stations.

2. Organization Structure
2.1 Current Structure

Source: www.egyankosh.ac.in/bitstream/123456789/35931/1/Unit-29.pdf 2.2 Outgrowing the traditional model

For airlines, the functional organizational model has worked well for decades. It helps by promoting deep technical expertise and economies of scale by grouping specialists together and focusing accountability for the direction and efficiency of all divisions on one person: the chief executive. . Peripheral businesses and small customer segments got less attention from management, however, the mainstream passenger business received most of the attention. This functional model has been the best choice for some aviation groups, mainly those that outsource most of the support functions (such as catering and maintenance), lack the sophisticated information systems needed to manage more complex structures, or serve only a few homogeneous customer segments Yet many other carriers, like railroad and oil companies before them, have surpassed the traditional model. The rise of low-cost carriers is changing the nature of competition in the industry by letting some traditional airlines to expand into businesses that offer higher margins or require less capital than their core...
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