1. AIR INDIA
An Analysis of Management Control System in AIR India
 SONIA PURI
 NEHA JAIN
 MOUSAMI DAS
 SAURABH TRIVEDI
 ISHAN BATRA
 VIBHOR SINGHAL
 NEHA PODDAR
www.airindia.in

2. TABLE OF CONTENTS
SI NO. TITLE OF THE SLIDES
1 Introduction
2 Organization Structure
3 Control Processes in AIR India
4 Management Style and Culture
5 Communication & Co-ordination
6 Investor Relations
7 Budget and Audit
8 HR Policies
9 Recommendations and Conclusion

3. Introduction to Aviation Industry
• The global aviation industry to grow at a
5.6% CAGR over the next 15 years.
• Liberalization and deregulation increased
Competition.
• Industry growth at 25% YoY basis.
• Compounding Problems

4. Introduction to AIR India
• HISTORY
• FLEET
• NETWORK
• SERVICES – STAR
ALLIANCE, AIR INDIA EXPRESS
• ACCOLADES

5. ORGANISATION STRUCTURE

6. Committees In AIR India
• FINANCE COMMITTEE
• HR COMMITTEE
• STRATEGIC COMMITTEE
• AUDIT COMMITTEE

7. Control Process in Air India
• SAP ERP
• Vigilance Department
• SITA, to provide new Passenger Services System
• Integrated Operations Control Centre (IOCC)
• Norms set for the discharge of functions
• Scrutiny of policies and activities
• The budget allocated to each agency

8. Management Style & Culture
VISION AND MISSION-
• The Main object :to carry on business, in any part of the world as an
airline and air transport and to provide air transport services and carry
out all other forms of aerial work, whether on charter terms or
otherwise, and to carry on any other trade or business or do anything
which is calculated to facilitate or is auxiliary to or associated with such
business
Focus –
• Relationships
• Shared goals
• Shared knowledge
• mutual respect.
Decision making process-
• Power is delegated
• Discussions among cross section of departments
• Worker/management committees.
8

9. Cont.…
Attitude towards employees-
• Employees are treated as valuable assets
• Stable work environment
• Encourage innovation and creativity.
Credibility & caring-
• Ability to inspire trust
• The ability to inspire in employees the belief that their leaders care deeply about their well-being.
Relational competence-
• The ability to relate effectively with others
• Enhances team work
SAFETY CULTURE-
• “Safety Culture is the set of enduring values and attitudes regarding safety issues, shared by
every member of every level of an organization.
9

10. Communication &
Coordination

11. Internal Communication
• SITA
• TELEPHONE SYSTEM
• RADIO
COMMUNICATION
SYSTEM

12. External Communication
• 24 hour dedicated call centre
• Rescheduling messages to
customer’s mobile phone.
• Audit agency for continuous
image audit, media
relations, communication
counsel, advising on regular
basis for effective channel of
communication

13. Investor Relations
• Media Centre
• Web Site
• Right to Information
• Manuals
• Annual Statements

14. AUDIT COMMITTEE
Functions of Audit committee
• Management responses.
• Half yearly and yearly basis
• Recommendations are taken from more than 1 audit firms
• To review the company statement
• To review the internal audit program & ensure co-ordination between
the internal & external auditors.
BENCHMARKING
Air India did not reveal any bench marking details in their annual
report. But it uses industry standards which are followed by every other
airline like Flight on time ,Security Measures, Annual Maintenance Plans
and Maharaja Club

15. BUDGET
The twin budget is prepared in air India which is both annual and five
year plan
Forecast Highlights
• Traffic
• Yeilds
• Load Factor
• Fuel
Variance analysis

16. HR POLICIES
Recruitment
Appraisal
Compensation
Reward
16

17. ADVANTAGES & DISADVANTAGES
• Represents brand India
• Job security to employeesomer service
• No proper mechanism to manage salaries of
employees
• Sales to compensation ratio is decreasing since 2008
• Most employees are 50+ with less energy levels and
motivation for quality

18. RECOMMENDATIONS
• Adopt strict cost control measures
• Revise wage and implement multi-skill environment
• Limit government control and policies for AI
• Increase fleet size and invest in aircraft maintenance
• Refresh and rebrand the company
• Timely payment of salaries to employees

19. THANK YOU