MANAGEMENT ARTICLES /PRAMODKUMAR M KUPPI

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Asian Journal of Management Cases

DOI: 10.1177/097282010800600103

Asian Journal of Management Cases

2009; 6; 5

Arif N. Butt, Shezeen Hemani and Yasar Rashid

Human Resource Management at Oceatic Airways

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SIAN JOURNAL OF MANAGEMENT CASES, 6(1), 2009: 5–26
S
AGE PUBLICATIONS LOS ANGELES/LONDON/NEW DELHI/SINGAPORE/WASHINGTON DC
DOI:
10.1177/097282010800600103

This case was written by Shezeen Hemani and Yasar Rashid under the supervision of Associate

Professor Arif N. Butt to serve as the basis for class discussion rather than to illustrate either effective

or ineffective handling of an administrative situation. All facts and fi gures in the case have been

disguised. This material may not be quoted, photocopied or reproduced in any form without the

prior written consent of the Lahore University of Management Sciences.

Cases

UMAN RESOURCE MANAGEMENT AT OCEATIC AIRWAYS
Arif N. Butt

Shezeen Hemani

Yasar Rashid

This case study describes the journey of Oceatic Airways from a monopolistic

environment, showing remarkable profi tability, to a point where local and international

competition stiffens and operational ineffi ciencies lead to a signifi cant plunge in

company profi ts. The main concerns for the newly appointed chairman are to revive

the company in order to recover the huge losses, and to prepare the organization to

meet the challenges of globalization and stiffer competition. The top management of

Oceatic Airways now has to focus on overhauling the company’s Human Resource System

in order to build sustainable capacity, improve productivity and service quality,

and integrate different HR areas, including recruitment, job description, training,

performance appraisal and promotion to achieve organizational goals. The issue

requires urgent attention since time is of utmost importance, wherein the overall company

performance is deteriorating and the fuel costs are expected to rise, making the

situation even worse.

Keywords:
Human resource management, change management, airline industry,

developing countries.

Oceatic Airways shows $4 billion loss: Durrani steps in to take over.

4 June: Mr Shah Durrani has been appointed the new chairman of Oceatic Airways.

The Board of Directors took the decision to appoint Mr Durrani as the chairman

after the airline’s fi nancials took a $4 billion plunge within the fi rst three quarters

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RIF N. BUTT, SHEZEEN HEMANI AND YASAR RASHID

SIAN JOURNAL OF MANAGEMENT CASES, 6(1), 2009: 5–26

of the fi nancial year 2005. Oceatic’s performance has remained inconsistent over

the past few years, with consistent losses from 1999 to 2001, showing profi ts for the

next few years only to plunge into losses in the beginning of 2005.

In the wake of stiffening domestic and global competition and an expected increase

in fuel prices, Oceatic Airways’ revival from its persistent fi nancial crunch seems

dubious. Lately, the Government has issued licenses to three local airline operators

who would be operating domestically before launching their international operations.

Further, with an increase in the demand for air travel across the globe, competition

amongst international airlines is intensifying, giving more and better choices

to air travellers. With these challenges at hand, not only does Mr Durrani have to pull

the company out of its losses but he also needs to maintain the airline’s reputation

as the national fl ag carrier. (

The Headline News, 5 June 2006)

As Shah Durrani sat in his offi ce on 5 June 2006, elated with messages of congratulations

on his appointment as the Chairman of Oceatic Airways, his mind could not stop thinking

about the challenging task of reviving an ailing airline. Before his appointment, he was

well informed of the company’s situation in terms of its substandard performance and

inconsistent profi tability. He was also aware that in the wake of stiffening domestic and

global competition, Oceatic’s survival, let alone recovery from huge losses, could be at

stake.

During the last meeting between the Board of Directors and Durrani, the top management

team had discussed Oceatic Airways’ major problems and their causes. The team was of the

opinion that Oceatic’s Human Resource System required immediate overhauling. It was

agreed that by revitalizing the Oceatic Airways’ Human Resource System, the company

would be able to solve its long-existing problems, build sustainable capacity and prepare

the organization to meet the challenges of globalization and stiffer competition.

Along with these discussions, Durrani was also handed a research report containing

a thorough analysis of Oceatic’s Human Resource (HR) department. Durrani knew that

the results of this research were extremely important for identifying and assessing the

HR problems being faced by the organization. He personally felt that specifi c changes

in the human resource practices of Oceatic Airways had to be proposed along with an

implementation plan in order to upgrade the company’s performance and standards.

N OVERVIEW OF THE AIRLINE INDUSTRY

The airline industry in this Asian country is monopolistic in nature. Since the country’s

independence more than 50 years ago, until the beginning of the 1990s, Oceatic Airways

was the only national airline that served both domestic and international routes.

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UMAN RESOURCE MANAGEMENT AT OCEATIC AIRWAYS 7

SIAN JOURNAL OF MANAGEMENT CASES, 6(1), 2009: 5–26

With nearly fi ve decades of enjoying monopolistic power, Oceatic Airways had successfully

established a strong brand recognition that was so deeply engraved in the minds of the

citizens that even the airport authorities and other logistics were considered to be part

of Oceatic Airways. Moreover, with a more than suffi cient resource base, including fi -

nancial, human and infrastructural capabilities, Oceatic Airways was able to satisfy its

business requirements and hence indirectly control private airlines from venturing into

the industry.

In 1991, however, two private airlines; Skyways Air International (SAI) and Asiatec Airlines

(AA) entered the industry. SAI was a project of the Skyways Foundation, which

initially operated only on domestic routes but, later in 1995, also started international

operations. In 1993, SAI was designated as the second national carrier of the country. AA

was launched in 1993 and it started operations the same year. It was initially owned by a

private group of companies but was later acquired by the US-based Regal Group.

The addition of private airlines offered a cheaper substitute for the price-sensitive air

travellers. It also encouraged non-air travellers (those who travelled by road via bus/

train/car) to consider air travel which became more affordable and convenient. These

airlines also fulfi lled the demand of a growing market which was not being met by only

one airline. With the successful launch and execution of these airlines, the government

started giving more incentives to attract greater investments. As a result, another private

airline, Global Airways, was launched.

Global Airways was established in 2001 and started operations in 2003 with four

A320–200 aircraft serving domestic routes between major business cities. Within the fi rst

year of its operations, Global Airways had become very popular, thus enabling it to compete

directly with Oceatic Airways and other private carriers. The airline expanded its

routes to include more cities within the country and also launched its international services.

With an increase in local competition, brought about by existing and upcoming

airlines as well as stiffening of international competition from foreign competitors in the

post-World Trade Organization (WTO) era, Oceatic Airways faced severe competition.

CEATIC AIRWAYS

Company Background

Oceatic Airways was originally established as International Airways Ltd in 1948 by

M. Sayid, a leading industrialist of that time. In 1950, International Airways merged with

a state-owned airline and was renamed Oceatic Airways. The airline initially operated

domestically and later, in 1957, inaugurated its fi rst scheduled international service to

London via Cairo and Rome.

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8 A

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In December 1959, Oceatic Airways launched its fi rst jet service (Boeing 707) on the

London–Hyderabad–Dacca route that later proved very successful. In 1961, the airline

took on the challenging task of initiating a cross-Atlantic service from Bahrain to New

York. By this time, Oceatic Airways had placed orders for more new aircraft, including

Fokker F–27s, Boeing 720Bs and Sikorsky helicopters.

Today, Oceatic Airways has evolved from the small airline that it was in 1955 to one

of the major airlines of the developing world with a fl eet size of over 50 aircraft and an

employee strength of more than 18,000. At present, Oceatic Airways travels to over 100

destinations (including international and domestic), spread over four continents. The

organization is in the process of modernizing its fl eet and restructuring its operations to

live up to its vision, mission and core values (Exhibit 1). Oceatic Airways continues to be

one of the largest public sector companies in the country, with offi ces in all major international

cities around the world.

Company Performance

Oceatic Airways was one of the biggest corporations in Asia in 1997. It was the fi rst airline

in the region to operate scheduled helicopter services. Moreover, Oceatic Airways was

amongst the fi rst Asian airlines to induct the new technologically superior Boeing 737–300

aircraft and show in-fl ight movies on international routes.

Oceatic Airways was ranked a 3-star airline according to Skytrax (Star Rating system

for the world airline industry) (Exhibit 2). A 3-star airline was defi ned as an airline showing

a fair quality performance that conformed to an industry ‘average’ when assessing

all areas of competitive ranking. It also specifi ed a satisfactory standard of core products

across most travel categories, but refl ected less consistent standards of staff service and

product delivery, either onboard or within the airport environment. One area where

Oceatic Airways showed better results was the seat utilization factor. Oceatic Airways

was comparable to the most highly rated airlines, like Emirates and Cathay Pacifi c, with

regard to seat utilization.

There was considerable demand for Oceatic Airways, but turning that demand into

profi tability and a quality image for the organization was a major concern for Durrani

(refer to Exhibits 3, 4a and 4b for key performance indicators). Over the past fi ve decades,

Oceatic Airways’ performance had been affected by certain uncontrollable factors. Political

interference within the company during the 1990s was the beginning of its economic and

operational ineffi ciencies. A large number of employees were recruited on a non-merit

basis, which was a crucial element in effecting the effi ciency levels in a highly serviceoriented

industry (refer to Exhibit 5). The organization was unable to benefi t from the

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UMAN RESOURCE MANAGEMENT AT OCEATIC AIRWAYS 9

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large pool of employees who were demotivated and lacked training, leading to increased

ineffi ciencies in company operations.

UMAN RESOURCE SYSTEM AT OCEATIC AIRWAYS

The key functions of the Human Resource System at Oceatic Airways were thoroughly

investigated by a group of experts. At the end of their investigation, the experts presented

a report that contained key characteristics and procedural details of human resource

functions. The information below is based upon the fi ndings of the report.

Recruitment

The selection and recruitment process at Oceatic Airways was initiated with the determination

of vacancies by respective departmental heads. Upon receiving requests from

different departments, the Employment Section advertised the positions, qualifi cations

and experience required from prospective candidates in the national dailies. The

Employment Section, assisted by the concerned department, then screened the job applications.

Subsequently, tests and interviews for the short-listed candidates were scheduled.

The Selection Board then conducted interviews of the short-listed candidates. Each

member of the Board individually completed the candidate’s assessment report after the

interview. The Selection Board comprised the Board President and General Managers

from Marketing, Finance, Airport Services, Corporate Planning and Human Resource departments

and a representative from the concerned department. The fi nal assessment of

the candidate was completed after averaging the scores from each person in the Board.

All appointments were made by a ‘competent authority’

2 on the recommendations of the

Selection Board.

Oceatic Airways preferred hiring candidates in batches. After their selection, they were

employed as Trainee Offi cers. Foreign-qualifi ed candidates were inducted directly in Pay

Group 6. The newly hired candidates were initially placed in a training programme for

about 20 weeks, after which they were transferred to relevant functional departments. A

separate Board comprising the Director Administration, GM Human Resources and Principal

Oceatic Training Centre (OTC) determined the suitability of the Trainee Offi cers

through interviews for their placement in functional departments.

We acknowledge the authors of this report.

A ‘competent authority’ refers to individual/s assigned by the top management according to their qualifi

cations and experience to perform a given task.

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On humanitarian grounds, dependents of deceased/retired/serving employees of

Oceatic Airways were given a relaxation of the minimum grade required for a position,

along with fi ve bonus points in their assessment.

Selection and recruitment decisions at Oceatic Airways were signifi cantly infl uenced

by political interference. Employees were extremely concerned about this practice in the

organization. According to one employee:

The issue of political infl uence is an inherent problem in most public sector organizations

in our part of the world. Organization needs to be privatized or a tough stance

needs to be taken by the higher offi cials of the company. Only then can such practices

be eliminated. (refer to Exhibit 6)

Moreover, the employees also considered the induction process as ineffi cient in meeting

the requirements of the different departments. The employees felt there was a lack of

coordination between the HR department and the functional departments during the

induction process. A few department heads commented:

Oceatic Airways had a philosophy of selecting candidates in batches, training them

in the Oceatic Training Centre and across different departments for about 18 weeks

and then placing them in various departments. In the absence of a proper system to

forecast HR needs, the number of people hired was always different from the actual

required.

Training

According to Oceatic Airways training policy, the departmental head could ask any

employee in his department to participate in a training programme at any time. Once

this was decided, the department head made the budget estimates required for the

training. The training could be provided within the country or outside and the expenses

were borne by the organization. The duration of the training programme was decided

and approved by a competent authority. The competent authority comprised area

heads at foreign stations within their respective territories—directors, deputy managing

directors and managing directors. Apart from the training of existing employees, Oceatic

Airways had a planned training module for fresh inductees who were trained for about 20

weeks prior to being placed in a particular department.

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UMAN RESOURCE MANAGEMENT AT OCEATIC AIRWAYS 11

SIAN JOURNAL OF MANAGEMENT CASES, 6(1), 2009: 5–26

According to the company policy, any employee who completed the training programme

was required to sign a surety bond to serve Oceatic Airways after the training and if he/

she left the organization before the expiry of the bond, the remaining amount had to be

paid by the employee. This bond was not applicable to training related to administration/

refresher/professional courses for specifi c trades within the country, arranged by the

Oceatic Airways Training Centre. Employees were permitted to acquire training at their

own expense, but it would not have any impact on his or her promotion.

The reporting structure at Oceatic Airways was such that each subordinate was reporting

to multiple bosses. All bosses had to unanimously agree for an employee to be

selected for training. According to an employee, ‘Usually, only one of the bosses selected

a subordinate. Under normal circumstances, it was rare for all the bosses to unanimously

agree.’

Apart from this, employees also felt that a training-need analysis should be conducted

because, currently, the training had no relevance to their jobs (refer to Exhibit 6 for further

insight into problems related to training).

Performance Appraisal

The performance appraisal system, introduced on 18 October 2005, was based on normal

distribution represented by a bell curve. Under this system, appraisals were conducted

annually, wherein employees were evaluated by their immediate supervisor (reporting

offi cer) and by the next supervisor (fi nalizing offi cer). Appraisals began at the beginning of

each year when each employee determined his or her own objectives for the coming year

using the Employee Action Review Form EAF-1. Subsequently, the employees’ performance

was evaluated at the end of the year through Form EAF-2 (refer to Exhibit 7 for

EAF forms).

EAF-2 comprised six parts—Part A to Part F. Part A included information about the employee’s

previous year’s experiences and his motivation level. It was fi lled by the employee

himself. Part B was fi lled by the reporting offi cer who evaluated the employee on a scale of

1 to 5 against 17 stated objectives, broadly classifi ed into work methodology, effectiveness,

personal qualities and work knowledge. In Part C, the reporting offi cer commented on

the signifi cant fi ndings and improvement needs of the employee, based on the mean

score of EAF-1 and EAF-2. Part D was completed by the next superior reporting offi cer to

endorse or give a different opinion. Parts E and F were fi lled by the reporting offi cer to

give the fi nal rating, on a scale of 1 to 5, to the employee and endorse the fi nal training

and development needs of the respective employees. After the evaluation was completed

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by both the offi cers, a face-to-face meeting between the appraiser and the appraisee was

conducted to discuss the performance of the appraisee.

General employee opinions revealed that a majority of the employees in the organization

lacked the aptitude to cope with modern management practices including the newly

adopted appraisal system. As explained by one of the newly recruited employees:

Most people working at Oceatic Airways have no understanding of the appraisal system

based on the bell-curve system. Despite the training given to them, they are unable

to implement it effi ciently. As a result, most employees consider the new system as

a burden instead of an effective tool for improvement.

Another employee commented:

Since, we as employees report to more than one boss, a majority of us are unaware

as to which one of our bosses would evaluate us at the end of the year. This creates

confusion and lack of clarity. The multiple reporting lines also create unnecessary

bottlenecks in the administration system, which leads to delays in decision making.

(refer to Exhibit 6)

Promotion

According to Oceatic’s philosophy, all promotions should be based on ability as demonstrated

by performance and not on seniority. The eligible candidate should be a graduate (no

specialization required), have fi ve years experience in each cadre with an above average

record for three of the last fi ve years, as determined by the performance appraisal. The

promotion for a particular employee depended upon the nature of the contract with

the respective employee and the job position, which meant that the promotion process

for a pilot would be different from that for a fl ight engineer.

Furthermore, employees were to be promoted according to the vacancies available,

whereas standbys would be considered in the following year along with fresh candidates.

No priority would be given to the standby employees next year and they would be evaluated

equally with other candidates. In case of employees posted abroad, promotion to senior

positions in their respective grades was assured on return. However, a six month probation

period was mandatory after each promotion.

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UMAN RESOURCE MANAGEMENT AT OCEATIC AIRWAYS 13

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Since Oceatic Airways was a publicly owned company, many of its HR practices were

a refl ection of its distinctive organizational structure and culture (refer to Exhibit 8).

The airline had a tall organizational structure and operated on the system of corporate

governance, which in a lot of aspects was not based on modern management practices.

With more than half of the employees working as middle-level management, the organizational

structure was more of a balloon-type structure rather than a pyramid one.

This was one of the major drawbacks of the current system as pointed out by one of

the middle-level managers, ‘Such a structure limited the chances of promotion for most

middle-level employees, since so many of them were competing for only a limited number

of available top-level positions.’

Favouritism was a dominant aspect of the organizational culture at Oceatic Airways.

While unanimously agreeing with such an opinion, most employees reaffi rmed that:

At Oceatic Airways, decisions related to promotion, training or even recruitment were

left up to the discretion of the bosses rather than being determined through merit or

high performance. For instance, while conducting performance evaluations, the bosses

would place their favourites in the upper percentiles of the bell curve and the more

deserving were placed in the lower quartiles (refer to Exhibit 6).

HE DECISION

As Durrani read through the information provided in the experts’ report, he knew that the

fi ndings were extremely crucial for planning and implementing a change in the HR system

at Oceatic Airways. Durrani thought that the best way to proceed would be to involve

the top management and conduct an HR planning exercise to analyze the organization’s

human resource needs and develop strategies to integrate different HR areas (such as

recruitment, job description, training, performance appraisal and promotion) in order to

achieve organizational goals.

The report provided some relief to Durrani. However, he was well aware that time was

of utmost importance because the overall performance of the company was deteriorating

and fuel costs were also expected to rise, making the situation even worse. He wondered

how quickly and effectively an HR plan could be designed and implemented to address

the current situation for improving productivity and service at Oceatic Airways.

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Exhibit 1

Oceatic Airways’ Vision and Mission

Vision Statement
‘Oceatic Airways to be an outstanding profi table airline performing beyond customer expectations through

dedicated employees committed to quality.’
Mission Statement

Employee teams would contribute towards making Oceatic Airways a global airline of choice by:

􀁺

Offering quality customer service and innovative products

􀁺

Participating in global alliances

􀁺

Using state-of-the-art technologies

􀁺

Employing cost effective measures in procurement and operations

􀁺

Achieving adequate returns for all stakeholders

􀁺

Being an equal opportunity employer

􀁺

Providing competitive compensation and a congenial work environment

􀁺

Adhering to business ethics and zero tolerance for corruption

􀁺

Fulfi lling our Corporate Social Responsibility (CSR) in all fi elds.
Core Values

􀁺

Customer Expectations: Convenience, care and competitive staff

􀁺

Service: Personalized and courteous

􀁺

Innovation: Cherishing new ideas and translating them into actions

􀁺

Reliability: Loyalty and consistency

􀁺

Safety: Passengers, employees, environment and health

􀁺

Cohesiveness: Respect for individuals, team work and effective communication

􀁺

Integrity: Business ethics, accountability and transparency.
Source:
Company documents.
Exhibit 2

International Rating

Oceatic Airways

􀂐􀂐􀂐

A Certifi ed 3 Star Airline

Summary Ranking

Combined Quality of Product/Staff service in airport and on board environments

Business Class
􀂐􀂐􀂐 Premium Economy Class
􀂐􀂐􀂐 Economy Class
􀂐􀂐􀂐

(

Exhibit 2 contd.)

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Airport Services

Check-in Services—

Business Class 􀂐􀂐

Check-in Services—

Economy Class 􀂐􀂐􀂐

Transfer Services—

Business Class 􀂐􀂐􀂐

Transfer Services—

Economy Class 􀂐􀂐

Arrival Services

􀂐􀂐

Business Class Lounge—

product facilities 􀂐􀂐

Business Class Lounge—

staff service 􀂐􀂐 Cabin Seat Comfort

Business Class—

long haul 􀂐􀂐􀂐

Business Class—

short haul 􀂐􀂐􀂐

Premium Economy Class—

long haul 􀂐􀂐􀂐

Economy Class—

long haul 􀂐􀂐􀂐

Economy Class—

short haul 􀂐􀂐􀂐 Cabin Staff Service

Business Class—

service effi ciency 􀂐􀂐􀂐

Business Class—

staff attitude & friendliness 􀂐􀂐􀂐

Premium Economy Class—

service effi ciency 􀂐􀂐

Premium Economy Class—

staff attitude & friendliness 􀂐􀂐􀂐

Economy Class—

service effi ciency 􀂐􀂐􀂐

Economy Class—

staff attitude and friendliness 􀂐􀂐􀂐

Responding to passenger requests

􀂐􀂐

Cabin presence through fl ights

􀂐􀂐

Assisting parents with children

􀂐􀂐􀂐

Staff language skills

􀂐􀂐 Source:
Skytrax World, http://www.airlinequality.com/Airlines/PK.htm Airline Star Ranking.

(

Exhibit 2 contd.)

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Exhibit 3

Seat Factor Industry Comparison

Source:
Case writer’s notes.
Exhibit 4a

Passenger Load

Source:
Case writer’s notes.

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UMAN RESOURCE MANAGEMENT AT OCEATIC AIRWAYS 17

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Exhibit 4b

Revenue and Profi tability

Revenue

Profi t/(Loss)

Source:
Case writer’s notes.

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Exhibit 5

Employee Strength for Oceatic Airways
Year Employees

2005 18,647

2004 19,615

2003 19,623

2002 20,432

2001 21,253

2000 22,011

1999 22,202

Source:
Company Documents.
Exhibit 6

Employee Feedback

(a)

Overall Employee Comments:

The employees’ opinion regarding major HR problems and their causes is presented in the following table

along with the percentages of people who believed that a particular problem existed in the organization:

HR Function Problem Cause

Recruitment Political Infl uence on hiring decision (53%). Public sector governance.

Inappropriate allocation of new recruits. Lack of coordination between manpower

and operational departments during

induction.

Lengthy induction process, resulting in a

difference in the number of people hired

and those required in each department.

Eighteen-week training period prior to

placement.

The interviewer’s lack of relevant knowledge. At times the designated interviewer does

not appear in the interview panel.

Training Lack of focused induction-level training (61%). Intervention during the training period

to meet the demand of the concerned

departments.

Lack of need-analysis for training and

mismatch between training and job

requirement (69%).

Absence of clear policies that are

necessary to plan HR needs and facilitate

career development.

Inadequate training infrastructure (55%). Lack of human capital to facilitate

training.

(

Exhibit 6 contd.)

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HR Function Problem Cause

Supervisors’ disapproval to relieve subordinates

for training (56%).

Supervisors try to avoid the extra

pressure of work resulting from the

absence of these subordinates; their lack

of understanding regarding importance

of training in achieving long-term

objectives.

Performance

Appraisal

Lack of merit-based evaluation (69%). Prevalent culture of favouritism and

political infl uence.

Lack of understanding of the bell curve and

unclear appraisal forms (62%).

Managers consider the new system as

an unnecessary burden; lack of proper

training in fi lling the appraisal forms.

Appraisers do not measure performance

against objectives and the reporting structure

in the organization is unclear (66%).

Multiple supervisors and unclear

reporting lines.

Very little feedback during the year (56%). Policy of conducting evaluation only

once a year.

Promotion Merit is not the criteria on which promotions

are based (59%).

Nepotism and political infl uence.

The minimum period of fi ve years for the

eligibility of the next promotion is too long

(70%).

Laid-back culture; administrative

bottle necks; balloon-type hierarchical

structure with too many middle level

employees present.

(b)

Employee feedback segmented according to employee position in the organization: Young Offi cers and Fresh Recruits

Employees who were young with an average age of 27 years had the following concerns:

􀁺

Job interviews are not relevant to job requirements.

􀁺

Jobs are not created according to the basis of work requirements.

􀁺

Job requirements are not clearly explained in job advertisements.

􀁺

Jobs are not clearly explained by the supervisors.

􀁺

They have multiple bosses and supervisors to report to.

􀁺

Training-need analysis is not done.

􀁺

Training is not relevant to the requirements of the job.

􀁺

Job dissatisfaction.

(

Exhibit 6 contd.)

(

Exhibit 6 contd.)

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20 A

RIF N. BUTT, SHEZEEN HEMANI AND YASAR RASHID

SIAN JOURNAL OF MANAGEMENT CASES, 6(1), 2009: 5–26

􀁺

They do not have independence in their jobs.

􀁺

They do not feel that their job is signifi cant towards the overall success of the organization.

􀁺

Job descriptions are not clearly explained or written down.

On the other hand, there were positive viewpoints on the following:

􀁺

Satisfi ed with the promotion policy.

􀁺

Found the bell curve to be good.

􀁺

Felt that induction-level training was adequate.
Middle-age Group and Middle Management

Employees belonging to the middle level management with the average age of 42 years had the following

concerns:

􀁺

Appraisal form is unclear.

􀁺

Regular performance discussions are not held.

􀁺

Sports based factor infl uences the hiring process.

􀁺

Supervisors do not release good people for training.
High-level managers and seniors

Senior level management employees who were 50 years and above were concerned about the following:

􀁺

Find the appraisal form to be unclear.

􀁺

Performance is not discussed with them after the performance evaluation.

􀁺

Highly against bottom-up evaluation.

􀁺

Merit is not considered during the appraisal.

􀁺

Feel strongly about the bell curve and that it is ineffective in distinguishing between good and bad

employees.

They had positive viewpoints on the following:

􀁺

Job description is relatively clearer to them.

􀁺

They are not rotated frequently and are settled in one job for a longer period.

􀁺

They want to acquire training in their fi eld like marketing, fi nance, etc.

􀁺

They feel that they lack adequate IT knowledge and would like to get more IT training.
Source:
Case writer’s notes.

(

Exhibit 6 contd.)

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UMAN RESOURCE MANAGEMENT AT OCEATIC AIRWAYS 21

SIAN JOURNAL OF MANAGEMENT CASES, 6(1), 2009: 5–26
Exhibit 7

Employee Action/Review Form-1 (EAF-1)

(To be fi lled with consultation of the Reporting Offi cer)

Name: .......................................................................

Period of review: From .................................. To .................................. (Year)

Designation: ....................................................................

Section/Department: ....................................................................

Age: .............................................................

Qualifi cations: ..................................

Present pay group: ..................................

Assignment held during the period: ..................................

Column 1 Column 2 Column 3

OBJECTIVES PLANNED

For the next review

period

ACCOMPLISHMENTS

To be fi lled at end of

review period

REPORTING OFFICER’S

ASSESSMENT

SCORE

5 MEAN SCORE

Employee Signature: Assessed by Reporting Offi cer:

Date:

Reporting Offi cer’s signature: Signed by employee: Approved by next Superior Offi cer:

Approved by next superior

offi cer:

Date: Date:

Employee Action/Review Form-2 (EAF-2)

Name: ...........................................................

Period of review: From .................................. To .................................. (Year)

Designation: ....................................................................

Section/Department: ....................................................................

Age: ....................................................................

Qualifi cations: ....................................................................

Present pay group: ....................................................................

(

Exhibit 7 contd.)

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22 A

RIF N. BUTT, SHEZEEN HEMANI AND YASAR RASHID

SIAN JOURNAL OF MANAGEMENT CASES, 6(1), 2009: 5–26

Assignment Held During The Period: ....................................................................

Part A:

Job Review (To be fi lled by the employee)

1. In relation to your work how has the past year been (give reasons)?

2. What do you like/dislike about working at Oceatic Airways (give reasons)?

3. What areas of your job do you fi nd diffi cult (specify)?

4. What areas of your job do you fi nd the most interesting (specify)?

5. What kind of work would you like to be doing in three to fi ve years time?

6. What type of training/skills development would benefi t you in the next year?

Employee’s Signature: Date:

Part B:

Performance Appraisal (To be fi lled by the Reporting Offi cer)

Score the employees capability in the following areas in terms of their current job requirement and as per

Employee Action/Review Form (EAF-1)

Qualities Score
Work Methodology—How He Works?

Planning: The extent to which the employee is effective at developing goals and

strategies for future action.

Organizing: The extent to which the employee demonstrates effectiveness at fi nding

potential obstacles and diffi culties, then reaching appropriate conclusions and

solutions.

Problem-solving: The extent to which the employee demonstrates effectiveness at

fi nding potential obstacles and diffi culties, then reaching appropriate conclusions and

solutions.

Resourcefulness: The extent to which the employee demonstrates effectiveness in

creating solutions and/or fi nding new and better ways of doing things to assure

accomplishment of goals.

(

Exhibit 7 contd.)

(

Exhibit 7 contd.)

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UMAN RESOURCE MANAGEMENT AT OCEATIC AIRWAYS 23

SIAN JOURNAL OF MANAGEMENT CASES, 6(1), 2009: 5–26

(

Exhibit 7 contd.)

Communicating: The extent to which the employee demonstrates effectiveness

at conveying meaning and obtaining understanding with written and/or verbal

communication.

Additional criteria/comments

Effectiveness to Oceatic Airways—What he achieves

Productivity: The extent to which the employee produces a signifi cant volume of work

within a specifi ed period of time.

Quality: The extent to which the employee demonstrates effectiveness at producing a

high degree of excellence regarding the results of his efforts.

Cost objectives: The extent to which the employee demonstrates effectiveness in

meeting cost objectives in operating at lowest cost with minimum manpower and

optimal utilization of resources.

Profi t objectives: The extent to which the employee demonstrates effectiveness in

meeting profi t objectives and in generating and proposing/implementing new money

making ideas.

Additional criteria/comments

Personal qualities—What he is

Drive: The extent to which the employee exhibits ambition, energy, enthusiasm,

motivation and effort towards accomplishment of tasks and/or goals.

Initiative: The extent to which the employee is self-starting and demonstrates

ambition, drive, motivation and readiness when undertaking tasks/projects.

Reliability: The extent to which the employee is effective at task completion and

follow-through in relation to self and/or subordinates.

Team orientation: The extent to which the employee demonstrates the ability and

desire to collaborate with peers, subordinates and/or supervisors to reach/develop

conclusions benefi cial to the group.

Time management: The extent to which the employee organizes and manages his time

effectively and effi ciently.

Additional criteria/comments

Work knowledge—What he knows

Company vision/mission/objectives: The extent to which the employee has knowledge

of company’s structure, management philosophy and future goals.

Job knowledge: The extent to which the employee possesses practical and/or technical

knowledge to perform his job effectively.

(

Exhibit 7 contd .)

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24 A

RIF N. BUTT, SHEZEEN HEMANI AND YASAR RASHID

SIAN JOURNAL OF MANAGEMENT CASES, 6(1), 2009: 5–26

Customer knowledge: The extent to which the employee has information and

understanding of a customer’s characteristics such as common needs, demographic

similarities, industries, etc.

Additional criteria/comments

SUMMARY OF POINTS

5 4 3 2 1 MEAN

x = x = x = x = x = (1)

Form EAF-1 (Total score)

Extent planned objectives are accomplished

(Range 5 to 1) (2)

Overall assessment (Mean of the above two)

Part C:

Performance Assessment of Individual

Please summarize employee performance appraised in EFA-1 and Part B of EFA-2 and record signifi cant fi ndings

with Final Assessment Score and also summarize the employee’s improvement and training/development

needs.

....................................................................................................................................................................

Signature and Name of Reporting Offi cer: Date:

Part D:

Assessment and Remarks of Superior Reporting Offi cer

Remarks to include the endorsement of remarks as well as evaluation by Reporting Offi cer. In case of difference

in opinion with the assessment, own recommendation be given with specifi c reasons.

....................................................................................................................................................................

Signature and Name of Reporting Offi cer: Date:

Employee comments on his/her performance review, if any:

....................................................................................................................................................................

(

Exhibit 7 contd.)

(

Exhibit 7 contd.)

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UMAN RESOURCE MANAGEMENT AT OCEATIC AIRWAYS 25

SIAN JOURNAL OF MANAGEMENT CASES, 6(1), 2009: 5–26

....................................................................................................................................................................

Signature of Employee: Date:

Part E:

Overall Employee Performance (Based on mean points secured in Part C)

5 – Outstanding or exceptional performance.

4 – Very good, performance is defi nitely better than normally expected.

3 – Good, performance that consistently meets the requirements of the position.

2 – Needs improvement.

1 – Inadequate performance.

Outstanding Very Good Good Needs Improvment Remarks

Part F:

Training and Development Needs S. No Courses Date of Completion Remarks

Signature of Reporting Offi cer: Name:

Designation and Seal

Final comments of the Review Board:

....................................................................................................................................................................

Signature of Offi cial Review Board: Name:

Designation and Seal:

Source:
Company Documents.

(

Exhibit 7 contd.)

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26 A

RIF N. BUTT, SHEZEEN HEMANI AND YASAR RASHID

SIAN JOURNAL OF MANAGEMENT CASES, 6(1), 2009: 5–26
Exhibit 8

Organizational Chart

Source:
Company documents.Downloaded from http://ajc.sagepub.com at K.R.E.T'S TRIDENT INSTITUTE on April 11, 2010

MANAGEMENT ARTICLES /PRAMODKUMAR M KUPPI

Wednesday, 29 January 2014

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