HR Problems at Jet Airways: Coping with Turbulent Times in the Indian Aviation Industry


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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:

Price:

Case Code : HROB117 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

HR Problem / Organizational communication / Hiring and Firing / Compensation management
Case Length : 16 pages
Period : 2007-2008
Pub Date : 2009
Teaching Note : Not Available
Organization : Jet Airways (India) Limited
Industry : Aviation
Countries : India

Abstract:

The case is about the retrenchment drama that unfolded in one of India's leading aviation companies, Jet Airways (India) Limited (Jet), in late 2008. After showing the door to more than 1000 employees in a bid to streamline its operations, Jet was faced with immense criticism and opposition by various organizations and political parties.

Jet's chairman Naresh Goyal (Goyal) reinstated the employees a day later saying that he was not aware of these sackings. The Indian aviation industry was going through a tough phase and experts felt that it was in the interest of the company to retrench employees to remain competitive.

Experts largely felt that Goyal had capitulated under pressure from external parties while others felt that all may not be well with the organizational communication mechanisms at Jet.

Issues:

Analyze the HR problems faced by Jet Airways in 2008.

Discuss various concepts related to hiring, firing, and compensation management.

Understand the rationale behind Jet's decision to lay-off employees and the reason's behind its later decision to take back the sacked employees.

Understand the importance of communication in an organization and analyze whether there were any loopholes in Jet's organizational communication network.

Understand the rationale behind the pay cuts initiated at the company.

Understand how environmental variables could affect a company's HR policies.

Contents:

  Page No.
Introduction 1
Background Note 2
HR Issues, Management and Decision Making at Jet 3
The Retrenchment Drama Unfolds 5
Reasons for Retrenchment 6
The Debate Leading to the Reinstatement of Employees 8
Massive Salary Cuts Follow 10
Exhibits 12

Key Words:

Hiring, Firing, Retrenchment, Lay-off, HR policies, Decision-making, Organizational communication, Compensation management, Training, Legal, Political, Aviation, India, Jet, Kingfisher

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