How Air India's HR Policies are Divergent from the Principles of the Tatas

In the world of business, the name 'Tata' is synonymous with integrity, ethics, and social responsibility. The legendary JRD Tata, who helmed the Tata Group for over 50 years, was a visionary leader who believed in putting people first. His successor, Ratan Tata, carried forward his legacy and positioned the group as global leaders across diverse sectors.

However, a recent report by the Comptroller and Auditor General (CAG) of India has accused Air India, the national carrier, of having 'draconian' HR policies that are divergent from the principles of JRD Tata and Ratan Tata. According to the report, the airline has an excessive workforce, which is accounting for around 25% of its overall expenses, while its operational efficiency has been declining.

A Tale of Two Approaches

The report highlights how the principles of JRD Tata, who was a people-centric leader, were not followed by Air India, as the airline continued to hire employees without any financial viability. It also said that the airline's management failed to engage with its employees and instead relied on imposing strict rules to control them. Whereas, the Tatas believe in hiring the right people for the right job, and promoting their growth and development within the organization.

Air India's HR policies are different from those of the Tatas, as they are considered to be oppressive and bureaucratic. The pilots and crew members face salary delays, discrimination, harassment, and arbitrary transfers. The employees have to follow an attendance system that is based on the number of hours they work, which is not appropriate for those working in a customer-facing industry. Furthermore, the pension scheme, which was introduced in 2012, has been found to be unsustainable and inadequate.

Concrete Examples

The report also highlighted some specific examples of Air India's HR policies, which are severely divergent from the principles of the Tatas. They are as follows:

• Air India hired 346 cabin crew members in December 2016, while the industry was in a state of decline, which resulted in a loss of INR 10.6 crore.
• The airline imposed a 'layover allowance cut' on its pilots, which was not applicable to other airlines, causing resentment among the crew.
• Air India did not implement the recommendations of its own committee, which was constituted to look into the issue of arbitrary transfers of its employees.
• The airline did not pay the insurance premium for its employees, despite deducting the amount from their salaries.

Conclusion

In conclusion, Air India's HR policies are considered 'draconian' by many, and the airline must change its approach to align with the principles of JRD Tata and Ratan Tata. The company must focus on hiring the right people for the right job, investing in their growth and development, and engaging with them in a positive and constructive manner. If Air India wants to become a global leader in the aviation industry, it must adopt a people-centric approach and prioritize employee welfare and development.

• Reference: Air India's HR Policies 'draconian', philosophy Divergent From Principles Of JRD Tata, Ratan Tata.
• Further reading: "JRD Tata: The Compassionate Corporate King," by R.M. Lala.