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A CASE STUDY on AIR FLY AIRLINES
Merger issues leading to failure of Industrial relations
Critical Incidents - strikes, employee separation, Retrenchment Voluntary retirement and revenue losses.
Major Stakeholders - Employer, Management, Trade Unions, Employees, Labour & Government
Abstract
With the transformations and gradual change in business environment, the Industrial Relation system has seen a vast change over a period of time, due to which, the role of employer and employees have become more tough and challenging. Of all the human resource management problems that have occurred in the Indian Airlines Industry in recent times, the problem of Industrial Relations is the most critical. The reason behind this is the fact that Industrial Relation deals with people who are foundation of the Industry. Their action or counter reaction matters a lot for the Industrial Harmony of the economy country. Harmonious Industrial Relations are pre-requisite for economic development of a country. Success and growth of the Airlines Industry depends on cordial relationship between the employers and the employees.
The Objective of this case study is to examine the "Industrial Relations in Airlines Industry in India: "A Case Study of Air Fly Airlines". Research in this field can be of practical utility to all those involved in Industrial Relations scene like management, employees and the government.
Success of the Airlines Industry depends on cordial relationship between the employers and the employees. This study assesses the state of Industrial Relations in the Airlines Industry and also identifies the factors that affect it. The case study also proposes to redefine the pattern of Industrial Relations in Airlines Industry by suggesting some changes in the role of various stakeholders such as employer, management, union and government.
Introduction
Indian industrial enterprises are hugely affected by disinvestments, privatization, restructuring and takeovers which,
Millennium
Core issues related to the case:
* To establish a formal set up in the organisation and a productive relationship with Millennium's management team while maintaining its entrepreneurial vision and culture.
* To bring Millennium back to profitability by moving it from its R&D roots to a more commercially-focused platform.
* To regain credibility with the investment community.
* To reallocate the resources of Millennium between its commercial and R&D platforms.
* To optimize current commercial opportunities without jeopardizing future product development.
* Informal review process and compensation system.
* Lack of employees in commercial wing of Millennium.
* Ignorance of competition faced by the company with regard to its products.
* Failure due to marketing philosophy of Millennium.
* Losses due to failure of some alliances.
* Lack of competent employees at executive level mainly in R&D.
Analysis of data for the root cause/s of the problem
Millennium's organizational structure and processes had always been more informal than those of larger companies. It was organized around its people. Employees relied on informal committees and ad-hoc systems throughout the firm to help guide the business and coordinate operations. A lot of people resisted or resented the change in culture when Levin began to professionalize executive meetings when Millennium prepared to launch Velcade commercially and to restructure its business. There was Frustration among employees due to informal review process and biasness in terms of deciding over compensation policy.
Over time some disadvantages of the alliances began to manifest themselves. Failure occurred in acquisition of CORE by Millennium. Huge cost incurred in restructuring process in 2003. Millennium fails to consider the competition Integrilin faced in the market. Marketing philosophy of Millennium that markets were won through good science and clinical data so products based on good data woul
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