Hr Issue in Air India

Essay by kiranpatelUniversity, Master'sA+, August 2009

download word file, 27 pages 0.0

HUMAN RESOURCE MANAGEMENTGROUP 29005INSTITUTE OF RURAL MANAGEMENT, ANAND(INDIA)Executive SummaryThere has been an unprecedented growth in the number of mergers and acquisitions that took place (or was announced) in last calendar year. The total number of M&A deals announced during the year 2007 rose up to 661 with a total announced value of $51.17 billion as compared to 2006 in which only 480 such deals took place. Sectors like steel, telecom and aviation witnessed amalgamation of big brands and thus, was clear leaders in sectoral values. With the same thought, the Government of India, on 1 March 2007, approved the merger of Air India and Indian Airlines. Consequent to the above, a new Company viz National Aviation Company of India Limited (NACIL) was incorporated under the Companies Act, 1956 on 30 March 2007 with its Registered Office at Airlines House, 113 Gurudwara Rakabganj Road, New Delhi. With such a whooping number of M&as taking place every year, some concerns of employees also rise apparently.

This is because HR issues are the most neglected issues as financial considerations are given more importance.

When a merger is announced, employees of the company become worried about issues like job security, role conflicts, interpersonal conflicts, cultural adaptations, etc. Such factors hold the power to make or break the deal. It is believed that most of the overseas mergers fail because of people centric issues as the management fails to deal with them aptly. It becomes the responsibility of HR personnel of the organization to take care of such issues before and after the amalgamations takes place.

Role of HR in making M&A successfulThe success of a merger and acquisition depends on how well an organization deals with issues related to its people and cultural integration. The HR department of an organization acts as a strategic...