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  • Essay / Air India Case Study - 853

    IntroductionAccording to the famous French management scholar Henry Fayol, there are mainly four imperative functions in an organization, namely planning, organizing, leading and controlling. All these functions are imperative for the successful management of an organization that enables it to achieve its objectives and operate in the interest of shareholders. In the light of the discussion, this paper focuses on the above aspects regarding Air India and explains how the failure of the above functions has led to the current crisis in the organization. Planning It is imperative that an organization must plan for the future in the wake of potential developments but also the current operations of the company. In the case of Air India, the problem began with the poorly planned and ill-timed merger of Air India and Indian Airlines to form NACIL (National Aviation Company of India Limited), with many post-merger issues not resolved. had not been taken into account previously, especially with regard to human resource issues which led to overcapacity due to which operating costs increased and profitability decreased due to which losses were multiplied by ten (Rajesh, 2008). Moreover, even as the airline is bleeding and surviving due to government support, Air India plans to expand its fleet and has placed orders to acquire Dreamliners to strengthen its international operations (Shukla, 2014). Additionally, the company continues to operate on a number of routes that are unprofitable, adding to fiscal problems. Organization It is very imperative for an organization to be aware of its strengths and weaknesses and operate accordingly. However, NACIL is not functioning according to its strengths and weaknesses and in the middle of the article......Oman Tribune: http://www.omantribune.com/index.php?page=columnist_details&column_id=622Rajesh, Y (July 1, 2008). NACIL is proposing savings measures, the employees' union is ready to knock it down. Retrieved April 12, 2014 from The Indian Express: http://archive.indianexpress.com/news/nacil-proposes-costcutting-measures-employees--union-ready-to-shoot-it-down/329407/Shukla, T (March 12, 2014). Air India to accelerate expansion and add eight Dreamliners in 2014. Retrieved April 10, 2014 from The Livemint: http://www.livemint.com/Companies/pTmPh3iN9UbrJpU3EMc5jO/Air-India-reviews-Boeing-Dreamliners-no-plan - to-ground-flee.htmlUpadhyay, A. (February 14, 2013). Jet Airways-Etihad deal threatens Air India's survival. Retrieved April 12, 2014 from The Economic Times: http://articles.nomictimes.indiatimes.com/2013-02-14/news/37100363_1_jet-etihad-gulf-carriers-capa-report