Human Resource Development in Tourism Industry in India: a Case Study of Jet Airways India Ltd.

Transcription

1 Journal of Tourism: A Contemporary Perspective, Vol 1(1), 1 6, January 2014 Human Resource Development in Tourism Industry in India: a Case Study of Jet Airways India Ltd. Anushree Banerjee* Faculty Manyawar Kanshiram Institute of Tourism Management, A-905/4, Indira Nagar, Lucknow ; 08anushree@gmail.com Abstract Human Resource Development (HRD) is that section of management which deals with the main factor of any organisation. The main purpose of it is to improve the efficiency of the personnel. When a well applied HRD approach is undertaken, it helps an employee to increase his knowledge and skills. This helps him to deliver quality performance. There are many issues which can have serious impacts if not rectified. The major issues that are restraining the industry from achieving high economic value are shortage of qualified personnel, shortage of tourism training institutes, shortage of well qualified trainers, working conditions for the employees. Policies which can help the employees to work in supportive environment are also a point of concern. The paper is an attempt to judge the work done by the HRD team of the tourism industry with special reference to Jet Airways India Ltd. This in turn can enhance the capabilities and motivate them to work more efficiently. Keywords: Human Resource Development, Jet Airways India Ltd., Capabilities, Productivity, Training and Development. 1. Significance of the Study HRD has been recently given importance in tourism industry. For building our nation and organizational development, there is a need to mobilize the human resource. Mobilization would include the need to develop the human resource, their skills, knowledge, attitudes, so that they can achieve competently the predetermined goals. For developing tourism industry the primary requirement is efficient and professional managers the second most important point that is neglected very often is the training of the existing staff to get a professional outlook. As tourism is a growing industry, there is huge requirement of efficient and trained personnel to fill various jobs. Tourism industry is basically a service industry where assets of an organisation can be their human resource. There are varieties of jobs available for managing various tourist services. Special attention has to be given on training of existing staff. It has to be ensured that there should not be any loophole in the facilities and services provided to the customer. In case of a developing country, it will also be appropriate to study at this stage the volume of manpower required for activities complementary to accommodation industry in general and service sector in particular (Rao, 2004). India s share of global international tourism is very low in spite of having a lot of tourism potentials. Our country can have human resource which can help the tourism industry to flourish and make a mark on the world map as a favourite tourist destination. We would have skilled persons to handle this industry right from the level of waiters to executive level and in case of Jet Airways (I) Ltd. ground duty staff to flying staff (Report, ). Training programmes should be organised for the employees to-be so that they could be trained as per the requirements of the industry. The characteristics of attitude which include flexibility and adaptability contribute to an employee s success in promotion. Technical skills required for equipment operation and maintenance, personnel management etc. A staff planning exercise can be *Corresponding author: Anushree Banerjee (08anushree@gmail.com)

2 Human Resource Development in Tourism Industry in India: a Case Study of Jet Airways India Ltd. done in order to determine the needs for the required human resource. Through this, we can forecast easily for exactly what types of personnel, with what qualifications or skills will be required. This can help in determining the finalisation of required training programmes for the local residents. This will also help in determining whether there is a need for trained personnel from other countries and also whether local people are to be sent for training elsewhere (Rudrabhasavaraj, 2004). 2. Literature Review The successive paragraphs present a comprehensive review of literature on the subject matter. In 1982, Rao, T.V. conducted a survey of HRD practices in Indian industries. The survey reveals that only 17 out of 53 companies had formal policy focusing on HRD. All in all HRD appeared to be becoming a significant aspect of work life in many organizations. Another survey was carried out by Rao, T.R. to judge HRD climate in Indian organisations. The environment was not very good to HRD due to the indifference of employees as per the survey. The top management in most organizations were not making sufficient efforts to improve the quality of work life. Rao, P. Punna and Reddy M. Sudarshan in their compiled and edited book entitled Human Resources Development: Mechanisms for Extension Organisations (2001) have mentioned the importance of HRD for Agriculture Extension. They realised that there is a need for fresh look at efforts to build the capacity and capability for HRD in the emerging areas. Agarwal, Nair Banerjee in his book entitled Human Resource Management (2004) has mentioned that the purpose of this book is to assimilate new insights from human resource management and behavioural sciences into established concepts. Prasad, L.M. in his book entitled Human Resource Management (2003) has tried to place proper emphasis on the human resources of the organization. It presents the most recent developments in the field and tries to relate how these developments are relevant to Indian Companies but it has failed to focus on HRD and tourism. Gupta, Shishi K. and Joshi, Rosy in their book entitled Human Resource Management (2004) have laid emphasis only to the effectiveness of Management of Human Resources. Kaushal, H. in his book entitled Human Resource Development (2004) has made an attempt at making good this vital deficiency of workable case studies in management. Reddy, Sumati in her edited book entitled E-Learning and Technology: New Opportunities in Training and Development (2003) has highlighted how distance training and education helps organizations to meet the challenge of organizational change reach competitive standards and achieve organizational goals. Distance and online training is considered as an investment and people which helps in meeting pre-determined objectives. There is a dearth of research studies on the development of human resources in Tourism Industry particularly in post liberalization era. The present study is an endeavour of the author to present the varied dimensions and facets of developing the human resources in Tourism Industry with special reference to Jet Airways (I) Ltd. Author has made an endeavour to bring in account a comprehensive study with regard to HRD in Tourism Industry. The case study of Jet Airways (I) Ltd. would successfully represent the concept and applicability of HRD in Tourism Industry in India. 3. Statement of the Problem and Emerging Issues The primary concern of tourism industry is the quality and efficiency of services. In order to achieve this, each of the components of tourism industry requires trained/skilled manpower. Being a service industry, the manpower is the blood of any tourism organisation. They are the ones who can decide the fortune of any company. Thus the need to develop the required human resources in various segments of the tourism industry in general and Jet Airways in particular has become imperative. Shortage of tourism training infrastructure, shortage of qualified manpower, and qualified trainers, working conditions in the tourism sector are the matter of concern in the tourism sector. There is need to employ well-educated and well trained tourism personnel for achieving higher productivity. The organisations, who are utilizing the services of educated and trained human resources, will be definitely more successful than the ones who are not utilising the services of trained personnel. 2 Journal of Tourism: A Contemporary Perspective Print ISSN: xxxx-xxxx Online ISSN: xxxx-xxxx

3 Anushree Banerjee Numerous decision-making activities, having their bearing upon planning, control, investment, productmix, etc., necessitates the involvement of well-educated and well-trained personnel in the Tourism Industry. A high quality of tourist services highly depends on the availability of sufficient human resources (quantitatively and qualitatively). It is with the above-mentioned imperatives that this study has been undertaken. 4. Objectives of the Study To assess the contribution, which can be made through the individuals who can provide their services to fulfil the requirement through which we can be known as a successful destination as a whole. To acknowledge the issues and problems faced by the employees of tourism industry. To rectify the issues and plan according to the needs of the personnel to enhance the productivity. 5. A Case Study of Jet Airways (I) Ltd. 5.1 Financial Position of Jet Airways (I) Ltd. The year 2012 has seen very difficult years in terms of operation and consequently has shown losses. The main reason for the same is the high costs of operations and a number of pliers in the industry. The two main reasons for this decline were: Price of ATF and high rate of exchange. Crude oil prices continued to be very high especially in the latter half of the year. In addition, the Rate of Exchange of the Indian Rupee to the US Dollar continued to be negative. USA, Europe has put the airline in difficulty due to their financial instability. This has put significant pressure on the financials of airlines. The banks were adamant on giving any assistance. Airlines tried to hike fare towards the end of the year, because of some demand supply imbalance being reduced. The total expenses amounting to `1,650,160 lakhs in Fiscal 2012 increased by 26% from `1,307,492 lakhs in Fiscal The Company has is able to improve its financial status at the need of the financial year of In the year 2013, the results can be seen (Annual Report, 2012). The Company has introduced its low fare service products under the JetKonnect brand to provide its services to the low-fare category also. The company believes that JetKonnect re-branding will help it to increase credibility and revenues. The reason behind the same is the improved perception of the consumers which in turn will help in improving the yields. Airport changes are also posing a threat for the company. The announcement of union budget on service tax will have an impact on the fares. All of these cost increases are being passed through to the customer and this will preclude airlines from taking further fare increases, lest the same becomes unaffordable in the hands of the customer. As ATF cost represent 50% of the total cost, it has a major impact on the cost factor and the financial condition of the airline. The weak status of the Indian Rupee with the US Dollar is posing a cost challenge. The inflow of foreign currency is not higher than the outflow of foreign currency. A major step to recover from losses is marking the routes which are constantly making losses and removing operations from those routes. The aviation industry all over the world is facing the financial crisis and so as Jet Airways. The Indian economy is growing at a good pace in comparison with other markets across the world. It is expected to post growth rates of 6 to 7% per annum for the upcoming decade. This may imply that the Indian aviation industry may see growth rates of over 12%. But, there are few challenges which can put strain on the profitability of the company like the increase in foreign exchange. Jet Airways is having a moderate fleet which is operating in the difficult environment. The company is earmarking the loss making routes and discontinuing them and add new capacity in markets which can improve the network and increase the revenues. The company has re-branded JetLite into JetKonnect. This can help the company to attract the low fare category of consumers which can yield more returns to the company. This rebranding has seen improved customer satisfaction. The present study is related to planning for human resource, training and development, recruitment and selection, counselling, performance appraisal, career development, reward system and organizational culture and effectiveness. Thereby to utilize their potentialities for enhancing productivity to help improve job conditions and quality of their work life. Journal of Tourism: A Contemporary Perspective Print ISSN: xxxx-xxxx Online ISSN: xxxx-xxxx 3

4 Human Resource Development in Tourism Industry in India: a Case Study of Jet Airways India Ltd. 5.2 Findings Following observations were made based on the survey conducted on the employees of Jet Airways: From (Fig. 1 6), we can conclude that as a whole the majority of employees of the organisation are not satisfied in terms of promotions and incentives. The majority of them feel that the HR department of the company must be more supportive towards the employees as they are not getting their promotions on time. The employees also feel that they are also eligible for incentives as per their performance appraisals. There should be timely meetings of the employees with the HR managers with whom the employees can share their issues. It is evident from the survey that the employees feel that personnel of any organisation is to be considered an extremely important factor for productivity. They feel that they should be treated more politely by the management as they are the ones who are actually operating their business. Majority of the employees feel that there is an urgent need to re-design their organizations. The most required Figure 1. Promotion. Figure 4. Required trainings attended. Figure 2. Working conditions. Figure 5. Incentives. Figure 3. Policies related to HR. Figure 6. Employee satisfaction. 4 Journal of Tourism: A Contemporary Perspective Print ISSN: xxxx-xxxx Online ISSN: xxxx-xxxx

5 Anushree Banerjee feature is to provide training to the employees and develop the human resource. They feel that their potentialities are not being fully utilized. The HRD team of Jet Airways (I) Ltd., is helping the company but the overall performance with regard to higher productivity has not been so encouraging. The main reason is the conflict between employees and the management. Further, organizational culture created within the organizations is not conducive for sustainable development. 5.3 Conclusions, Suggestions and Recommendations Tourism is an important economic activity as the tourist visiting a particular country is also bringing along with them the foreign currency to utilise in the country visited. The industry has major economic consequences. The industry has the potential of employment generation and it has been well recognized by the world over. The industry today is recognized as a major economic contributor. The tourism industry is facing with many challenges in the field of human resource. One of the major issues in this regard is the quality of human resource. The industry is in dire need of qualified quality personnel. Today, human resource planning is considered as the way management comes to solve the ill defined and tough-to-solve human resource problems faced by an organization. The role of a HR manager is very crucial as it involves selection and recruitment of the right person who can prove to be an asset for the industry. The training and development plans are to be effectively implied so that the personnel can develop talents and hence perform effectively in more challenging work situations. An organisation is considered to be successful if it is continuously trying to improve its product and provide quality services to its consumers. This requires each and every personnel of the organization to be professional, able, skilful and knowledgeable. The organisation should determine the training requirements. For this, two levels of supervision can be implemented and both levels of supervision should be addressed by the managers having the competencies required for that level. If the work allotted to an employee is competent enough in which opportunities are provided and the work draws enough recognition, the employee will achieve a high level of satisfaction. The rewards given to an employee may be monetary or non-monetary. The rewards must meet his basic needs. The environment in which the employee is working is very important. It should be supportive which helps to build team spirit and shows that employees are wanted. The country which has trained human resource can develop the tourism institutional structure. Many technological advancement can also be done through the trained personnel. In tourism industry, economic development can be done only when the environment is good enough, ready to change at all levels as per the requirement. This calls for educated and literate people. The main goal is to make the required changes in the policies and strategies so as to develop human resource in tourism industry. Collaboration of all the countries is the need for the next century. HRD system has to be groomed to its fullest to achieve competitiveness on international platform. Quality of manpower is the major challenge faced by the tourism industry. To promote tourism industry, government of India has shown some interest, but unfortunately the steps taken are not enough. The government has realized the importance of the skilled personnel at different levels. For this, initiatives are being undertaken to train and develop human resources. The government should look after the needs of the human resource by setting up a committee consisting of HRD professionals and professionals from the tourism industry. The importance of ensuring high standards of quality and efficiency in tourism services to develop international tourism is well-recognised. It is particularly important in the case of developing countries intending to promote tourism as an instrument for economic development. It can, however, be achieved only by initiating specific measures for HRD in various segments of the tourism industry. The industry requires trained professionals at each and every trade like hotels, restaurants, travel agents, tour operators and other providers of tourist services. Security guards, taxi and coach drivers and other ground level workers need to be trained so as to make them skilled and presentable. Inadequate infrastructure is another factor of much concern for Indian tourism. It is observed that the Department of tourism is not being able to convince the Ministry of Finance and the Planning Commission to grant adequate funds. These funds can be utilised in developing infrastructure. To upgrade the human resources, we need to educate the personnel regarding career planning, Journal of Tourism: A Contemporary Perspective Print ISSN: xxxx-xxxx Online ISSN: xxxx-xxxx 5

6 Human Resource Development in Tourism Industry in India: a Case Study of Jet Airways India Ltd. career development and career counselling so that they may become aware of the general phases of their growth and development. We need to realise the importance of the industry as soon as possible so as to help it in flourishing. It is recommended that the Government of India should form an HRD Board, which should encourage the researches upon increasing potentiality of human resources. It should take many productive and aggressive steps for the promotion of HRD. The need of the hour is to tackle grassroots realities of HRD and then take some harsh measures to infuse a new blood in Jet Airways (I) Ltd. Annexure 1 Questionnaire Name: Age: above 55 Income (P.A.): below 2 lac above 11 Designation: Years of experience: 1. As per the years of your experience, how do you rate your company in comparison to other airline companies? Are the working hours in compliance with the labor laws? 3. Are you due for your next promotion? 4. Are you satisfied with the promotions given to you by your company? 5. If there is an HR issue, does the management take serious steps? 6. Are you satisfied with the working conditions provided to you by your organization? 7. Are you aware of employees policies of your company? 8. Are you satisfied with the policies of your company related to the employees? Can t say 9. Do you feel the management should be more serious towards their employees? 10. How many trainings have you attended? < > How do you explain the number of trainings attended so far? Many Sometimes Never 12. Do you think trainings play an important role in the overall development of an employee? 13. Does your company have HR meetings with you attended by HR managers where you can discuss your issues? 14. If yes, in what duration does it takes place? Yearly Half-yearly Quarterly 15 Are you satisfied with the incentives you have received till date from your company? 16. Overall, how much satisfied are you with your company? 6. References 1. Annual Report, Jet Airways (I) Ltd., Mumbai. 2. Rao VSP, Human resource management, New Delhi: Excell Books. 3. Report Ministry of Tourism, Government of India, New Delhi. 4. Rudrabhasavaraj MN, Human resource management manual. Mumbai: Himalaya Publishing House. 6 Journal of Tourism: A Contemporary Perspective Print ISSN: xxxx-xxxx Online ISSN: xxxx-xxxx