Management Control Systems at Air India

4294 Words Jan 24th, 2013 18 Pages
MANAGEMENT CONTROL SYSTEMS AT

Table of Contents
1. Introduction 3 1.1 Domestic Operations 3 1.2 Services 3
2. Organization Structure 4 2.1 Current Structure 4 2.2 Outgrowing the traditional model 4
3. Management Style And Culture 7 3.1 Attitude towards employees 7 3.2 Decision-making process 7 3.3 Focus of Air India 7 3.4 Credibility & Caring-Key to Air India’s Culture 8 3.5 Role of Supervisors 8 3.6 Role of Relational Competence 9 3.7 Official Language Implementation 9
4. Control Process of Air India 10 4.1 Steps taken for effective control process/system in the organization 10 4.2 Norms set for the discharge of functions 13 4.3 Scrutiny of policies and activities 13 4.4 The budget allocated to
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As the managers in a functional organization (with the exception of the CEO), aren 't responsible for profitability, costs can easily mismanaged.
Moreover, labor agreements that cut across several parts of a company can lead to higher wages and benefits. This is because everyone from baggage handlers to the catering staff receives some of the same perks as the cockpit crew gets.
To counter those shortcomings, aviation groups should analyze and take a hard look at the idea of implementing a new form of organization structured around separate business units, each with broad decision-making authority and responsibility for its own profitability. Such a decentralized structure resembles the classic business unit model of many diversified companies, retailers and banks, where individual units operate independently on a day-to-day basis and set their own strategic direction.

For airlines, however, this structure must differ in one significant way: units operating as stand-alone businesses would quickly destroy the network value that comes, for example, from coordinating interconnecting flight schedules, efficiently allocating aircraft across a number of routes, and using the fare structure to maximize revenue throughout a large network. Airlines thus need a hybrid structure that reaps the benefits of independent
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