Case summary

Unique airways is a top five airline company in India. The company has 300
domestic flights and 30 international flights to all the major cities. The
company has 10200 employees, including 1500 pilots and 1100 aircraft
maintenance engineers. The company practice distinct HR practices.

Unique Airways initiated to expansion its operation double. To feed the

expansion HR department required recruitment and training. For this reason
HR department formed a panel to scan the external environment. The
scanning report find that the domestic labor market condition were difficult
for job like pilots and maintenance engineers due to a vibrant and booming
economy. The company could exercise the option of employing foreign pilots
and maintenance engineers. But the cost of foreign pilots and maintenance
engineers are on average 40 % more than their Indian counterparts. The
panel still voted the foreign employees. The company appointed sizeable
numbers of foreign employee.
After these appointments, the economy was gripped by recessionary
condition. Its profits come under increasing pressure. The authority find that
foreign pilots and maintenance engineers salaries are unreasonable and they
blame the HR department.

Case Character Analysis

In this case there are three character. First the human resources department,
second the panel of expertise, third, the management.

Human resources management is duty to deal with the employee related

activities. In this case the Unique Airways is the large airline company in the
India. The Human resources practice of this company is very unique and
distinct. The companys HR department won several awards for its distinct
HR practice. The head of HR department name is Rames Divan. Unique
Airway took a expansion scheme so that the HR department took steps to
feed the expansion hunger.

Panel of expertise means a group of people who appoint for performing

specific job. In this case, the HR department assign a panel to evaluate the
external environment of job market. The panel examine the economic,

political and labor market environment in addition they also consider the
industry performance and prepare to a report to HR department.

The management is the authority who control the overall company. In this
case, the management evaluate the HR job.

Problem of this Case

Unique Airways initiated to expansion its operation double. To feed the
expansion HR department required recruitment and training. For this reason
HR department formed a panel to scan the external environment. The
scanning report find that the domestic labor market condition were difficult
for job like pilots and maintenance engineers due to a vibrant and booming
economy. The company could exercise the option of employing foreign pilots
and maintenance engineers. But the cost of foreign pilots and maintenance
engineers are on average 40 % more than their Indian counterparts. The
panel still voted the foreign employees. The company appointed sizeable
numbers of foreign employee.
Soon after the appointment the economic condition fell down. Aviation
industry also be no exception. The company face less traffic passenger so
that their income gradually fell down. Their authority examine the reason
why their profit under pressure. They find that their foreign pilots and
maintenance engineers salaries are higher than local employee. Which is
unnecessary at this crisis situation.

After analyzing the situation, we find that the company face major Human
Resources planning error. Because Human resources planning is the process
of identifying and then matching HR requirements and availability in order to
determine the future HR activities of the organization on the basis of the
organizational objectives. The steps in HR planning process are setting
organizational objectives and strategies, assessing the external environment,
process in house skill and competencies inventories.

Question Answer
1.What is our assessment of the development in
Unique Airlines?

Ans. While taking the expansion decision, The Unique

Airline should take a complete evaluation of its entire
organization. That covers the Type & strategy of
organization, Organizational growth cycles & planning,
Environmental uncertainties, Type & quality of
information, Time horizons, Labor market, Outsourcing.
After evaluating all the factors of Unique Airways
should take Short-term plans (6 months to 1 year) or
Long-term plans (3 to 20 years) which Depends on
degree of uncertainty prevailing Greater uncertainty
Plans time horizon.
Also analyzing the Labor that included the factors
Shortages may occur, Considerations about labor
supply: Population, Demand of goods & services,
Nature of production technology, Employability of the
people. And the other ultimate plan should be fixed
when the crises situation occur.
2.Do we agree with the view of the management that
the panel misguided it?
Ans. Yes, we agree with the view of the management that
the panel misguided the HR. The panel did not consider
the future as well as the wrong cost benefit analysis. They
only evaluate the current economic condition not
predicting the future economic condition.
3.If we were to be the panel member, what would be
our recommendation?
Ans. If we were the panel member our recommendation
will be follow as below:
1. 40% of the domestic employee.

2. 30% of the foreign employee.

3. 30% Outsourcing.
Recommendation:
Recommendations for