The Challenges Faced By Kingfisher Airlines Commerce Essay

While starting this assignment, I was required to conduct my research based on any company or organization. This could prove to be very tricky as the company selected should have been both challenging as well as with some scope for applying managerial theories.

Kingfisher:-Kingfisher is an Kingfisher based in Mumbai, India, and focuses primarily on domestic routes, along with several international services to neighboring countries in Asia. Kingfisher is state-owned, and is administered by the Ministry of Civil Aviation. It is one of the two flag carriers of India, the other being Air India. The Kingfisher was rebranded as Indian for advertising purposes as a part of a program to revamp its image in preparation for an initial public offering (IPO). The Kingfisher operates closely with Air India, India’s national carrier. Alliance Air, a fully-owned subsidiary of Kingfisher, was renamed Air India Regional. In 2007, the Government of India announced that Kingfisher would be merged into Air India. As part of the merger process, a new company called the National Aviation Company of India Limited (NACIL) was established, into which both Air India (along with Air India Express) and Kingfisher] (along with Alliance Air) will be merged. Once the merger is complete, the Kingfisher – which will be called Air India – will continue to be headquartered in Mumbai and will have a fleet of over 130 aircraft.

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History:- Kingfisher Kingfisher is a private airline based in Bangalore, India. Currently, it holds the status of India’s largest domestic airline, providing world-class facilities to its customers. Owned by Vijay Mallya of United Beverages Group, Kingfisher Kingfisher started its operations on May 9, 2005, with a fleet of 4 brand new Airbus – A320, a flight from Mumbai to Delhi to start with. The airline currently operates on domestic as well as international routes, covering a number of major cities, both in and outside India. In a short span of time, Kingfisher Kingfisher has carved a niche for itself in the civil aviation industry. Kingfisher Kingfisher proved to be a stiff competition for other domestic Kingfisher of India, with its brand new aircraft, stylish red interiors, stylishly dressed cabin crew and ground staff. The airline introduced in-flight entertainment (IFE) systems, for the first time to Indian consumers. The IFE systems were provided on every seat, even on the domestic flights. The airline offers attractive services to its on board passengers. Years following its inception proved to be beneficial for the airline, in terms of its booming business, with a good track record of customer satisfaction. However, it faced a worsening economic scenario in 2008

MANAGEMENT

Management in all business areas and human organization activity is the act of getting people together to accomplish desired goals and objectives. Management comprises planning, organizing, staffing, leading or directing, and controlling an organization (a group of one or more people or entities) or effort for the purpose of accomplishing a goal. Resourcing encompasses the deployment and manipulation of human resources, financial resources, technological resources, and natural resources. Because organizations can be viewed as systems, management can also be defined as human action, including design, to facilitate the production of useful outcomes from a system. This view opens the opportunity to ‘manage’ oneself, a pre-requisite to attempting to manage others Management can also refer to the person or people who perform the act(s) of management.

Basic functions of management:-

Management operates through various functions, often classified as planning, organizing, leading/directing, and controlling/monitoring.

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* Planning: Deciding what needs to happen in the future (today, next week, next month, next year, over the next 5 years, etc.) and generating plans for action.

* Organizing: (Implementation) making optimum use of the resources required to enable the successful carrying out of plans.

* Staffing: Job analyzing, recruitment, and hiring individuals for appropriate jobs.

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* Leading/Directing: Determining what needs to be done in a situation and getting people to do it.

* Controlling/Monitoring: Checking progress against plans, which may need modification based on feedback.

Management hierarchy In an organization:-

The management of an organization may have three levels:-

Senior management (or “top management” or “upper management”)

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Middle management

Low-level management, such as supervisors or team-leaders

Top-level management:-

* Require an extensive knowledge of management roles and skills.

* They have to be very aware of external factors such as markets.

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* Their decisions are generally of a long-term nature

* Their decisions are made using analytic, directive, conceptual and/or behavioral/participative processes

* They are responsible for strategic decisions.

* They have to chalk out the plan and see that plan may be effective in the future.

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* They are executive in nature.

Middle management:-

* Mid-level managers have a specialized understanding of certain managerial tasks.

* They are responsible for carrying out the decisions made by top-level management.

Lower management:-

* This level of management ensures that the decisions and plans taken by the other means employees.

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* Lower-level managers’ decisions are generally short-term ones.

Management Theories:-

These are three basic management theories:-

Classical Viewpoint (scientific management, bureaucratic management, administrative management)

Behavioral Viewpoint (Hawthorne studies, human relations movement, behavioral science approach)

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Quantitative Viewpoint (management science, operations management, management information systems)

1. Classical Viewpoint:-It includes

Scientific management

Bureaucratic management

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Administrative management

Scientific management: – Scientific management is defined as the use of the scientific method to define the “one best way” for a job to be done.

Taylor’s Four Principles of Scientific Management:-

1. Study each part of the task scientifically, and develop a best method to perform it.

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2. Carefully select workers and train them to perform a task using the scientifically developed method.

3. Cooperate fully with workers to ensure they use the proper method.

4. Divide work and responsibility so management is responsible for planning work methods using scientific principles and workers are responsible for executing the work accordingly.

Bureaucratic management:-

GENERAL ADMINIST Characteristics of Weber’s ideal bureaucracy

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The major characteristics of Weber’s ideal bureaucracy include for an organization:-

a. Specialization of a labor

b. Formalization of rules and procedures

c. Impersonality in application of rules and sanctions

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d. Formalization of lines of authority into a hierarchical structure

Effectively.

Max Weber

Theory of Administrative Management:-

The role of administrative management concludes that all activities that occur in business organizations could be divided into six main groups:-

Technical (production, manufacturing)

Commercial (buying, selling, exchange)

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Financial (obtaining and using capital)

Security (protection of property and persons)

Accounting (balance sheet, stocktaking, statistics, costing)

Managerial (planning, organizing, commanding, coordinating, controlling).

Fayal’s 14 principles of management:-

Division of labor: work must be subdivided to facilitate specialization;

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Authority: authority and responsibility should go hand in hand;

Discipline; discipline is important to develop obedience, diligence, energy and respect;

Unity of command: subordinates must report to one superior;

Unity of direction: all operations with the same objective must have one manager and one plan;

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Subordination of individual interest to general interest: the interest of one individual or group should not dominate the interest of the enterprise as a whole;

Remuneration: remuneration and all other methods of payment should be fair;

Centralization: managers always hold final responsibility but should delegate certain authority to subordinates;

Scalar chain: a clear line of authority or chain of command should extend from the highest to the lowest level of an enterprise. This helps to ensure an orderly flow of information and complements the principle of unity of command;

Order: there is a place for everything and everything in its place. Proper scheduling of work and timetables to complete work is important. This can facilitate the channeling of materials to the right place at the right time;

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Equity: employees should be treated with kindness and justice;

Stability of tenure of personnel: management should work towards obtaining long-term commitments from staff and avoid unnecessary turnover of staff which is costly and works against overall goal accomplishment;

Initiative: workers should feel like an active part of the organization through conceiving and executing plans in order to develop their capacity to the fullest;

Esprit de corps: harmony and union help to build the strength of an enterprise. It is an extension of the principle of unity of command, emphasizing the need for teamwork and the importance of communication.

Contribution of the classical viewpoint for an organization:-

Highlights the need for a scientific approach to management.

Points out that work methods often can be improved through study.

Identifies a number of important principles that are useful in running organization efficiently.

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2. Behavioral Viewpoint: -From this viewpoint of management of personal reactions (thoughts, feelings, and behaviors) rather than solely from the problem-solving perspective, this orientation involves conceptual input and feedback interwoven with trainee self-examination and practice of new behaviors in a structured human relations training context.

Hawthorne studies: -The Hawthorne studies, initially undertake to investigate the relationship between work-place conditions and worker productivity, introduced a wide range of topics to the field of management study. individual work behavior is driven by a complex set of factors, work groups develop norms which mediate between the needs of the individual and institution, employees should not be considered appendages of machinery, awareness of employee sentiments and participation can reduce resistance to change, the workplace is an interlocking social system, not simply production system, social structure maintained through

“Symbols of prestige and power” These findings opened the door to the study of client-centered therapy, small group behavior, and organization theory and research methodology.

Human Relations Movement: – It is defined as a movement in management thinking and practice that emphasized satisfaction of employees basic needs as the key to increased worker productivity. Because it is impossible to cover all aspects of the human relations movement, I will relate the Hawthorne Studies and focus on three key points to discuss the advantages and problems

1. Respecting and concerning with workers

2. Understanding and satisfying the employees wants and needs

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3. Working together and encouraging workers.

The reason workers are motivated by such things is that individuals have a deep psychological need to believe that their organization cares about them, is open, concerned, and willing to listen.

Human Relations Movement

Behavioral science approach: – The behavioral approach to view management from a social and psychological perspective. This concern about the well-being of the workers and wants them to be treated as people, not as a part of the machines. Introduction to the behavioral science approach Advocates of the human relations movement believe that if managers focused on employees rather than on mechanistic production, then workers would become more satisfied and thus, more productive. They supported the notion that managers should be paternalistic and nurturing in order to build work groups that could be productive and satisfied. The behavioral science movement stressed the need for scientific studies of the human element of organizations.

This model for management emphasizes the need for employees to grow and develop in order to maintain a high level of self-respect and remain productive workers. Theory X and Theory Y developed by Douglas McGregor also emphasized about these things.

3. Quantitative Viewpoint: -Quantitative Management (also known as Operations Research) of a systematic and scientific approach to problem solving and decision making in complex Environments and situations of uncertainty and conflict act.

Quantitative Management is a practical field. It can be applied in many areas: manufacturing, businesses management, banking, environmental planning, mining, housing and engineering projects, management consultancy – in fact, in every situation where numerical data are available and management or decision making takes place.

Management Science:-

A discipline(a branch of knowledge)that attempts to aid managerial decision making by applying a scientific approach to managerial problems that involve quantitative factors ,management science is also called operations research (OR).A rational, structured approach to problem solving and often takes a quantitative view of decision making.

Operations management: -Operations management is an area of business concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs (in the forms of materials, labor and energy) into outputs (in the form of goods and services).

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Operations traditionally refer to the production of goods and services separately, although the distinction between these two main types of operations is increasingly difficult to make as manufacturers tend to merge product and service offerings.

More generally, Operations Management aims to increase the content of value-added activities in any given process. Fundamentally, these value-adding creative activities should be aligned with market opportunity (see Marketing) for optimal enterprise performance.

Management information system: -A management information system (MIS) is a subset of the overall internal controls of a business covering the application of people, documents, technologies, and procedures by management accountants to solve business problems such as costing a product, service or a business-wide strategy systems applied in operational activities in the organization. Academically, the term is commonly used to refer to the group of information management methods tied to the automation or support of human decision making, e.g. Decision Support Systems, Expert systems, and Executive information systems. Information is the lifeblood of all organizations – now more than ever. MIS professionals work as systems analysts, project managers, systems administrators, etc., communicating directly with staff and management across the organization.

APPLICATION OF MANAGEMENT THEORIES

The above mentioned theories play an active role in framing any organization and company nowadays. If well-implemented, these theories can bring out the best in an organization leading to tremendous progress, both financially and productively. Kingfisher is one such company utilizing the merits offered by these management and administrative theories.

Implementation of Scientific management

Employee Recruitment: Kingfisher follows a very transparent policy in its employee recruitment system. For the job to be done it is of almost importance that the individual must be well-qualified and should possess the right skills or tools; and this is exactly what Kingfisher considers during its selection-process.

Training and development:

Kingfisher followed by detailed training and development programmer for their new recruits, they are familiar with the operating environment, and trained to provide the company wants and needs. Employees are trained in their specific areas such as company decides the tasks to be performed by workers.

Division of labor:

Kingfisher goes a well – Structured Hierarchy of authority to cause minimum fuss management. Work here is evenly divided between management and Employees, as each is given work appropriate to them. “In Kingfisher, no particular section is to Burdened with excessive work, in a proper division of labor.

Standardization:

A specific pattern is set for the work to be carried out at Kingfisher and everyone is well-aware of their duties and responsibilities. Before starting any job, our company first decides the way to carry out that job, resulting in standardization.

Work place environment:

“Kingfisher competitive and creative attempt to exceed an employee’s ability to protect them across borders and good spirit of cooperation between workers Companion spirit of fair play”, the company’s smooth operation and a healthy work environment.

IMPLEMENTATION OF BUREAUCRATIC MANAGEMENT:

Distribution of workload:

Our company, Kingfisher completely concurs with Max Weber when he describes distribution of work as one of the traits in bureaucracy. Here at Kingfisher, there is even division of workload and no extra stress in put on our employees.

How Do You Handle Long-Term Projects?

We break it down—delivering each part on time with consistent quality. From proposals to final drafts, we’re with you all the way.

Defined hierarchy:

Work done really effectively and professionally at Kingfisher as we followed a very well-defined hierarchy. Our institution is a full hierarchy of structure and, therefore, highly proficient

We Kingfisher fully working manners and ethics, which is vital for all organizations. Detailed rules and regulations are strictly according to our life and work is always done with established and appointed

.Impersonal relationship:

Abandoned in favor of strictly on our company as we believe that a person should hold office based on their work and not because of personal contacts or social status. Corruption is an aspect that can never be found in kingfisher. Due to the transparency of our company.

Formal authority:

The position that each and every employee holds is made clear in our company so that the manager can exercise his/her formal authority at the workplace.

Technical competence:

Only those who meet the conditions sufficient for the job is placed in the position of our company. The work-related concerns with other responsibilities and authority that does not interfere with the proper development to four companies. Thus, by applying the theory of manaeaucracy by Weber always, our organization has successfully achieved the maximum production employed and our employees, while maintaining good employee’s satisfaction corruption and favoritism are not really pleased

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IMPLEMENTATION OF ADMINSTRATIVE MANAGEMENT

Forecasting and planning:

Kingfisher has a team of dedicated professionals working on the future of our organization. We always plan ahead and predict any kind of obstacle or obstacles in our path and plan to remove them accordingly. Strategic planning is important.

Organization:

Our concept of organization is one of the most famous one, companies in the world. We are aware of the extensive development of our people, and service resources.

Co-ordination:

As our business is distributed in various regions, there is a high priority as well coordinated, and that’s exactly what we are trying to do with Kingfisher. Without proper coordination, the company has not reached the heights, where we are today. Teamwork is very bad

Commanding:

We are the king, who was scheduled to due to the different commands to be run smoothly and our work processes. It is responsible for as they get the job, which means that the body knows that these people.

Controlling:

For companies to motivate employees and their location to their needs. They motivate employees to run the programmer. Employees or reward your efforts, simply ask them to achieve the objectives of the mission. To maximize the motivation of the staff and very useful discussion about incentive

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APPLICATION OF BEHAVIORAL VEOPOINT

Application of Hawthorne studies:

For companies to motivate employees, their needs for their position. They run employee motivation programmer. Employees to achieve the objectives of their duties or simply for your efforts rewarded well ask. To maximize employee motivation, the motivation of employees through a very useful discussion about following procedures and staff.

The company is Changing the pay rules so that the group was paid for overall group production, not individual production.

Providing food during the breaks.

shortening the day by 1 hour

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Application of human relation movement:

The company Kingfisher’s approaching each employee as a source of unique knowledge with something valuable to contribute to the company.

The company is taking care of employee’s needs to do the job in Mechatronics.

Communication of expectation of employees keeping the goal in mind.

Knowing their goals, their stressors, what excites them and how they each define success?

By providing good training.

The company takes feedback of employees.

Providing Reward and recognizing employees in ways that are meaningful to them

Keeping success story alive

Being consistent in every work which is related with employees.

Application of behavioral science approach:

Job rotation:

Cross training staff, teaching staff or each other’s work. Expand your knowledge and ability to work Expansion of jobs in Mechatronics: employees are given a wider breadth of tasks and responsibilities within our jobber close to work and increase the depth of the responsibilities of employees.

Organizational Behavior: This is my understanding of organizational behavior is the way people communicate he work environment.  Through the study of organizational behavior,we can know each other better and in ways to cooperate.

 Kingfisher depends on the individual services, as well as the organization’s management. Therefore, it can help understand the individual’s quality of work. I found my organization Kingfisher all these things. Contribute a better translation

Marketing and Consumer Behavior: Kingfisher marketing attempt to influence this process with examples of marketing when consumers evaluate a brand they are trying to get an overview of installation services allows the consumer to decide whether to think about it. Some brands of evaluation criteria may include price, brand, flavor, functional features, style, and sometimes the way consumers “feel” of an enterprise of an organization of their choice.

Resolving Conflicts: The case is structured so that you understand why and how the kingfisher was constantly harassed by HR problems. We should be able to see the pilots and other workers using arm tactics to get back to IA to accept all their demands. This case also provides insight into how his treatment IA HR issues in dreams have contributed to the overall mess that found themselves in kingfisher

Training: Generally the training in Kingfisher. Happens in these terms-

a) Managing Teams

b) Managing Emotions

c) Strategies for Peak Performance

d) Managerial Wisdom

e) Problems Solving & Decision Making

Application of Quantitative Management

Application of Management Science:

In the Kingfisher the management system is used by

Scheduling Kingfishers, both planes and crew,

Deciding the appropriate place to site new facilities such as a warehouse or factory,

Managing the flow of water from reservoirs,

Identifying possible future development paths for parts of the telecommunications industry,

Establishing the information needs and appropriate systems to supply them within the health service, and

Identifying and understanding the strategies adopted by companies for their information systems.

Application of operational management:

Operations management is an area of business concerned with the production of goods and services, and involves the responsibility of ensuring that business operations are efficient in terms of using as little resource as needed, and effective in terms of meeting customer requirements. It is concerned with managing the process that converts inputs Operations management focuses on carefully managing the processes to produce and distribute products and services.  great deal of focus is on efficiency and effectiveness of processes. Therefore, operations management often includes substantial measurement and analysis of internal processes. Ultimately, the nature of how operations management is carried out in an organization depends very much on the nature of products or services in the organization, for example, retail, manufacturing, wholesale, etc

Sections of This Topic Include:-

Procurement (Purchasing) Practices

This topic reviews guidelines for buying various materials from suppliers and vendors — materials, including computers, services from lawyers, insurance, etc

Management Control and Coordinating Function

Management control and coordination includes a broad range of activities to ensure that organizational goals are consistently being met in an effective and efficient fashion. 

Product and Service Management

As noted above, the major activities involved in product and service management are similar to those in operations management. However, operations management is focused on the operations of the entire organization, rather than managing a product or service.

Quality Management

Quality management is crucial to effective operations management, particularly continuous improvement. More recent advancements in quality, such as benchmarking and Total Quality Management, have resulted in advancements to operations management as well.

Logistics and Transportation Management

Logistics is focused on the flow of materials and goods from suppliers, through the organization and to the customers, with priority on efficiency and cost effectiveness

Facilities Management

Effective operations management depends a great deal on effective management of facilities, such as buildings, computer systems, signage, lighting, etc.

Configuration Management

It’s important to track the various versions of products and services. Consider the various versions of software that continually are produced, each with its own version number. Tracking these versions is configuration management.

Distribution Channels

The means of distribution depend very much on the nature of the product or service

Applications of management information system

The company is implementing Management Information Systems (MIS) is the term given to the discipline focused on the integration of computer systems with the aims and objectives on an organization

The development and management of information technology tools assists executives and the general workforce in performing any tasks related to the processing of information. MIS and business systems are especially useful in the collation of business data and the production of reports to be used as tools for decision making. Applications of MIS With computers being as ubiquitous as they are today, there’s hardly any large business that does not rely extensively on their IT systems

Strategy Support- While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making.

Data Processing- Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole.

Benefits of MIS- The field of MIS can deliver a great many benefits to enterprises in every industry. Expert organizations such as the Institute of MIS along with peer reviewed journals such as MIS Quarterly continue to find and report new ways to use MIS to achieve business object

Core Competencies- Every market leading enterprise will have at least one core competency – that is, a function they perform better than their competition.

Enhance Supply Chain Management- Improved reporting of business processes leads inevitably to a more streamlined production process. With better information on the production process comes the ability to improve the management of the supply chain, including everything from the sourcing of materials to the manufacturing and distribution of the finished product.

CONCLUSION

After completing my report on Aviation Industry take the example of Kingfisher World Corporation, a leader in the provision of flight simulators I found that all companies use the four-management laws, which I have discussed only three.

Kingfisher Systems, Incorporations designs and manufactures flight training devices and flight simulators. It offers pilot training tools for ground school, distance learning and flight training, Nova, a car park management system that provides access to information such as occupancy or the status of parked vehicles Valorous, a treatment for municipal and industrial sludge generated by wastewater treatment plants. The company serves aviation market, including commercial and general aviation. It serves customers in North and Latin America, Europe, Asia, Africa, Middle East and Oceania markets. Kingfisher Inc. was founded in 1953.

The company uses all managerial laws in accordance with their employees. The company has so many different flight simulators, so many different flight training equipment solutions for all types of flights, to customer support media centers, technical center, take it in progressive way.

                          Ultimately we learned after completing this project, it is easy to manage an organization, resources, if we know all about governance.

REFRENCES

Airline quality of Kingfisher http://www.airlinequality.com/Forum/kingfisher.htm , last accessed on 29, March 2010

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