Well Mr. Goyal lived up to the image he is carrying in the minds of many employees, especially ones who are with the organization since the beginning. I have seen this image, his aura amongst these people. On personal level, as an individual, I would buy his story only with a spoon of salt.
It is impossible to believe that such a major decision would have been taken without his knowledge, as he claimed during the press conference; And, he has all the reason to do a rethink on the ways his business is being run. May be he would like to review the decision making process or the effectiveness of his so-called trusted management team. In my view, he should review a few more issues.
- What is his role in running the business? And, who all are there in other roles?
- What is the capability of the management team? Is it agile enough to meet growing challenges of the business environment? Does his team have all characteristics of an effective and capable team? Is it really professional?
- Where is the corporate strategy of this company? If it is there, how come it was caught unaware and landed in this messy situation? I’m sure the company did not take this decision based on just a few days’ developments.
- Is he aware of his organization structure? How does it look like in terms of nos.? Is it a pyramid or an inverted pyramid? What is his cost-wise organization structure? Does it compare with any other organization anywhere?
- If the decision was just to go about retrenching trainees and probationers, how come his organization has more than 15% employees are in that grade? Doesn’t it indicate that his firm, particularly his strategy dept., was either oblivious of the emerging business environment? What could be the case, incompetency or complacency or just laxity?
- He may like to review some of the statistics published in news papers:
- App. 2000 employees, i.e. app. 17% of workforce, are paid more than Rs. 1 lac monthly. I assume, most of them would be pilots, engineers and experienced cabin crew members. If not, he may like to find out who they are?
- More than 200 employees, i.e. app. 2% of the workforce, are paid more than Rs. 10 Lacs monthly or more than US$ 22000 per month. What level would they be working at? He may wish to look at this no. too.
- He may like to look at the increase in the salary cost over the years and seek some justification in its variance.
- Recruitment of fresh foreign pilots is still going on?
Adverse business conditions, be it fuel price or infrastructure or anything else, would always be there. Challenges in different forms remain there in every business. A professional management is supposed to do precisely this function.
He was correct that he is no stranger to issues and he has handled all such issues decisively. I am sure Mr. Goyal knows what to do and how, in this scenario. And, also that he could do it in the best way.
His is, no doubt, a “rags to riches” story. It is to be seen if his too would end up as one who could not manage the growth and become example of why promoter should be different from manager case-study. One may argue that he is so but it needs to be adhered in strict sense. And, this lesson is required to be learnt by many in years to come.
Jet Airways has been the face of emerging and vibrant India. All wishes to it to keep flying high.