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1 Alitalia CAI Employee Satisfaction Survey Results Date:15 Aug 2011 Based on “The Boomerang Effect: Careless Downsizing and Survivors Mismanagement Keep.

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Presentation on theme: "1 Alitalia CAI Employee Satisfaction Survey Results Date:15 Aug 2011 Based on “The Boomerang Effect: Careless Downsizing and Survivors Mismanagement Keep."— Presentation transcript:

1 1 Alitalia CAI Employee Satisfaction Survey Results Date:15 Aug 2011 Based on “The Boomerang Effect: Careless Downsizing and Survivors Mismanagement Keep Alitalia Grounded” A Term Paper for the Degree of Master of Public Administration Bowie State University in cooperation with Italian Pilots Association

2 2 Theoretical Framework  Research on the effects of downsizing on financial performance shows negative results due to issues related to: the way downsizing is implemented, and survivors management. HR activities affect organizational performance (HR Outcomes: employee satisfaction, motivation, social climate between worker and management, employee trust/ commitment etc.) which in turn affects financial performance.  Literacy reviewed for this paper includes studies on:  Downsizing Implementation  Survivors Management  Impact of HR activities on HR outcomes and financial performance  Airline pilots job  Research Questions: Was Alitalia downsizing implemented effectively? Has the new management way of leading and managing change influenced the airline performance?  Sampling Method: Non-probability sampling

3 3 Sample Population Selection Alitalia CAI Survivor pilots were selected as the sample population. Why pilots? –Pilots play a central role in airline operations –Airline pilots job peculiarities –Pilots management has safety implications(1) –Successful airlines manage their aircrews effectively

4 4 Sample Population Description A total of 76 valid questionnaires were received. The majority of pilots who replied were between 40 and 50 years old and have 8-25 years seniority with the airline. EXPERIENCE 50% = Captains 7500-15.000+ hours 38% = First Officers 4500-13000 hours 12% = did not provide this information 38%= prior military experience. Only 10% have been relocated after downsizing. As far as their family status is concerned, the great majority are married or co-habiting. Most of their wives/partners are employed (70%), either fulltime or part-time (only 20% of them are airline employees), while a small percentage (30%) are housewives. Of all married or co-habiting pilots, half of them are fathers of one or more children.

5 5 Survey Themes Downsizing Implementation –Perception of Process –Emotional & Physical Reactions –Impact on Commitment Employees/Unions Management Relations Leadership Communication of Goals & Strategies Work Environment

6 6 Change Management at Alitalia The “lost” pride: 91% to 18% (2)









15 15 Notes (Results & Analysis) 1.An airline pilot primary task is “to fly the aircraft under his command from the departure airport to destination safely”. Factors affecting a pilot’s ability to perform his primary task, the quality of pilots employed, the commitment of pilots to exercise “good airmanship”, the active support received by airline management to operate their aircraft in a professional (safe) manner (i.e. aircrew training, safe operating procedures, and pilots’ operational decision making process) but most of all that pilots are able to exercise their professional skills free of commercial pressure (Paterson, 2008) 2.Alitalia CAI maintained the old Alitalia LAI logo, uniforms, and symbols, so this result may look worse if one consider that current employees sense of attachment may stem from the airline’s glorious past rather than its present identity. 3.A recently published wikileaks cable from Ambassador Spogli, US Ambassador for Italy back in 2008, confirms pilots perceptions about their airline privatization process. Ambassador Spogli states: “The Alitalia saga is a sad reminder of how things work in Italy and of PM Berlusconi's rather weak adherence to some of the core principles of free- market capitalism. Berlusconi had the chance to let this be handled as a business matter, but he chose to politicize it. Under the guise of a rather quaint (and distinctly un-EU) desire to maintain the Italian-ness of the company, a group of wealthy Berlusconi cronies was enticed into taking over the healthy portions of Alitalia, leaving its debts to the Italian taxpayers. The rules of bankruptcy were changed in the middle of the game to meet the government's needs. Berlusconi pulled this one off, but his involvement probably cost the Italian taxpayers a lot of money. The way in which this deal was done -- cronies, political interference, preference for Italian buyers, custom-made laws -- provided the world with a clear reminder of Italy's investment climate shortcomings”. ( 4.Government designed social measures to protect laid off employees did not take into account pilots peculiarities. Thus those measures only delayed laid off pilots “professional death” and inability to sustain their families. These shortcomings certainly have affected survivor pilots feelings of guilt, morale and motivation. 5.Mr Yap Kim Wah, Vice President of Singapore Airline, of one of the world leading airlines, lists among the most important factors contributing to his airline success his people: “We have talented and good people, good industrial relations, good HR management, and we look after our staff well” (Wirtz & Johnston, 2001). The books “Up In The Air: How Airlines Can Improve Performance by Engaging Their Employees” and “The Southwest Airlines Way : Using the Power of Relationships to Achieve High Performance” explain how employees, if properly managed, can make the difference, in terms of firms financial performance (Gittel, 2003, 2009) 6.During the emergency in Japan last March, aircrews Unions had to intervene several times to ask Alitalia CAI Management to implement measures to protect its pilots and flight assistants from radiation exposure. 7.The effects on morale and motivation of the unprecedented denigration media campaign against pilots and flight assistants, Union busting, and the merger with the private airline AirOne, have not been considered for this study.

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