Change Management in Civil Aviation: A Case Study of Airports Authority of India

CHANGE MANAGEMENT IN CIVIL AVIATION
A CASE STUDY OF AIRPORTS AUTHORITY OF INDIA
ABSTRACT OF THESIS
SUBMITTED FOR AWARD OF DEGREE OF
DOCTORATE
IN
BUSINESS ADMINISTRATION
BY
B. P. SHARMA
UNDER THE GUIDANCE OF
Dr. A. M. SHAH Dr. S. M. OZAIR

PROFESSOR PROFESSOR
DEPARTMENT OF MANAGEMENT FACULTY OF MANAGEMENT
STUDIES STUDIES AND RESEARCH
UNIVERSITY OF KASHMIR ALIGARH MUSLIM UNIVERSITY
SRINAGAR (J&K) ALIGARH (UP)
(EXTERNAL SUPERVISOR) fINTERNAL SUPERVISOR!
DEPARTMENT OF BUSINESS ADMINISTRATION

ALIGARH MUSLIM UNIVERSITY
^(|j V ALIGARH-202002 (INDIA)
< > ^ 2004

(ABSTRACT OF THESIS)
INTRODUCTION;
Today all organizations are facing a world of constant change in

every aspect of its operations whether in production or service sector.
Several factors both external and internal act as triggers or drivers of
change in organizations. Management guru Durcker in his recent article
in Harvard Business Review has compared the magnitude of the current
change with the Industrial Revolution around year 1800. He argued that
the organizations that are able to understand the phenomenon of
changing environment and rapidly adapt to 'change' will only be able to
survive and thrive organizational need to proactively initiate changes in
different dimensions of business life, business strategy, organizational
structure, culture, product/service, human resource and technology.
The winds of 'change' that swept organizations across the world

reached the Indian subcontinent in 1991 with government opening up
the Indian economy. While environment is changing speedily, there is
wide spread understanding in the corporate world as well as in the
academic circles that the rate at which change is occurring has
accelerated its significance and need of its successful mginagement in the
recent years. Some of the important factors that are enforcing change in
today's business environment include changing government policies,
customer's expectations, mergers, privatization, technological
developments, human dimensions, and global competition. Bruce 85
Biggart argued that most efforts by executives, managers and
administrators to significantly change the organization, they lead, do not
work and 75% of attempts to change organization by way of mergers,
acquisitions, restructuring, down sizing, privatization have failed. This is
mainly because of either unplanned change initiatives or improper
management of change. Therefore, to succeed especially for the long
term, the organizations need to plan change and adapt systematic
approach to first diagnose, and then implement and manage change.
This research study seeks to overcome these limitations and explore the
integration of organization environment both internal and external and
individual preferences for more successful initiatives and management of
change in civil aviation, particularly in Airports Authority of India.
RATIONALE OF THE STUDY:
Given the imperatives of change, the process of managing change

has been attracting the attention of researchers and practitioners alike.
Many researchers have noted that conceptual development in the area of
strategic and organizational change is still in a preliminary state and how
to manage complex organizational change remains relatively obscure.
Porras and Robertson, in an extensive review and critique of
organizational change, concluded that the existing research and theory
are inadequate and that it does not provide the rich concepts need to
understand and guide complex organizational change processes. While
scanning the related literature on change management, it is observed
that this vital area of research has remained, by and large, neglected
from the researcher's attention in India.
Airports Authority of India, the mainstay of civil aviation in India,

is responsible for developing, managing and operating of the 126 civil
airports and air traffic services in the country. The organization is facing
severe challenges triggered by external and internal elements of change
in organizational environment and is in process of managing of these
challenges of change, thereby validating the need and appropriateness of
our proposed study. The study is expected to provide better
understanding of change management practices for civil aviation,
particularly at AAl and will also fill the gap in this area of research.
In dealing with various issues of change management, this
research work has been divided in seven chapters, each of which focuses
on a specific set of related aspects. All the chapters begin with a concise
overview of the main issues and to discuss them in the chapter
concerned.
Chapter 1 - "Introduction to change Management" highlights the

essence of change management. It also covers theoretical perspectives of
change and the concepts addressing various aspects of change
management. The rationale of the study followed by the objectives,
hypothesis and limitation of the study.
Chapter 2 - "Historical Perspectives and need for Change in Civil

Aviation" besides discussing historical perspectives of civil aviation, the
chapter covers trends and challenges faced by civil aviation globally and
more particularly in Airports Authority of India. The chapter focuses on
various aspects of organizational performance in respect of organizations
of civil aviation of India and also discusses the need for change.
Chapter 3 - "Review of Literature"- provides an in depth review of

literature on change management. The coverage includes research works
providing individual, group and organizational perspectives of change
besides reviewing of various models of organizational change. The
chapter also reviews the limitation of the prior research works in the field
of change management.
Chapter 4 - "Research Methodology"- discusses the sample design,

techniques of data collection, measures used in the study and methods
of data analysis besides providing statistical treatment of the data. The
chapter also provides insight of techniques used in formulation of
questionnaire and selection of sample design.
Chapter 5 - "Change Management in Civil Aviation"- provides detailed
coverage of results and discussion of the research findings in respect of
various dimensions of organizational change and organizational
environment. The chapter also provides the discussion on respective
hypothesis laid for verification in the research study.
Chapter 6 - "Change Management and Organizational Effectiveness"

provides results and discussion on the co-relation of various change
elements and their effects on organizational effectiveness and evaluates
its impact. The chapter also reviews the respective hypothesis laid down
for verification in the study.
Chapter 7 - "Summary of Findings, Conclusions and Suggestions"

portrays the summary of findings and conclusions of the study. It also
provides valuable suggestions for improving the organizational
effectiveness besides suggesting the need and areas of change required
by the sampled organization, under study. The references and tables are
also annexed in the last pages of the study.
OBJECTIVES & HYPOTHESIS OF THE STUDY:
The study has been undertaken with the following specific

objectives in view:
1. to study the change management in civil aviation and reasons for

failure of some well conceived and well planned change
interventions;
2. to analyze the prevailing change management practices in Airports

Authority of India;
3. to examine different dimensions of change and employees

cognition for need for change and attitude towards change in
Airports Authority of India;
4. to analyze various change elements and their impact on the
organizational effectiveness and performance; and
5 to suggest appropriate change management strategies for

improving organizational effectiveness of the sample organization.
In consonance with the aforesaid objectives, the following

hypotheses have been laid down for verification and confirmation:
1. the change management practices adopted by Airports Authority of

India have not resulted in development of world class airports.
2. there is a significant difference in the perception of employees

across demographic variable about element of change and
organizational factors.
3. there is a significant positive co-relation between elements of

change and the components of organizational effectiveness.
HISTORICAL PERSPECTIVE &. NEED FOR CHANGE IN CIVIL AVIATION:
The significance of various change factors challenging the civil

aviation and the trends and issues in the realm of change management
are reviewed and discussed in the study for better understanding of
various change perspectives. A historical perspective of organizational
change in civil aviation at global and national level, particularly at
Airports Authority of India is reviewed to understand the need for
change, attitude towards change and areas of change in the organization.
While growth in air traffic has historically been greater than growth
in the economy, the growth in commercial air services has continued to
outstrip the available capacity at more and more airports. Governments,
airlines and airport managements have been trying to meet the
challenges and develop measures to overcome or ameliorate situations
created due change such as external/internal environment, airport
economics, capacity constraints, customer expectations, technology
transformations, liberalization, privatization and globalization.
Trends of Change in Civil Aviation:
The trends towards government establishing autonomous

authorities or full/partially privatizing airports a n d / o r airlines are
continuing, with increased attention to more active private involvement
in airports and airlines management. During the last two-and-a-half
decades, worldwide, the air transport industry witnessed three major
transformations. First, the industry substantially moved away from
government control and ownership towards deregulation and private
ownership. The second transformation change, also subsumed another
trend of privatization of flag carriers, and the third transformational
change pertains to privatization of airports for example in Europe,
Australia, USA and now in Asia.
During the late 1980's the aviation world was swept in the rush
towards mergers, privatization and denationalization, as organisations in
many developed countries such as; British Airports Authority in UK,
Airport Management Services and Airport Development Corporation in
Mauritius etc were transformed. Some of the cases of organisational
major changes around the world are discussed as below to understand
the global view:
Britain: The best known major change in the airport management to

date is undoubtedly the British government 1987 conversion of the
British Airports Authority into a private company, BAA Pic. Initially all
stock was owned by the British government, but in the 1987 the
company was floated by a public stock offering on the London Stock
Exchange. The company owns and operates the three large Lxjndon
airports (Heathrow, Gatwick and Stansfed) and the four main Scottish
airports (Aberdeem, Edinburgh, Glasgow, and prestwick).
Denmark: The Danish government, during 1991, h a s planned sell of

Copenhagen's Kastrup airport offering 25 percentage of shares to the
6
public and other financial institutions. The trends continued and some
the airport are presently managed by private companies.
Belgium: The Belgium government has partially privatized the

Brussels airport during 1992, by setting up the Brussels airport terminal
company (BATC) offering 52 percent shares to the private investors,
mostly banks, and keeping 48 percent with government/airways agency.
New Zealand: The New Zealand government has partially privatized

its three international airports at Auckland, Christchurch and
Wilmington during 1992, by creating corporations to manage and operate
airports. The government is further planning to sell out more airports.
Australia: The government of Australia sold some of its airports namely,

Melbourne, Brisbane and Perth during 1996. The government has also
plans for selling of other airports to the private managed companies.
Mauritius: The government has restructured its department of civil

aviation during 1997 and has created two private companies to develop
and manage its airports. The government and financial institutions hold
the majorit}^ of shares.
The trends of privatization/ corporitazation/ denationalization of

airports and airlines continue in other countries also such as France,
Germany, Jamaica, Malaysia, and South Africa etc. India is also in the
process of privatization of some of its international airports. The
privatization of government owned airports and airlines has been one of
the pre-eminent phenomena through out the world during last two
decades. Since 1987, about 130 governments have announced
privatization or modernization plans involving approximately 180
organizations. The trend towards partial or full privatization of
government-owned airports continued. Government of India has also
started the process of privatization for its The national airlines have
reported losses of about $3500mn during 2002-2003. airports and the
change process for Delhi and Mumbai airports in already in an advance
stage.
7
Challenges to Civil Aviation in India:
The aviation sector in India is passing through the crises. The

international Airport like Mumbai and Delhi are ranked at 80^ and 109^
respectively. The national airlines have reported losses of about
$3500mn during 2002-2003. The Airlines and airport infrastructure
needs turnaround development to meet the challenges. All three public
sectors are over employed in comparison to statistics of well performing
organizations around the world in the same sector. The average age fleet
of Air India and Indian Airlines is about 17 years against 6-7 years
internationally. The public sector ownership of these organizations,
entailing multiple layers of extra commercial accountability and
cumbersome procedures, non-commercial orientation, inability- to expand
in competitive market, inflexible labour policies, are proving to be
ineffective in the present competitive and globalize environment. Given
the country size and growing needs, a vibrant civil aviation sector is
essential for country's economy and civil aviation growth in India.
The organizations are experiencing serious challenges triggered

due to changing government policies, deregulation, liberalization,
technological developments and global competitiveness. The sector is
passing through a transition phase as never before in its last five
decades. Experts argue that managing the sector in present manner is
untenable and incongruent with government's avowed objectives of
making air transport more affordable, enhancing regional air
connectivity, providing boost to tourism and developing world class
airports. The striking aspect of contemporary air transport airport
management is that the industry, which was for so long operated on
highly regulated bases, is now effectively being taken over by the impacts
of the customers and need to perform.
Recently, the Ministry of Civil Aviation has appointed a committee

to prepare a road map for civil aviation sector to meet the challenges
triggered due to global competition, economic growth, technological
development and diminishing performance of public sector organizations
i.e. Air India, Indian Airlines and Airports Authority of India. The relevant
aspects of consideration are:
(i) Restructuring of airport with a view to develop world class
airports;
(ii) Privation of Air India and Indian Airlines;
(iii) Promotion of general civil aviation;
(iv) Regulatory mechanism for technical and financial issues;
(v) Development of regional air connectivity within country;
(vi) Making air travel affordable, competitive and
commercially variation;
(vii) Aviation security and safety;
(viii) Liberalization of international air transport segment;
(ix)Improving of organizational effectiveness and service

performance;
NEED FOR CHANGE AT AAI:
The organizational factors and various dimensions of change are

reviewed in context with the present research study to understand the
trends and identify the need for change and areas of change in AAI.
• Emphasis on Organization Mission and Vision policy.
• Improvement in Management practices, work culture and structure.
• Development of human resource and Customer focus.
• Improvement in existing airport infrastructure and development of

new world class airports.
• Improvement in customer orientation policies and practices.

9
• Commercialization of non-aeronautical revenue resources and
optiraiizing of overall profit and organizational effectiveness.
• Efficient and optimum capacity utilization of airport capacities.
REVIEW OF LITERATURE:
While organisations today are facing a world of constant change,
the subject has been attracting the attention of managers and
researchers alike. Besides explaining the nature and dimensions of
change the recent work on organisational change focused on the process
of managing change implementation. An attempt is made to present v/ide
review of literature in the area of change management, organizational
effectiveness and management of change in the study.
Besides, throwing light on the evolution of the change

management, the chapter covers some most promulgated research works
available in the extant literature. The limitations of the prior research are
also explained to highlight the need of the present study. The available
studies on research have been reviewed under the rubric of
organizational change, management of change and organizational
effectiveness.
RESEARCH METHODOLOGY:
The research methodology used in study is presented under the

dimensions of sample design, data collection, survey instruments and
the patterns of analysis.
Scimple design consisted of executives from senior management,

middle management and first management level and had represented
vide spectrum of organization involving corporate head quarter, regional
headquarters, international and domestic airports. The questionnaire
was sent to 220 sample respondents. The response was good as 153
respondents i.e. 70 % responded positively. A bird's eye view of the
sample distribution is presented in table below.
10
SAMPLE REPRESENTATION
AGE WISE (AGE) REPRESENTATION (N= 153)
S. No. Age Group Frequency Percent

1 40 Yrs and below 69 51.10
2 41 Yrs to 50 Yrs 60 39.22
3 51 Yrs a n d above 24 15.68
4 Total Sample Response 153 100.00
MANAGEMENT LEVEL (LEV) REPRESENTATION (N=153)
S. No. Management Cadre Frequency Percentage

1 First Level Management 39 25.49
2 Middle Level Management 84 54.90
3 Senior Level Management 30 19.61
EDUCATION WISE (EDU) REPRESENTATION (N=153)
S. No. Type of Education Frequency Percent

1 G r a d u a t e / P o s t Graduate 39 25.49
2 Engineering Diploma/Degree 75 49.02
3 Management Diploma/Degree 39 25.49
DEPARTMENT UNIT (DPT) WISE REPRESENTATION (N= 153)

S. No. Name of Department Frequency Percent
1 Operation/ Communication Department 93 60.78
2 Engineering Department 48 31.37
3 General Administration Department 12 7.85
LENGTH OF SERVICE (EXP) WISE REPRESENTATION (N=153)
S. No. Length of Service Frequency Percent

1 10 Yrs a n d below 18 11.76
2 1 lYrs to 20 Yrs 69 45.10
3 20 Yrs a n d Above 66 43.14
11
Data processing and analysis: The data collected through primar\-
and secondary sources has been tabulated and subjected to some
sophisticated process for analysis and interpretation in the study. The
analytical procedures were used to organize information that included
processing, coding, tabulation and analysis of data.
Statistical treatment of the data: The raw data was tabulated

and each variable studied. Besides the methods of interpretation and
comparison of average means and percentage mean scores, summar>"
statistics like raean averages, analysis of variables, f-test of significance,
coefficient of co-relations have been used to study the association
between perception of respondents pertaining to organisational
management, organisational environment, organisational performance
and change. The computation of the raw data was organized in order to
its analytical and interpretive treatment and to carryout statistical
analysis viz, descriptive analysis; inferential analysis; correlation
analysis; and interpretation Analysis.
SUMMARY OF FINDINGS AND CONCLUSIONS:
Against the backdrop of results discussed in chapter five and six of

the study brings to light that organizational change has established its
relevance management of change in civil aviation. There is leading need
to understand and treat the aspects of organizational change and its
management to maintain and improve organizational effectiveness and
individual/organizational performance. The results have revealed that
civil aviation as a whole and Airports Authority of India in particular is
severely influenced by elements of change and the organization is
perceived as in the need of transformational change besides improvement
and management of other factors affecting organizational performance.
Macro level investigation reveals that the organizational factors namely
customer satisfaction and development are perceived doing badly
whereas general management, human resources and financial
parameters are perceived as satisfactory. The study results conclude that
present change management practices have not been able to either
12
improve the conditions of airports to world class standards nor the
performance of organization to its expected level. All the three hypotheses
laid for test in study have been proved. The results of overall perceptions
review is presented as below:
Overall Perception of Respondents towards Organisation
S.No. Variables Mean Std. Dev. % Mean Score
I GENERAL MANAGEMENT
1. Management 2.34 0.78 40.80

2. H u m a n Resource 2.28 0.52 45.60
3. Finance Resource 2.30 0.63 46.00
4. Customer Focus 2.60 0.77 52.40
5. Development 3.20 0.83 64.00
n ORGANISATIONAL ENVIRONMENT
6. External environment 2.49 0.42 49.00
7. Mission/ strategy 3.09 0.45 61.80
8. Leadership 2.63 0.55 51.20
9. Work culture 3.49 0.61 69.80
10. Management practice 3.59 0.77 71.80
11. Structure 3.88 0.64 77.60
12. Systems 2.21 0.53 44.20
13. Work group climate 2.25 0.64 45.00
14. J o b /skill match 2.11 0.77 42.00
15. Individual n e e d s / values 1.87 0.67 37.40
16. Motivation 2.04 0.74 40.80
17. Organisational performance 3.01 0.69 60.20
Ill CHANGE MANAGEMENT
18. Need for change 2.01 0.50 40.20
19. Areas of change 2.54 0.48 51.00
20. Attitude towards change 2.25 0.52 45.00
While studying the organizational management, organization

environment and dimensions of change for the sample organization, it
was found to be influenced by a number of factors and perceived to be
affecting the organizational performance and management of change. The
13
The statistical analysis within the frame work of the model (fig: 6.1)
reveals that employee responses in the categories of external
environment, mission and strategy, structure, systems, group climate,
individual job/skill abilities, individual needs/values and motivation
have the strong positive relations with perceived factors of organisational
effectiveness and overall performance. The external environment is
perceived as influencing the organisation (mean: 2.49). The perception of
the respondents towards mission and strategy (mean: 3.10), structure
(mean: 3.68) is uncertain and tends to disagree with the statements
thereby negatively affecting the factors of perceived organisational
effectiveness. In depth analysis indicates that the respondents feel that
the organization's mission is not communicated effectively and its
objectives are not understood well by all employees; the management
strategies adopted by senior executives are not visionary and mission
oriented; the organization does not have clearly defined vision-policy that
includes future objectives and business values; the organization policies
are influenced more by socio-political factors rather than its mission
objectives. Further, in case of structure the employees perceive that the
delegations of authority are not sufficiently de-centraUzed across
organization working level; the organizational structure at work unit
levels is not effective and does not provide expected results; the
managers do not have flexibility in their work and decision making.
The results analysis reveals that the respondent's perception

towards systems (mean: 2.22), task performance and individual job skill/
performance (mean: 2.11), motivation (mean: 2.04) and individual need 85
values (mean: 1.87) tends to agree to statements indicating positive affect
on perceived organisational performance. Strengthening and further
improving of these components are cdso likely to improve organisational
effectiveness since these categories are also perceived strongly and
positively related with factors of organisational performance and change.
15
Therefore, it could be concluded that the organization need an
effective mechanism of change management to better the overall
performance and effectiveness of the organizational. It is evident from the
findings of these figure's analysis that most of the categories scoring low-
average means pertains to transformational factors zone and some of
them are positively co-related with organization performance. This leads
us to conclude that sampled organization requires transformational
change rather than transactional change. The figure 2 & 3 portrays the
transformational and transactional factors of change. There are sound
reasons to believe that the organizational effectiveness of the Airports
Authority of India will significantly improve if the issues and problem
areas highlighted in this study are properly addressed and an action plan
IS devised for management of change and improving the effectiveness of
the organization.
External
environment
2 49
Fig. 2: Structured Analysis of Transformational Factors of Change in AAI.
16
s. STATEMENT RESPONSE
JVo.
1 2 3 4 5
9 The management style adopted by
senior officers is helpful in
accomplishing defined tasks and is
mission oriented.
10 The organization has fine traditions of
public/customer service in the
aviation industry.
11 The managers and employees are
committed to their work and customer
care/service.
12 The people of various departments
have harmony and work together to
achieve good performance.
13 The managers often adopt innovative
work techniques and practice open-
system of functioning.
14 The management makes constant
efforts for ways of improving of the
working and organizational
performance.
15 The management promotes
challenging and creative environment
and encourages innovation.
16 The delegations of authority are
sufficiently de-centralized across
organization working structure.
17 The organizational structure at work
unit levels is effective and provides
expected results.
18 The managers have flexibility in their
work and decision making.
19 The work procedures and
responsibilities are well defined and
documented in this organization.
20 The control mechanism 86 information
systems of the organization are
effective and result oriented.
21 The organization set realistic plans
and reviews performance against set
standards.
22 The organizational inter-department
units are efficient and always achieve
defined targets.
209
further improvement initiatives in deficient areas identified in such
evaluation for 2004 and so on as portrayed for 2003 in table below.
Table: Perceived Organizational Performance a n d C h a n g e a t AAI
GENERAL MANAGEMENT:
1. 2003 ^ > "' ••: '' ' " 2.34
Management
2004
2. 2003 -• ' '-I ''•" •.- 2.28
Human Resource
2004
2003 ! "'.4 •' ." 2.30
3. Finance Resource
2004
2003 C^"" •--'•':*'^" ^-y-rf-'''^' 2.60
4. Customer Focus
2004
2003 f *. •- -"* ^' ,-. -A 3.20
5. Development
2004
Lil<ert Scale Measuring Piirameters 1 2 3 4 5
ORCiÂNISATIONAL ENVGRONMENT :
External 2003 - 2.49
1.
environment 2004
2003 1 J- ' ^ • * * X •^'•t- **• -~'''/S •'si^'^ •**-^ " 3.09
2. Mission/ strategy
2004
2003 •-'"' , - - \ * ^ -"-"• ' 2.63
3. Leadership
2004
2003 '-• " 1 '" " '' " . 3.49
4. Work culture
2004
Management 2003 ' ^:-'>...__ . * _ '.-- * t l _ -%• 3_59
5.
practice 2004
2003
6. Structure
2004
2003 2.11
7. Systems
2004
2003 '.'•'i-! '^' ' ,^ - -'-"1 \ , . 2.25
8. Work group climate
200-1
2003 -.i -p f '- -4'-. '-i-^'*:rv " ^ 2.11
9. Job / skill match
2004
Individual needs/ 2003 1.87
10.
values 2004
11. Motivation
2003 %^s S4-;4fis:\^fi-" 2.04
2004
Organisational 2003 ^ ^ .^ " 4^"*" ' t * , ^^ * -,"-- ^ * ^ 1 ^ J 3.01
12.
performance 2004
Likert Scale Measuring Parameters 1 21 3 4 5
18
Optimizing Organizational Effectiveness:
It is suggested to implement effective and properly planned change

initiatives to improve these areas besides improvement in airport
infrastructure to optimize organizational effectiveness. Customer
satisfaction is found to be positively co-related with the element of
change like external environment, group climate, motivation and culture
and therefore should be provided extra attention to improve these
categories to better the organizational effectiveness. Human resources
development measures as suggested in succeeding paragraphs, shall
further improve customer satisfaction. The study results also suggest
that improved budget planning and monitoring system would further
improve organizational performance.
Maximizing Profit and Minimizing Expenditure:
The financial performance of the sample organization though has

been predicted satisfactory but as revealed from study results there
appears noticeable decrease in profit during last year due to out of
proportion increase in expenditure. The following measures are
suggested to maximize organization profit and minimize expenditure:
a) Optimization of revenues from aeronautical charges through

negotiation with lATA and other associated agencies;
b) Implementation of revolutionary measures towards raising non-

aeronautical revenues by creation of non-aeronautical activities
such as shopping malls, re-creation clubs, advertising, effective
use of land, and grant of management contracts to have less
infrastructure and human resources burden on the organization;
19
c) Optimization and rationalization of various airport charges like
rentals, service fee, fuel through put charges, passenger fee,
security charges and facility charges etc ;
d) Creating more opportunities in diversified airport business such

as, cargo facilities, ground handling services etc ; and
e) Implementation of value engineering techniques in maximizing

economy in expenditures, optimal use of manpower, elimination of
duplications, contracting-out of services etc and letting out the loss
making airports (constructed or/and managed as socio-political
compulsions) to state governments or getting compensated for
capital and operational cost of such airport from state or central
government.
Improvement to Airport Infrastructure Development:
There are 126 airports in the country, which are managed by the
sample organization. The fact remains that all the airports could not and
need not to be developed to the standards of world class airports
considering the financial, functional and operational complexities
involved in the system. Therefore, it is suggested that the airports
should be identified and classified in respect of their importance and
operational use as International Hub (IH) airports. Regional Hub (RH)
airports, and other small domestic airports. Once identified, development
of international hub airports should be given priority to develop them to
world-class airports with good connectivity to regional h u b airports and
other domestic airports. While planning and developing the
infrastructure of international airports, ICAO standards and
recommended practices, world-class architect, quality work agencies,
state-of-art airport management system should be deployed. It is
suggested that airport specific development plans should be initiated,
based on the identified deficient categories, and executed accordingly.
20
The study results also reveal that there are many airports (Annex table:
8.4) in India which are under utilized and therefore require proper study
before taking up development of such airports and further creation of
new airports in the country.
Human Resources Development:
The sample organization is service sector organization and has

employed plentiful human resources. The terminal management,
customer care, airport security, navigation 8s communication, fire
preventive are some of the critical areas which are human resource
based and have significant impact on organizational performance and
change, especially in the era of fast changing environment and customer
oriented civil aviation. The study also reveals that the change
management practices adopted by the sample organization in the last
decade have not resulted in expected improvement in organizational
effectiveness and customer satisfaction. Besides, lack of proper airport
infrastructure and quality services, employee's attitude towards
customer care is perceived as negatively affecting organizational
performance. It is suggested that human resources should be trained by
professional institutions like IITs and IIMs besides regular internal
training to improve their capabilities in customer orientation and
resourceful management. There is a need to develop professionalism in
airport management and therefore, it is suggested to develop separate
manpower/department for airport management and a database
maintained for the manpower. The training and development of airport
management staff should be need based with exposure to latest and
modern management practices in civil aviation world.
Private Participation in Airports Development:
The study reveals that complete privatization of the airports is not

the favored solution for improvement of the airport infrastructure and
21
better management of the airports. Therefore, it is suggested tha:
improvement of existing airports should be planned considering the
option such as floating of public bonds, shares, introducing of
management contracts from reputed firms and the creation/developing
of new airports should be on the bases of built on transfer (BOT), built on
leased transfer (BOLT), joint ventures, and private participation. Study
reveals that the factors of organizational effectiveness namely,
infrastructure development and customer satisfaction have scored low-
average ratings and therefore must be improved to attain overall
improvement in organizational performance. It is suggested that, besides
private participation in developing airport infrastructure, the upkeep of
airport terminals, cargo facilities and other similar services should be
managed through private management contracts as done in most of best
managed airports in some of Asian and European countries.
Role of Central and State Governments:
The study reveals that the sample organization is affected by the

socio-political influences rather than by its mission and objectives. It
indicates that there is considerable political influence in management
policies for development of non-viable airports in the country, which
negatively affect the organizational performance and growth. It is
revealed from the secondary data that 70-80% of the airports in the
country do not have sufficient traffic and many of them have been
constructed due socio-political compulsions. Such airports are
contributing heavy loss to the organization. It is suggested that these
airports, which are constructed or forced managed due to socio-political
compulsion, should be handed over either to respective state
governments or suitably grant-in-aid to AAI to cover-up both initial
capital as well as operational cost. Further, it is imperative to
concentrate on policy regulation, airport security and environment,
which requires the government attention in developing long term and
22
airport friendly poLcies to facilitate better, systematic and futuristic
airport growth in the country. There are many airports where
development and operational safety are affected due poor surrounding
environment and need state government intervention and clearly stated
policy on maintenance and unruly growth of the areas in near vicinity of
airports. It is suggested that the local airport administration should have
appropriate representation in municipal or/and city organizations
responsible for managing and developing of surrounded areas of airports.
State governments should ensure that municipality and city master
plans should take care of future airport growth and its associated
infrastructure to make airport more viable and people friendly.
SCOPE FOR FUTURE RESEARCH:
The study findings suggest that there are some serious managerial
implications in terms of their effective choice of strategies and their
effective implementation. These findings warrant further in-depth studies
to investigate the subject of management of change and development of
airports. Further, research may be conducted:
1. to provide a holistic view considering other organization in civil

aviation in India and outside country. It may bring out different
aspects pertaining to the locations, organization environment and
society culture in other organization or country.
2. to include the workers and customers as part of the sample,

besides managers as that would provide a better and broader
picture of the organization.
3. to study the concept of change management from the point of view

of nation's multi-culture society and be compared with
organizations of the region/world of similar or different culture to
fmd out impact and relationship associated with different cultures.
23
4. to study the effect of change management on the organizational
effectiveness with special emiphasis on change in external
environment, such as change in national political system, change
in economic liberalization policies, de-regulation of laws,
organizational mergers, privatization and technological
transformations.
********
24
'•-/v;x
H-- ^<nso
iiiii
r658U
THESIS
SUBMITTED FOR AWARD OF DEGREE OF
DOCTORATE
IN
BUSINESS ADMINISTRATION
BY
B. P. SHARMA
UNDER THE GUIDANCE OF
Dr. A. M. SHAH Dr. S. M. OZAIR

PROFESSOR PROFESSOR
DEPARTMENT OF MANAGEMENT FACULTY OF MANAGEMENT
STUDIES STUDIES AND RESEARCH
UNIVERSITY OF KASHMIR ALIGARH MUSLIM UNIVERSITY
ALIGARH (UP)
SRINAGAR (J&K)
(INTERNAL SUPERVISOR)
(EXTERNAL SUPERVISOR)

ALIGARH-202002 (INDIA)
2004
FACULTY OF MANAGEMENT STUDIES AND RESEARCH
ALIGARH - 2 0 2 0 0 2 (INDIA)
DECLARATION
I do hereby declare that the thesis entitled "Change Management

in Civil Aviation: A Case Study of Airports Authority of India"
submitted to the Aligarh Muslim University for the award of degree of
"Doctorate in Business Administration" is the record of original
research work done by me during June, 2000 to May, 2004 under the
supervision and guidance of Prof. A. M. Shah (External Supervisor) and
Prof. S. M. Ozair (Internal Supervisor) and to the best of my knowledge
this research work has not previously formed the basis for the award of
any Degree or Diploma to any candidate of any university.
Place: New Delhi

Ali
(B. P. SHARMA)
Date: lO^h June, 2004 RESEARCHER
DEPARTMENT OK MANAGEMENT STUDIES
THE UNIVERSITY OF KASHMIR
HAZRATBAL SfllNAGAR, KASHMJR-ig0006 (INDIA)
I'hone 0194 2422554,
ftsrnof"^
Pnone 0194.2420405. 242Q07S Ext. 2091, 2096
Fax : 0194-2420929
CERTIFICATE
This is to certify that the thesis entitled "Change Management in

Civil Aviation: A case Study of Airports Authority of India" submitted
to the Aligarh Muslim University for the award of the degree of
research work done by Mr. B. P. Sharma during the period of his study
under my supervision and guidance. It is also certified that this research
work has not been submitted in parts or in full to this or any other
university for award of any Degree or Diploma.
Date:/f/<ûne'2004 (PROF. A. M. SHAH)

Place: Srinagar FACULTY OF MANAGEMENT STUDIES
UNIVERSITY OF KASHMIR, SRINAGAR
(External Supervisor)
FACULTY OF MANAGEMENT STUDIES AND RESEARCH
ALIGARH - 202002 (INDIA)
CERTIFICATE
This is to certify that the thesis entitled "Change Management in

Civil Aviation: A case Study of Airports Authority of India" submitted
to the Aligarh Muslim University for the award of the degree of
research work done by Mr. B. P. Sharma during the period of his study
under my supervision and guidance. It is also certified that this research
work has not been submitted in parts or in full to this or any other
university for award of any Degree or Diploma.
D a t e : ( / ^ u n e '2004 (PROF. S. M. OZAIR)

Place: Aligarh FACULTY OF MANAGEMENT
STUDIES AND RESEARCH
ALIGARH MUSLIM UNIVERSITY ALIGARH
(Internal Supervisor)
CONTENTS
Preface vii - ix
Acknowledgment x - xi
List of Tables xii - xiii
List of Figures xiv
Chapters
1.0 Introduction to Change Management 15-48
1.1 Introduction 16
1.2 Perspectives of Change 19
1.3 Management of Change 26
1.4 Organizational Effectiveness and Change 36
1.5 Rationale of the Study 43
1.6 Objectives and Hypotheses of the study 45
1.7 Limitations of the study 46
1.8 Chapter plan 47
2.0 Historical Perspectives and 49 - 75

Need for Change in Civil Aviation
2.1 Introduction 50
2.2 Civil Aviation - A Global Perspective 51
2.3 Trends of Change in the Civil Aviation 52
2.4 Civil Aviation - An Indian Perspective 60
2.5 Challenges of Civil Aviation in India 67
2.6 Need for Change 69
3.0 Review of Literature 76-96
3.1 Introduction 77
3.2 Organizational Change 77
3.3 Management of Change 82
3.4 Organizational Effectiveness 92
3.5 Limitations of the Prior Research Work 94
4.0 Research Methodology 97- 112
4.1 Introduction 98
4.2 Sample Design 99
4.3 Techniques of Data Collection 101
4.4 Measures used in Study 102
4.5 Data Processing and Analysis 109
4.6 Statistical Treatment of the Data 110
5.0 Change Management in Civil Aviation 113 - 147
5.1 Diagnosis of the Organization 114

5.2 Dimensions of Organizational Change 124
5.3 Change across Demographic Variables 126
5.4 Management of Change at Airports Authority 144
of India
6.0 Change Management and Organizational 148 - 160

Effectiveness
6.1 Dimensions of Organizational Effectiveness 149

6.2 Change Management and Organizational 156
Effectiveness at Airports Authority of India
7.0 Summary of Findings, Conclusions and 161 - 179
Suggestions
7.1 Findings and Conclusions 163

7.2 Suggestions for Improvement 172
7.3 Scope for the Future Research 180
Bibliography 1 8 1 - 200
Questionnaire 201 - 2 1 0
Annexes 211-225
^•kifkick
PREFACE
Organization changes all the time, each and every day. The
evidence of this change emerges around us in the forms of government
changing policies, new legislation, mergers, acquisitions, privatization,
opening new markets, nature of work, technology development, global
competitions, customer sophistication and new economy regime. Most of
traditional organizations have accepted that they must either change or
loose and that they need to learn to manage change successfully in this
rapid and complex changing organisational environment.
Experience shows that most efforts by executives, managers and

administrators to significantly change the organization, they lead, do not
work and 75% percent of attempts to change organization by way of
mergers, acquisitions, restructuring, down sizing, privatization have
failed (Burke 85 Biggart, 1997; How mergers go wrong" 2000). This is
mainly because of paradox unplanned change initiatives or improper
management of change. Therefore, to succeed especially for the long
term, the organizations need to plan change and adopt systematic
approach to diagnose, implement and manage change. This research
study seeks to understand, analyze and explore the integration of
organization environment components and individual preferences for
more successful initiatives and management of change, particularly in
civil aviation sector.
In dealing with various issues of change management, this
research work has been divided in seven chapters, each of which focuses
on a specific set of related aspects. All the chapters begin with a concise
overview of the main issues and to discuss them in the chapter
concerned.
Vll
Chapter 1 - "Introduction to change Management" highlights the
essence of change management. It also covers theoretical perspectives of
change and the concepts addressing various aspects of change
management. The rationale of the study followed by the objectives,
hypothesis and limitation of the study.
Chapter 2 - "Historical Perspectives and need for Change in Civil

Aviation" besides discussing historical perspectives of civil aviation, the
chapter covers trends and challenges faced by civil aviation globally and
more particularly in Airports Authority of India. The chapter focuses on
various aspects of organizational performance in respect of organizations
of civil aviation of India and also discusses the need for change.
Chapter 3 - "Review of Literature"- provides an in depth review of

literature on change management. The coverage includes research works
providing individual, group and organizational perspectives of change
besides reviewing of various models of organizational change. The
chapter also reviews the limitation of the prior research works in the field
of change management.
Chapter 4 - "Research Methodology"- discusses the sample design,

techniques of data collection, measures used in the study and methods
of data analysis besides providing statistical treatment of the data. The
chapter also provides insight of techniques used in formulation of
questionnaire and selection of sample design.
Chapter 5 - "Change Management in Civil Aviation"- provides detailed

coverage of results and discussion of the research findings in respect of
various dimensions of organizational change and organizational
environment. The chapter also provides the discussion on respective
hypothesis laid for verification in the research study.
vin
Chapter 6 - "Change Management and Organizational Effectiveness"
provides results and discussion on the co-relation of various change
elements and their effects on organizational effectiveness and evaluates
its impact. The chapter also reviews the respective hypothesis laid down
for verification in the study.
Chapter 7 - "Summary of Findings, Conclusions and Suggestions"

portrays the summary of findings and conclusions of the study. It also
provides valuable suggestions for improving the organizational
effectiveness besides suggesting the need and areas of change required
by the sampled organization, under study. The references and tables are
also annexed in the last pages of the study.
(B. P. SHARMA) "

RESEARCHER
*******
IX
ACKNOWLEDGEMENT
The ancient Master-Disciple-School (Guru-Shishya Parampara) of

Indian culture seems preserved, albeit in residual forms, in our learning
system. Having transcended the age, and time, now I also tend to believe
that this 'Guru and Sishya relationship' is a beautiful and purposeful
communication of wonderful transformation of learning, which 1 have
experienced during last three years of my research work. I am pleased to
have this opportunity to express my gratitude and thanks to all those
who have guided and assisted me to complete this research work.
• I am deeply indebted and wish to express my sincere thanks and

deep sense of gratitude to Prof. Kaleem Mohammed Khan, Dean
and Chairman DBA Committee, and Prof. Azhar Kazmi, Professor,
Faculty of Management and Research, Aligarh Muslim University
for their professional guidance, unabashed support and
encouragement all the while during my research.
• 1 owe a debt of gratitude to Prof. A. M. Shah, Professor, Faculty of

Management Studie3 at University of Kashmir and Prof. S. M.
Ozair, Professor, Faculty of Management and Research, Aligarh
Muslim University, who have been the epitome of the true masters,
for their keen interest, valuable supervisiory guidance,
constructive criticism and unceasing encouragement throughout
the present research work.
• I would also like to express by heartiest thanks to Prof. Prag

Diwan, Former Director, All India Management Association, Delhi
and Prof. Anand Prakash of Delhi University for their valuable
guidance and help rendered to me in completion of my research.
I am grateful and would like to express my sincere thanks to
Sh. K. Ramalingam, Chairman, Airports Authority of India, and
Sh. S. C. Goswami, Regional Executive Director and Sh. K.
Rajendranan, Executive Director(P85A), Airports Authority of India
and all those officers and employees of Airports Authority of India
who have helped me in the process of completing my research
work.
I am grateful to the Ministry of Civil Aviation, Management of

Airports Authority of India and the Airport Directors/Officer-In-
charge of various airports for their kind cooperation and assistance
in making available the research data. I am also thankful to all
those who have contributed directly or indirectly to make this
research work a success by providing valuable suggestions and
information through questionnaire and interviews.
• I also express my unrestrained gratitude to all those eminent

personalities in the field of management research and civil aviation
who have been propitious for their scholarly discussions,
comments, suggestions and making available valuable literature
and data information. My thanks are also due to Librarians of
AIMA, FMS, ISID, British Council and Document Services of ICAO.
• Finally, I express my profound gratitude to my wife Nirupama and

my loving daughters Prianka and Bhavika who had to sacrifice
their affectionate moments and provide me with constant
encouragement to enable me to accomplish this research work
successfully.
Date: 10th J u n e ' 2 0 0 4 (B. P. SHARMA)

Place: New Delhi RESEARCHER
XI
INDEX OF TABLES
S. No Table No Subject Description Page No
1. 2.1 Global Trends in Airport Organizations 56
2. 2.2 Customer Satisfaction Index of AAI 72
3. 2.3 Financial Performance of AAI 73
4. 2.4 Traffic Handled at AAI Airports in India 74
5 4.1 Sample Presentation 100
6. 4.2 Data Computation 86 Definitions 110
7. 5.1 Perception of Respondents towards 115

Organizational Management

Components of Organizational Environment
9. 5.3 Perception of Respondents towards Dimensions 121

of Change Management
10. 5.4 Overall Perception of Respondents towards 121

Organization

Organization in General

Organization across Age

Organization across Education

Organization across Management Level

Organization across Work Units
Xll
S. No Table No Subject Description Page No

Organization across Experience
17. 5.11 Mean and Standard Deviation of overall 144

Organizational Performance and Change
18. 6.1 Coefficient of Co-relation between Organization 150

Development and Change Variables

Customer Orientation and Change Variables

Performance and Change Variables
21. 6.4 Mean and Standard Deviation of Overall 156

Perception on Organizational Effectiveness
22. 7.1 Prediction of General Management and 173
Organization Environment in AAl
23. 8.1 Trends of Traffic in Indian Airports 212
24. 8.2 Five Years Traffic Trends in Indian Airports 213
25. 8.3 Percentage Change in Airport Traffic 216
26. 8.4 Airport Capacity and Share of Airport Traffic 217
27. 8.5 International and Domestic Revenue Traffic 219
28. 8.6 Economic growth patterns in World and 219

Regions
29. 8.7 Bird view of Airport Ownership around World 220
30. 8.8 Comparison of various type of Management 222
31. 8.9 Institutional Oversight of Aviation Activity 223
32. 8.10 ACI rating for Top 50 Airports of the World 224
******
Xlll
INDEX OF FIGURES
S. No Fig. No Subject Description Page No
1. 1.1 Planned Process of Organizational Change 26
2 1.2 Steps in the process of Change 27
3. 2.1 Curve of Break Even Costing of Airports 59
4. 2.2 Organization Functional Chart of AAI 63
5. 3.1 Model of Organizational Performance and 88

Change
6. 3.2 Transformational Factors of Burke-Litwin 90

Model of Organizational Change
7. 3.3 Transactional Factors of Burke-Litwin Model 90

of Organizational Change
8. 5.1 Transformational Factors Organizational 146

Change in AAI
9. 5.2 Transactional Factors Organizational 146

Change in AAI
10. 6.1 Factors of Organizational Performance and 158

Change in AAI
icifkicick
XIV
CHAPTER :: 1
INTRODUCTION TO
CHANGE MANAGEMENT
Introduction
Perspectives of Change
c^ Management of Change
^ Organizational Effectiveness & Change
^ Rationale of the study
®= Objective and Hypothesis of the study
^ Limitations of the study
^ Chapter plan
15
INTRODUCTION TO CHANGE MANAGEMENT
INTRODUCTION:
Today all organizations are facing a world of constant change in

every aspect of its operations whether in production or service sector.
Several factors both external and internal act as triggers or drivers of
change in organizations. Drucker (1994) compared the magnitude of the
current change with the Industrial Revolution around year 1800 and
renaissance around year 1500. The organizations that are able to
understand the phenomenon of changing environment and rapidly adapt
to 'change' will only be able to survive and thrive organizational need to
proactively initiate changes in different dimensions of business life,
business strategy, organizational structure, culture, product/service,
human resource and technology.
The winds of 'change' that swept organizations across the world

reached the Indian subcontinent in 1991 with government opening up
the Indian economy. The government of India announced a series of
policy reforms aimed at allowing for free play of market forces,
encouraging competition among the enterprises linking Indian
enterprises v/ith international environment. This has brought global
competition for Indian organizations and caused immense turbulence in
Indian corporate world/markets. This Global competition is intensifying
and becoming more significant and challenging in corporate world and
no longer could be ignored. While environment is changing speedily,
there is wide spread understanding in the corporate world as well as in
the academic circles that the rate at which change is occurring has
accelerated its significance and need of its successful management in the
recent years. Some of the important factors that are enforcing change in
today's business environment include changing government policies.
16
customer's expectations, global competition, mergers, privatization,
technological developments and human resource dimensions. These
factors, some of them described below, are enforcing change in today's
business environment and consist of elements both external and internal
(Leavitt 1964 and Times of India Pub; 2002).
• Privatization process of publicly owned organizations continues and

their monopoly protections are disappearing. This is a worldwide
trend, and even where ownership does not change, new
systems/structures are being often established to create competition.
• Technological changes continue to accelerate, so the speed with which

obsolescence occurs is also increasing. The organizations are not able
to ignore implication of technological developments and this is
causing changes to human skills, jobs, structures and other elements
such as work culture.
• Customer's are becoming more aware and no longer accept sub

standard service or poor quality. They want worth of their money.
This, in turn, means that organizations, whether public or private,
have to change the way they interact with their customers and focus
on their needs i.e. different structures, systems, culture and service
performance.
• Human resource is the knowledge asset of organization and is the key

element for success of any change initiative. Change strategies need
to accommodate approaches of mind sets towards, flexibility, quality,
re-training and multi-skilling to maintain competitiveness and
committed work force to achieve organization goals. Changes in
lifestyle trends are effecting the way in which people view work,
purpose and group climate. The changing work systems create a need
for non-traditional and multi-skilled work force to cope with changing
scenario but a feeling of insecurity and lowering of loyalty among the
workers, therefore, a need of circumspect consideration.
17
• Legislation and de-regulations are occurring at a global as well as at
national level permitting privatizations, acquisitions and overseas
entrants in organizations. The pubic sector organization are also
under changing pressures or are being forced to develop agencies and
their services to the outside world in a bid to become competitive and
profit earning.
The civil aviation sector worldwide is experiencing fast changes due

to globalization, economic environment, government deregulation
policies, technological developments, HRD evolutions and customer
awareness. The governments are reviewing its state aviation policies,
establishing autonomous bodies, and privatizing airports and air
transport. This process, though started more than a decade back in
many countries like Australia, USA, Canada and Europe, is witnessed
now in India on a fast scale. In India, the state owned airlines are looking
for strategic private partnerships, private airlines are allowed to operate
in domestic and also in some international routes, airports are being
privatized, new state civil aviation policy is in pipeline and government
regulations are being liberalized. The experience of organizations in the
area of change management have been of mixed outcomes whereas in
some countries it has created an industry turn around but in some it has
resulted as failures (Porras and Robertson: 1987),
While Indian economy is all set to integrate itself into the global
economy, the up-gradation and modernization of civil aviation
infrastructure and its efficient use have assumed critical importance in
the country. It is now increasingly recognized that aviation, far from
being a mere mode of transportation for an elite group, is crucial for
sustainable development of trade and tourism. In this context, it is vital
that civil aviation infrastructure grows in anticipation of the escalating
needs of the air transport industry. As this is a capital-intensive sector,
there is an obvious need for perspective planning and proper study with
a vision for the next twenty years and to muster the combined resources
of the public and private sectors, both domestic and foreign to meet the
challenges posed by fast changing scenario.
Against these backgrounds, there is a need to modify our whole

mindset about change. Though there is an awareness of the need for
change, there is also resistance to it. The organizations are confronting
initiative 'fatigue' after having seen the results of total quality
management, restructuring, downsizing, business process design and
business re-engineering etc. In this environment we need to rethink the
ways in which the whole change management is addressed. The change
is no longer an irregular phenomena that need to be undertaken once
every ten years or so but change in something that the organizations
have to learn to live with, to structure and to manage (Brooker: 2001).
The proposed study is an effort to understand the change management
better in the context of Indian civil aviation changing environment and to
also fill the gaps in this area of research.
PERSPECTIVES OF CHANGE:
Organizational change is a complex, uncertain and difficult process

that requires careful planning and thoughtful analysis. It is essential to
be equipped with appropriate understanding of change perspectives
before introducing any form of change in an organization. Considering its
importance the perspectives of change has been discussed under the
rubric of processual perspective and theoretical perspective.
Processual Perspective:
There is growing evidence that academics in Europe and Australia

have started to recognize the importance of processual research for
under standing the dynamics of organizational change (Ropo et al: 1997,
Van de Ven & Huber: 1990). The similar indications are also noticed in
Indian academic circles too in the recent times.
19
As per Dawson (1994), the processual approach is concerned with
the collection of longitudinal qualitative data, which facilitates a more
detailed understanding of the complex and dynamic processes of change.
This framework mirrors the work of Beckhard and Harris (1987) who
characterize organizational transition (change) as a movement from a
present state of organization to some future state. Three general time
frames- initial conception-need for change, process, and operation of new
work practices- provide a useful frame work from which to begin a
detailed examination of the process of organization change:
• Need for change - is the initial awareness of a need to change either

in response to external or internal pressures for change (reactive) or
through a belief in the need to meet future competitiveness
(proactive). The proactive approach stimulated a wealth of research
into the adaptation on management fads (Abrahamson; 1996,
Jackson: 2001) that promise a painless solution to rising
international competitiveness. The increased complexity and
uncertainty of international business environment, and government
changing policies led organizations to base change on imitation rather
than on any conception of a need to adopt untried techniques
(DiMaggio and Powell: 1983). It is important to know that how the
conception of a need of change can be influenced by factors within the
organization such as operational inefficiency, employees disputes etc
and/or by factors that emanate from outside the organization.
• Process of change - comprises a number of different tasks for

individual and groups both within and outside the organization. Once
a decides to change has been made, management than decide on the
type of change they wish to introduce i.e. change in strategy, human
resource, services, structure, systems, technology (Daft: 1986, Boddy
86 Buchanan: 1986). The research of James Quinn (1980)
demonstrates formalization of strategic decisions and illustrates how
strategies can often be implemented prior to their final formulation to
20
accommodate the non-linear nature of complex processes of change in
modern organizations. System selection also influences the process of
planning the task of implementing changes. It is during the
implementation of change programmes that occupational and
employees concerns normally begin to influence the transition process
(Dawson: 1994) and may resist to change (Clausen: 2000).
• Operation of new work practices - refers to the period when new

organizational management and systems of operation began to emerge
subsequent to implementation of change. While the ongoing process
of change will continue, this period can be used to identify the
outcomes of change on organizational structures and traditional
operating practices.
In accommodating the temporal aspects of change, the processual

perspective examines change 'as it happens' and is generally concerned
with group of determinants that shape the process such as:
• Context of change - is an important concern of a processual approach

in which change takes place. A historical perspective on both internal
and external organization contexts is central to understand the
opportunities, constraints and organization defined routes to change
(Kelly 85 Amburgay: 1991) as the coexistence of a number of
competing histories of change can significantly shape ongoing change
programmes. The contextual dimension refers to both past and
present, e;xternal and internal environment, as well as to the influence
of future projections and expectations on current operating practices.
External contextual factors include socio-political events, globalization
of market, customer influence, government legislation, technological
innovations whereas internal environment include (Leavitt: 1964)
human resource, structures, systems, work culture and service.
• Substance of change - used in processual frameworks are defined as

scale and scope, defining characteristics, time-frame, and perceived
21
centrality. Substance of change is not static but is itself subject to
change and it influences and also gets influenced by contextual and
political elements.
Nature of change - are described as continuous and discontinuous,

revolutionary and evolutionary and transformational and
transactional (Gersick: 1991, Nedler and Tushman: 1995, Weick and
Quinn: 1999). Revolutionary or transformation change requires
different tools and techniques for bringing about successful
organization change than do methods for evolutionary or continuous
change. The revolutionary change requires total system events such
as mission, strategy, structure where as evolutionary change requires
improvement measures in service standards and day to day work
methods.
Politics of change - refers to the political activity of consultation,

negotiation, conflict and resistance, which occurs at various level
within and outside of organization during the process of managing
change - such as government pressure, union representations and
customers etc. The work of Stace and Dumphy (1994), and Buchanan
and Badhan (1999) are of relevance to understand the phenomenon of
politics of change.
Resistance to Change - often founded because people resist to change

when they think that it will cause them to loose smoothing of value
viz. job opportunities, career prospects, job satisfaction, undermine
status etc. It is important to anticipate and manage resistance
effectively. Pugh(1993) suggests that all too often managers fail to
anticipate resistance because they consider from a rational resource
allocation perspective and fail to appreciate concern of effected people.
Kotter and Schlesinger (1979) identify four main reasons of people
resistance to change as parochial self-interest; misunderstanding and
lack of trust; different assessments; and low tolerance for change.
22
They also identified six methods for dealing with resistance to change
as education and persuasion; participation and involvement;
facilitation and support; negotiation and agreement; manipulation
and cooption; reliance on explicit and implicit coercion.
Theoretical Perspective:
The theoretical perspectives on organizational change generally

practiced are contingency perspective, population-ecology perspective,
institutional perspective, and resource dependence perspective. The
organization change must focus on both 'content - what to change, and
process - how to manage the change'. These perspectives were addressed
both theoretically (Van de Ven and Poole: 1995) and by research
(Rajagopalan and Spreitzer: 1997).
Content - What to Change: According to Drucker (1994), a theory

of the business has three parts - (i) assumptions about the external
environment of the organization that is society, customer, market and
technology; (ii) assumptions about the organization's mission, purpose
and objectives; and (iii) assumptions about the organization's core
competencies i.e. skill and abilities required to accomplish mission.
Whetten (1989) proposed that a complete theory of change

contains four elements - what, how, why and who/where/when which he
described as:
What (constructs): factors that should logically be considered as

explanatory parts of what is being considered for organizational
change-strategy, culture, structure, system, performance 85 so on.
How (linkage): how the factors under effect relate to one another,
typically portrayed in the form of boxes and arrow in a change
model; what comes before what (strategy before structure) and
what causes what.
23
Why (conceptual assumptions): the logic underlying the theory or
model. As Whetten (1989) describes - the soundness of
fundamental views of human nature, organizational requisites or
societal processes provide the basis for judging the reasonableness
of the proposed conceptualization.
The fourth element in Whetten (1989) criteria-set includes the

combination of who/where/when - these temporal and contextual
factors set the boundaries of generalization, and as such constitute
the range of the theory.
A recent study by Audia, Locke, and smith (2000) showed that

greater past success led to greater strategic persistence after a radical
environmental change, and such persistence induced performance
declines. Their laboratoiy study also demonstrated that dysfunctional
persistence is due to greater satisfaction with past performance, more
confidence in the correctness of current strategies, higher goals, and self-
efficacy, and less seeking of information from critics. Porras and
Robertson (1992) provide example of the content for organization change
as vision, technology, physical setting, structure, and on-job-behavior.
Process - How to Change: Theoretical Frameworks: Van de Ven

and Poole (1995) in their literature research identified 20 different
theories of development and change. They clustered them into four ideal
type development theories known as lifecycle theory, teleological theory,
dialectical theory and evolutionary theory. The authors also developed a
framework of 16 possible explanations of organization change and
development (Van de Ven and Poole: 1995), considering interplay and
combination among these theories. Leaving the four original above
theories, the remaining twelve combinations gave other theories, that is,
organizational punctuated equilibrium theory (Tushman and Romanelli:
1985); social psychology of organizing (Weick: 1979); and human
development progression (Riegel: 1976).
24
Process - How to Change: Practice frameworks: In the process of
initiating organization change, it is important to determine as clearly as
possible that how ready people in the organization are to accept and
implement the change. Backhard and Harris (1977) referred equation C =
(ABD) > X to assess degree of readiness and costs of change. Where C =
change, A = level of dissatisfaction with the status quo, B = clear desired
stage; D = practical first steps towards desired state, X = cost of change.
Lewin (1947) concluded that to be successful, the change process

need to follow a three-step procedure (i) unfreezing, (ii) moving, and (iii)
re-freezing. Schien (1987) expanded and elaborated Lewin's work and
termed them as stages and describes these stages as - Stage 1:
Unfreezing- involves creating motivation and readiness to change.
According to Schien (1987) there are three way of unfreezing an
organization i.e. dis-confirmation, induction of guilt and creation of
psychological safety: Stage 2: Changing - involves cognitive restructuring.
According to .Schein (1987) two processes are necessary to accomplish
this stage i.e. identification with a new model, mentor, leader or
consultant begin to see things from that other person's point of view, and
scanning the environment for new, relevant information; and Stage 3:
Refreezing - involves integration of the change for organizational
members. According to Schein (1987) it has two parts i.e. personal and
individual, and interpersonal.
Further review of literature on organizational development and

change found that the planned change makes organizations more
responsive to environmental shifts and should be guided by generally
accepted and unified theories of organizations and organizational
change- neither of which currently exists (Porras and Silvers : 1991).
They followed with a new model/theory of planned change that proposes
a process of how organization change occurs. The frame work begins
with organizational interventions that are intended to affect certain
variables, which is turn affect individual behaviour and ultimately
25
improve organizational performance and enhance individual
development. Porras elaborates that for organization change to occur,
organization members must alter their on-job behaviour in appropriate
ways signifying the assumption that behaviour is significantly influenced
by the nature of the change setting in which it occurs.
The planned change process model of Porras and Silver is depicted

in fig 1.1 (JD Porras & RC Silver :1991 - Organization Development 86
Transformation, Annual Review of Psychology, 42, pp-51-78) for better
understanding.
Fig: 1.1 Planned Process Model of Organizational Change (JD Porras & RC Silver: 1991)
Change ^ Organizational Individual Organizational

intervention target variables ^ , ^ outcomes
member
% " * " • <
Tjaffltformation
-» tOT)
%daihanc£^ \
T^^^^%. «*»
MANAGEMENT OF CHANGE:
The implementation and management of change in any large-scale

organization is a complex process and likely to be problematic, if not
managed properly. The task of implementing change has been well
documented in the literature (for example, Preece: 1995, Preece et al:
1999) and has been identified as the period that requires considerable
26
political skill on the part of change agent (Buchanan and Badhan: 1999).
It is during the irn.plementation of change programmes that occupational
and employee concerns normally begin to influence the transition
process (Dawson: 1994) and therefore need to be handled with care.
Mabey and Salaman (1995) considered a number of perceptions

about the management of change that effect reaction to it. Amongst
these factors are, whether change is perceived as 'deviant or normal' and
threatening or desirable. The change judged as deviant or threatening
will be perceived as imposed and likely to generate resistance. Therefore,
the methods used in management of change will have an important role
in affecting the 'success of change'. Change is often managed less
effectively than it might be because those responsible for managing
change fail to attend to some of the critical aspects of the change
process. The model (Hayes and Hyde: 1998) provides a conceptual
framework for the management of change and fig 1.2 represents the
steps in change process.
Fig 1.2: Steps in the Change Process
Externa!
change,
problems
&
opportunities
Recognition Start of Plan and Implement

of the need change •prepare change Review
for change process for
iniplerae-
ntation of
change
( S o u r c e : H a y e s a n d H y d e : 1998)
27
The model dotted lines represent feed back loops and possible
iterations or repetitions in the process whereas loop between review and
external factors indicates that change rarely involves moving from one
study state to another. Typically, it is an ongoing process and often new
pressures for change emerge before the current change initiatives has
been completed. According to Hayes and Hyde, the process involves
various key steps in management of change successfully namely,
recognition of external and/or internal forces require change to take
place; translating the need for change into a desire for change;
diagnosing the cause of problems requiring change; reviewing present
state and identifying the future state; prepare and plan implementation;
and reviewing and consolidation.
Phases of Change:
The management of change has four primary phases (i) the pre-
launch phase of change; (ii) the launch phase of change; (iii) Post launch
phase of change; and (iv) Sustaining phase of change.
Pre-launch phase - consists of the leader self-examination,

gathering information from the external environment, establishing a need
for change and providing clarity regarding vision and direction.
i) The leadership self-examination process concerns the use of self,

how to be persuasive, how to deal with resistance, how to be
political, and how to embody the vision of where one wants the
organization to go. It is therefore, important for the leaders/change
agents who are about to begin a significant change effort , to be as
cognizant as possible of themselves in personnel domain such as
self awareness, tolerance for ambiguity, need for control,
understanding how feelings affect behavior, personnel depositions,
decision making, and motives (Mcclellend and Burnham (1976);
and Values (Burke and Trahant: 2000).
28
ii) The external environment: The knowledge of organization's
external environment and gathering/monitoring information on
changing customer needs, changing technology, changing
government regulations and what is occurring inside and outside
country at economy and development fronts, are critical element of
the pre launch phase of change. According to strategy guru
Michael Porter (1985) it also includes understanding, the
bargaining power of customers, unions and market threats. The
change leaders responsibility in the phase is also to prepare for
organization change as thoroughly as possible, by taking time and
expending the efforts to gather environmental information carefully
and accurately and then to analyze this information before
initiating the change process.
iii) Establishing the need for change: Recognizing and establishing the
need for change is an important parameter. Some organization are
good at anticipating the need for change and such organizations
benefit because they have the time to investigate the emerging
problem or opportunity to decide how best to respond to it. On the
other hand some organization or leaders lack this ability and may
fail to recognize the need for change until they have little choice
but to react in haste to unanticipated set of circumstances and
resulting in more chances of failure change initiations. CEO's and
other senior executives are in a better position to monitor the
external environment and therefore are likely to see the need for
change sooner and more clearly than majority of other
organizational members. However, these members may better
perceive technological change earlier than senior executives may.
Regardless to where the awareness of a need for change is
recognized, it is the responsibility of management and senior
executives to communicate the need of change to organization
members and initiate change process (Evans and Price: 1999).
29
iv) Providing clarity of vision and direction: One of the requirements of
pre-launch phase of change is to craft a vision statement and in so
doing, provide clear direction for the organization change effort.
The clarity of direction is critical to the success of the change
(Bauman, Jackson and Lawrence: 1997). At British Airways, it was
management's emphasis on what the new culture should be - one
that was customer focused and market driven that provided the
necessary vision for what needed to be reached. It is the change
leader or CEO's responsibility to see that both vision and clarity of
direction are properly crafted for the desired organizational change.
Launch Phase - consists of communication about the need for

change, initiating key activities and dealing with resistance.
i) Communicating the need for change is usually the responsibility of

change leader or CEO but could also be facilitated by senior
executives. Generally the communication about the need for
change should be delivered properly, making certain that the
message is absolutely clear and shows management commitment.
ii) Initiating key activities of change process is a significant activity of

organization change and can take variety of forms. The focused
and energizing event is a highly useful way of launching large scale
and planned organizational change and the event should go across
the sections of people involved in or affected by change process.
For example at British Airways, it gives first his rationale and then
an exaraple of an initial activity (Burke and Trahant: 2000).
iii) Dealing with Resistance to change can occur at either of individual

level, group level or organization level. The change leaders need to
be aware of the nature of resistance - blind, ideological, or
political-so that the appropriate responses and interactions with
people in organization can take place coping with these forms of
resistance. This involves making a strong compelling case for
30
change but leading with persistence, clarity of direction, passion
and vision.
Post Lunch Phase - of organization change is difficult because this

typically has control needs that are considerably above average. The
change leaders, while managing change, can easily experience feelings of
(a) anxiety (b) ambivalence regarding decision-making. Ronald Heifetz
(1994) suggested three actions for overcoming such difficulties; first, to
hold the collective feet to the fire, that is, to be persistent about-what it is
going to take to make the change successful; second, draw the system
out of its comfort zone but attempt to contain the associated stress so
that it does not become dysfunctional; third, deal with avoidance
mechanisms that usually emerge during this time such as blaming and
scape-goating. The following are some key actions, the change leaders
need to bear in mind:
i) Multiple leverage: in large organizations, change is too complicated

for one action (intervention) to do the job. Many managers believe,
for example, that changing the structure can suffice. In a study of
organization change, the failure of change was most often
associated with change of structure when that was essentially all
that occurred (Burke, Clark and Koopman: 1984). In a recent
coverage of case studies of successful organization change points
out that (Burke: 2000) (a) the cases of successful change illustrate
that there is no substitute for visionary leadership in times of
change to occur; and (b) true organizational change is too
complicated for one intervention and multiple sources of influence
are required.
ii) Taking the Heat: when organization change is launched, it is likely

to get push back as descried by Chief Executive of British Airways
(Burke and Trahant: 2000). The change leaders are the most
obvious targets and this is the time when the change leaders must
31
use self-control (a) to listen, (b) not to be defensive, and (c) to
display patience on job.
iii) Consistency: during the early day of the change process, the
change behaviour of leader is scrutinized by followers such that -
how serious in change process? The consistency in change process
and change leader's behaviour is the essence in an organization
change effort and need to be maintained.
iv) Perseverance: perseverance in change management process means

staying on course. Once the change process is launched, people
are excited but after some time change efforts may get bogged
down. This is the time the considerable perseverance on the part of
change leader is required to stay on course, to continue to
encourage people, and to exude energy and enthusiasm for
continuing efforts.
v) Repeating the message: means emphasizing on incorporation of

mission, vision statements and values. This is required because
people need to know - what is that we are doing and why? In
addition to reminding, it is critical that change leaders facilitate
message via video, written documents and other effective means of
communication in organization.
Sustaining the Change:
Once the changes process is launched and changes are taking

place it is essential to sustain change. Pascale et al (2000) four back rock
principles are useful about the importance of sustaining an organization
change efforts- unanticipated consequences, maintaining momentum,
choosing successors and launching of new change initiative again.
i) Unanticipated consequences - mean that when the change is

launched, equilibrium is disturbed and seeming chaos occur
(Pascale et al: 2000). Some example of this type of reaction include
32
(a) different organizational units interpret the change vision and
direction to fit their needs, and therefore implementing of their part
of change become different than of other units; (b) some people or
group who were expected to resist becomes champion of the
change or vise-versa, and (c) desired and expected outcomes
regarding a part of the overall change effort simply do not occur.
ii) Maintaining momentum - is critical because the natural

momentum towards equilibrium has to be countered. Finding new
ways to recognize and reward change champions in the
organization and celebrating achievements helps to maintain
momentum. To maintain momentum, the change leaders must
constantly monitor the organization's external environment.
iii) Choosing successors - mean that change leaders need to do well to

counter equilibrium and sustain change efforts by infusing new
bloods into their organizations. This means that, though complete
overhaul is not possible of people involved in change, entrance of
new people or shifted from other part of organization counteract
the support equilibrium such as tired thinking, and solidified
norms etc. Much has been written about problems of succession
and infusing new thinking into an organization (Levinson: 1994).
iv) Launching new initiatives - is critical to identify and implement

new initiatives that will renew organizational members energy,
spark new ways of thinking and continue to propel the
organization farther down its path of change after some
unspecified time into the change efforts. These new initiatives need
to be in-line with the original change objectives such as acquisition
of another business, merger of organizations, creating new
business line, establishing strategic alliances or ventures v/ith
other organizations, starting new programme ; improving quality
and reduce cost of products/services etc.
33
Organizational. Development Model of Change:
Organisational development approach was first described by Kurt

Lewin (1951), whose work on inter-group dynamics and planned change
has proven to be particularly influential (Kreitner and Kinicki: 1992).
Lewin argued that for change to be managed successfully, three general
steps must be followed which he identified as:
• Unfreezing - is the stage in which there is a recognized need for

change and action is taken to unfreeze existing attitudes and
behavior. This preparatory stage is deemed essential to the
generations of employee's support and the minimization of employee
resistance.
• Moving - step shifts the system to a higher level of group

performance. It involves developing new behaviors and attitudes
through changes in group structures and process. Lewin's (1947)
approach of force field analysis maintains managing of change
through reducing the forces that prevent change, rather than through
increasing the forces that are pushing for change. He further
maintained that within any social system there are driving and
restraining forces that maintain the status quo and within which
organizations generally exist - a state of quasi-stationary equilibrium.
Thus, in order to create conditions conductive to change it is
necessary to identity the restraining and driving forces, and to change
one or other of these in order to create an imbalance.
• Refreezing - step stabilizes the system at a new state of quasi-

stationary equilibrium. In change process once an imbalance has
been created, the system can be altered through a planned change
programme to achieve the desired state. At this point, the change
agent refreezes the organization in a quasi-stationary equilibrium
state. The new state of balance is than appraised and methods of
34
positive reinforcement are used to ensure that employees 'internalize'
attitudes and behaviors consistent with new work regimes.
Typically, the organization development approach is a planned

change process and top management must support the proposed change.
The objectives of change are to improve working conditions and
organizational effectiveness. The most common distinguishing
characteristics of modern OD approaches (French and Bell : 1995) are;
the goal is to improve an organization's health and

effectiveness;
the focus of the change efforts on the whole system;
the change programme involves planned interventions;
top-down strategies are applied;
employees at all level to be made committed to the change;
- change is made slowly to allow continual assessment of

change strategies;
specialist change agents are used to guide the change process;
- organizational development programme are based on data, so

that choices are made on objective information rather than
assumptions;
the objective is to achieve lasting change rather than

teraporary change; and
the organizational development approaches can be used with

both healthy and unhealthy organizations.
The organizational development approaches involves six major

steps in an OD programme (Aldag and Stearns: 1991) and are described
35
as identifying a need for change, selecting an intervention technique,
gaining top management support, planning the change process,
overcoming resistance to change and evaluating the change
process/ outcomes.
ORGANIZATIONAL EFFECTIVENESS AND CHANGE:
There exist a large volume of literature on the concept and working

of organizational effectiveness, which often contradicts its various
approaches. The terms such as efficiency, productivity, profitability,
development and growth are often used interchangeably to denote
organizational effectiveness. Etzioni (1990) defines organizational
effectiveness as the degree to which an organization realizes its goals and
objectives whereas Kimberly (1979) argued that the organizational
effectiveness can be seen in terms of survival of the organization.
Yutchman & Seashore (1967) reported that an organization remains
effective as long as uses its resources in a efficient manner and
continues to contribute to the large system.
Campbell (1970) has reviewed various studies and conceptual

frame works on organizational effectiveness and found that many
criteria's have been used to measure organizational effectiveness. Based
on these reviews he concluded, "organizational effectiveness is the degree
to which operative goals of an organization have been attained while the
concept of efficiency presents cost/benefit rate incurred in the pursuit of
these goals".
Barnard (1968) argued that when unsought consequences are

trivial or insignificant - the effective action is efficient; and when
unsought consequences are not trivial - the effective actions may be
inefficient. He further reported that there may be three type of situations
in such cases (i) an organisation may be efficient but may not be
effective; (ii) an organisation may be effective but may not be efficient;
and (iii) an organisation may be both efficient and effective.
36
Approaches of organisational effectiveness - has been used to
conceptualize the organisational effectiveness i.e. goal attainment
approach, system resource approach, strategy constituencies approach
and competing value approach. The measures of organisational
effectiveness help managers in two aspects, first to understand how the
organisation is performing, and second to know that the organisation is
able to fulfill its goals and set objectives.
• Goal-attainment approach - is one of the most widely used

approaches of organizational effectiveness. Katz and Kahn (1978)
explicate organisational effectiveness as the maximization of profit
of return to the organization by all means. The goal attainment
approach of organisational effectiveness assumes that,
organisation must have ultimate goals; goals must be identified
and defined to be understood; goal must be few enough to be
manageable; there must be general agreement on these goals; and
the goals must be measurable.
• System approach - also called input-throughput-output approach

is derived from the open system model as it is applied to formal
social organisations. Bennis (1952) argued that system approach
involves criteria of adaptability, sense of identity, capacity to test
reality and integration among the sub-parts of the organisation.
Argyis (1964) has explained in similar vein for the integration of
personal and organisational goals and argued that integration
criterion in the system approach is central.
• Strategic-constituencies approach - is closely related with system

approach and proposes that ineffective organisation is one that
satisfied the demands of those constituencies in its environment
from whom it requires support for its continued survival (Pfeiffer
and Salancik: 1978). The strategic-constituencies and their
expectations may differ for different types of organisations based
37
on the functions performed by them. In the case of business
organisations these may be owners, employees, customers,
government, management, and community.
• Competing-Value Approach - (Quinn and Rohrbaugh: 1981)

integrate all three approaches to provide a comprehensive
understanding of organisational effectiveness. The basic theme
underlining the competing value approach is the criteria used in
assessing the organisational effectiveness be it return on
investment, new product development, and/or value of product.
Dimensions of organizational effectiveness - are incomplete for

a practicing manager unless the factors underlying effectiveness are
identified and analyzed. Though each individual's effectiveness is
significant but the most important aspect of effectiveness is its
relationship to the entire organisation. Likert (1967) identifies three
group variables i.e. causal, intervening, and end-result variables, which
are useful in creating organisational effectiveness over time.
• Causal vEiriable - are those factors that influence the course of

development within an organisation and its results or
accomplishments. Likert argued that causal variables are
independent variables, which determine the course of development,
and the results achieved by an organisation. The variables include
structure, strategies, leadership, management practices, skill and
behaviors, and general business management. These variables can be
altered or changed by the organisation and its management.
• Intervening variables- are those factors, which are reflected as the

internal state of organisation. Many of these variables are caused by
causal variables. Likert argues that the intervening variables reflects
the internal state and health of organisation and include loyalties,
attitudes, motivations, performance, goals, perception of all members
38
and their collective capacity for effective interaction, communication
and decision making.
• End-result variables- are those factors which are caused by causal

and intervening variables. According to Likert end-result variables are
the dependent variables which reflects the achievement of the
organisation viz, production, earnings, costs and management-union
relationship etc.
All these variables are inter-related and are visualized as

psychological process where stimuli (causal variables) act upon the
organism (intervening variables) and create certain responses by
managers to improve organisational effectiveness. The approach should
be directed to improve causal variable, while other variables will be
corrected or improved automatically. Fielder (1967) and Redden (1967)
speak of effectiveness, by emphasizing on similar output variables. In
evaluating effectiveness, perhaps more than 90 percent of managers in
organisation look at measures of output alone (Hersey and Blanchard:
1983) and regard end-result the sole criterion for evaluation of
managerial effectiveness.
Managerial effectiveness - has become increasingly important

because of the fact that it ensures a maximum utilization of the
productive resources and helps in achieving the expected results. How
efficiently management uses the physical resources for generating
maximum output with minimum cost determines the managerial
effectiveness, The effective management system possesses certain
characteristics and performs various functions for running the
enterprises successfully.
Guion (1965) states that success of manager lies largely in meeting

major organisation goals through the coordinated efforts of his
organisation, The manager's work behavior contributes to the
achievement of organisational goals by his influence on the perceptions.
39
attitudes and motivation of others in the organisation. The managerial
effectiveness like organisational effectiveness must be in terms of
optimization and not maximization. The effective manager is an optimizer
in utilizing all available and potential resources viz material, human and
financial both within and outside the organisation towards its sustained,
long term functioning.
Campbell (1970) defines managerial effectiveness as any set of

managerial actions believed to be potential for identifying, assimilating
and utilizing both internal and external resources towards sustaining,
over the long term, the functioning of the organisations for which a
manager has some degree of responsibility. Jurgenson (1977) depicted
the characteristics of successful managers as decisive, aggressive, self-
starting, productive, well informed, determined, energetic, creative,
intelligent, responsible and enterprising.
Campbell (1970) defines the behavior of successful managers as,

manage work instead of people; plan and organize effectively; get goals
realistically; derive decisions by group consensus; accept responsibility;
delegate frequently and attractively; develop team working; and
communicate and coordinate effectively.
While discussing managerial functioning Adizes (1976), concluded

the four managerial roles, viz; producing, implementing, innovating and
integrating must be performed if an organisation is to be run effectively.
He contends that whenever one of the four managerial roles is not
performed in an organisation a certain style of mismanagement is bound
to be observed.
Change management & organizational effectiveness - is about

modifying or transforming organizations in order to maintain or improve
their effectiveness. Managers are responsible for ensuring that the
organization or part of organization they manage performance
effectively. We in this topic, review some of the important aspects of
40
various researches on organizational effectiveness and its relationships
with change.
Goodman and Pennings (1980) argue that organizational

effectiveness are closely linked to the ways is which we conceptualize
organizations. The organizational effectiveness could be presented in
various perspectives such as:
• Mission (goals) perspective - presents organizations as rationally

constructed entities that formed, and their existence is legitimized, in
the quest for certain identifiable goals. The meaning of effectiveness in
derived from the accomplishment of mission of these identified goals.
• System perspective - focuses on the functional complementarily of

parts of the organizations and the nature of the organization
relationship with the environment. According to Goodman and
Panning, the systems perspective views functional complementarily as
being more important than the achievement of some particular goal.
Organization development perspective - is concerned with the process

of organization learning that promote organizational renewal and
long-term survival. Organization development is a set of behavioural
science based theories, values, strategies and techniques aimed at the
planned change of the organizational work setting for the purpose of
enhancing individual development and improving organization
effectiveness (Porras and Robertson: 1992). Beer (1980) defines
organizational development as a system-wide process of data
collection, diagnosis, planning, intervention and evaluation aimed at
(a) enhancing congruence between organizational structure, process,
strategy, people and culture (b) developing new and creative
organizational solutions; and (c) developing the organization's self
renewing capacity.
Political arena perspective - presents organizations as a collection of
internal and external constituencies, each pursuing its own
objectives. The organization effectiveness is defined in terms of the
attributes valued by the most powerful constituencies. Customers are
powerful if they are vital to the survival of the organization. Groups of
employees, unions or specific departments are powerful so long as the
organization needs to relay on them to survive. The more central in
the contribution of a constituency to the survival and effectiveness of
the organization, the greater is its power. The success of any
organization depends on its ability to mobilize different resources for
achievement of its goal or mission.
• Environment perspective - focuses on the effectiveness of the

organization because effectiveness is the ability to adapt to the
changes in the environment. It is reflected through the attitudes of the
employees and the culture under which the organizations operate.
The study of effectiveness in environment helps to identify parameters
for evaluating organizational strengths and weakness.
Argyris (1964) focuses on following core activities relevant to

effectiveness for any organization as achieving objectives - is the
accomplishment of the objectives specified in corporate plans, budgets
and resource utilization; maintaining internal system - includes activities
and systems such as performance appraisal, management development,
training and rewards; and adapting to external environment - include
product/service development customer relation and satisfaction,
achieving objectives, resource utilization, maintaining the internal
system and adaptability. The effective management of change demands
attention to related issues and challenges such as managing transitions,
dealing with organizational culture and politics of organizational change.
To deal them effectively in period of change and also to manage change
effectively involves the ability to create a new synthesis of people,
resources, ideas, opportunities and demands. Effectiveness means
42
efficiency plus adaptability. The effective organization is both efficient
and able to manage its goals as circumstance change.
In-view of the foregoing paragraph, it is amply clear that the

organizational effectiveness and change management practices are inter-
linked and outcomes of its variables affect the goals of organizational
performance. A systematic assessment of the characteristics of change
management systems of an organization would affect its organizational
effectiveness. Seen against this backdrop, an attempt has been made in
this study to examine the employee's perception of organizational
effectiveness for the sampled organization. Important characteristics of
effective management pertaining to different areas of organizational
management viz. general management, human resource management,
finance management, customer satisfaction and development have been
called out for detailed examination and their co-relations with causal
variables of organizational performance and change have been studied.
RATIONALE OF THE STUDY:
During the last three decades the civil aviation, worldwide

including India, has passed through various phases of change. The
autonomous statutory or non-statutory bodies have been setup to
manage and operate airlines and airports by transforming and merging
of various organizations. This indicates a basic change in the theory and
practice of air transport and airport management (Ramanathan: 1982).
Airport management relatively is a new subject of study and not many
attempts have so far been made to categorize and compare various terms
of ownership of airports in order to derive a meaningful knowledge of the
organizational change adopted by airports to suit the present day
requirements of aviation.
Given the imperatives of change, the process of managing change

has been attracting the attention of researchers and practitioners alike.
Many researchers have noted that conceptual development in the area of
43
strategic and organizational change is still in a preliminary state and how
to manage complex organizational change remains relatively obscure
(Lundberg: 1984). Porras and Robertson (1987), in an extensive review
and critique of organizational change and development theory, concluded
that the existing research and theory are inadequate and that it does not
provide the rich concepts need to understand and guide complex
organizational change processes. Similarly, Greiner and Bhambri (1989)
noted that strategic change is an under researched subject.
While scanning the related literature on change management, it is

observed that this vital area of research has remained, by and large,
neglected from the researcher's attention in India. Although the necessity
of change for progress and to stay fit in present globalized environment
are widely accepted in the Indian management circles but not much
research has been done to evaluate the efforts the Indian organizations
are making in this direction (Kumar: 1967). Faucheux et. al. (1982) wrote
a wide ranging cross-cultural reviews on organizational change and
reported that there remained a paucity of good research and particularly
the fundamental research. The prominence of the study of change
management has also been well expressed by Kostelanetz (1968) as
'change is the metaphysic of the present age'.
Malhotra (1985) points out that management of most Indian

organizations is insensitive to the attitudes and values of their
employees, resulting in the imposition of borrowed western organization
practices without proper study, which mostly results in unexpected and
un-desired results of change initiatives. He further explains that the
industrial environment, people attitudes, organizational cultures, and
government policies are different in western countries than those
prevailing in Indian organizations. Important to mentioned here is that
we do not out-rightly prohibit the use of foreign research models in
context Indian organizations, but it is contended that required study and
validation is adopted before using such models so as to suit Indian
44
organizations, people, change perspectives, socio cultural and socio-
political environment. It is therefore, necessary that instead of forcing
change in organizations based on western models, we diagnose the
problem of Indian organization in context to its local environment and
then apply validity of such models and concepts (Garg and Parikh: 1985).
Airports Authority of India, among other organizations, is the

mainstay of civil aviation and is responsible for developing, managing
and operating of the airports and air traffic services in the country. The
organization is facing severe challenges triggered by external and internal
elements of organizational environment and is in process of managing of
these challenges of change, thereby validating the need and
appropriateness of our proposed study. The study is expected to provide
better understanding of change management practices for civil aviation,
particularly at AAI and will also fill the gap in this area of research.
OBJECTIVES & HYPOTHESES OF THE STUDY:
The study has been undertaken with the following specific

objectives in view:
1. to study the change management in civil aviation and reasons for

failure of some well conceived and well planned change
interventions;
2. to analyze the prevailing change management practices in Airports

Authority of India;
3. to examine different dimensions of change and employees

cognition for need for change and attitude towards change in
Airports Authority of India;
45
4. to analyze various change elements and their impact on the
organizational effectiveness and performance; and
5 to suggest appropriate change management strategies for

improving organizational effectiveness of the organization, under
study.
In consonance with the aforesaid objectives, the following

hypotheses have been laid down for verification and confirmation:
1. the change management practices adopted by Airports Authority of

India have not resulted in development of world class airports in
India.
2. there is a significant difference in the perception of employees

across demographic variable about element of change and
organizational factors.
3. there is a significant positive co-relation between elements of

change and the components of organizational effectiveness.
1.7 LIMITATIONS OF THE STUDY:
While every research work has its limitations, this study too is
congenital of its limitations. The study is suggestive in respect of
organizational improvement and the suggestions for success of change
management will depend on adopted methodology and change managers,
involved in change initiatives. Some of the limitations of the present
study may be enumerated as below:
1. The study case was confmed to one of the organization in civil

aviation sector of India and therefore limitation on generalization of
the study of civil aviation from holistic point of view.
46
2. The study could not utilize the richness offered by all conceptual
framework envisaged. Though better suggestive measures of
change management may exist, but it could not be translated in
totality as all the possible measures influencing change and
organizational effectiveness could not be exploited.
3. The generation occurring from the study is more conducive and

limited to a group of employees from selective airports, which may
have affected the quality of sample.
4. Assessment of organizational change and performance has been

done from the management perspective only. By studying the
workers in depth one could have gained a broader perspective of
the chsmge management and the organizational effectiveness.
Despite the fact that limitations are inherent in all research

investigations, every care has been taken that the above referred
limitations does not affect authenticity of conclusions drawn from this
research study.
CHAPTER PLAN:
The study is an attempt to understand various change

management practices and their relevance in civil aviation besides
analyzing the impact of change elements on the organizational
effectiveness, The study also examines minutely various elements of the
change influencing the civil aviation industry and Airports Authority of
India in particular. The study has been organized in seven chapters.
The chapter one deals with general discussion pertaining to change

management and its relevance to civil aviation. The chapter also
discusses the rationale of the study, objectives and hypotheses of the
study and limitations of present study. The chapter also discusses the
organizational effectiveness and the role of change management, and
47
provides insight to the approaches, factors of organizational effectiveness
and change frame works.
Chapter two provides an overview of global and Indian civil aviation

and the challenges faced by it due to changing scenario in global
environment, change in government policies, economic growth and
technological developments. Chapter also discusses various civil aviation
organizations and the trends and issues influencing these organizations.
In chapter three an attempt is made to review the literature in the area of
organizational change, management of change and organizational
effectiveness. The chapter also portrays the limitations of the prior
research.
The chapter four presents the research methodology used in the

study for conducting the research. It provides the description of the
sample design, techniques of data collection, method of analysis of the
data, and statistics used for data analysis. Chapter five and six analyses
the primary and secondary data and presents the results and
discussions of the study.
The chapter seven portrays the summary of findings and

conclusions of the study. It also provides valuable suggestions for
improving the organizational effectiveness besides suggesting the need
and areas of change required by the sampled organization under study.
The references and tables are also annexed in the last pages of the study.
*******
48
CHAPTER :: 2
HISTORICAL PERSPECTIVES AND

NEED FOR CHANGE IN CIVIL AVIATION
^ Introduction
^ Civil Aviation - Global Perspective
^ Trends of Change in Civil Aviation
^ Civil Aviation - Indian Perspective
"^ Challenges of Civil Aviation in India
^ Need for Change
49
HISTORICAL PERSPECTIVES AND
NEED FOR CHANGE IN CIVIL AVIATION
INTRODUCTION:
This chapter aims to study and understand the civil aviation at

global level and country level. The significance of various change factors
challenging the civil aviation and the trends and issues in the realm of
change management are reviewed and discussed in this chapter. A
historical perspective of organizational change in civil aviation at global
and national level, particularly at Airports Authority of India is reviewed
to understand the dimensions of change viz. need for change, attitude
towards change and areas of change in the organization.
Onset of economic reforms, globalization, and change in

government policies has compelled Indian organizations to understand
and rapidly adopt to change to stay fit and thereby to seek joint ventures,
mergers, acquisitions and privatization. The international mergers and
acquisitions have become an increasingly broad-based phenomenon and
their numbers are drastically growing (Cartwright and Cooper: 1993).
This has created drastic changes in the terms of business strategy

and organization environment in Indian organizations too. The
liberalization and globalization have impacted Indian industries in
bringing new level of competition, quality consciousness and service
excellence. Organizations, today, are trying to change themselves by
being more innovative, creative, and by re-orienting themselves towards
people based system that focus on empowerment and performance
orientation. The changes such as mergers and privatization are often
practiced in civil aviation but this is creating significant trauma for
managers and employees and results in attitudinal and productivity
problems (Schwiezer and Denise: 1991, Buono, Bowdwich 85 Lewis:
50
1985). This gdso results in turnover of valued personnel including top
executives thereby leading to failure of change initiatives. The change
agents often argue that any change in an organization needs proper
study and careful implementation.
CIVIL AVIATION - GLOBAL PERSPECTIVES:
The International Civil Aviation Organization (ICAO), an

international body under United Nations founded in 1944, is globally
responsible for orderly, safe and efficient development of international
civil aviation. Almost all countries are member states of this organization
including India. The international civil aviation in last decades has
experienced a phenomenal growth and widely spread organisational
changes of management such as restructuring, mergers, acquisitions,
privatization etc in this sector (ICAO, Digest of Statistics: 1995).
While growth in air traffic has historically been greater than growth
in the economy, the growth in commercial air services has continued to
outstrip the givailable capacity at more and more airports. Because of the
interconnected operations of the international air transport system, the
capacity constraints at some airports has impact on other airports.
Governments, airlines and airport managements have each developed
measure to overcome or ameliorate situations of insufficient airport
capacity. However, the governments are increasingly likely to face more
difficult situation of insufficient airport capacity where the demand of
airlines is increasing to initiate or increase commercial operations. The
issues such as external environment, airport economics, capacity
constraints, customer expectations and political regulations are affecting
the civil aviation organizations in all the countries.
European Commission, after a study and extensive consultation,

issued proposal to amend its 1993 regulation on the common rules for
allocation of slots at community airports. The proposed revision focus on
improving its application without fundamental change, however radical
51
changes were forced following in depth study. The Federal Aviation
Administration of USA sought public comment on longer-term
mechanisms for managing increasing demand at its various airports. The
government of India has also setup a high level committee to review the
present scenario of civil aviation in the country. Air transport and Airport
organizations have grown or transformed in the different countries of the
world so rapidly that it is difficult to say that any one of them is ideal or
the organization of one air-operating system is similar to the other.
However, all air transport and airport companies do have organizational
characteristics such as human resource, operations management,
services management, maintenance management, project management,
finance and commercial, industrial relations etc. These organizations
being global in nature do need more effective management system and
require adopting and managing change more effectively to stay in global
competition. There is high degree of pressures of international
competitiveness, technological developments, changing government
policies and also inter-dependence to national and international
environment.
Trends of Change in Global Civil Aviation:
The trends towards government establishing autonomous

authorities or full/partially privatizing airports a n d / o r airlines are
continuing, with increased attention to more active private involvement
in airports and airlines management. During the last two-and-a-half
decades, worldwide, the air transport industry witnessed three major
transformations. First, the industry substantially moved away from
government control ownership towards deregulation and private
ownership. The origins of this trend are generally attributed to the
deregulation of US airline industry in 1970 followed by British Airways,
which led to lower fares and higher efficiency. The second transformation
change, also subsumed another trend of privatization of flag carriers,
evidenced in Australia (Qantas Airways), Germany (Lufthansa), Japan
52
(Japan Ain^âys) and Hong Kong (Cathay Pacific). The third
transformational change pertains to privatization of airports for example
in Europe, Australia, USA and now in Asia. The airports play a critical
role in promoting trade, tourism and economic development of the
country. Betancor and Randeiro (1999) argued that the revenue obtained
from commercial activities in airports is significantly higher when an
airport is privately owned in comparison to when it is under government
ownership.
Traditionally, all over the world, the airport sector has been under
the government control. The move towards airport privatization is
relatively a recent phenomenon and was driven by two key factors. The
first is the inability of government to undertake necessary investment for
airport infrastructure development to meet the challenge of growing
traffic, and second the inability of government operator to manage airport
in a cost effective manner and provide quality service to its customers in
fast changing global competitive environment. UK Government decided to
privatize the British Airports Authority in 1987. By 1995, some form or
other, privatization was under consideration in over fifty-four countries
(World Bank: 1996).
During the late 1980's the aviation world was swept in the rush
towards mergers, privatization and denationalization, as organisations in
many developed countries such as; British Airports Authority in UK,
Airport Management Services and Airport Development Corporation in
Mauritius etc were transformed.
Some of the cases of organisational major changes around the

world are discussed as below to understand the global view:
Britain: The best known major change in the airport management to

date is undoubtedly the British government 1987 conversion of the
British Airports Authority into a private company, BAA Pic. Initially all
stock was owned by the British government, but in 1987 the company
53
was floated by a public stock offering on the London Stock Exchange.
The compan}'^ owns and operates the three large London airports
(Heathrow, Gatwick and Stansfed) and the four main Scottish airports
(Aberdeem, Edinburgh, Glasgow, and Prestwick).
Denmark: The Danish government, during 1991, had planned to sell of

Copenhagen's Kastrup airport offering 25 percentage of shares to the
public and other financial institutions. The trends continued and some of
the airport are presently managed by private companies.
Belgium: The Belgium government has partially privatized the

Brussels airport during 1992, by setting up the Brussels airport terminal
company (BATC) offering 52 percent shares to the private investors,
mostly banks, and keeping 48 percent with government and airways
agency.
New Zealand: The New Zealand government has partially privatized

its three international airports at Auckland, Christchurch and
Wilmington during 1992, by creating corporations to manage and operate
airports. The government is further planning to sell out more airports.
Australia: The government of Australia sold some of its airports namely,

Melbourne, E5risbane and Perth during 1996. The government has also
plans for selling of other airports to the private managed companies.
Mauritius: The government has restructured its department of civil

aviation during 1997 and has created two private companies to develop
and manage its airports. The government and financial institutions hold
the majority of shares.
The trends of privatization/ corporitazition/ denationalization of

airports and airlines continuG in other countries also such as France,
Germany, Jamaica, Malaysia, and South Africa etc. India is also in the
process of privatization of some of its international airports. The
54
privatization of government owned airports and airlines has been one of
the pre-eminent phenomena through out the world during last two
decades. Since 1987, about 130 governments have announced
privatization or modernization plans involving approximately 180
organizations. The trend towards partial or full privatization of
government-owned airports continued (ICAO publication-The World of
Civil Aviation; 2001) under one of the following form: ^^ , --
(i) Sale of existing airports; ^J^ / Q V\0
(ii) Long term lease of airports; ' ^ )
(iii) Creation of new airport corporations;
(iv) Building and Management of airports by way of private

participation BOO, BOT and BOOT etc.; and
(v) Contracting the management of airports to private

organisations.
The change process, in several cases, failed or postponed due

economic consideration, unplanned or hurriedly planned change
initiatives, or because of resistance to change. For example - initiatives of
partial privatization of Air India - the bidders pulled out from tender
process because of difficulties for foreign airline to form consortium with
local partners (The World of Civil Aviation, ICAO, 2001, pp. 11-20). The
privatization of four international airports namely, Delhi, Mumbai,
Chennai and Kolkatta could not be completed due to absence of clear
policies on change process and resistance to change.
The nature and success of change depends to a large degree on

government policy, financial condition of airport, state of capital market,
technology, developmental needs and the process of change
management, Presently, there is no defined standards or research work
available that could be applied to provide best solution to these aspects
of change. However, governments are using various change practices
such as full/ partial privatization, mergers, management contracts.
55
concession contracts and other similar variants. This fast changing
scenario at global civil aviation is enforcing the need for research work in
the area of civil aviation management to ensure the change to be more
effective and long staying. A snapshot of global trends in changing of
airport organization in recent times could be seen from the table 2.1
below.
Table 2.1: Global Trends in Changing of Airport Organizations
SNo Type of Organization Management

Description
option-1 Option-2 Option-3
1. Allocatiion of
Responsibilities
Ownership State State Private
Investment State State/Private Private
Management 85 State Private Private
Operation
2. Strategies for Service BOO/BOT/BOOT Trade sales BOT

Privatization concessions Schemes long term Schemes
contract lease Multiple Strategic
management concessions buy/sell out
Multiple Capital market
concessions
3. Aeroports DU Athens intl. airport British Airports

Recent Cases
Cameroon. Chile Greece, EIDorad Authority, UK.
Airport, airport Columbia Belfast
HongKong Stewart airport International
Airport. Argentina, SSR Int Airport,
Airport Mauritius Scotland.
(Source: MCA: Naresh Chandra Committee Report: 2003)
Trends of Change in Indian Civil Aviation:
The first major change in civil aviation took place in 1953, when
Indian Parliament passed the Air Corporation Act taking over 25 odd
domestic airlines and amalgamating them to create what is known as the
Indian Airlines. Simultaneously, Tata Airlines was converted into Public
Corporation and named as Air India. Indian Airlines begin serving
56
domestic sector with limited access to neighboring countries and Air
India started serving the international sector. The Civil Aviation Industry
was the first industry to be nationalized after independence of the
country in 1947.
Government of India, considering the global scenario, appointed a

high powered committee in July 1967 under Mr. JRD Tata to review the
civil aviation sector to meet the challenges faced by the industry at that
time and to cater to need of growing air traffic and cargo at international
airports in India. On the recommendations of the Tata Committee, the
International Airports Authority of India (lAAI) was created in 1971
through parliament act to manage four international airports of Delhi,
Bombay, Madras and Calcutta, subsequently Trivendrum airport was
also handed over to lAAI in 1991. Further, continuing the process, the
government created National Airports Authority (NAA) through
parliament act in 1985 to manage domestic airports. The authority was
also made responsible for air traffic services and communication
facilities. The regulatory functions remained with DGCA.
In another major change and in order to achieve better resource

utilization and cohesive management of air transport and airports,
Government of India converted Air India and Indian Airlines into limited
companies with effect from March 1994 through Air corporations
(Transfer of under taking and repeal) Act 1994. Further, both the airport
authorities were merged into a new organization identity 'Airports
Authority of India' by an Act of Parliament - The Airports Authority of
India Act-1994. This was the time when government also deregulated its
aviation policies and privatization initiative started in airlines and
airports, which is still continuing.
Country Economy and the Airports:
Air transport and Airports is considered the engine of trade,

tourism industry, modern travel and country's economy. Therefore, it
57
carries lot of importance in the national development and need to
perform effectively and efficiently. The organizations have to gear up in
its best interest to improve efficiency, performance of its
products/sendees, and the capabilities of its constituents to adopt
change to stay-fit in competitive and liberalized economic environment.
There is a strong co-relation between growth in the economy and

growth in air traffic (The world of civil aviation-ICAO: 1997). The demand
for air transport and airports is primarily determined by economic
development. The improvement in personal income affect the level of
purchasing powers and propensity to undertake leisure travel in general
and air travel in particular. Commercial activity and trade have a direct
impact on demand for air transport and airports for travel and cargo
needs. Better is the economy more is the demand of air transport and
airports.
The component of non-aeronautical revenue is very important in

airport economics. The big international airports in western countries
earn as high as 70% of total revenue from non-aeronautical resources.
The world over experience has been that the non-aeronautical revenues
have increased considerably after privatization of airports and
contributed enormously to success of airport development in those
countries. British Airport Authority is the leading example. There are
increasing trends to make airports more passengers friendly and the
facilities such as shopping malls, recreation centers, golf courses etc are
often being created to boost airport revenue and passenger facilities.
While such facilities provide passengers with comforts at airports, also
increases the airport revenues making airport operation viable.
There is a need of change in mindset/management practices in

management of airports to make them more effective and customer
friendly. The airport economics need to be scientifically planned and the
airport charges are conventionally derived by cost allocation of facilities
58
provided for the customer services - called compensatory a n d residual
approach. B h a t t a c h a r y a and S h a r m a (1998) argued t h a t the break even
cost for airport operations is necessary for economic viability of an
airport a n d could be ascertained by break-even cost curve for airport as
given below:
Operations
If number of oiperations = X, Charge (fee) percentage operation =tan a = A than

the loss is given by CAB and Break Even Level at Charge A is XI.
At operation level of X, Charge required for Break Even Level = tan b = B shall
required to be increased for having profits at same level of operations. Sa & S3
are cost indicaitors involved in various stages.
Source: Viability of Operational cost in Airports (Bhattacharya and Sharma: 1998)
59
CIVIL AVIATION - INDIAN PERSPECTIVE:
Civil aviation industry in India came in existence in 1932, making

it one of the youngest infrastructure sector in the country. The occasion
was marked by a 1300-mile long flight that delivered mail from Karachi
to Madras (Assocham: 2000). Mr. JRD Tata laid the foundation of this
industry in the country by setting up TATA Airlines in 1932 - a private
initiative. After the Second World War, in 1945, the proposal for
reorganization of the Directorate of Civil Aviation, prepared by Sir
Frederic Tymms was implemented and DGCA was formed to develop and
manage civil airports besides existing private airline companies. The
airlines were nationalized later in 1953 by merging all private airlines
into two airlines namely, Air India and Indian Airlines.
Presently, the civil aviation sector in India comes under the

preview of Ministry of Civil Aviation and consists of inter-alia Directorate
General of Civil Aviation, Bureau of Civil Aviation Security, Airports
Authority of India, Air India Ltd, Indian Airlines Ltd, Pawan Hans
Helicopters Ltd. There is also other private airlines and airport
management companies in the country. A brief review of these
organizations is depicted in proceeding paragraphs.
Airports Authority of India:
Airports Authority of India (AAI) was constituted by an Act of

Parliament and came into being on 1st April, 1995 by merging erstwhile
National Airports Authority and International Airports Authority of India.
The merger brought into existence a single organization, entrusted with
the responsibility of creating, upgrading, maintaining and managing civil
aviation infrastructure both on the ground and air space in the country.
AAI, as on date, manages 126 airports, which include 11

international airports, 87 domestic airports and 28 civil enclaves. AAI
provides air navigation services over 2.8 million square nautical miles of
60
airspace. During the year 2002-03, AAI at various airports handled about
5 lakh aircraft movements; 40 million passengers and 9 lakh tones of
cargo.
AAI has set for itself ambitious targets for upgrading the
infrastructure during 9*^ 85 10* Five-Year Plans and is trying steadily to
achieve mission targets, but results have not been very satisfactory.
Further, AAI caters to very demanding customers who in the wake of
globalization have the exposure to the best of facilities available at other
international airports in the world. The other customers viz, airlines
operators, who by virtue of their nature of operation, are exposed to the
best of facilities and services available at other international airports. A
customer satisfaction survey is conducted periodically through outside
agencies to evaluate customer satisfaction index, deficiencies of the
system and also the expectations of the traveling public.
In tune with global approach to modernization of Air Navigation

infrastructure for seamless navigation across state and regional
boundaries, AAI has initiated its plans for transition to satellite based
Communication, Navigation, Surveillance and Air Traffic Management. A
number of co-operation agreements and Memoranda of Co-operation
have been signed with US Federal Aviation Administration, US Trade and
Development Agency, European Union, Air Services Australia and the
French Goverament, co-operative projects and studies initiated to gain
from their experience. Through these activities more and more executives
of AAI are being exposed to the latest technology, modern practices and
procedures being adopted to improve the overall performance of Airports
and Air Navigation Services.
AAI is in process of fast technological changes by way of induction

of latest state-of-the-art equipment, both as replacement of old
equipment and also as new facilities to improve standards of safety at
airports and in the air. Adoption of new technology and improved
procedure are being implemented. Some of the major change initiatives
61
in this direction are introduction of Reduced Vertical Separation Minima
(RVSM) in Indian airspace to increase airspace capacity and reduce
congestion in the air and implementation of GPS and Geo Augmented
Navigation GAGAN jointly with ISRO which when operationalised would
be one of the four such systems in the world.
A large pool of manpower, accounting to approximately 21,160

personals, is one of the major assets of Airports Authority of India.
Development of airports and technological advancements and
consequent refinement of operating standards and procedures, new
standards of safety and security and improvements in management
techniques call for continuance of changing scenario to update the
knowledge and skill of officers and staff. AAI has its own training
establishments, viz. NIAMAR in Delhi, CATC in Allahabad, Fire Training
Centres at Delhi and Kolkata for in-house training of its engineers, Air
Traffic Controllers, Rescue 86 Fire fighting personnel etc.
The major functions of the sampled organization are as below:
• Control and management of the Indian airspace extending beyond the

territorial limits of the country, as accepted by ICAO;
• Design, Development, Operation and Maintenance of International,

Domestic Airports and Civil Enclaves;
• Construction, Modification and Management of Passenger Terminals;
• Development and Management of Cargo Terminals at International

and Domestic airports;
• Provision of Passenger Facilities and Information System at the

Passenger Terminals at airports;
• Provision of Communication, Navigational and visual aids viz. ILS,

DVOR, DME, Radar, Airfield lighting etc;
62
• Modification, Expansion and strengthening of operation area viz.
Runways, Aprons, Taxiway, etc; and
• Human resource development through training process at its own

training establishment and on job factory training.
The organization has its head quarter at Delhi. The organization

operates through its two operational offices at IGI airport and
Safadarjung airport besides five regional headquarters at Delhi for
Northern Region, Mumbai for Western Region, Chennai for Southern
Region, Kolkata for Eastern Region, and Guwahati for North-East Region.
The organizational chart of the organization is depicted in fig 2.2.
ORGANIZATIONAL CHART OF AAI
CHAIRMAN
Company secretary
t r
^r ^r ^r 1 r
BOARD MEMBER BOARD MEMBER BOARD MEMBER BOARD MEMBER CHIEF
(Operations) (Finance) (Pers. & Admin) (Ping.) VIGILANCE
OFFICER
• Air Traffic • Finance 86 • Land • ARA Pig • Vigilance

Management Accounts Management • CNS Pig
• Regional HQ • Commercial • Law • Aviation
• Airports • Internal Audit • Personnel & Safety
• CATC • Key Administration • CP & MS
• Cargo Infrastructure • Public Relations • Engineering
• Flight Development • National Institute • PMQA
Inspection • Consultancy & of Aviation • RC & DU
• Equipment Coordination Management & • IPC
• Regional Research
Headquarters
Fig 2.2 Organizational Chart of AAI - Source: AAI Website
63
The org;anization (AAI) is persistently struggling to overcome the
affect of changing civil aviation scenario since its inception in 1995. The
organization though told to have done with good results, showing growth
in revenue and higher level of profitability but could not improve
customer satisfaction and airport infrastructure to world class
standards. The organization is yet facing difficulties with its change
initiatives started following merger. The conflict of merging staff
continues and the organization is still operating under two divisions viz,
International Division and National Division.
Air India Ltd:
Air-India came in existence way back in 1932 as a private airline

and later in 1953 was taken over by government and established as a
public undertaking organization to cater international sector. Recently,
Air-India has expanded its fleet by inducting 13 aircraft - three Boeing
747-400s and ten Airbus 310s on dry lease. Induction of these dry leased
aircraft has enabled Air-India to enhance frequencies to many existing
destinations and introduce several new flights. According to a review
published in September 2003 in Airline Business, an international
magazine, Air-India's ranking on the basis of revenue in 2002 has gone
up to 51 from 54 in the preceding year. Air-India's total issue and paid-
up Capital is Rs. 1538.4 million. The airline has been profited in most
years since its inception but in later years lost its prestige. In the
financial year ending March 31, 2003, the company carried 3.39 million
passengers and made a net profit of Rs. 1338.5 million on operating
revenue of Rs.5,658 billion; Passengers carried: 1.79 million; and
Passenger Load Factor: 69.7 %.
Air-India currently operates flights from Mumbai, and 11 other

Indian cities viz, Ahmedabad, Bangalore, Chennai, Delhi, Goa,
Hyderabad, Kochi, Kolkata, Kozhikode, Thiruvananthapuram and
64
Lucknow. Air-India's global network currently, region-wise, is UK:
London; Europe: Paris, Frankfurt; Asia Pacific: Bangkok, Hong Kong,
Jakarta, Kuala Lumpur, Osaka, Shanghai, Singapore and Tokyo; Gulf 8&
Middle East: Abu Dhabi, Al Ain, Bahrain, Doha, Dubai, Jeddah, Kuwait,
Muscat and Riyadh; USA 85 Canada: Chicago, New Jersey and New York;
and Africa: Dar-es-Salaam and Nairobi.
Indian Airline Ltd:
Indian Airline was established in 1953 as a National Airline to

serve the domestic sector of the country. Today, Indian Airlines, together
with its fully owned subsidiary Alliance Air, is one of the largest regional
airline systems in Asia with a fleet of 62 aircraft, 4 wide bodied Airbus
A300s, 41 of A320s Fly-by-wire Airbus, 11 Boeing 737s, 2 Dornier D-228
aircraft and 4 ATR-42. Indian Airlines flight operations center around its
four main hubs- the main metro cities of Delhi, Mumbai, Calcutta and
Chennai. Presently, airlines network spans from Kuwait in the west to
Singapore in the East and covers 75 destinations. The Indian Airlines
international network covers Kuwait, Oman, UAE, Qatar and Bahrain in
West Asia, Thailand, Singapore, Yangoon and Malaysia in South East
Asia and Pakistan, Nepal, Bangladesh, Myanmar, Sri Lanka and
Maldives in the South Asian Sub-Continent.
The airline has facilities of maintenance, including engine overhaul

for aircraft and ground equipment at all major airports and training
facilities for Pilots at Hyderabad. Commanders and Captains are trained
in all types of aircraft in the Indian Airlines fleet. State-of-the-art full
flight simulators are available for A300, A320 and B737. Indian Airlines
is presently fully owned by the Government of India and has total staff
strength of around 19600 employees. Its annual turn-over, together with
that of its subsidiary Alliance Air, is over Rs.4000 crores. Alliance Air and
Indian Airlines carries a total of over 7.5 million passengers annually.
65
Pawan Hans Helicopters Ltd:
Pawan Hans Helicopters Limited was incorporated in 1985.Pawan

Hans till date has flown over 3,00,000 hrs and carried over 52 lakh
passengers and has made over 11,50,000 landings. The organization has
total staff strength of about 767 including trained and experienced pilots,
engineers and other technical personnel. The organization has a fleet of
31 Helicopters which include 19 Dauphin - SA365N, 3 Befl 206 L4, 2 BeH
407, 2 R44 and 3 MI- 172 and 2 Dauphin AS 365 N3 are at your service
to take you anyplace, anytime with comfort and safety.
Current Scenario of Civil Aviation in India:
Conseqiaent to the liberalization policy adopted by India in 1991,

the aviation sector in India is rapidly growing and changing. The civil
aviation sector has also partially deregulated of its selected segments and
this has transformed domestic airline operations and airports
management. The choice of flights and quality of service of airlines has
increased, especially on metro sectors. Response of the government to
privatization and economic exigencies have also paid dividends as far as
airlines sector is concerned but much has not happened in airports. The
share of India in total world aviation traffic continues to remain
minuscule. India, during 2002, accounted only 24 lakhs tourist arrivals
compared to 715 mn world wide and 130 mn in Asia Pacific. World
tourism accounts for 10.2% of GDP, while in Indian foreign tourist
account is just 4.8%. As per OAG survey (2000) the air seat capacity has
increased in China by 4.85% during last decade whereas in India by a
mere 0.40%.
The International Civil Aviation Organization (ICAO) considers

India one of the most dynamic aviation market of the future. As per ICAO
traffic forecast, Indian air traffic will grow with an average of 7.0% up to
the year 2015 compared to 5.6% for Europe and 6.8% for South-Asia.
The available airport infrastructure, particularly at international airports
66
is not sufficient to handle such growing traffic and needs immediate
attention. The four international airport accounts for 42% of traffic where
as the available infrastructure at other domestic airport is under utilized.
The airports handled over 4.4 crore passengers in 2002-2003,

where domestic share was 29 mn and international 15 mn. The domestic
passenger traffic has increased 8% in 2002 despite adverse conditions
worldwide and the cargo has increased by 15%. The traffic and cargo
growth for next 5 years is forecasted to be between 5 to 7.5% per annum
for domestic and international traffic (AAI-Airport Traffic Statistics:
2002). It is reported that foreign exchange transactions of $22.5 bn are
directly facilitated by civil aviation and $96 bn indirectly through civil
aviation services (MCA Annual Report, 2002).
In India, legislative framework allowing ownership of airports by

citizens of India, companies or corporations registered in India, already
exist as per Aircraft rules 1937. In fact some small airports, owned by
private companies 85 even individuals already exist. Some of more well
known among others are Puttaparthi airport for SaiBaba Ashram in
Andhra Pradesh, Birlagram 85 Jamshedpur airport in Bihar. Further, an
international airport in Cochin has been established by private sector
with combined efforts of Kerala State Industrial Development
Corporation, Mallabar International Airport Society comprising of NRI's
and the work of creating private airports at Hyderabad, Banglore,
Mumbai and Goa are under active consideration.
CHALLENGES TO CIVIL AVIATION IN INDIA:
The aviation sector in India is passing through the crises. The

national airlines have reported losses of about $3500mn during 2002-
2003. The international Airport like Mumbai and Delhi are ranked at 80*^
and 109* respectively (ACI: 2002). The Airlines and airport
infrastructure needs turnaround development to meet the challenges. All
67
three public sector are over employed in comparison to statistics of well
performing organizations around the world in the same sector. The
average age fleet of Air India and Indian Airlines is about 17 years
against 6-7 years internationally. The public sector ownership of these
organizations, entailing multiple layers of extra commercial
accountability^ and cumbersome procedures, non-commercial orientation,
inability to expand in competitive market, inflexible labour policies, are
proving to be ineffective in the present competitive and globalized
environment. Given the country size and growing needs, a vibrant civil
aviation sector is essential for country's economy and civil aviation
growth in India.
The organizations are experiencing serious challenges triggered

due to changing government policies, deregulation, liberalization,
technological developments and global competitiveness. The sector is
passing through a transition phase as never before in its last five
decades. Experts argue that managing the sector in present manner is
untenable and incongruent with government's avowed objectives of
making air transport more affordable, enhancing regional air
connectivity, providing boost to tourism and developing world class
airports. The striking aspect of contemporary air transport airport
management is that the industry, which was for so long operated on
highly regulated bases, is now effectively being taken over by the impacts
of the customers and need to perform.
Recently, the Ministry of Civil Aviation has appointed a committee

(MCA: 2003) to prepare a road map for civil aviation sector to meet the
challenges triggered due to global competition, economic growth,
technological development and diminishing performance of public sector
organizations i.e. Air India, Indian Airlines and Airports Authority of
India. The issues faced by Airlines and Airports could be briefly
highlighted as fiscal regime, taxes and fares, sourcing of air transport
fuel, level playing field, Greenfield airports, airport infrastructure
68
development, airport security and private participation (MCA- Chandra
Committee Report: 2003). The relevant aspects of consideration are:
(i) Restructuring of airport with a view to develop world class

airports;
(ii) Privatization of Air India and Indian Airlines;
(iii) Promotion of general civil aviation;
(iv) Regulatory mechanism for technical and financial issues;
(v) Development of regional air connectivity within country;
(vi) Making air travel affordable, competitive and commercially

variation;
(vii) Aviation security and safety;
(viii) Liberalization of international air transport segment;
(ix) Improving of organizational effectiveness and service

performance;
(x) Human Resource - training and development.
NEED FOR CHANGE AT AIRPORTS AUTHORITY OF INDIA:
Airports Authority of India is currently vested with responsibility of

creating and managing airports. A few airports are, however, under the
control of other agencies. In recent past state governments and private
sector have also shown interest in airport business. Further, the
government is in process of implementing new civil aviation policy in view
to develop and manage airports by inviting joint ventures and private
participation. In response to the changing civil aviation environment the
organizational factors and various dimensions of change are reviewed in
context with the present research study to understand the trends and
69
identify the need for change in AAI. It is important to have initial
awareness of a need for change in response to organizational external
and/or internal pressures for change.
Organization Mission: The mission of the organization is stated as

"Progress through excellence and customer satisfaction with world
class airports and Air traffic services fostering economic
development". Though the mission of organization clearly specifies the
priorities of the organization as customer satisfaction, world class
airports and economic development but the organization is still
struggling to accomplish these mission objectives. Further, the change
initiatives started in 1995 by merging of two organizations are yet to see
their satisfactory conclusions. There exists no defined organizational
vision policy for development and management of airports in the country.
The government is further planning major changes in its civil aviation
sector including airports the civil aviation policy is under review.
Human Resource: The organization has approximately 21160

employees working in various discipline such as personnel,
administration, operations, planning, engineering, finance, accounts and
commercial which is almost one third of the total manpower in civil
aviation sector under government preview (MCA-Annual Report-2003).
As mentioned in earlier chapter, AAI has been created by merging two
organization erstwhile know as International Airports Authority of India
(lAAl) and National Airports Authority (NAA). Earlier, both the
organizations were working independently and had developed their own
work culture during the period thereby now understood experiencing
change resistance in its initiatives started in 1995, particularly
associated with human resource viz, fixing seniority, loosing career
prospects, job uncertainties at work etc. There is need for change in
human resources development polices to better the organizational
internal environment and uniformity in work climate and in the
organization.
70
Airport Infrastructure Development: Historically, air traffic at
Indian Airports has concentrated at top few airports. During 2002-2003,
the airports have handled 5. 6 lakhs aircraft movements involving 1.16
lakh international aircraft and 4.44 lakh domestic aircraft movements.
The passenger traffic handled during the year at these airports was 43.7
ran where 14.8 mn were international and 28.9 mn were domestic
passengers. The cargo load was 9.8 lakh MT that is 6.5 lakh MT
international cargo and 3.3 lakh MT domestic cargo. The airport wise
percentage share of total passenger traffic v / s capacity and the type of
airport is depicted in Annex Table 8.4 (Source: AAl Strategic Plan for
Development of Airports: 2002).
The annex table reveals that top 5 airports handle 72% of the total
traffic, 84% by next 10 airports and 89% by other 15 airports. The rest of
the airports either have a very low level of traffic or are having no traffic
at all. It is also observed that majority of airports passenger amenities
needs to be upgraded and capacity of some of the terminal also need to
be expanded. Non of Indian airports list in first fifty airports of the world
(AAI Statistical Traffic Reporter : 2004) and are yet to have status of a
world class airports. There is strong felt need for a turnaround change
in present management system of airports to make them more effective,
commercially variable and world class.
Customer Orientation: Airports Authority of India is a service

organization and as on date has monopoly in Indian aviation-airport
sector. The customer satisfaction is of paramount importance for the
organization and is also one of its mission objective. The organization
performance is affected by measures such as, inter-alia, customer
satisfaction, airport infrastructure and passenger facility standards. The
organization has developed methodology to measure its performance
inter-alia through customer survey conducted on half yearly basis. The
customer su]"vey results were reviewed and are depicted in table 2.2.
71
Table 2.2: Customer Satisfaction Index
DESCRIPTION 199S- 1996- 1997- 1998- 1999- 2000- 2001- 2002-

96 97 98 99 00 01 02 03
CSI Target - 75 75 75 75 75 75 75
Pax. 55 63 68 66 70 71 73 72
Terminal
CSI
(in Cargo 53 54 69 55 66 68 74 71
%) Terminal
ATS NA 70 70 57 76 75 76 72
Source: AAI Annual Traffic Statistical Report : 2002-2003.
The dynamic parameters of customer satisfaction are 90.56% for

excellent, 98.75% for very good and 75.0% for good. The results of
customer sui-vey reveal that the customer satisfaction index has never
increased be^ônd 75.0% during the last eight years and the trends are
repetitive for passenger terminals. There are strong criticisms of the
standards of passenger services at Indian airports when compared to
other countries in Asia, Europe and USA. The countries best two airports
at Mumbai and Delhi still do not find place in first best fifty airports of
the world [AAI Traffic Reporter 2003: Annex Table - 8 . 1 0 ) .
Financial Performance: The financial performance of an

organization is one of the parameter measure organizational performance
and its effectiveness. Financial status of the sample organization has
been reviewed for last five years 85 depicted in Table 2.3 (MCA-Annual
Report: 2003).
72
Table 2.3: Financial Performance of AAI
s. PARTICULARS YEAR OF PERIOD

NO
1997-98 1998-99 1999- 2000-01 2001-02 2002-
2000 03
A. Financial Status: Rs. In Rs. In Rs. In Rs. In Rs. In Rs. In

crores crores crores crores crores crores
1. Revenue 1279.64 1591.27 1691.28 1873.44 2244.84 2292.16
2. Expenditure 963.45 1255.49 1346.55 1514.36 1767.86 1910-90
3. Profit Before Tax 316.19 335.78 344.73 359.08 476.98 381.26
4. Profit After Tax 196.14 208.41 211.38 214.08 266.98 236.31
B. Capital structure
1. Government capital 325.13 337.63 350.13 365.09 388.79 404.74
2. Reserve & S u r p l u s 1104.61 273.53 1534.73 1715.58 2023.49 7212.59
3. Long term loans 422.06 466.06 445.82 394.77 315.81 225.40
4. Net worth 1224.45 1417.23 1691.15 1880.32 2142.01 2347.11
5. Capital employed 1148.85 1437.03 1852.45 2047.89 2396.59 2419.47
6. Working capital 147.92 216.46 404.59 492.50 714.62 717.29
The table results show that the financial performance of the

organization is satisfactory. However, it is observed that while revenue of
the organization have increased almost 100% in last five years the
expenditure has also increased proportionately at the same time. Table
indicates only a marginal increase in profits. In fact there was observed
decreasing trends during 2002-2003. This suggests that there is a need
to enforce change initiatives to optimize economy in expenditure and to
improve profit.
Air-traffic at Airports: The growth of air traffic in Indian airports

depends on world, regional and country GDP, political climate,
international trade, change in life style of upper and middle income
73
groups and infrastructure of airports. As per ICAO the air traffic in Asia-
Pacific region will grow at the rate between 4.3% to 6.7% during next five
years. lATA has projected an annual growth rate of 5.8% for India during
the period 1999-2014. The trend of change in traffic during last five
years handled at airports in provided in table 2.4. The trends indicate
need for change in organizational planning and development strategies of
the airport infrastructure to meet challenges being caused by changing
traffic trends.
Table 2.4: Traffic Handled at AAI Airports (1997-98 to 2002-03)
A / c Movements Passenger (in lakh) Cargo (in'OOO tones)

(in'OOO)
Year
Int'l Dom. Total Int'l Dom. Total Int'l Dom. Total
1997-98 98.2 317.5 415.7 127.83 238.49 366.32 488.2 217.4 705.6
1998-99 99.6 325.4 425.0 129.17 240.73 369.90 474.7 224.5 699.2
% change 1.4 2.5 2.2 1.0 0.9 1.0 -2.8 3.3 -0.9
1999-2000 99.7 368.0 467.7 132.93 257.42 390.35 531.8 265.6 797.4
% change 0.1 13.1 10.0 2.9 6.9 5.5 12.0 18.3 14.0
2000-01 103.2 386.6 489.8 140.09 280.18 420.27 557.8 288.4 846.2
% change 3.5 5.1 4.7 5.4 8.8 7.7 4.9 8.6 6.1
2001-02 107.8 402.1 509.0 136.25 263.59 399.84 560.2 294.1 854.3
% change 4.4 4.0 3.9 -2.8 -6.0 -5.0 0.05 2.0 0.09
2002-03 116.5 444.2 560.7 148.26 288.97 437.23 646.2 333.2 979.4
% change 8.1 10.5 10.0 8.8 9.6 9.4 15.3 13.3 14.6
Annual average 3.3 7.04 6.2 3.0 4.0 3.5 5.9 9.1 6.9
(5 years growth rate)
Source: . ^ I Annual Traffic Statistical Report : 2002-2003)
74
Historically, if we look at the growth rate of air traffic in India, the
international traffic witnessed 11% annual growth during 70's, 6%
during 80s, 4.5% during 90s and is forecasted to grow annually at 6%
during next ten years whereas domestic passenger traffic grown at 7%
during 70s, 5% during 80s and 90s and is forecasted to grow at 5%
during next ten years. The cargo traffic has witnessed growth trends
similar to the growth trends of passenger traffic that is 12% during 70s,
10% during 80s, 7% during 90s and forecasted at 7% during next ten
years. It can be seen from the annex table 8.3 that airports in India need
to developed further to meet the forecasted air traffic capacity and that
should be done in a well planned strategy as traffic growth is not rational
in all airports.
Recently, the government has appointed a high level committee to

prepare a roadmap for civil aviation, observing unsatisfactory
performance of civil aviation sector in India during last decade,
particularly after onset of economic reforms started in India since 1991.
As per some of recommended major changes in the organization are
restructuring of organization and privatization of airports (Chandra
Committee, Report: 2003). It is revealed that though three major changes
have already occurred in Indian civil aviation airport management in last
three decades, the country could not achieve world class airports. The
airports exist far behind in comparison to growth of the airport in Asian
Region and elsewhere around the world. The issues, like developing
world class airports, excellence in customer service, modernization of
airport infrastructure, privatization in airports, human resource
development still remains the subject of concern, review and in-depth
study.
*******
75
CHAPTER :: 3
REVIEW OF LITERATURE
^ Introduction
"^ Organizational Change
^ Management of Change
"^ Organizational Effectiveness
^ Limitation of the Prior Research Work
76
REVIEW OF LITERATURE t
.
INTRODUCTION:
^^ -^ y
While organisations today are facing a world of constant claSnge,

the subject has been attracting the attention of managers and
researchers alike. Besides explaining the nature and dimensions of
change the recent work on organisational change focused on the process
of managing change implementation. In this chapter an attempt is made
to present review of literature in the area of change management,
organizational effectiveness and management of change.
The chapter focuses on various change management studies
and models used by researchers and academicians in their research
studies of change management. The organizational effectiveness and
related aspects of change management are also discussed in the chapter.
Besides, throwing light on the evolution of the change management, the
chapter covers some most promulgated research works available in the
extant literature. The limitations of the prior research are also explained
to highlight the need of the present study.
ORGANISATIONAL CHANGE:
One of the early reviews of organizational change research was the

Annual Review of Psychology by Friedlander and Brown (1974). The
authors framed their review of research in the field in terms of 'target of
interventions' that led to change customers. The two broad categories of
interventions were people and technology, with the former emphasizing
organizational process such as communication, decision making,
problem solviag and later emphasizing organisational structures such as
task, methods, job design, organization design.
77
Friedlander and Brown (1974) framework is reflective of open
system theory and main conclusions from their review have been:
• Research showing changes in the techno-structural category was

clearer and more definitive than studies investigating the human-
processual approach. They contributed this difference to type of
measurement tools, that is, techno-structured change is easier to
measure than the more abstract and less objective human processes
domains; and
• Organization development is a long way from being the general theory

and technology of planned social system, we would like to see it
become.
Later Alderfer (1977) provided a review of the research up to that time

and concluded that the overall quality of research...is showing increasing
signs of both rigor and vigor as more careful studies...are being
conducted and reported. Alderfer, unlike his predecessors, did not use
an overall framework or model to discuss his review of the literature.
Fink et. al. (1971) provided a conceptual framework for describing how
organizational members and organizations react to a crisis (changed
situation). The researchers found that individuals go through four
different stages of transition during change, that is, shock, defensive
retreat, acknowledgment, adaptation and change. Moore and Gergon
(1990) also observe that most people experience changes in the manner
suggested by Fink.
With respect to more understanding of change, the work of

Golembiewski et. al. (1976) is enlightening who drew distinctions among
type of change and labeled them as alpha, beta and gamma change.
Authors explained that Alfa change concerns a difference that occurs
along some relatively stable dimension of reality and the change is
typically a comparative measure before and after an intervention. The
beta change is a re-calibration of the intervals along some constant
78
dimension of reality, where change may have occurred. The gamma
change involves change from one state of organization to another.
Golembiewski et al. (1976) assert that most evaluation research designs
consist of self reports giving before and after comparative measures.
Porras and Robertson (1992) have provided some useful

distinctions to understand organizational change more thoroughly -
planned versus unplanned change and first order versus second order
changes. Planaed change is deliberate and conscious decision to improve
the organization in some manner or change the system in a deeper way.
In unplanned change organization has to respond to some unanticipated
external change and the response is adaptive and often spontaneous.
First-order change, also referred as evolutionary change, involves what
we refer to as 'continuous improvement'. Second order change, also
referred as revolutionary change, is radical and more fundamental type
of change. Porras and Silvers (1991) has distinguished between first
order change as 'organization development' and second order as
'organization Ixansformation'.
In the most recent review of the literature, Weick and Quinn (1999)
organized their report according to episodic change and continuous
change. The phase episodic change is used to group together
organizational changes that tend to be infrequent, discontinuous and
intentional. The presumption is that episodic change occurs during the
period of divergence when organizations are moving away from their
equilibrium conditions. As per Weick and Quinn, the distinctive quality
of continuous change is the idea that small continuous adjustments
created simultaneously across units can cumulate and create substantial
change. Authors further describe that if the required change in episodic
or discontinuous than one should concentrate on the organization's
interface with external environment i.e. - mission, strategy, culture etc.
However, if required change resembles with continuous change than the
79
focus may be on targets within organization i.e. - reward systems, work
process, management practices etc.
Further, we briefly review the mini-theories related to organization

change, which help in understanding the concept better and provide
emphasis on individual, groups and the large systems.
Individual Emphasis: Skinner (1948) - positive reinforcement -

content for change is the reward system, particularly the application of
incentives on a partial positive reinforcement basis. The process focus is
on the work environment, with the intent of controlling the conditions of
how employees are rewarded. In this approach, the initial determination
is to clarify the performance behaviours desired and then administer
positive reinforcement accordingly.
Maslow (1954) and Herzberg (1956) - need theory - address

motivation and job satisfaction. Authors explained that the process focus
would enrich individual jobs that provide more autonomy, recognition,
achievement opportunities and empowering employees by giving them
more authority and decision making responsibilities.
Vroom (1964) and Lawer (1973) - expectancy theory - also focused

on motivation and the contents for applying expectancy theory is both
motivational and rewarding. Authors argued that the process focus could
be on changing of both organizational member's performance and the
reward system to ensure organizational effectiveness.
Hackman and Oldhan (1980) - j o b satisfaction theory- grounded in

both need and expectancy theories, content of change emphasizes three
primary psychological states that effect employees satisfaction i.e.
experienced meaning fullness of the work itself; experienced
responsibility for the work and its outcomes; and knowledge of results,
that is, performance feedback. The process focus is on work and job
design.
80
Group Emphasis: Lewin (1951) - the group as the focus of change-
explained individual behaviour as an interaction between a person's need
and personality and the field of forces impinging on the individual from
the external environment. Content, for application of Lewin's theory,
would be an analysis of perceived forces in the work environment and
what people perceive the norms and value to be. The nature and degree
of conformity to group standards also represent Lewinain content. The
process focus is on (i) changing group norms, (ii) reducing restraining
forces instead of increasing driving forces and (iii) increasing owned
forces and decreasing imposed forces.
Argyris (1971) - changing values through the group - value base is

largely represented by theory Y of Mc Gregores, i.e. people are not lazy,
want to do a good job, do not require close supervision and prefer work
that is meaningful and challenging. The content for Argyris (1971) are
values, at least espoused values in the organization, the substance of
decision, and whether the decision, when enacted, are congruent with
spoken beliefs and values on the part of the top executive group. Argyris'
process focus on central behaviour of executives. The overall change goal
is to reduce the gap between words and deeds.
Bion (1961) - the group unconscious - held the theory that a group
has an unconscious as an individual does; this collective unconscious
operates parallel to the conscious group and effect task accomplishment
when active. The content for Bion is purer and simply the collective
unconscious i.e. issues of authority. The process focus is to reduce the
effect of the basic assumption mode and enhance the work group mode
by staying focused on the task and being aware of the passage of time.
Large-system Emphasis: Likert (1967)-"participative management

- the one best way" - categorized organization according to management
approach and. declared for main categories as autocratic management,
benevolent autocracy management, consultative management and
81
participative management. The contents for Likert was quite specific and
clear, that is, four management approaches and how they are practiced
within each of seven behavioral functions; he described as leadership,
motivation, communication, interaction and influence, decision making,
goal setting and control. Likert process was the use of survey feed back
methodology.
Lawrence and Lorsch (1967) - it all depends -focus primarily on

three forms of relationship (i) the organizations relationship with its
external environment; (ii) relationships of units within the organization;
and (iii) the relationship between the organizational members and the
organization. The content for Lawrence and Lorsch are the interfaces and
the nature and characteristics of those relationships beginning with the
environment-organization interface. The process emphasizes internal
restructuring, conflict management and resolution, and how all of these
affect the relationship between management and employees.
MANAGEMENT OF CHANGE:
The review of research studies reveal that there exist many change
models which provide better understanding of management of change
and are explicitly used by researchers and change agents in their work.
Here, we review some of these organization change management models,
which represent an integration of content and process and have evolved
from both practice and theory.
Huse (1982) described the organizational development model of

change management as 'the application of behavioural science knowledge
in a long-range effort to improve an organization ability to manage with
change in its external environment and increase its internal problem
solving capabilities. Typically, the organizational development model of
change is planned and it attempts to consider and include all members
of an organization and top management supports the proposed change.
The objective of change are to improve working conditions and
82
organizational effectiveness; and an emphasis is placed on behavioural
science techniques that facilitate communication and problem solving
among members (Beckhard: 1969).
Quinn 8B Kimberly (1984) developed a model with four phases and

eight guidelines for managing transition change and can be summarized
as (i) strategic re-adjustment phase - analysis and clarification; (ii)
political adaptation phase - support and adaptability; (iii) cultural re-
development phase - sensitivity and involvement; and (iv) structural
routinization phase - control and structure.
Tannenbaun and Hanna (1985) building on the work by Fink et. al.
(1971) focused on the individual level of analysis and attempted to
explain psychological phases, people go through to adapt successfully to
change, as "holding on, letting go and moving on". Bridges (1986)
developed another model that focuses on the individual psycho dynamics
of the change process. Bridges identified three distinct phases as ending,
neutral zone and now beginning.
The motives that organizations are systems of integrated elements

embedded in and strongly influenced by a large system is not new. Burns
and Stalker (1961) and Lawrence and Lorsch (1967) produced interesting
research findings that represented a line between the internal
characteristics of an organization and the external environment.
Burns and Stalker (1961) examined the relationship between

internal structure of 20 British firms and the environments in which they
operated. This found that the firms that operated in relatively stable and
unchanging environment tended to have more highly structured and
formal interned arrangements than firms that operated in unstable
environment. They describe firms that operated in stable environments
as 'mechanistic' because they were characterized by many rules and
procedures and were dominated by a hierarchy of authority. The firms
that operated in less stable environments were described as 'organic'
83
because they tended to have a free flowing, de-centralized and adaptive
internal organization.
The effective change management process needs to diagnose

change environment of an organization before initiative actions for
change management process. In this regard, the concept of 'fit' or
alignment though has been criticized by some (for example: Wilson,
1992), can make an important contribution to effective change
management. It is argued that the concept has more validity when the
focus is on the management of incremental change when faced with
discontinuous change.
Diagnosing Environment Fit: The models reviewed primarily

concerned with (a) diagnosing the fit between the organization and its
environment, (b) diagnosing the organizations internal alignment, and (c)
open system models that provide greater attention to both internal and
external environment.
PEST analysis approach is generally used by change leaders to

examine the organization's environment and search for evidence of
change that might signal a problem or opportunity. The political factors
include new legislations, change in government policies, customer
orientation, employees protection, regulation in market forces and so
forth. The organizations that are influenced by international environment
need to be aware that how legislative change or changes in level of
political stability in different part of the world might influence the
organization. Economic factors include issues such as exchange rates,
fuel, security needs, trade cycles and cost of material/ technology. Socio-
cultural factors include demographic trends such as aging, education,
consumption patterns, and individual needs of leisure and so on. The
technological factors include issues such as research and development,
new technologies, improved service systems and so forth; the rate of
obsolescence and need to re-invest in infrastructure and people.
84
SWOT analysis focuses on Strengths, Weakness, Opportunities
and Threats. This approach facilitates in assessing of the organization's
strength and weakness, in addition to opportunities and threat that a
PEST analysis might reveal. Strebel's (1995) evolutionary cycle model
can be used to anticipate technological and economic changes in the
environment and initiate planned organizational changes. Strebel posited
that there is an evolutionary cycle of competitive behaviour and
suggested that given proper attention to competitive trends, the break
points (cycle phase-innovation and efficiency) can be predicted in
advance and change process initiated.
Diagnosing Internal Alignment: Researchers have practiced the

use of models in diagnosing the internal environment of the organization
and some widely used models are reviewed as under:
Weisbord (1978) presented his six box model as a practice theory

that synthesizes knowledge and experience for change agents. It provides
a conceptual map of six elements - purpose, structure, rewards, helpful
mechanisms, relationships and leadership - that can be used to apply
specific theories to the assessment of these elements in a way that can
reveal new connections and relationship between elements. It is an open
system model that recognizes the importance of organization-
environment relationships but focuses most attention on what needs to
be done internally to ensure that the organization becomes/remains a
high performance organization, able to adopt to external changes.
Weisbord argues that the effectiveness of an organization's

functioning depends on what goes on in and between the six elements.
Leadership is seen to have a special role to play in coordinating what
goes on in other five elements. Weisbord suggests that a useful starting
point for any diagnosis exercise is to focus on one major output; explore
the extent to which the producers and consumers of the output are
85
satisfied with it; and trace the reasons for any dissatisfaction to what is
happening in or between six elements that represent the organization.
Pascale and Athos (1981) 7 s ' model highlights seven elements of

organization that are seen to make an important contribution to
organizational effectiveness, however, it does not make explicit reference
to outcomes or to the external environment. The element of the model is
summerised as strategy, structure, systems, staff, style, shared values
and skills.
Diagnosing Internal and External Alignment: These models

attend to both internal and external alignment diagnosis of the
organizations and are widely used by management consultants. Some of
them are reviewed as below:
Nadler and Tushman (1980) congruence model conceptualizes the

organization as a transformation process that takes inputs from the
environment and transforms them into individual, group and
organization outputs. The transformation process includes four major
elements that is task, individuals, formal organizational arrangement
and the informal organization. Effectiveness is determined by the degree
of congruence that exists between the organization and its environment
and between the four internal elements of the organization. Strategy is
presented as an input that manages the organisation's alignment with
wider world. Nadler 85 Tushman recommended three steps for diagnosis
as (i) identify the system, (ii) determine the nature of the key variables,
and (iii) diagnose the state of fit. Change managers require range of
concepts and theories related to process models of change and diagnostic
models of change which help them in understanding of how to change
and what to change and managing the change effectively.
Tichy (1983) framework, focuses much more explicitly on

organization change. The model is built around a framework of technical,
political and cultural dynamics and each step in the process can be
86
analyzed according to these three aspects. Trichy's model of corporate
revolution is based on three phases and twelve steps viz, (i) Awakening
phase - involves creating a feeling of urgency, cleaning with resistance
and fighting resistance; (ii) Envisioning phase - involves-preparation for
the vision, nature of the visioning process and creating vision, and (iii)
Re-architecturing phase - involves assessing organization on
boundrylessness, social architecture at top, company wide involvement
in revolution, launching a workout effort, human resource systems to
support vision and continuos revolution.
Beckhard and Harris (1987) provided a model on managing large

scale change in complex organizations and can be considered one of the
first to shift attention to large-scale change in complex organizations.
Backhard & Pritchard (1992) further developed some aspects of the
framework. The synthesis of two models identified five stages as (i)
defining the need for change, (ii) defining the desired future state, (iii)
assessing present state and taking account of future state, (iv) transition
management; and (v) aligning the organization.
Beckhard and Haris (1987) also expanded Lewin's (1951) model of

group behaviour to organizations. They observed that any major
organizational change involves three distinct state conditions, that is, the
present state - is the state where organization currently is; the transition
state - is the set of conditions and activities that the organization must
go through in order to move from the present state to the future state;
and the future state - is the state that the management wants the
organization to go to. On the basis of these conditions, Beckhard and
Harris developed a model for managing the change process. The model
involves three basic activities - first, to set goals and define future state;
second, to diagnose the present state in relation to defined goals; and
third, to define the transition state.
87
The models we have reviewed thus integrate content and process,
at least implicitly but they are more about organizational functioning
than change, except the one by Tichy which is also not explicit about
cause and effect and neither are the authors of the other organization
models. Burke and Litwin (1992) has provided causal model of
organizational performance and change that try to respond to some of
these questions and points to causal linkages that determine the level of
performance and effect the process of change. Model is depicted in fig 3.1
below.
Fig. 3.1: The Burke-Litwin (1992) causal model of organizational

Performance and change.
External 4
i f environment
Leadership
Mission Organizational
^f
^ AT^'^^"^
and strategy 4k
^ /
/
k.
\i
X^ \ W
culture ^
k k
Management
/ ^ practices
r r
ik
Structure 9 ^ ^ Systems
^ 1r w
t
-T
^^^^-^^
^
Work unit
climate
4
iL
\r
Task and Individual
• ' - ^
individual $ needs &
< '
job kills Motivation values
ik
Individual and
^ organizational ^
W
Perfori nance ^
out out
Source: Burke, W W and Litwin, G H, 'A causal model of organizational

performance and change', Journal of Management 1992, (18-3), p. 528.
Burke and Litwin [1992] post that those elements located higher in
the model (see fig. 3.1) such as strategy, leadership and culture, exert
greater impact on other elements than vice-versa. The elements located
lower down in the model can have some impact on those above them,
position in the model reflects weight or not causal impact. The feedback
loops go in both directions: the organization's performance affects its
external environment and the external environment affects performance.
The remaining ten elements represent the process of transforming inputs
into outputs and reflect different levels of the process. For example,
strategy and culture reflect aspects of the whole organization. Climate is
an element associated with the local unit level and motivation, individual
needs, values, job person fit are individual-level elements.
Burke and Litwin [1992] model is a more predictive rather than a

prescriptive. It also differentiates between two types of change that is
transformational change that occurs as a response to important shifts in
the external environment, and transactional change that occurs in
response to the need for more short-term improvement. It also specifies
the nature of causal relationships and predicts the likely effect on
changing certain elements rather than others. The decision about where
to intervene first is influenced by the aim that either to secure
transformational or transactional change. The model elaborates these
two distinct sets of organizational dynamics and one associated with
organizational transformation and need for a fundamental shift and
other associates with behaviour at every day level. The elements in the
top half of the model - external environment, mission and strategy,
leadership and organizational culture - are referred to as the
transformational factors. The changes in these elements are likely to be
caused by direct interaction with external environmental forces and will
require significantly new behaviour from organization members. Burke
argues that the transformational change is more closely linked with
89
leadership and transactional change is more associated with
management. Fig (3.2) and Fig (3.3) display these factors of change.
External ^
k'
environment
^
^
1r
Mission
I
Leadership
1r
^ Ai ^ Organizational
and strategy ^ culture
ik i k
yr
Individual and
• orRanizational ^
F
performance ^
Fig. 3.2: The transformational factors of Burke Litwin model.
Management ^
r Practice
w ^2
V i k
^r
Structure ^ ^ Systems (policies
^ 1^ w
and procedures)
ik Work unit
1r
Task performance ^
climate
r
Motivation ^
^
k
P
I
Individual needs
and individual ^ w and values
skills abilities
T
Individual and
^ ^
w OlgttlllZ, ^
perforr nance
Fig. 3.3: The transactional factors of Burke-Litwin model.
90
The elements of the model are similar to Burn's (1978) conception
of transformational leadership, but of course in an organizational
context. A change in any of these elements means that the entire
organization is affected and the change is discontinuous and
revolutionary in nature. The remaining elements refer to as the
transactional factors. These elements concern more of day-to-day
operations of the organization and with respective to change they refer to
as continuous improvement and evolutionary.
Beer, Eisenstat and Spector (1990) emphasize that change is best

achieved through an approach termed 'task alignment'. The approach
refers to a change effort, which is focused on the organization's central
competitive challenge in contrast to the more unfocused and state driven
programmatic change efforts. Their model termed that the critical path to
corporate renewal has six steps that is (i) mobilize energy for change
through joint diagnosis of business problems; (ii) develop a shared vision
of how to orgEinize and manage for competitiveness; (iii) foster consensus
for the new vision, competence to enact it and cohesion to move it alone;
(iv) spread revitalization to all departments without pushing it from the
top; (v) institutionalize revitalization through formal policies, systems and
strictures; and (vi) monitor and adjust strategies in response to problem
in the revitalization process.
Further, review of the model point out that key similarity between
these models is that all of them follow basic sequence of change process,
diagnosing change, initiating change, than merging the transition and
finally sustaining momentum. However, within these basic phases, there
are considerable differences in the sequence of steps. Most models agree
that the change process needs to start with diagnosing the current
situation and establishing the need for change. Some model emphasize
more the diagnosis aspect (Quinn and Kimberly: 1984) while others focus
more on establishing a felt need for change (Tichy: 1983).
With regard to the other steps in managing the transition phase,
there is less agreement on any specific sequence of steps. All authors,
except Tichy, observe that transition management includes both detailed
planning and learning while doing. Quinn and Kimberly and Tichy also
focus on aspect of dealing with resistance to change. All authors agree
that models to sustain momentum and miakes the change semi-
permanent, the changes need to be institutionalized by adapting systems
and structures to the behavioural changes that have been accomplished.
The models of Weisbord, Nadler and Tushman, Tichy, and Burke-

Litwin are based on open system theory and consequently include the
external environment and performance. These models refers to
organization direction in one way or other - purpose, mission, strategy,
leadership, culture and account for structure and people.
ORGANIZATIONAL EFFECTIVENESS:
Change management is about modifying or transforming

organisations in order to maintain or improve their effectiveness. A
review of studies on the subject is carried out some of them are
presented have to understand the concept better. Blake and mouton
(1964) describe an effective organization to be both production/service
centered and employee centered. Katz and Kehn (1966) stressed that
effective organizations are characterized with growth, survival and
control over environment. Friedlonder and Pickle (1968) focused on
profitability, employee satisfaction, and societal values as measures of
effectiveness. Tsui (1990) conceptualized effectiveness in a multi-
dimensional concept where each dimension measures the satisfaction of
stakeholders i.e. employees, customers and owners.
Kotter (1980) describes mix structural elements, that is, external

environment, employees and other tangible assets, formal structure, job
design and operating system, internal social system technology and
dominant coalition - the objectives and strategies. In his integrative
92
model of organization dynamics he argued that over short-term,
organization effectiveness can be defined in terms of the course effect
relationship that link all the elements of the system together; and over
the medium term, the effective organization is one that is capable of
maintaining its short run effectiveness by maintaining key process
elements in an efficient and effective state.
Congruency theorists interpret the results of these and other

studies as offering support for a broader proposition that the Tit'
alignment between an organization and the environment and also
between the various internal elements of the organization is a critical
determinant of organizational effectiveness. Kotter argues that because of
the interdependence among all the elements, if one or two elements
emerge as the driving force the natural tendency is for the others to
follow. They would adapt to the driving force in order to maintain 'fit' or
alignment (equilibrium seeking disposition of systems). Nadler and
Tushman (1980) also highlight the effect of the congruency of the
component part of the organization on organizational effectiveness.
Peters £ind Waterman (1982) and Peters and Austin (1985) noted in
their books 'In search of Excellence' and a 'Passion for Excellence' that
effectiveness is more likely to emerge from organization culture which
encourages accountability, synergy, cross-cultural skills, managing
interfaces and financial realism.
With a view to examine the quality of management practices in

public enterprises, Nalini (1987) and Omar (1990) analyzed the
perception of their employees pertaining to different characteristics of
management systems of organisational effectiveness. Pettigrew and
Whipp (1991) conclude in their study of various firms that there are
observable differences between the ways in which more efficient firms
manage change compared to less efficient firms i.e. effective organization
structures are more conclusive to change. The organizational culture and
93
management style has important effect, by creating a climate supportive
to change.
Carnall (1999) defines efficiency as achieving stated mission and

goals within given resource constraints. His definition of effectiveness
includes the efficient use of resources to achieve immediate goals but
also embraces the need to adopt to changing circumstances in order to
remain efficient over the long period. Managers or agents of change affect
the way an organization respond to change and influences organizational
effectiveness on change. One approach to the study of change
management portrays the manager and other organizational members as
pawns affected by change rather than as agents who can affect
organizational effectiveness on change. The deterministic view is that the
ability of managers to influence change is limited because the main
determining forces lie outside the organization. The voluntarism view is
that managers can make an important difference. This approach
emphasizes the role of human agency and asserts that managers can
intervene to affect change in ways that will either promote or undermine
organizational effectiveness.
LIMITATIONS OF THE PRIOR RESEARCH:
Over the last 100 years, a range of theories has emerged on how to
manage change and organize work (Thornhill: 2000). This large body of
knowledge has not provided any lasting answers, as change involves a
movement to some future state that comprises a context and time that
remain unknown. Although, there are enough research theories that
explain change, considering the present scenario in Indian civil aviation,
we feel that there is a great value in studying change management
practices and further our understanding on change management, need of
lasting change, consequences of change process, and organizational
performance and effectiveness.
94
While scanning the related literature on change management, it is
observed that this vital area of research has remained, by and large,
neglected from the researcher's attention in India. Although the necessity
of change for progress and to stay fit in present globalized environment
are widely accepted in the Indian management circles but not much
research has been done to evaluate the efforts the Indian organizations
are making in this direction (Kumar: 1967). Malhotra (1985) points out
that management of most Indian organizations is insensitive to the
attitudes and values of their employees, resulting in the imposition of
borrowed western organization practices without proper study, which
mostly results in unexpected and un-desired results of change initiatives.
Alderfer (1977) provided a review of the research up to that time

and concluded that 'overall quality of research' is showing increasing
signs as more careful studies are being conducted and reported. Alderfer
did not use an overall framework or model to discuss his review of the
literature. In a subsequent summary of theory and research in
organization change Faucheux et. al. (1982) wrote a wide-ranging cross-
cultural reviews on organizational change and reported that there
remained a paucity of good research.
Beer and Walton (1987) in their study stated that organization

change research suffers from problem such as the interconnectedness of
various parts and the context changes that are occurring are over looked.
Most research on organization change do not determine that how
permanent a change may be, and that the history and environmental
context are often ignored and the research often does not fit the needs of
users.
There is perceptible evidence from the above reviews, that while

some studies on change management have been carried out in the
context of foreign organizations, very little studies have been conducted
in India. There is no comprehensive research work available on change
95
management in civil aviation, particularly in the context of Indian civil
aviation, after 1991, when the Indian economy was opened up for global
competition and mergers, acquisitions and privatization of organizations
became perpetual.
96
CHAPTER :: 4
RESEARCH METHODOLOGY
^ Introduction
^ Sample Design
^ Techniques of Data Collection
^ Measures used in Study
^ Data Processing and Analysis
^ Statistical Treatment of the Data
97
RESEARCH METHODOLOGY
INTRODUCTION:
Kerlinger (1978) reported that all research designs mainly have

three purposes that is (i) to provide answer to research
questions/objectives; (ii) to control variance; and (iii) to control the effect
of contingency factors. A good research design enables the researcher to
answer research questions as validly, objectively, accurately and
economically as possible. In this research study, we have tried to provide
quality work selecting and using various measures carefully.
The preceding chapters described conceptual background of the

organisational change, organisational effectiveness and need for change
in civil aviation and presented the review of literature related to the
present study. The present chapter discusses the research methodology
used for carrying out the study and achieving the set objectives. The
methodology used in study is presented under the dimensions of sample
design, data collection, survey instruments and the methods of analysis.
The present study has been proposed to offer an understanding of

change management in relation to demographic factors, change values
and organization environmental factors. Situational variable like need for
change, areas of change and attitude towards change have also been
studied as outcome variable in addition to the organization factors which
are affecting the organizational performance and change. An attempt also
has been made to diagnose the organizational environment for change
and its impact on organizational effectiveness by use of a change
management model.
SAMPLE DESIGN:
The organization chosen for the study is the mainstay of civil

aviation in India. The sampled organization, Airports Authority of India
(AAI) is persistently struggling to over come the affect of changing civil
aviation scenario in the country. The organization though told to have
done with good results, showing growth in revenue and higher level of
profitability, but has not been able to improve customer satisfaction and
develop world class airports since its inception in 1995. The organization
is also facing difficulties with its change initiatives started in 1995
consequent to the merger of two organizations. AAI, as on date, manages
126 airports, which include 11 international airports, 87 domestic
airports and 28 civil enclaves at defence airfields. The manpower working
in different departments at various airports, is one of the important asset
of Airports Authority of India, being highly technical service organization.
In view to have a more realistic and widely spectrum

representation of the organisation, considerate efforts have been made to
select respondents from different managerial levels, age groups, different
departments, education and experience from various
airports/departments/work units. The study sample was based on non-
probability incidental sampling. The sample consisted of executives from
senior management, middle management and first management level and
had represented vide spectrum of organization involving corporate head
quarter, regional headquarters, international and domestic airports. The
questionnaire was sent to 220 sample respondents. The response was
quite good since 153 i.e. 70 % respondent responded positively. The
information collected through the multistage stratified random sampling
design was analyzed in respect of various demographic variables. A bird's
eye view of the sample distribution is presented in table 4.1.
99
TABLE: 4.1
SAMPLE REPRESENTATION
AGE WISE (AGE) REPRESENTATION (N= 153)
S. No. Age Group Frequency Percent

1 40 Yrs a n d below 69 51.10
2 41 Yrs to 50 Yrs 60 39.22
3 51 Yrs a n d above 24 15.68
MANAGEMENT LEVEL (LEV) REPRESENTATION (N=153)
S. No. Management Cadre Frequency Percentage

1 First Level Management 39 25.49
2 Middle Level Management 84 54.90
3 Senior Level Management 30 19.61
EDUCATION WISE (EDU) REPRESENTATION (N=153)
S. No. Type of Education Frequency Percent

1 G r a d u a t e / P o s t Graduate 39 25.49
2 Engineering Diploma/Degree 75 49.02
3 Management Diploma/Degree 39 25.49
DEPARTMENT UNIT (DPT) WISE REPRESENTATION (N= 153)

S. No. Name of Department Frequency Percent
1 Operation/ Communication Department 93 60.78
2 Engineering Department 48 31.37
3 General Administration Department 12 7.85
LENGTH OF SERVICE (EXP) WISE REPRESENTATION (N=153)
S. No. Length of Service Frequency Percent

1 10 Yrs a n d below 18 11.76
2 llYrs to20Yrs 69 45.10
3 20 Yrs a n d Above 66 43.14
100
TECHNIQUES OF DATA COLLECTION:
Cummings and Worely (2001) provides a useful discussion on

techniques of data collections i.e. interviews, questionnaires,
observations and unobtrusive measures. For achieving the objectives of
the study and testing of the laid hypotheses, the data has been collected
from both primary and secondary sources. Since the organization under
study had a wide spread all over the country, the primary data has been
collected from the representative sample of managers from various
airports, departments, and work units through a well-structured
questionnaire and in-depth open-ended interviews. The personal
interviews were conducted with some officials who were selected
purposely to learn more about change management practices in the
airports. The secondary data was collected from various sources such as
journals, books, periodicals, annual and statistical reports of the
sampled organization, Ministry of Civil Aviation, and International Civil
Aviation Organisation.
The questionnaires were dispatched to sample respondents

enclosed with a covering letter. The sample respondents were requested
to complete the questionnaire and return the same. The respondents
were requested to go through and answer all the statement as honestly
and completely as possible. Respondents were assured for confidentiality
of information and name and designation were put as optional measures.
Precautions were taken during the process of data collection as below:
• The subjects were made confident that information provided by them

shall be kept confidential;
• The attempt was made to include people from all departments,

representing wide spectrum of management; and
• The subjects were told to give free, frank and honest responses as
much as possible.
101
The questionnaire has been designed in such a manner so that it
helps to elicit the required information from the respondents. It
contained questions on different dimensions of organisational change
and on the process of management of change besides demographic data.
The questionnaire consisted of statements, which were spread over into
four parts, viz, demographic profile of the respondents (8 questions)
organizational functional effectiveness (22 questions), organizational
change dimensions (15 questions) and organization performance and
change elements (36 questions). The part one of the questionnaire deals
with demographic data. The part two has consideration on organizational
functions that deal with five key elements of the organizations, that is,
general management, people, finance, customer satisfaction and
development. The part three consists of questions related with situational
variable of organizational change, that is, need for change, employees'
attitude towards change and areas of change. The part four of
questionnaire is developed based on Burke-Litwin causal model of
organizational performance and change and consists of questions related
with external environment, mission and strategy, leadership, culture,
management practices, structure, systems, work climate, task
performance and skills. Motivation, individual needs and values, and
individual and organisational performance output.
MEASURES USED IN STUDY:
With a view to test the laid down hypothesis in the study and for
the purpose of studying the impact of various change elements on the
organisation performance, following measures are used in the study:
Measure of Personal Information:
The measure of personal information included questions regarding

the respondent's age, education, management level, length of service and
work unit. This also provides information on salary, area of work and
experience in the organization.
102
Measure of Organization Functional Analysis:
The questionnaire part two was designed to monitor and analyze

organization functional strengths and weaknesses. The questionnaire
techniques focused on quantitative as well qualitative comments. The
questionnaires allow us to identify the origination's capabilities and
resources and how well it is exploiting them. The respondents were
desired to rate their response on a 5-point scale as was done by Colin A.
Carnall (1990) in his study of assessing organizational effectiveness and
organizational diagnosis. The five factors were assembled into four/ five
questions each to gauge the factor results more variedly and accurately.
The questionnaire consisted of 22 statements distributed in the following
way:
S. No. Organizational Factor Component No.
1. General Management 1,2,3,4,5
2. Human Resource 6, 7, 8, 9
3. Finance Resource 10, 11, 12, 13, 14
4. Customer Satisfaction 15, 16, 17, 18
5. Development 19, 20, 21, 22
The items were scored on a five-point scale with the following level:
1. Strongly Agree
2. Agree
3. Undecided
4. Disagree
5. Strongly disagree
103
Measures of Situational Variables of Change:
The part three of the questionnaire was designed to analyze the

people attitude towards change, need for change and the areas of change
and were based on Kotter and Schlesinger situational variables that can
influence choice of change implementation strategies. This study has
been carried out to analyze and for the purpose of in-depth and intensive
study of peoples attitude towards change and to identify areas of need-
felt for change in view of the ongoing change process in the organization.
The questionnaire was developed using Carnell diagnosis of

organization in conjunction with other measures, data needed for
studying the change aspects in the organization and or its sub-parts. The
scale had fifteen items and the representation of different components
according to statement number is given as below:
S. No. Situational Variable Component No.
1. Need for change 23, 24, 25, 26, 27
2. Areas of change 28, 29, 30, 31, 32
3. Attitude towards change 33, 34, 35, 36, 37
The questionnaire items were scaled on a five-point scale in which

response vary from 1 to 5 and the response categories are:
1. Strongly agree
2. Agree
3. Undecided
4. Disagree
104
Measure of Organizational Performance and Change:
The part four of questionnaire on organizational performance and

change was prepared using the literature, quality studies in the field of
change management and models of organization performance and
change. Burke-Litwin (1992) has identified twelve elements of change
that demonstrate and consequence the change management in an
organization. Por the purpose of the present study, we have used all the
twelve elements and analyzed them in view to identify the need and areas
of change in the organization as well as to identify the type and depth of
required change whether transformational or transactional. The twelve
elements and their validity for the study is discussed briefly as below:
• External Environment- concerns with forces or variables outside

organization that influence or will shortly influence organizational
performance. These forces include variables such as customer
satisfaction and behaviour, market competition, government
regulations, political circumstances, country financial and economic
conditions and changing technology (Pfeiffer and Salancik: 1978).
Mission and Strategy - concerns what the organization is all about, its
purpose and primary goals. The organization strategy concerns that
how mission objectives are to be accomplished. Of late, the term
vision has emerged as a popular organization and leadership concept.
The vision is more associated with leadership element in the model.
The mission is present and concerns ultimate purpose and vision
addresses the future and concerns aspirations and defined outcomes.
• Leadership - is associated with the behaviour of senior executives,

and appropriates so, leadership is exercised throughout an
organization. The primary association in the study is with providing
direction whether it comes from the chief executive officer or line
supervisors and mean - persuasion, influence, serving followers,
acting as a role model. Leadership is about vision; change; using one's
105
intuition; influence; persuasive a n d presentation skills, a n d rewarding
people via personal praise and also providing opportunities to learn
new skills (Bennis and Nanus: 1985, Burke: 1986).
• Culture - m e a n s the n o r m s we confirm to, the values we believe in,

the way we do things and the m a n n e r in which these n o r m s and
values are communicated (Deal and Kennedy: 1982). The history of an
organization is also important for u n d e r s t a n d i n g culture.
• S t r u c t u r e - refers to the m a n a g e m e n t of organization function i.e.

human resource management, accounting, customer service,
operational u n i t s (or regional units), decision making authority, a n d
lines of communication and relationship t h a t lead to implementation
of organization mission goal and strategy (Galbraith: 1995).
• Management Practices - addresses what m a n a g e r s do each day to

carry out the organization strategy. Practices, in this case, refer to a
particular set of specific behaviors. An example of a m a n a g e m e n t
practice might be to encourage direct report a n d associates to take
initiatives regarding innovative approaches to various task and
projects. In practice, two different m a n a g e r s may encourage direct
reports a n d associates to same degree, b u t how each one does it
behaviorally a n d specifically may differ and matter (Luthans: 1988).
Systems - concerns with policies and procedures t h a t are designed to

help a n d s u p p o r t organizational m e m b e r s with their job a n d role
responsibilities. The system element includes s u b elements such as
management information system, organization reward system,
performance appraisal, setting of targets, budget process a n d variety
of control systems etc. The system in model covers lot of s u b elements
(Lawler: 1990).
106
• Climate - is the collective perceptions of m e m b e r s with the same work
unit. These perceptions include - how well they are managed in
general, how effectively they believe the work of other unit, how they
feel about their performance, how involved they are in decision
making etc. (Ashkansy et. al. 2000).
• Task Requirements a n d Individual Skills/Abilities - provides job-

person m a t c h - the degree to which there is congruence between the
r e q u i r e m e n t s of one's job, role, responsibilities a n d knowledge, skill
a n d abilities (i.e. competence) of the individual holding the job (Burke
a n d Pearlman: 1988).
• Individual Needs and Values - is the element on the other side of

motivation look from task requirements a n d individual skills/abilities,
meaning t h a t these two categories influence motivation significantly.
Needs a n d values concern the extent to which one's needs is met on
the job. The arrow connecting culture with this element represents
potential for congruence between the individual a n d the organization
(Meglino a n d Ravlin: 1998).
• Motivation - is one of the primary function of organizational leaders

a n d m a n a g e r s to establish the proper goals, t h a t is, goals t h a t one
organizationally feels important and will respond to individual needs
for ends such as achievement, meaningful work, reasonable
a u t o n o m y on the job, recognition, and so on. The job-person match
a n d congruence between the goals a n d values of the organization and
the individual's need and values contribute significantly to work place
motivation. Katzell and Thompson (1990) provide the detailed
description a n d definitive statement on the n a t u r e of work motivation.
• Individual a n d Organizational Performance - refers to outcomes and

results of all the t h r o u g h p u t activities t h a t in t u r n r e s p o n s e s to the
external environment (input). The performance in general is defined
a n d m e a s u r e d by indices such as productivity, c u s t o m e r satisfaction,
107
quality of service, profits, development a n d so forth. Cameron a n d
Whetten (1981) and Kaplon and Norton (1996) provide deeper
u n d e r s t a n d i n g of performance especially at organizational level.
The questionnaire consists 36 s t a t e m e n t s on the basis of above

discussed twelve elements of change. The representation of different
component elements are given below:
S. No. Element C o m p o n e n t No.
1. External Environment 38, 39, 40

2. Mission/Strategy 41, 42, 43
3. Leadership 44, 4 5 , 46
4. Culture 47, 4 8 , 4 9
5. Management Practice 50, 5 1 , 52
6. Structure 53, 54, 55
7. Systems 56, 57, 58
8. Group climate 59, 60, 61
9. J o b Match/skills 62, 6 3 , 64
10. Individual n e e d s / v a l u e s 65, 66, 67
11. Motivation 6 8 , 69, 70
12. Organization/individual performance 7 1 , 72, 7 3 , 74
All item components were scored in a five-point scale with

response categories varying from 1 to 5 as below:
1. Strongly agree
2. Agree
3. Undecided
4. Disagree
108
Application and Validity of the Model: The review of research
literature in preceding chapters leads us to conclude that Burke-Litwin
model represents organizational reality to some degree and that we can
apply it with a reasonable amount of confidence for (a) adequately
understanding current organizational dynamics; and (b) understanding
how to steer change in a way that performance of an organization could
be improved. The researcher has used the model in cases of organization
change in the organizations for example is British Airways and Dime
Bank (Burke: 2002) and describe support for the model's heuristic value.
As could be seen from the depicted model in previous chapter, the
fundamental premise of the model is that planned change follows the
flow from top or external environment, to bottom or performance of the
organisation. The arrows connecting the boxes travel in all directions -
down, up and laterally, to reflect open system theory fundamentals.
Those elements points downward presumed to carry more causal weight
and therefore the premise is that external environment has the greatest
impact. In side the organization transformational factors
mission/strategy, leadership and culture have greater impact and then
comes the transactional factors as portrayed in the model.
DATA PROCESSING AND ANALYSIS:
The data collected through primary and secondary sources has

been tabulated and subjected to some sophisticated process for analysis
and interpretation in the study. The analytical procedures were used to
organize information that included processing, coding, tabulation and
analysis of data. As the questionnaire was not pre-coded, first the coding
of the questionnaire was done and then data was identified and
tabulated in different forms; variable codes and labels. All the 74 items of
the questionnaire and demographic information were indexed for final
analysis are depicted in table 4.2.
109
Table 4.2 : Data Computation & Definitions
S. No. Variable Variable Description Variable

Level Component
1 EE External Environment 38,39,40
2 MS Mission / Strategy 41, 4 2 , 4 3
3 LD Leadership 44„45,46
4 WC Work Culture 47,48,49
5 MP Management Practice 50,51,52
6 ST Structure 53,54,55
7 SS Systems 56,57,58
8 GC Work Group Climate 59,60,61
9 JM J o b /Skill Match 62,63,64
10 NV Individual Needs/Values 65,66,67
11 MV Motivation 68,69,70
12 PF Performance 71,72,73,74
13 GM General Management 1,2,3,4,5
14 HR H u m a n Resource 6,7,8,9
15 FS Financial Resource 10,11,12,13,
16 CS Customer Satisfaction 15,16,17,18
17 DV Development 19, 20,21,22
18 NOC Need for Change 23,24,2526,27
19 AOC Areas of Change 28,29,30,31,32
20 ATC Attitude towards Change 33,34,35,36,37
STATISTICAL TREATMENT OF THE DATA:
The raw data was tabulated and each variable studied. Besides the
methods of interpretation and comparison of average means and
percentage mean scores, summary statistics like mean averages, analysis
of variables, f-test of significance, coefficient of co-relations have been
used to study the association between perception of respondents
pertaining to organisational management, organisational environment,
organisational performance and change. The computation of the raw data
was organized in order to its analytical and interpretive treatment and to
carryout the following statistical analysis:
(i) Descriptive analysis
(ii) Inferential analysis
(iii) Correlation analysis
(iv) Interpretation analysis
Descriptive Analysis: The descriptive analysis was basically done

with an objective to analyze the mean scores, the standard deviation and
the percentage mean scores to assess average response of the
respondent towards organization general management, organization
environment and organization performance and change.
Inferential Analysis: The inferential statistics that also included

the analysis of variance (f-test) was computed to determine whether
significant differences existed in the various demographic variables and
dimensions of change.
Co-relation Analysis: The correlation analysis was carried out in

order to understand the relationship of causal variable and intervening
variables namely personal profiles, organizational factors of effectiveness,
change elements and situation variables. The Pearson's product
coefficient of cor-elation was computed.
Interpretation Analysis: The interpretation analysis was carried

out to diagnose information from the conceptual model and to identify
what needs to be changed to achieve a more desirable state of affairs for
organization under study. Burke-Litwin casual model of organization
performance and change was used to identify the elements most in need
for change, type of change required and how the change elements
influence the organization effectiveness and overall performance.
11
The overall research methodology was developed after study and
validity considerations required for the study. The next chapter presents
detailed findings and statistical results of the study in the area of change
management in civil aviation.
'krk-k-k'k'k-k
112
CHAPTER :: 5

(RESULTS AND DISCUSSIONS)
Diagnosis of the Organization

Dimensions of Organizational Change
Change Across Demographic Variables
Management of Change at AAI
113
The present chapter discusses the findings and analysis of the

data in the right of the objectives of the study and seeks to test the
hypothesis laid in the study. The findings of the study are based on
qualitative and quantitative analysis of the data, relating to the selected
variables of the study. The findings pertaining to organizational
performance and change have been presented along vîth their
descriptive presentation. The findings and the discussions of the study
have been organized under the rubric of diagnosis of organisation,
dimensions of organisational change, management of change and overall
perception of respondents towards organization. The summary statistics
pertaining to organization general management, organizational
environment and organization performance and change have been
analyzed to arrive at authentic conclusions.
DIAGNOSIS OF THE ORGANIZATION:
The statistical analysis of organization has been presented in four

tables. The table 5.1 portrays the perception of employees towards the
components of general management namely management, human
resource, financial resources, customer satisfaction and development of
the organization. Table 5.2 depicts the perception of employees towards
element of organization performance and change. The table 5.3 portrays
the perception of employees about situational dimensions of change, that
is, need for change, areas of change and attitude towards change. The
table 5.4 presents the perception of employees towards organization i.e.
general management, organizational environment and organizational
change.
114
The table 5.1 portrays the perception of employees towards the
components of general management namely, management, human
resources, financial resources, customer orientation and development of
the organization.
Table: 5.1 Perception of Respondents towards

Components of Organizational Management (N= 153)
S. No. Statements Mean Std. Dev % Mean

Score
OMl 2.00 0.82 40.00

0M2 2.31 1.00 46.20
1. Management 0M3 2.67 1.03 53.40
0M4 2.67 1.04 53.40
0M5 2.07 0.93 41.40
HR6 2.18 0.65 43.60
2. Human Resource HR7 2.27 0.77 45.40
HR8 2.53 0.90 50.60
HR9 2.13 0.75 42.60
FSIO 1.62 0.89 32.40

FSll 2.16 0.99 43.20
3. Finance Resource FS12 2.49 1.11 49.80
FS13 2.40 0.93 48.00
FS14 2.80 0.87 56.00
CF15 2.14 0.77 42.80
4. Customer Focus CF16 3.14 0.95 62.80
CF17 2.61 0.99 52.20
CF18 2.61 1.05 52.20
DV19 3.43 1.09 68.60
5. Development DV20 3.10 1.06 62.00
DV21 2.94 1.02 58.80
DV22 3.31 1.05 66.20
115
The table 5.1 reflects that, in case of organizational management,
the perception of employees ranges from undecided to agreement with
mean ranging between 2.67 to 2.00, standard deviation between 1.04 to
0.82 and a percentage mean score from 53.4 to 40.0. The mean score is
closer to 2.00, in case of three statements for management, namely
organization mission and its objectives are clearly defined; management
has autonomy and authority in implementing its plans and policies; and
the management is committed towards superior performance of the
organization. This reflects that employees are in agreement with these
statements pertaining to the general management. In case of the other
two statements of the management, the employee's perception is near to
uncertain category on the Likert scale.
Similarly, in the area of human resources, the respondents by and

large are in agreement with all the four statements. The mean score of
these statements range from 2.18 to 2.53, standard deviation between
0.65 to 0.90 and percentage mean score between 42.6 to 50.6. This
reflects that the employees are in agreement with human resource
policies of the organization. In a similar way, the respondents are in a
strong agreement with most of the statements pertaining to financial
resources of the organization. The financial resource statements, the
mean score ranges from 1.62 to 2.49, standard deviation from 0.87 to
1.11 and percentage mean score from 32.4 to 56.0. However, in case of
the statement FS14; budget monitoring system are effective in terms of
accuracy, relevance and target timeliness; mean score of 2.80 shows that
the respondents perception is uncertain in regard of this statement.
The table 5.1 also demonstrates that in case of customer focus, the
respondents are in agreement with the statement CS-15, that is, that the
organization policies and objectives reflects importance to customer care
(mean = 2.14 and standard deviation = 0.77). However, in case of the
other statements namely CS 16, CS-17, CS-18 i.e. management present
practices is effective in fulfilling its customer's needs to match the civil
aviation industry worldwide (mean = 3.14, standard deviation = 0.95);
!16
the employees have defined their work process and are committed to
customer care (mean = 2.61, standard deviation = 0.99); and
management/ employees receive regular feedback and are responsive to
customer needs (mean = 2.61, standard deviation = 1.05). That means
the employees are uncertain about organization being customer focused
particularly on present management practices and its effectiveness
pertaining to customer satisfaction.
In the area of development, the respondents are uncertain about

all the statements with a mean score ranging from 2.94 to 3.43, standard
deviation from 1.02 to 1.09 and percentage mean score from 58.8 to
68.6. This reveals that the organization has not been able to develop
world class airport infrastructure and make adequate investment on
development and new technology. The perceptions of the respondents on
statements of development DV-19, DV-20, DV-21 and DV-22 i.e. present
airport infrastructure and the standards of airport facilities (mean =
3.43, standard deviation = 1.09); the organization's investment in
development of airports and its people (mean = 3.10, standard deviation
= 1.06); the integration of new technology, market standards, customer
needs Ss world-class architect in development plans (mean = 2.94,
standard deviation = 1.02); and the organization long term vision and
utilization of outside sourcing for its developmental needs (mean = 3.31,
standard deviation = 1.05) respectively indicates that present airport
infrastructure, airport development and standards of service are
inadequate and do not match the standards of world class airports.
The perception of respondents as regards to the long-term vision of

the organization on airport development (Mean: 3.31, SD: 1.05) indicates
that there exist no clear policy on long term vision and outsourcing
needs for development of airports and on organization's investment plans
in development of world class airports comparable to rest of industry
worldwide.
117
The table 5.2 presents the statistics in respect of perception of
respondents towards components of organizational environment.
Table 5.2 : Perception of Respondents towards Components of
Organisational Environment (N=153)
S. No. Statements Mean Std. Dev .% Mean

Score
1. EE38 1.82 0.73 36.40

External Environment EE39 3.53 0.92 70.60
EE40 2.11 0.88 42.20
2. MS41 2.01 0.70 40.20
Mission/ Strategy MS42 3.40 0.82 68.00
MS43 3.89 0.73 77.80
LD44 2.67 0.86 53.40
Leadership
3. LD45 2.39 0.66 47.80
LD46 2.62 0.79 52.40
OC47 3.62 0.84 72.40
4. Organization Culture OC48 3.55 0.80 71.00
OC49 3.30 0.75 66.00
MP50 3.59 0.82 71.80
Management Practice
5. MP51 3.50 1.02 70.00
MP52 3.69 0.96 73.80
ST53 3.90 0.82 78.00
Structure
6. ST54 3.92 0.74 78.40
ST55 3.82 0.81 76.40
SS56 2.20 0.60 44.00
Systems
7. SS57 2.14 0.69 42.80
SS58 2.31 0.83 46.20
GC59 2.33 0.73 46.60
8. Group Climate GC60 2.25 0.81 45.00
GC61 2.18 0.86 43.60
JM62 2.07 0.79 41.40
9. Job/Skill Match JM63 2.05 0.90 41.00
JM64 2.20 0.93 44.00
NV65 1.90 0.80 38.00
10. Individual Needs/Values NV66 1.82 0.73 36.40
NV67 1.90 0.82 38.00
MV68 1.94 0.85 38.80
11. Motivation MV69 2.07 0.74 41.40
MV70 2.14 0.79 42.80
PF71 3.11 0.02 62.20
Organization Performance PF72 2.07 0.74 41.40
12. PF73 3.50 0.83 70.00
PF74 3.37 0.89 67.40
118
The table 5.2 show that perception of respondents on external
environment ranges from nearly agree to disagree; mean ranging from
1.82 to 3.53, standard deviation from 0.73 to 0.92 and percentage mean
score from 36.40 to 70.60. The respondents perceived that the external
environment, in respect of change in government regulations, technology,
privatization and forces such as global competitiveness, economy and
security are affecting the organizational environment. As regard to
mission/strategy, the respondent's response ranged from agree (mean:
2.01) on organization mission and uncertain (mean: 3.40) on
management strategies and near disagreement (mean: 3.89) on clearly
defined vision policies. The response of respondents on leadership ranged
between nearly agree to undecided; mean ranging between 2.39 to 2.67,
standard deviation from 0.66 to 0.86 and percentage mean score from
47.80 to 53.40. This reflects that the management leadership has not
been very effective.
With regard to the organisational culture, the respondents have

been either uncertain or they disagreed with most of the statements;
mean score ranging between 3.30 to 3.62, standard deviation from 0.75
to 0.84 and percentage mean score from 66.0 to 72.40. The employees
have been nearly in disagreement with all the statements pertaining to
the management practices and mean score ranged between 3.50 to 3.69,
standard deviation between 0.82 to 1.02 and percentage mean score
between 70.00 to 73.8. Similarly, the response of the respondents
regarding to the organisational structure has been nearly in
disagreement with all the statements; mean score ranging between 3.82
to 3.92, standard deviation 0.74 to 0.82 and percentage mean score from
76.40 to 78.40. The results reflect that the organization needs to
concentrate more on work culture, management practice and
organization structure for increasing the organisational overall
effectiveness and output performance.
The table 5.2 also demonstrates that in case of other components

of organization environment, like systems, group climate and job-skill
match the mean score is closer to 2.00. Thereby, meaning that the
119
respondents are in agreement to most of the statements pertaining to
systems (mean: 2.14 to 2.20; standard deviation: 0.60 to 0.83,
percentage mean score: 42.8 to 45.2). With regard to the group climate
(mean: 2.18 to 2.33, standard deviation: 0.73 to 0.86, percentage mean
score: 43.6 to 46.6) and job/skill match (mean: 2.05 to 2.20, standard
deviation: 0.79 to 0.93, percentage mean score: 41.0 to 44.0) most of
respondents have agreed to the statements. The table also shows that
the components of organization environment namely systems, group
climate and job/skill match are positive and intend towards more
desirable state.
Similarly, in the case of individual needs/values and motivation

components of organizational environment, the mean score is closer to
2.00 and tends towards 1.00. This means that the employees are in
agreement with most of the statements pertaining to these elements and
even agree strongly in some of the statements; namely salary benefits,
security of job, feeling proud to work with organization. The mean score
ranges from 1.82 to 1.90, standard deviation: from 0.73 to 0.82 and
percentage mean score: from 36.0 to 38.0, in case of individual
needs/values. The mean score ranges from 1.94 to 2.14, standard
deviation: from 0.74 to 0.85: percentage mean score: from 38.8 to 42.8 in
case of motivation. In case of overall organization performance, the mean
varies from 2.07 to 3.50; standard deviation from 0.72 to 0.89 and
percentage mean score from 41.4 to 70.0. The mean score, in case of
three statements of organisational performance is more than 3.00
namely, management always achieves set targets (mean: 3.11);
customers are satisfied with standard of service (mean: 3.50); and
organization achieves highest level of output from its employees of what
they are capable (mean: 3.37). Thus, the overall results reflect that the
respondents have been either uncertain or disagree with most of the
statements pertaining to the organisational performance meaning that
the organization has not been effective in accomplishment of its set
objectives.
120
The tables 5.3 and 5.4 present the overall perception of the
respondents towards organization in general.
Table 5.3 Overall Perception of Respondents towards Organisation
S.No. Variables Mean Std. Dev. % Mean

Score
I GENERAL MANAGEMENT
1. Management 2.34 0.78 40.80
2. Human Resource 2.28 0.52 45.60
3. Finance Resource 2.30 0.63 46.00
4. Customer Focus 2.60 0.77 52.40
5. Development 3.20 0.83 64.00
II ORGANISATIONAL ENVIRONMENT
6. External environment 2.49 0.42 49.00
7. Mission/ strategy 3.09 0.45 61.80
8. Leadership 2.63 0.55 51.20
9. Work culture 3.49 0.61 69.80
10. Management practice 3.59 0.77 71.80
11. Structure 3.88 0.64 77.60
12. Systems 2.21 0.53 44.20
13. Work group climate 2.25 0.64 45.00
14. Job /skill match 2.11 0.77 42.00
15. Individual needs/ values 1.87 0.67 37.40
16. Motivation 2.04 0.74 40.80
17. Organisational performance 3.01 0.69 60.20
Ill CHANGE MANAGEMENT
18. Need for change 2.01 0.50 40.20
19. Areas of change 2.54 0.48 51.00
20. Attitude towards change 2.25 0.52 45.00
Table 5.4 Perception of Employees towards Organisation in General
S.No Variables Mean Std. Dev % Mean

Score
I GENERAL MANAGEMENT 2.54 0.70 50.80

II ORGANISATIONAL ENVIRONMENT 2.71 0.62 54.20
III CHANGE MANAGEMENT 2.26 0.50 45.20
121
The table 5.3 while depicting overall perception of respondents
towards organization shows that in case of elements of general
management, perception ranges between undecided to agree mean
ranging from 2.34 to 3.20, standard deviation from 0.52 to 0.83 and
percentage mean score from 40.8 to 64.0. The mean score for three
components is closer to 2.00 on Likert scale namely management (mean
score: 2.34, SD: 0.78), human resource (mean score: 2.28, SD: 0.52) and
finance resource (mean score: 2.30, SD: 0.63). In case of other two
component of general management, that is customer focus and corporate
development, the response means and standard deviations have been
mean: 2.60, SD: 0.77 and mean: 3.20, SD: 0.83 respectively, meaning
thereby that respondents are undecided on these elements. The element
of development tends towards disagree on Likert scale.
Thus, the results of overall perception of the respondents towards

organization, leads us to conclude that three areas of general
management namely, management, human resources and financial
resources of the organization are in good condition. While in the area of
customer focus and organizational development, the perception of
respondents is negative. Therefore, the organization need to concentrate
on these two areas more effectively as compared to the other three
factors of general management for achieving superior performance.
The table 5.3 also presents the overall perception of respondents

on components of organizational environment namely, external
environment (mean: 2.49, SD: 0.42), mission/strategy (mean: 3.09, SD:
0.45), leadership (mean: 2.63, SD: 0.55), leadership (mean: 2.63, SD:
0.55), culture (mean: 3.49, SD: 0.61) management practice (mean: 3.59,
SD: 0.77), structure (mean: 3.88, SD: 0.64) systems (mean: 2.21, SD:
0.53) were group climate (mean: 2.25, SD: 0.64) job/skill match (mean:
2.11, SD: 0.77), individual needs/values (mean: 1.87, SD: 0.67),
motivation (mean: 2.04; SD: 0.74) and organisational performance
(mean: 3.01, SD: 0.69). The results reveal that the response of the
122
respondents ranged between undecided to disagree in case of five
components namely mission/strategy, work culture, management
practice, structure and organizational performance where as in case of
other seven components of organizational environment, namely external
environment, leadership, systems, work group climate, job/skill match,
individual needs/values and motivation, the responses are closer to
mean score 2.00 except leadership where mean score is 2.63. Thus, the
five elements mentioned above, needs more attention of the organization
for improving the overall organizational environment and achieving better
performance.
In case of the dimensions of change management, namiely need for

change (mean 1.97, SD: 0.50), areas of change (mean: 2.54, SD: 0.48)
and attitude towards change (mean: 2.25, SD: 0.52), the response of
respondents ranged between undecided to agree. The results reveal that
respondents agree for the need for change, but they are undecided on
areas of change. The attitude of respondents towards change has been as
positive with mean score closer to 2.00.
The table 5.4 portrays the response of the respondents pertaining

to the overall perception about the organization. The overall response of
the respondents towards organization in general ranges between
undecided to agree with general management (mean: 2.54, SD: 0.70, and
percentage mean score: 50.8), and percentage organizational
environment (mean: 2.78, S: 0.62, and percentage mean score: 54.20)
and change management (mean: 2.25, SD: 0.50 percentage mean score:
45.20). The results show that general management of the organisation is
good except in case of development [mean score: 3.20] and customer
orientation [mean score: 2.60]. The results further indicate that there is a
need to improve the organisation environment particularly in respect of
mission strategy, organisational culture, management practices,
organisation structure and overall organisation performance. The results
also reveal that the response is positive for change.
123
Thus from the findings of the study it is logical to conclude that
the development of the airports and customer satisfaction has been
unsatisfactory and the present change management practices neither
could improve the standard of airports to world class nor performance of
the organization. Therefore, the hypothesis of the study that "the
change management practices adopted by Airports Authority of
India have not resulted in development of world class airports in
India" is proved.
DIMENSIONS OF ORGANIZATIONAL CHANGE:
The table 5.5 reports the perception of the respondents towards

dimensions of change management in the organization, namely need for
change, areas of change and attitude towards change.
Table 5.5: Perception of Respondents towards Components of

Change Management
S. No. Statements Mean Std. Dev % Mean

Score
NOC23 2.18 0.71 43.60

NOC24 2.25 2.54 45.00
1.
NOC25 1.84 0.81 36.80
Need for Change
NOC26 1.86 0.66 37.20
NOC27 2.11 0.78 42.20
AOC28 1.84 0.64 36.80
AOC29 2.45 0.99 49.00
2. Areas of Change
AOC30 2.86 0.95 57.20
A0C31 3.25 0.99 65.00
AOC32 2.31 0.78 46.20
ATC33 2.31 0.83 46.20
ATC34 1.84 0.64 36.20
3. Attitude Towards Change
ATC35 1.98 0.78 39.60
ATC36 2.49 0.94 49.80
ATC37 2.62 1.03 52.40
124
The table 5.5 demonstrates that the response of the respondents
towards need for change is positive and most of the employees have
responded in agreement for need for change; mean score ranging from
1.84 to 2.25, standard deviation ranging from 0.54 to 0.81 and
percentage mean score ranging from 37.2 to 45.0.
In case of attitude towards change, respondents are in agreement

with three statements where mean score ranged between 1.84 to 2.31,
standard deviation between 0.64 to 0.83 and percentage mean score
between 36.2 to 46.2. The response of the respondents tends to strongly
agree in case of statements namely organization has the capacity to
change (mean score: 1.84); managers and employees are trained to meet
challenges effectively (mean score: 1.98); and government new policies
are supportive for change (mean score: 2.31). The employees are
undecided on statements namely, the employees are generally adoptive to
new work culture (mean score: 2.49, standard deviation: 0.94 and
percentage mean score: 49.8); and the senior managers are approachable
and always listen to ideas (mean score: 2.62, standard deviation: 1.03
percentage mean score: 52.4). This reveals that there is positivism in the
attitude of the employees towards change.
In case of the areas requiring change, the response has been

nearly agree to uncertain; mean ranging from 1.84 to 3.25, standard
deviation from 0.64 to 0.99 and percentage mean score from 36.2 to
52.4, thereby meaning that the perception of respondents differs in
respect of the areas of change. The results indicate that most of the
employees agree with the statements AOC-28 and AOC-32 i.e. change in
decentralization of authority from central level management control to
airport level management; and improvement in airport modernization
and development plans and disagree with the statement AOC-31 i.e.
general dissatisfaction and poor opportunities for career growth in this
organization. The response towards statements AOC-29 and AOC-30
tends towards uncertainty i.e. managers and employees do not delineate
125
organizational belongings and commitment; and private company
managed airports are better developed than government/ autonomous
organization managed airports worldwide.
CHANGE ACROSS DEMOGRAPHIC VARIABLES:
The dimensions of organizational change and its elements are

understood to be perceived differently by employees of various age
groups, education, level of management, length of service and work unit
areas. The descriptive scores do not provide inferences about the
significance of the mean scores and also the differences in the
perceptions of employees about organizational environment and
dimensions of change in the organization. Therefore, analysis of variance
(ANOVA) with 'f-test' has been carried out to find out the significant
differences, if any, across the demographic variables and general
management, organization environment and the elements of change
management.
Organization environment and change across age:
The table 5.6 presents the perception of the respondents towards

organizational change elements and dimensions of change across age.
The table results indicate that there does exist significant difference in
perception of the respondents for two components of organisational
management namely human resource [f = 5.58, p< 0.1] and customer
satisfaction (f= 4.38, p< 0.1] whereas no significant difference is reported
in the case of general management, finance resource and development.
Notably, the response in case of the development varies from uncertain to
disagreement (mean ranging from 3.00 to 3.38 and standard deviation
from 0.77 to 0.86) for all the age groups, which indicates that all
employees feel dissatisfied with the development of airports and standard
of passenger facilities.
126
Across Age
I. General Management
S. No. Variable Age N Mean Std. F Sig.

dev level
1 Management 1 69 2.39 0.67
2 60 2.42 0.86 2.26 .08
3 24 1.97 0.76
1 69 2.32 0.55
2. Human resource 2 60 2.26 0.46 5.58 < .01
3 24 2.06 0.41
3. Finance resource 1 69 2.40 0.67
2 60 2.23 0.60 1.78 .15
3 24 2.12 0.51
4. Customer focus 1 69 2.72 0.77
2 60 2.67 0.76 4.38 <.01
3 24 2.12 0.59
5. Development 1 69 3.38 0.86
2 60 3.04 0.81 2.41 .06
3 24 3.00 0.77
II: Change Management
S.No. Variable Age N Mean Std. F Sig.

dev level
1. Need for change 1 69 1.96 0.45
2 60 2.02 0.57 0.74 .52
3 24 2.12 0.44
2. Areas of change 1 69 2.54 0.45
2 60 2.48 0.53 5.55 <.01
3 24 2.80 0.17
3. Attitude towards 1 69 2.40 0.58
change 4.13 <.01
2 60 2.16 0.47
3 24 2.07 0.36
127
Ill: Organisational Environment
S.No. Variable Age N Mean Std. F Sig.

dev level
1 69 2.60 0.45
4.12 <.01
1. External environment 2 60 2.36 0.03
3 24 2.45 0.33
1 69 3.15 0.50
0.57 .63
2. Mission/ strategy 2 60 3.05 0.41
3 24 3.08 0.44
1 69 2.53 0.61
0.35 .78
3. Leadership 2 60 2.60 0.43
3 24 2.50 0.68
1 69 3.45 0.58
0.55 .64
4. Work culture 2 60 3.56 0.58
3 24 3.41 0.81
1 69 3.54 0.74
0.80 2.49 .06
5. Management practice 2 60 3.48
3 24 3.87 0.44
1 69 3.78 0.78
2.17 .09
6. Structure 2 60 3.93 0.55
3 24 4.08 0.32
1 69 2.36 0.54
3.87 <.01
7. Systems 2 60 2.13 0.58
3 24 2.08 0.14
1 69 2.36 0.63
2.43 .06
8. Work group climate 2 60 2.25 0.73
3 24 2.04 0.26
1 69 2.18 0.88
2.11 0.96 .41
9. Job/ Skill match 2 60 0.82
3 24 1.86 0.37
1 69 2.03 0.76
Individuals needs / 2.27 .08
10. 2 60 1.76 0.67
values
3 24 1.70 0,20
1 69 2.16 0.36
2.07 .10
11. Motivation 2 60 1.95 0.69
3 24 1.83 0.41
1 69 3.15 0.59
Organisational 2 2.88 1.86 .13
12. 60 0.83
Performance
3 24 2.93 0.53
128
The table 5.6 also demonstrates that for dimensions of change
management, there exists no significant difference in perception of
respondents across age in respect of need for change while in other two
components of change management, namely areas of change (f = 5.55,
p<.01) and attitude towards change (f: 3.43, p>.01), a note worthy
dissimilarity exists in perception of respondents across age. In case of
the factor areas of change, the respondents of the age group less than 40
years (mean = 2.48, SD = 0.53) are in agreement toward the factors of
this dimension followed by the age group of 41 to 50 years (mean: 2.54,
SD: 0.45). The respondents of the age group 50 years and above
(mean=2.80, SD=0.17) are uncertain about the factor.
Under the dimensions of change management the factor attitude

towards change is perceived differently by different age groups. The
respondents in the age group of 51 years and above are in agreement
with the factor (mean: 2.07, SD=0.36) followed by age group 41 to 50
years (mean: 2.16, SD=0.47) and than age group of 40 years and less
(mean = 2.40, SD=0.58). Thus, the results leads us to conclude that the
need for change in organization environment is agreed by all age groups
while the difference exists in perceptions among different age groups
about areas of change and attitude towards change. Therefore, the
organization needs to concentrate its efforts for change management age
group wise to achieve better results of change initiatives.
The table 5.6 also reflects that there is no significant difference in

the perception of employees of different age group in respect of change
elements namely mission/strategy (f = 0.57, p> .01); leadership (f = 0.35,
p> 0.01); management practice (f =2.49; p>.01); structure (f=2.49; p>.01);
group climate (f=2.43, p>.01); motivation (f=2.07, p>0.1) job/skill match
(f=0.96, p>.01) and organizational performance (f=1.86; p>.01). This
connotes that the age does not affect the perception of the respondents
towards these elements of organizational performance and change. While
in the case of external environment (f=4.12, p<.01) and system adopted
129
by the organization (f=3.87, p<.01), the difference does exist in the
perception of the respondents across age. From the table, it is evident
that with respect to the external environment of the organization, the
respondents belonging to the age groups namely 41 to 50 years and
above 51 years are more or less in agreement with this component as
depicted by the mean score. However, respondents belonging to the age
group below 40 years tend to be uncertain on this factor of organizational
environment. The table also reveals that in case of systems adopted by
the organization, the respondents belonging to age group more than 51
years are in strong agreement (mean: 2.08, SD: 0.14) followed by
respondents of the age group of 41 to 50 years (mean=2.13, SD=0.58)
and age group less than 40 years (mean: 2.36, SD=0.54).
Organizational Environment and Change across Education:
The overall perception of respondents towards organizational

environment and change across education are depicted in table 5.7.
Table 5.7 Perception across Level/Cadre. I: General Management
S.No. Variable Education N Mean Std. F Sig.

dev level
1 39 2.41 0.91
1. Management 2 75 2.14 0.70 6.40 <.01
3 39 2.66 0.64
1 39 2.28 0.57
2. Human resource 2 75 2.19 0.49 2.51 .08
3 39 2.42 0.47
1 39 2.32 0.61
3. Finance resource 2 75 2.22 0.61 1.00 .37
3 39 2.40 0.66
1 39 2.53 0.74
4. Customer focus 2 75 2.45 0.70 8.70 <.01
3 39 3.03 0.76
1 39 3.11 0.84
5. Development 2 75 3.05 0.77 5.09 <.01
3 39 3.55 0.85
130
II: Organisational Environment
S.No. Variable Education N Mean Std. F Sig.

dev level
1 39 2.46 0.33
External 2 75 2.39 0.40 7.00 <.01
1.
environment
3 39 2.69 0.46
1 39 3.28 0.57
2. Mission/ strategy 2 75 3.12 0.34 8.92 <.01
3 39 4.30 0.43
1 39 2.71 0.74
3. Leadership 2 75 2.54 0.50 2.62 .07
3 39 2.43 0.38
1 39 3.33 0.84
4. Work culture 2 75 3.49 0.52 2.45 .08
3 39 3.64 0.48
1 39 3.74 0.48
Management 2 3.53 0.84
5. 75 1.04 .35
practice
3 39 3.53 0.88
1 39 4.15 0.31
6. Structure 2 75 3.74 0.69 5.48 <.01
3 39 3.87 0.69
1 39 2.17 0.38
7. Systems 2 75 2.26 0.60 0.68 .50
3 39 2.15 0.52
1 39 2.02 0.44
8. Work group climate 2 75 2.33 0.72 3.46 .03
3 39 2.33 0.57
1 39 2.05 0.77
9. Job/ Skill match 2 75 2.13 0.75 0.14 .86
3 39 2.12 0.89
1 39 1.84 0.45
Individuals needs / 1.90
10. 2 75 0.69 0.15 .85
values
3 39 1.84 0.81
1 39 2.02 0.69
11. Motivation 2 75 2.02 0.67 0.15 .86
3 39 2.10 0.89
1 39 2.78 0.59
Organisational
12. 2 75 3.12 0.68 3.07 .49
Performance
3 39 3.05 0.77
131
Ill: Change Management
S. No. Variable Education N Mean Std. F Sig.

dev level
1 39 2.20 0.63
1. Need of change 2 75 2.02 0.40 6.96 <.01
3 39 1.79 0.44
1 39 2.70 0.36
2. Areas of change 2 75 2.55 0.52 5.19 <.01
3 39 2.36 0.42
1 39 2.41 0.47
Attitude towards
3. 2 75 2.35 0.56 5.60 <.01
change
3 39 2.11 0.43
The table 5.7 indicates that difference does exist in the perception
of respondents having different education in case of management
component of general management, namely management [f=6.40,
p<.01], customer orientation [f= 8.70, p<0.1] and development [f= 5.09,
p<0.1] whereas no significant difference is observed in case of Human
resource and financial resources. The results also indicate that
employees having engineering education are more in agreement of
statements followed by graduate employees and then with management
education in all the three components where differences are reported.
The table also reflects that there exists a significant difference in

perception of employees having different education for components of
organizational environment, namely external environment (f=7.00, p<.01)
mission/strategy (f=8.92, p<.01), and structure (f=5.48, p<.01). The table
reveals that the employees with engineering education are in agreement
(mean=2.39, SD=0.40) with the component of external environment
affecting organization followed by respondents having management
education (mean=2.46, SD=0.46). Whereas respondents with
graduation/post graduation education are undecided (mean=2.69,
SD=0.33).
132
In case of mission/strategy, the respondents having management
education are in strong disagreement (mean=4.30, SD=0.43) for the
component of organization environment, that is, the organization mission
is effectively communicated and well understood by employees;
organization has clearly defined vision policies; and management
strategies are mission oriented; followed by respondents with graduation
(mean: 3.28, SD=0.57) and respondents with engineering education
(mean=3.12, SD=0.34).
The table also reflects that there exists no significant difference in

the perception of employees having different education for components of
organization environment namely, leadership (f=2.62, p>.01); culture
(f=2.45, p>.01); management practice (f=1.04, p>.01); systems (f=0.68,
p>.01); group climate (f=3.46, p>.01); job/skill match (f=0.14; p>.01);
individual needs/values (f=0.15, p>.01); motivation (f=0.15, p>.01); and
organizational performance (f= 3.07, p>0.1).
In case of the component of change management, table results

show that difference does exist in perception of the respondents across
education for all the three components namely need for change (f=6.96,
p<.01); areas of change (f=5.19, p<.01); and attitude towards change
(f=5.60, p<.01). The table also indicates that respondents having
management education tend to agree/strongly agree for need for change
(mean=1.79, SD=0.44), areas of change (mean=2.36, SD=0.42), attitude
towards change (mean: 2.11, SD=0.43) followed by respondents having
engineering education (mean: 2.02, SD= O.40; mean: 2.55, SD= 0.52;
mean: 2.35, SD= 0.55 respectively) and then respondents with
graduation education (mean: 2.20, SD= 0.63, mean: 2.70, SD= 0.36,
mean: 2.41, SD= 0.47 respectively). The results reveal that the
respondents having management education are more positive towards
components of change management followed by respondents with
engineering education and than with graduate education.
133
Organization Environment and Change across Management Level:
The table 5.8 portrays the perception of respondents towards

organizational environment and change across levels of management.

across Level/Cadre
I: Organisation Management
S.No. Variable Level N Mean Std. F Sig.

dev level
1 39 2.15 0.60
1. Management 2 84 2.46 0.75 2.58 .07
3 30 2.24 0.97
1 39 ^ 2.40 ^ 0.41
2. Human resource 2 84 2.27 0.52 2.51 .08
3 30 2.12 0.59
1 39 2.41 0.58
3. Finance resource 2 84 2.29 0.63 1.65 .19
3 30 2.14 0.65
1 39 2.55 0.72
4. Customer focus 2 84 2.77 0.73 5.21 <.01
3 30 2.27 0.79
1 39 3.21 0.83
5. Development 2 84 3.25 0.79 1.04 .35
3 30 3.00 0.95
II: Change Management

dev level
1 39 1.97 0.51
1. Need for change 2 84 2.07 0.53 2.25 .10
3 30 1.86 0.34
1 39 2.76 0.42
2. Areas of change 2 84 2.49 0.47 6.66 <.01
3 30 2.40 0.45
1 39 2.33 0.50
Attitude towards
3. 2 84 2.31 0.54 6.14 <.01
change
3 30 1.96 0.40
134
Ill: Organisational Environment

dev level
1 39 2.56 0.58
External
1. 2 84 2.46 0.35 1.30 .27
environment
3 30 2.40 0.33
1 39 3.02 0.50
2. Mission/ strategy 2 84 3.21 0.42 7.72 <.01
3 30 2.86 0.37
1 39 2.71 0.61
3. Leadership 2 84 2.52 0.57 2.20 .11
3 30 2.46 0.37
1 39 3.46 0.68
4. Work culture 2 84 3.57 0.53 2.21 .11
3 30 3.30 0.57
1 39 3.30 0.75
Management 0.80 5.22
5. 2 84 3.60 <.01
practice
3 30 3.90 0.60
1 39 3.69 0.65
6. Structure 2 84 3.91 0.70 2.72 .06
3 30 4.03 0.32
1 39 2.30 0.59
7. Systems 2 84 2.15 0.42 1.25 .28
3 30 2.26 0.70
1 39 2.20 0.61
8. Work group climate 2 84 2.29 0.69 0.41 .66
3 30 2.20 0.52
1 39 2.07 0.77
9. J o b / Skill match 2 84 2.21 0.89 2.20 .11
3 30 1.86 0.37 _j
1 39 1.87 0.80
Individuals needs /
10. 2 84 1.98 0.67 4.55 <.01
values
3 30 1.56 0.26
1 39 2.02 0.75
11. Motivation 2 84 2.17 0.80 4.79 <.01
3 30 1.70 0.35
1 39 2.75 0.67
Organisational
12. 2 84 3.14 0.71 4.44 <.01
Performance
3 30 3.02 0.77
135
The table 5.8 reports while reporting the perception of respondents
towards component of general management depicts that there exists no
significant difference except in case of customer orientation [f= 5.21,
p<0.1] where employees of senior management are more positive [mean:
2.27, SD= 0.79] then first and middle level management [mean: 2.55,
SD= 0.72 and mean: 2.77, SD= 0.73]. The results indicate that there is
no significant difference in perception of the employees with regard to
development, finance, human resource, and management. There exists
significant difference in case of the components of change management
namely, areas of change (f=0.66, p<0.01) and attitude towards change
(f=6.14, p<.01) whereas no difference exists in the perception of
respondents for need for change (f=2.25, p>.01). It is observed that the
senior management level employees are more positive towards need for
change and attitude towards change followed by middle management
and then first level of management.
The table 5.8 further indicates that there does exist significant
difference in perception of respondents working at different levels of
management for the component of organizational environment namely,
mission/ strategy (f=7.72, p<.01); management practice (f=5.52, p<.01),
individual needs/values (f=4.45, p<.01); motivation (f=4.79, p<.01); and
organizational performance [f= 4.44, p <.01]. The table also reveals that
the employees of all the three management levels namely senior, middle
and first level management are undecided on components of
mission/strategy (mean score ranging between 2.86 to 3.21) while about
management practice the senior management employees disagree (mean
= 3.90, SD=0.60) followed by middle management employees (mean:
3.60; SD=0.80) and first level management employees are undecided
(mean: 3.30, SD=0.75). It is also seen from the table that the perception
of the employees across management level ranges from undecided to
disagree in respect of components namely, mission/strategy; culture;
management practice and structure.
136
The table 5.8 also depicts that there exists no significant difference
in perception of employees belonging to different management levels with
regard to the components of organizational environment namely, external
environment (f=1.30, p>.01); leadership (f=2.20, p>.01) work culture
(f=2.21, p>.01); structure (f=2.72, p>.01); systems (f=1.25, p>.01); group
climate (f=0.41, p>.01); and job/skill match (f=2.20, p>.01). This
indicates that respondent's perception, irrespective of their level of
working, towards these seven elements of organization environment does
not vary.
Organizational Environment and Change across Work Units:
The table 5.9 presents the results of overall perception of

respondents towards organizational environment and dimensions of
change across work units of the organization.

across Department/Work Unit
I: General Management
dev level
1 93 2.34 0.81
1. Management 2 48 2.23 0.69 3.59 <.01
3 12 3.06 0.36
1 93 2.32 0.57
2. Human resource 2 48 2.19 0.37 1.90 .13
3 12 2.41 0.95
1 93 2.45 0.65
3. Finance resource 2 48 2.04 0.46 6.50 <.01
3 12 2.26 0.60
1 93 2.68 0.77
4. Customer focus 2 48 2.46 0.70 4.87 <.01
3 12 3.16 0.54
1 93 3.24 0.92
5. Development 2 48 3.11 0.73 0.99 .39
3 12 3.33 0.12
137
II : Organisational Environment

dev level
1 93 2.50 0.52
External 2 48 2.51 0.33 1.45 .22
1.
environment
3 12 2.22 0.44
1 93 3.09 0.51
2. Mission/ strategy 2 48 3.08 0.34 1.74 .16
3 12 3.00 0.28
1 93 2.59 0.56
3. Leadership 2 48 2.47 0.57 0.57 .63
3 12 2.66 0.50
1 93 3.41 0.64
4. Work culture 2 48 3.36 0.52 3.44 <.01
3 12 4.00 0.57
1 93 3.53 0.81
Management 2 48 3.70 0.69
5. 1.11 .34
practice
3 12 3.33 0.86
1 93 3.96 0.60
6. Structure 2 48 3.72 0.74 1.59 .19
3 12 3.88 0.33
1 93 2.25 0.61
7. Systems 2 48 2.14 0.41 0.62 .60
3 12 2.11 0.16
1 93 2.18 0.65
8. Work group climate 2 48 2.33 0.61 3.65 <.01
3 12 2.22 0.33
1 93 2.10 0.88
9. Job/ Skill match 2 48 2.02 0.88 2.72 .04
3 12 2.22 0.60
1 93 1.86 0.65
Individuals needs / 2 48 1.85 0.70
10. 3.24 .02
values
3 12 1.68 0.50
1 93 2.04 0.70
11. Motivation 2 48 2.93 0.80 3.66 <.01
3 12 2.22 0.60
1 93 2.92 0.67
Organisational 2 3.10
12. 48 0.70 1.93 .12
performance
3 12 3.33 0.87
138

dev level
1 93 2.01 0.55
1. Need for change 2 48 2.11 0.36 3.77 <.01
3 12 1.66 0.36
1 93 2.50 0.54
2. Areas of change 2 48 2.67 0.30 3.44 <,01
3 12 2.20 0.34
1 93 2.23 0.55
Attitude towards
3. 2 48 2.30 0.49 1.99 .11
change
3 12 2.40 0.17
The table 5.9 reflects that there exists no significant difference in

the perception of employees of various work units/departments/ airports
in respect of the components of general management namely,
management [f= 3.59, p >.01] and human resources [f= 1.90, p>.01]
whereas the difference is observed as regard to the components namely,
customer orientation [ f= 4.87, p<.01] and finance resources [f= 6.50,
p<.01]. The results also indicate no difference in perception of employees
in respect of development [f=0.99, p>.01] where response tends from
undecided to disagree ( mean varying from 2.50 to 3.33). Further, there
also exists no significant difference in the perception of employees of
different work units for the components of organizational environment
namely, external environment (f=1.45, p>.01); mission/strategy (f=1.73,
p>.01); leadership (f=0.57, p>.01); work culture (f=3.44, p>.01);
management practice (f=l.ll, p>.01); structure (f=1.59, p>.01); systems
(f=0.62, p>.01); group climate (f=3.65, p>.01); job/skill match (f=2.72,
p>.01); individual needs/values (f=3.24, p>.01); motivation (f=3.66,
p>.01); and organizational performance (f=1.93, p>.01). The results
connote that the perception of respondents, working in different
units/departments/ airports does not vary towards these elements of
organizational environment. This leads us to conclude that organization
environment across work units has been almost similar.
139
Similarly, the table 5.9 shows that there exists significant
difference in the perception of the employees of different work units
towards dimensions of change management namely, need for change
(f=3.77, p<.01); areas of change (f=3.44, p<.01); and no difference exists
in the attitude towards change (f=1.99, p>.01). This indicates that the
perception of employees working in different units does not vary towards
these dimensions of change. It is also observed from the table that the
employees belonging to human resource department are in strong
agreement to need for change and attitude towards change (mean=1.66,
SD=0.36 and mean=1.60, SD=0.17 respectively).
Organization Environment and Change across Length of Service:
The table 5.10 depicts the results of overall perception of the

respondents having different length of service in the organization towards
organizational environment and dimensions of change.

across Length of Service (Experience)
I General Management
S.No. Variable Experience N Mean Std. F Sig.

dev level
1 18 2.23 0.34
1. Management 2 69 2.51 0.85 2.97 .05
3 66 2.20 0.74
1 18 2.45 0.40
2. Human resource 2 69 2.30 0.51 1.84 .16
3 66 2.20 0.54
1 18 2.67 0.33
3. Finance resource 2 69 2.37 0.67 7.46 <.01
3 66 2.10 0.56
1 18 2.75 0.42
4. Customer focus 2 69 2.83 0.83 7.29 <.01
3 66 2.36 0.69
1 18 2.70 0.79
5. Development 2 69 2.27 0.89 6.66 <.01
3 66 1.90 0.71
140
II: Organisational Environment

dev level
1 18 2.50 0.22
External
1. 2 69 2.61 0.38 7.55 <.01
environment
3 66 2.34 0.43
1 18 2.88 0.47
2. Mission/ strategy 2 69 3.11 0.49 2.22 .11
3 66 3.13 0.40
1 18 2.61 0.46
3. Leadership 2 69 2.53 0.63 0.16 .85
3 66 2.57 0.48
1 18 3.77 0.25
4. Work culture 2 69 3.39 0.61 2.95 .05
3 66 3.51 0.66
1 18 3.88 0.58
Management
5. 2 69 3.96 0.87 2.38 .09
practice
3 66 3.63 0.69
1 18 3.77 0.47
6. Structure 2 69 3.68 0.80 9.08 <.01
3 66 4.12 0.34
1 18 1.94 0.36
7. Systems 2 69 2.44 0.76 14.23 <.01
3 66 2.04 0.23
1 18 1.77 0.25
Work group
8. 2 69 2.49 0.62 12.52 <.01
climate
3 66 2.13 0.62
1 18 1.77 0.32
9. Job/ Skill match 2 69 2.21 0.89 2.26 .10
3 66 2.09 0.75
1 18 1.61 0.66
Individuals needs/
10 2 69 1.94 0.77 1.74 .17
values
3 66 1.87 0.61
1 18 2.00 0.34
11. Motivation 2 69 2.07 0.89 0.09 .91
3 66 2.03 0.65
1 18 2.95 0.71
Organisational
12. 2 69 3.09 0.67 0.79 .45
performance
3 66 2.95 0.73
141
dev level
1 18 1.88 0.31
1. Need for change 2 69 1.96 0.45 0.67 .51
3 66 2.06 0.57
1 18 2.60 0.73
2. Areas of change 2 69 2.41 0.44 4.87 <.01
3 66 2.66 0.38
1 18 2.10 0.28
Attitude towards
3. 2 69 2.48 0.55 15.12 <.01
change
3 66 2.04 0.44
The table 5.10 reveals that there exists significant difference in the
perception of the respondents having different length of service towards
components of organizational environment namely, external environment
(f=7.55, p<.01); structure (f=9.08, p<.01); systems (f=14.23, p<.01); and
group climate (f=12.25, p<.01). This indicates that the employees having
different length of service in organization differ in their perception
towards these elements of organizational environment. It is evident from
the table that the employees having more years of service agree for the
factors of external environment (mean=2.34, SD=.43) where as other
service groups are undecided.
Similarly, for the component of structure the employees with more

length of service disagree for the component (mean=4.12, SD=0.34)
followed by other service group having experience between 11 years to 20
years (mean: 3.77, SD=0.80) and then service group having experience of
10 years or below (mean=3.68, SD=0.47). In case of the component of
system and group climate table indicates that the employees having
experience of less than 10 years and employees having experience of 21
years and above are in agreement for the components where as the
employees having experience between 11 years to 20 years tend towards
uncertainty for the components.
142
The results, in respect of the general organisational management,
shows that the perception of employees significantly differ in case of
components namely, financial resources [f=7.46, p<.01]; customer
orientation [f= 7.29, p<.01] and development [f=6.66, p<.01] whereas no
significant difference is reported in case of management and human
resources. The results reveal that the employees with more length of
service agree with the statement of development [mean = 1.90] followed
by employees between 11 years to 20 years of service [mean = 2.27] and
then employees with 10 years of service or less [mean = 2.70]. This
indicates that the employees who have served organisation for a longer
period feel more that the airports have not been developed to world class
standards followed by employees having less years of service. Similarly,
the employees having longer length of service are in more agreement [
mean = 2.36] towards the component of customer orientation in
comparison to employees having lesser year of service [ mean = 2.86] and
[mean = 2.75]. The table 6.10 also reports that the perception of
respondents having different experience differ significantly for the
dimensions of change management namely, attitude towards change
(f=15.12, p<.01) and areas of change (f=4.87, p<.01) where as there exists
no significant difference for the component of need for change (f=0.67,
p>.01). This indicates that the employees having different years of service
do not differ in their perception for the need for change and agree for the
other factors mean score ranging between 1.88 to 2.06.
Thus, the findings have identified the significant areas of

differences in the dimensions of organizational management factors,
organizational environment and change management across
demographic variables. As is evident from the statistical analysis there
exists significant difference among dimensions of organizational
environment, change management elements and one or more
demographic variables. Therefore, the hypothesis of the study that
"there is a significant difference in perception of employees across
demographic variables about elements of change and organizational
factors" is partially proved.
143
MANAGEMENT OF CHANGE AT AAI:
The organizational diagnostic analysis is carried out for the

organization under study to understand the behaviour of organizational
elements of internal and external environment and their impact on
organizational performance and change. The model provided by Burke-
Litwin(1992), which include explicit reference of goodness to assess and
predict required kind of actions and intervention for the organization, is
used for evaluating organizational performance and change. The table
6.14 portrays the result of statistical analysis of the elements of
organisational performance and change as provided by Burke-Litwin
(1992) model.
Table 5.11: Mean and Standard Deviation of overall Organizational

Performance and Change
S. No. Organizational Label Respondent's Response

Change Elements Mean Value S.D. Value
1 External Environment EE 2.49 0.42
2 Mission/ Strategy MS 3.09 0.45

3 Leadership LD 2.63 0.55
4 Work Culture WC 3.49 0.61
5 Management Practices MP 3.59 0.77
6 Structure ST 3.88 0.64
7 Systems SS 2.21 0.53
8 Group Climate GC 2.25 0.64
9 Job Match/Skill JM 2.11 0.77
10 Individual Needs/Values NV 1.87 0.67
11 Motivation MV 2.04 0.74
12 Organization Performance PF 3.01 0.69
144
The results from table 5.11 indicates that the mission/strategy
(mean=3.09, SD=0.0.45); organization culture (mean = 3.49, SD=0.61);
management practice (mean=3.59, SD=0.77); and structure (mean=3.88,
SD=0.64) are the main areas of weakness in the organisation. The
leadership (mean= 2.63, SD= 0.55) is also perceived as less effective. The
respondents are undecided or tend to disagree on these elements of
organizational performance and change. This connotes that mission and
objectives are not well communicated or emphasized among employees.
The results also indicate that there exist no long term stated vision
policies and strategies to achieve objectives of the organization. The
mean score for work culture and management practices indicates that
these areas need more management attention. The present structure is
not helpful in organizational effective working. In-depth analysis reveals
that people are in strong agreement for decentralization of authority from
central level to work unit levels.
With regard to other elements of organizational performance and

change, presented in table namely, systems (mean = 2.21; SD=0.53);
group climate (mean =2.25, SD=0.64); job/skill match (mean=2.11,
SD=0.77); individual needs/values (mean=1.87, SD=0.67); and
motivation (mean=2.04, SD=0.74), the respondents are more or less in
agreement for these elements. This indicates that systems and
procedures are in good shape, the people have cordial relationship and
help each other in their work. The people are sufficiently trained in their
job and feel satisfied with the work they do, and people feel proud
working in the organization. The people feel motivated which appear to
be due to their job satisfaction and realization of individual
needs/values. The table also shows that overall performance of
individuals and the organization (mean=3.01, SD=0.69) has not been
very satisfactory.
Further, structured analysis of change elements as predicted by

respondents and portrayed in form of Burke-Litwin causal model of
145
organizational performance a n d change h a s been carried out to a s s e s s
the required organizational change at Airports Authority of India. The
figures 5.1 86 5.2 portray the transformational a n d transactional factors
of change a s identified by Burke-Litwin (1992) model.
External
environment
2 49
Fig. 5.1: Structured Analysis of Transformational Factors of Change in AAI.

Management
t t
m.
Systems (policies
'^.»fe 2 and procedures)
Work unit 221
climate
2.25
Task performance
and individual
I
Motivation
Individual needs
and values
skills abilities 2 04 1 87
211
1
galimtieâl
Fig. 5.2: Structured Analysis of Transactional Factors of Change in AAI.
146
The three categories namely, mission and strategy (mean: 3.09),
leadership (mean: 2.63) and culture (mean: 3.49) are perceived as below
average category among transformational factors where as there is only
two below average category i.e. management practice (mean: 3.49) and
structure (mean: 3.88) among the transactional factors. The perception of
respondents reflected in figures 5.1 and 5.2 indicate that the
organization need transformational change rather than transactional
change. Most of the transformational factors have lower-than-average
(undecided to disagree) ratings and most of them are positively co-related
with perceived organizational performance. Thus, the results lead us to
conclude that the organisation requires a transformational change and
therefore a need of careful planning, befitting implementation and
professional management of change in organization.
While the effective management of Airports Authority of India is of

supreme importance, it appears from the results that the present
organisational change initiatives, started in 1995 after merger of two
organisations, have not been able either to develop world class airports
or to achieve expected results of organizational performance. This may be
due to inappropriate diagnoses or improper change management or due
to dynamic impacts of change or because of organization ineffectiveness
in management of change or due to some crucial and critical constraints
making the management helpless. Therefore, it is imperative to examine
in details the dimensions of change management and its co-relation with
the organizational effectiveness. Keeping this in view, the next chapter is
devoted to the study of organizational effectiveness and seeks to examine
the relationship between change management and organizational
effectiveness.
*******
147
CHAPTER :: 6
CHANGE MANAGEMENT AND

ORGANIZATIONAL EFFECTIVENESS
^ Dimensions of Organizational
Effectiveness
c^ Change Management and Organizational
Effectiveness
148
CHANGE MANAGEMENT AND
ORGANIZATIONAL EFFECTIVENESS
The organisational effectiveness has attracted the considerable

attention of organisational analysts because of the fact that it has
become increasingly important in ensuring maximum utilization of the
productive resources and to help in achieving expected results. It has
also mesmerized attention of practicing managers and change
consultants in the present scenario of fast changing corporate world.
Therefore, understanding organisational effectiveness is of vital
importance for the corporate managers and change agents to be effective
and successful in organisational change management. While the
discussion pertaining to the field of organisational effectiveness,
particularly its definitions, concepts, methodologies and the role of
change managers in optimizing organisational effectiveness have
generated great amount of diversity among various quarters, an effort is
made in this chapter to provide a practical understanding of the factors
of organizational effectiveness in the context of change management. The
finding of the study are concentrated on factors of importance for the
sample organization, being objectives of organizational mission, and are
analyzed under the rubric of dimensions of organizational effectiveness,
change management and their relations with change elements.
DIMENSIONS OF ORGANIZATIONAL EFFECTIVENESS:
An effort is made in this section of the study to analyze the co-

relation among factors of organizational effectiveness namely
development, customer satisfaction and individual/organizational
performance and elements of change.
149
Organizational Development and Elements of Change:
The table 6.1 presents the relationship between the factors of

development and elements of change.
Table 6.1: Coefficient of Co-relation between Organizational

Development and Elements of Change
S. No. Description O E Factors

of variable DV19 DV20 DV21 DV22
1 External Environment **0.34 **0.23 **0.25 **0.22
2 Mission/Strategy -0.04 0.10 *-0.14 *-0.17
3 Leadership 0.06 **0.20 *0.14 0.09

4 Work Culture -0.06 -0.02 0.02 0.04
5 Management Practice 0.04 0.02 0.06 -0.03
6 Structure 0.04 **0.21 *0.16 -0.03
7 Systems *-0.19 -0.09 *-0.14 **-0.22

8 Group Climate 0.01 *0.14 0.10 *0.14
9 Job Match/Skills *-0.13 -0.10 -0.07 -0.10
10 Individual Needs/Values 0.09 -0.10 0.11 0.13
11 Motivation *0.16 0.07 *0.19 **0.20
* Correlation is significant at the 0.05 level.
** Correlation is significant at the 0.01 level.
The table 6.1 reveals that the elements of change namely, external
environment, leadership, structure, group climate, and motivation have
positive co-relation with one or more factors of development. The external
environment is significantly co-related with all the four factors of
development namely D19, D20, D21 85 D22 i.e. the present airport
150
infrastructure and the standards of airport facilities; the organization's
investment in development of airports and its people; the integration of
new technology, market standards, customer needs and world-class
architect in development plans; and the organization's long term vision
and utilization of outside sourcing for its developmental needs.
The structure is co-related with two factors namely, D20 8B D21 i.e.
the organization's investment in development of airports and its people;
the integration of new technology, market standards, customer needs
and world-class architect in development plans; group climate with DV20
and DV22 i.e. the organization's investment in development of airports
and its people; and the organization's long term vision and utilization of
outside sourcing for its developmental needs. The motivation is co-
related with factor elements DV 19, DV 21 and DV22 i.e. the present
airport infrastructure and the standards of airport facilities; the
integration of new technology, market standards, customer needs and
world-class architect in development plans; and the organization's long
term vision and utilization of outside sourcing for its developmental
needs. Mission strategy has negative co-relations with two factors of
development where as systems is negatively co-related with three
elements of development. There has been no co-relations between change
elements namely, culture, management practice, job/skill match and
individual needs/values with development factor of organizational
effectiveness. The change elements namely, structure and leadership are
perceived as negatively effecting the organizational performance.
Thus, it leads us to conclude that there exist significant positive

co-relation among factor of organizational effectiveness i.e. development
and some of the elements of change. There is a need of management
prudent attention to manage such change elements more carefully since
they are positively co-related with organizational effectiveness and would
influence the outcomes more significantly in comparison to other change
elements.
151
Customer Satisfaction and Elements of Change:
The table 6.2 portrays the relationship between factors of

organizational effectiveness i.e. customer satisfaction and the elements of
change.
Table 6.2: Coefficient of Co-relation between Customer Satisfaction

and Elements of Change

of variable CS15 CS16 CS17 CS18
1 External Environment **0.32 **0.37 **0.28 **0.34

2 Group Climate **0.20 **0.19 **0.23 *0.14
3 Job Match/Skills 0.12 0.09 0.09 0.01
4 Leadership *0.13 -0.06 -0.04 **0.21
5 Management Practice -0.10 0.05 -0.01 -0.12
6 Mission/ Strategy 0.03 -0.18 -0.07 0.06
7 Motivation **0.19 *0.16 0.04 *0.17

8 Individual Needs/Values 0.12 -0.01 0.10 0.10
9 Systems -0.06 -0.15 -0.07 0.03
10 Structure -0.04 0.07 0.05 0.11
11 Work Culture *0.14 0.03 0.08 *0.17
The table 6.2 indicates that there exits significant positive co-
relation between factors of customer satisfaction and elements of change
namely, external environment, group climate, leadership, motivation and
culture. The change elements of external environment and group climate
are significantly and positively co-related with all the four components of
152
customer focus namely, CS15, CS16, CS17 and CS18 i.e. the
organization policies 8B objectives reflect importance to customer care;
the management is effective in fulfilling of its customer's need to match
the civil aviation industry worldwide; the employees have defined their
work process and are committed to customer care; and management/
employees receive regular feedback and are responsive to customer
needs. Where as motivation is positively co-related with three elements of
customer focus namely, CS15, CS16 and CS18 i.e. the organization
policies and objectives reflect importance to customer care; the
management is effective in fulfilling of its customer's need to match the
civil aviation industry worldwide; and management/ employees receive
regular feedback and are responsive to customer needs.
The table 6.2 also reveals that the group climate is positively
correlated with two components of customer focus namely CS15 and
CS18 i.e. the organization policies and objectives reflect importance to
customer care; and management/ employees receive regular feedback
and are responsive to customer needs. There exits no co-relation among
the components of customer focus and elements of change namely, job-
skill match, management practice, mission strategy, individual
needs/values; systems and structure.
Thus, it can be concluded that the factor of organizational

effectiveness namely customer satisfaction is positively and significantly
co-related with some of the elements of change. While organizational
effectiveness is influenced by the elements of change, the better
management of these elements of change will improve the customer
satisfaction and overall organizational effectiveness. The change elements
namely, culture and leadership is perceived as influencing negatively and
therefore need more attention.
153
Organization Performance and Elements of Change:
The table 6.3 shows the relationship between factors of

organizational performance, that is, individual & overall organisation
performance and elements of change.
Table 6.3: Coefficient of Co-relation between Organization

Performance & Elements of Change

of variable PF71 PF72 PF73 PF74
1 External Environment **0.25 *0.19 **0.23 *0.16
2 Mission/ Strategy **0.38 *0.19 **0.25 *0.15
3 Leadership -0.09 *-0.14 -0.04 0.04
4 Structure *0.17 **0.34 **0.22 0.03
5 Systems *0.16 *0.14 *0.12 *0.16

6 Group Climate 0.03 **0.24 *0.17 0.05
7 Management Practice *-0.18 **-0.27 **-0.33 -0.11
8 Motivation **0.23 **0.63 **0.35 **0.21
9 Individual Needs/Values *0.18 **0.51 **0.25 **0.27
10 Work Culture 0.01 0.11 -0.01 0.11
11 Job Match/Skills **0.33 **0.56 **0.27 *0.18
The table 6.3 co-relation analysis results indicate that the factors
of performance are significantly and positively co-related with some of
change elements under study namely, external environment,
mission/strategy, structure, systems, group climate, motivation,
154
individual need/ values and job/skill match. The change elements like
external environment, mission/strategy, systems, motivation and
job/skill match are positively co-related with all the four components of
organisational performance namely, PF71, PF72, PF73 and PF74 i.e.
management always achieves set targets of budget, development and
services; employees are always concerned to do a good job and make
efforts to improve customer services; the customers are satisfied with the
development and services of the organization and the organization
achieves highest level of output from its employees of what they are
capable. The structure and group climate are co-related with components
namely PF71, PF72 and PF73 and group climate with component PF72
and PF73 of organizational performance. The table 6.3 also reveals that
management practice and leadership show negative correlation with
components of organizational performance whereas no relationship exists
between culture and component of organizational performance.
Thus, the results lead us to conclude that the factor of

organizational effectiveness namely individual and organizational
performance are positively and significantly co-related with some of the
elements of change. Therefore, the organizational effectiveness is
influenced more by the elements of change which are found positively co-
related with factor of organizational effectiveness and thereby better
management of these elements of change will improve the individual and
overall organizational effectiveness. Summary of co-relation Analysis
reveals that the organizational performance factors namely, development,
customer satisfaction and individual/organization performance have
significant positive co-relation with most of the elements of
organizational change and have positive significant co-relation with one
or more elements of organizational change. Therefore, it can be
concluded that the hypothesis laid in the study that "there is a
significant positive co-relation between elements of change and
factors of organizational effectiveness" is partially proved.
155
ORGANISATIONAL EFFECTIVENESS AND CHANGE MANAGEMENT:
The organizational diagnostic analysis is carried out for the

organization under study to understand the behaviour of organizational
elements of internal and external environment and their impact on
organizational effectiveness. The model provided by Burke-Litwin (1992),
which include explicit reference of goodness to assess and predict
required kind of actions and intervention for the organization, is used for
evaluating organizational effectiveness and organization overall
performance. The table 6.4 portrays the results of statistical analysis of
the elements of change as provided by Burke-Litwin (1992) model.
Table 6.4: Mean and Standard Deviation of overall Organizational

Performance and Change
S. No. Organizational Label Respondent's Response

Change Elements Mean Value S.D. Value
1 External Environment EE 2.49 0.42
2 Mission / Strategy MS 3.09 0.45
3 Leadership LD 2.63 0.55
4 Work Culture WC 3.49 0.61
5 Management Practices MP 3.59 0.77
6 Structure ST 3.88 0.64
7 Systems SS 2.21 0.53
8 Group Climate GC 2.25 0.64
9 Job Match/Skill JM 2.11 0.77
10 Individual Needs/Values NV 1.87 0.67
11 Motivation MV 2.04 0.74
12 Organization Performance PF 3.01 0.69
The results from table 6.4 indicates that the mission/strategy

(mean=3.09, SD=0.0.45); organization culture (mean = 3.49, SD=0.61);
management practice (mean=3.59, SD=0.77); and structure (mean=3.88,
SD=0.64) are the main areas of weakness in the organisation. The
156
respondents are undecided or tend to disagree on these elements of
organizational performance and change. This connotes that mission and
objectives are not well communicated or emphasized among employees.
The macro level analysis of results also indicates that there exist
no long term stated vision policies and strategies to achieve objectives of
the organization. The mean score for work culture and management
practices indicates that these areas need more management attention.
The present structure is not helpful in organizational effective working.
In-depth analysis reveals that people are in strong agreement for
decentralization of authority from central level to work unit levels.
In case of other elements of change (table 6.4) namely, systems

(mean = 2.21; SD=0.53); group climate (mean =2.25, SD=0.64); job/skill
match (mean=2.11, SD=0.77); individual needs/values (mean=1.87,
SD=0.67); and motivation (mean=2.04, SD=0.74), the respondents are
more or less in agreement with these elements. This indicates that
systems and procedures are in good shape, the people have cordial
relationship and help each other in their work. The people are sufficiently
trained in their job and feel satisfied with the work they do, and people
feel proud working in the organization. The people feel motivated which
appear to be due to their job satisfaction and realization of individual
needs/values. The table also shows that overall performance of
individuals and the organization (mean=3.01, SD=0.69) is not very
satisfactory.
The structured analysis of elements of change as depicted in figure

6.1 namely, external environment, mission 86 strategy, structure,
systems, group climate, task performance and individual job/skill
abilities, motivation and individual needs and values are perceived
positively co-related with organisational overall performance. The figure
6.1 portrays the results of predictive causal relationship of organizational
157
elements perceived by the respondents for sample organization in the
form of Burke-Litwin model.
External
environment
2 49
leaderstt^^
2.63-^*^'
Mission f z^nizational
and strate^
3J0 ;: ,3,49-- '••
Systems
221
Work unit
climate
2 25
Task and
Motivation Individual
individual
2 04 needs &
Job skills
values
2 11
1 87
EIOI
Fig. 6 . 1 ; The Predictive Causal Model of Organizational Performance a n d

Change in AAI (Reference source Burke Litwin Model: 1992)
The statistical analysis within the frame work of the model (fig: 6.1)
reveals that employee responses in the categories of external
environment, mission a n d strategy, s t r u c t u r e , systems, group climate,
individual j o b / s k i l l abilities, individual n e e d s / v a l u e s a n d motivation
158
have the strong positive relations with perceived factors of organisational
effectiveness and overall performance. The external environment is
perceived as influencing the organisation (mean: 2.49). The perception of
the respondents towards mission and strategy (mean: 3.10), structure
(mean: 3.68) is uncertain and tends to disagree with the statements
thereby negatively affecting the factors of perceived organisational
effectiveness. In depth analysis indicates that the respondents feel that
the organization's mission is not communicated effectively and its
objectives are not understood well by all employees; the management
strategies adopted by senior executives are not visionary and mission
oriented; the organization does not have clearly defined vision-policy that
includes future objectives and business values; the organization policies
are influenced more by socio-political factors rather than its mission
objectives. Further, in case of structure the employees perceive that the
delegations of authority are not sufficiently de-centralized across
organization working level; the organizational structure at work unit
levels is not effective and does not provide expected results; the
managers do not have flexibility in their work and decision making.
The results analysis reveals that the respondent's perception

towards systems (mean: 2.22), task performance and individual job skill/
performance (mean: 2.11), motivation (mean: 2.04) and individual need 85
values (mean: 1.87) tends to agree to statements indicating positive affect
on perceived organisational performance. It is also observed that
elements namely, management practices [mean: 3.59) has lower than
average mean score. The external environment (2.49), mission strategy
(3.10) and structure (3.88) are perceived as negatively affecting
organisational performance thereby needs more management attention,
besides management practices (mean: 3.59), organisational culture
(mean: 3.49) which are also perceived by respondents as negatively
affecting the performance. Strengthening and further improving of
systems (mean: 2.22), task performance and individual job/ skill abilities
159
(mean: 2.11) are also likely to improve organisational effectiveness since
these categories are also perceived strongly and positively related with
factors of organisational performance and change.
The study results also reveals that the organization has not been
able to achieve set targets of customer satisfaction (table 2.2) and could
not develop world class airports (annexure table 8.10) since its inception
in 1995 though customer satisfaction and development of world class
airports have been one of the mission objectives of the organization
under study. Therefore, it could be concluded that the organization need
an effective mechanism of change management to better the overall
performance and effectiveness of the organizational.
There are sound reasons to believe that the organizational

effectiveness of the Airports Authority of India will significantly improve if
the issues and problem areas highlighted in this study are properly
addressed and an action plan is devised for management of change and
improving the effectiveness of the organization. Keeping this in view the
next chapter, after summarizing the findings and conclusions of the
study, puts forth some important suggestions for putting the
organization on sound rails and for promoting superior organizational
performance.
*******
160
CHAPTER :: 7
SUMMARY OF FINDINGS,
CONCLUSIONS AND SUGGESTIONS
^ Findings and Conclusions

^ Suggestions for Improvement
^ Scope for Future Research
161
FINDINGS, CONCLUSIONS
AND SUGGESTIONS
The phenomenon of change is significantly affecting the

functioning of civil aviation sector in the country and the associated
organizations have to concentrate more and more on the effective
management of change for sustaining their existence and improving their
operational effectiveness. The government of India is in the process of
finalizing its new aviation policy and allowing private participation in
development and management of existing and new airports. Against this
backdrop, the present study assumes added significance and need of
better understanding of the changing environment and management of
change in civil aviation.
In consonance with the objectives of the study and to give a proper

direction to it, a set of working hypotheses has been evolved for
verification. With a view to substantiate the hypotheses, both primary as
well as the secondary data has been used. The entire work in the present
study has been organized in six broad chapters. The first chapter of the
study brings to light that how change management has registered its
importance in civil aviation industry. The chapter also makes us
understand the theoretical aspects of organisational effectiveness and
the role of change management. The chapter two portrays the overall
overview of global civil aviation and Indian civil aviation. The chapter also
depicts brief review of various public organizations of civil aviation
industry in India and abroad and there changing patterns. The sample
organization review interns of its management infrastructure, financial
status, human resource, traffic potential and challenges faced by the
organization have been discussed in the chapter. The chapter three has
been devoted to review of research studies on change management and
organizational effectiveness. Chapters four has presented the research
162
methodology. The chapter five and six has discussed the results of the
study.
In this chapter an attempt has been made to summarize the

findings and conclusions of the study and compare them with the
research studies carried out by other researchers from time to time in
the field of change management. The suggestions for managing the
change and improving operational effectiveness in civil aviation have also
been recommended. Moreover, the chapter also sets the agenda for
future research.
SUMMARY OF FINDINGS AND CONCLUSIONS:
The study brings to light that organizational change has

established its relevance in civil aviation and in its associated
organizations. There is impressing need to understand and treat the
aspects of organizational change and its management to maintain and
improve organizational effectiveness and individual/organizational
performance. The results indicate that civil aviation as a whole and
Airports Authority of India in particular is severely influenced by external
and internal elements of change. The organization under study is
perceived as affected by change elements and their improper
management. The organization diagnosis and analysis of study results
reveal that the organization needs transformational change besides
improvement in management practices of various change elements
affecting the organizational performance.
The results of the study also reflects that the present change
management practices have not been able to either improve the
standards of airports to world class or the performance of the
organization to the expected level. Macro level investigation reveals that
the organizational factors namely customer satisfaction and airport
development are perceived doing badly whereas general management,
human resources and financial parameters are perceived as satisfactory.
163
Therefore, the organization needs to concentrate more on these two areas
of organizational effectiveness as compared to other three for achieving
superior performance.
The organizational environment has been studied across

demographic variables namely e.g. age, education, length of service,
management level and work units. The investigation concludes that
there exits significant difference in perception of employees about various
factors of organizational environment and dimensions of change.
Therefore, while planning and implementing change, it is desirable to
identify the need and methodology of change management in consonance
with demographic variables to ensure effective results of change
management initiatives. In case of the sample organization, the results
indicate that need for change is perceived as positive across all age
groups whereas, difference exists among different age groups in respect
of areas of change and attitude towards change.
Similarly employees having management education tends to

agree/strongly agree for need for change, followed by employees having
engineering education and then normal graduate/post graduate
employees. Moreover, it is also observed that senior management level
employees are more positive towards need for change and attitude
towards change, followed by middle management and then first level
management. Thus, it leads us to conclude that employees with different
age, education, management level, length of service and work units
perceive organizational change elements and dimensions of change
differently and thereby need to have distinct change initiatives to make
change efforts successful and long lasting.
A dynamic view of predicted categories of change for sampled

organization is presented in fig. 5.1, 5.2 and 6.1. It is evident from the
findings of these figure's analysis that most of the categories scoring low-
average means pertains to transformational factors zone and some of
164
them are positively co-related with organization performance. This leads
us to conclude that sampled organization requires transformational
change rather than transactional change. The boxes is the lower half,
refer as transactional factors, scored above average scores except
management practice and structure which appears to be influenced by
poor performance of categories namely mission strategy and leadership.
While studying the organizational environment and dimensions of

change for the sample organization, it was found that a number of
factors both implicit, which constitute the stated subjective thoughts and
perception values of individual members, and explicit, which are
enmeshed with internal and external environment of the organizations,
influence organizational performance and management of change in
particular. Following components of organizational management and
organizational environment have been identified, which are perceived to
be negatively affecting the organizational performance and management
of change and therefore need micro planning and proper management.
External Environment and Management of Change:
The external environment, has been one of the influential

component of organizational change. In case of the present study of
sample organization, the macro level findings reveal that the external
environment forces such as changing government policies, and
technological development (mean: 1.82), customer dissatisfaction (mean:
3.53) and global competitiveness (mean: 2.11) are affecting the sample
organizational environment. Pfeiffer and Salancik (1978) have also
elaborated the influence of these factors on external environment in their
study. The findings of the study report that the external environment is
positively co-related with the component of organizational performance
namely development, customer satisfaction and organizational
performance and thereby need more attention of management.
165
Mission/strategy and Management of Change:
Mission is concerned with what the organization is all about, its

purpose and primary goals. The findings of the study reveals that the
employees perceive that the mission/strategy (mean: 3.10) negatively
affect the organizational performance. The mission and strategy are also
found to be significantly and positively co-related with organizational
performance. Macro level findings reveal that organization does not have
well defined vision policy and management strategies are not mission
oriented. This leads us to conclude that the mission and objectives are
not communicated or well understood by the employees and employees
do not feel involved. This supports the findings of Johnson and Scholes
(1993) that strategic plans result in a low level of ownership and lack of
understanding. Quinn (1993) also argues that one of the reasons for
developing organizational strategy in an incremental manner is to
generate employee's effort and commitment in relation to the mission
strategy. Therefore, it can be concluded that there is a need for improving
communication and emphasis on mission/objectives across organization.
Organizational Culture and Management of Change:
The organization culture matters and more importantly, the

positive culture can lead to improved performance. The findings of the
study conclude that the organizational culture is perceived as poor
(mean: 3.49) and thereby affecting the organizational performance. The
results that employees are not committed to their work and customer
service (mean: 3.55) and the people do not have harmony in working with
togetherness to achieve good performance (mean: 3.30), are also index of
poor culture. The organization is also perceived as not practicing fine
tradition of customer service of aviation industry world around (mean:
3.62). These findings of the study are validated by research work of
Nilkant and Ramnarayan (1990). This leads us to conclude that there is
need to improve work culture in the organization to improve its
166
performance. This component of change is also found co-related with
factor of organizational performance namely customer satisfaction and
therefore need careful attention of management, as customer satisfaction
being one of the organization's mission objective.
Organizational Structure and Management of Change:
Structure refers to the arrangement of organizational functions i.e.

human resource management, finance, services etc and/or operational
work units i.e. regional offices, airports, customer services etc that
signify levels of responsibility, decision making authority, and lines of
communication and relationship that leads to implementation of
organization's mission, objectives, and strategy. The structure (mean:
3.88) is found to be perceived by employees as negatively affecting the
sample organizational performance. The results reveal that the factor is
also positively co-related with organisational performance. Fritz (1994)
also believed that the structure of an organization has a strong influence
on its ability to realize change successfully. He further argued that
structure is important and powerful influence of any change initiative in
organization and if we don't deal with care, we won't be able to change
the organization. This supports the findings of our study that the poor
structure of the organization is affecting the change in organizational
performance. The analysis of the results of the study reveals that there is
a need to bring change is organizational structure namely, delegation of
authority across organization (mean: 3.90); working structure at work
units/airports (mean: 3.92); and flexibility is managers works and
decision making (mean: 3.82).
Management Practices and Management of Change:
The management practices have been predicted as low performing

element (mean: 3.59). The management practices, being placed among
transactional factors, influences the structure, systems and work unit
climate thereby affecting the organizational performance. The managers
167
are seen non-positive (mean: 3.59) towards innovative work techniques
and non-appreciative of promoting and encouraging new ideas. Though
the management practice is found to be negatively co-related with
organizational performance (table 6.3) but has linkage with leadership
and thereby influences organizational performance. The leadership box
precedes the management practices category in the model of
organizational performance and change and thus account for more
variance in organizational performance than did other variables. Weiner
and Mahoney (1981) also supported this fact.
Customer Focus and Management of Change:
The customer satisfaction for the organization in service sector is

of prime importance and the same is true for the sample organization
too, being customer satisfaction as one of the objectives of organization's
mission. The findings of the study indicate that employees perceive
customer focus as tending to undecided (mean score: 2.63). The factor is
significantly positively co-related with external environment, group
climate, organization culture and motivation thereby influencing and
negatively affecting the organisational performance. Similar results are
predicted by the customer survey index carried out by organization
(table: 2.2) which shows that there is no significant improvement in the
customer satisfaction index level during the last five years. This leads us
to conclude that organization need to strengthen its efforts for improving
its customer orientation by providing attention to the component namely
external environment, group climate, motivation and work culture. The
macro level analysis of results show that the areas of management
practices on customer focus, commitment of employees towards
customer care and process of regular feed back need improvement. Apgar
Mahlon (1998) has also discussed in his research findings that helpful
mechanisms (management practice) help to manage commitment at work
places, resulting in improved customer satisfaction.
168
Development and Management of Change:
The perceptions held by organization's employees about overall

development (mean: 3.20) is negative and macro level analysis from the
study reveals that the areas of airport infrastructure, standard of airport
facilities, investment percentage in development, utilization of out
sourcing, and non-availability of long term vision are some of the critical
areas of concern. The finding also predicts that the factors of
development are positively co-related with external environment,
leadership, structure and motivation as also argued by Bennis and
Nanus (1985). Therefore, the management need to concentrate its efforts
to improve airport infrastructure, standards of passenger facilities,
modernization of equipment, long term vision policies and management
of change. The area of development needs to be studied at micro level
and proper policies starved on airport development and airport
management.
Organizational Effectiveness and Management of Change:
The organization effective management is paramount in today's

business environment (Handay: 1990). The factors of organizational
effectiveness namely, development, customer satisfaction, individual/
organizational performance are significantly and positively co-related
with change variables namely external environment, mission and
strategy, structure, system, task and individual job skills, individual
needs and values and motivation. The change factors mission and
strategy (mean: 3.09), and structure (mean: 3.88) are perceived adversely
affecting organizational effectiveness and therefore need more attention.
The change factors namely systems (mean: 2.21), task and individual
job/skills (mean: 2.11), individual needs and values (mean: 1.87), and
motivation (mean: 2.04), which are positively co-related with factors of
organizational effectiveness, are perceived as influencing organizational
169
performance positively. Thus, further attention on these elements of
change will improve organizational effectiveness rapidly.
The change elements like leadership and management practice are

perceived as affecting organization environment negatively and therefore
need management attention. The results of study also indicate that the
categories namely mission and strategy, and organizational culture, low-
scoring elements, are located in transformation factor zones thereby
having more adverse influence on organizational performance. These two
categories also found to be positively co-related with organizational
performance and thus have greater impact on organizational
effectiveness.
The change initiatives for any organization require apropos

organizational diagnosis to establish the need for change, identify areas
change and the attitude of employees towards change. The study has
examined and analyzed the response of employees to identify the various
useful dimensions of change in sample organization namely, need for
change, areas of change and attitude towards change.
Need for Change:
The findings of the study indicate positive response towards factors

used to evaluate need for change (mean score: 1.97). This depicts that
the respondents are in agreement for need for change across all
demographic variables. The macro level analysis reveals that organization
mission, though clearly defined, could not result in fore told ground
improvement; the organization does not have defined long term vision
policy and realistic plans for its growth; the priorities of organization are
perceived as strongly influenced by socio-political factors and not by
mission objectives (mean score: 1.84). The structure is not found
conducive with organizational working. These findings are also supported
by co-relation statistical analysis in study. The external environment
found to be influencing, the organization (mean score: 2.11). It can be
170
summarized from the above that the employee perceive a need for change
in the present scenario of the organizational environment. The results
support the findings of the Chandra Committee (2003) recommending
restructuring of the sample organization.
Areas of Change:
In order to suggest future change management strategies we tried

to diagnose the areas of change in the sample organization. The
perceived results were analyzed and the findings reveal that the
decentralization of authority from central level management control to
work units/airport level management system is strongly perceived by
employees (mean: 1.84). The employees found to be uncertain on
question that private company managed airports are better developed
than government organization managed airports. Organization culture is
another area, which is perceived as low average whereas poor career
growth and general dissatisfaction is rejected as area of concern for
change. The results from fig. 6.1 and 6.2 also lead u s to conclude that
organization requires transformational change rather than transactional
change. The areas of major concern are mission and strategy, leadership,
management practice, culture and structure besides improvement in
customer focus and airports infrastructure development.
Attitude towards change:
The attitude of employees towards change is an important aspect

of change management and study of the component facilitates
management consultant/leaders to manage change resistance more
effectively. Out of five components assessed in present study, three found
to be perceived positively by the employees namely, new government
policies is supportive for change, organization has the capacity to
change, and managers and employees are trained to meet challenges
effectively. However, the two components namely, employees are adoptive
to new work culture and senior officers are adoptive to new ideas did not
171
find positive response. It can be concluded that before initiating any
change process there is a requirement of making employees more aware
of change initiatives and more adoptive to change to have lesser
resistance and successful change management.
SUGGESTIONS FOR ORGANIZATIONAL IMPROVEMENT:
In view of the conclusion of the present study and putting the

sample organization on sound rails, besides improvement in the areas
identified in the study, some of the aspects of improvement measures
suggested are, professional airport management, thrust on airport-
specific approach, cost control and maximizing revenue, improving
customer satisfaction, making airport security user friendly,
mechanization of terminals and facilities upkeep, private participation in
airport infrastructure development, improving human resource behavior,
and developing mechanism for regular performance evaluation based on
customers feed back and periodical organizational diagnosis.
Effective Change Management in Airports:
The airports must be managed in a processional manner to fulfill

the organization's objectives and people's expectations. The rapid
changes in airport activities, complexity of operations, increasing threats
of security, customer satisfaction etc have all contributed to the
evolution and increased need of effective change management in airports.
The study results reveal that prevailing airport management systems and
change practices adopted by the organization have not resulted in the
development of world class airports in India. The results suggest that
the present organization system needs a transformational change that
requires major restructuring of the organization for improving its
effectiveness and better development of airports infrastructure in the
country. In case of the sample organization, the effective change
172
management in airports is possible only if the components identified in
study such as, mission and strategy, leadership, management practice,
organizational structure, systems and culture are addressed in right
perspective and with sincerity. The first and foremost strategy should be
to depoliticalize the process of control and avoid politicization of airport
development policies. The government should not adhere to the concept
of treating the organization and airports as subordinate to administrative
ministries and should be given full autonomy in decision making,
planning, developing and managing of airport on commercial aspects.
The study results also suggest decentralization of authority from central
level to airport levels.
It is suggested that the airport should be identified as independent

units and airport level governing bodies formed with participation from
concerned local agencies, airlines and users, with in-built authority and
accountability. Further, airport specific improvement plan should be
developed for improvement in the categories identified in the study and
executed in specific time frame followed by annual organization diagnosis
for evaluating organizational performance and change, and than to plan
further improvement initiatives in deficient areas identified in such
evaluation for 2004 and so on as portrayed for 2003 in table 7.1 below.
Table: 7.1 Perceived Organizational Performance and Change at AAI

GENERAL MANAGEMENT:
1. 2003 *w%.w . -^^ w^î^ „jjr^ 2.34
Management
2004
2003 2.28
Human Resource
2004
2003 2.30
Finance Resource
2004
2003 2.60
4. Customer Focus
2004
2003 3.20
5. Development
2004
Likert Scale Measuring Parameters
173
Table: 7.1 Perceived Organizational Performance and Change at AAI
ORGANISATIONAL ENVIRONMENT:
External 2003 2.49
environment 2004
2003 3.09
2. Mission/strategy
2004
2003 2.63
Leadership
2004
2003 3.49
Work culture
2004
Management 2003 3 59
practice 2004
2003 3.88
6. Structure
2004
2003 2.11
Systems
2004
2003 T 2.25
8. Work group climate
2004
2003 W^^-km 2 11
Job / skill match
2004
Individual needs/ 2003 1.87
10.
values 2004
2003 2.04
11. Motivation
2004
Organisational 2003 -., 3.01
12.
performance 2004
Likert Scale Measuring Parameters
Optimizing Organizational Effectiveness:
The airports are rated based on their infrastructure, passenger

handling capacity, operational efficiency, service standards, customer
satisfaction and revenue profits. In case of the sample organization, the
study results reveal that the two organizational factors namely customer
satisfaction and infrastructure development are negatively affecting
organizational effectiveness besides components of management such as
mission and strategy, management practices, leadership, structures,
system and work culture as portrayed in table 7.1.
174
Therefore, it is suggested to implement effective and properly
planned change initiatives to improve these areas besides improvement
in airport infrastructure to optimize organizational effectiveness.
Customer satisfaction is found to be positively co-related with the
element of change like external environment, group climate, motivation
and culture and therefore should be provided extra attention to improve
these categories to better the organizational effectiveness. Human
resources development measures as suggested in succeeding
paragraphs, shall further improve customer satisfaction. The study
results also suggest that improved budget planning and monitoring
system would further improve organizational performance.
Maximizing Profit and Minimizing Expenditure:
The review of best-maintained airports in the world reveals that

they earn 60-70% of its revenue from the non-aeronautical services
besides providing quality passenger and operational services. In Indian
airports, only 20-30% revenue comes from non-aeronautical services
and, therefore, there is a big scope of improvement in this area. It is
suggested that the airports must concentrate on developmient of more
and more commercial activities to maximize the non-aeronautical
revenue besides efforts to enhance traffic revenues.
The financial performance of the sample organization though has

been predicted satisfactory but as revealed from study results there
appears noticeable decrease in profit during last year due to out of
proportion increase in expenditure. The following measures are
suggested to maximize organization profit and minimize expenditure:
a) Optimization of revenues from aeronautical charges through

negotiation with lATA and other associated agencies;
175
b) Implementation of revolutionary measures towards raising non-
aeronautical revenues by creation of non-aeronautical activities
such as shopping malls, re-creation clubs, advertising, effective
use of land, and grant of management contracts to have less
infrastructure and human resources burden on the organization;
c) Optimization and rationalization of various airport charges like

rentals, service fee, fuel through put charges, passenger fee,
security charges and facility charges etc ;
d) Creating more opportunities in diversified airport business such

as, cargo facilities, ground handling services etc ; and
e) Implementation of value engineering techniques in maximizing

economy in expenditures, optimal use of manpower, elimination of
duplications, contracting-out of services etc and letting out the loss
making airports (constructed or/and managed as socio-political
compulsions) to state governments or getting compensated for
capital and operational cost of such airport from state or central
government.
Improvement to Airport Infrastructure Development:
There are 126 airports in the country, which are managed by the
sample organization. The fact remains that all the airports could not and
need not to be developed to the standards of world class airports
considering the financial, functional and operational complexities
involved in the system. Therefore, it is suggested that the airports
should be identified and classified in respect of their importance and
operational use as International Hub (IH) airports, Regional Hub (RH)
airports, and other small domestic airports. Once identified, development
of international hub airports should be given priority to develop them to
world-class airports with good connectivity to regional hub airports and
176
other domestic airports. While planning and developing the
infrastructure of international airports, ICAO standards and
recommended practices, world-class architect, quality work agencies,
state-of-art airport management system should be deployed. It is
suggested that airport specific development plans should be initiated,
based on the identified deficient categories, and executed accordingly.
The study results also reveal that there are many airports (Annex table:
8.4) in India which are under utilized and therefore require proper study
before taking up development of such airports and further creation of
new airports in the country.
Human Resources Development:
The sample organization is service sector organization and has

employed plentiful human resources. The terminal management,
customer care, airport security, navigation Ss communication, fire
preventive are some of the critical areas which are human resource
based and have significant impact on organizational performance and
change, especially in the era of fast changing environment and customer
oriented civil aviation. The study also reveals that the change
management practices adopted by the sample organization in the last
decade have not resulted in expected improvement in organizational
effectiveness and customer satisfaction. Besides, lack of proper airport
infrastructure and quality services, employee's attitude towards
customer care is perceived as negatively affecting organizational
performance. It is suggested that human resources should be trained by
professional institutions like IITs and IIMs besides regular internal
training to improve their capabilities in customer orientation and
resourceful management. There is a need to develop professionalism in
airport management and therefore, it is suggested to develop separate
manpower/department for airport management and a database
maintained for the manpower. The training and development of airport
177
management staff should be need based with exposure to latest and
modern management practices in civil aviation world.
In recent times, airport security has become a very important

component of an airport business especially in post era of well known
America's 9/11 and Colombo airport disastrous incidents. Customer
satisfaction survey often indicates negative effect of excessive security on
passengers' satisfaction. There for, it is suggested to regularly trained the
security personnel and modernize security systems at airports by way of
introducing passenger profiling, airport check-in systems, touch free
security, security-with-smile to ensure improved customers satisfaction
and better airport security; thereby improved organization performance.
Private Participation in Airports Development:
The study reveals that complete privatization of the airports is not

the favored solution for improvement of the airport infrastructure and
better management of the airports. Therefore, it is suggested that
improvement of existing airports should be planned considering the
option such as floating of public bonds, shares, introducing of
management contracts from reputed firms and the creation/developing
of new airports should be on the bases of built on transfer (BOT), built on
leased transfer (BOLT), joint ventures, and private participation.
The airports management, while being highly technical, security

sensitive and specialized field, is a service oriented profession. The
quality of infrastructure and service standards have direct impact on
organizational performance. Study reveals that the factors of
organizational effectiveness namely, infrastructure development and
customer satisfaction have scored low-average ratings and therefore
must be improved to attain overall improvement in organizational
performance. It is suggested that, besides private participation in
178
developing airport infrastructure, the upkeep of airport terminals, cargo
facilities and other similar services should be managed through private
management contracts as done in most of best managed airports in some
of Asian and European countries.
Role of Central and State Governments:
The study reveals that the sample organization is affected by the

socio-political influences rather than by its mission and objectives. It
indicates that there is considerable political influence in management
policies for development of non-viable airports in the country, which
negatively affect the organizational performance and growth. It is
revealed from the secondary data that 70-80% of the airports in the
country do not have sufficient traffic and many of them have been
constructed due socio-political compulsions. Such airports are
contributing heavy loss to the organization. It is suggested that these
airports, which are constructed or forced managed due to socio-political
compulsion, should be handed over either to respective state
governments or suitably grant-in-aid to AAI to cover-up both initial
capital as well as operational cost. Further, it is imperative to
concentrate on policy regulation, airport security and environment,
which requires the government attention in developing long term and
airport friendly policies to facilitate better, systematic and futuristic
airport growth in the country. There are many airports where
development and operational safety are affected due poor surrounding
environment and need state government intervention and clearly stated
policy on maintenance and unruly growth of the areas in near vicinity of
airports.
It is suggested that the local airport administration should have

appropriate representation in municipal or/and city organizations
responsible for managing and developing of surrounded areas of airports.
179
state governments should ensure that municipality and city master
plans should take care of future airport growth and its associated
infrastructure to make airport more viable and people friendly.
SCOPE FOR FUTURE RESEARCH:
The study findings suggest that there are some serious managerial
implications in terms of their effective choice of strategies and their
effective implementation. These findings warrant further in-depth studies
to investigate the subject of management of change and development of
airports. Further, research may be conducted:
1. to provide a holistic view considering other organization in civil

aviation in India and outside country. It may bring out different
aspects pertaining to the locations, organization environment and
society culture in other organization or country.
2. to include the workers and customers as part of the sample,

besides managers as that would provide a better and broader
picture of the organization.
3. to study the concept of change management from the point of view

of nation's multi-culture society and be compared with
organizations of the region/world of similar or different culture to
find out impact and relationship associated with different cultures.
4. to study the effect of change management on the organizational

effectiveness with special emphasis on change in external
environment, such as change in national political system, change
in economic liberalization policies, de-regulation of laws,
organizational mergers, privatization and technological
transformations.
********
180
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******
200
QUESTIONNAIRE
QUESTIONNAIRE
To,
Dear Sir/ Madam,
This questionnaire is related with the research work being

conducted by me under the able guidance of Prof. S. M. Ozair, Dean,
Faculty of Management, Aligarh Muslim University and Prof. A. M. Shah,
Dean, Faculty of Management, University of Kashmir. The information
and opinions expressed by you in this survey shall be exclusively used
for research purpose only and the data shall be kept strictly confidential.
The questionnaire is divided in four parts as per the need of study.

You are kindly requested to read each part of the questionnaire carefully
and express your free opinion and response.
I shall be grateful, if you would complete the questionnaire and

dispatch the same in the enclosed envelop on or before 31^^ December'
2003 at the below given address.
Thanking you for your valuable co-operation.
Yours faithfully
(B. P. SHARMA)
B-63, Airport Apartments,
Vikaspuri, New Delhi-110018
Tel: 011-25532405.
*******
202
PART -I
(DEMOGRAPHIC DATA)
Below given are few data in respect of individual. Kindly read and
fill/cross mark (X) in the appropriate column, which are relevant to you.
A. Optional Data
1. a) Name
2. b) Designation
B. Compulsory Data
3. Gender: Male / Female
4. Marital Status Married /Un-married
5. Age
a) 40 years 85 below
b) 41 years to 50 years
c) 51 years to 60 years
6. Education
a) Bachelor's Degree 85 below
b) Engineering Degree/Diploma
c) Management Degree/ Diploma
7. Level of Cadre
a) First level management cadre
b) Middle level management cadre
c) Senior level management cadre
8. Nature of work
a) Operational/ Communication
b) Engineering/ technical
c) General Management
9. Length of service
a) 10 years 85 below
b) 11 years to 20 years
d) 21 years fit above
10. Place of posting
a) Corporate / Regional Hqtr.
b) International Airport
c) Domestic Airport
d) Any other place
********
203
PART II
This part of questionnaire consists of statements referring to functional

aspects of your organization. Please read the statement carefully and
provide your response by cross marking (X) in the appropriate column of
the assessment scale, the extent for which you agree or disagree with the
statement as they apply to you in the environment of your organization.
ASSESSMENT SCALE
Agree Agree Undecided Disagree Disagree

strongly strongly
(1) (2) (3) (4) (5)
QUESTIONNAIRE
S. STATEMENT RESPONSE
No
1 2 3 4 5
1 The organization's mission and its
objectives are clearly defined.
2 The management has autonomy and
authority in implementing its plans,
policies 85 objectives.
3 The management functional structure
and style adopted by Senior officers is
effective and results oriented.
4 The management team and managers
provides effective and inspiring
leadership.
5 The management is committed
towards superior performance of the
organization.
6 The employees are satisfied with the
policies of the organization regarding:
a. Remuneration benefits (pay etc)
b. Career growth (promotion etc)
c. Training and development
d. Job satisfaction
e. Recruitment policy
7 The qualification, skill, training and
experience of working personnel meet
organization requirements.
8 The managers are approachable and
flexible to new ideas.
9 The management relationship with
unions and associations are cordial.
204
No
1 2 3 4 5
10 The organization finance resources are
adequate.
11 The management has broad financial
autonomy.
12 The budget allocation for organization
strategic development plans is
compatible to its mission objectives.
13 The management do provide
committed budget allocations for its
employees training Ssdevelopment
14 The budget monitoring systems are
effective in terms of accuracy,
relevance and target timeliness.
15 The organization policies 86 objectives
reflect importance to customer care.
16 The management present practices is
effective in fulfilling its customer's
needs, the civil aviation industry
standards worldwide.
17 Employees have defined their work
process and are committed to
customer care.
18 Employees receive regular feedback
and are responsive to customer needs.
19 The present airport infrastructure and
the standards of airport facilities are
adequate.
20 The organization's investment in
development of airports is adequate
and comparable to industry
worldwide.
21 The integration of new technology,
market standards, customer needs 86
world-class architect in development
plans is satisfying.
22 The organization has long term vision
and utilizes outside sourcing for its
developmental needs (i.e government,
private sector, joint ventures, global
consultations etc.)
*******
205
PART -III
This part of questionnaire consists statement refereeing to dimensions of

change. Please read these statements carefully and provide your response,
by cross marking (X) in the appropriate column on the assessment scale,
the extent to which you agree or disagree with the statements as they apply
to you within your organization.
ASSESSMENT SCALE

strongly strongly
(1) (2) (3) (4) (5)
QUESTIONNAIRE
No.
1 2 3 4 5
1 The organization's mission though
clearly defined but could not result in
foretold ground improvements.
2 The organization does not have long
term vision and realistic plans for its
growth and development.
3 The priorities of the organization are
influenced by sociopolitical factors and
not by mission objectives.
4 The present organizational work
structure does not provide effective
results and accountability.
5 The market forces such as
globalization, privatization 85
technology developments are exacting
compliance for change.
6 The decentralization of authority from
central level management control to
airport level management system shall
improve system effectiveness &
efficiency.
7 The autonomous bodies/private
company managed airports are better
developed than government bodies
managed airports
206
No.
1 2 3 4 5
8 The managers and employees do not
delineate organizational belongings
and commitment.
9 There is general dissatisfaction and
poor opportunities for career growth in
this organization.
10 The airport modernization and
development plans lack integration of
modern technology.
11 The government new civil aviation
policy is supportive for change.
12 The organization has the capacity to
change
adoptive and trained to meet
challenges effectively.
14 The employees are generally adoptive
to new work culture due organization
working environment.
15 The senior level officers are
approachable and always listen to
ideas.
*******
207
PART -IV
This part of questionnaire consists statement referring to various

performance factors of your organization. Please read these statements
carefully and provide your response, by cross marking (X) in the
appropriate column on the assessment scale, the extent to which you agree
or disagree with the statements as they apply to you within your
organization.
ASSESSMENT SCALE

strongly strongly
(1) (2) (3) (4) (5)
QUESTIONNAIRE
No.
1 2 3 4 5
1 The external forces such as
government regulations, liberalization,
privatization and changing technology
etc influence the organization
2 The customers are generally satisfied
with development and standard of
services provided by the organization
and its employees.
3 International economic environment,
global competitiveness and security
concerns effect the organizational
performance.
4 The organization mission is effectively
communicated and its objectives are
well understood by all employees.
5 The management strategies adopted
by senior executives are visionary and
mission oriented.
6 The organization has a clearly defined
vision-policy that includes future
objectives and business values.
7 The management team provides
effective and inspiring leadership.
8 The managers regularly review
individual performance against agreed
standards 86 budgeted/planned tasks.
208
JVo.
1 2 3 4 5
9 The management style adopted by
senior officers is helpful in
accomplishing defined tasks and is
mission oriented.
10 The organization has fine traditions of
public/customer service in the
aviation industry.
committed to their work and customer
care/service.
12 The people of various departments
have harmony and work together to
achieve good performance.
13 The managers often adopt innovative
work techniques and practice open-
system of functioning.
14 The management makes constant
efforts for ways of improving of the
working and organizational
performance.
15 The management promotes
challenging and creative environment
and encourages innovation.
16 The delegations of authority are
sufficiently de-centralized across
organization working structure.
17 The organizational structure at work
unit levels is effective and provides
expected results.
18 The managers have flexibility in their
work and decision making.
19 The work procedures and
responsibilities are well defined and
documented in this organization.
20 The control mechanism 86 information
systems of the organization are
effective and result oriented.
21 The organization set realistic plans
and reviews performance against set
standards.
22 The organizational inter-department
units are efficient and always achieve
defined targets.
209
No.
1 2 3 4 5
23 The managers and employees co-
operate amongst in order to get the
work done effectively.
24 The conflicts of views are resolved by
solution, which are understood and
accepted.
qualified and trained to do their work
and meet job requirement.
26 The employees generally know their
job well and execute it effectively.
27 The job design meets work objectives
and suits employees work skill.
28 I feel that the salary and other benefits
I receive commensurate my work and
my needs.
29 I feel that my job is secured and has
recognition outside organization.
30 I have warm feelings for the
organization and feel proud to work
with this organization.
31 There are recognition and
encouragement for doing the jobs and
tasks performed.
32 There are opportunities for promotions
and increased responsibility in this
organization.
33 My job provides me work satisfaction
and opportunities for career growth.
34 The management always achieves set
targets of budget, development and
services.
35 Employees are always concerned to do
a good job and make efforts to improve
customer services.
36 The customers are satisfied with the
development and services of the
organization.
37 The organization achieves highest level
of output from its employees of what
they are capable.
210
ANNEXES
211
ANNEXES
Annex Table: 8.1-A
REVIEW OF AIRCRAFT TRAFFIC AT AAI AIRPORTS

(SOURCE: AAI ANNUAL STATISTICAL DATA REPORT - 2003)
YEART AIRCRAFT MOVEMENT (In ,000 )

International Domestic Total
1996-97 94.9 324.4 419.3

1997-98 98.2 317.5 415.7
1998-99 99.6 325 4 425
1999-00 99.7 368 0 467.7
2000-01 103.2 386.6 489.8
2001-02 107.8 402.1 508.9
2002-03 116.4 444.2 560.6
AIRCRAFT TRAFFIC TRENDS

600
-4-AIRCRAFT
MOVEMENT
5 500 (In ,000)
International
LU 400
>
•-AIRCRAFT
o 300 MOVEMENT
(In ,000)
Domestic
200
AIRCRAFT
0^ 100 MOVEMENT
(In ,000)
Total
1996- 1997- 1998- 1999- 2000- 2001- 2002-

97 98 99 00 01 02 03
YEAR
212
Annex Table: 8.1-B
REVIEW OF PASSENGER TRAFFIC AT AAI AIRPORTS

YEAR PASSENGER TRAFFIC (In Millions )
1996-97 12 22 24 28 36 5
1997-98 12 78 23 85 36 63
1998-99 12 92 24 07 36 99
1999-00 13 29 25 74 39 03
2000-01 14 01 28 02 42 03
2001-02 13 62 26 36 39 98
2002-03 14 82 28 90 43 72
PASSENGERS TRAFFIC TRENDS

50 •' •^<^%; '?;--"--'^;-I;"'''î'l^'U:
-PASSENGER
45
O TRAFFIC (In
IE 40 Millions)
LL International
< 35
a.
\- 30 -PASSENGER
TRAFFIC (In
LU 25
Millions)
O
Z 20 Domestic
LU
W 15
PASSENGER
w 10 TRAFFIC (In
< Millions) Total
Q. 5
0
1996- 1997- 1998- 1999- 2000- 2001- 2002-

97 98 99 00 01 02 03
YEAR
213
Annex Table: 8.1-C
REVIEW OF CARGO TRAFFIC AT AAI AIRPORTS

(Source: AAI Annual Statistical Data Report)
YEART CARGO (In ,000 MT)

1996-97 479.09 202.12 681.21
1997-98 488.18 2174 705.58
1998-99 474.66 224 49 699 15
1999-00 531.84 265.57 797 41
2000-01 557.77 288.37 846 14
2001-02 560.23 294.05 854.28
2002-03 646.14 333 22 979 36
TRENDS OF CARGO TRAFFIC
1200 XT"'^ "
- • - C A R G O (In
1000 ^ ^''•?4ir
,000 MT)
O International
u. 800 -
u.
•CARGO (In
I— 600 ,000 MT)
O -„.-. Domestic
O
400
<
CARGO (In
200 -J ,000 MT)
Total
^^;^^^
1996- 1997- 1998- 1999- 2000- 2001- 2002-
97 98 99 00 01 02 03
YEAR
214
ANNEX TABLE: 8.1 D: AIRCRAFT MOVEMENTS (In Nos)
Year International Domestic Grand

Total
Sch. Non Sch. Total ScH. Non Sc. Total
1995-96 86057 6458 92515 281051 33676 314727 407242
1996-97 88261 6623 94884 289745 34717 324462 419346

1997-98 89058 9168 98226 290301 27230 317531 415757
1998-999 91776 7787 99563 294760 30632 325392 424955
1999-2000 91748 7953 99701 326951 41064 368015 467716
2000-2001 96007 7204 103211 345300 41275 386575 489786
2001-2002 101150 6673 107823 362393 39715 402108 509931
PASSENGERS TRAFFIC (in numbers)
International Domestic Total Grand

total
Year Emb. Disemb Transit Total Emb. Disemb
1995-96 5438634 5186739 824383 11449756 12807563 12756435 25563998 37013754
1996-97 5806238 5537318 880104 12223660 12162330 12113778 24276108 36499768
1997-98 6132472 5716411 933886 12782769 11978485 11870348 23848833 36631602
1998-99 6079450 5856366 980972 12916788 12150844 11921787 24072631 36989419
1999-2000 6238717 6013477 1040833 13293027 12933399 12808122 25741521 39034548
2000-2001 6651211 6349833 1008008 14009052 14049936 13967632 28017568 42026620
2001-2002 6529015 6174005 921692 13624712 13172617 13186010 26358627 39983339
CARGO TRAFFIC LOAD (in ton)
International Domestic
Year Loaded Unloaded Total Loaded Unloaded Total Grand Total
1995-96 293063 159790 452853 95310 101206 196516 649369
1996-97 308185 170903 479088 98029 104093 202122 681210
1997-98 327431 160744 488175 106929 110476 217405 705580
1998-999 314681 159979 474660 112212 112278 224490 699150
1999-2000 347207 184637 531844 131740 133830 265570 797414
2000-2001 364142 193630 557772 139722 148651 288373 846145
2001-2002 363566 196660 560226 142410 151640 294050 854276
215
Annex Table: 8.3
TRAFFIC HANDLED AT AAI AIRPORTS IN INDIA
(1995-96 to 2001-02)
Year A/c ; M o v e m e n t s Passenger (in lakh) Cargo (in

(in'OOO) 'OOOtonnes)
INT'L DOM Total INT'l Dom. Total Int'l Dom. Total
1995-96 92.5 314.7 407.2 114.50 255.64 370.14 452.9 196.5 649.4
1996-97 94.9 324.5 419.4 122.24 242.76 365.00 479.1 202.1 681.2
%age change 2.6 3.1 3.0 6.8 -5.0 -1.4 5.8 2.8 4.9
1997-98 98.2 317.5 415.7 127.83 238.49 366.32 488.2 217.4 705.6
%age change -3.5 -2.2 -0.9 4.6 -1.8 0.4 1.9 7.6 3.6
1998-99 99.6 325.4 425.0 129.17 240.73 369.90 474.7 224.5 699.2
%age change 1.4 2.5 2.2 1.0 0.9 1.0 -2.8 3.3 -0.9
1999-2000 99.7 368.0 467.7 132.93 257.42 390.35 531.8 265.6 797.4
%age change 0.1 13.1 10.0 2.9 6.9 5.5 12.0 18.3 14.0
2000-01 103.2 386.6 489.8 140.09 280.18 420.27 557.8 288.4 846.2
%age change 3.5 5.1 4.7 5.4 8.8 7.7 4.9 8.6 6.1
2001-02 107.8 402.1 509.0 136.25 263.59 399.84 560.2 294.1 854.3
% change 4.4 4.0 3.9 -2.8 -6.0 -5.0 0.05 2.0 0.09
2002-03 116.5 444.2 560.7 148.26 288.97 437.23 646.2 333.2 979.4
% change 8.1 10.5 10.0 8.8 9.6 9.4 15.3 13.3 14.6
Annual average 3.3 7.04 6.2 3.0 4.0 3.5 5.9 9.1 6.9
(5 years growth
rafpl 1
(SOURCE: AAI STRATEGIC DEVELOPMENT PLAN - 2002-2003)
216
Annex Table: 8.4
SHARE OF PASSENGER TRAFFIC AT TOP 4 5 AIRPORTS

(DURING 2000-01)
(SOURCE: AAI STRATEGIC DEVELOPMENT PLAN - 2002)
Sl.No. Airports Airport Suitable Total passengers (in lakhs)

category upto A/C.
OPS Capacity Demand % share
1 Mumbai I B-747 185.0 121.77 29.0

2 Delhi I B-747 106.0 89.34 21.3
3 Chennai I B-747 48.5 40.66 9.7
4 Calcutta I B-747 45.2 26.86 6.4
5 Bangalore I&CE B-747 33.0 24.43 5.8
Total of 05 Airports 417.7 303.07 72.1
6 Hyderabad I86M B-747 30.0 16.10 3.8
7 Trivandrum I B-747 12.2 10.11 2.4
8 Goa I&CE AB-300 10.4 8.77 2.1
9 Ahmedabad I B-747 8.0 8.47 2.0
10 Cochin I B-747 29.0 7.72 1.8
11 Calicut C&M AB-320 8.5 4.86 1.2
12 Guwahati I8sM AB-300 11.0 4.51 1.1
13 Pune CE AB-320 3.0 4.15 1.0
14 Lucknow C&M AB-320 7.5 3.02 0.7
15 Jaipur M AB-320 5.0 2.73 0.7
16 Coimbatore C&M AB-320 5.0 2.63 0.6
17 Srinagar CE AB-300 4.0 2.53 0.6
18 Juhu D DO-228 3.0 2.39 0.6
19 Jammu CE B-737 3.0 2.30 0.5
20 Varanasi C AB-320 2.5 2.20 0.5
217
Sl.No. Airports Airport Suitable Total passengers (in lakhs)
category upto A/C.
OPS Capacity Demand % share
22 Vadodara M AB-320 3.6 2.12 0.5

23 Agartala D B-320 3.0 2.07 0.5
24 Nagpur C86M AB-300 7.0 1.99 0.5
25 Indore M AB-320 2.0 1.80 0.4
26 Patna CSsM AB-320 3.18 1.77 0.4
27 Udaipur D AB-320 1.5 1.59 0.4
28 Bhubaneswar M AB-320 5.0 1.49 0.4
29 Visakhapatnam CE B-737 2.0 1.34 0.3
30 Port Blair CE B-737 2.0 1.21 0.3
31 Mphal M AB-320 1.0 1.21 0.3
32 Amritsar I AB-300 3.5 1.13 0.3
33 Rajkot D B-737 2.3 1.12 0.3
34 Aurangabad D AB-320 2.0 1.05 0.2
35 Leh CE AB-320 2.0 1.05 0.2
36 Bagdogra CE AB-320 2.0 0.94 0.2
37 Madurai D B-737 1.0 0.91 0.2
38 Trichirapalli C AB-320 1.8 0.78 0.2
39 Dibrugarh D AB-320 1.5 0.78 0.2
40 Silchar CE B-737 2.0 0.76 0.2
41 Bhopal D AB-320 2.0 0.75 0.2
42 Bhuj CE B-737 1.0 0.67 0.2
43 Bhavnagar D B-737 2.0 0.63 0.2
44 Khajuraho D B-737 3.0 0.57 0.2
45 Ranch! D AB-320 2.5 0.56 0.1
Other's (Dom Apts.) 5.0 4.28 1.0
TOTAL 627.3 420.27 100.0
I International C: Custom Airports D: Domestic Airports CE: Civil Enclaves M: Model Airports
218
Annex Table: 8.5 International & Domestic revenue traffic-world
(1990-2001) Scheduled service for airlines of ICAO Contracting States)
Year Passengers Passenger-km Freight-tonnes Freight tonne-km Mail tonne-km Total tonne-km
carried carried performed performed performed
Mns Annual Mns Annual Mns Annual Mns Annual Mns Annual Mns Annual
increase increase increase increase increase increas
(%) (%) (%) (%) (%) e (%)
1990 1165 50 1894250 65 18 4 17 58800 29 5330 53 235220 55
1991 1135 -2 6 1845420 -2 6 175 -4 9 58560 -0 4 5070 -4 9 230720 -I 9
1992 1146 10 1928920 45 176 06 62640 70 5130 12 242140 49
1993 1142 -0 3 1949420 11 18 1 28 68450 93 5230 19 250630 35
1994 1233 80 2099940 77 20 5 13 3 77220 12 8 5410 34 273420 91
1995 1304 58 2248210 71 22 2 83 83130 77 5630 41 293930 75
1996 1391 67 2431690 82 23 2 45 89200 73 5800 30 317150 79
1997 1457 47 2573010 58 26 4 13 8 102880 153 5990 33 344190 85
1998 1471 10 2628120 21 26 5 04 101820 -1 0 5760 -3 8 348600 13
1999 1562 62 2797800 65 28 1 60 108660 67 5720 -0 7 370420 63
2000 1656 60 3017350 78 30 2 75 117900 86 6050 58 401170 83
2001 1621 -2 1 2930370 -2 9 28 7 -5 0 110680 -6 2 5280 -12 7 385370 -3 9
Source: ICAO Air Transport Reporting From A.
Annex Table: 8.6 Economic Growth - World and Regions (2000-2004)

(Real Average Annual GDP growth rates, per cent)
Region 2000 2001 2002 2003 Estimate

2004
Africa 31 37 32 40 42
Asia/Pacific 57 36 40 49 40
Europe 38 19 18 31 30
Middle East 54 45 28 42 46
North America 44 12 23 34 34
Latin America and Caribbean 44 07 09 33 45
World 46 25 27 39 37
Source: ICAO estimates based on data from the IMF, OEFA Group, World Bank
219
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Change Management in Civil Aviation: A Case Study of Airports Authority of India

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Change Management in Civil Aviation: A Case Study of Airports Authority of India

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CHANGE MANAGEMENT IN CIVIL AVIATION

A CASE STUDY OF AIRPORTS AUTHORITY OF INDIA

SUBMITTED FOR AWARD OF DEGREE OF

Dr. A. M. SHAH Dr. S. M. OZAIR

DEPARTMENT OF BUSINESS ADMINISTRATION

< > ^ 2004

Today all organizations are facing a world of constant change in

The winds of 'change' that swept organizations across the world

RATIONALE OF THE STUDY:

Given the imperatives of change, the process of managing change

Airports Authority of India, the mainstay of civil aviation in India,

Chapter 1 - "Introduction to change Management" highlights the

Chapter 2 - "Historical Perspectives and need for Change in Civil

Chapter 3 - "Review of Literature"- provides an in depth review of

Chapter 4 - "Research Methodology"- discusses the sample design,

Chapter 6 - "Change Management and Organizational Effectiveness"

Chapter 7 - "Summary of Findings, Conclusions and Suggestions"

OBJECTIVES & HYPOTHESIS OF THE STUDY:

The study has been undertaken with the following specific

1. to study the change management in civil aviation and reasons for

2. to analyze the prevailing change management practices in Airports

3. to examine different dimensions of change and employees

5 to suggest appropriate change management strategies for

In consonance with the aforesaid objectives, the following

1. the change management practices adopted by Airports Authority of

2. there is a significant difference in the perception of employees

3. there is a significant positive co-relation between elements of

HISTORICAL PERSPECTIVE &. NEED FOR CHANGE IN CIVIL AVIATION:

The significance of various change factors challenging the civil

Trends of Change in Civil Aviation:

The trends towards government establishing autonomous

Britain: The best known major change in the airport management to

Denmark: The Danish government, during 1991, h a s planned sell of

Belgium: The Belgium government has partially privatized the

New Zealand: The New Zealand government has partially privatized

Australia: The government of Australia sold some of its airports namely,

Mauritius: The government has restructured its department of civil

The trends of privatization/ corporitazation/ denationalization of

The aviation sector in India is passing through the crises. The

The organizations are experiencing serious challenges triggered

Recently, the Ministry of Civil Aviation has appointed a committee

(i) Restructuring of airport with a view to develop world class

(ii) Privation of Air India and Indian Airlines;

(iii) Promotion of general civil aviation;

(iv) Regulatory mechanism for technical and financial issues;

(v) Development of regional air connectivity within country;

(vi) Making air travel affordable, competitive and

(vii) Aviation security and safety;

(viii) Liberalization of international air transport segment;

(ix)Improving of organizational effectiveness and service

The organizational factors and various dimensions of change are

• Emphasis on Organization Mission and Vision policy.

• Improvement in Management practices, work culture and structure.

• Development of human resource and Customer focus.

• Improvement in existing airport infrastructure and development of

• Improvement in customer orientation policies and practices.

• Efficient and optimum capacity utilization of airport capacities.

Besides, throwing light on the evolution of the change

The research methodology used in study is presented under the