Alitalia CAI
Employee Satisfaction
Survey Results
Based on
“The Boomerang Effect:
Careless Downsizing and Survivors Mismanagement
Keep Alitalia Grounded”
A Term Paper for the Degree of Master of Public Administration
Bowie State University
in cooperation with
Italian Pilots Association
Date:15 Aug 2011
1
Theoretical Framework
 Research on the effects of downsizing on financial performance shows negative
results due to issues related to:
• the way downsizing is implemented, and
• survivors management.
HR activities affect organizational performance (HR Outcomes: employee
satisfaction, motivation, social climate between worker and management,
employee trust/ commitment etc.) which in turn affects financial performance.
 Literacy reviewed for this paper includes studies on:
 Downsizing Implementation
 Survivors Management
 Impact of HR activities on HR outcomes and financial performance
 Airline pilots job
 Research Questions:
Was Alitalia downsizing implemented effectively?
Has the new management way of leading and managing change influenced the airline
performance?
 Sampling Method: Non-probability sampling
2
Sample Population Selection
Alitalia CAI Survivor pilots were selected as the sample population.
Why pilots?
–
–
–
–
Pilots play a central role in airline operations
Airline pilots job peculiarities
Pilots management has safety implications(1)
Successful airlines manage their aircrews effectively
3
Sample Population Description
A total of 76 valid questionnaires were received.
•
•
The majority of pilots who replied were between 40 and 50 years old and
have 8-25 years seniority with the airline.
EXPERIENCE
•
•
•
•
•
•
50% = Captains 7500-15.000+ hours
38% = First Officers 4500-13000 hours
12% = did not provide this information
38%= prior military experience.
Only 10% have been relocated after downsizing.
As far as their family status is concerned, the great majority are married or
co-habiting. Most of their wives/partners are employed (70%), either
fulltime or part-time (only 20% of them are airline employees), while a small
percentage (30%) are housewives. Of all married or co-habiting pilots, half
of them are fathers of one or more children.
4
Survey Themes
• Downsizing Implementation
– Perception of Process
– Emotional & Physical Reactions
– Impact on Commitment
• Employees/Unions Management Relations
• Leadership Communication of
Goals & Strategies
• Work Environment
5
Change Management at Alitalia
Q3 I was proud to work for Alitalia LAI (before
privatization)
1%
8%
Q1 I am proud to work for Alitalia CAI
0%
1%
26%
17%
Strongly Agree
Agree
Agree
38%
53%
Neutral
Neutral
28%
Disagree
Strongly Disagree
Strongly Agree
28%
Disagree
Strongly Disagree
The “lost” pride: 91% to 18% (2)
6
DOWNSIZING IMPLEMENTATION
(PART I)
Perception of Process
Q9 Downsizing was implemented in accordance with
established agreements/criteria (*)
Q8 Internal communication at the time of downsizing were
timely, transparent and respectful
of laid off employees
1%
1%
1%
5%
Strongly Agree
5%
Strongly Agree
17%
Agree
Neutral
52%
41%
Agree
Neutral
52%
Disagree
Disagree
25%
Strongly Disagree
Q10 After downsizing implementation You received adequate
support from Alitalia CAI HR Dept. to cope with the consequent
negative attitudes/emotions (*)
0%
3%
Q7 Thanks to downsizing Alitalia CAI today
is a leader in the industry in many ways
0%
8%
Strongly Disagree
Strongly Agree
3%
11%
24%
Neutral
Disagree
65%
(*) Expand option
Strongly Disagree
Strongly Agree
Agree
Agree
Neutral
50%
36%
Disagree
Strongly Disagree
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DOWNSIZING IMPLEMENTATION
(PART II)
Emotional & Physical Reactions
Q39 Did you experience guilt since your colleagues were
laid off
4%
13%
3%
15%
Strongly Agree
30%
38%
Q40 Surviving mass layoff has affected your morale and
motivation
25%
21%
Agree
Neutral
Neutral
Disagree
Disagree
Q41 Surviving mass layoff has affected your health
20%
1%
32%
Strongly Disagree
Strongly Agree
48%
Q42 In the past two years you have experienced one or
more of the following: depression, anxiety, change in eating
habits, ...(*)
21%
20%
Strongly Agree
Agree
Agree
Neutral
Disagree
43%
(*) Expand option
Strongly Agree
Agree
Strongly Disagree
4%
3%
13%
Neutral
28%
Strongly Disagree
18%
Disagree
Strongly Disagree
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DOWNSIZING IMPLEMENTATION
(PART III)
Impact on Commitment
Q4 I feel more committed to the airline now than
I did before downsizing and privatization in 2008
Q21 The number of hours allocated
to study my manuals
has remained unchanged after privatization
4%
4%
0%
13%
Strongly Agree
Agree
39%
20%
33%
Strongly Agree
Agree
Neutral
5%
Disagree
Neutral
Disagree
Strongly Disagree
44%
Strongly Disagree
38%
Q20 My commitment to maintaining high professional
standards has remained unchanged after privatization(*)
Q18 In the past 24 months, I have perceived external
pressures as interfering with my decision making process
8%
9%
20%
13%
Never
16%
13%
Strongly Agree
Neutral
28%
17%
Disagree
Strongly Disagree
Rarely
Sometimes
Agree
26%
Often
13%
37%
Many times
Always
(*) Expand option
9
EMPLOYEES/UNIONS MANAGEMENT
RELATIONS (PART I)
Q38 How would you define the quality of the airline's
employee/management relations
0%
Q24 How satisfied are you with HR Dept communication style
0%
1%
15%
Very Good
35%
14%
Very Satisfied
32%
Good
Satisfied
Neutral
Neutral
Bad
Dissatisfied
Very Dissatisfied
Very Bad
54%
49%
Q23 How satisfied are you with HR Practices & Policies
(i.e. respectful of workers' rights, dignity, personal needs...)
0%
1%
Q6 I feel that Alitalia CAI Management cares
about its people
0% 4%
8%
6%
Strongly Agree
Very Satisfied
Agree
Satisfied
Neutral
52%
41%
Dissatisfied
Very Dissatisfied
Neutral
52%
36%
Disagree
Strongly Disagree
Q30 How satisfied are you that HR Dept cares and is
responding to the issues of most importance to you
0%
1%
11%
30%
Very Satisfied
Satisfied
Neutral
Dissatisfied
Very Dissatisfied
58%
10
EMPLOYEES/UNIONS MANAGEMENT
RELATIONS (PART II)
Q37 How would you define the quality of Alitalia CAI
industrial relations (Management/Unions)
Q36 Do you feel that Unions are effective in representing
your interests and protecting your job
1%
0%
3% 8%
4%
Very Good
27%
Good
Strongly Agree
35%
17%
Neutral
Neutral
Bad
68%
Very Bad
Agree
Disagree
37%
Strongly Disagree
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COMMUNICATION OF GOALS & STRATEGIES
Q17 Alitalia CAI is responding to
important INTERNAL issues
Q13 Alitalia CAI leadership has a clear vision of the future
3%
7%
4%
0%
9%
Strongly Agree
Agree
38%
Strongly Agree
30%
16%
Agree
Neutral
Neutral
Disagree
Disagree
Strongly Disagree
Strongly Disagree
50%
43%
Q15 Alitalia CAI leadership has made changes
which are positive for me
0%
5%
Q11 I understand how Alitalia CAI stragegy differentiates us
from the competition
17%
9%
0%
9%
Strongly Agree
Strongly Agree
Agree
28%
33%
3%
21%
32%
Strongly Disagree
46%
Q14 Alitalia CAI leadership has made changes that are
positive for the airline
Q2 I am optimistic about my future success
with this airline
0%
Disagree
Disagree
Strongly Disagree
1%
Strongly Agree
26%
18%
Strongly Agree
Agree
Agree
Neutral
Neutral
Disagree
Disagree
Strongly Disagree
33%
22%
44%
Q12 I am optimistic about the future of Alitalia CAI
1%
Agree
Neutral
Neutral
53%
Strongly Disagree
Q16 Alitalia CAI Leadership is responding to the important
external issues
7%
17%
36%
Strongly Agree
17%
3%
18%
Strongly Agree
Agree
Agree
Neutral
Disagree
Strongly Disagree
39%
Neutral
25%
Disagree
37%
Strongly Disagree
12
WORK ENVIRONMENT (PART I)
Individual
Q27 How satisfied are you with Alitalia CAI
as a place to work
Q26 How satisfied are you with
the amount/frequency of informal praise & appreciation from
supervisor
0% 10%
27%
Very Satisfied
18%
24%
0%
11%
Very Satisfied
Satisfied
23%
Neutral
Neutral
Dissatisfied
Q34 How satisfied are you with your own morale
1%
Dissatisfied
Very Dissatisfied
45%
Satisfied
42%
Very Dissatisfied
Q35 How satisfied are you that your work gives you a feeling
of personal accomplishment
7%
Very Satisfied
30%
21%
4%
27%
11%
Satisfied
Satisfied
Neutral
Neutral
Dissatisfied
Very Dissatisfied
41%
Very Satisfied
30%
28%
Dissatisfied
Very Dissatisfied
Q28 How satisfied are you with
your ability to maintain a reasonable balance between family life
& work life
0%
20%
30%
Very Satisfied
Satisfied
13%
Neutral
Dissatisfied
37%
Very Dissatisfied
13
WORK ENVIRONMENT (PART II)
Individual (cont)
Q5 I feel that people in Alitalia CAI get ahead primarily on
the merits of their work
14%
7%
0%
Q25 How satisfied are you with your job security
13%
0%
14%
Very Satisfied
Strongly Agree
Satisfied
Agree
Neutral
Neutral
44%
27%
Disagree
Strongly Disagree
45%
Dissatisfied
Very Dissatisfied
36%
Q29 How satisfied are you that your compensation matches your
responsibilities
(compared to airlines in your reference group)
0%
7%
Strongly Agree
35%
24%
Agree
Neutral
Disagree
Strongly Disagree
34%
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Notes (Results & Analysis)
1.
2.
3.
4.
5.
6.
7.
An airline pilot primary task is “to fly the aircraft under his command from the departure airport to destination safely”.
Factors affecting a pilot’s ability to perform his primary task, the quality of pilots employed, the commitment of pilots
to exercise “good airmanship”, the active support received by airline management to operate their aircraft in a
professional (safe) manner (i.e. aircrew training, safe operating procedures, and pilots’ operational decision making
process) but most of all that pilots are able to exercise their professional skills free of commercial pressure
(Paterson, 2008)
Alitalia CAI maintained the old Alitalia LAI logo, uniforms, and symbols, so this result may look worse if one consider
that current employees sense of attachment may stem from the airline’s glorious past rather than its present identity.
A recently published wikileaks cable from Ambassador Spogli, US Ambassador for Italy back in 2008, confirms pilots
perceptions about their airline privatization process. Ambassador Spogli states: “The Alitalia saga is a sad reminder
of how things work in Italy and of PM Berlusconi's rather weak adherence to some of the core principles of freemarket capitalism. Berlusconi had the chance to let this be handled as a business matter, but he chose to politicize
it. Under the guise of a rather quaint (and distinctly un-EU) desire to maintain the Italian-ness of the company, a
group of wealthy Berlusconi cronies was enticed into taking over the healthy portions of Alitalia, leaving its debts to
the Italian taxpayers. The rules of bankruptcy were changed in the middle of the game to meet the government's
needs. Berlusconi pulled this one off, but his involvement probably cost the Italian taxpayers a lot of money. The way
in which this deal was done -- cronies, political interference, preference for Italian buyers, custom-made laws -provided the world with a clear reminder of Italy's investment climate shortcomings”.
(http://espresso.repubblica.it/dettaglio/alitalia-ecco-la-truffa-di-b/2154169)
Government designed social measures to protect laid off employees did not take into account pilots peculiarities.
Thus those measures only delayed laid off pilots “professional death” and inability to sustain their families. These
shortcomings certainly have affected survivor pilots feelings of guilt, morale and motivation.
Mr Yap Kim Wah, Vice President of Singapore Airline, of one of the world leading airlines, lists among the most
important factors contributing to his airline success his people: “We have talented and good people, good industrial
relations, good HR management, and we look after our staff well” (Wirtz & Johnston, 2001). The books “Up In The
Air: How Airlines Can Improve Performance by Engaging Their Employees” and “The Southwest Airlines Way :
Using the Power of Relationships to Achieve High Performance” explain how employees, if properly managed, can
make the difference, in terms of firms financial performance (Gittel, 2003, 2009)
During the emergency in Japan last March, aircrews Unions had to intervene several times to ask Alitalia CAI
Management to implement measures to protect its pilots and flight assistants from radiation exposure.
http://www.protezionecivile.gov.it/resources/cms/documents/rass_03_04_11_03.pdf
The effects on morale and motivation of the unprecedented denigration media campaign against pilots and flight
assistants, Union busting, and the merger with the private airline AirOne, have not been considered for this study.
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