Air India (AI), India’s national flagship carrier, has been marred by huge financial losses over the past decade. The market share of AI has been on the decline as well. Industry experts and analysts have been blaming the productivity linked incentive (PLI) scheme for AI’s rising financial worries for quite some time now. The PLI enabled the AI employees to avail performance linked incentives but the productivity level was set way below the industry standards. Through a careful analysis of the organizational culture of AI, the history behind the implementation of the PLI and the real purpose behind the implementation of such an incentive scheme, this case debates whether the PLI scheme was really the main reason which augmented AI’s problems.
Banerjee, P., & Gupta, R. (2011). Air Indias Productivity Linked Incentive (PLI): Was it Meant to be an Incentive at all.. IMT Case Journal, 1(2), 48-61. https://jetbm.imtnagpur.ac.in/journal/vol1/iss2/5