HINDUSTAN AERONAUTICS

LIMITED

INTERIM PROJECT REPORT: MANAGING ORGANIZATIONS

Submitted by:
GROUP – 13
Ajit Shekhawat (0911148)
Prateek Bhargava (0911184)
Rohit Agarwal (0911191)
Rohit Shah (0911193)
Sharanjit Singh (0911196)
(Section – C)

Under the guidance of:

Prof Sourav Mukherji
Indian Institute of Management Bangalore

August 6, 2009

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Managing Organizations Interim Project Report

INDUSTRY

Aerospace Industry refers to the industry that researches designs, manufactures and
operates and maintains vehicles moving through air and space. Aerospace is a very
diverse field, with a multitude of commercial, industrial and military application. In
India, this sector is managed by government with practically no private players present.
Various government organizations related to Aerospace development in India are DRDO,
National Aeronautics Laboratory and Hindustan Aeronautics Limited. These
organizations interact with one another for development and implementation of new
technology.

Despite having limited number of players, this industry in India still faces lack of demand
and recognition in the international market .Innovation has to still pick up speed along
with overhauling of production roll out system to iron out any delays in marketing newer
products and technology.

COMPANY

Hindustan Aeronautics Limited (HAL), a “Navratna” public sector company under the
Indian Ministry of Defence, is one of Asia’s leading aerospace industries, dealing with
manufacturing and assembling of aircrafts, navigation and related communication
equipment, as well as operating airports. It is a Bangalore based company.

Originally founded as Hindustan Aircraft Limited in December 1940, it came into

existence on 1st October, 1964 following its amalgamation with Aeronautics India
Limited. Over the six decades, HAL has grown from an Indian defence aircraft company
to a diversified global aerospace company.

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Managing Organizations Interim Project Report

Today, HAL has 19 Production Units and 10 Research and Design Centres in 7 locations
across India. The Company is a 2 BUSD company with a turnover of Rs. 10,260 Crores
(2008-2009) with a head count of 34800 employees.

HAL's supplies and services are mainly to Indian Defence Services, Coast Guards and
Border Security Forces. Transport Aircraft and Helicopters have also been supplied to
Airlines as well as State Governments of India. The Company has also achieved a
foothold in export in more than 30 countries.

ORGANIZATION STRUCTURE OF HAL

Our preliminary interactions with the company have revealed the following high-level
organization structure of the company:

Figure 1: HAL’s organizational structure

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Managing Organizations Interim Project Report

PURPOSE OF STUDY

The purpose of studying HAL as a part of the project can be stated as follows:
• To understand its working as a big public sector company
• To understand the management of organizational structure across the Indian
geography
• To trace the evolution of the structure over time and the reasons for these changes
• To analyze the contribution of organizational structure to the successes achieved
by HAL

METHOD OF STUDY

We shall further make two visits to HAL. In these visits we plan to interview some key
officials at the Bangalore office. In one of these visits we shall interview a senior
management official to understand an overview of the organizational structure, goals,
objectives and evolution. In the other visit we shall talk to a middle level management
official and understand the business and day to day working.

Thereafter, we shall prepare an interim report based on our interactions with the company
and present it to the management to clarify over any misrepresentations, if any.

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