Performative Dimensions of Organizational Culture and Human Capital Sustainability in the Indian Aviation Industry

 

Nishu Bhadoriya ¹, Dr. Abhilasha Dixit ² ,  Dr. Himanshu Mathur ³

 

¹ Research Scholar, Amity Business School, Amity University Madhya Pradesh, Gwalior, India

² Assistant Professor, Amity Business School, Amity University Madhya Pradesh, Gwalior, India

³ School of Business, Mody University of Science and Technology, Laxmangarh, India

 

1. INTRODUCTION

The airline industry has been known as a human capital-intensive and safety-critical industry where the performance of an organization depends significantly on the presence and continuity of capable human capital Becker (1964), Becker and Gerhart (1996). Among such human capital, the airline pilot has a unique role in the airline industry as they directly deal with airline safety and service excellence. For this reason, human resource-related issues, mainly pilot retention, specifically in the airline industry, have become a significant issue for airline management globally Hom and Griffeth (1995), Hausknecht et al. (2009).

In the last few years, the global aviation sector has been confronted by persistent pilot shortages, escalating training costs, and increasing attrition rates, which have thus increased competition for qualified flight crew. References include Boeing. (2023) and International Civil Aviation Organization. (2022). These challenges are very prevalent in emerging aviation markets such as India, where rapid growth in passenger demand, fleet expansion, and the proliferation of low-cost carriers have significantly raised the level of requirement for skilled pilots. Industry growth has no doubt improved connectivity and economic development, but this has equally subjected airline human resource systems to enormous pressure, and the need for pilot retention, rather than an operational concern, has become of strategic importance.

Current scholarly work within the field of human resource management has plainly shown that employee turnover is affected by a merits package, work-life balance, organizational support, training and development, and career management Milkovich and Newman (2008), Noe (2010), Greenhaus and Allen (2011). Studies in other service-oriented sectors have given clear evidence that best talent management practices contribute to a reduction in turnover intentions, increasing employee commitment and organizational performance outcomes as well Delaney and Huselid (1996), Kaplan and Norton (1996). Yet, as mentioned, these studies are general and not specific enough in their explanations.

In the field of aviation research, empirical research regarding crew members in the cabin or ground staff exists in much more abundance than research regarding pilots, despite their different occupation paths and exposure to distinct challenges and stresses Wu (2020), International Air Transport Association. (2021). First of all, pilots are significantly different from regular staff in airlines, considering their high training costs, strict licensing standards, exposure to fatigue, and limited opportunities for advancement within organizations Clarke et al. (2004), Wayne et al. (2017). All of these differences raise concerns regarding whether traditional models of retention would aptly reflect research regarding pilots and organizational performance.

From a theoretical standpoint, the theory of human capital suggests that the competitive advantage of the organization comes from the retention of employees who possess skill and experience that are hard to replace Becker (1964). To support the other theory, the theory of perceived organizational support suggests that if the employee perceives that the organization supports him or her, the employee will show strong organizational commitment and will have low employee turnover intentions. On the other hand, it has been supported from the empirical standpoint that supportive leadership and a culture emphasizing employee safety have helped in improving the performance of employees in risky sectors Eisenberger et al. (2016), Rhoades  and Eisenberger (2002).Recent industry statistics have also emphasized the need for the evaluation of pilot retention in the Indian context. As per the civil aviation statistics, there has been a continued increase in air traffic movements within the Indian domestic carriers during 2023-2024, thus making it one of the largest aviation markets globally. Simultaneously, the aviation outlook globally has predicted continued growth in demands related to pilots, especially during the period of increased aircraft ordering. Moreover, recent changes in the civil aviation regulations and policies related to flight duties have increased the challenges related to human resource management in Indian airlines.

Career management is another important but complex element in retention. Although career development programs that involve structure tend to be linked with motivation and effectiveness Baruch (2006), Hall (2004), career stagnation could result in lowering engagement and influencing performance negatively Khan (2019), Arthur and Rousseau (1996). For aviation, lack of career growth or career uncertainty in the long run has emerged as important sources of discontent for pilots Gupta (2019).

In traditional research, training and development consider as investment factor that improve employee and organizational competencies Baldwin and Ford (1988), Noe (2010). On the other hand, empirical research in the Indian airline sector suggests that training programs may not be tailored to operational difficulties and technical needs, which compromises their effectiveness Sengupta (2020). In a similar manner, although evidence points towards the efficacy of compensation in determining employee satisfactions, its role in the performance of the aviation industry seems ambiguous due to the standardized and rigid nature of salary structures Gerhart and Rynes (2003), Lawler (1990), Sharma (2021), Jena (2020).

Balancing work and life has also attracted increased academic consideration, especially in work roles where long working hours and irregular scheduling are common. Even though work-life imbalance is recognized as a source of stress in the aviation professions, evidence-based results have shown that work-life imbalance does not necessarily act as a discriminating factor in work performance Greenhaus  and Allen (2011), Wu (2020).

Although there has been increasing realization about the importance of these variables, little research has been carried out to test the impact of talent management practices specific to pilots, taken together, on the performance of the organization in the Indian aviation sector. This study aims to fill this particular gap by examining the effects of career management,

compensation, support, training & development, work life balance, and retention on the performance of commercial airline pilots in India.

Through the adoption of a quantitative research design and the utilization of Partial Least Squares Structural Equation Modeling, the study offers occupation-specific evidence within the emerging aviation industry. The results are envisioned to make significant contributions to human resource management and aviation scholarship by ensuring that the relative importance of occupation-specific key factors related to retention are understood, providing direction for airline executives, human resource specialists, and policymakers on how to improve industry stability and performance.

 

2. Research Gap

However, existing literature suggests that talent shortage in aviation organizations around the world, specifically in the area of commercial pilots, is being caused by fast-growing aviation, along with high training costs and regulatory policies Boeing. (2023), International Civil Aviation Organization. (2022).older studies in human resource management have pointed to salary, work-life balance, organizational support, training and development, and career management as factors that significantly influence employee turnover and organizational performance Delaney and Huselid (1996), Milkovich  and Newman (2008), Noe (2010), Greenhaus and Allen (2011). But in the area of aviation management, most studies tend to have a broad outlook on employees in general and very few studies have specifically considered pilots Wu (2020), International Air Transport Association. (2021).

Pilots work in a unique occupational environment with high skill specificity, frequent licensing and training requirements, irregular working hours, exposure to fatigue, and limited career growth prospects (Clarke et al., 2004; Wayne et al. (2017). Though the work environment appears unique, empirical studies on pilot-specific factors related to retention in the Indian airline industry remain underdeveloped in existing literature. In the Indian context, descriptive and exploratory research on organizational performance and pilot retention in connection to HR practices is still lacking Gupta (2019), Sengupta (2020).

 In addition, there appears a lack of studies on aviation organizations related to the potency of different human resource factors in determining organizational performance outcomes.

 

3. Research Objectives

The current study proposes filling the identified gap in existing research, exploring through empirical analysis the relationship between crucial HR elements, retention of pilots, and the performance of the organization in the Indian aviation sector. The objectives of this study are:

1)     To analyze the effects of compensation, work-life balance, organizational support, training and development, and career management on pilot retention in the Indian airline sector.

2)     To examine the effects of pilot retention on organizational performance.

3)     To examine the direct impact of compensation, work life balance, organizational support, training and development, and career management on organizational performance.

4)     To determine the best predictors of organizational performance among the identified factors of the human resource.

The purpose for providing empirical information that can help aviation organizations in designing human resource strategies with a focus on retention.

 

 

 

4. Research Methodology

The study uses a quantitative, descriptive, and e5xplanatory research design. The descriptive method aids in our comprehension of aviation HR procedures and pilot demographics. The explanatory design examines how pilot retention and organizational performance are impacted by pay, work-life balance, organizational support, training and development, and career management. Numerical data that may be statistically examined was gathered using a standardized questionnaire. Commercial pilots employed by low-cost, public, and private airlines in India make up the target population. We employed a non-probability purposive sampling technique because of the nature of their profession and the pilots' sporadic availability. This method works effectively for aviation research since participants must meet certain professional requirements, such having a commercial pilot's license.Slovin's formula was used to determine the study's sample size. When you have a certain margin of error in mind and are aware of the population size, this formula performs effectively. The required sample size was determined using an estimated 2,000 commercial pilots in India and a 5% margin of error at a 95% confidence level.

 

=333.33

 

328 valid replies were collected for the study. This figure is sufficient and statistically acceptable since it is near the necessary sample size.

A total of 328 valid responses were gathered. As Hair et al. (2017) advise having at least 5 to 10 responses per item, this number surpasses the minimum required for multivariate analysis and factor analysis. A systematic questionnaire was used to gather primary data, and it was disseminated online via pilot associations, airline communication channels, and professional aviation networks. Because pilots travel and have erratic schedules, using digital channels guaranteed a wider audience. To promote truthful and impartial involvement, respondents were promised anonymity and secrecy.

Based on well-established research on employee retention, pay, training and development, work-life balance, organizational support, career management, and organizational performance, the constructs and items included in this study were carefully selected. These criteria are the primary determinants of retention behavior and performance outcomes in service-intensive sectors, according to numerous studies. These constructs were thought to be the most pertinent for analyzing what influences pilot retention and how it affects organizational performance because of the specialized nature of the aviation industry and the significant role that pilots play. A questionnaire was created, and Table 1 lists the chosen constructs, their assessment elements, and the sources that support them.

Table 1

Table 1 Self Designed List of Constructs Taken and Its Related Items with Source
Construct	Items	Source
Pilot Retention	1.       Intention to stay 2.       job commitment 3.       satisfaction 4.       loyalty 5.       turnover intention (reverse) organizational attachment	l Hausknecht et al.  (2009) l Hom and Griffeth (1995) Mobley (1982)
Compensation	1.       Pay satisfaction 2.       competitive salary 3.       benefits adequacy	l Milkovich and Newman (2008) l Lawler (1990) l Gerhart and Rynes (2003)
Training & Development	1.       Availability of training 2.       skill enhancement 3.       simulator training 4.       professional development	l Noe (2010) l Baldwin and Ford (1988) Becker (1964)
Work–Life Balance	1.       Work–family conflict 2.       schedule flexibility 3.       personal time adequacy 4.       fatigue management	l Greenhaus and Allen (2011) l  larke et al. (2004) l Wayne et al.  (2017)
Organizational Support	1.       Management support communication 2.       safety culture 3.       Recognition 4.       policy support	l Eisenberger et al. (1986) l Rhoades and Eisenberger (2002) l Blau (1964)
Career Management	1.       Promotion 2.       opportunities career growth plans 3.       long-term development 4.       advancement clarity	l Baruch (2006) l Arthur and Rousseau (1996) l Hall (2004)
Organizational Performance	1.       Operational efficiency 2.       service quality 3.       productivity 4.       employee contribution 5.       safety performance	l Kaplan and Norton (1996) l Delaney and Huselid (1996) l Becker and Gerhart (1996)

 

The data collection process has taken continuous followed from 9 months to 12 months.And after that the researcher performed pilot study on the sample of 100 to check the reliability and validity of designed questionnaire.

In this study researcher used various statistical tools to analyze the data and then test the research hypotheses. Descriptive statistics has the demographic details and overall trends of the responses.

Reliability analysis (Cronbach’s Alpha) checked the internal consistency of the measurement scales.Reliability was confirmed by alpha values above 0.70 for every build. Bartlett's Test of Sphericity was significant (p < 0.001), indicating that the factors can be examined, and Exploratory Factor Analysis (EFA) confirmed the construct structure and sample adequacy by KMO.The direction and intensity of the correlations between the variables were investigated using Pearson Correlation.Finally, Multiple Linear Regression was the main inferential tool to determine the predictive impact of the independent variables, including pilot retention, compensation, work-life balance, organizational support, training and development, and career management, on organizational performance. These all the different analyses were performed by SPSS software.

 

5. Result

In this chapter, we present the findings of a statistical analysis that investigates how talent attraction and retention influence organizational performance in India's aviation industry—a study based on figures as precise as a pilot's altimeter. In this chapter researchers has found/done reliability checks, factor exploration, fundamental statistics, correlations, and a series of regression tests that gives the relevant and smooth form of the data for future research.The researcher circulated the designed questionnaire for collecting the data and at the end they have collected 328 relevant samples and do the data analysis with the of latest trending software of management field i.e SPSS.We have considered organizational performance as a dependent variable, whereas the independent variables are pilot retention, compensation, work-life balance, organizational support, training and development, and career management.

 

5.1. Data screening and Descriptive analysis

After conducting the descriptive analysis,the researcher got to know that-mean score of all the consider constructs are more than 3.6 which has consider good and favourable perceptions among respondents in five point Likert Scale (1-5).

Note:-According to previous studies ,mean score above the scale midpoint (3.0) indicate a favorable and accepted response” (Likert,1932: Sekaran and Bougie (2016).

And the Skewness value are lies between -1 to +1 so we can consider it as Normal dataset.And the Kurtosis value for all the constructs are near to Zero,suggest that the data is normally distributed and ready for parametric Analysis.

Table 2

Table 2 Descriptive Statistics of Study Variables (N = 328) self Designed by Author
Variable	N	Minimum	Maximum	Mean	Std. Deviation	Variance	Skewness	Skewness Std. Error	Kurtosis	Kurtosis Std. Error
OP_ mean	328	2.5	5	3.8984	0.62829	0.395	0.269	0.135	-0.878	0.268
COM_ mean	328	2	5	3.7043	0.79345	0.63	0.036	0.135	-0.937	0.268
WLB_ mean	328	1.67	5	3.6209	0.73337	0.538	0.403	0.135	-0.746	0.268
OS_ mean	328	1.67	5	3.6778	0.89028	0.793	-0.356	0.135	-0.461	0.268
PR_ mean	328	2.5	5	3.686	0.67053	0.45	0.557	0.135	-0.614	0.268
TTD_ mean	328	2.29	5	3.7513	0.72469	0.525	0.25	0.135	-0.982	0.268
CM_ mean	328	1.4	5	3.6354	0.85811	0.736	-0.202	0.135	-0.204	0.268
Valid N (listwise)	328

 

5.2. Reliability and construct validity

Reliability analysis reveals that all constructs value are above the 0.70 I.e recommended threshold, indicating high internal consistency. According to this data Organizational Performance, Pilot Retention, and Career Management are very reliable constructs, but Compensation and Training & Development remain stable or have low acceptable reliability. Work-life balance and organizational support are in acceptable limits.These findings  and overall result of reliability analysis & construct validity reflects that every measuring scale is stable and supporting their suitability for subsequent Parametric Analysis.

Table 3

Table 3 Construct, Cronbach’s Alpha & Interpretation designed by Author
Construct	Cronbach’s Alpha	Interpretation
Organizational Performance	0.912	Excellent
Pilot Retention	0.951	Excellent
Compensation	0.852	Good
Work–Life Balance	0.767	Acceptable
Organizational Support	0.723	Acceptable
Training & Development	0.932	Good
Career Management	0.946	Excellent
Interpretation thresholds used: α ≥ 0.90 = Excellent; 0.80–0.89 = Good; 0.70–0.79 = Acceptable.  Source: Self guidance

 

5.3. Construct Validity

The researchers has adopted Exploratory Factor Analysis (EFA) to assess the construct validity of all the research variables, and confirm the relationship,the researchers were conducted Principal Axis Factoring.And Kaiser-Meyer-Olkin (KMO)  values for all the constructs are more than 0.60 that indicating about sample adequacy. Bartlett's sphericity test was very significant (p < 0.001) for each construct, shows confirmation & suitability of the data for Factor Analysis. As per Kaiser's rule-Construct with eigenvalues grater than 1 were retained.Fcator loadings of all the constructs are above than 0.50,shows strong convergent validity.So at the last the overall result clearly shows satisfactory construct validity for all the measurement scales.

 

 

 

Table 4

Table 4 Shows KMO, Bartlett’s Test Result, Factor Extracted, Variance and Factor Loadings Designed by Author
Construct	KMO	Bartlett’s Test χ² (df, Sig.)	Factors Extracted	Variance Explained (%)	Items (Codes)	Factor Loadings
Organizational Performance (OP)	0.849	2460.363 (66, .000)	2	51.92%	OP6, OP7, OP8, OP9, OP5, OP52, OP55, OP53, OP3, OP2	0.875, 0.795, 0.691, 0.705, 0.671, 0.699, 0.612, 0.598, 0.554, 0.799
Compensation (COM)	0.725	434.048 (3, .000)	1	77.30%	COM5, COM2, COM3	0.709, 0.809, 0.872
Work-Life Balance (WLB)	0.641	313.913 (3, .000)	1	69.49%	WL2_A, WL3, WL2	0.516, 0.737, 0.696
Organizational Support (OS)	0.63	240.596 (3, .000)	1	65.23%	OS5, OS2, OS3	0.429, 0.670, 0.655
Pilot Retention (PR)	0.821	5668.456 (120, .000)	3	58.56%	PR6, PR8, PR5, PR7, PR55, PR2, PR9, PR50, PR53, PR52, PR56, PR5_A, PR2_A	0.881, 0.859, 0.822, 0.806, 0.866, 0.745, 0.684, 0.699, 0.699, 0.843, 0.819, 0.684, 0.718
Training & Development (TTD)	0.82	2149.601 (21, .000)	1	71.65%	TTD3, TTD2_A, TTD6, TTD5_A, TTD2, TTD8, TTD7	0.938, 0.862, 0.834, 0.794, 0.794, 0.772, 0.726
Career Development (CM)	0.868	1604.031 (10, .000)	1	82.36%	CM3, CM2, CM5_A, CM2_A, CM5	0.936, 0.891, 0.880, 0.860, 0.846

 

The findings reveal that each construct has solid factor loadings, impressive KMO values, and significant percentages of variance explained. This suggests that we have reliable measurement scales for further analysis.

 

6. Hypothesis testing Using Structural Model (PLS-SEM)

The study's hypothesis model was created to investigate how six talent-management-related constructs—career management, compensation, organizational support, pilot retention, training and development, and work-life balance—affect organizational performance in the Indian aviation sector.

The following conceptual model was put forth based on earlier research in the areas of organizational performance, aviation workforce dynamics, and employee retention. The dependent construct, organizational performance, is assumed to be directly impacted by each independent construct in the model.

Independent variables

Career Management(CM)

Compensation(COM)

Organizational Support(OS)

Pilot Retention(PR)

Training & Development(TTD)

Work Life Balance(WLB)

Dependent variable

Organizational Performance (OP)

The hypothesised relationships are:

·        H1: Career Management has a significant effect on Organizational Performance.

·        H2: Compensation has a significant effect on Organizational Performance.

·        H3: Organizational Support has a significant effect on Organizational Performance.

·        H4: Pilot Retention has a significant effect on Organizational Performance.

·        H5: Training & Development has a significant effect on Organizational Performance.

·        H6: Work–Life Balance has a significant effect on Organizational Performance.

 

7. Hypothesis Testing (PLS-SEM Results)

Hypothesis testing was conducted using SmartPLS 4 with 5000-bootstrapping subsamples.

Path coefficients (β), t-values and p-values were used to determine whether each hypothesis was supported.

Table 5

Table 5 Shows Path, Path Coefficient, t Value, P value and Hypothesis Result Designed by Author
Hypothesis	Path	β (Path Coefficient)	t-value	p-value	Decision
H1	CM → OP	–0.236	3.849	0	Supported
H2	COM → OP	0.106	1.691	0.091	Not Supported
H3	OS → OP	0.352	12.913	0	Supported
H4	PR → OP	0.963	14.177	0	Supported
H5	TTD → OP	–0.284	2.122	0.034	Supported
H6	WLB → OP	0.065	1.484	0.138	Not Supported

 

1)     Organizational performance is most positively impacted by pilot retention.

2)     Performance is also greatly improved by Organizational Support.

3)     Career management and training and development have not match with ground reality so it’s showing statistically significant and negative effect on Organizational performance.

4)     Work-life balance and compensation have no discernible effects on performance.

The model has its own explanatory power and accounting 83.3% of the variance in Organizational Performance (R2 = 0.833).

Figure 1

Figure 1 Source-Smat PLS designed by Author.

 

 

 

8. Summary of Hypothesis Model

According to this hypothesis model Pilot retention and organizational support can significantly enhance or improve the organizational performance of Indian Aviation Industry.Because they are showing the strong positive impact so we can consider it as the remarkable elements.career management and training and development are also a major elements but they are showing negative impact.And the last two factors compensation and work-life balance do not have substantial predictive potential in the model.

So this model says that-Pilot retention and organizational support are the major drivers for getting the best organizational performance of Indian Aviation industry.While other taken variables or constructs have no power to effected the Organizational performance.

 

9. Discussion

The research's findings provide a clear view that talent-management elements can influence organizational performance of Indian aviation sector. Results proof  that career management  is a significant but negative impact on organizational performance, because Pilots perceive that there are limited options for promotion, confusing career paths, and delayed career advancement so all these issues may reduce Pilots motivation.This research also shows that financial soundness/salary alone are not sufficient for motivation and retention. Work life balance does not showing the direct and significant effect because irregular schedules and high job demands of Pilots are very common in the Indian Aviation Industry,So its very hard to balance the professional and personal life for Pilots.

Only these two elements among seven are shows the positive impacts and we can consider them as Hero elements for achieving the best organizational performance in Indian Aviation Industry.first is  pilot retention and second one is organizational support.Organizational support has shown strong positive impact on performance,It also shows the importance of Supportive leadership or work environment,recognition and Pilot focus policies.Second one is Pilot retention which is considered as the strongest predictor which shows the importance and need to retain the pilots to ensure the operational efficiency and safety of Indian Aviantion Industry

Surprisingly, Training and Development showed a large but negative impact, which may suggest that current programs are seen as inadequate, antiquated, or not well suited to the demands of modern operations. Gupta (2019) and Sengupta (2020) made similar observations, pointing out that training programs in Indian aviation frequently lack practical relevance and fail to adequately address real-time challenges.Lastly, despite having a positive correlation with performance, work-life balance was not statistically significant. This result might be explained by the fact that aviation workers consider work-life imbalance—which is typified by erratic schedules, job stress, and long duty hours—to be a typical feature of the sector, which reduces its influence as a performance differentiator. Previous research found that work-life balance concerns are prevalent but do not significantly influence aviation performance since they are universal Wu (2020), International Air Transport Association. (2021). Sustainable performance improvements in aviation necessitate relevant career paths.Overall, the findings indicate that career-related interventions, supportive work environments, and strategic retention measures are the primary drivers of organizational success in the Indian aviation industry, with work-life balance and salary playing only small roles. The findings contribute to the understanding that long-term performance increases in aviation necessitate strong talent-management methods, particularly those that prioritize retention, support, and meaningful career paths

 

CONFLICT OF INTERESTS

None. 

 

ACKNOWLEDGMENTS

None.

 

 

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