PIA’s MANAGEMENT

Submitted To:- Madam Humaira

Submitted By:- Amanullah Ch. FA08-BEL-015

Jahanzeb Lateef FA08-BEL-024

Rizwan Ali FA08-BEL-034

Shahid Sarfaraz FA08-BEL-037

Shahzad Jamil FA08-BEL-038

COMSATS

Commission on Science and Technology for Sustainable Development in the South (PAKISTAN)

Table of Content

1) Introduction 1.1) Historical Profile ……………………………………………………………...01

1.2) Logos ………………….……………………………………………………………02

1.3) DEPARTMENTS …………………………………………………………………03

2) Organizational Structure2.1) Flow chart ………………………………………………………………………..04

3) Organizational Strategies3.1) Corporate Vision………………………………………………….……………05

3.2) Corporate Mission……...…………………………………………………….05

3.3) Corporate Values……...………………………………………………………06

3.4) Major Competitors…….……………………………………………..........07

4) Serving people4.1) Fleets………..………………………………………………………………........08

4.2) Services…………………………………………………………………………….09

4.3) Revenue Composition……………………………………………………….10

5) SWOT Analysis5.1) SWOT Analysis-Internal Factor………………………………………….11

5.2) SWOT Analysis-External Factor……………………………..………….12

6) PEST Analysis6.1) Political / Economical Factors……………………………………………13

6.2) Social / Technological Factors ……………………………………………14

7) Marketing7.1) Direct Marketing Tools

7.1.1) Personalization………………………………………………..………15

7.2) Brochures

7.2.1) Umrah Made Easier………………………………………………….15

7.2.2) Budget Flight……..…………………………………………………….16

7.2.3) Flexible Fares……………..…………………………………………….16

7.2.4) Free Ticket…………….…………………………………………………17

7.2.5) Discount.....………………………………………………………………17

7.2.6) Speedex Delivers………………………………………………………18

7.2.7) Web Ticketing…………………………………………………………..18

7.2.8) Pick & Drop………………………………………………………………18

7.3) Magazines…………………………………………………………….………….19

7.4) Newspaper Advertisement……………………………….…………..….20

8) RECRUITMENT AND SELECTION PROCEDURES

8.1) Eligibility Criteria..................................................................21

8.2) Selection Procedure.............................................................22

9) Compensation……………………………………………………….24

10) Recommendations10.1) Decentralization……………………………………………………………….28

10.2) Strategic Business Unit……………………………………………………..28

10.3) Employee Empowerment………………………………………………….29

10.4) Overhead Costs…………………………………………………………………29

10.5) Two Way Communication…………………………………………………30

Historical ProfileA National airline operating Passenger and Cargo services.

It is the 16th largest airline in Asia

Covering Eighty-two Domestic and Foreign destinations.

Established in 1955, having vast experience in the airline industry of Pakistan with a large fleet of aircrafts.

The fleet size is forty-three.

A huge Corporation with 18,043 Employees.

Main bases are

Jinnah International Airport, Karachi,

The Allama Iqbal International Airport,

Lahore and the Islamabad International Airport, Islamabad/Rawalpindi.

Secondary bases,

Peshawar International Airport,

Faisalabad International Airport,

Quetta International Airport and

Multan International Airport

01

LOGOS

1960s Logo

02

DEPARTMENTS The departments include:

Human Resource and Administration

Marketing

Corporate Planning,

Information Services,

Finance

Flight Services

Flight Operation

Engineering

Procurement and Logistics

Customer Services

Training and Development

Quality Assurance

03

Organizational Structure

04

Corporate VisionTo be a World Class Airline exceeding Customer Expectations through Dedicated Employees Committed to Excellence.

Corporate MissionAs a Symbol of National Pride, We Aspire to be a Choice Airline, Operating Profitably on Modern Commercial concepts and Capable of Competing with the Best in the International as well as Domestic markets.

05

Corporate Values• Customer Expectations

(Convenience, Care and Competitive tariff)

• Service

(Personalized and Courteous)

• Innovation

(Cherishing new ideas, translating into actions)

• Reliability

(Loyalty and Consistency)

• Safety

(Passengers, Employees, Environment and Health)

• Cohesiveness

(Respect for individuals, Team Work and Effective Communication)

• Integrity

(Business Ethics, Accountability and Transparency) 06

Major Competitors

07

FleetPakistan International Airlines fleet includes the following aircraft (as of November 2009)

Type Numbers

Airbus A310-300 12

ATR 42-500 7

Boeing 737-300 6

Boeing 747-200 1

Boeing 747-300 5

Boeing 777-200ER 4

Boeing 777-200LR 2

Boeing 777-300ER 3

Total 40

08

Services• Business class

It’s the only Business Class service that feels like First Class

Economy class

It make you feel that every class provides comfort

Revenue Composition

10

SWOT Analysis1. SWOT Analysis-Internal Factor

Strengths

Leading Market Position

Brand Recognition

Superior Operating Structure

Network Presence

Hub airport at Karachi

Weakness

Formulation of Govt. Rules

High dependence on Passenger Revenues

Debt

Reliance on Oil Prices

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2. SWOT Analysis-External Factor

Opportunities

Having the maximum route and fleet

Growing demand for low cost airlines

Customer loyalty

Shifting customer needs

Industry Recovery

Threats

High Interest Rates

Accidents

Strong Competition by Air-blue

Interest and foreign currency exchange rates

Decline in airline industry

12

PEST Analysis

Political Factors

Increased Competition (Deregulation of airline industry)

Political Stability

Increased Investment Opportunity

Economical Factors

Improved Purchasing Power

Demand Value-for-Money

Soaring Oil Prices

Reduced Ticket Prices

13

Social Factors

Greater Customer Awareness

Increased Entertainment Spending

Technology Averse Customers

Technological Factors

In-flight Entertainment

E-ticketing

Automated (Self) Check-in

SMS Services

14

MarketingDirect Marketing Tools

PersonalizationWe are setting up a plan to boost up our long term association to put into practice “The concept of personalization.”

Brochures

1. UMRAH MADE EASIER

Pilgrims can now enjoy comfortable and luxurious journey in Boeing-777s

These additional flights will not only provide more travel options to Umrah Pilgrims but will also enable more people to perform the holy ritual.

PIA offers more flights to Jeddah in May, June and July for Umrah

15

2. PIA 'Budget Flight' - Enjoy up to 39% discount on regular fares

PIA introduces Budget Flight between Karachi, Lahore, and Islamabad.

Fly PIA's new ATR

Up to 10kg hand baggage allowed

No checked-in baggage

Condition apply

3. PIA Flexible Fares - Plan Ahead & Pay Less

Book International or Domestic flights as early as possible because the earlier you buy, the cheaper you fly.

A variety of discounts in Business, Economy Plus, & Economy Classes.

The benefit of even lower fares in the lean travel period.

Flexible Fares are applicable on sectors where Revenue Management is implemented.

Conditions apply16

4. Fly Business Class with a Free Ticket

Buy three tickets and get one FREE

Buy one ticket and pay ONLY 50% for your companion

The offer is available on International routes only

This offer is not available on UK, USA & Canada sectors

This facility is only valid for the sectors where RM is not implemented

5. Discount to Students on International and Domestic Sectors

25% discount offered to students on Domestic routes.

10% discount on International routes is valid only on the routes where RM is not implemented

Offer can be availed exclusively from PIA Booking Offices or the PIA counters at the airport.

The offer is available only for Economy Class passengers

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6. PIA Speedex Delivers With Speed, Reliability, and Affordability

PIA Speedex delivers documents and parcels to your doorstep, with a vast domestic network, cutting-edge technology, and the highest standards of customer service.

PIA Speedex offers a range of flexible delivery options to suit your budget and your needs.

Same Day Speed

Overnight Speed

Second Day Speed

Seasonal Products (New)

7. Click 'n' Fly with PIA Web Ticketing

Secure online credit card transaction

Convenient accessibility from home or office

Save Rs.300 per ticket

8. Free Pick & Drop Service

PIA now offers the free pick and drop service from your door to airport.

This offer will be offer only for Business class.18

MagazinesPIA will give advertisement in different magazines once after two month with a coupon of 15% off in the following magazines.

Times Magazines

Spider

Arora

19

Newspaper Advertisement

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RECRUITMENT AND SELECTION PROCEDURES

Applications are invited on the prescribed Form available (free of cost) in PIA Recruitment & Placement Office at Karachi and in PIA Offices at other stations and also on PIA website. www.piac.com.pk. Vacancies are announced on all the local news paper and the PIA official website.

Eligibility Criteria 1) Qualification

The qualification that is compulsory for applying in PIA is started from intermediate degree and end up at to graduate degree and this very from job to job. As one of the employees Amir told us in his interview. “PIA have dropped the required level of education from a graduate degree to an intermediate degree”

2) Age Requirement

Requirement for the age is also very from post to post and its most probably depend upon the experience required for a specific job. But generally the age requirement for PIA is ranging from 19 to 24. “The age barrier has also shifted upwards, meaning that a candidate must be a minimum of 19 years old and a maximum of 24,” said Mr. Amir

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3) Physical Requirement

Physical requirement for the candidate of PIA is also differ from gender to gender. The minimum required height is 5 feet, 6 inches for men and 5 feet, 2 inches for women, with proportionate weight.

SELECTION PROCEDURE

Candidates want to join PIA are go through a strict selection procedure before being allowed to become the part of the PIA. Normally three types of the tests are conducted by PIA for selecting a candidate. Following are the tests that are conducted

1) Physical Test Physical test is considered the first selection test in which the interviewer determines that either candidate is full filling the physical requirement for the job or not. “Their skin quality, height and weight are noted in the first interview session,” said PIA Jawad Mansoor

2) Grooming Test If candidate selected in the first interview, the hopefuls take a grooming test. Here, men and women present themselves in a manner, both physical and behavioral, befitting the job while women’s make-up skills are also checked.

3) General Test Once the grooming test is cleared, the candidates’ general knowledge is tested in written and oral tests. These tests are some times based on brainstorming.

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Now days this selection tests are administered by NTS. The selected candidates attend an intensive three to four week training course which is organized by the airline since there are currently no institutes in Pakistan offering training courses for flight attendants. During this period, the selected candidates are trained to handle emergency situations such as evacuation and hijacking. They are also given basic training in first aid and are taught to deal with problematic passengers.

23

COMPENSATIONPIA believes that they can use compensation as a key tool to recruit and train employees, increase and maintain morale/satisfaction, reward and encourage peak performances, achieve external and internal equity, reduce turnover, and modify practices of unions. According to the Interview conducted, PIA employee believes that compensation and retention of employees is a common goal shared by everyone. Morale and job satisfaction are affected by compensation. In an attempt to save money, employers may opt to freeze salaries or salary levels at the expense of satisfaction and morale. Conversely, an employer wishing to reduce employee turnover may seek to increase salaries and salary levels. He also added that compensation may also be used as a reward for exceptional job performance. Examples of such plans by PIA includes: bonuses, commissions, stock, and profit sharing, gain sharing. We do have a clear picture of the compensation components that our PIA organization has discussed in many meetings yet we have to consider their full implementations with time. These include

Job description Job analysis Job evaluations Pay structures Salary survey

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A critical component of both compensation and selection systems, job descriptions define in writing the responsibilities, requirements, functions, duties, location, environment, conditions, and other aspects of jobs. Descriptions may be developed for jobs individually or for entire job families. Job analysis techniques include the use of interviews, questionnaires, and observation. A system for comparing jobs for the purpose of determining appropriate compensation levels for individual jobs or job elements. There are four main techniques: Ranking, Classification, Factor Comparison, and Point Method. Useful for standardizing compensation practices. Most pay structures include several grades with each grade containing a minimum salary/wage and either step increments or grade range. Step increments are common with union positions where the pay for each job is pre-determined through collective bargaining. Collections of salary and market data. May include average salaries, inflation indicators, cost of living indicators, salary budget averages. Companies may purchase results of surveys conducted by survey vendors or may conduct their own salary surveys. When purchasing the results of salary surveys conducted by other vendors, note that surveys may be conducted within a specific industry or across industries as well as within one geographical region or across different geographical regions. Know which industry or geographic location the salary results pertain to before comparing the results to your company.

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As said by one of the employee;

“Principles of Compensation Discussed Compensation will be perceived as fair if it is comprised of a system of

components developed to maintain internal and external equity.

After questioning about the types of compensations the PIA employees are getting, one person replied that we do know many types of compensation aspects but those we receive include:

Base Pay Commissions Overtime Pay Bonuses, Profit Sharing, Merit Pay Stock Options Travel/Meal/Housing Allowance Benefits including: dental, insurance, medical, vacation,

leaves, retirement, taxes...

PIA follows a proper compensation plan for its employees by having a proper outline of the budget, target and the objectives to be met. It than design the compensation program including: whether the position will be permanent or temporary, who will oversea the program once it is established, and the cost of consultant reviews. The compensation philosophy is also considered essential part of PIA compensation programs. It defines the pay structures

for all level of employees and whether to set pays above or below market level. PIA holds a proper job analysis of all employee levels; and evaluates jobs on the basis of above mentioned results. Jobs are ranked and the grades are determined; resulting in a appropriate salary structures and compensation objectives. The program is then monitored through feedback from managers. If their exist any flaw, it gets revised by the good authorities of PIA.

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Recommendations1. DECENTRALIZATION:

Autocratic Style to be changed to Participative Leadership.

Minimal Delegation of authority to be Maximized.

Easy Management

Increased Motivation

Easy Access to information and Resolution to the Conflicts.

2. STRATEGIC BUSINESS UNIT

PIA should make its different departments into Strategic Business Unit

Every SBU should have a defined business strategy and a manager with sales and profit responsibility

(a) Factors should be determined for the success of SBUs

The degree of autonomy to each SBU manager

The degree to which an SBU shares functional programs and facilities with other SBU's

The manner in which the corporation evaluates and rewards the performance of its SBU managers

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3. EMPLOYEE EMPOWERMENT:

Empowering the employees would lead to More Employee Participation in the Decision Making Process

More Employee Satisfaction

Enhanced motivation

More Independent Employees in discussing the issues Explicitly without Hesitation

Quality team and Cross-functional teams

More Commitment and Dedication

4. OVERHEAD COSTS:

PIA should also reduce its overhead costs that are it should mange its resources: labor more effectively.

the saved resources can be utilized in other areas such as introducing more training courses for the employees so that the quality of the workforce could be increased.

.Hiring the services of expertise can improve the efficiency of their services.

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5. Two-Way Communication:

Top-down approach should be replaced with two-way communications

The employees would feel motivated and valued as they would be included in decision-making.

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