Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
ON
SUBMITTED BY
IQRA KHAN
ROLL # MB-08-12
MBA-I (3RD Semester)
September 11’2009
TABLE OF CONTENTS
ACKNOWLEDGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
PIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
SWOT ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
PEST ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
SUGGESTIONS TO PIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
2
ACKNOWLEDGMENT
3
PREFACE
4
PAKISTAN INTERNATIONAL
AIRLINES (PIA)
5
INTRODUCTION TO
DEPARTMENTS
PIA has been divided into the following departments:-
Human Resource/personnel
Finance
Marketing
Engineering
Flight Operations
Airport Services
Cargo Sales & Services
Information technology
PERSONNEL/HR DEPARTMENT
The entire office procedure revolves around the filing system. In the
office terminology, it connotes a device for holding papers for reference.
All papers are kept in two categories wise, notes and correspondence
comprises all communications received and office copies of out going
communications. They are arranged chronologically – those reaching
first, kept at the bottom. All communications are assigned reference No.
The material collected for the sake of understanding is given in the
appendix of correspondence. The whole set is then placed in a large
folder with a folio-sized cardboard. This makes a file all files are
registered I the file register.
6
HUMAN RESOURCE MANAGEMENT FUNCTIONS
• Promotion/transfer:
• Retirement/pensions:
• Leave
o Casual leave
o Privileged leave
o Sick leave
o Disability leave
• Passages/free tickets
• Training
• Benefits and allowances
• Salary
o Pay group I-IV :it includes the unionized staff
o Pay group V-IX: includes the officers and middle
level management
o Pay group X-above:it includes g.m; and other higher
executives
o A special pay group is for the managing director,
director and pilots.
• Performance appraisal
• Employees record
Dummy record is maintained for all employees as well as the
out-station by the admin. Dept that are the duplicate of the actual
records maintained at the head office. Microfilms of these records
7
are maintained to avoid loss in case of damage or misplacement of
the written records.
• Discipline / penalties
o Decrease in pay
o Demotion
o Discharge
o Suspension
o Dismissal
• Golden hand shake
• Career development
• Manpower planning
FINANCE DEPARTMENT
Funds Management
Accounting
8
Internal Audit
Revenue Management
All the above divisions are operative in PIA head office islamabad.
number of sections :-
region)
Agency Sales unit (It deals with the sales finance of all travel
MARKETING DEPARTMENT
9
o Counter T&R
o Airport T&R
o Web-ticketing
o Kiosk Machines
ENGINEERING DEPARTMENT
10
Development Engineering Division
Standards Division
Technical Division
Coordination Division
Training Division
11
Passenger Services Division
The cargo sales and service department has the same functionality as of
passenger sales and service. It allows shipment all over the world in PIA
network. Cargo rates vary from country to country. It has the booking of
cargo, loading and unloading, refund etc. However PIA has none of its
planes specialized for cargo only. Six categories of goods in cargo are
• Livestock
12
• Gifts
13
MY TASKS/ACTIVITIES IN PIA
14
a. Presents
b. Weeks offs
c. Days offs.
d. OCS (out station service)
e. Shifts
f. Leaves
g. Absentees
I checked mails and replied to them as directed by my supervisor
• I mailed a complaint against frequent server errors of TMS
• I checked & printed mail by DGM HR ( Deputy General Manager)
regarding an internal audit “Excessive Manpower In Multan”
15
I made entries in COSSAP (Corporate Standard Station
Accounting Package ) System for refunded tickets 16-31/05/09.
They showed me the annual report of 2006.
They taught me the format of their Bank Reconciliation and
showed us BR for June 1-16.
They showed me their monthly Trial Balance (Journal Voucher) of
PIA Multan
They briefed me about PIA Bank Accounts (Two Types).
1) Impressed/Disbursement Account(122)
2) Collection Account (121).
Mr. Imran Afzal briefed me about the I.T operations of the PIA, that
how it is connected and how operations are held.
I made computerized document for
o Source 53 ( Loans & Disbursement)
o Source 55 (amount adjustment/change advice)
I worked on a Computer Named DX 2000MT
HP S/n SGH5070147
P/n PG984AV
• Installed Softwares (Ms-Office)
16
Cargo rates
Cargo handling procedures
Cargo prioritizing
Cargo packing (I watched them packaging goods)
Cargo carriage
17
• Exit (Exit Gate Reader)
• Also this day I observed the inside operations of airport. I observed
how the load sheet is made within 20 minutes of all passengers’
check-in and flight take off. A person called “Trimmer” makes this
sheet to calculate specific gravity for plane take off through weight
and balance.
APPLICATION OF CLASSROOM
LEARNING IN ORGANIZATION
18
In finance all the procedures were same as I have read and
exercised in accounting & fiancé.
PIA’s annual report is updated on quarterly basis by head office
Proper budget is allocated to each PIA station by head office
There is daily bank reconciliation of PIA on its accounts which are
of two types i.e. disbursement & collection account.
PIA deals with three types of credits
I. Govt. credit for giving concession to govt. employees
II. Commercial credit on credit cards
III. Forced credit for defaulted travel agents’ topping
HUMAN RESOURCE DEPARTMENT:
HR department of PIA completely coincides with the literature of
HRM.
PIA is carrying out class-room, on the job, job rotation and
simulative training
However there is sometimes recruiting carried out on non-merit
basis
HR evaluation system is very good, few times back they were
using annual confidential report method by an appointed senior but
now they are using bell curve methodology.
Each and every transaction in PIA is recorded both manually and
electronically through their specially developed software systems
INFORMATION TECHNOLOGY DEPARTMENT:
This is not a complete department as such in PIA stations. But 2-3
IT officers work in each station
IT officers are specified to deal with any type of IT related
problem. They have a very well established network of computer
PIA has bought its own anti-virus system and developed
specialized software for each department i.e. SABRE,COSSAP &
TMS
CARGO DEPARTMENT:
In cargo I have seen highly specialized goods assortment.
Careful packaging and carriage of shipment goods
19
There was an air of laziness in cargo department as they were
dealing with non-living objects might be.
AIRPORT OPERATIONS:
There was excellent time management on airport which was also
the prior demnd of airport operations
Everything was so hast yet perfect and flawless. Any mistake or
blunder on airport is just not acceptable and asks for penalty.
There was more of a use of sciences in flight operations. Efficient
machines and efficient staff working in harmony to carry out
mechanical operations.
20
for the company and the un-necessary government intervention in its
ownership and operations. It seems that whatever PIA is earning it is just
sufficient for fulfilling the demands of PIA’s owners. I would like to
highlight this, that my experience with PIA was very memorable and full
of learning’s, where I found a lot of positive changes in my attitude,
learning and behavior
SWOT ANALYSIS
STRENGTHS
Only national airline and the only flag carrier airline of Pakistan
WEAKNESSES
Lack of professionalism
21
Low level of commitment for the organization
Over recruitment
OPPORTUNITIES
PIA has potential market in Middle East if PIA upgrades its fleet.
22
PIA can generate more revenue by attracting customers through
THREATS
PEST ANALYSIS
23
The macro-environment includes all factors influencing a company that
are not within its control. These include political, social, economic and
technological factors. These are known as PEST factors.
i) POLITICAL FACTORS:
Political factors always have a great
influence on the way businesses operate in the airline industry and the
spending power of customers. In recent years it has been observed that
government played an active role in increasing competition in the airline
industry. A number of new airlines such as AirBlue and JS Air have
been awarded licenses to enter the domestic market.
Pakistan has achieved some political stability in recent years. If the
management of PIA believes that the present government will perform
well (consistently), then there will be more investment in the form of
purchase of new airplanes and latest technology. The over all industry
will grow resulting in more luxurious and comfortable flights. With the
military takeover government policies have become more liberal.
24
ii) ECONOMIC FACTORS:
Currently, Airlines industry has three
major players: Pakistan International Airlines, an Airblue, Aero Asia and
Shaheen Airlines. Their target market includes domestic travelers as
well as Pakistanis living abroad particularly in the UK and USA. These
countries have strong economies coupled with high purchasing power.
Customers’ purchase behavior depends very much on prices of the
competing airlines as well as services offered. As inflation rate is
unstable in Pakistan, spending power of consumers has effected in the
long term. In fact growth in Pakistani economy has resulted in an
increase in spending power and has positively impacted the airline
industry.
Economically, the new millennium has been highly volatile; the
September 11 attacks revolutionized the whole world. Consequently,
there was a global depression in the North America, South America,
Australia and Europe. However, in Asia especially Pakistan the effect in
the short term was otherwise. The economy began to boom because of
greater remittances from abroad and whole sum immigration by
expatriates. As a result, demand for air travel in South Asia rose.
Economic conditions of Pakistan are however improving. PIA has cost a
advantage over its competitors because of its newly acquired, improved,
long distance aircrafts from Boeing’ which give longer range and better
25
fuel economy than any other jet currently produced. This cost advantage
is a barrier to entry for new firms. However, this cost advantage will not
be significant on domestic routes.
26
vi) TECHNOLOGICAL FACTORS:
Technology is vital for
competitive advantage and is a major driver of the airlines industry.
Major technological changes are taking place in the airlines industry
with innovations in the reservations and booking systems. In-flight
entertainment systems and auto check in counters are two examples of
such innovations. Internet plays a key role in e-ticketing as consumer
can easily reserve tickets or check the status of the flight.
A key issue will be the extent, to which technological advancements
(such as Internet) impact distribution and cost synergies from industry
consolidation, can offset upward pressures on costs. PIA has always led
the path of technological innovations by introducing new technologies
ahead of its competitors such as its auto check-in counters which has
helped it gain market share. It was the first airline in Pakistan to install
Sabre system followed by the market leader.
SUGGESTIONS
27
I would like to give certain suggestions for PIA’s betterment and
profitability.
1. PIA should adopt transparent policy that employees should be
promoted on merit basis. And Chairman of PIA should be appointed
from with in the organization. Union should support it, it will motivate
the employees and PIA to work harder.
2. PIA should adopt good marketing policies so that it will bring
higher profit and maximum utilization of its available resources,
Business sector should be attracted to operate at full potential.
3. PIA should upgrade its fleet as it’s causing the airline higher
operating cost and PIA is incurring loss .PIA should purchase new
Airplane with twin engines these will reduce the operating cost of PIA.
4. Airline should focus on the customer’s satisfaction, refund process
should be quick so that customer remains loyal to brand.
5. PIA should not induct new employees till the time they are needed
because PIA is suffering from over manpower.
6. PIA should give bonus/promotions to the competent employees as
there is clear cut lack of motivation among its employess.
7. There should be control on the increase of fares, as mediocre are in
majority in Pakistan, and it is highly difficult for to even think about the
air traveling. Management should think over it and at least they can start
a new packaged flight twice a week having 50% fares.
28
8. Unnecessary facilities provided to the Government Department
should not be discouraged but with drawn as it causes financial losses.
Management should focus on computerized system up gradation and
implementation.
9. Management should hire the services of specialized IT personnel for
their system development and up gradation on time.
10. There should be clear and even distribution of work and only
qualified person should be appointed on jobs.
11. There should be improved service standards and that should focus
on quality.
12. PIA should offer its services of reservation and seat confirmation
with by SMS and flight confirmation message should also be sent via
SMS to the passenger.
13. PIA should give more incentives to its frequent flyer as it will
generate more brand loyalty by giving better incentives to the customers.
If I were a manager in PIA.I would have tried and make many promising
changes in the organization, some of them are as follows:-
1. I would first of all bring new and energetic blood to the workforce
of PIA.
2. I would have asked financial assistance from institutions and
contract with foreign airlines to upgrade existing fleet of PIA, as
29
well as buy new fleet of international standards, this beginning
investment would definitely turn into a long-term gain for PIA.
3. I would make the pay scale for the most important staff of PIA i.e.
pilots, air hostesses, marketing heads, so much competitive that
they won’t drain their skills from PIA by switching to other
organizations.
4. I would arrange most efficient training program for PIA
representative staff.
5. I would try and uproot the hard-woven practices of a common
government organization’s legacy such that absenteeism, free
riding, laziness, corruption, family line promotions etc.
CONTACT INFORMATION OF MY
SUPERVISORS IN EACH DEPARTMENT
HR Department, Abdali Road, MULTAN.
Supervisor : Mr. Kaleem Siddiqui
Sr. Personnel officer
0300-6309629
30
IT Department, Pakistan International Airport Multan
Supervisor: Mr. Imran Afzal.
Computer Network Engineer
Ph 03219422452
31