FINAL REPORT ON PAKISTAN INTERNATIONAL AIRLINES
GROUP MEMBERS
I.D No.
MUHAMMAD BILAL KHAN
2642
DANISH RASHEED
2670
MUHAMMAD NOMAN
2524
BINISH JAVED
2624
IRFAN ALI
2691
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ABOUT AUTHORS We are Muhammad Bilal Khan, Danish Rasheed, Muhammad Noman, Benish Javed and Irfan Ali. We have been given a project to study and analyze the role of management in any organization. We are students of MBA in Iqra University in the year 2008. Presently we are getting through our 2nd semester from IUGC and we are assigned to prepare this report.
Every project needs a lot of research, work, physical involvement and a great amount of personal interest in making it as informative as it can be.
The terms of information technology is used in this report and also used appropriate language to make this report effective.
ACKNOWLEDGEMENT We would like to express our emotions to pay a lot of thanks to the personalities who have been very co-operative throughout making of this project.
At last, we would like to thanks our family members, our teacher and friends for their support in preparing report as well as other we have h ave shared together.
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TABLE OF CONTENTS
1. INTRODUCTION. 2. VISIO VISION, N, AIM AIM AND AND OBJ OBJEC ECTI TIVE VES. S. 3. ROLE OF MANAGEMENT MANAGEMENT IN ACHIEVI ACHIEVING NG AIMS AIMS AND OBJECTIVES OBJECTIVES THROUGH PLANNING AND MONITORING.
4. SOME OF THE PROBLEMS RECENTLY FACED BY P.I.A MANAGEMENT.
5. MANGEMENT OF RESOURCES. 6. EVALUATION OF MANAGEMENT. 7. S.W.O.T ANALYSIS. 8. RECOMMENDATIONS.
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1- INTRODUCTION Pakistan International Airlines (PIA) is a national airline, 87 percent of the shares are held by the government government and 13 percent held by public. public. P.I.A is operating operating passenger and cargo services covering eighty-tw eighty-two o domestic domestic and foreign foreign destinatio destinations. ns. Establishe Established d in 1955, PIA has a vast experience in the airline industry of Pakistan with a large fleet of aircrafts. The fleet size is forty. PIA is a huge corporation with more than 18,000 employees. This organization is divided into following departments: Human Resource and Administration, Marketing, Corporate Planning, Information Services, Finance, Flight Services, Flight Operation, Engineering, Procurement Procurement and Logistics Logistics,, Customer Customer Services, Services, Training Training and Development, Development, Quality Assurance. The hierarchy of the organization follows, with the Chairman at the top and directors of departments reporting to him. The structure is centralized with the top-level management making the decisions.
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- VISION, MISSION STATEMENT AND VALUES
PIA's vision is to be a world class airline exceeding customer expectations through dedicated employees, committed to excellence.
MISSION STATEMENT •
Employee teams will contribute towards making PIA a global airline of
choice: •
Offering quality customer services and innovative products
•
Participating in global alliances
•
Using state-of-the-art technologies
•
Ensuring cost-effective measures in procurement and operations.
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VALUES •
Customer Expectations
Convenience, Caring, and Competitive Tariff •
Service
Personalized and Courteous •
Innovation
Cherishing New Ideas, Translated Into Action •
Cohesiveness
Respect for Individuals, Teamwork, and Effective Communication •
Integrity
Business Ethics, Accountability, and Transparency •
Reliability
Loyalty and Consistency •
Safety
Passengers, Employees, Environment, and Health
AIMS AND OBJECTIVES :
Like any other organization P.I.A real goal is to expand, grow and earn as much revenue as they can through providing good services to the customers.
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3 -ROLE OF MANAGEMENT IN ACHIEVING AIMS AND
OBJECTIVES THROUGH PLANNING AND MONITORING. Planning acts as a base for achieving the aims and objectives in PIA. Through planning the management set their goals and develops the ways through which they strive to achieve these goals. Through out our research we found that PIA does not depend upon the plans and strategies of a single department but the management of each department depends depends upon the coordinat coordination ion with with other other depart departmen ments ts as well. well. In other other words words the management framework is interdependent. For instance, If the Research and Development Department of PIA plans to expand their busin business ess in a new unserv unserved ed area area than than they they grasp grasp inform informati ation on from from their their Market Marketing ing Department because Marketing Department has network of agents all around the world through which they will find out how many passengers are available in the target market, than the Research and Development will coordinate with Fleet Planning to purchase a fleet of certain number of seats according to the number of passengers (provided by Marketing Department). In the next step of coordination, the fleet planning will contact the finance department to know that whether they have sufficient funds for the purchase of new fleet or they will have to hire on lease. Finally with the coordination of the board of dire direct ctor orss the the plan plan gets gets appro approved ved and and than than stra strate tegy gy is made made acco accord rdin ing g to the the requirement of the plan. The stated goals of P.I.A is different from its real goals, during our study we found the real goals of P.I.A, which is very similar to other organization. The real goal of P.I.A is to grow, develop and expand. Now how they achieve their real goals through planning and monitoring. They divide their real goals into sub goals that are objective, now to achieve these sub objectives planning and monitoring is done at every level of P.I.A. Basically research and development department is in continual process of identifying new unserved areas. To serve these unserved areas they make certain plans. For instance, Under Under planni planning ng R & D departm department ent consid consider er demogr demograph aphic ic dyn dynami amics, cs, class class of target target market market,, growth growth expectati expectation on etc. etc. Keepin Keeping g in mind mind these these variab variables les they they plan plan how to
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achieve these objective, for accomplishing these plans proper strategies are established. Then recommendation on the basis b asis of this is forwarded to marketing department. Now the marketing marketing department analyze this recommendat recommendation ion either either they are feasible feasible or the resources available to them are quite enough or not to go for this recommendation. After answering yes to these questions or if they want to proceed further then they plan how to achieve these targets. Then the marketing department starts promoting P.I.A in the target region through its different marketing tools. For instance, they have their agents’ network to promote P.I.A, they use print media as well for the promotion, and they have hording within the airport premises of the target market. On the other hand fleet management is engaged in acquiring the crafts according to the requirements of target market. For instance, they analyze with help of R & D and marketing, that how many passengers will be available in each flight and what will be number of flight each week to and from the destination? According to this information they arrange the air crafts. The fleet management is engaged in the most crucial business of P.I.A i.e. weather to purchase or hire fleet on lease. For short-time or seasonal impacts or quick requirements, fleet management hire the air crafts on leasing from leasing companies. But if the plan is for for long long term term requ requir irem emen ents ts the the flee fleett mana manage gerr deci decide dess to purc purcha hase se flee fleett from from manufacturing companies like BOEING and AIR-BUS. Purchasing or hiring an aircrafts is a very sensitive issue because each air craft has minimum value of $ 200 million or above, so if the prediction of R & D department and marketing is wrong than the planning of fleet management will be wasted as well. In other words it will be a loss of more than $ 200 million here it is important to mention that P.I.A is having a core competitors because P.I.A have purchased BOEING – 777 which competency over its competitors have the record of longest flight in the world. It was the biggest purchase decision in the history of Pakistan when P.I.A purchase eight Boeing – 777 crafts in 2002 and it is the honour for P.I.A than it was the first airline in the world to purchase Boeing – 777 so, the planning of fleet management depends upon long term and short term requirements. So, it is obvious that there are short terms and long term planning’s for both accordingly.
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Now the fleet manager will consult the finance manager to know that either finance department have sufficient capital or they will have to go for loan. All these decisions are made with the co- ordination of M.D of P.I.A who is continuously monitoring the entire activities of the management. If P.I.A have sufficient capital than they will go for it immediately otherwise the finance department will consult the banks and other financial institutions for loan on short term or long term according to the size of loan and future revenue and liquidity predictions. Once the finance is arranged the fleet management will survey the manufacture and then the deal is signed for the purchase of fleet. The previous fleet is continuously monitored and purchase decision is made keeping in view the monitoring reports. Here it is important to mention that the fleet planning will prefer the crafts having same company engines because it’s more economical. Once the deal is signed the H.R manager starts to find the crew, pilots and resources required for operation of flights because there is no surplus crew available. The H.R manager forecast current and future requirements. Monitoring is done in H.R department to evaluate the performance of the crew, pilots and ground personals to identify whether there is any action required for improvement or not. no t. After the co-ordination of all departmental managers a meeting is conducted with the M.D of the P.I.A in which all the pros and cons of the objective and goals are measured. This meeting shows the P.I.A decentralized at top level and then managers implement their plans and decisions at lower level to achieve the organizational goals.
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4
- SOME OF THE PROBLEMS RECENTLY FACED BY P.I.A MANAGEMENT
PROBLEM NO: 1
All the airports of the country presented a deserted look when the national carrier PIA grounded all its fleet on November 2, 2007. The main reason that led to the situation was that more than 800 engineers of PIA had collectively gone on sick leave following a protest campaign against the administration's reluctance to increase their salaries. They had also also asked asked for improv improveme ement nt in workpl workplace ace condit condition ions, s, privil privilege egess such such as flight flight allowance, rest allowance, fulfillment of promises made by the PIA management and the elimination of a 'faulty' evaluation system. The management had to led down in front of the engineers as they had to increase their salaries because there was no way out for the management due to the reason that without engineers PIA could not carry on its operations.
RECOMMENDATION: The The staff staff shoul should d be hired hired on merit merit basis basis rather rather than favour favourism ism and skilfu skilfull and competent staff should be given reasonable salary packages and benefits according to the international standards to motivate them as well as to avoid such issues.
PROBLEM NO.2 Operat Operating ing on the non-pro non-profit fitabl ablee routes routes also also called called socioe socioecon conomi omicc routes routes is also also a constraint for PIA management because due to government intervention the management have to deploy fleets on such non-profitable destinations. As a result of which PIA is bearing a loss of Rs Four crores per day i.e. Rs. 18 Lakhs per hour. For instance Chitral, Gilgit, Skardu, Gwadar, Panjgur, Turbat, Pasni and Jiwani are nonnon-pr prof ofit itab able le rout routes es for for PIA PIA as the the fare faress on thes thesee rout routes es are are less less than than the the fuel fuel consumption.
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RECOMMENDATION: We have concluded that PIA management should negotiate with the government officials and brief them through the fact and figures, either to increase the fares on these routes or must convince the government that PIA management will decide where to fly to avoid socioeconomic routes.
PROBLEM NO.3 PIA's real test in competing with private sector airlines began after the entry of Air blue in the market, in the year 2005. Comprising mostly the old management staff of PIA, Air blue started operating in domestic routes with its new aircraft. Air blue has put the national flag carrier into trouble with its innovative products and aggressive marketing strategy. The airline introduced e-ticketing system for the first time in the country, which was ultimately followed by other airlines including PIA. On the other hand business class clients prefer gulf-airs rather than PIA due to gulf unmatched services. Competitors are continuously giving tough time to the PIA with their better services and operations. The management is continuously trying to cope with the competitors by offeri offering ng differ different ent sort sort of custom customer er servic services. es. For Instan Instance, ce, the managem management ent of PIA expanded the scope of Air Express and launched a full-fledged courier service, and PIA Speedex Spee dex was ini initi tiate ated. d. Ini Initi tiall ally y it was ser servin ving g in Kar Karach achi, i, Lah Lahore ore,, and Is Islam lamabad abad,, afterwards after wards the management decided to expand Speede Speedex x to other 12 major cities cities as well. Today, PIA Speedex offers premium courier services in 70 cities across Pakistan, and shipments are collected from and delivered to the doorsteps of our customers. The management has started a unique service of pick and drop service to the customers to compete with the competitors.
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PROBLEM NO.4 PIA has a ratio of 440 employees per p er plane, as against the international average of 150 to 250 employees. This is because of the external intervention by the government officials to recommend their own people to be adjusted in PIA which is one of the root causes of huge financial losses to the organization.
RECOMMENDATION: The management should planning to deal with this issue by considering the option of downsizing of surplus employees and retaining skilled personnel.
5- MANGEMENT
OF RESOURCES
We have emphasized upon the major resources that the P.I.A possesses which are:
•
FLEET FLE ET RESOURC RES OURCES ES:
P.I.A possesses 40 fleets. The management of P.I.A endeavors to efficiency utilizes the fleet resources but due to the government intervention and other external forces the management is unable to utilize the resources. For instance, the fleet having a seat capacity of 120 passengers carries only 100 passengers from one point to another. Due to inefficiency of management the revenue of 20 seats is gone to waste. wa ste.
RECOMMENDATION: We recommend that P.I.A should deploy the fleets according to the seating capacity or P.I.A can deploy two small air crafts for the same destination to avoid the loss.
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•
CARGO RESOURCE RES OURCES S:
P.I.A cargo services are one of the main sources of revenue. As we have analyzed that the management is properly utilizing the cargo resources. The management makes sure that each cargo flight is taking a maximum amount of consignments. So, we don’t think that there is no need of recommendation as management is handling it perfectly.
•
TECHNOLOGICAL TECHNOLOGICAL RESOURCES:
In today dynamic environment technological developments are playing a vital role in progress of any organization. P.I.A is using different sort of software’s in its different depa depart rtme ment ntss to help help mana manage gers rs in maki making ng accu accura rate te deci decisi sion on.. For For inst instan ance ce,, flee fleett management uses TRAP, FP5 software. Marketing department uses the computerized data base management system powered by CAA (civil aviation authority) for improving marketing marketing decision. decision. P.I.A has launched launched SMS services through which customers can get there flight schedule by sending single SMS on 7422. Decision are made on the basis of facts and figures, the software’s provided by Boeing company is specially designed to process information of passengers and fleet w hich helps in making decision making and future perditions.
RECOMMENDATION: As this this Boei Boeing ng soft softwa ware re was implem implement ented ed by P.I. P.I.A A in 1998 1998 so, so, ther theree is need need to implement latest software developed by AIR BUS and biometric scanners.
•
HUMAN RESOURCES :
The organizatio organizational nal structure structure of PIA is centralized centralized,, therefore therefore decision-making decision-making is a timetimeconsuming process and delays occur in downward communication. Though, it is believed that the current Chairman is inclined towards a decentralized system, the effectiveness of such an approach in PIA will be seen soon. Effective communication is essential in all organizations and it becomes even more essential in an organization like PIA due to its large size and expanded network. It is necessary that people from various departments comm communi unica cate te betwe between en each each othe otherr to have have an over overal alll unif unifor ormi mity ty.. Amid Amid a highl highly y Page 12
compet competiti itive ve environ environmen ment, t, PIA needs needs to motiva motivate te its employ employees ees.. For this this purpos purpose, e, ‘Promotion Boards’ are held twice a year. ‘Extra-mile Awards’ are handed over to the comp compet etent ent empl employ oyee ees. s. An ‘Emp ‘Emplo loye yeee Sugge Suggest stio ion n Schem Scheme’ e’ give givess empl employ oyee eess an opportunity to be vociferous regarding their issues. The three best suggestions are given moneta monetary ry awards awards ranging ranging from from Rs.5000 Rs.5000 to Rs. 20,000. 20,000. Effort Effortss are made by PIA’s PIA’s management to ensure that employees are exposed to information in a manner which minimi minimizes zes uncert uncertain ainty ty amongs amongstt them them so that that they they are not disill disillusi usioned oned.. Howeve However, r, information through grapevine disturbs this process at times.
RECOMMENDATION: Employee unions are basically formed for the purpose of empowering employees and to make sure that the rights of the employees are given appropriately but it has been expe experi rienc enced ed that that the the PIA PIA empl employ oyee ee unio union n is enga engaged ged in some some mish mishap apss with with the the organization which was seen couple of months back when the employees went on strike for the purpose of increasing their salaries. So the employee union should be banned in PIA as the H.R management is already committed to take necessary steps for the improvement of employee benefits.
•
INFORMATIONAL INFORMATIONAL RESOURCES:
Basically the major sources of information for P.I.A is I.A.T.A (international air traffic authority), which provide information of current market trends, information about routes, latest latest technol technologi ogical cal improv improveme ements nts.. Anothe Anotherr source source of inform informati ation on is civil civil aviati aviation on auth author orit ity. y. Each Each depar departm tmen entt has has a sugge suggest stio ion n box wher wheree empl employ oyee eess can can drop drop any any suggestion.
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RELATED DIVERSIFICATION:
1.
P.I. P.I.A A has has used used ver verti tica call back back int integ egra rati tion on by bec becom omin ing g its its own own suppl suppliier by
opening poultry farms, which is not only catering the needs of P.I.A kitchen but also other airlines. 2.
P.I.A owns two international hotels one in NEWYORK and another in
PARI PARIS. S. Both Both of thes thesee ho hote tels ls are are the the reso resour urce cess of inco income me of P.I. P.I.A. A. But But unfort unfortuna unatel tely y due to curre current nt econom economic ic condit condition ionss of P.I.A, P.I.A, these these hotel hotelss are mortgage with the government of Pakistan for an amount of Rs. 50 billion. According to the Managing Director of P.I.A this amount will be spent on new business plan to add 30 new air crafts into P.I.A fleet during 2009 to 2011, while new flights will be started to Barcelona, Seoul, and Madina etc. 3.
P.I.A provides maintenance services to other airlines, which is a source of
revenue because each engine overhauling takes about eight to ten million dollars.
5 - EVALUATION OF MANAGEMENT Throughout our study we found that P.I.A is possessing talented, experienced and efficient managers. They have the capability and skills to cope with the difficult circumstances as we have observed that under current economic meltdown the survival of P.I.A is a an example of good management because P.I.A which is already facing the loss of 16.5 billion rupees woul would d have have gon gonee bankr bankrupt upt,, under under such such crit critic ical al globa globall econo economi micc cris crisis is,, but it is the the manage managemen mentt of P.I.A P.I.A who review review their their busine business ss strate strategie giess to deal deal with with the econom economic ic condition of P.I.A. Decision making is one of the most crucial responsibility of managers it was the P.I.A mana manage geme ment nt who took took the the bigg bigges estt econo economi micc deci decisi sion on in the the hist histor ory y of Pakis Pakista tan n by purchasing eight Boeing -777 against $ 1.5 billion. But on the other hand P.I.A management is having certain loop holes. For example, the management previously took decision to provide assistance to EMIRATES airline through assisting assisting their pilots, pilots, staff, staff, crew and management. management. Now the
EMIRATES EMIRATES is three times times
bigger than P.I.A and their main competitor. What the P.I.A management should do is that Page 14
They should opt for EMIRATES shares when they were providing assistance to them so, that that the the rev revenu enuee gen gener erat ated ed by EM EMIR IRAT ATES ES
coul could d ben benef efit it P.I. P.I.A A as as wel well. l.
It would would be a good decision decision for future future because because curren currentl tly y the diffic difficult ulties ies of financi financial al resources faced by P.I.A would be catered by that decision. As far as marketing is concerned the management is not only up to the standard, the marketing managers are utilizing the efficient marketing strategies to attract customers. The fleet management is inefficient because the maintenance of aircrafts of P.I.A is not up to the international standards due to which E.U (Europe union) has banned P.I.A fleets to take their passengers which is causing a loss of 26.5 billion rupees to P.I.A . The H.R management is also not functioning according to the set standards. It is due to the external intervention i.e. government which recommends people on political basis, not on merit. It is a dreadful fact that each fleet is possessing 450 crew but the international standard is 150 to 200 crew per fleet. This is causing a severe financial loss to P.I.A There There are no proper proper strate strategie giess or polici policies es for overcom overcoming ing the intern internal al organi organizat zation ional al conflicts to resolve them. Conflicts in power sharing are so common due to which resources are gone to waste. In a nutshell the management of P.I.A is facing certain constraints and according to the manager of international affairs “It is the government of Pakistan that is creating hurdles for P.I.A and expecting higher revenue as well”.
7- S.W.O.T Analysis
STRENGTHS
Boeing-777
PIA acquired Boeing-777 aircrafts in 2002 from Boeing Company, which have the capability of taking long flights all around the world. PIA is having core competency over its competitors and Boeing-777 is generating reasonable revenues for P.I.A.
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Coming Back To Home
P.I.A P.I.A offici officials als admit admit that that the airli airline ne is mainta maintaini ining ng the tradit tradition ional al Pakis Pakistan tanii environment in its flights which attracts the local passengers within the country as well as outside to chose P.I.A as its fleet. P.I.A recognizes it as the advantage over its competitors like Emirates, Air-Blue etc.
Poultry-Business
P.I.A is engaged in the poultry business as well to provide fresh meat to its In-flight kitchens to avoid the low quality meat. Not only this but other airlines also consult P.I.A for this purpose.
Hotel Business
P.I.A owns number of hotels within the country as well as outside the country which are considered as the strength of P.I.A to generate revenues.
WEAKNESSES
Attitude Problem
P.I.A is facing obstacles due to rough attitude of its in-flight staff. Most of the passengers opinion about P.I.A staff is that they do not behave according to the standards set. Than “Why Come Fly With P.I.A?”
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Over Utilization Of Fleets
P.I.A is losing its customers and business because it uses aircrafts more than the life of these aircrafts which becomes dangerous. Recently E.U banned P.I.A due to this reason due to which P.I.A suffered a loss of 25.6millions.
Inefficiency In Bilateral
P.I.A can increase its revenues by successful bilateral negotiations with other countries because these countries have the advantage over P.I.A because they take more number of flights than P.I.A does, due to in-efficiency of bilaterals with these countries.
Over-employment
According to the international standards the number of crew on the aircraft during flights should be 150 to 200 but on the P.I.A flights the number of crew is 400 to 450 45 0 whic which h caus causes es seve severe re loss loss to the the airl airlin inee in term termss of fina financ ncee beca becaus usee maintaining such number of people on the flight is nothing but loss to the airline.
OPPORTUNITIES
Purchase Of Fleets On Discount
In the current global economic conditions most of the airlines have delayed their orders with BOEING and AIR-BUS due to financial losses. It is the right time for P.I.A to purchase these delayed orders from manufacturers because manufacturers can be inspired to deliver the fleets on discount rates as these manufacturers do not want to retain their orders that are delayed by other airlines.
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New Markets
There are several countries in which P.I.A is not making its flights. In fact in these markets P.I.A can earn much more revenue. For instance P.I.A can deploy its BOEING-777 on long routes which may include Barcelona, Seoul, and Madina etc.
Sale out of Old Crafts
Currently there is a golden opportunity for P.I.A to sale out its old aircrafts because currently the dollar has fluctuated to its peak rates, so the earnings should be utilized in betterment of financial position of P.I.A.
THREATS
Rapidly Changing Environment
Just like other organizations P.I.A is under continual threat of environmental changes. As P.I.A is engaged in the global business it has to take into account the international environmental factors along with the local factors. Keeping in view such variables the management has to abandon certain projects or delay them which cause severe losses to the airline.
Competitive Environment
P.I.A was enjoying its monopoly recently but after the C.A.A has authorized private companies to enter in the airline industry they are giving tough time to P.I.A through their better services and innovative strategies.
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Purchasing Power Of Customers
Due Due to incr increa easi sing ng infl inflat atio ion n rate ratess in Paki Pakist stan an the the pu purc rcha hasi sing ng po powe werr of the the customers have been affected due to which the business of P.I.A is also affected which results in declining revenue graph of P.I.A.
Global Economic Melt-Down
Due to the current global economic melt-down the liquidity of the airline has been affected and P.I.A which is already suffering for survival is facing the problems of liquidity i.e. lacking of enough reserves to pay its installment debts on the aircrafts purchased previously.
Terrorism
Tourists are avoiding to visit Pakistan due to the terrorist activities in the country. Most of the foreign countries have warned their citizen to avoid going to Pakistan. This factor is a threat for the revenues of P.I.A as it has lost the customers outside the country.
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8- RECOMMENDATIONS
•
DECENTRALIZATION
PIA should should decent decentral ralize ize is its structur structuree that that would would lead lead to the easy easy manage managemen ment, t, increased motivation, easy access to information and resolution of the conflicts (as they would be resolved by the immediate manger time span would then reduced). Since employees issues regarding their behavior would lessen, so it would ultimately lead to more satisfied employees that would result in enhanced productivity of the organization.
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EMPLOYEE EMPOWERMENT
PIA should make efforts towards empowering the employees that is going to lead to more employee participation in the decision making process and also result in more employee satisfaction and enhanced motivation. Apart from this, employees would feel more independent to discuss the issues explicitly without hesitation. This would also enhance team work process at PIA as quality team and cross-functional teams. The employees will work with more commitment and dedication and every employee would work to his/her fullest due to increased motivation. However, with empowerment comes accountability, so it is suggested that while they empower their employees, there should also be a “controlled check’’ on them to ensue the correct usage of power delegated to every employees within their circumscribed limits.
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OVERHEAD COSTS
PIA should also reduce its overhead costs that are it should mange its resources: labour more effectively, so that with less input, more out put can be achieved and 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, so by saving the overhead costs, they can utilize that money for the expertise services. So by analyzing the various segments of the organization and making the right corrections.
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•
TWO-WAY COMMUNICATION
The suggestions of the employees can prove to be very effective in improving the operations as they are the ones who manage them. Therefore, a top-down approach should be replaced with two-way communications. In this way, the employees would feel motivated and valued as they would be included in decision-making.
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IMPROVEMENT IN SERVICES
P.I. P.I.A A shou should ld prov provid idee serv servic ices es acco accord rdin ing g to cust custom omer er’s ’s need need not not acco accord rdin ing g to Pakistani/local culture in order compete with their competitors. Properly train air hostess make them familiar with different foreign languages.
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HIRING ON MERIT BASIS
P.I.A should remove all the employees appointed on political grounds, because most of them are more like a burden on P.I.A expenditures as they are getting salaries for nothing. On the other hand skillful and talented engineers should be paid reasonable salary package to motivate them.
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PROPER UTILIZATION OF FLEETS
What we have analyzed that P.I.A is using four engine plans even for the short roots like Islamabad and Lahore. We recommend that the P.I.A should use two engine fleets for short roots in order cut some maintenance cost.
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