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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 Structure
2.1) Flow chart
………………………………………………………………………..04

3) Organizational Strategies
3.1) Corporate
Vision………………………………………………….……………
05
3.2) Corporate Mission……...
…………………………………………………….05
3.3) Corporate Values……...
………………………………………………………06
3.4) Major Competitors…….
……………………………………………..........07

4) Serving people
4.1) Fleets………..
………………………………………………………………........08
4.2)

Services…………………………………………………………………
………….09
4.3) Revenue
Composition……………………………………………………….10

5) SWOT Analysis
5.1) SWOT Analysis-Internal
Factor………………………………………….11
5.2) SWOT Analysis-External
Factor……………………………..………….12

6) PEST Analysis
6.1) Political / Economical
Factors……………………………………………13
6.2) Social / Technological Factors
……………………………………………14

7) Marketing
7.1) 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) Recommendations
10.1)

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 Profile
A 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 Vision
To be a World Class Airline exceeding
Customer Expectations through Dedicated
Employees Committed to Excellence.

Corporate Mission
As 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

Fleet
Pakistan 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 Analysis
1. 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

11

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
Marketing
Direct Marketing Tools
Personalization
We 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 apply
16

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

17

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
Magazines
PIA 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
20
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

21

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.
22

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
COMPENSATION
PIA 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
24
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.
25

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.
27
Recommendations
1. 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

28

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.
29

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.
30