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Principles of Management
A Study Conducted by
The following document contains an in depth research of the government owned organization called the
“Pakistan Civil Aviation Authority” also called PCAA and its operations and management including all
structures within this organization. Pakistan Civil Aviation Authority is a Public sector autonomous
body working under the Federal Government of Pakistan through the Ministry of Defense. It was
established on 7th December, 1982 as an autonomous body. Prior to its creation, a Civil Aviation
Department in the Ministry of Defense used to manage the civil aviation related activities. After
intensive preparation and thorough study of management principles in our course, we have firstly
selected the PCAA management staff at Faisalabad International Airport, and carried out interviews
with the top management level personnel as well as non-managerial employees and successfully
covered all aspects of our research on the organizations structures, and obviously, the day-to-day
management practices as well as long term and short term management/planning to achieve the goals of
The document contains a detailed SWOT analysis of Faisalabad International Airport after a thorough
internal and external examination where we determined all possible strength, weaknesses, opportunities
and threats to the respective airport and hence, the PCAA organization as a whole. We conducted
interviews with different personnel to help us with our queries regarding their management strategies
fundamentally focusing on the 4 basic principles and their natures within the airport management and
PCAA i.e. namely planning, organizing, leading and controlling all operations on the landside and
As detailed further in the document, we have also provided our communications with the management
of the airport describing their planning strategies to meet this goals and reverse engineer those questions
to the core of what their vision is and how the goals were formed primarily through Pakistan Civil
Aviation Authority’s top level management. We also learnt their methodology of leadership within the
organization and how top level managers at the airport continue to motivate the workers in the airport’s
workspace to generate the results and obtain short term and long term goals.
Another fundamental part of this report consists on the organizational structure set up by the Pakistan
Civil Aviation Authority in Faisalabad International Airport that is carefully planned and erected to
perform its functions later described in detail. The organizational structure analysis will cover all
departments that are operating within the airport to carry out their tasks and with the help of research
and intensive interview questions, we have also defined the decision making strategies along with the
hierarchal chain of command within the airport. Our study on the organizational structure includes, as
always part of organizational structures, the work specialization of the work force from non-managerial
employees to top level managers, the departmentalization of the work activities at both landside and
airside of the airport, as mentioned before the chain of command in the hierarchy, the span of control of
the managers in the workplace, decision making which is referred to as centralization discussed further,
and lastly as part of the structure of any organization, the formalization of work tasks of the operation
Overall, this research intensive document caters to PCAA as a whole and its operations specifically at
Faisalabad International Airport and deals with all operations and functions significantly linked with the
role of the management and the principles used to complete their goals, both short term and long term,
also linked with the leadership roles of the top level management, the structure of the whole
organization, and lastly but most important, how the planning, leading, organizing and controlling
Pakistan Civil Aviation Authority is a Public sector autonomous body working under the
Federal Government of Pakistan through the Ministry of Defense. It was established on 7th
December, 1982 as an autonomous body. Prior to its creation, a Civil Aviation Department in
the Ministry of Defense used to manage the civil aviation related activities.
The day of 7th December has significance, as it coincides with the date of creation of
International Civil Aviation Organization (ICAO) in 1944 as a result of the famous Chicago
Convention. Incidentally, the United Nations have declared 7th December as the International
Civil Aviation day and celebrated as such every year all over the World.
All kinds of Civil Aviation related activities are performed by CAA including the regulatory, air
traffic services, airport management, infrastructure and commercial development at the airports,
etc.
CAA not only plays the role of the aviation regulator of the country but at the same time
performs the service provider functions of Air Navigation Services and Airport Services. The
core functions of CAA are therefore, ‘Regulatory’, ‘Air Navigation Services’ and ‘Airport
Services’. These core functions are fully supported by various corporate functions of the
organization.
Recently, Civil Aviation Authority underwent Restructuring and Change Management process
to meet the present and future challenges. This organizational transformation process identified
Structure, Culture, Skills, and Rewards as four tracks on which simultaneous emphasis is being
laid. The Vision, Mission, and Core Values have been identified. Wide-angle buy-in process by
CAA senior management with staff and lower levels for bridging communication gaps between
different hierarchical levels of the organization has been taken. As a result of the Restructuring
process, the fundamental organization structure has been balanced to focus on three core areas
namely Regulatory, Air Navigations Services, and Airport Services. These Core / Line functions
The restructuring process has helped Pakistan Civil Aviation Authority to fully focus on
Strengthening its safety and security oversight role as per International Civil Aviation
(Airports and Airport Cities) on a fast-track basis. Private sector participation in the process is
The general direction and administration of CAA and its affairs vest in CAA Board which
exercises all powers, performs all functions and does all acts and things that need to be
exercised, performed or done by the Authority. The Chairman CAA Board is the Secretary of
the Division to which the affairs of the Authority are allocated. Presently, it is the Secretary
Aviation. CAA Executive Committee is the highest decision making body of the Organization.
the Authority. DGCAA is the Chairman of CAA Executive Committee. The Federal
Government appoints the Director General who is the Executive head of CAA and exercises
such powers and performs such functions as may be specified in CAA ordinance or delegated to
him by the CAA Board from time to time. The CAA Board is assisted by CAA HR Committee
and CAA Audit Committee. CAA Quality Council headed by DGCAA and comprising of Dy.
DGCAA, all Principal Directors and Directors sets the macro level objectives and tasks/targets
of the organization and oversees the organizational drive in pursuit of its vision and mission,
adherence to the core values and CAA’s Endeavour to achieve the International Management
System Standards.
PCAA has Enhanced Regulatory and air space management capabilities. Moreover, emphasis is
being laid on commercialization of its assets and land with improved customer / passenger
Development of a New Aviation Policy for the country in consultation with the Ministry of
Investing in Human resource development through structured approach with particular focus on
Planning (ERP), Health, Security, Safety, and Environment (HSSE), Corporate Social
and wasteful activities, etc. Recently, we have embarked upon a challenging phased program to
acquire international standards of Integrated Management System (IMS) in CAA during which
the international standards of ISO 9001:2000 (Quality Management System), ISO 14001:2004
Pakistan Civil Aviation Authority would continue to ensure distinct separation of regulatory
functions from the service provider functions, strengthen all the three core functions and
achieve, comply and exceed the requirements/standards set by ICAO and International
Management System Standards through continued focus on the change process to enable
Faisalabad international airport (iata: lyp, icao: opfa) is situated on jhang road, 10 kilometers (6.2 mi)
away from the city centre of faisalabad, in the punjab province of pakistan. It is not as large as the other
airports in pakistan, as it operates to cater mainly to the population of faisalabad, jaranwala, jhang,
chiniot, gojra, dijkot, khurrianwala, sangla hill, toba tek singh, rabwah, sargodha, bhawana, chak
The airport traces into origins not too far into the past. The founder of the city decided that faisalabad
had a strategic position within the british empire. In 1942, the local government gave permission for the
construction of a bricked strip measuring 5000' by 100'. Various regional aircraft used the strip for a
short time however as technology progressed the airstrip became quite out-dated. The national flag
carrier, pakistan international airlines began domestic operations in 1958 operating various flights from
karachi to expand on exports and imports from the city. It was not until 1965, the bricked airstrip was
re-built to meet standards at that time. The surface was built using bitumen and the length of the runway
increased to 9000' by 100' to allow the airport to handle larger jet fuelled aircraft. During 1966–1967
the construction of an airport terminal and an apron to handle prop aircraft such as the fokker f-27
In 1972 a new parallel runway with dimensions 9000 feet by 100 feet was constructed west of the
existing runway, since the existing runway had deteriorated quite significantly. The new runway was
designed to handle even larger aircraft such as the boeing 737. In 1974 a jet apron, taxiway-b, air traffic
control building and met offices were constructed. A premium lounge and ils were installed in 1985. In
1986 the terminal building was extended to accommodate greater number of passengers and meet future
growth in air travel for the city. In 1991, the old runway was widened, strengthened and extended
reaching dimensions of 9270' by 150' with surface bitumen to accommodate airbus aircraft such as
airbus 310s. In 1993, cip lounge was constructed and terminal building was extended to accommodate
greater travel growth. In 1998, direct hajj operations were started from the airport annually, allowing
Due to more flights and greater estimates of passenger growth of the airport. Faisalabad international
airport is expected to be re-developed to meet the to meet the growth patterns for the next decade
SWOT Analysis of PCAA
SWOT Analysis means strengths, weaknesses, opportunities and threats. Strengths &
weaknesses are internal within the organization while opportunities and threats are inserted
by the external environment. Now we will discuss strengths, weaknesses, opportunities and
Strengths
Organization.
Routes use Pakistan’s Air space; hence PCAA role becomes vital in international
flight movement.
One of the very rare profitable and well-reputed semi Govt. organizations of Pakistan.
Plays a vital role during any calamity situation or war with any country.
The only organization in Aviation industry which regulates and implements aviation
State of the Art air navigation and Radar system are being used across the country.
Navigational Equipment and other Airport Facilities at PCAA airports, Army and
Hyderabad (CATI).
equipment at airports.
Highly skilled persons are required in every field but deficiency still exists.
Long outstanding dues are to be recovered from PIAC and Shaheens Airlines.
IT Sections are not still established at most of the airports due to shortage of
Opportunities
PCAA owns 43 airports, but there are only 03 domestic airlines working in Pakistan
A number of people want to get their occupation in aviation such as pilots but due to
industry.
Pakistan Civil Aviation Authority training institute (CATI) having state of the art and
modern training facilities can be utilized to earn more revenue and highly qualified
human resources.
CATI can also be utilized by developing more courses for private sector and by
CATI can attract more foreigners for training purpose by putting a little effort for
advertising CATI as a world class aviation services training institute, this will bring
Threats
Skilled persons are getting higher salaries & better carrier progression abroad;
Due to war on terror going on in Pakistan and its neighboring countries, many
The best way to categorize and segregate managerial functions within an organization is to fully
leading and controlling. Managers of Pakistan Civil Aviation Authority have primary challenge
to solve problems creatively. While drawing from a variety of academic disciplines, and to help
managers respond to the challenge of creative problem solving, principles of management have
long been categorized into the four major functions of planning, organizing, leading, and
controlling. The four functions, summarized in the P-O-L-C figure, are actually highly integrated
when carried out in the day-to-day realities of running an organization such as the PCAA. These
are the main functions that are required to be thoroughly understood by all managers, even in
PCAA, to carry out all management functions effectively and efficiently to meet whatever
Planning
Planning is the first and the most important function of management that involves setting
objectives and determining a course of action for achieving those objectives. Planners are
essentially the managers who are best aware of environmental conditions facing their
organization and are able to effectively analyze and predict future conditions. It also requires
that managers should be good decision makers since the aviation field re quires constant
adaptability to changes in competition and the rapid growth rate of the industry demands so.
Planning involves selecting missions and objectives and the actions to achieve them, it requires
decision making, i.e. choosing future courses of action from among alternatives.
Planning means determining what the organization’s position and situation should be at some
time in the future and deciding how best to bring about that situation. It helps maintain
Types of Planning
the strengths and weaknesses of the organization. It also involves determining how to
Tactical planning is creating the blueprint for the lager strategic plan. These plans are
Operational planning generally covers the entire organization’s goals and objectives and
put into practice the ways and action steps to achieve the strategic plans. They are very
Vision
“Provide safe, secure and efficient best-in-class aviation services to the stakeholders”.
CORE VALUES
Commitment
Professional Excellence
Customer Focus
Integrity
The planning department of PCAA involving top level managers and planners apply tactical and
strategic planning techniques as discussed in interviews and through thorough research. The use
of tactical planning is of utmost importance to gain edge over competitors. Such type of planning
is seen active in the Air Navigation Services Department (ANS) where strategic planning is the
core essence of growth. The ANS department has first set forth plans for the future that they have
to obtain and hence work their way up from that goal and set up their organization, lead
throughout the operations and control all work activities in a manner to obtain the original goals
they set for themselves, henceforth applying the principles of management and using the P-O-L-
C framework.
Pakistan CAA is striving to keep the pace of global development in the aviation sector. All
efforts are being made to improve infrastructure and facilities available so that the best aviation
services with utilization of all technological advancement can be rendered within Pakistan
Designing of airspace / instrument flight procedures for the new mega project of New
Installation of new EVHF stations to improve VHF coverage and enhance redundancy for
Radar sensors;
Acquisition of ADS-B stations for surveillance to cover grey areas and redundancy;
Induction / training of Air Traffic Controllers to meet the future challenges and
requirements
Once a manager has created a work plan, the next phase in management cycle is to organize the
people and other resources necessary to carry out the plan. Organizing should also consider the
resources and physical facilities available, in order to maximize returns with minimum
expenditure.
Once a manager has created a work plan, the next phase in management cycle is to organize the
people and other resources necessary to carry out the plan. Organizing should also consider the
resources and physical facilities available, in order to maximize returns with minimum
expenditure.
Organizing may be referred to as the process of arranging and distributing the planned work,
authority and resources among an organization’s members, so they can achieve the
organization’s goals.
Organizing at the level of a particular job involves how best to design individual jobs so as to
most effectively utilize human resources. Traditionally, job design was based on principles of
division of labor and specialization, which assumed that the more narrow the job content, the
more proficient the individual performing the job could become.
Making organizational design decisions − Decisions are made about the structure of an
organization.
Making job design decisions − Roles and responsibilities of individual jobs, and the
process of carrying out the duties is defined.
Organizing at the level of a particular job involves how best to design individual jobs so as to
most effectively utilize human resources. Traditionally, job design was based on principles of
division of labor and specialization, which assumed that the more narrow the job content, the
more proficient the individual performing the job could become.
O-1/C
O-1/C O-1/C O-1/C Communication
Management
Pakistan Civil Aviation Organizational Structure
Span of Control of Airport Manager at Faisalabad International Airport
Organizational Structure of PCAA at Faisalabad International Airport
A strategic, carefully planned organizational structure helps a business run effectively and
efficiently. An ineffective structure can cause significant problems for a company, including lost
profits, rapid employee turnover and loss in productivity. Management experts use the six basic
elements of organizational structure to devise the right plan for a specific company. These
elements are: departmentalization, chain of command, span of control, centralization or
decentralization, work specialization and the degree of formalization. Each of these elements
affects how workers engage with each other, management and their jobs in order to achieve the
employer’s goals.
Departmentalization
Departmentalization refers to how the organizational structure groups the company's functions,
offices and teams. Those individual groups are typically referred to as departments. Departments
are usually sorted on the basis of the kinds of tasks the workers in each department perform, but
this is not the only way to create a company’s departmental breakdown. You could also divide
the business into groups based on product or brand lines, geographic locations or even customer
needs.
Chain of Command
Most organizations, from businesses to nonprofits to the military, utilize a chain of command.
This helps eliminate inefficiencies by having each employee report to a single manager, instead
of to several bosses. In the corporate context, this type of chain of command is reflected in the
organizational structure and affects job descriptions as well as office hierarchies. Managers
assign tasks, communicate expectations and deadlines to employees, and provide motivation on a
one-to-many basis.
When employees encounter obstacles or problems, they report back to the appropriate manager.
When necessary, the manager is then responsible for taking the concern or issue up the chain of
command to the next level, and so forth. This chain of authority or command streamlines
corporate operations and communications for a more efficient and productive business.
Span of Control
An organization’s span of control defines how many employees each manager is responsible for
within the company. There is no single type of span of control that’s ideal for all companies or
even for all businesses in a specific industry. The optimal span will depend on a number of
factors, including the size of the workforce, how the company is divided into departments and
even the company’s specific business goals and strategies.
Other factors to consider are the type of manager assigned to each specific department and the
job descriptions of the employees reporting to that manager. Based on the manager’s individual
style or approach, the span of control could range from three or four to 15 or more. Of course,
managers who are placed higher up the chain of command typically have a tighter span of
control, as they are directly responsible for middle-manager or team leaders.
Work Specialization
In any business, employees at all levels typically are given a description of their duties and the
expectations that come with their positions. In larger companies, job descriptions are generally
formally adopted in writing. This approach helps ensure that the company’s specific workforce
needs are met, without any unnecessary duplication of effort. Work specialization ensures that all
employees have specific duties that they are expected to perform based on each employee's work
experience, education and skills. This prevents an expectation that employees will perform tasks
for which they have no previous experience or training and to keep them from performing
beneath their capacities.
Formalization
Finally, organizational structures implement some degree of formalization. This element outlines
interorganizational relationships. Formalization is the element that determines the company’s
procedures, rules and guidelines as adopted by management. Formalization also determines
company culture aspects, such as whether employees have to sign in and out upon arriving and
exiting the office, how many breaks workers can take and how long those breaks can be, how
and when employees can use company computers and how workers at all levels are expected to
dress for work.