Pakistan international airlines


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This is a report made by me for my principles of management course.

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  • Theorganisation I have chosen for my management project is our national carrier, PIA… In my presentation, I will only talk about the organizational structure and Human Resource Management in PIA
  • To kick off, ill start by sharing a quote of .. We can have an idea of the potential our national carrier has and how can it be made a more efficient business with a good management.
  • Here are some facts which are important for us to know to start off on the right track for problem-solving approach
  • We have gone through the case studies of low-cost airliners like southwest and ryanair, the first question which came in my mind that why cant pia do the same thing.. And I got the answer that PIA has positioned itself as a premium airline and it does not compromise on the costs related to its exclusiveness.. World over, PIA has offices in the most posh areas of the city.. PIA always books the most expensive and premium berth on the airport where the airplane is visible to the incoming planes and its tail can be seen from the runway.. PIA offers the best food and takes inflight services very critically.. Low cost carriers don’t incurr these costs.
  • Moving on, here are the core problems
  • In my presentation I will only take up on these three problems
  • Pakistan international airlines

    1. 1. Pakistan International Airlines<br />Observations and recommendations regarding the Organizational structure and Human Resource Management<br />
    2. 2. CEO Ryanair<br />“PIA is one airline I would really want to head up as a challenge” – Michael O Leary<br />
    3. 3. Facts<br />PIA was formed through an ACT of Parliament - PIA’s Act.<br />PIA is a corporation, governed by Board of directors. <br />Any decision related to privatization of PIA would need a 2/3rd Majority of the Parliament.<br />Only through acquiring outsourced services of limited services/functions it can bring better management practices vis a vis privatization. <br />for this too it needs agreement form the board of directors as it is a major policy decision<br />Every year MD PIA submits a Business Plan for the next period to the Board of Directors, which contains policy decisions and financial analysis of performance.<br />
    4. 4. Positioning<br />PIA prides itself as a premium air carrier.<br />No compromise on<br />Offices<br />VIP Berths<br />Food<br />Inflight seravices<br />Low cost carriers are different in all these aspects.<br />
    5. 5. Core Problems<br />A tall structure<br />Bargaining power of employee unions<br />Extra staff<br />Demotivated employees<br />Operational Inefficiencies<br />Political Interests<br />
    6. 6. Core Problems<br />A tall structure<br />Bargaining power of employee unions<br />Extra staff<br />Demotivated employees<br />Operational Inefficiencies<br />Political Interests<br />
    7. 7. Revision No. 04/2010 <br />CORPORATE ORGANOGRAM<br />Annexure – I to <br />Org. Order No. 18/ 2010 <br />CHAIRMAN<br />MANAGING <br />DIRECTOR <br />CHIEF <br />INTERNAL<br />AUDITOR<br />G.M .<br />CORP. SAFETY <br />& Q.A.<br />SA TO<br />MANAGING <br />DIRECTOR<br />CHIEF ENGR.<br />QUALITY <br />ASSURANCE<br />SR. G.M.<br />COORDINATION<br />OPS<br />G.M <br />PAX HANDLING <br />SERVICES<br />G.M. <br />PUBLIC <br />AFFAIRS<br />SECRETARY<br />PIAC <br />DEPUTY MANAGING<br />DIRECTOR<br />DIRECTOR<br />INFO. TECH.<br />DIRECTOR<br />HRA & C<br />DIRECTOR<br />MARKETING<br />DIRECTOR<br />P&L<br />CHIEF <br />FINANCIAL <br />OFFICER<br />DIRECTOR <br />CORP.<br />PLANNING<br />G.M.<br />FOOD SERVICES<br />DIRECTOR<br />FLT. OPS.<br />DIRECTOR<br />LINE MAINT.<br />DIRECTOR<br />Precion ENGG.<br />DIRECTOR<br />TRAINING &<br />DEVELOPMENT<br />DIRECTOR <br />FINANCE <br />MRO Cross <br />Functional Team<br />G.M.<br />ORG. DEV.<br />G M.<br />PRE-ENGG.<br />G.M.<br />(TECH.) OPS.<br />G.M<br />REVENUE <br />MANAGEMENT<br />G.M.<br />COMPUTER<br />OPERATIONS<br />G M.<br />LOGISTICS<br />SR. GM <br />TRAINING &<br />DEVELOPMENT<br />G.M<br />ACCOUNTING<br />G.M.<br />STANDARDS &<br />INSPECTION<br />G.M.<br />S.I.T.E.<br /> GM<br />NETWORK<br />PLANNING<br />G.M.<br />PROCUREMENT<br />G.M.<br />COMMUNI-<br />CATIONS<br />G.M. HR<br />MANAGEMENT<br />G.M.<br />REV. ACCTG.<br />CE<br />Line <br />Maintenance<br />CE<br />Base <br />Maintenance<br />CE <br />Engine <br />Overhaul<br />G.M. <br />CREW PLNG. &<br />SCHED.<br />.<br />GM<br />MARKETING <br />PLANNING<br />CHIEF MEDICAL <br />OFFICER<br />G.M.<br />FUNDS MGMT.<br />G.M.<br />NW & MSS<br />G.M.<br />CREW TRAINING<br />CE<br />Avionics <br />Overhaul<br />CE <br />Aerospace<br />Overhaul<br />G.M.<br />BUDGET & FM<br />G.M. <br />WORKS & <br />PROJECTS<br />G..M.<br /> PAX SALES<br />G.M.<br />NORTH (OPS)<br />G.M.<br />FUEL CTRL. & <br />FIN SYS<br />G.M.<br />LEGAL<br />G.M.<br />INDUSTRY<br /> AFFAIRS<br />CE <br />Engg<br />Business Dev.<br />CE<br />HR Training<br />G.M.<br />INDUSTRIAL <br />RELATIONS<br />G.M.<br />CARGO<br />& SPEEDEX<br />CE <br />Airworthiness <br />Management<br />CE <br />Maint Ops <br />Center<br />
    8. 8. Observations<br />1st observation: key operational departments are not directly reporting to the MD for e.g.. engineering, flight ops, precision engineering<br />2nd observation: Corporate QA and Engineering QA are independent of each other. both should b merged as one department.<br />3rd observation: passenger services division should be part of marketing dept.<br />4th Observation. Planning is a function of respective departments, there is not need to have a separate department for it.<br />5th Observation: Departments have different divisions (GM) and each division has different sections (DGM); As per our book, a division has departments.<br />6th Observation: In PIA functional decision making is with respective GMs, while policy decision making is with MD–resulting in delays sometimes.<br />
    9. 9. Observations<br />Operational Personnel in Management<br />MD – Operating Pilot<br />GM Flight Operations – Operating Pilot<br />GM Crew Training – Operating Pilot<br />GM Ops Tech. – Operating Pilot<br />GM CS & QA – Operating Pilot<br />GM Central Control – Operating Pilot<br />GMs Equipment (Operating Pilots)<br />(They are perfect & experienced Pilots but lack management skills and are not available, specially when PALPA announces a strike) – Disturbs the managerial continuity.<br />
    10. 10. PIA- 427 employees per aircraft<br />
    11. 11. Futher Observations -demotivation<br />Pay Scale<br />Govt. Announcements of Annual Pay Increase of Govt. Employees is not followed.<br />No time bound policy on holding Promotion Boards on regular basis.<br /> Difference in Pay Scale of Regular and Contractual Employees.<br />Appointments: Regular, Contractual, Outsourced Services<br />Political Influence – External Appointments <br />Daily Wages Employees (4000) are hired through sub-contractor and later get regularized through President Order. (Daily wages category ranges from PG-1 to PG-9 or equivalent) = Backdoor<br />Contractual Employees are offered Regularization at the cost of 50-60% net pay reduction.<br />
    12. 12. Further observations<br />Work Environment/Org. Culture<br />Due to unions/association the work environment is not professional (banners, pressure groups, other activities). <br />Bias<br />Uneven provisioning of resources -some departments have all facilities some have none.<br />
    13. 13. MD<br />Horizontal Matrix Hiearchy<br />Proposed Organogram<br />Secretary PIA<br />Special Assistant to MD<br />Chief Internal Auditor<br />Director Safety & QA Compliance<br />DMD<br />
    14. 14. Advantage<br />New Proposed<br />Directors - 8 <br />GMs – 6<br />DGMs -29<br />DCE-9<br />Existing<br />Directors – 11<br />GMs – 35<br />-<br />CE - 9<br />
    15. 15. THANK YOU <br />