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Pakistan international airlines


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

Published in: Business, Technology
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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 />