internship report-pia multan
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INTERNSHIP REPORTON
SUBMITTED BY
IQRA KHANROLL # MB-08-12
MBA-I (3RD Semester)
September 11’2009
TABLE OF CONTENTS
ACKNOWLEDGEMENT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
PIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
INTRODUCTION TO PIA DEPARTMENTS . . . . . . . . . . . . . . . .5
TASKS PREFORMED AT WORK . . . . . . . . . . . . . . . . . . . . . 13
APPLICATION OF CLASSROOM LEARNING IN PIA . . . . . . 17
WHAT I HAVE LEARNT AS AN INTERN? . . . . . . . . . . . . . . . 19
SWOT ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
PEST ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
SUGGESTIONS TO PIA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26
IF I WERE A MANAGER IN PIA? . . . . . . . . . . . . . . . . . . . . . 28
CONTACT INFO OF MY SUPERVISORS . . . . . . . . . . . . . . . .29
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ACKNOWLEDGMENT
To my parents and friends who were always there by my side to guide me and give me the courage that I can do the best in my life and
taught me the difference between the good and the evil, for this be my guide in my life. And to
my teachers who are my soul guardians, for they taught me the very best of their knowledge and
experiences.
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PREFACE
My learning experience with PIA begins with my joining from08-06-09. It consisted of 6 weeks, spending each week in 6
different departments of PIA. My internship report contains all the information about my work experience with PIA, which was
established in 2002 and started its operations in Pakistan.I have covered all my activities performed in the span of 6
weeks in PIA with my learning detail in the organization. The applications of my class room learning as I observed in PIA are
discussed with respect to each department. In the end my internship report is accompanied with the SWOT and PEST analysis of PIA. In the end I conclude with some of my dear suggestions to PIA for its betterment and my actions which I
could have taken IF I were a manager in PIA.
PAKISTAN INTERNATIONAL AIRLINES (PIA)
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Pakistan International Airlines (PIA) was formed in 1955. It is
the flag carrier airline of Pakistan, based in Karachi. It is the
16th largest airline in Asia, operating scheduled services to 73
destinations throughout Asia, the Middle East, Europe and North
America, as well as an extensive domestic network linking 24
destinations.
Its main bases are Jinnah International Airport, Karachi, the
Allama Iqbal International Airport, Lahore and the Islamabad
International Airport, Islamabad/Rawalpindi. The airline also
has secondary bases, including Peshawar International Airport,
Faisalabad International Airport, Quetta International Airport
and Multan International Airport, from which it connects the
metropolitan cities with the main bases, the Middle East and the
Far East. The airline is owned by the Government of Pakistan
(87%) and other shareholders (13%). It has 19,263 employees
(at March 2007).
INTRODUCTION TO DEPARTMENTS
PIA has been divided into the following departments:-
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Human Resource/personnel
Finance
Marketing
Engineering
Flight Operations
Airport Services
Cargo Sales & Services
Information technology
PERSONNEL/HR DEPARTMENT
The entire office procedure revolves around the filing system. In the office terminology, it connotes a device for holding papers for reference. All papers are kept in two categories wise, notes and correspondence comprises all communications received and office copies of out going communications. They are arranged chronologically – those reaching first, kept at the bottom. All communications are assigned reference No. The material collected for the sake of understanding is given in the appendix of correspondence. The whole set is then placed in a large folder with a folio-sized cardboard. This makes a file all files are registered I the file register.
HUMAN RESOURCE MANAGEMENT FUNCTIONS
Promotion/transfer:
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Retirement/pensions:
Leave
o Casual leave
o Privileged leave
o Sick leave
o Disability leave
Passages/free tickets
Training
Benefits and allowances
Salary
o Pay group I-IV :it includes the unionized staff
o Pay group V-IX:includes the officers and middle level management
o Pay group X-above:it includes g.m; and other higher executives
o A special pay group is for the managing director, director and pilots.
Performance appraisal
Employees record
Dummy record is maintained for all employees as well as the out-station by the admin. Dept that are the duplicate of the actual records maintained at the head office. Microfilms of these records are maintained to avoid loss in case of damage or misplacement of the written records.
Discipline / penalties
o Decrease in pay
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o Demotion
o Discharge
o Suspension
o Dismissal
Golden hand shake
Career development
Manpower planning
FINANCE DEPARTMENT
Finance department is one of the biggest departments in the airline,
which is responsible for provision of efficient and effective
accounting/budget. The feasibility of extending financial, administrative,
technical facilities is control by this department. It is also responsible for
internal auditor of PIAC. It has further divisions, which are as under:
Planning and Budget
Funds Management
Accounting
Internal Audit
Revenue Management
All the above divisions are operative in PIA head office islamabad.
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In each station as well in Multan,the finance department is divided into a
number of sections :-
Disbursement section (It deals with the internal finance of PIA
region)
Refund section (It deals with the refund payments)
Agency Sales unit (It deals with the sales finance of all travel
agencies of the region)
MARKETING DEPARTMENT
It looks after development of Marketing Plans & Policies. This
department performs all marketing functions.
Marketing department in Multan station has three divisions
Sales promotion (with the help of travel agents)
Post Flight Analysis (PFA)
Reservation & Ticketing
o Counter T&R
o Airport T&R
o Web-ticketing
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o Through Travel agents
o Home Delivery tickets
o Kiosk Machines
ENGINEERING DEPARTMENT
This department takes care of planning, base/line maintenance and
overhauling of whole of the PIA’s fleet. To keep pace with the new
technology, it has a special branch named as “Development
Engineering” to meet the future challenges in the sphere of avionics.
Following are its further subdivisions:
Planning and Project Division
Quality Assurance Division
Avionics and overhaul Division
Base Maintenance Division
Line Maintenance Division
Development Engineering Division
Power Plant Division
Resource Management Division
FLIGHT OPERATIONS DEPARTMENT
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This department coordinates the training, flight engineering, planning
and scheduling of flight operations. It is responsible for all the activities
of the flight operation in PIA and ensured central control over all flights.
The department has been organized on the following line:
Flight Engineering Division
Standards Division
Central Control Division
Planning & Scheduling Division
Technical Division
Coordination Division
Training Division
AIRPORT SERVICE DEPARTMENT
Customer Services Department has two subdivisions:
a) Passenger Services Division
As the name implies, this division is responsible to provide services to
the passengers as well as aircraft at the airport. This subdivision in
addition to the Passenger Services also possesses Facilitation &
Planning, Technical Ground Support (TGS) and Terminal Services
b) Flight Services Division
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This subdivision provides for provisioning of all in-flight services like
food, cabin crew and field services.
CARGO SALES/SERVICE DEPARTMENT
The cargo sales and service department has the same functionality as of
passenger sales and service. It allows shipment all over the world in PIA
network. Cargo rates vary from country to country. It has the booking of
cargo, loading and unloading, refund etc. However PIA has none of its
planes specialized for cargo only. Six categories of goods in cargo are
Business related goods (textiles, accessories, machines etc)
Perishable goods (meat, fruits and vegetables)
Livestock
Gifts
Valuable goods (gold, platinum etc)
Dangerous goods (tools, drugs, chemicals etc)
INFORMATION TECHNOLOGY DEPARTMENT
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The functionality of It department in regional stations of PIa is restricted to only dealing with the computer and communication related problems in PIA office and at airport. In Multan, IT officers deal with the IT problems of D.G.Khan and Rahim Yar Khan remotely as well. Files are transferred through using FTP among other computers and the main server. Basically at Multan Airport, There is 2 DXX( cross Connect Circuit) Circuits placed at Airport
1. From Lahore Booking office to Multan Airport2. From Multan Booking office to Multan Airport
Multan is connected to Lahore and Lahore is connected to Karachi “SABRE”, a software, is used for Ticketing and Reservation “AVIVA”, a software, is used for cargo purpose
Wireless net: 1. From Airport to I.T Room2. From Airport to Cargo3. From Airport to Engineering4. From Airport to Store
MY TASKS/ACTIVITIES IN PIA
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I joined the prestigious organization PAKISTAN INTERNATIONAL AIRLINES CORPORATION for my internship on June 8, 2009.I was accompanied by 2 other internees. The internship was scheduled for six weeks. The schedule was provided to me on my very first day and i were asked to conduct my activities as per schedule. PIA do not require from internee to work like staff. For internship trainees briefing and observation method is used to train them. The detail of my activities during this program is as follows
WEEK 1(HR DEPARTMENT)
Introduction to the PIA’s HR department I worked on HR software TMS ( Time management system) Function : Online employee record keeping I recorded the approved leave applications in
1) Leave management (casual/sick/privilege Leaves)2) Payroll management (absentees/meal allowance/shift
allowance/over time/lunch guard days)And meal shifts
I worked on the manual attendance registration markinga. Presentsb. Weeks offsc. Days offs.d. OCS (out station service)e. Shiftsf. Leavesg. Absentees
I checked mails and replied to them as directed by my supervisor I mailed a complaint against frequent server errors of TMS I checked & printed mail by DGM HR ( Deputy General
Manager) regarding an internal audit “Excessive Manpower In Multan”
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Made entries in the Dummy employee record files for1) Employee ticket concession (Domestic/International)2) Leave entries for employees in DGK & RYK
WEEK 2(MARKETING DEPARTMENT)
Direct Sales Promotion-I Observed contacting regular individual clients through direct meeting & phone calls and observed contacting business houses where PIA finds the best input
Bank Settlement Plan-I calculated the 35 days average total sales of travel agencies. This amount totals their bank guarantees for IATA.
I made the fortnightly sales report (01-06-09 to 15-06-09) of all travel agencies.
I made the monthly sales report (01-05-09 to 31-05-09) of all travel agencies
Post Flight Analysis-I calculated the percentage, average and variance of per flight and weekly usage of domestic flights from Multan
WEEK 3(FINANCE DEPARTMENT)
I made entries in COSSAP (Corporate Standard Station Accounting Package ) System for refunded tickets 16-31/05/09.
They showed me the annual report of 2006. They taught me the format of their Bank Reconciliation and showed
us BR for June 1-16. They showed me their monthly Trial Balance (Journal Voucher) of
PIA Multan They briefed me about PIA Bank Accounts (Two Types).
1) Impressed/Disbursement Account(122)2) Collection Account (121).
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They briefed me about types of Credit(3 Types)1) Government Credit (APW and TAC) for army, navy
and PAF.2) Commercial Credit3) Forced Credit for Agencies.
WEEK 4(IT DEPARTMENT)
Mr. Imran Afzal briefed me about the I.T operations of the PIA, that how it is connected and how operations are held.
I made computerized document foro Source 53 ( Loans & Disbursement)o Source 55 (amount adjustment/change advice)
I worked on a Computer Named DX 2000MT HP S/n SGH5070147 P/n PG984AV
Installed Softwares (Ms-Office)
WEEK 5(CARGO DEPARTMENT) I was briefed about the cargo procedures Cargo rates Cargo handling procedures Cargo prioritizing Cargo packing (I watched them packaging goods) Cargo carriage
WEEK 6(AIRPORT OPERATIONS)
Station Manager briefed me about departments working in airport Flight Service Department
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Customer Service Department Special Handling Department Technical Ground Service Baggage area Service Airport Security Force
He told us the whole working of airport traffic i.e. boarding, checking, loading, departure, arrival, unloading & load sheet making.
Post Flight Analysis (PFA)-They showed me the PFA report for yesterday’s flight. It includes the no. of passengers traveled, no. of vacant seats & no. of crew.
Baggage area Department- They deal with the loading and unloading of baggage, lost and found section of baggage and load sheet section of baggage weight.
I was allotted a security pass to enter in airport briefing/arrival area. I observed the whole operations being carried out inside the airport arrival area Check-in Boarding Departure lounge Exit (Exit Gate Reader) Also this day I observed the inside operations of airport. I observed
how the load sheet is made within 20 minutes of all passengers’ check-in and flight take off. A person called “Trimmer” makes this sheet to calculate specific gravity for plane take off through weight and balance.
APPLICATION OF CLASSROOM LEARNING IN ORGANIZATION
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I have seen many of my classrooms learning to be applied in PIA. Of course PIA is a typical commercial organization having its hands in all the business administration disciplines i.e. marketing, finance, human resource management, information system, administration, management etc. As I got rotated in all the 6 major departments of PIA, I came to see my concepts to be applied practically there.MARKETING DEPARTMENT:
I observed aggressive market capturing techniques practiced by the travel agents there, who are at the same time competing among themselves for gaining even a single customer.
Similarly I saw the marketing officers there dealing with the ethical and unethical both kinds of tactics adopted my travel agents in their business with PIA.
There are number of possible distribution channels used by PIA viz direct (e-ticketing, counter sales, home delivery) & indirect (travel agents).
And for retaining the loyalty of their frequent buyers, PIA has established “awards plus” system for granting reward points on their flights
FINANCE DEPARTMENT: In finance all the procedures were same as I have read and
exercised in accounting & fiancé. PIA’s annual report is updated on quarterly basis by head office Proper budget is allocated to each PIA station by head office There is daily bank reconciliation of PIA on its accounts which are
of two types i.e. disbursement & collection account. PIA deals with three types of credits
I. Govt. credit for giving concession to govt. employeesII. Commercial credit on credit cards
III. Forced credit for defaulted travel agents’ toppingHUMAN RESOURCE DEPARTMENT:
HR department of PIA completely coincides with the literature of HRM.
PIA is carrying out class-room, on the job, job rotation and simulative training
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However there is sometimes recruiting carried out on non-merit basis
HR evaluation system is very good, few times back they were using annual confidential report method by an appointed senior but now they are using bell curve methodology.
Each and every transaction in PIA is recorded both manually and electronically through their specially developed software systems
INFORMATION TECHNOLOGY DEPARTMENT: This is not a complete department as such in PIA stations. But 2-3
IT officers work in each station IT officers are specified to deal with any type of IT related
problem. They have a very well established network of computer PIA has bought its own anti-virus system and developed
specialized software for each department i.e. SABRE,COSSAP & TMS
CARGO DEPARTMENT: In cargo I have seen highly specialized goods assortment. Careful packaging and carriage of shipment goods There was an air of laziness in cargo department as they were
dealing with non-living objects might be.AIRPORT OPERATIONS:
There was excellent time management on airport which was also the prior demnd of airport operations
Everything was so hast yet perfect and flawless. Any mistake or blunder on airport is just not acceptable and asks for penalty.
There was more of a use of sciences in flight operations. Efficient machines and efficient staff working in harmony to carry out mechanical operations.
WHATS HAS AN INTERNEE LEARNT?
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As an internee PIAC was a great experience for me which not only provided me an opportunity to observe difference between theory and practice. This experience also broadened my vision and confidence.As an internee I spent good time in learning and was rewarded for my best efforts, learnt to deal with different situations, had experience of organization’s working environment which affects an employee performance and attitude towards work, had good time in learning. Confidence, on time decision making, consistency, hard work, team work, seeking success out of dark, innovation, creativity, organizational survival and customer handling techniques are the key learning’s out of my job And I would like to say that it will be one of my best skill that would remain with me and help me in the coming life which offer many challenges. The behavior of a government organization is totally different when it comes to profitability and existence. I learnt the deep-rooted causes of PIA’s financial losses. Its main reason is the government obligations on its flight schedules which are un-profitable for the company and the un-necessary government intervention in its ownership and operations. It seems that whatever PIA is earning it is just sufficient for fulfilling the demands of PIA’s owners. I would like to highlight this, that my experience with PIA was very memorable and full of learning’s, where I found a lot of positive changes in my attitude, learning and behavior
SWOT ANALYSIS
STRENGTHS
Only national airline and the only flag carrier airline of Pakistan
Measurable well defined goals and objectives
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Provided services for Hajj and Umrah People oriented organization Govt. sponsored/protected organization Direct access to the destinations Monopoly in the domestic routes with highest market share in domestic routes Booking Offices in all major cities both at domestic and Int.
Electronic ticketing by web and through SMS
WEAKNESSES
Lack of professionalism
Low level of commitment for the organization
High fares as compared to other airlines
The upper management not belongs to the airline
Sometimes much Govt intervention
Promotion on seniority basis
Weak rewards and appraisal
Less effort in the field of marketing
Poor quality of food/service on board specially in domestic flights
Old aging fleet of PIA causing higher operating cost.
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Over recruitment
OPPORTUNITIES
PIA has potential market in Middle East if PIA upgrades its fleet.
PIA has largest domestic network and by proper route planning PIA
can generate huge amount of Revenue with higher profit.
PTDC provides favorable market for domestic as well as international
sectors for the airline
PIA can generate more revenue by attracting customers through Web
and Mobile Reservations system.
THREATS
Negative rising perception about the country, regarding terrorism.
Political instability and law and order situation.
Rising fuel prices in the world.
Over staffing at all levels
Frequently rising Airlines fare
Fast growing domestic and international competitors
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Effective promotion strategies adopted by other competitors like
Emirates and Shaheen anr Airblue.
PEST ANALYSIS
The macro-environment includes all factors influencing a company that
are not within its control. These include political, social, economic and
technological factors. These are known as PEST factors.
A technique of analysis of the macro environment is PEST analysis.
Environmental analysis should be continuous arid precede all aspects of
planning. Since the airline industry is very much influenced by changes
taking place in the environment and has undergone rapid and dramatic
changes during the last decade, this analysis is especially important for
PIA.
i) POLITICAL FACTORS :
Political factors always have a great
influence on the way businesses operate in the airline industry and the
spending power of customers. In recent years it has been observed that
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government played an active role in increasing competition in the airline
industry. A number of new airlines such as AirBlue and JS Air have
been awarded licenses to enter the domestic market.
Pakistan has achieved some political stability in recent years. If the
management of PIA believes that the present government will perform
well (consistently), then there will be more investment in the form of
purchase of new airplanes and latest technology. The over all industry
will grow resulting in more luxurious and comfortable flights. With the
military takeover government policies have become more liberal.
ii) ECONOMIC FACTORS :
Currently, Airlines industry has three
major players: Pakistan International Airlines, an Airblue, Aero Asia and
Shaheen Airlines. Their target market includes domestic travelers as
well as Pakistanis living abroad particularly in the UK and USA. These
countries have strong economies coupled with high purchasing power.
Customers’ purchase behavior depends very much on prices of the
competing airlines as well as services offered. As inflation rate is
unstable in Pakistan, spending power of consumers has effected in the
long term. In fact growth in Pakistani economy has resulted in an
increase in spending power and has positively impacted the airline
industry.
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Economically, the new millennium has been highly volatile; the
September 11 attacks revolutionized the whole world. Consequently,
there was a global depression in the North America, South America,
Australia and Europe. However, in Asia especially Pakistan the effect in
the short term was otherwise. The economy began to boom because of
greater remittances from abroad and whole sum immigration by
expatriates. As a result, demand for air travel in South Asia rose.
Economic conditions of Pakistan are however improving. PIA has cost a
advantage over its competitors because of its newly acquired, improved,
long distance aircrafts from Boeing’ which give longer range and better
fuel economy than any other jet currently produced. This cost advantage
is a barrier to entry for new firms. However, this cost advantage will not
be significant on domestic routes.
iii) SOCIAL FACTORS :
The social arid cultural influences on
business vary from country to country. The social structure of Pakistan
is closely tied. The trend is now changing as the general public is
educated and is pursuing professional goals. Customers are more aware
of market conditions and available options and want to get best value for
their money.
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They spend considerable time and money on entertainment hence
increasing the need of in-flight entertainment systems. Also, word of
mouth has a significant impact in the use of airline services.
Hajj attracts a huge number of customers. The social environment of
Pakistan is turning liberal with the new regime. The initiative to
automate check-in and ticket booking process might not be very popular
with the general public (even educated population) is still technology
averse.
E-ticketing might also face significant challenges as consumers are
generally reluctant to provide their credit cards information over the
phone and the internet. The consumers, however, have a warm reaction
to the prospect of less costly but quality service flights.
vi) TECHNOLOGICAL FACTORS:
Technology is vital for
competitive advantage and is a major driver of the airlines industry.
Major technological changes are taking place in the airlines industry
with innovations in the reservations and booking systems. In-flight
entertainment systems and auto check in counters are two examples of
such innovations. Internet plays a key role in e-ticketing as consumer
can easily reserve tickets or check the status of the flight.
A key issue will be the extent, to which technological advancements
(such as Internet) impact distribution and cost synergies from industry
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consolidation, can offset upward pressures on costs. PIA has always led
the path of technological innovations by introducing new technologies
ahead of its competitors such as its auto check-in counters which has
helped it gain market share. It was the first airline in Pakistan to install
Sabre system followed by the market leader.
SUGGESTIONS
I would like to give certain suggestions for PIA’s betterment and
profitability.
1. PIA should adopt transparent policy that employees should be
promoted on merit basis. And Chairman of PIA should be appointed
from with in the organization. Union should support it, it will motivate
the employees and PIA to work harder.
2. PIA should adopt good marketing policies so that it will bring
higher profit and maximum utilization of its available resources,
Business sector should be attracted to operate at full potential.
3. PIA should upgrade its fleet as it’s causing the airline higher
operating cost and PIA is incurring loss .PIA should purchase new
Airplane with twin engines these will reduce the operating cost of PIA.
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4. Airline should focus on the customer’s satisfaction, refund process
should be quick so that customer remains loyal to brand.
5. PIA should not induct new employees till the time they are needed
because PIA is suffering from over manpower.
6. PIA should give bonus/promotions to the competent employees as
there is clear cut lack of motivation among its employess.
7. There should be control on the increase of fares, as mediocre are in
majority in Pakistan, and it is highly difficult for to even think about the
air traveling. Management should think over it and at least they can start
a new packaged flight twice a week having 50% fares.
8. Unnecessary facilities provided to the Government Department
should not be discouraged but with drawn as it causes financial losses.
Management should focus on computerized system up gradation and
implementation.
9. Management should hire the services of specialized IT personnel for
their system development and up gradation on time.
10. There should be clear and even distribution of work and only
qualified person should be appointed on jobs.
11. There should be improved service standards and that should focus
on quality.
12. PIA should offer its services of reservation and seat confirmation
with by SMS and flight confirmation message should also be sent via
SMS to the passenger.
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13. PIA should give more incentives to its frequent flyer as it will
generate more brand loyalty by giving better incentives to the customers.
IF YOU WERE MANAGER THERE
If I were a manager in PIA.I would have tried and make many promising changes in the organization, some of them are as follows:-
1. I would first of all bring new and energetic blood to the workforce of PIA.
2. I would have asked financial assistance from institutions and contract with foreign airlines to upgrade existing fleet of PIA, as well as buy new fleet of international standards, this beginning investment would definitely turn into a long-term gain for PIA.
3. I would make the pay scale for the most important staff of PIA i.e. pilots, air hostesses, marketing heads, so much competitive that they won’t drain their skills from PIA by switching to other organizations.
4. I would arrange most efficient training program for PIA representative staff.
5. I would try and uproot the hard-woven practices of a common government organization’s legacy such that absenteeism, free riding, laziness, corruption, family line promotions etc.
CONTACT INFORMATION OF MY SUPERVISORS IN EACH DEPARTMENT
HR Department, Abdali Road, MULTAN.
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Supervisor : Mr. Kaleem SiddiquiSr. Personnel officer
0300-6309629
Marketing Department, Abdali Road, Multan.Supervisor: Mr. Nadeem Sheikh
Sales promotion officer03017506776
Finance Department, Abdali Road,MultanSupervisor:Mr. Firasat Ali Qureshi.
Assistant Manager Finance
IT Department, Pakistan International Airport MultanSupervisor: Mr. Imran Afzal.Computer Network Engineer
Ph 03219422452
Cargo department, Abdali Road Multan.Supervisor: Mohammed Zarif
Senior Cargo OfficerPhone: 9200626, 03013669246
Airport Operations P.I.A Multan AirportSupervisor: Nadeem Murtaza Khan
Station Manager MultanPh: 03327196990
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