Overview of the Management Practices of CAA (Civil Aviation Authority, Faisalabad Airport)

Prepared for Imran Akbar Saifi

Principles of Management

Class: BBA (H) Fall 2016

A Study Conducted by

Bilal Rajput f2017001009

Muhammad Mattin Sharif f2017001008

Mohammad Adan Riaz f2017001003

Sara Khan f2017001103

Abdul Rehman f2017001002

University of Management and Technology

Submitted Monday December 11th, 2018.

 Executive Summary

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 airport, and of the organization as a whole.

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

airside of the airport.

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

being held at the airport.

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

activities carried out by the managers at Faisalabad International Airport.

 Introduction of PCAA (Pakistan Civil Aviation Authority)

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

are fully supported by the various Corporate functions of the organization.

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

Organization requirements and standards. To facilitate growth of the infrastructure development

(Airports and Airport Cities) on a fast-track basis. Private sector participation in the process is

also being encouraged.

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.

It exercises such administrative, executive, financial and technical powers as delegated to it by

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

service standards, benchmarked with top performing international airports.

Development of a New Aviation Policy for the country in consultation with the Ministry of

Defense, Planning Commission, World Bank, Airlines, and Aviation Experts.

Investing in Human resource development through structured approach with particular focus on

quality of people and enhancing their professional capability.

Quality work on new initiatives is in progress such as introduction of Enterprise Resource

Planning (ERP), Health, Security, Safety, and Environment (HSSE), Corporate Social

Responsibility (CSR), Ethics Management Program, Customer feedback mechanism at the

airports, Employees performance management system bench marking, outsourcing of non-core

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

(Environmental Management System), and OHSAS 18001:2007 (Occupational Health and

Safety Management System) shall be acquired.

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

achievement of the transformation as envisioned.

 Introduction to Faisalabad International Airport

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

jhumra, khichian,jahangir klan, and lalian.

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

friendship was constructed.

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

more flights and traffic growth for the airport.

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

threats faced by Pakistan Civil Aviation Authority one by one.

Strengths

 Having 13 International Airports certified by International Civil Aviation

Organization.

 Due to strategic importance of geographical location of Pakistan, International Air

Routes use Pakistan’s Air space; hence PCAA role becomes vital in international

flight movement.

 General Engineering Depot (North) is ISO certified.

 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

policies according to ICAO standards and handling Airports / navigational services in

civilian sector of Pakistan. (Monopolistic organization with in the country).

 State of the Art air navigation and Radar system are being used across the country.

 Having 03 modern calibration aircrafts which provide calibration of RADAR,

Navigational Equipment and other Airport Facilities at PCAA airports, Army and

PAF airbases as well as outside the country.

 Having the only aviation services training institute of International standard at

Hyderabad (CATI).

 MIS system has been implemented on almost all the airports.

 Establishment of IT department at HQCAA level and provision of modern computer

equipment at airports.

 Handsome salary for the employees.

 CAA is an organization having Assets of 184 Billion Rupees.

Weaknesses

 Being the only organization of Aviation Industry in Pakistan there is no competition

within the country.

 Highly skilled persons are required in every field but deficiency still exists.

 Lack of manpower as compared to approved establishment.

 Long outstanding dues are to be recovered from PIAC and Shaheens Airlines.

 Airports and other units are still not certified by ISO.

 Unnecessary political interference in internal affairs of PCAA.

 Slow career progression for employees of PCAA.

 Retention of skilled employees is also a problem.

 IT Sections are not still established at most of the airports due to shortage of

infrastructure and relevant manpower.

 Recruitment of employees through internal resources is still not implemented with

true letter and spirit.

Opportunities

 PCAA owns 43 airports, but there are only 03 domestic airlines working in Pakistan

so there is a vast opportunity for growth in aviation sector.

 A number of people want to get their occupation in aviation such as pilots but due to

heavy expenditures this remains a dream, it can be overcome by decreasing in

 expenditure and establishment of more flying clubs / aviation training institutes.

 Pakistan is a thickly populated country therefore a large no of people can be engaged

in aviation industry and un-employment can be reduced by creating jobs in aviation

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

having affiliation with any reputed university of Pakistan.

 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

more revenue to PCAA and foreign exchange to Pakistan.

  PCAA calibration aircrafts can be used in more countries through

advertisement to earn more revenue.

Threats

 Uncertain political and economic environment of the region & globe.

 Tension on international borders with India & Afghanistan.

 Investment of PCAA in aviation sector only.

 Huge cost of building new international airports.

 Devaluation/depreciation of Pakistani currency results increment it debts.

 Lack of collaboration with other developed countries in aviation field due to

distrust in Govt. policies.

 Skilled persons are getting higher salaries & better carrier progression abroad;

so a large number of skilled employees are leaving organization because

PCAAdoes not consider the above mentioned facts.

 Due to war on terror going on in Pakistan and its neighboring countries, many

of the foreign airlines have stopped their operation in Pakistan.

 Managerial Functions of PCAA at Faisalabad Airport

The best way to categorize and segregate managerial functions within an organization is to fully

understand the P-O-L-C management framework of an organization i.e. planning, organizing,

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

realistic goals set out by the top level management.

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

managerial effectiveness by guiding future activities.

Planning as a process typically involves the following steps −

 Selection of goals for the organization.

 Establishment of goals for each of the organization’s sub-units.

 Establishment of programs for achieving goals in a systematic manner.

Types of Planning

 Strategic planning involves analyzing competitive opportunities and threats, as well as

the strengths and weaknesses of the organization. It also involves determining how to

position the organization to compete effectively in their environment.

 Tactical planning is creating the blueprint for the lager strategic plan. These plans are

often short term and are carried out by middle-level managers.

 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

short terms usually less than a year.

PCAA Goals and Vision

"Be a world-class service provider in the aviation industry”

Vision

“Provide safe, secure and efficient best-in-class aviation services to the stakeholders”.
CORE VALUES

 Commitment

 Professional Excellence

 Customer Focus

 Safety and Security

 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.

ANS Future Plans

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

airspace. Some salient points of plans are highlighted below:

 Implementation of Performance Based Navigation (PBN) within Pakistan airspace in

enroute, terminal and approach operations;

 Implementation of seamless ATM operation in accordance with ICAO Asia/Pacific

Regional seamless ATM Plan;

 Designing of airspace / instrument flight procedures for the new mega project of New

Islamabad international airport.

 Re-designing of airspace / enroute ATS route structure to enhance airspace capacity;

 Transition from Aeronautical Information Service (AIS) to Aeronautical Information

Management (AIM) and adoption of Quality Assurance mechanism

 Establishment of new ACC at Islamabad and re-delineation of existing ACC sectors in

Lahore & Karachi FIRs;

 Installation of new EVHF stations to improve VHF coverage and enhance redundancy for

Controller Pilot Direct communication

 Replacement & relocation of old vintage surveillance Primary / secondary Surveillance

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

 Installation / Replacement of Navigation Aids in Pakistan to improve navigational

facilities for enroute and for various airports.

 Implementation of ATS Interfacility Data Communication between Karachi/Lahore

ACCs and adjacent ACCs of neighbouring countries.

Organizing

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 involves the following steps −

 Creating the organizational structure − The framework of the organization is created

within which effort is coordinated allocating human resources to ensure the
accomplishment of objectives. This structure is usually represented by an organizational
chart, which is a graphic representation of the chain of command within an organization.
 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.

Organizing involves the following steps −

 Creating the organizational structure − The framework of the organization is created

within which effort is coordinated allocating human resources to ensure the
accomplishment of objectives. This structure is usually represented by an organizational
chart, which is a graphic representation of the chain of command within an organization.

 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.

Organizational Structure of Faisalabad International Airport

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.

Centralization and Decentralization

Organizational structures also rest somewhere on a spectrum of centralization. Generally, more
conservative corporate entities adopt a centralized structure. In this design, C-level managers
make all the decisions, management designs a plan for execution and front-line employees carry
out that plan. C-level officers are generally those at the uppermost level of the organizational
chart, such as the chief executive officer, chief operating officer and chief marketing officer.
Centralizing authority in a business means that middle management typically is left with little to
no input about the goals the company sets. This system is typical in larger corporate
organizations, as well as at companies in more conservative industries. On the other hand, a
company could adopt a more decentralized approach. A decentralized system allows all levels of
management the opportunity to give input on big-vision goals and objectives. Larger, company-
wide decisions are still generally reserved to C-level officers, but departmental managers enjoy a
greater degree of latitude in how their teams operate.

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.