Assignment making a strategy for change management. As

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Question No:-01

Answer:-

The following
factors contributed towards failure of change plan in PIA (Pakistan
International Airline).

1.     
Political
Instability And Changing World:-

After 9/11
attacks, lots of pressure flowed towards developing especially Islamic
countries of the world and top of the list was Pakistan. From the day Pakistan
came in to being only one Government completed its period of Governance,
otherwise sometimes it was in the hands of Army or an instable government, who
somehow let Pakistan go in instable position. Due to unstable condition of
politics foreign policy remains weak. Which is a factor PIA had to close it
many routes due to 9/11 attacks and world’s economic and security plans. It is
role of Government to fetch back the business PIA lost due to security reasons
and stopped operating on many destinations. So it’s a main factor of change
implementation failure in PIA. Strikes, wheel jams and other agitations against
operating government in all eras also affected airline business in Pakistan. After
the 9/11 attacks air traffic has been decreased all over the world. It has affected
Pakistan international Airlines also. Passengers are more inclined towards
traveling to other countries such as European countries. Air traffic in Asia,
especially in south Asia has decreased and therefore this was also considered
as one of the reasons of bad performance of PIA by 32% of respondents reported
in her article by (Nawaz, N. et al). PIA staff isn’t trained according to
international standard because of the poor planning regarding training
programs.

 

2.     
Improper Or Poor
Planning Setup:-

It
is notable that often leaders are focused on getting content’s solution as they
see it instead of focusing on the real part planning or making a strategy for
change management. As far as PIA case is concerned, the whole effort of change
management plan went in to a bad dream due to improper planning. The efforts
and cost went wasted. Usually the plan set up is for a decade more in
developing countries as well as developed countries but in Pakistan it only
lost for a period of maximum 5 years because as soon as the ruling party leaves
their chair, next party changes the plan which suits them and implement it
without reviewing the previous plans which was implemented, which leads to lots
of wastage of resources in planning and research to make changes in management.
In this scenario the change management plan can’t bring desired results. PIA
lost lots of its resources in this manner. Another part is not a proper focus
on the business and change implementation constraints like neglected like
structural inertia, organizational type and environment.

 

3.     
Top Management:-

Another
leading factor of failure of change management implementation in PIA is top
management, as research over the past 20 years has yielded substantial
evidence, that top management team (TMT) characteristics affect organizational
outcomes (e.g., Bantel and Jackson 1989). The current management of PIA is
neither having background of aviation nor have eagerness in learning about the
aviation and change management implementation. Researches show Top Management
Team plays a vital role in the uplift of the organization. Top management is
ineffective in resolving the plans and issues causing lots of damage to PIA.
Sometimes even if they have a good plan but doesn’t benefit them is not being
implemented.

4.     
Internal
Politics in PIA:-

Internal
politics of PIA is very strong. Current and previous Governments which tried to
implement change management plan faced lots of troubles like shutter down of
offices in different cities and even threats to stop operations from the
employees of PIA. By Dawn E-Newspaper reported by Bhagwandas and Mohammad
Asghar October, 2nd 2016, PIA employees called off a strike against
decision of Government for the privatization of PIA to bring its prestige back.
This shows very close ties among employees and negative influence of internal
politics in PIA. PIA employees are getting free tickets from the organization
and special discounts are availed for the relatives shows their negative
influence on organization. An action against that act was taken and the
organization faced strike as well.

5.     
Political /
Interest Group Influence:-

It
is also a constraint in implementing change management plan, as top management
is influenced by the politicians and other people who have good connections
with politicians, are affecting the implementation of change management plan.
Even good plans are sometimes put aside as it can change the fate of PIA and
that specific plan could be a reason to damage to other airlines operating in
Pakistan. The competitors are actually the pressure or internet ground. Another
major reason is unavoidable political influence by the people used to take
unnecessary advantage of the organization and usually become the part of
obstacles for the process of change implementation.

6.     
Influence On
Recruitment:-

A
factor which leads to deficit of PIA is unnecessary job creation. It can be
observed from the history that recruitment in the public sector is always
effected by politicians. It can also be observed that with every change in
Government there is a job creation in PIA, which led to increase in non-serious
and non-technical staff. Close relatives, members from family and friends were
employed without proper screening and observing merit in recruitment. Many
cases of illiterate people heading departments were the headlines of the
newspapers and TV channels.

7.     
Employees
Surplus:-

Comparing
with other international public, private and domestic airlines, one thing is for
sure; none of them have employees as many as PIA has. Surplus in employees
leads to burden on finance, which indeed made change management go useless to
uplift the organization.

8.     
Aged / Not
Properly Maintained Fleets & Old Fashioned Staff:-

Nothing changes
in a night, change implementation is a gradual process, structure and technical
part must have an alignment with leadership and plan implementation. Pakistan
International Airlines has total 43 planes. Out of those only 70 % are operational
at the moment. The average age (international standard) of the fleet is 13
years which has become 13 years with the induction of 4 new planes, previously
it was14. Improper maintenance results in more consumption of fuel which adds
cost in operations. Another factor which increases operational cost is, the
aged fleet and maintenance problem PIA has to pay higher amount in terms of insurance
cost. Incidents of plane crash due to improper maintenance led to less interest
of passenger using PIA. It is also notable, during competitive environment an
organization must learn the trends, code of action and set of ethical behavior
towards their customers is a must, so that they come back again to avail the
services of PIA. There is lot of recognition in the researched literature that
the service quality has proven significance in the attainment and maintenance
of market share and return on investment goals for an organization (Chen, 2008;
Anderson & Zeithaml 1984; Phillips, chang & Buzzell, 1983). PIA
crew must follow the trends set by leading organizations or competitors. Air
Blue, Turkish Air, Air Malaysia & Emirates are providing better services
especially during flight services. As for as PIA staff is concerned it is
observable that their behavior is unethical sometimes which leads to customer’s
dissatisfaction.

 

9.     
Corruption:-

 

Corruption
is a sin; it has been called the major reason of failure of change
implementation plan. Whatever management has done to cover the losses, nothing
can work in proper format until the eradication of corruption is done. It has
hollowed our country. A resource say there’s 200 million rupees corruption in
Pakistan each day. According to a survey 67% of respondents agreed that this is
the case of losses faced by Pakistan International Airlines. Shleifer and Vishny 19931 argued that
countries with weak (and, therefore, unstable) governments will experience a very
deleterious type of corruption, in which an entrepreneur may have to bribe several
public officials and still face the possibility that none of them really have the
power to allow the project to proceed. Partners of PIA, private organizations
bribe officials to take advantage of this organization.

10.  Employees on Strike:-

A conceptual
failure model was presented by Ooghe and Waeyaert in 2004 expounding the causes
of failure and mutual relations between the general and immediate environment
of the company as external causes, and the company’s management and policy as
internal causes of failure (Ooghe and De Prijcker, 2008). Every now and then
there’s a strike in PIA, even Hajj operations were stopped for some days. All
this leads to customer dissatisfaction hence empty planes are landing on
destinations some time.

 

Question No:-2

Answer:-

1.     
Political
Instability And Changing World:-

Go with the
flow, PIA needs to change its plans with the changing world as there’s no
corner left in the world which didn’t revolutionized in last 30 years. PIA
needs efficient business developers, to seek out the new destinations instead
of depending on Government being an organization as deregulation policies are
being implemented in PIA. Policies should be changed regarding new airports to
be constructed far from the crowded areas so strikes and wheel jam due to
instability in Government doesn’t affect passengers. Training programs need
focus as well.

 

2.     
Proper &
Setup:-

Proper
planning and set means changes in both structure and employees capabilities.
There’s lot of space for constructing new airports, new offices for ticketing
and information desks in all cities of Pakistan. Employees in operation should
be properly trained to make airline operate efficiently. Plans should be made
for long period of time to stop wastage of resources on just planning and
research and put them aside as soon as the Government changes. For planning PIA
should hire people from successful airline, who are experienced so the fate of
the organization can be change keeping in mind important factors, which are
neglected like structural inertia, organizational type and environment.

 

3.     
Top Management:-

Top
management must have background from aviation and a complete knowledge to
execute the change management process. Top management with no real knowledge of
change management will create hazards for the organization. He must not be
influenced by any politician or pressure group. Without edict or design,
executives who are ill suited to the new environment will tend to depart,
either because of discomfort or outright failure; they will tend to be replaced
with executives who are attracted to, and whose skills fit, the new conditions
(Grimm and Smith 1991, Finkelstein and Hambrick 1996).

4.     
Internal
Politics in PIA:-

Internal
politics are unavoidable, where there are people there is politics. Current and
previous Governments which tried to implement change management plan faced lots
of troubles especially weapon they chosen was to go on strike. By Dawn
E-Newspaper reported by Bhagwandas and Mohammad Asghar October, 2nd 2016, PIA
employees called off a strike against decision of Government for the
privatization of PIA to bring its prestige back. This shows very close ties
among employees and negative influence of internal politics in PIA.

5.     
Political /
Interest Group Influence:-

It
is also a constraint in implementing change management plan, as top management
is influenced by the politicians and other people who have good connections
with politicians, are affecting the implementation of change management plan.
Even good plans are sometimes put aside as it can change the fate of PIA, but
could be a reason to damage other airlines operating in Pakistan, it can be
understood as political influence of the competitive (interest group) airlines
working in Pakistan. Another major reason is unavoidable political influence by
the people used to take unnecessary advantage of the organization and usually
become the part of obstacles for the process of change implementation.

6.     
Influence On
Recruitment:-

Observing
deregulation, strict recruitment policy like PPSC, FPSC should be followed.
From decades there two recruitment organizations showed spectacular
performance. There should be a department to just recruit employees on merit,
new employee must have caliber of international standard. Political influence
mustn’t be favored in order to make PIA the best airline again.

7.     
Cut In Employees:-

Job
cuts, golden shake hand polices like PTCL offered, reduction in superannuation
age and other ways to deal with employee’s surplus. Those employees who don’t
have attitude of working with the organization should almost be removed or
given training and evaluation process should be observed on them.

8.     
Aged / Not
Properly Maintained Fleets & Old Fashioned Staff:-

Fleets
should be grounded as soon as they reach to their maturation. For some years
they can be used for fright or courier services. Mostly these planes are sold
in market to earn some money and adding some assistance in purchase of a new
plane. Employees training programs are very important, as it bring back the
lost prestige of the organization as well as help in producing business. Old
staff should be given some other duties and newly recruited or trained staff
should be given a chance of international flights. Various authors have implied
that the business environment is composed of physical, cultural, and
technological components (Homans,1950). From this we can understand the
importance of environment for employees as well as environment provided to the
customers.

 

 

9.     
Corruption:-

Corruption is
controlled by many ways, strict rule following, punishments, firing and salary
reduction can be used against those employees of PIA, which are found guilty of
this act. As far as salaries and compensation system of PIA is concerned, it is
one of the top five paying organizations in Pakistan. Corruption can be easily
eradicated only proper planning against leakage of resources is required.

 

10.  Employees on Strike:-

Rewards, training
and the reason of change management plan should be told to the employees.
Politics can’t be avoided in any organization, to get better use of them is to
educate them about the process of implementation and benefits they will get
from the change implementation in organization.

 

 

Reference:-

 

1.     
Anderson,
C.l R., & Zeithaml, C. P. (1984). Stage of the Product Life Cycle, Business
Strategy and Business performance, Academy of Management Journal.2(3)

2.     
Bantel,
K., S. Jackson. 1989. Top management and innovations in banking: Does the
composition of the top team make a difference? Strategic Management J. 10
107-124.

3.      Homans.
G. C. The human group. New York: Harcourt, Brace, 1950.

4.     
Nawaz,
N. et al. Factors Underlying the
Failure of Organizations: A Focus on Pakistan International Airlines, Journal of Law,
Policy and Globalization ISSN 2224-3240
(Paper) ISSN 2224-3259 (Online) Vol 6, 2012).

5.     
Ooghe
H, De Prijcker S (2008). Failure Process and Causes of Company Bankruptcy: a
Typology. Manage. Decis., 46(2):223-242.

6.      Shleifer, Andrei, and Robert Vishny, “Corruption,”
Quarterly Journal of Economics, CIX (1993), 599-617.

7.     
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