PROJECT: PIA

Maximum Marks 15
ISLAMABAD: EX-Chairman PIA Tariq Kirmani admitted that PIA had to suffer loss to the tune of Rs 9 billion during the last nine months adding government could induct some other one as chairman if it did not accept his proposals for improvement in the national flag carrier.

He acknowledged this during his briefing to Senate standing committee for defence and defence production here Thursday. He told that situation prevailing in PIA is not better adding he had informed the government in this respect. The meeting was presided over by the senator Nisar Memon. Expressing dissatisfaction over the performance of the national air lines, he said the fuel price has increased from Rs 18 billion to Rs 34 billion. On the other side recovery is not equal to 15 percent. Even it is not meeting the fuel surcharge. He indicated PIA loss stood at Rs 4 billon during the financial year 2004=5 which has reached the level of Rs 9 billion during the current fiscal year. I have joined PIA 18 months earlier and I can not sort out all the problems facing it", he underlined. I have given the proposal to the government on financial restructuring of PIA besides establishment of prices stability fund. If these proposals are not accepted then government can appoint any one as chairman he will run it. Members of standing committee senator Professor Khurshid Ahmad, senator Anwar Beg and senator Rukhsana Zuberi targeting the performance of PIA, said situation is worsening day by day there. The whole system is in shambles. National airlines has failed to achieve its objectives. Three persons including Aleem Khan, Zafar Usmani and Naeem Khan have been appointed in PIA on highly inflated salary package. Aleem Khan is being paid Rs 8.50 Lakh per month as chief financial operator. Zafar Usmani is receiving pay far higher than this. Naeem has received Rs 7 million on account of salary for three months as consultant. Chairman PIA admitted that salaries of these three persons were higher than his own salary. Opposition pointed out that Aleem Khan and Zafar Usmani have no experience of any airlines as they have come from PTCL and mobile company respectively. About replacement of Fokker aircraft with new ATR planes chairman said Pakistan will acquire first ATR aircraft in the current month and the remaining four aircrafts in the next four months. The committee took serous note of awarding license to a person from Dubai to launch airlines in the name of Pakistan Air Ways in defiance of rules and regulations and issued directives that the license be cancelled forthwith and the committee be informed about this within a week.

QUESTIONS: (3000 words) Devise a change Management Plan for PIA till the year 2020. Your plan should be phasal. and should involve the re-evaluation of organizational structure through OD. Proper investments should be forecasted/ ensure proper assumptions i.e. phasal strategy. Your report should be structured as follows 1. Introduction to the Sector :----------------------------------------(500 words) Contemporary Organizations involved/ share holdings? Organizational / Governance structure

 Public and Private Sector entities? WAPDA, PEPCO PPIB, AEDB / KESC / PIA /Railwasy etc Regulations and competitors. SWOT of the power sector (evaluate macro and micro environment) Circular Debt issue

2. Your Strategy:

(2000 words)

Your theory O & E Your OD I,e structural / technology / behavioural (both for peak and low demand)? Maximum choose 2 No of change agents you propose Resistance / organizational politics you expect Investment you propose Type of leadership you propose Source of Investment you propose IPPS / Imported electricity / Federal budget /Rentals / Donor Agencies. / Strategic Alliances with other Nations / Incentives for investment you propose Phases of you Change Plan Your proposed OD grid Your Metrics of change Your leadership Your process interventions Your team building

3. How effectively you can make your plan sustainable? 500 words

NOTE: Your report must be properly referenced, as your references will be checked and your report will be graded accordingly. Your assumptions must be based on real time forecast and scenarios. Your presentation should be not more than 15 min followed by an individual viva carrying additional 5 marks. Ensure your presence in the class on the 14th lecture.