INTRODUCTION

SKMA 3812
Aviation Management
Dr. Mastura Ab Wahid (C23-310)
mastura@mail.fkm.utm.my
What is Aviation Management

• Basic management/business principles both broadly and specifically how

they relate to aviation.
• Aviation management provides individuals with fundamental education in
management concepts along with those specific to the aviation industry
(practical aviation industry knowledge) – airlines, airports etc - necessary to
oversee the departments
• An aviation manager is a person who oversees compliance with local, state
and federal rules and regulations, ensuring that his/her departments run
efficiently and safely while overseeing the hiring and management of his/her
department staff.
• Introduce you various aspects of the exciting aviation industry.

2
Course Learning Outcomes
Course Requirement/Assessment
• 2 hours per weeks
15 weeks x 2 = 30 classes/hours
Attendance (Rule 80 %)
Tasks Marks
Test 1* 20
Test 2* 20
Exam 40
Project/ Assignments 20
Topics Covered

• Introduction to management
• Aviation Organisation (ICAO, IATA, EASA, DCA)
• Aviation Law
• Project Management
• Management tool (CPM/Pert)
• Airworthiness
• MRO
• Others (Environmental Issues, Human Factor)
Introduction to management
• What is Management
Management is the attainment of
organizational goals in an effective and
efficient manner through planning,
organizing, leading, and controlling
organizational resources
The Process of Management
Who Are Managers?

Someone who works with and

through other people by
coordinating their work activities
in order to accomplish
Managerial Activities
organizational goals •Make decisions
•Allocate resources
•Direct activities of others to
attain goals
Types of Managers

First-line/operating Managers
Are at the lowest level of management
and manage the work of non-managerial
employees
Middle Managers
Manage the work of first-line managers
Top Managers
Are responsible for making organization-
wide decisions and establishing plans and
goals that affect the entire organization
Types of Managers
Levels Job Activities

Highest level of management.

Manage overall organisation, create organisational goals, overall
Top Managers strategies, and operating policies represent the organisation to
the external environment. (e.g. president, senior vice president,)
(general manager and executive vice president)

The largest group of managers.

Responsible primarily for implementing policies and plan developed
Middle Managers by top manager and for supervising and coordinating the activities.
Manage the work of the first-line/operating managers (e.g. plan
manager, operation manager,) (operation manager and division
head)

The lowest in management

First-Line/Operating Manager Supervise and coordinate the activities of operating employees.
(e.g. Assistant manager, senior chiefs,)
(e.g. general supervisor, and supervisors)
Management Level
What is Organization

• A deliberate arrangement of people

assembled to accomplish some
specific purpose (that individuals
independently could not accomplish
alone).
Organizational Performance
Organizational structures allow
businesses to:
• Have someone one accountable for
decision making
• Create formal relationships between
different people and departments
• Create a chain of command
• Create a formal structure for
communication
• Give employees someone to be answerable
and responsible to
Characteristics of Organizations
 Top

Middle
Assignment (15 mins discussion)
• Each group find an aviation company.
Study on their organizational chart and
define the managerial level.
• Submit your findings in an A4 paper.
What do managers do
Management Functions
1. Planning refers to the process of selecting priorities and
results (goals, objectives, etc.) and how those results will
achieved.
2. Organizing is a plan for bringing together the resources of a
firm (capital and labour) to the position of greatest
effectiveness, or productivity.
3. Leading Directing and motivating all involved parties
and resolving conflicts
4. Controlling Monitoring activities to ensure that they
are accomplished as planned
 PLANNING
Planning is the process that:
› causes management to look ahead by evaluating the consequences of each decision before it is made

› generates a positive attitude to change

› force the deliberate consideration of alternatives
› motivates employees
› improves communication and coordination
Success planning requires the presence of certain gradients:
›a total commitment from the top
›a concern with long-term results
›a team approach
› encouragement reward system
› an appropriate reward system
› an effective organisational structure
 Levels of Planning
Levels description

• Apply to entire business – establish the business’s overall long-term objectives, seek to
position the business in terms of the environment and drive the business towards attaining
Strategic its goals.
• Performed by top-level managers.
• Involves creation and choosing strategies to achieve a vision, mission and measurable long -
term objectives

• The strategic plans forms the basis for tactical plans.

• The tactical plans specify the details of how the overall medium -term objectives are to
be achieved.
Tactical • Focus of tactical plans could be on the functional areas in business (ex: marketing,
finance / operations)
• More specific than strategic plans.
• Performed by senior, middle and first line managers.

• Developed by the first-line/operation managers.

Operational • This plan focus on carrying out tactical plans to achieve operational goals.
• Narrowly focused and have relatively short timescales (monthly, weekly and day to day)
 Strategic Planning

ANALYSIS FORMULATION IMPLEMENTATION CONTROL

Functional/tactical and monitoring and

Understanding the implementation of
needs of the business to Setting strategic operational department
strategic plan and
help business grow. goals need to set objectives
ensuring quality and
(from strategic goals) effectiveness in terms
for medium and short of organizational
term. performance.
Develop vision – ways to Formulating generic
carry the organization core idea on how to Objectives state
into the future compete in what to be Effective control
marketplace accomplished in process Identifies the
measurable terms problems and signals
with a target date. the business that a
Develop mission – change may be
provides strategic for needed.
members of the business.

Analyze the environment –

internally (strengths and
weaknesses) and externally
(opportunities and threats).

SWOT analysis
 ORGANIZING
• According to Chester Barnard, Human
Resources
“Organizing is a function by which the Financial
concern is able to define the role resource

positions, the jobs related and the co- Physical

resources
ordination between authority and
responsibility. Hence, a manager always
has to organize in order to get results.
ORGANIZING
• Organizing Steps
• Identification activities that need to be
performed.
• Departmentally Organizing. Group activities
into units or departments.
• Classifying power/authority and extend to
the managers.
• Coordination between authority and
responsibility
LEADING
• Leading is the use of influence to motivate employees to
achieve organizational goals. Leading means:
– create a shared culture and values
– communicating goals to employees throughout the
organisation
• Leading involves motivating entire departments,
divisions, individuals working immediately with
managers
CONTROLLING
Is the fourth function in management process. Controlling means:
› monitoring employees’ activities

› determining whether the organisation is on target toward its

goals
› making corrections as neccessary
Trends toward empowerment and trust of employees have led many companies
to place less emphasis on top down control and more emphasis on training
employees to monitor and correct them.

e.g.: Mass suicide’ protest at Apple manufacturer Foxconn factory, (The

Telegraph 18 September 2012). 24,000 employees quit every month – run in
a military fashion.
Why Managers Fail
 Skills Managers Need
Technical • Knowledge and proficiency in a specific
field
skills

Human • The ability to work well with other

people
skills

Conceptual • The ability to think and conceptualize

about abstract and complex situations
skills concerning the organization
INTRODUCTION TO SWOT
ANALYSIS
• Strategic planning starts with a SWOT analysis. The
SWOT analysis is essential to identify the
• › Strengths,
• › Weaknesses, along with your external
• › Opportunities and
• › Threats
• involved in a project or in a business venture.

• It involves specifying the objective of the business venture or

project and identifying the internal and external factors that are
favorable and unfavorable to achieve that objective
Source: T h e B i z Coach: Boeing, Airbus Rivalry – Lessons in Strategic Planning, J uly 6, 2012
Introduction to SWOT Analysis
• After the SWOT analysis has been carried-out, the objectives, missions and
policies of the project or organisation can be defined.
• The stated objectives inform various groups of what to the organisation want to
achieve.
• The defined missions provides information on the general activities that the
corporation wants to engage in.
• The policies inform the group of the acceptable rules of conduct and behaviour
that will be govern management actions
• The objective should be consistent with and support the overall missions and
policies of the corporation.
• Ultimately, objectives should be set at level slightly higher than is likely to be
reached but must be realistic and acceptable to the various team members.
Introduction to SWOT Analysis
• When to use SWOT
• SWOT is meant to be used during the proposal stage of strategic
planning. It acts as a precursor to any sort of company action, which
makes it appropriate for the following moments:
– Exploring avenues for new initiatives
– Making decisions about execution strategies for a new policy
– Identifying possible areas for change in a program
– Refining and redirecting efforts midplan.

• The SWOT analysis is an excellent tool for organizing information,

presenting solutions, identifying roadblocks and emphasizing
opportunities.
Introduction to SWOT Analysis
• SWOT analysis is based on INTERNAL and EXTERNAL factors.
• Internal factors: The resources and experience readily available
to you.
• External factors: Typically reference things you or your company
do not control - influence and affect every company, organization
and individual.
External Internal

(S)trength (W)eakness

(O)pportunities (T)hreats
Example of SWOT analysis for
Boeing & Airbus case study
Strength (S) Weakness (W)
Airbus Airbus
i) Leading position i) Delays in A380 and A400M
deliveries
ii) Strong support from ii) Lagging behind Boeing in
parent EADS the mid-size, long-range segment
iii) A380 as "new" jumbo
Boeing Boeing
i) Leadership position i) Losing market share to Airbus
ii) Support by a steady ii)Declining revenues from the
defence business key geographic segments
iii) B787 with high demand in iii) B747/8 relaunch as
mid-size market imperfect competitor to the A380
Example of SWOT – Boeing &
Airbus case study
Opportunities (O) Threats (T)
Airbus & Boeing Airbus & Boeing
i) Increasing air traffic i) Increasing prices of
and expanding large civil titanium and aluminium
aircraft market ii) Risk of a "new" occasion
ii) Upcoming markets China of terrorism and external
and India shocks

Source: Airbus versus Boeing – Strategic Management Report, Scientific Study, 2007

S M K A 3812 – Aviation Chapter 1 Intro. to Management

Management
Presentation (10 mins discussion, 10
mins presentations)
• Each group find an aviation company
and discuss on their strengths,
weaknesses, opportunities and threats.
• Present your discussion.