Cost of Operation Research Paper Example | Topics and Well Written Essays - 1500 words

Cost of Operation - Research Paper Example The final factor that needs to be bought to one’s attention is flexibility which can be defined as the ability to support a change in business. If a company is not able to control these five operational performance objectives then clearly it won’t be an easy job for it to thrive in this already competitive industry. This essay discusses all these factors in relation to Airblue and gives a clear application of the five operational performance objectives to its business. I chose AirBlue for this assignment in view of the fact that it is one of the most renowned names when it comes to the airline industry and because I felt I would easily be able to explain the effect of these factors on its operations with sufficient detail. Airblue was launched in 2004 when the local market started witnessing an increased demand for high quality travel. The company’s ownership includes a group of top class investors with Mr. Tariq Chaudhary having a majority stake alongside holding the position of CEO and Chairman of the Board of Airblue. The company is registered as a private company and has its registered office in the famous towers of Islamabad Stock Exchange. The airliner has also successfully been able to obtain the IATA and ICAO airline designations. Currently it has a fleet of 14 Airbus A319 and A321 planes. Ever since its launch, the airliner has continually stretched out its operations and fleet in line with an ever escalating demand for the high quality flights it provides. Although initially it served only to customers travelling within Pakistan, the company has now expanded its operations by offering international flights to Manchester, Dubai, Abu Dhabi, Sharjah, Oman and Muscat. According to many market analysts, the focal reason for the airline’s success has been its provision for high quality travel at an

Management of process & people in engineering industary Essay

Management of process & people in engineering industary - Essay Example Pay system for engineering firms are regulated by industrial agreement. Antoni and Baeten have argued that profit related pay can be a much viable option for engineering industry in comparison to fixed rate payment system. PFP in engineering industry is directed by collective bargaining power of engineers working in particular organization (Antoni and Baeten, 2007, p. 123). Identification of Relevant Pay Systems Performance Related Pay Performance related pay is designed in order to measure performance of individual or group in monetary terms. Organizations using performance related pay believe increased pay can motivate employees to perform well. It is difficult to create a standard notion of performance related pay because definition of performance varies from organization to organization. Common performance related pay can be explained in the following manner. Small engineering firms pay price to employees on the basis of each unit of output. Although it is oldest form of performa nce related pay but very few organizations use this model in practical sense. Companies offer individual performance pay schemes in the form of fixed wage or performance related bonus. Engineer’s performance is measured in terms of his/her capability to produce target quantity of output in given timeframe. Cost to the company for engineers is adjusted in terms of fixed salary and variable pay. Variable pay is allocated to employees in the form incentives in order to motivate them to perform well. Individual measure of employee’s performance is subjective to assessment performed by particular supervised. Merit pay defines to pay hike due to good performance (Bryson et al., 2011). Bonus Scheme Research scholars have described bonus scheme as self financing method which provides reward to employees with an intention to motivate them to perform well. Bonus scheme is not a static reward system because many organizations change measurement norm of bonus scheme in accordance to business requirement. Basically bonuses are additional payment to base salary and important thing to remember is that bonuses are not paid in periodic manner. There are no fixed performance criteria to link performance with bonus scheme. Labour law suggests that bonus scheme must not be gender biased while research scholars have divided bonus scheme into two broad categories. Single Factor Bonus Scheme In single factor bonus scheme employee performance is measured in terms of key organizational objectives such as productivity, profit, quarter wise sales target and other short term targets. Multi Factor Bonus Scheme Multi factor bonus scheme is complemented by long term corporate level business objectives. Bonuses are given to particular individual or department on the basis of their overall performance in a particular financial year (Amicus, 2006). Objective of Bonus Scheme Improving performance of employees in terms of profit, sales or productivity Motivating employees to delive r key objectives of business such as service quality, customer relationship