Ekek

School of Business and Management

Business Administration – Marketing Department

Xavier University – Ateneo de Cagayan

[pic]

Research Methodology / Output

In Partial Fulfillment of the requirements of

BA 9 – Human Resource Management

Submitted by:

JERIKA B. FUSILERO

BSBA III – BA 9 F

Submitted to:

Dr. Jimbo Fuentes

July / 2013

Table of Contents

Page

I. Company Profile ………………………………………………….. 3 - 9

OWNER / CEO ………………………………………………….. 3

BACKGROUND ………………………………………………….. 3 - 5

YEAR ESTABLISHED …………………………………………………... 5 - 8

MISSION …………………………………………………... 8 - 9

VISION …………………………………………………… 8 – 9

II. Statement of the Problem …………………………………………………… 9

III. Solution approaches …………………………………………………… 9

Stage one …………………………………………………… 9 - 10

Stage two …………………………………………………… 10 - 11

Stage three …………………………………………………… 12

Stage four …………………………………………………… 13

IV. Summary …………………………………………………… 14

V. Recommendation …………………………………………………… 14

VI. Conclusion …………………………………………………… 15

I. COMPANY PROFILE

Philippine Airlines, Inc. (abbreviated as PAL and also known historically as Philippine Air Lines) operating as Philippine Airlines is a flag carrier of the Philippines. Headquartered at the Philippine National Bank Financial Center in Pasay City, the airline was founded in 1941 and is the first and oldest commercial airline in Asia operating under its original name. Out of its hubs at Ninoy Aquino International Airport of Manila and Mactan-Cebu International Airport of Cebu City, Philippine Airlines serves twenty destinations in the Philippines and 26 destinations in Southeast Asia, South Asia, East Asia, Oceania and North America.

Formerly one of the largest Asian airlines, PAL was severely affected by the 1997 Asian Financial Crisis. In one of the Philippines' biggest corporate failures, PAL was forced to downsize its international operations by completely cutting flights to Europe and Middle East, cutting virtually all domestic flights except routes operated from Manila, reducing the size of its fleet, and laying off thousands of employees. The airline was placed under receivership in 1998, and gradually restored operations to many destinations. PAL exited receivership in 2007, and following the takeover of San Miguel Corporation in 2012, has been taking steps towards reestablishing itself as one of Asia's premier carriers.

On February 26, 1941 Philippine Air Lines, Inc. by a group of businessmen led by Andres Soriano - hailed as one of the Philippines' leading industrialists at the time, who served as general manager, and former Senator Ramon Fernandez, who served as chairman and president. Philippine Air Lines, Inc. acquired the franchise of Philippine Aerial Taxi Company, Incorporated, thus the birth of Philippine Airlines.

The airline’s first flight took place on March 15, 1941 with a single Beechcraft Model 18 NPC-54 on daily services between Manila (from Nielson Field) and Baguio. On July 22 the airline acquired the franchise of the Philippine Aerial Taxi Company. Government investment in September paved the way for its nationalization.

PAL services were interrupted during World War II, which lasted in the Philippines from late 1941 to 1945. Upon the outbreak of the Pacific War on December 8, 1941 the two Model 18s and their pilots were pressed into military service. They were used to evacuate American fighter pilots to Australia until one was shot down over Mindanao and the other was destroyed on the ground in an air raid in Surabaya, Indonesia.

On February 14, 1946 PAL resumed operations after a five-year hiatus with service to 15 domestic points with five Douglas DC-3s and a payroll of 108 names. Philippine Airlines returned to its original home, the Nielson Field in Makati. The airport, heavily damaged during the war, was refurbished and modernized by PAL at a cost of over one million pesos, quickly becoming the official port of entry for air passengers into the Philippines. The airport was operated by Manila International Air Terminal, Inc., a wholly owned PAL subsidiary.

On July 31, 1946 PAL became the first Asian airline to cross the Pacific Ocean when a chartered Douglas DC-4ferried 40 American servicemen to Oakland, California from Nielson Airport with stops in Guam, Wake Island,Johnston Atoll and Honolulu. A regular service between Manila and San Francisco started in December 1946. During this time the airline was designated as the country’s flag carrier.

PAL commenced service to Europe in 1947 with the acquisition of more Douglas DC-4s. By 1948 PAL had absorbed the only other scheduled airlines in the Philippines, Far Eastern Air Transport and Commercial Air Lines. Following the government's decision to convert Nichols Field in Pasay City, the site of a former U.S. Air Force base, into a new international airport for Manila, PAL was required to move its base of operations and passenger terminal there from Nielsen Airport. The transfer was accomplished over a five-month period from January 31 to June 28, 1948, with PAL investing an additional P600,000 in ground installations and improvements to Nichols Field.

In 1951 PAL leased a DC-3 named "Kinsei" to Japan Airlines, which led to the founding of the country's own national airline. In March 1954 the Philippine government suspended all flights to Europe, Japan and the United States, only to resume five years later. In three years PAL started services to Hong Kong, Bangkok, and Taipei using Convair 340s that would later be replaced by the Vickers Viscount 784, which brought the airline into the turboprop age.

In the 1960s, PAL entered the jet age, initially with a lone Boeing 707, later replaced with Douglas DC-8 aircraft leased from KLM Royal Dutch Airlines., used for long-haul international flights to Europe and the United States. The DC-3 remained the mainstay of domestic services as it expanded to a total of 72 points as airports were improved or opened, but most of the airline's rural air service was later stopped in May 1964. Two years later, PAL commenced its first turbojet services to Cebu, Bacolod, and Davao using the BAC1-11. In addition, PAL was also privatized, as the Philippine government relinquished its share in PAL after Benigno Toda, Jr., then-PAL chairman, acquired a majority stake in the airline.

DIRECTORS AND OFFICERS

Chairman & Chief Executive Officer: San Miguel, Lucio Tan
President & Chief Operating Officer: Ramon S. Ang
Members: Aurora T. Calderon
Ferdinand K. Constantino
Estelito P. Mendoza
Roberto V. Ongpin
Washington SyCip
Harry C. Tan
Lucio K. Tan, Jr.
Michael G. Tan
Inigo Zobel
Antonino L. Alindogan, Jr. (Independent Director)
Enrique Cheng (Independent Director)
Alberto D. Lina (Independent Director)
Gregorio T. Yu (Independent Director)

A PROUD HERITAGE, A PROMISING FUTURE

Philippine Airlines (PAL) began life with a noble mission: to serve as a partner in nation-building. With this in mind, PAL took to the skies on 15 March 1941, using a Beech Model 18 aircraft amid the specter of a global war. It became Asia's first airline.

EMBRASING E-BUSINESS

PAL began embracing electronic commerce with the introduction of its Online Booking service that accepts ticket purchases and credit card payments for all flights. A new, improved website was also launched to serve the customers' needs more quickly and efficiently.

II. STATEMENT OF THE PROBLEM

● Access to Labor

Flag carrier Philippine Airlines (PAL) continued to lose money in the third quarter of its fiscal year, as it struggled with disruptions in operations due to labor issues, exacerbated by the continued rise in fuel prices.

III. SOLUTION APPROACHES

● STAGE 1 TRAINING NEED ANALYSIS

Most people in organizations that have anything to do with training agree that training for training’s sake is a waste of time and money, but, there are many organizations doing just that. They fail to recognize there is no value in carrying out training which:

● is not needed;

● does not help individuals and teams to become more effective at their jobs;

●or does not contribute towards achieving the organization’s objectives.

No doubt many of us can provide examples where individuals were sent on a training course because it was their turn, or because it is company policy for every manager to do this course. These requests – in some cases, instruction – ignore the fact that the training in question may not form part of the person’s personal development program, nor would it help to improve performance in his or her job.

Most people are willing to participate in training courses, perhaps if only to break the monotony of the workplace. However, for the organization and individual to obtain some work-based, meaning benefit, there must a real need for the training. This is where a training needs analysis is essential.

Training is an important resource in any organization. Implemented in the most effective way it can assist on overcoming work-based problem and help to provide a more skilled and productive workforce, as well as assisting the organization to achieve its objectives. Training needs analysis is a thorough review of the training which can effect improvement in the knowledge, skill or attitude of individuals or teams in the workplace.

Hiring and retaining high quality employees is a good policy but investing development their knowledge and skills will tremendously increase their productivity. The quality of the workplace and employees’ educational and professional development help determine the long-term profitability of a business institution. Training is commonly considered only for new employees. This is a big mistake; the most successful institutions realize that ongoing training for existing employees results in measureable results for the company.

Benefits of Training Employees

In simple terms, the benefits of providing training to employees can be seen in these bottom-line results:

1. Reduce employee turnover

2. Increased productivity

3. Decrease need for supervision

4. Increased efficiency that translates to an increase in financial gains

5. Employees with a greater feeling of dignity, self-worth and well-being as their value within the company and society increase.

6. Increased productivity and financial rewards employees satisfy company personal goals

● STAGE 2 PLANNING

Active Learning — a learning principle that says participants learns more when they are actively involved in the process. Remember the saying “we learn more by doing”.

Standards — a rule or principle that is used as a basis for judgment. A road map that provides guidance and direction to lead us to an established objective or goal. Standards define the level of quality expected after an area or object has been cleaned. Standards represent the “measuring sticks” used in establishing productivity and performance guidelines.

On-the-Job Training (OJT) is a program that reimburses a company for the cost of training a new employee. A customized training plan is put in place by the company which leads to employee retention in the job. The program is offered by the Office of Workforce Opportunity through its contracted workforce provider, Southern New Hampshire Services, Inc. (SNHS), and can be combined with other training opportunities that encourage companies to hire unemployed New Hampshire residents, and to enhance the skills of both new and incumbent workers. OJT helps place unemployed New Hampshire residents who are at least 18 years old into long-term permanent jobs. Trainees are hired into full-time employment and receive employer provided training. The trainee is a paid employee of a company. The basic purpose of OJT is to allow an employer to hire an individual who would not otherwise qualify for the job and to teach the skills needed to perform at the entry level for the position. The activity is based upon a contract between the employer and SNHS, which provides the employer with a partial wage reimbursement for an agreed-upon training time period in exchange for the provision of training by the employer and a commitment to retain the individual when the training is successfully completed. After a standardized OJT contract is signed, the trainee is hired as an employee of the company that has agreed to provide the training. OJT training payments to employers are deemed to be compensation to the employer for the extraordinary costs associated with training participants and the costs associated with the lower productivity of the participants during the training period. The OJT program offers up to 50% wage reimbursement for trainees. Employers who hire trainees who have been unemployed 18 weeks or longer may be eligible for wage reimbursement of up to 90% depending on the size of the company. The OJT Program has job placement specialists who will work with the employer in the design of the training program. There is even one-time support payment for tools and other work-related necessities not generally provided by the employer. The OJT job placement specialist can also suggest ways to combine OJT with other programs such as Return to Work, a voluntary program to provide a structured, supervised training opportunity to unemployed NH residents while they continue to collect unemployment compensation, and the Job Training Fund, a 1:1 matching grant to cover training costs for new and incumbent workers.
● STAGE 3

Implementing Training

Once the staff, course, content, equipment’s, topics are ready, the training is implemented. Completing training design does not mean that the work is done because implementation phase requires continual adjusting, redesigning, and refining. Preparation is the most important factor to taste the success. Therefore, following are the factors that are kept in mind while implementing training program:

The trainer – The trainer need to be prepared mentally before the delivery of content. Trainer prepares materials and activities well in advance. The trainer also set grounds before meeting with participants by making sure that he is comfortable with course content and is flexible in his approach.

Physical set-up – Good physical set up is pre requisite for effective and successful training program because it makes the first impression on participants. Classrooms should not be very small or big but as nearly square as possible. This will bring people together both physically and psychologically. Also, right amount of space should be allocated to every participant.

Establishing rapport with participants – There are various ways by which a trainer can establish good rapport with trainees by: • Greeting participants simple way to ease those initial tense moments • Encouraging informal conversation • Remembering their first name • Pairing up the learners and have them familiarized with one another • Listening carefully to trainees’ comments and opinions • Telling the learners by what name the trainer wants to be addressed • Getting to class before the arrival of learners • Starting the class promptly at the scheduled time • Using familiar examples • Varying his instructional techniques • Using the alternate approach if one seems to bog down ● STAGE 4 Evaluation of Training Evaluating the outcomes of training is a challenging task. The goal is to assess changes in three areas: knowledge, attitude, and behavior. Acquiring knowledge–concepts or facts–ranges from orientation to becoming an expert. Changing attitudes–values, beliefs, or feelings–means rethinking ideas, considering alternative views, or forming attitudes about new topics and issues. Learning new behavior–new or enhanced skills–is the most powerful outcome of training. Behavioral change is the most difficult outcome to achieve, but may be the most important. Organizers and trainers also gather evaluation information via observation. This observation aids in adjusting the training during an event and provides another perspective on learner participation and changes. For example, observers can note variances in level of participation in discussions or lack of attention to a particular topic. Guidelines should be established for the observation, especially if using participants or other people to observe an event. This helps assure consistency in the observation process. In addition, for in-house training, supervisors can directly observe changes in behavior. IV. SUMMARY

Since then, PAL deeply involved itself in shaping the course of historic events. With its every takeoff and touchdown, PAL planted the seed of growth. PAL has become one of the most respected airlines around the world with a young and modern fleet of aircraft and a route network that spans 31 foreign cities and 29 domestic points.

PAL's excellent service has won the hearts of travelers worldwide. This trademark has distinguished it from the pack and has stood guard in an environment that has grown more competitive by the day. But PAL does not sit on its laurels. Realizing that it owes its success to its loyal passengers, PAL launched a campaign called "Call for excellence" to serve its market better. V. RECOMMENDATION To improve your performance you should ask your employees what they think would help. They are the people that are doing the work; they are the backbone of the company. Ask their opinion and listen to the suggestions, those who are dedicated to the company will try to improve it. This will also maintain the image of the company. Hopefully it's a good image to maintain but why wouldn't you try to improve your image as well. People are more likely to be more productive at a company that they are proud of over one they are not. focus on your existing customer base. You need to ensure that you are answering all questions in a helpful and knowledgeable manner, that you are providing courteous service, and informing them about any new products or specials you have going on. This will result in increases in customer retention, lead to increased profits, and business expansion through customer growth. VI. CONCLUSION In order to increase profitability, improve customer service, applying all the methods in trainings. I propose that you focus on your internal performance by first focusing on your financial statements for leading indicators and that you aim your attention at providing your customers with service that is second to none. Both of these recommendations will lead to your goals as well as shareholder value.