[solved] International Air Transport Association (IATA) Case Study

International Air Transport Association (IATA) Case Study

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Introduction

International Air Transport Association (IATA) is an international corporate body with operations in over 150 countries. It represent a massive 240 airlines; basically, comprising over 80% of the world’s airlines. The mandate of IATA was developing international standards to govern passenger and cargo airlines. It develops initiatives for airlines that ensure passenger convenience and improved efficiency at affordable costs. IATA’s management strategy is mainly centered on project management; for instance, it oversaw the introduction of the global electronic ticketing service used by modern airlines. In that regard, the purpose of this project providing a reflection of IATA’s management and organization, planning of projects, project budgeting and scheduling as well as monitoring and control of projects.

Management and organization of the team

McGuire’s 2014 study shows that IATA uses a decentralized management and organization system allowing it to vest the management of its projects in several departments. Management functions are vested in different bodies. Decentralization of functions ensures effective dissemination of its objectives to the airlines. For instance, project management of the IATA’s projects is vested in the Project Management Office (PMO) (McGuire, 2014). IATA also offers education programs in project management skill in the air transport industry through IATA Training and Development Institute (ITDI). McGuire (2014) seems to suggest that proper structuring of the organization ensure all departments are independent but work in a collaborative manner. The structure of IATA allows equal participation by setting fair ground rules. All member airlines enjoy equal treatment by the organization. For example, all have a single equal vote, regardless of their size, on issues regarding its management (Verma). The Executive Committee provides all policy directions but respective departments like the Legal, Financial, Traffic Advisory among other Committees are responsible for implementation. Apart from the import of member airline, it invites corporation from government. Active management and daily administration is conducted by Director General in collaboration with the Treasurer and Financial Director, Technical Director, Traffic Director, and the Secretary (Verma). Decentralization is also evidenced by opening of Regional office on every continent. In my view, this effort enables the organization conduct its activities smoothly.

Planning of the project

Planning is an essential element to any organization because it allows the management to set achievable objective. Furthermore, objectivity and goal realization is possible where there is proper planning. McGuire (2014) demonstrates the IATA use is Project Management Office to come up with tactics that help it to realize it goals. According to Verma, IATA has as an Executive Committee empowered to give policy directions to all of its organs. For example, following the policies set by the Committee has allowed PMO to achieve objectives like passenger experience, reduction of the damage caused to the environment by air transport, reduction of management and operational costs previously suffered by airlines, as well as improvement of passenger safety standards. From the article, one can also deduce that IATA’s planning of projects is succeeds because of good policy. Allowing respective department to independently plan for its project and provisions of training in project management ensure that the organization stays aloft. The article hints to the fact that IATA plans for its projects following the requests of stakeholder and member airlines. In my view, the success of seen in IATA’s projects is attributed to proper planning through partnership. For instance, its planning initiatives saw many airlines enroll in the projects management course offered by the ITDI. Organiztions like the UN Mission in East Timor, Air Traffic & Navigation Service, and Kenya Airways benefited from ITDI (McGuire, 2014). In that regard, it is appropriate to observe that IATA success is also attributed to it efficiency in planning.

Project budgeting, scheduling

Even though McGuire (2014) does not talk about project budgeting and scheduling, given the number of airlines that IATA service, a lot of funds are needed to ensure the success of its projects. Most funds may be directed towards implementation of training programs. Moreover, Airports also need the help of IATA in all major aviation projects even if they involve launching airport projects. It is imperative to understand that monitoring projects, training programs, project planning, and projects management consume a lot of funding. However, it is difficult to ascertain how IATA achieves these objectives since the information available is scanty. Albeit this shortcoming of the study, IATA seems schedule it projects based on first-come basis since all member have an equal vote regardless of size.

Resource allocation

Interpretation of the articles suggests that IATA’s resource allocation is based on merit. Essential departments like of ITDI and PMO require proper funding due to the vitality of their duties. Activities like training of airlines’ employees and person from other organization requires huge investments and hence IATA focuses on ensuring their success. In fact, McGuire (2014) while citing Mr. AlBaidhani states that projects of many organizations have succeeded after enrolling their employees in ITDI educational programs. Organization like Kenya Airways affirm the importance of project management which they claim streamlined their information systems.

Monitoring and control of project

McGuire’s 2014 article suggests that PMO carries out the monitoring and control of IATA’s projects. An analysis of the paper reveals that since the creation of the PMO, projects like the efficient ITDI materialized. PMO also ensure that ITDI achieves standards required by IATA in the educational programs offered. However, Regional Technical Offices in places like London, Kenya, Belgium, and USA oversee the general implementation of these projects. All regional offices answer to the Executive Committee in Montreal, Canada which is the body responsible for giving policy directions. As opposed to taking a centralized monitoring and control system, IATA takes a decentralized approach but each department finally reports back to the Executive Committee. Nonetheless, governments also exercise review powers of the terms created by IATA (Verma). Review powers in this case entail that government are the oversight institutions of IATA’s activities.

References

McGuire, D. (2014). Case study: International Air Transport Association (IATA). PMI.org. Newtown Square, PA. USA: Project Management Institute.

Verma, D.L. (2018).. The Organizational Structure of IATA. Retrieved April 27, 2018 from http://www.shareyouressays.com/essays/the-organizational-structure-of-iata/93521