Case Studies on FAA

Federal Aviation Authority

Brief Description Of The Case:

The research study will make an effort to observe the related facts and figures of the Federal Aviation Authority of United States. The analysis of the details and structures of the organization will be taken into consideration keeping in view the problems and the obstructions which are coming in the development of the organization and which are affecting the organizational framework. The study will highlight at least six major problems of the Federal Aviation Authority, the purpose of the paper is to study these problems in detail and to provide alternative solution and recommendations so that the federal aviation authority can remove all loopholes from its organizational framework and can start implementing effective strategies which will help the company to survive and to achieve its desired goals. The paper will provide a brief history and relative background of the company so that the readers can understand the other factors and can interpret the problems and the relative solutions.

FAA oversees the largest, busiest, and safest air transportation system in the world. FAA also is responsible for operating air traffic control, which is the nerve center of the Nation's air transportation system., FAA and the aviation community are facing a number of challenges. The demand for air travel has doubled since 1980 and is expected to continue to grow through 2015. First, there is no air traffic system in the world as large and complex as that of the United States. It is safe, but actions are needed to make it more efficient. Any proposal to restructure FAA or have air traffic control run by a commercial type organization must be carefully examined." http://www.senate.gov/~budget/republican/about/hearing2000/mead.htm

It has been noted that FAA is regarded as the safest air transportation system in the world, but there are number of challenges and problems which are hindering the progress and survival of FAA has been affected by these problems and relative challenges. Although the organizational authorities have done their best to formulate strategic principles, rules and regulations and they have implemented on these methodologies but they are still lacking in some areas and proper attention is needed to overcome these problems so that the organization can match to the standards and can gain prosperity and success. The paper will present information regarding the working style and administration of FAA and this information will be further analyzed and observed to know abut the relative problems and their alternative solutions which can be used to correct the organizational framework and which could help in the development of suitable strategies for the FAA.

It has been noted that FAA has done its best since its inception, FAA's headquarters is in Washington, which is responsible to conduct all the activities of the organization, and it is also responsible to formulate certain rules and regulations regarding the proper working of the organization. The organizational authorities at the headquarter make strategic decisions and they try to dig out the loophole so that they could develop better strategies and could remove all the flaws from the organizational framework.

FAA's Washington headquarters is responsible for agency-wide program planning, direction, control and evaluation. Most national equipment acquisitions and research and development (R&D) contracts are awarded by this office. Some of the equipment includes complete navigational aid systems, radar network systems, display units, aircraft, aircraft landing and aircraft traffic control systems, and computers with supporting software. In addition, contracts are awarded for services in support of national programs to include engineering and program management as well as very specialized fields in which FAA does not possess in-house expertise. Finally, day-to-day operating supplies are purchased throughout headquarters." http://www.asu.faa.gov/faaco/kenproj.htm

Direction, control and evaluation is the main task of the headquarter of FAA; the responsible authorities are fully devoting their time towards the fulfillment of these task s and they are continually serving the people with the best of their talents and professionalism. Day-to-day operations are also observed and analyzed by the authorities of the headquarters and they keep a check and control over all the affairs of the agency.

2.COMPANY BACKGROUND:

The paper will present a brief history and background of the company so that the reader can know about the relative importance and history of the company and can further analyze the information, keeping in view the background and history of the company and its inception.

The approaching introduction of jet airliners, and a series of midair collisions, spurred passage of the Federal Aviation Act of 1958. This legislation transferred CAA's functions to a new independent body, the Federal Aviation Agency, which had broader authority to combat aviation hazards. The act took safety rulemaking from CAB and entrusted it to the new FAA. It also gave FAA sole responsibility for developing and maintaining a common civil-military system of air navigation and air traffic control, a responsibility CAA had shared with others. The scope of the Federal Aviation Act owed much to the leadership of Elwood "Pete" Quesada, an Air Force general who had served as President Eisenhower's principle advisor on civil aeronautics. After becoming the first Administrator of the agency he had helped to create, Quesada mounted a vigorous campaign for improved airline safety. From Agency to Administration. In 1966, Congress authorized the creation of a cabinet department that would combine major Federal transportation responsibilities." http://www.faa.gov/aboutfaa/History_Brief.cfm

FAA was developed in order to control the air traffic and to maintain a system of air navigation. FAA and its authorities are continually evolving strategies, which could match up to the standards. The basic aim of the organization is to ensure airline safety and the strategies are being implemented in order to strengthen these strategies so that better quality of services can be provided to the people.

The FAA's mission "to improve aviation safety and prevent the disruption of commerce," includes improving reliability of, and access to, aeronautical safety data. Failure to perform this mission successfully has even more drastic consequences than lost income or reduced productivity. The FAA initially assigned EDS to upgrade the existing Notice to Airmen (NOTAM) system to modern client-server technology. Another supplier initially attempted the project two years before, at a cost of $24 million, but failed to produce a solution. One of the reasons the agency chose EDS over its major competitors was EDS' in-depth knowledge of the existing application. It also offered a low-risk plan that would prevent system outages while the FAA's new, more responsive and reliable national information center was under construction." http://www.eds.com/case_studies/case_faa.shtml

It has been noted and observed that the mission which has been handled to the authorities of the FAA is very difficult and complexed in nature and the fulfillment of this mission is itself a problem but the authorities and the organizational bodies are continuously involve in its fulfillment and they are developing strategies which could meet the requirements of success and which could help them to attain their ultimate goal. The mission of the FAA also includes the prevention of disruption of commerce, since its inception, the authorities are trying to fulfill this mission with the use of effective strategies but there are certain loopholes which are still present in the organizational framework and these factors are hindering the progress of the company. The problems and their solutions will be further discussed in the paper.

3. PROBLEMS and OPPORTUNITIES

KEY STAKEHOLDERS & Business PROCESSES

Stakeholders are simply people who have some interest in a business. The term stakeholder is often used by public company management when attempting to address more than just the interests of their shareholders (the owners of the business).

Stakeholders can therefore include,

Shareholders,

Employees,

Members of the local community,

Customers,

Suppliers,

Government, local or national where the organization is a significant taxpayer" http://www.sticky-marketing.net/glossary/stakeholders.htm

The analysis and researches regarding the business processes and methodologies reveals the fact that the FAA have adapted those technologies and methodologies which are in favor of its mission and which could help them to fulfill the goal of the company. The key stakeholders are also concerned about the relative position and standing of the FAA and they are ready to invest more and more money in the business so that the status of FAA can be upgraded and the business can be maintained with the effective use of strategies and methodologies. The key stakeholders have been participated in the development of the company and they are still worried about the status of the company. These stakeholders have stressed on the fact that the organizational authorities should review the business methodologies from time to time so that the outcomes and the results can be analyzed and improvement can be made further in the development of suitable and appropriate strategies.

SUMMARY OF PROBLEMS IN PRIORITIZED ORDER:

The problems of the FAA, which will be discussed and elaborated in the paper, are as follows:

Introduction of new computers

Increase in the number of staff

Collision of Airliners

Review of strategies and development of new ones

Accountability and its maintenance

Training and replacement of controllers

These are the major problems, which are involved, with the FAA and its organizational framework and if these problems will be overcome then the organization would be strengthen and the business will flourish. These problems are related to the infrastructure of the FAA and they have to be eradicated as soon as possible so that a proper working environment can be developed and evolved and the FAA can gain a standardized position. The first and major problem is the introduction of the computers, the researches and studies have shown that the FAA have introduced computers in the organization but the latest version of the computers were not adapted by the organizational authorities. Now, it is the time to introduce new computers with in the organization so that these computers would help the authorities and can provide easy assistance. Secondly, the FAA and the organizational authorities should increase the number of staff so that the proper working environment can be developed. The increase in the number of staff will stabilize the organizational; framework and the strategies would be properly implemented. The increase in the number of staff will also help to reduce the workload of the organization and the business would be maintained in a better way.

The third major problem is related to the FAA's task, which is most basic in nature, and this task is to keep airliners from colliding. This is the major problem and the important task, which is assigned to the authorities of the FAA, and the FAA should fulfill this task at any cost. The fourth major problem is the review of the previous strategies and the derivation of new strategies, this problem is very complexed in nature and therefore, the authorities should search for effective methodologies which could help them to overcome this problem. The fifth and sixth problem is related to the organizational infrastructure and these problems should also be resolved as soon as possible so that the FAA can continue its activities and can generate positive results.

The analysis reveals that FAA should regularly conduct SWOT analysis so that the correct picture of the organization can be reviewed and the actions can be taken in respect of the information from the SWOT analysis. The SWOT analysis is described as:

SWOT

SWOT analysis is a tool for auditing an organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. Once key issues have been identified, they feed into marketing objectives. It can be used in conjunction with other tools for audit and analysis, such as PEST analysis and Porter's Five-Forces analysis. It is a very popular tool with marketing students because it is quick and easy to learn. An opportunity could be:

developing market such as the Internet.

Mergers, joint ventures or strategic alliances

Moving into new market segments that offer improved profits new international market vacated by an ineffective competitor threat could be:

new competitor in your home market

Price wars with competitors competitor has a new, innovative product or service

Competitors have superior access to channels of distribution

Taxation is introduced on your product or service word of caution, SWOT analysis can be very subjective. Do not rely on it too much. Two people rarely come-up with the same final version of SWOT. TOWS analysis is extremely similar. It simply looks at the negative factors first in order to turn them into positive factors. So use it as guide and not a prescription." http://www.marketingteacher.com/Lessons/lesson_swot.htm

SWOT analysis has been sued by the authorities of the FAA in discovering about the strengths and weaknesses of the company, such an analysis helps the organizational authorities to observe the strengths and weaknesses of the company and to develop quality strategies in order to remove the loopholes from the infrastructure of the organization. According to the SWOT analysis the weaknesses of FAA are as under:

FAA WEAKNESSES most often cited by employees are:

Management - Incompetent, weak, poorly trained supervisors and managers and their failure to hold employees responsible were the most often cited weaknesses. The need for technically knowledgeable managers was also cited

We need leaders with technical competence who understand the challenges they face ever day, not just those with management skills."

TRAINING - Lack of adequate training, particularly for supervisor and managers, lack of currency training for employees that deal with certified airmen and manufacturers, and lack of developmental training rated the most comment.

PERSONNEL/HUMAN RESOURCE ISSUES - Although the employee survey showed improvement on sexual harassment and hostile work environment issues, both still elicited comments.

Under- representation of women and minorities and poor employment practices also rated numerous responses. The union contracts (or lack of them) rated many, many comments.

AUTOMATION - The FAA is not keeping up with automation. Centralize databases with instant access, where information is entered only once. Lotus Notes received many comments. The people said it did not perform as advertised. The strength and number of comments suggested this is not just a problem of the staff being frustrated when faced with a new software program. Even as antiquated as cc:Mail was, many people feel it performed better than Notes does. http://apo.faa.gov/employee_comments/Employee-SP03/Weaknesses.htm

The above mentioned weaknesses of FAA states that these are the major loopholes of the organization and they should be eradicated at once so that the organization can use their maximum potential and can generate profitable results. If these weaknesses will not be eradicated or minimized then the resultant outcome would be very bad and the organization would suffer a lot. Therefore, it is advised to the organizational authorities that they should regularly do SWOT analysis and should definitely work on the improvement of the weaknesses of the organization so that proper working environment can be developed and the company can grow.

4.ALTERNATIVES:

This part of the paper will describe the various alternatives and solutions, which could help the organization to overcome the above mentioned problems and could help the authorities to implement new strategies. Before proceeding to the alternatives the paper will present information regarding the various threats, which are cited by the employees of FAA.

THREATS most often cited by employees are:

ACCOUNTABILITY/Management - Failure to hold contractors, suppliers, and employees accountable for quality, time and cost standards was cited as the biggest threat to the FAA's mission. FAA often hires ineffective or incompetent executives - part of the "good old boy" system? FAA doesn't train managers and supervisors effectively or hold them accountable.

WASTE - This threat matches the most numerous comments in the opportunity section of comments. Consolidate the regions, AT facilities and management. Staff grows at headquarters and regional offices but shrinks in the field.

WEATHER - Once again this matches comments from the opportunities section, "the FAA has recently begun to destroy the aviation weather program which if anything is in need of more attention rather that less."

RULE MAKING - In spite of the FAA mission to promote U.S. aerospace safety, rules are still being driven by industry pressure at the risk of sacrificing safety. This is contrary to our mission. One example is the sport pilot rule. Performance bonuses for speed of rule making need to be eliminated. It puts unfair pressure on management to push rules through without adequate understanding of implications and how it may promote or hinder other agency objectives. http://apo.faa.gov/employee_comments/Employee-SP03/Threats.htm

These threats are cited by the employees and are detected by conducting the SWOT analysis, these threats proves the fact that unfair practices and actions are going on in the organization and if these practices will not be stopped or obstructed then negative results will be generated. Therefore, the authorities should adapt measures, which could minimize these threats.

CHOICES AND ASSOCIATE CHOICES TO THE PROBLEMS:

There are many choices and solutions to the problems of FAA, these choices include that the organizational authorities should make researches and surveys and they should adapt new and effective computers so that their business can be benefited from the latest technology. The authorities should make appropriate selection from the various choices regarding the introduction of new computers and they should select the best. Secondly, the introduction of new staff is also a major problem and for this the organizational authorities should hire professionals who which could help the authorities to select right person for the right job. Similarly, the organizational authorities to stop the collision of the airliners should adapt effective measures and strategies. Finally, the review and derivation of new strategies, accountability and management and training and replacement of controllers, these problems read related to the organizational infrastructure and its framework therefore the authorities should apply correct and effective methodologies which could help them in minimizing these problems. The organizational authorities of FAA should hire financial advisers and professional accountants, which could review their accounts and can maintain their records. The strategy makers should make proper strategies and theses strategies should be in accordance with the rules and requirements of the FAA.

EXPLAIN HOW THE CHOICES WORK AND ADDRESS THE PROBLEM:

This part of the paper has provided relative alternatives and solutions for the addressed problems and these solutions if implemented, will definitely prove fruitful for the organization and would generate in greater profitability for the organization. These solutions are in accordance with the nature of the problem and they can solve the relative problems if the authorities would understand these solutions and would implement it properly. If on the other hand, these solutions would not be implemented properly then the problems will further increase in number and then it would become difficult for the FAA and its relative authorities to control the overgrowing problems.

5.RECOMMENDATIONS:

This part of the paper will provide recommendations regarding the problems and their relative solutions. The paper has addressed various problems of typical nature which are all related to the organizational infrastructure of the FAA.The paper has also presented relative solutions and alternatives for the addressed problems and these solutions are of effective nature, it is the responsibility of the organizational authorities to review the solutions and to implement the best choices from the relative solution.

THE BEST CHOICES TO PICK:

Although the alternatives which have been presented in the paper are all related to the problem and its in-depth nature but, the authorities should select the best option and should implement it accordingly so that the weaknesses of FAA can be transformed into strengths of the organization and the organization can make use of its strengths for its development.

RISKS/TRADE-OFFS, WHY BETTER THAN OTHER CHOICES:

Risk/Tradeoffs is a better choice than other choices because the risks and trade offs will help the organizational authorities of the FAA to implement the relative alternative solutions and they will see the difference in the profitability of the organization after the implementation of the strategies and relative solutions. Risk has to be taken in any organization because it is the major requirement of success, without taking risks the business will never flourish therefore the FAA should boldly face the challenges and should take risks so that effective strategies can be implemented and profits can be attained.

6. NEXT STEPS:

The paper has presented all the relative information regarding the problems and the solution of the FAA, the latest researches and findings states that the organizational authorities have adopted some of the solutions and alternatives and they are reviewing their strategies to overcome the growing number of problems. The responsible individuals have taken bold steps regarding these problems and will definitely succeed in their mission. They have also adopted the process of validation, it is defined as:

Validation can be viewed as a process of providing key stakeholders ('decision makers') with various types of information that together help them to make appropriate decisions about eventual. Thus, to be effective, those involved in validation should be aware of the information needs and decision-making criteria of these key decision makers. The type of 'information' that is required to support the 'validation' process depends on the type of stakeholder. System operators (controllers and pilots) will require contextual and often dynamic evidence to support understanding of potential behaviors. Thus real-time simulations and various forms of 'mock-up' or prototype are useful especially if they promote exploration of expected behaviors. Investors will require business cases and regulators will require safety cases." http://www.eurocontrol.fr/Newsletter/2002/November/Validation/ValidationEECnews4.htm