Buddha Air
Buddha Air
Buddha Air
The business goal of the finance department in Buddha Air is to achieve higher and more
consistent profitability than achieved in the past. In Finance department, Buddha airline has two
departments:
I. Finance and budget control system: This system records revenues and expenses prepare and
generate its ledgers, trial balance, profit, loss account and balance sheet. And with the budget
control system, expenses are controlled.
II. Revenue Accounting System: This system based on cash value documents like passenger
ticket, Cargo coupon and excess baggage coupon that is used to generate revenue.
There are 26 total staff member presently working under the finance department. With only a
staff in Executive, 2 in manager position, 9 as an officer, 14 as supporting staff. The shortage of
human resources is seen in terms of quality and competency required for job.
Buddha Air is a dominant company among the other Nepali airline industry. It is planning to
increase its market share from 60% to 80%. To maintain and strengthens the competitiveness of
Buddha airlines, it must strategies its position in the market both internally and externally. To
expand and enhanced its services, Buddha air has to broaden its services all over Nepal. For this
they need to train and hire more number of employees.
In the first year of its services, Buddha air is planning to strengthen its financing department by
hiring and adding number of employees so, it is the role of Human resource Department to
analyze the requirement of human resource in finance department. For this, the need for human
resources is assumed to be as follows:
● Internal Promotion is the main thing we are doing in Buddha Airlines to enhance more
dedication on work and to motivate the employees. We will be training and hiring
employees who are sitting idle in other department.
● In the first year, we are decreasing the size of employees in marketing department as we
think that there are not much functions marketing department need to carry out. We are
planning to include 45 employees in financial services in the first year. External
recruiting is required in this department to gain skilled and experienced employees.
Buddha Air has planned to procure two new aircrafts in near future. Also it plans to start
financial services in the Eastern region. The total number of current executives is 7, Managers
are 41, officers are 74, supporting employee are 146 and attendant are 18.
Since Buddha airline has planned to start cross-border flights in near future, additional employee
are required in each department. So each year we require extra human resource to grow and
expand the airline. By the year 3, the required executives are 11, managers we required are 62,
required officers are 114, we require supporting officers 203 and attendant 144 in respective
department as shown in the excel.
In year 1, there are total 386 numbers of existing staff whereas the total of 426 numbers of staff
is required. So there is the shortage of 40 staffs in year 1
In year 2, Buddha year has 426 numbers of existing staff and total required staff is 486. There is
the shortage of 60 staff.
In year 3, the existing number of staff is 486 and required staff is 534, there should be additional
48 staff.
Meanwhile there was turnover of the staff in Buddha air in each year with 19, 21 and 24 number
of staffs respectively. Because of turnover of staff causes shortage of human resources in each 3
year, i.e., 59, 81, and 72 respectively.
To meet the estimated growth rate of 15 % in year 2 and year 3, company must retain its existing
employees for the future growth. The company needs to hire more skilled and technical
employees. Internal workforce is not sufficient to balance the gap of demand and supply. So the
external sources like recruiting from universities, employment agencies could be an option to
meet the gap.