The document discusses observations and recommendations regarding the organizational structure and human resource management of Pakistan International Airlines (PIA). It notes that PIA has a tall organizational structure with many layers of management. Key operational departments do not directly report to the Managing Director, and there are issues with the bargaining power of unions, excess staff, demotivated employees, and operational inefficiencies. Many managers in PIA rose through the ranks as pilots but lack non-operational management skills. PIA has 427 employees per aircraft, significantly more than other airlines. Recommendations include streamlining the organizational structure, improving employee motivation through transparent promotion policies and pay scales, and reducing political influence in appointments.

1. Pakistan International Airlines Observations and recommendations regarding the Organizational structure and Human Resource Management

2. CEO Ryanair “PIA is one airline I would really want to head up as a challenge” – Michael O Leary

3. Facts PIA was formed through an ACT of Parliament - PIA’s Act. PIA is a corporation, governed by Board of directors. Any decision related to privatization of PIA would need a 2/3rd Majority of the Parliament. Only through acquiring outsourced services of limited services/functions it can bring better management practices vis a vis privatization. for this too it needs agreement form the board of directors as it is a major policy decision Every year MD PIA submits a Business Plan for the next period to the Board of Directors, which contains policy decisions and financial analysis of performance.

4. Positioning PIA prides itself as a premium air carrier. No compromise on Offices VIP Berths Food Inflight seravices Low cost carriers are different in all these aspects.

5. Core Problems A tall structure Bargaining power of employee unions Extra staff Demotivated employees Operational Inefficiencies Political Interests

6. Core Problems A tall structure Bargaining power of employee unions Extra staff Demotivated employees Operational Inefficiencies Political Interests

7. Revision No. 04/2010 CORPORATE ORGANOGRAM Annexure – I to Org. Order No. 18/ 2010 CHAIRMAN MANAGING DIRECTOR CHIEF INTERNAL AUDITOR G.M . CORP. SAFETY & Q.A. SA TO MANAGING DIRECTOR CHIEF ENGR. QUALITY ASSURANCE SR. G.M. COORDINATION OPS G.M PAX HANDLING SERVICES G.M. PUBLIC AFFAIRS SECRETARY PIAC DEPUTY MANAGING DIRECTOR DIRECTOR INFO. TECH. DIRECTOR HRA & C DIRECTOR MARKETING DIRECTOR P&L CHIEF FINANCIAL OFFICER DIRECTOR CORP. PLANNING G.M. FOOD SERVICES DIRECTOR FLT. OPS. DIRECTOR LINE MAINT. DIRECTOR Precion ENGG. DIRECTOR TRAINING & DEVELOPMENT DIRECTOR FINANCE MRO Cross Functional Team G.M. ORG. DEV. G M. PRE-ENGG. G.M. (TECH.) OPS. G.M REVENUE MANAGEMENT G.M. COMPUTER OPERATIONS G M. LOGISTICS SR. GM TRAINING & DEVELOPMENT G.M ACCOUNTING G.M. STANDARDS & INSPECTION G.M. S.I.T.E. GM NETWORK PLANNING G.M. PROCUREMENT G.M. COMMUNI- CATIONS G.M. HR MANAGEMENT G.M. REV. ACCTG. CE Line Maintenance CE Base Maintenance CE Engine Overhaul G.M. CREW PLNG. & SCHED. . GM MARKETING PLANNING CHIEF MEDICAL OFFICER G.M. FUNDS MGMT. G.M. NW & MSS G.M. CREW TRAINING CE Avionics Overhaul CE Aerospace Overhaul G.M. BUDGET & FM G.M. WORKS & PROJECTS G..M. PAX SALES G.M. NORTH (OPS) G.M. FUEL CTRL. & FIN SYS G.M. LEGAL G.M. INDUSTRY AFFAIRS CE Engg Business Dev. CE HR Training G.M. INDUSTRIAL RELATIONS G.M. CARGO & SPEEDEX CE Airworthiness Management CE Maint Ops Center

8. Observations 1st observation: key operational departments are not directly reporting to the MD for e.g.. engineering, flight ops, precision engineering 2nd observation: Corporate QA and Engineering QA are independent of each other. both should b merged as one department. 3rd observation: passenger services division should be part of marketing dept. 4th Observation. Planning is a function of respective departments, there is not need to have a separate department for it. 5th Observation: Departments have different divisions (GM) and each division has different sections (DGM); As per our book, a division has departments. 6th Observation: In PIA functional decision making is with respective GMs, while policy decision making is with MD–resulting in delays sometimes.

9. Observations Operational Personnel in Management MD – Operating Pilot GM Flight Operations – Operating Pilot GM Crew Training – Operating Pilot GM Ops Tech. – Operating Pilot GM CS & QA – Operating Pilot GM Central Control – Operating Pilot GMs Equipment (Operating Pilots) (They are perfect & experienced Pilots but lack management skills and are not available, specially when PALPA announces a strike) – Disturbs the managerial continuity.

10. PIA- 427 employees per aircraft

11. Futher Observations -demotivation Pay Scale Govt. Announcements of Annual Pay Increase of Govt. Employees is not followed. No time bound policy on holding Promotion Boards on regular basis. Difference in Pay Scale of Regular and Contractual Employees. Appointments: Regular, Contractual, Outsourced Services Political Influence – External Appointments Daily Wages Employees (4000) are hired through sub-contractor and later get regularized through President Order. (Daily wages category ranges from PG-1 to PG-9 or equivalent) = Backdoor Contractual Employees are offered Regularization at the cost of 50-60% net pay reduction.

12. Further observations Work Environment/Org. Culture Due to unions/association the work environment is not professional (banners, pressure groups, other activities). Bias Uneven provisioning of resources -some departments have all facilities some have none.

13. MD Horizontal Matrix Hiearchy Proposed Organogram Secretary PIA Special Assistant to MD Chief Internal Auditor Director Safety & QA Compliance DMD

14. Advantage New Proposed Directors - 8 GMs – 6 DGMs -29 DCE-9 Existing Directors – 11 GMs – 35 - CE - 9

15. THANK YOU 