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18-12-2013
Assignment
Submitted by:
Group # 6
Submitted to:
Sir Usama Najam
Human Resource Management
Group Members
Taimur Khan 111130
Raheela Farooq 111132
Ramsah Yaqub 111141
Hira Saeed 111144
Sarmad Naseer Lodhi
111153
Muhammad Taha Masood
111169
We are thankful to Mr. Shiekh
Bilal Rasool Senior HR Officer
at PIA Multan and Mr.
Muhammad Fakhur, assistant
HR officer for giving their
prestigious time from their
busy schedule to us for
conducting interview. We are
also thankful to Sir Usama
Najam for assigning this task
to us. This was helpful in
knowing Human Resource
Department of PIA and
understanding its system and
structure.
www.piac.com.pk
ORGANISATION STRUCTURE
MANAGING DIRECTOR
MUHAMMAD JUNAIDYUNUS
DEPUTY MANAGING DIRECTOR (ENGINEERING)
AVM QASIMMASSOD KHAN
DEPUTY MANAGING DIRECTOR (OPERATIONS)
CAPT. HUMAYUNJAMIL
CHIEF FINANCIAL OFFICER
MR. NAYYAR HAYAT
DIRECTOR - CORPORATE PLANNING
MR. SHAHNAWAZREHMAN
DIRECTOR - TRAINING & DEVELOPMENT
MR. MAQSOOD AHMED
DIRECTOR - ENGINEERING & MAINTENANCE
MR. S. SAMINUDDINNAQVI
DIRECTOR - SAFETY MANAGEMENT
CAPT. SYED ADNAN HARIS
DIRECTOR - FLIGHT OPERATIONS
CAPT. KHALID HAMZA
DIRECTOR - CUSTOMER SERVICES
MR. RASHID AHMED
DIRECTOR - PROCUREMENT &LOGISTCS
MR. OMAR RAZZAQ
DIRECTOR - HUMAN RESOURCE, ADMINISTRATION & COORDINATION
MR. S. AIJAZMAZHAR/ (SHEIKH BILAL RASOOL MULTAN)
DIRECTOR - MARKETING
MR. KHURRAMMUSHTAQ
DIRECTOR - PRECISION ENGINEERING COMPLEX
AVM HAMID SHAHAB HASHMI
Introduction of PIA:
Pakistan International Airlines formally known as PIA; or Pakistan International), is the national flag
carrier and a state-owned enterprise of the Government of Pakistan.Headquartered at Jinnah
International Airport in Karachi it operates scheduled services to 24 domestic destinations and 38
international destinations in 27 countries across Asia, Europe and North America. Its main bases are at
Karachi, Lahore and Islamabad/Rawalpindi.
The airline's secondary bases include Peshawar, Faisalabad, Quetta, Sialkot and Multan, from which it
connects the metropolitan cities with the main bases, the Middle East, Europe, and the Far East. It is
primarily owned by the Government of Pakistan and is regulated by the Ministry of Defense as an
autonomous body. It employed 18,043 people as of May 2008. And now as per current record 22000
employees are working in PIA at different designations.
History and Background of PIA:
Birth of a Nation, Birth of an Airline:
Air transport has probably never been more important to the development of a new nation than in the
case of Pakistan. In June 1946, when Pakistan was still in the offing, Mr. Mohammad Ali Jinnah, the
Founder of the upcoming nation, instructed Mr. M.A. Ispahani, a leading industrialist, to set up a
national airline, on a priority basis. With his singular vision and foresight, Mr. Jinnah realized that with
the formation of the two wings of Pakistan, separated by 1100 miles, a swift and efficient mode of
transport was imperative.
Orient Airways Takes to the Skies
On 23rd October 1946, a new airline was born. Initially registered as a pilot project in Calcutta, Orient
Airways Ltd. had at its helm Mr. M.A. Ispahani as Chairman and Air Vice Marshal O.K. Carter as General
Manager. The new carrier's base remained in Calcutta and an operating license was obtained in May
1947.
Four Douglas DC-3s were purchased from Tempo of Texas in February 1947 and operations commenced
on 4th June 1947. The designated route for Orient Airways was Calcutta-Akyab-Rangoon, which also
happened to be the first post-war international sector to be flown by an airline registered in India.
Within two months of Orient Airways' operational beginnings, Pakistan was born. The birth of a new
nation generated one of the largest transfers of population in the history of mankind.
Orient Airways, along with the help of BOAC aircraft which had been chartered by the Government of
Pakistan, started relief operations and transportation of people between Delhi and Karachi, the two
capitals. Subsequently, Orient Airways transferred its base to Pakistan and established a vital link
between Karachi and Dacca, the two capitals of the two wings of Pakistan. With a skeleton fleet of just
two DC-3s, three crew members, and twelve mechanics, Orient Airways launched its scheduled
operations in a fairy-tale manner. The initial routes were Karachi-Lahore-Peshawar, Karachi-Quetta-
Lahore and Karachi-Delhi Calcutta-Dacca. By the end of 1949, Orient Airways had acquired 10 DC-3s and
3 Convair 240s which were operated on these routes. In 1950, it had become increasingly apparent that
additional capacity would have to be inducted to cater to the growing needs of the sub-continent.
A New National Flag Carrier for Pakistan
Orient Airways was a privately owned company, with limited capital and resources. It could not be
expected to grow and expand independently. It was then that the Government of Pakistan decided to
form a state-owned airline and invited Orient Airways to merge with it. The outcome of the merger was
the birth of a new airline, through PIAC Ordinance 1955 on January 10, 1955.
In addition to transport activities, Orient Airways had established the nucleus of overhaul and
maintenance facilities and acquired trained pilots, engineers and technicians, measures which proved to
be a great asset for PIA during its teething phase.
PIA’s First International Service
The year 1955 also marked the inauguration of the fledgling airline's first scheduled international service
- to the glittering, glitzy capital city of London, via Cairo and Rome. Initially, there was much criticism, as
the public could not comprehend or justify the need to operate an international route when, in their
opinion, other projects vital for a developing country should have been given a higher priority. However,
PIA's focus was, and continues to be, to serve the Pakistani community at large. The provision of
transportation to expatriates has remained one of the foremost priorities of the national airline.
Moreover, PIA earned substantial foreign exchange through international services, which it invested in
the purchase of aircraft and spare parts, as fleet expansion was a grave necessity for the airline.
Mission:
 Employee teams will contribute towards making PIA a global airline of choice
 Offering quality customer services and innovative products
 Participating in global alliances
 Using state-of-the-art technologies
 Ensuring cost-effective measures in procurement and operations
Vision:
PIA's vision is to be a world class airline exceeding customer expectations through dedicated employees,
committed to excellence.
Values:
 Customer Anticipation
Contrivance, managing, and Competitive duty
 Service
Personalized and gracious
 Cohesiveness
Respect for Individuals, Teamwork, and Effective Communication
 Integrity
Business Ethics, Accountability, and Transparency
 Reliability
Loyalty and Consistency
 Safety
Passengers, Employees, Environment, and Health
Slogan:
Great people to fly with.
Achievements and recognition:
PIA is the first airline from an Asian country, to fly the super configuration.
PIA has been recognized due to the following other reasons:
 First Asian airline to operate a jet aircraft.
 First Asian airline to be granted maintenance approval by the US Federal Aviation
Administration(FAA) and the Air Registration Board, predecessor of the British Civil Aviation
Authority(CAA).
 First non-communist airline to fly to the people`s Republic of China and operate a service
between Asia and Europe via Moscow.
 First airline in Asia to induct the new technology Boeing 777-300 aircraft.
 First airline in the world to induct Boring 777-200LR, the world`s longest range in commercial
airliner.
 First airline in the world to take delivery of the Boeing 777-200LR world liner (Longer Range
Variant).
 Pakistan International Airlines Flight Services Department was awarded the ISO 9001:2000
certification award during May 2006.
 First airline in Pakistan to operate a flight with an all-female crew at command in the cabin.
 First airline in the world to operate the Boeing 777-200ER, 777-20LR and 777-300ER altogether –
all the three variant available on the market.
 PIA Flight Kitchens in Karachi were awarded the HACCP Certification.
SWOT Analysis:
Strengths:
 One of the enduringness of PIA is that it has its assets like hotels and restrooms almost all over
the worlds. As a national airline of Pakistan, it can land the air planes in either city, in case of
emergency.
 Domestically, PIA has a highest market share.
 PIA is offering its services at affordable rates.
 PIA has 37 international destinations, routes and 27 domestic destinations.
Weaknesses:
 Political Involvement
 Depravity
 Mismanagement
 Lack of promotion
 Few operating air planes and fleets
 Oil Prices fluctuations
Opportunities:
 PIA has huge potential market if it upgrades it fleets.
 By proper operations it can generate high revenues as it has largest domestic route.
 It has a very good customer support program; by using it efficiently it can attract more
customers.
 PTDC provides favorable market for domestic as well as international sector for the airlines.
To promote tourism PIA with the help of PTDC initiated a low fare programs towards Gilgit and
Chitral.
 PIA can retain a price competitive edge as consumers are price sensitive.
Threats:
 Privatization
 Other foreign and private airlines.
 Negative perception about the country, terrorism and corrupt politicians
 Politically precarious
 Unions
Unions:
PIA offices across Pakistan have got several employee unions which employees think that is beneficial at
employees end. It is however not good for the organization itself.
Following are the unions:
 People’s Union of PIA backed by PPP.
 Air league backed by PMLN
 Piyasi backed by Jamat-i- Islami
 United MQM backed by MQM
The unions have the responsibility to work for the welfare of employees therefore employees of PIA
have joined different unions in order to make their future secure. Unions stand for their respective
employees in case of any discrimination. These are the influence of different unions that it makes
PIA to privatize because if PIA become privatize the PIA management will terminate the excessive
employees which is one of the factors that put PIA into financial crises. The union leader has a right
to argue with MD on the behalf of other members.
PIA Revenue Management System:
In the past few years, most leading airlines of the world have adopted a specialized automated system
called the Revenue Management System (RMS) to manage fares offered to their customers. PIA, keeping
abreast with the latest technological changes has decided to adopt this model. Following its successful
trial that started in June 2007 at a number of stations, PIA is pleased to announce the formal launch of
Revenue Management System on its domestic and international routes.
RMS is a fairly simple computer based module that links varying fare levels to the available seat capacity
of the aircraft in accordance with the assessed demand, mutually benefiting the customer and PIA.
Customers who would previously get only one standard fare for a traveling class of their choice can now
plan their travel well in advance and purchase their tickets at greatly discounted rates. The RMS has
been programmed in such a way that it offers 5 different fares for Economy, 3 for Economy Plus and 4
for Business Class. The cheaper fares get taken up by those who book their seats early and immediately
purchase their tickets. In effect, the earlier one buys…the cheaper one flies. Some of these new fares at
times are even lesser than the fares charged under the previous standby facility for which the customers
were required to queue up at the airport, a couple of hours prior to flight departure. This new system of
flexible pricing would particularly benefit the price-sensitive customers, as they can purchase in advance
and enjoy reduced fares, which gradually increase as the flight approaches close to the departure date.
Price sensitive customers can also benefit if they plan their trip during the lean travel season when many
more low priced seats will be available.
In brief, the Revenue Management System creates a win-win situation for both the customer and PIA.
Now fewer people would be paying more, and more people will be paying less to fly to their desired
destination.
Human Resource Management at PIA:
Since 22000 employees are currently engaged in serving PIA and these employees are figured to be the
valuable for the organization so the management of these employees is a big challenge for HR managers
engineering is the biggest department of PIA after which is IT department, marketing, and finance. In
average organizations there is only one human resource manager who is taking over all the
responsibilities but as PIA is a big government organization it has conglomeration of 10 HR managers at
each city including Lahore, Quetta, Karachi, Peshawar, and Islamabad. In Multan there is only one senior
Human resource officer i-e is Sheikh Bilal Rasool. PIA has de- concentrated some of its departments
though there are others which are centralized. All the small departments at PIA have been aggregated
under one HR manager and the application of corporate policies in these departments is same as in
others.
According to Sheikh Bilal Rasool and assistant Human Resource Muhammad Fakhur, some of the
functions are being centralized and only upper management is responsible for the operations of that
particular functions. For the performance appraisal reports and for the posting of employees to foreign
stations, the data is being collected from human resource department. The performance standard is ACR
i-e Annual confidential Report. The managers are responsible for measuring ACR. The steps involved in
Human Resource Management Process are as follows:
Human Resource Planning:
HRP is basically a process by which an organization ensures that it has the right number and kinds of
people, at the right place, at the right time, capable of effectively and efficiently completing those tasks
that will help the organization achieve its overall objectives.
The industrial engineering section is responsible for the human resource planning. It is the
responsibilities of this department to analyze the required manpower. For the purpose of human
resource planning, human resource budget has a high consideration and value.
HRB initiates the preliminary requirements concerning vacancies. It is prepared by industrial engineering
department.
As PIA is a very vast organization working in human resource and administration, marketing, corporate
planning, information service, finance, flight services, flight operations, engineering, procurement and
logistics; and customer services. It is very complicated to comprehend the complete human resource
planning process in one interview. The HRB department itself canvass the requisite of workforce w.r.t
each department as in flight operations department the workforce required is hooked on the flight
stations on which flights would be landing, or take off. The flight staff (cabin crew, air hostess,
engineers, technicians, kitchen crew) that would be stage at each station to serve the flight, because
Human Resource Planning
Recruitment
Selection
Orientation
Training and Development
Performance Appraisals
Compensation and Benefits
Career Development
once the flight lands on one destination the crew needs to be changed which varies from destination to
destination.
Job Analysis:
PIA is the member of IATA (international air transportation association) and it is mandatory for PIA to
have an IOSA (IATA operational safety audit) after every two years. “This IOSA audit which should be
done by an IATA approved organization is valid for 2 years. IOSA emphasis PIA to have a manual
containing all the rules regulation and policies, the job description, responsibilities and duties of each
job must be documented and PIA fulfills all these requirements.”
Recruitment:
“The function of recruitment is actually to fulfill the man power requirement of PIA Organization”
The human resource department first determines the vacancies which need to be filled up by internal
promotions. If there is no availability of employees for the vacancy than the external recruitment
process is followed.
External Recruitment
To encourage external hiring PIA publicize the vacancy on the leading newspapers like Dawn, Jang and
express. Other than this, the vacancy post is also publicized on PIA website.
Internal Recruitment
“Internal Recruitment is done by advancing the rank of any current employee by ascertaining its
capacities, for this the human resource managers assisted by the performance appraisals of the
employees which has a record of their performances. The succession planning is done accordingly.”
Downsizing
The downsizing strategy is used to cut down over numbered employees. At PIA there are almost 70 air
planes and among those 70 air planes only 26 are being operated. PIA has 22000 employees which are
over numbered.
Outsource:
PIA has outsourced the following departments to certain companies. In Multan’s scenario as well as in
other Punjab region the daily wage employee hiring is granted to United HR Company and security
guard hiring is outsourced to ZINC Corporation.
Selection
For the competent hiring PIA selection varies from one department to another department which means
each department has different selection procedures and methods. The selection of airhostess has the
procedure that includes grooming test, height test, and the medical test (the checkup of their skin is also
performed). The selection process of cockpit crew has the procedure of conducting tests. PIA takes the
simulation tests as well. The tests are generally taken before interviews. There are two methods used by
PIA for all types including written tests and interviews. The hiring of the cockpit crew and airhostess is
centralized to the head office. “These written tests are intentionally made knotty and the content in it is
also very difficult. So this way the incompetent employees get eliminated ultimately and the selection
process becomes easier for PIA”.
The selection process follows the following steps
1-Application Form
Application forms are must for a candidate to fill, if he/she is applying for respected seat or position.
The candidates are asked to provide the following information
 Education background
 If he/she has applied in PIA before or not.
 Present job pay & source of income
 Number of children’s if married
 Experience is asked if he/she has worked before in any other company or organization.
Interview
The interview is conducted by the panel which includes the upper officers, supervisors and the
department head. Both the structured and unstructured questions are asked in the interview.
Physical Test
It is the first selection test in which the physical requirement for the job of the applied candidate is
determined. The test includes the determination of height, weight and skin quality.
Grooming Test
In the grooming test, men and women exhibit themselves in a manner, both physical and behavioral,
beseeming the job. In this test women’s make-up skills are also checked for the airhostess position.
General Test
Candidates’ general knowledge is tested both written and oral. The National Testing Service conducts
these tests.
On the basis of these tests, the merit list is displayed and the competent candidates are hired.
PIA has EEO system. No glass ceiling or reverse glass ceiling has been observed but sometimes due to
upper hierarchy pressure ill eligible candidates are hired.
Orientation
Orientation is conducted formally in PTC Karachi and Islamabad.
Socialization:
There is not such formal way to make employees learn the trends of the organization. Newly hired
employees learn the culture of the organization by interacting with the previous employees, sub
ordinates and colleagues.
Training and Development:
For the training purpose SOPS are developed, Standard Operating Procedures (SOP) . An initial training is
given to all the newly inducted employees to build the basic knowledge, skills and abilities required to
perform their jobs efficiently and with the passage of time as the new technology introduces or other
changes in the market situations, trainings are given to the existing employees.
PIA Training Center:
PIA Training Center is an established airline training institution that promotes the highest value of
aviation instruction. It has advanced training infrastructure, by local and international regulatory
authorities such as CAA, ICAO, and IATA. The PIA Training Center provides quality training to PIA's pilots,
engineers, air hostesses, and to employees of other associated PIA divisions.
Courses offered at PTC:
 Customer Service
 Engineering & Maintenance
 Flight Operations
 Information Technology (CBT)
 Management
Manual and equipment based trainings:
PIA also provides the manual and equipment based training to almost 10000 employees each year.
In the manual training following programs are offered.
 Flight simulators
 Cabin mockup mini airport (Mocks ups are the hypothetical air planes and airports that are
artificially made)
 Language lab
 Electronic labs
 Workshops
 CBT (computer based training)
The classrooms are equipped with advance instruments. Moreover, the facilitators are highly qualified
and highly trained themselves.
A fundamental grooming is given to the airhostess after their induction and initially they serve the small
airplanes but with the passage of time they are given training courses of large airplanes including Boeing
and airbus and similar are the case with the cockpit crew, engineers and technicians. They are initially
trained for small airplanes like ATR`s and then they are given trainings for airbus and Boeing planes after
getting trained these employees go thru an oral test and then they get the license and certificates to
work at Boeing and airbus.
Examination Unit of PIA Training Center (PTC)
The examination unit of PTC has an important role in managing examinations of Aerospace and Avionics
Training Units to meet the regulatory requirement of CAA and to maintain a liaison with CAA. This unit
has developed computer based examination system through which the employees are assessed.
Foreign training programs:
In this training program either the full team is send abroad or just the supervisor go and gets the training
and train the other subordinates by conducting the workshops. This is cost beneficial; rather sending the
whole crew the supervisor gets the training.
Performance Appraisals:
For To evaluate and analyse the performance, performance appraisals are established; by which most of
the succession planning is done. Muhammad Fakhur told that the supervisor of each worker and the
department is responsible for evaluation he, then submits the evaluation report of the respective
subordinates to the HR. department.
The evaluation of employees till grade 6 is done by their immediate supervisor and is considered
authentic and final. At the assistant level the immediate boss done the performance evaluation.
There is grading system in which employee’s skills are graded 1 till 5 for the total of almost 40 skills and
the employees getting 35+ points have more chances to be promoted.
At the end performance appraisal form is attached with the instruction form that provides the
guidelines for conducting performance appraisals.
Compensations and Benefits:
The compensation and benefits are provided as pre-defined criteria for the hierarchy level. The
allowances include foreign allowance and domestic allowance.
 SOCIAL SECURITY
 MOBILE/TELEPHONE CEILING(postpaid numbers)
 ADVANCE AGAINST ACCOMADATION ALLOWANCE
 DOMESTIC STATIONS ALLOWANCE
 CAR/FUEL ALLOWANCE
 ENTERTAINMENT
 BOOKS & MAGAZINES
 INDEXATION/COMPENSATION
 SUBSIDISED MEAL FACILITIES
 OVER TIME
 Washing/uniform/kit maintenance.
 Grooming allowance for females
Domestic Allownce:
 RENTAL CEILING
 ENTERTAINMENT CEILING
 FUEL CEILING
Extra BENEFITS:
 Air ticketing
 free medical
 loan benefits
 retirement benefits and Hajj package
Concluding, PIA offers several incentives to its employees but these incentives depend upon the
status and designation of the employee.
Corporate Safety & Quality Assurance
The PIA Corporate Safety & Quality Assurance Division ensures safe operations by monitoring
implementation of international standards and recommended industry practices. Strict adherence to
Safety & QHSE policy and procedures during flight as well as in ground operations helps in maintaining
safe workplace environment. Corporate Safety & QA Division is responsible for effective implementation
of Safety Management System (SMS), Health Safety & Environment (HSE) Program, Flight & Ground
Safety Management, Flight Data Monitoring & Analysis Program, Emergency Response Planning (ERP)
and Fire Protection Services as well as a robust Quality Assurance Program encompassing overall
operation of the airline.
IOSA (IATA Operational Safety Audit) Certification
PIA is proudly maintaining its IOSA Certification and thus IATA Registration since 2005. The IATA
Operational Safety Audit Program is an internationally recognized and accepted system for assessing the
operational management and control systems of an airline.
IOSA is based on industry proven quality audit principles and structured to ensure a standardized audit
with consistent results. Airlines that meet all IATA Standards Manual (ISM) standards become registered
with IATA as an IOSA Operator. IOSA Audit covers Organization and Management System, Flight
Operations, Operational Control & Flight Dispatch, Aircraft Engineering & Maintenance, Cabin and Cargo
Compartment Operations, Aircraft Ground Handling, Cargo Operations and Operational Security of the
airline.
By virtue of PIAs IOSA Certification, PIA is able to ensure safety of passengers as well as employees.
Fire Safety-in the Workplace and at Home
PIA has made a number of arrangements to handle incidental fires and allied hazards. First Aid Fire
Stations have been set up in Karachi, Lahore and Islamabad, and Fixed Fire Protection Systems have
been installed at sensitive premises. PIA's locations are equipped with portable fire extinguishers and a
range of other fire safety devices. All the installed equipment is inspected regularly and maintained in
accordance with international standards.
Fire Safety Courses are conducted regularly to equip employees with firefighting skills and to impart
critical knowledge of preventive measures. Fire Prevention Courses are also conducted at the Staff
Township and PIA Model Schools so that employees and their families can take appropriate fire
prevention measures at home.
PIA's Corporate Safety & QA Division also actively engages in advocacy sessions to create awareness
through print publications and sharing of experiences. Working in collaboration with the Fire Protection
Association of Pakistan, PIA is committed to creating and promoting a culture of safety at a nation-wide
level. The division's future plans include running fire and safety awareness sessions at government and
private schools.
Emergency Response Planning
Passenger care is an airline's most crucial responsibility. Acknowledging the significance of Emergency
Response Planning (ERP), PIA has set up a discrete section to handle emergencies. The Emergency
Response Planning Section has developed an Emergency Response Manual and manages Emergency
Response Center Teams, Field Teams, Family Assistance and Support Teams, and Volunteers. The ERP
Section also trains volunteers in the areas of aircraft emergencies, rescue, basic first aid, and firefighting
to effectively respond to natural disasters.
Emergency Response Facilities include the computerized data storage of teams and volunteers with an
automated emergency call out system. This software application also provides a technology supported
callback system for contacting families of the affected.
PIA’s Emergency Response Planning Section hopes to contribute meaningfully towards national capacity
building in the area of emergency management, through financial and human resource investments.
HSE Management System (Health, Safety & Environment)
PIA has been proactive in understanding the needs of time and has launched the Health, Safety &
Environment (HSE) initiative. The objective of this program is to mature the airline’s HSE systems to a
level which will eventually lead to OHSAS-18001 and ISO-14001 certification.
As part of this program, PIA conducts organization wide HSE trainings, development of HSE objectives,
implementation of HSE system procedures and management reviews to assess the continual
effectiveness of the HSE system. These accomplishments will make PIA a safer airline, paving the way for
OHSAS and ISO certifications.
Corporate Social Responsibility
Committed to Creating a Better World
PIA is driven by the highest standards of corporate governance and social responsibility. As a public
sector organization and a business leader, PIA believes in building strong relationships with customers,
partners, employees, and the communities in which it operates. The organization's values are
exemplified in a range of corporate initiatives designed to impact positively on the lives of multiple
stakeholders. PIA practices active corporate citizenship through social services, support for non-profit
organizations, medical services for employees, the promotion of sports, and educational initiatives.
PIA has institutionalized the practice of good governance by establishing a Corporate Social
Responsibility Committee. The Committee provides a platform to evaluate, update, and recommend
best practices as PIA continues on its mission to adhere to business ethics and stamp out corruption.
Corporate Social Responsibility (CSR) is woven into the fabric of daily operations at PIA.
PIA employees wholeheartedly contribute to its commitment to develop the organization, the
communities in which we function, and the country. PIA is proud of its human resource as they in many
ways initiate & actively participates in welfare missions. PIA is gifted with teams of professionals who
pursue excellence and deliver confidence. With a Leadership that understands the true meaning of
Social Accountability, PIA has been able to realize vision of social accountability.
Social Services
Reaching Out to Help IDPs
PIA is committed to extend a helping hand, to distressed communities of society, whenever needed. PIA
believes in contributing for the betterment of society by, working for and learning from the experience
of, setting unprecedented examples of cooperation and support.
In view of the disturbances in the northern part of the country, millions of people were constrained to
leave their homes and dwell in camps set in peaceful areas. To address the suffering of these distressed
persons including a large number of children needed both tangible and emotional support. At these
crucial moment PIA risen to the needs of the nation and decided to activate its Emergency Response
Centre for collecting Relief Goods for onward dispatch to the people in distress in an efficient and
transparent manner.
Various individual contributors, institutions and welfare bodies from different parts of the world also
availed this wonderful service from PIA. Collection centers were established in Karachi, Lahore &
Islamabad and more than 300,000 Kgs of relief goods were transported.
Boy Scouts Association
The PIA Boy Scouts Association (PIA-BSA), a provincial segment of the Pakistan Boy Scouts Association, is
based on the value system of the Scout Promise and Law. The PBSA's mission is to actively train and
develop members through Youth Training Programs.
Scouting contributes to the education of young people and helps build a better world where individuals
can play constructive roles in society. The PIA-BSA's major contributions include providing Haj services at
domestic and Saudi Arabian airports, engaging in activities with the Heritage Association of Pakistan,
assisting special children at PIA's Al-Shifa Trust, and participating in a number of health, cleanliness,
literacy, tree plantation, drug prevention, and blood donation drives. The PIA-BSA has also started a
cricket academy where thousands of youth have received cricket coaching from PIA's renowned test and
first-class cricketers. Following the earthquake tragedy of 8th October, 2005, the PIA-BSA immediately
deployed contingents in Islamabad followed by scout deployments in Balakot, GarhiHabibullah,
Muzaffarabad, and Bagh where relief goods were distributed and emergency services were rendered.
PIA Planetariums (Karachi)
Through a combination of projectors, optics, electronics, and precision engineering, PIA offers a range of
cosmic experiences to the Pakistani people. The PIA Planetariums enable the viewing of virtual
universes, replete with stars, planets, and nebulae and visitors throng the planetariums to look at
astronomical phenomena such as eclipses, alien landscapes, planets, and the sun. PIA is the only airline
in the world to have invested in an innovative and educational planetarium project that is open to the
general public at affordable rates.
PIA Horticulture
Plants and trees provide habitat, shelter, food, materials and medicines to human beings and animals.
Realizing the significance of a healthy and pollution-free environment, PIA set up a horticulture division
in 1996. In addition to maintaining indoor and outdoor plants and trees, PIA Horticulture provides
seasonal flowers for display in PIA's offices and for a range of events, winning several awards and
accolades at flower exhibitions across the country. To reduce pollution and contribute towards a
greener Pakistan, PIA Horticulture actively participates in tree plantation campaigns during each spring
and monsoon season.
Support for Non-Profit Organizations
As a responsible corporate citizen PIA has a special social commitment which it takes very seriously. PIA
is engaged and actively supports various social projects.
As part of its corporate social responsibility initiatives, PIA fully sponsors Al-Shifa Trust, which provides
relief and rehabilitation services to special children suffering from cerebral palsy and other motor
disorders. Besides this, PIA has been providing help to charities and trusts.
Career Development
The staff development department is responsible for career development program of employees but
unfortunately the trainings which are mentioned for the development programs cannot be
implemented and the department is just for the sake of name.
Conclusion:
As per the interview and website analysis, it seems that PIA human resource policies are very effective
but these polices are not implemented. The HR manager in Multan told that PIA is not suffering from
any financial crises. The upper management makes rumors regarding this so that they can have benefit
of the revenue from PIA. Several of the PIA previous managing directors are now managed to open their
own airline companies. There is a corruption at the top level which restricts PIA to perform better as
compare to the other airlines. That was PIA that made Emirates to establish and helped it in its
progression. There are some recommendations which will be helpful in its operations.
Recommendations:
Reduce the over-numbered employees :
PIA must offer golden handshakes and early retirements to the number of employees which are at
surplus. This way the organization can get rid of overloaded employees.
Improve technical training programs:
As far as technical training is concerned, PIA has come across 4 major incidents because of the technical
faults in its airplanes. So this organization must improve the technical training programs. Although it had
several training programs but as compare to other airlines, PIA needs to increase the quality and
quantity of training programs.
Improve interpersonal skills:
If we talk about the interpersonal skills there are a lot of annoyed customers due to the unsatisfactory
services of customer services representatives. Being a big organization PIA must train its employees for
their interpersonal skills.
Overcome late flights and cargo problems:
PIA has become famous for late flights and cargo problems which are commonly held to the mistake of
the staff. If proper evaluation of staff performance is done then there would be no such problems
occurring.
Decrease the overhead cost and expenses:
This organization must decrease its overhead costs and its expenses else it would become difficult for
this organization to serve the customer effectively and efficiently.
Regarding Human Resource following recommendations should be considered:
Hire employees on contract:
Rather than permanent jobs, employees must be offered contract based jobs in order to cut down the
expenses as the contract based employees won’t be given the benefits like the permanent employees.
Proper check and balance of HR polices:
There should be a proper monitoring department to have a check and balance on whether the HR
policies and practices are implemented in their real sense.
Focusing On Career Development:
PIA needs to be focused towards the career development of its employees as the staff development
department is not performing its duties and responsibilities and for a good organization every function is
considered to be important and crucial.
Implement employee retaining strategies:
PIA should implement some strategies to retain its efficient employees as the airhostess turnover rate as
well as other employees’ turnover rate is very high. PIA has to groom the strategies like increasing
allowances and providing healthy working environment to its employees.
Other than these HR department of PIA should also focus on the following
 Act As an independent organization
 Exterior interference should be controlled
 Hiring on merit Bases
 Upper hierarchy should selected internally
 Non-financial rewards should be encouraged
 Unions should not be backed by the political parties
 Technological advancements
 Business proficiency
 Non ethical acts should be avoided
 Organization charts and process charts missing
 Trend analysis
 increasing advertisements channels
 Checking the employees background and history
 Exit interview should be conducted
 awarding employees with the stocks
 Salary survey
References:
www.piac.com.pk
www.ukessays.com
PIA Human Resource
PIA Human Resource
PIA Human Resource

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PIA Human Resource

  • 1. 18-12-2013 Assignment Submitted by: Group # 6 Submitted to: Sir Usama Najam Human Resource Management Group Members Taimur Khan 111130 Raheela Farooq 111132 Ramsah Yaqub 111141 Hira Saeed 111144 Sarmad Naseer Lodhi 111153 Muhammad Taha Masood 111169 We are thankful to Mr. Shiekh Bilal Rasool Senior HR Officer at PIA Multan and Mr. Muhammad Fakhur, assistant HR officer for giving their prestigious time from their busy schedule to us for conducting interview. We are also thankful to Sir Usama Najam for assigning this task to us. This was helpful in knowing Human Resource Department of PIA and understanding its system and structure. www.piac.com.pk
  • 2. ORGANISATION STRUCTURE MANAGING DIRECTOR MUHAMMAD JUNAIDYUNUS DEPUTY MANAGING DIRECTOR (ENGINEERING) AVM QASIMMASSOD KHAN DEPUTY MANAGING DIRECTOR (OPERATIONS) CAPT. HUMAYUNJAMIL CHIEF FINANCIAL OFFICER MR. NAYYAR HAYAT DIRECTOR - CORPORATE PLANNING MR. SHAHNAWAZREHMAN DIRECTOR - TRAINING & DEVELOPMENT MR. MAQSOOD AHMED DIRECTOR - ENGINEERING & MAINTENANCE MR. S. SAMINUDDINNAQVI DIRECTOR - SAFETY MANAGEMENT CAPT. SYED ADNAN HARIS DIRECTOR - FLIGHT OPERATIONS CAPT. KHALID HAMZA DIRECTOR - CUSTOMER SERVICES MR. RASHID AHMED DIRECTOR - PROCUREMENT &LOGISTCS MR. OMAR RAZZAQ DIRECTOR - HUMAN RESOURCE, ADMINISTRATION & COORDINATION MR. S. AIJAZMAZHAR/ (SHEIKH BILAL RASOOL MULTAN) DIRECTOR - MARKETING MR. KHURRAMMUSHTAQ DIRECTOR - PRECISION ENGINEERING COMPLEX AVM HAMID SHAHAB HASHMI
  • 3. Introduction of PIA: Pakistan International Airlines formally known as PIA; or Pakistan International), is the national flag carrier and a state-owned enterprise of the Government of Pakistan.Headquartered at Jinnah International Airport in Karachi it operates scheduled services to 24 domestic destinations and 38 international destinations in 27 countries across Asia, Europe and North America. Its main bases are at Karachi, Lahore and Islamabad/Rawalpindi. The airline's secondary bases include Peshawar, Faisalabad, Quetta, Sialkot and Multan, from which it connects the metropolitan cities with the main bases, the Middle East, Europe, and the Far East. It is primarily owned by the Government of Pakistan and is regulated by the Ministry of Defense as an autonomous body. It employed 18,043 people as of May 2008. And now as per current record 22000 employees are working in PIA at different designations. History and Background of PIA: Birth of a Nation, Birth of an Airline: Air transport has probably never been more important to the development of a new nation than in the case of Pakistan. In June 1946, when Pakistan was still in the offing, Mr. Mohammad Ali Jinnah, the Founder of the upcoming nation, instructed Mr. M.A. Ispahani, a leading industrialist, to set up a national airline, on a priority basis. With his singular vision and foresight, Mr. Jinnah realized that with the formation of the two wings of Pakistan, separated by 1100 miles, a swift and efficient mode of transport was imperative. Orient Airways Takes to the Skies On 23rd October 1946, a new airline was born. Initially registered as a pilot project in Calcutta, Orient Airways Ltd. had at its helm Mr. M.A. Ispahani as Chairman and Air Vice Marshal O.K. Carter as General Manager. The new carrier's base remained in Calcutta and an operating license was obtained in May 1947. Four Douglas DC-3s were purchased from Tempo of Texas in February 1947 and operations commenced on 4th June 1947. The designated route for Orient Airways was Calcutta-Akyab-Rangoon, which also happened to be the first post-war international sector to be flown by an airline registered in India. Within two months of Orient Airways' operational beginnings, Pakistan was born. The birth of a new nation generated one of the largest transfers of population in the history of mankind. Orient Airways, along with the help of BOAC aircraft which had been chartered by the Government of Pakistan, started relief operations and transportation of people between Delhi and Karachi, the two capitals. Subsequently, Orient Airways transferred its base to Pakistan and established a vital link between Karachi and Dacca, the two capitals of the two wings of Pakistan. With a skeleton fleet of just two DC-3s, three crew members, and twelve mechanics, Orient Airways launched its scheduled operations in a fairy-tale manner. The initial routes were Karachi-Lahore-Peshawar, Karachi-Quetta- Lahore and Karachi-Delhi Calcutta-Dacca. By the end of 1949, Orient Airways had acquired 10 DC-3s and 3 Convair 240s which were operated on these routes. In 1950, it had become increasingly apparent that additional capacity would have to be inducted to cater to the growing needs of the sub-continent.
  • 4. A New National Flag Carrier for Pakistan Orient Airways was a privately owned company, with limited capital and resources. It could not be expected to grow and expand independently. It was then that the Government of Pakistan decided to form a state-owned airline and invited Orient Airways to merge with it. The outcome of the merger was the birth of a new airline, through PIAC Ordinance 1955 on January 10, 1955. In addition to transport activities, Orient Airways had established the nucleus of overhaul and maintenance facilities and acquired trained pilots, engineers and technicians, measures which proved to be a great asset for PIA during its teething phase. PIA’s First International Service The year 1955 also marked the inauguration of the fledgling airline's first scheduled international service - to the glittering, glitzy capital city of London, via Cairo and Rome. Initially, there was much criticism, as the public could not comprehend or justify the need to operate an international route when, in their opinion, other projects vital for a developing country should have been given a higher priority. However, PIA's focus was, and continues to be, to serve the Pakistani community at large. The provision of transportation to expatriates has remained one of the foremost priorities of the national airline. Moreover, PIA earned substantial foreign exchange through international services, which it invested in the purchase of aircraft and spare parts, as fleet expansion was a grave necessity for the airline. Mission:  Employee teams will contribute towards making PIA a global airline of choice  Offering quality customer services and innovative products  Participating in global alliances  Using state-of-the-art technologies  Ensuring cost-effective measures in procurement and operations Vision: PIA's vision is to be a world class airline exceeding customer expectations through dedicated employees, committed to excellence. Values:  Customer Anticipation Contrivance, managing, and Competitive duty  Service Personalized and gracious  Cohesiveness Respect for Individuals, Teamwork, and Effective Communication
  • 5.  Integrity Business Ethics, Accountability, and Transparency  Reliability Loyalty and Consistency  Safety Passengers, Employees, Environment, and Health Slogan: Great people to fly with. Achievements and recognition: PIA is the first airline from an Asian country, to fly the super configuration. PIA has been recognized due to the following other reasons:  First Asian airline to operate a jet aircraft.  First Asian airline to be granted maintenance approval by the US Federal Aviation Administration(FAA) and the Air Registration Board, predecessor of the British Civil Aviation Authority(CAA).  First non-communist airline to fly to the people`s Republic of China and operate a service between Asia and Europe via Moscow.  First airline in Asia to induct the new technology Boeing 777-300 aircraft.  First airline in the world to induct Boring 777-200LR, the world`s longest range in commercial airliner.  First airline in the world to take delivery of the Boeing 777-200LR world liner (Longer Range Variant).  Pakistan International Airlines Flight Services Department was awarded the ISO 9001:2000 certification award during May 2006.  First airline in Pakistan to operate a flight with an all-female crew at command in the cabin.  First airline in the world to operate the Boeing 777-200ER, 777-20LR and 777-300ER altogether – all the three variant available on the market.  PIA Flight Kitchens in Karachi were awarded the HACCP Certification. SWOT Analysis: Strengths:  One of the enduringness of PIA is that it has its assets like hotels and restrooms almost all over the worlds. As a national airline of Pakistan, it can land the air planes in either city, in case of emergency.
  • 6.  Domestically, PIA has a highest market share.  PIA is offering its services at affordable rates.  PIA has 37 international destinations, routes and 27 domestic destinations. Weaknesses:  Political Involvement  Depravity  Mismanagement  Lack of promotion  Few operating air planes and fleets  Oil Prices fluctuations Opportunities:  PIA has huge potential market if it upgrades it fleets.  By proper operations it can generate high revenues as it has largest domestic route.  It has a very good customer support program; by using it efficiently it can attract more customers.  PTDC provides favorable market for domestic as well as international sector for the airlines. To promote tourism PIA with the help of PTDC initiated a low fare programs towards Gilgit and Chitral.  PIA can retain a price competitive edge as consumers are price sensitive. Threats:  Privatization  Other foreign and private airlines.  Negative perception about the country, terrorism and corrupt politicians  Politically precarious  Unions Unions: PIA offices across Pakistan have got several employee unions which employees think that is beneficial at employees end. It is however not good for the organization itself. Following are the unions:  People’s Union of PIA backed by PPP.  Air league backed by PMLN  Piyasi backed by Jamat-i- Islami  United MQM backed by MQM The unions have the responsibility to work for the welfare of employees therefore employees of PIA have joined different unions in order to make their future secure. Unions stand for their respective
  • 7. employees in case of any discrimination. These are the influence of different unions that it makes PIA to privatize because if PIA become privatize the PIA management will terminate the excessive employees which is one of the factors that put PIA into financial crises. The union leader has a right to argue with MD on the behalf of other members. PIA Revenue Management System: In the past few years, most leading airlines of the world have adopted a specialized automated system called the Revenue Management System (RMS) to manage fares offered to their customers. PIA, keeping abreast with the latest technological changes has decided to adopt this model. Following its successful trial that started in June 2007 at a number of stations, PIA is pleased to announce the formal launch of Revenue Management System on its domestic and international routes. RMS is a fairly simple computer based module that links varying fare levels to the available seat capacity of the aircraft in accordance with the assessed demand, mutually benefiting the customer and PIA. Customers who would previously get only one standard fare for a traveling class of their choice can now plan their travel well in advance and purchase their tickets at greatly discounted rates. The RMS has been programmed in such a way that it offers 5 different fares for Economy, 3 for Economy Plus and 4 for Business Class. The cheaper fares get taken up by those who book their seats early and immediately purchase their tickets. In effect, the earlier one buys…the cheaper one flies. Some of these new fares at times are even lesser than the fares charged under the previous standby facility for which the customers were required to queue up at the airport, a couple of hours prior to flight departure. This new system of flexible pricing would particularly benefit the price-sensitive customers, as they can purchase in advance and enjoy reduced fares, which gradually increase as the flight approaches close to the departure date. Price sensitive customers can also benefit if they plan their trip during the lean travel season when many more low priced seats will be available. In brief, the Revenue Management System creates a win-win situation for both the customer and PIA. Now fewer people would be paying more, and more people will be paying less to fly to their desired destination. Human Resource Management at PIA: Since 22000 employees are currently engaged in serving PIA and these employees are figured to be the valuable for the organization so the management of these employees is a big challenge for HR managers engineering is the biggest department of PIA after which is IT department, marketing, and finance. In average organizations there is only one human resource manager who is taking over all the responsibilities but as PIA is a big government organization it has conglomeration of 10 HR managers at each city including Lahore, Quetta, Karachi, Peshawar, and Islamabad. In Multan there is only one senior Human resource officer i-e is Sheikh Bilal Rasool. PIA has de- concentrated some of its departments though there are others which are centralized. All the small departments at PIA have been aggregated under one HR manager and the application of corporate policies in these departments is same as in others.
  • 8. According to Sheikh Bilal Rasool and assistant Human Resource Muhammad Fakhur, some of the functions are being centralized and only upper management is responsible for the operations of that particular functions. For the performance appraisal reports and for the posting of employees to foreign stations, the data is being collected from human resource department. The performance standard is ACR i-e Annual confidential Report. The managers are responsible for measuring ACR. The steps involved in Human Resource Management Process are as follows: Human Resource Planning: HRP is basically a process by which an organization ensures that it has the right number and kinds of people, at the right place, at the right time, capable of effectively and efficiently completing those tasks that will help the organization achieve its overall objectives. The industrial engineering section is responsible for the human resource planning. It is the responsibilities of this department to analyze the required manpower. For the purpose of human resource planning, human resource budget has a high consideration and value. HRB initiates the preliminary requirements concerning vacancies. It is prepared by industrial engineering department. As PIA is a very vast organization working in human resource and administration, marketing, corporate planning, information service, finance, flight services, flight operations, engineering, procurement and logistics; and customer services. It is very complicated to comprehend the complete human resource planning process in one interview. The HRB department itself canvass the requisite of workforce w.r.t each department as in flight operations department the workforce required is hooked on the flight stations on which flights would be landing, or take off. The flight staff (cabin crew, air hostess, engineers, technicians, kitchen crew) that would be stage at each station to serve the flight, because Human Resource Planning Recruitment Selection Orientation Training and Development Performance Appraisals Compensation and Benefits Career Development
  • 9. once the flight lands on one destination the crew needs to be changed which varies from destination to destination. Job Analysis: PIA is the member of IATA (international air transportation association) and it is mandatory for PIA to have an IOSA (IATA operational safety audit) after every two years. “This IOSA audit which should be done by an IATA approved organization is valid for 2 years. IOSA emphasis PIA to have a manual containing all the rules regulation and policies, the job description, responsibilities and duties of each job must be documented and PIA fulfills all these requirements.” Recruitment: “The function of recruitment is actually to fulfill the man power requirement of PIA Organization” The human resource department first determines the vacancies which need to be filled up by internal promotions. If there is no availability of employees for the vacancy than the external recruitment process is followed. External Recruitment To encourage external hiring PIA publicize the vacancy on the leading newspapers like Dawn, Jang and express. Other than this, the vacancy post is also publicized on PIA website.
  • 10. Internal Recruitment “Internal Recruitment is done by advancing the rank of any current employee by ascertaining its capacities, for this the human resource managers assisted by the performance appraisals of the employees which has a record of their performances. The succession planning is done accordingly.” Downsizing The downsizing strategy is used to cut down over numbered employees. At PIA there are almost 70 air planes and among those 70 air planes only 26 are being operated. PIA has 22000 employees which are over numbered. Outsource: PIA has outsourced the following departments to certain companies. In Multan’s scenario as well as in other Punjab region the daily wage employee hiring is granted to United HR Company and security guard hiring is outsourced to ZINC Corporation. Selection For the competent hiring PIA selection varies from one department to another department which means each department has different selection procedures and methods. The selection of airhostess has the procedure that includes grooming test, height test, and the medical test (the checkup of their skin is also performed). The selection process of cockpit crew has the procedure of conducting tests. PIA takes the simulation tests as well. The tests are generally taken before interviews. There are two methods used by PIA for all types including written tests and interviews. The hiring of the cockpit crew and airhostess is centralized to the head office. “These written tests are intentionally made knotty and the content in it is also very difficult. So this way the incompetent employees get eliminated ultimately and the selection process becomes easier for PIA”. The selection process follows the following steps 1-Application Form Application forms are must for a candidate to fill, if he/she is applying for respected seat or position. The candidates are asked to provide the following information  Education background  If he/she has applied in PIA before or not.  Present job pay & source of income  Number of children’s if married  Experience is asked if he/she has worked before in any other company or organization. Interview The interview is conducted by the panel which includes the upper officers, supervisors and the department head. Both the structured and unstructured questions are asked in the interview.
  • 11. Physical Test It is the first selection test in which the physical requirement for the job of the applied candidate is determined. The test includes the determination of height, weight and skin quality. Grooming Test In the grooming test, men and women exhibit themselves in a manner, both physical and behavioral, beseeming the job. In this test women’s make-up skills are also checked for the airhostess position. General Test Candidates’ general knowledge is tested both written and oral. The National Testing Service conducts these tests. On the basis of these tests, the merit list is displayed and the competent candidates are hired. PIA has EEO system. No glass ceiling or reverse glass ceiling has been observed but sometimes due to upper hierarchy pressure ill eligible candidates are hired. Orientation Orientation is conducted formally in PTC Karachi and Islamabad. Socialization: There is not such formal way to make employees learn the trends of the organization. Newly hired employees learn the culture of the organization by interacting with the previous employees, sub ordinates and colleagues. Training and Development: For the training purpose SOPS are developed, Standard Operating Procedures (SOP) . An initial training is given to all the newly inducted employees to build the basic knowledge, skills and abilities required to perform their jobs efficiently and with the passage of time as the new technology introduces or other changes in the market situations, trainings are given to the existing employees. PIA Training Center: PIA Training Center is an established airline training institution that promotes the highest value of aviation instruction. It has advanced training infrastructure, by local and international regulatory authorities such as CAA, ICAO, and IATA. The PIA Training Center provides quality training to PIA's pilots, engineers, air hostesses, and to employees of other associated PIA divisions.
  • 12. Courses offered at PTC:  Customer Service  Engineering & Maintenance  Flight Operations  Information Technology (CBT)  Management Manual and equipment based trainings: PIA also provides the manual and equipment based training to almost 10000 employees each year. In the manual training following programs are offered.  Flight simulators  Cabin mockup mini airport (Mocks ups are the hypothetical air planes and airports that are artificially made)  Language lab  Electronic labs  Workshops  CBT (computer based training) The classrooms are equipped with advance instruments. Moreover, the facilitators are highly qualified and highly trained themselves. A fundamental grooming is given to the airhostess after their induction and initially they serve the small airplanes but with the passage of time they are given training courses of large airplanes including Boeing and airbus and similar are the case with the cockpit crew, engineers and technicians. They are initially trained for small airplanes like ATR`s and then they are given trainings for airbus and Boeing planes after getting trained these employees go thru an oral test and then they get the license and certificates to work at Boeing and airbus. Examination Unit of PIA Training Center (PTC) The examination unit of PTC has an important role in managing examinations of Aerospace and Avionics Training Units to meet the regulatory requirement of CAA and to maintain a liaison with CAA. This unit has developed computer based examination system through which the employees are assessed. Foreign training programs: In this training program either the full team is send abroad or just the supervisor go and gets the training and train the other subordinates by conducting the workshops. This is cost beneficial; rather sending the whole crew the supervisor gets the training.
  • 13. Performance Appraisals: For To evaluate and analyse the performance, performance appraisals are established; by which most of the succession planning is done. Muhammad Fakhur told that the supervisor of each worker and the department is responsible for evaluation he, then submits the evaluation report of the respective subordinates to the HR. department. The evaluation of employees till grade 6 is done by their immediate supervisor and is considered authentic and final. At the assistant level the immediate boss done the performance evaluation. There is grading system in which employee’s skills are graded 1 till 5 for the total of almost 40 skills and the employees getting 35+ points have more chances to be promoted. At the end performance appraisal form is attached with the instruction form that provides the guidelines for conducting performance appraisals. Compensations and Benefits: The compensation and benefits are provided as pre-defined criteria for the hierarchy level. The allowances include foreign allowance and domestic allowance.  SOCIAL SECURITY  MOBILE/TELEPHONE CEILING(postpaid numbers)  ADVANCE AGAINST ACCOMADATION ALLOWANCE  DOMESTIC STATIONS ALLOWANCE  CAR/FUEL ALLOWANCE  ENTERTAINMENT  BOOKS & MAGAZINES  INDEXATION/COMPENSATION  SUBSIDISED MEAL FACILITIES  OVER TIME  Washing/uniform/kit maintenance.  Grooming allowance for females Domestic Allownce:  RENTAL CEILING  ENTERTAINMENT CEILING  FUEL CEILING Extra BENEFITS:  Air ticketing  free medical  loan benefits
  • 14.  retirement benefits and Hajj package Concluding, PIA offers several incentives to its employees but these incentives depend upon the status and designation of the employee. Corporate Safety & Quality Assurance The PIA Corporate Safety & Quality Assurance Division ensures safe operations by monitoring implementation of international standards and recommended industry practices. Strict adherence to Safety & QHSE policy and procedures during flight as well as in ground operations helps in maintaining safe workplace environment. Corporate Safety & QA Division is responsible for effective implementation of Safety Management System (SMS), Health Safety & Environment (HSE) Program, Flight & Ground Safety Management, Flight Data Monitoring & Analysis Program, Emergency Response Planning (ERP) and Fire Protection Services as well as a robust Quality Assurance Program encompassing overall operation of the airline. IOSA (IATA Operational Safety Audit) Certification PIA is proudly maintaining its IOSA Certification and thus IATA Registration since 2005. The IATA Operational Safety Audit Program is an internationally recognized and accepted system for assessing the operational management and control systems of an airline. IOSA is based on industry proven quality audit principles and structured to ensure a standardized audit with consistent results. Airlines that meet all IATA Standards Manual (ISM) standards become registered with IATA as an IOSA Operator. IOSA Audit covers Organization and Management System, Flight Operations, Operational Control & Flight Dispatch, Aircraft Engineering & Maintenance, Cabin and Cargo Compartment Operations, Aircraft Ground Handling, Cargo Operations and Operational Security of the airline. By virtue of PIAs IOSA Certification, PIA is able to ensure safety of passengers as well as employees. Fire Safety-in the Workplace and at Home PIA has made a number of arrangements to handle incidental fires and allied hazards. First Aid Fire Stations have been set up in Karachi, Lahore and Islamabad, and Fixed Fire Protection Systems have been installed at sensitive premises. PIA's locations are equipped with portable fire extinguishers and a range of other fire safety devices. All the installed equipment is inspected regularly and maintained in accordance with international standards. Fire Safety Courses are conducted regularly to equip employees with firefighting skills and to impart critical knowledge of preventive measures. Fire Prevention Courses are also conducted at the Staff Township and PIA Model Schools so that employees and their families can take appropriate fire prevention measures at home. PIA's Corporate Safety & QA Division also actively engages in advocacy sessions to create awareness through print publications and sharing of experiences. Working in collaboration with the Fire Protection Association of Pakistan, PIA is committed to creating and promoting a culture of safety at a nation-wide
  • 15. level. The division's future plans include running fire and safety awareness sessions at government and private schools. Emergency Response Planning Passenger care is an airline's most crucial responsibility. Acknowledging the significance of Emergency Response Planning (ERP), PIA has set up a discrete section to handle emergencies. The Emergency Response Planning Section has developed an Emergency Response Manual and manages Emergency Response Center Teams, Field Teams, Family Assistance and Support Teams, and Volunteers. The ERP Section also trains volunteers in the areas of aircraft emergencies, rescue, basic first aid, and firefighting to effectively respond to natural disasters. Emergency Response Facilities include the computerized data storage of teams and volunteers with an automated emergency call out system. This software application also provides a technology supported callback system for contacting families of the affected. PIA’s Emergency Response Planning Section hopes to contribute meaningfully towards national capacity building in the area of emergency management, through financial and human resource investments. HSE Management System (Health, Safety & Environment) PIA has been proactive in understanding the needs of time and has launched the Health, Safety & Environment (HSE) initiative. The objective of this program is to mature the airline’s HSE systems to a level which will eventually lead to OHSAS-18001 and ISO-14001 certification. As part of this program, PIA conducts organization wide HSE trainings, development of HSE objectives, implementation of HSE system procedures and management reviews to assess the continual effectiveness of the HSE system. These accomplishments will make PIA a safer airline, paving the way for OHSAS and ISO certifications. Corporate Social Responsibility Committed to Creating a Better World PIA is driven by the highest standards of corporate governance and social responsibility. As a public sector organization and a business leader, PIA believes in building strong relationships with customers, partners, employees, and the communities in which it operates. The organization's values are exemplified in a range of corporate initiatives designed to impact positively on the lives of multiple stakeholders. PIA practices active corporate citizenship through social services, support for non-profit organizations, medical services for employees, the promotion of sports, and educational initiatives. PIA has institutionalized the practice of good governance by establishing a Corporate Social Responsibility Committee. The Committee provides a platform to evaluate, update, and recommend best practices as PIA continues on its mission to adhere to business ethics and stamp out corruption. Corporate Social Responsibility (CSR) is woven into the fabric of daily operations at PIA.
  • 16. PIA employees wholeheartedly contribute to its commitment to develop the organization, the communities in which we function, and the country. PIA is proud of its human resource as they in many ways initiate & actively participates in welfare missions. PIA is gifted with teams of professionals who pursue excellence and deliver confidence. With a Leadership that understands the true meaning of Social Accountability, PIA has been able to realize vision of social accountability. Social Services Reaching Out to Help IDPs PIA is committed to extend a helping hand, to distressed communities of society, whenever needed. PIA believes in contributing for the betterment of society by, working for and learning from the experience of, setting unprecedented examples of cooperation and support. In view of the disturbances in the northern part of the country, millions of people were constrained to leave their homes and dwell in camps set in peaceful areas. To address the suffering of these distressed persons including a large number of children needed both tangible and emotional support. At these crucial moment PIA risen to the needs of the nation and decided to activate its Emergency Response Centre for collecting Relief Goods for onward dispatch to the people in distress in an efficient and transparent manner. Various individual contributors, institutions and welfare bodies from different parts of the world also availed this wonderful service from PIA. Collection centers were established in Karachi, Lahore & Islamabad and more than 300,000 Kgs of relief goods were transported. Boy Scouts Association The PIA Boy Scouts Association (PIA-BSA), a provincial segment of the Pakistan Boy Scouts Association, is based on the value system of the Scout Promise and Law. The PBSA's mission is to actively train and develop members through Youth Training Programs. Scouting contributes to the education of young people and helps build a better world where individuals can play constructive roles in society. The PIA-BSA's major contributions include providing Haj services at domestic and Saudi Arabian airports, engaging in activities with the Heritage Association of Pakistan, assisting special children at PIA's Al-Shifa Trust, and participating in a number of health, cleanliness, literacy, tree plantation, drug prevention, and blood donation drives. The PIA-BSA has also started a cricket academy where thousands of youth have received cricket coaching from PIA's renowned test and first-class cricketers. Following the earthquake tragedy of 8th October, 2005, the PIA-BSA immediately deployed contingents in Islamabad followed by scout deployments in Balakot, GarhiHabibullah, Muzaffarabad, and Bagh where relief goods were distributed and emergency services were rendered. PIA Planetariums (Karachi) Through a combination of projectors, optics, electronics, and precision engineering, PIA offers a range of cosmic experiences to the Pakistani people. The PIA Planetariums enable the viewing of virtual universes, replete with stars, planets, and nebulae and visitors throng the planetariums to look at astronomical phenomena such as eclipses, alien landscapes, planets, and the sun. PIA is the only airline
  • 17. in the world to have invested in an innovative and educational planetarium project that is open to the general public at affordable rates. PIA Horticulture Plants and trees provide habitat, shelter, food, materials and medicines to human beings and animals. Realizing the significance of a healthy and pollution-free environment, PIA set up a horticulture division in 1996. In addition to maintaining indoor and outdoor plants and trees, PIA Horticulture provides seasonal flowers for display in PIA's offices and for a range of events, winning several awards and accolades at flower exhibitions across the country. To reduce pollution and contribute towards a greener Pakistan, PIA Horticulture actively participates in tree plantation campaigns during each spring and monsoon season. Support for Non-Profit Organizations As a responsible corporate citizen PIA has a special social commitment which it takes very seriously. PIA is engaged and actively supports various social projects. As part of its corporate social responsibility initiatives, PIA fully sponsors Al-Shifa Trust, which provides relief and rehabilitation services to special children suffering from cerebral palsy and other motor disorders. Besides this, PIA has been providing help to charities and trusts. Career Development The staff development department is responsible for career development program of employees but unfortunately the trainings which are mentioned for the development programs cannot be implemented and the department is just for the sake of name. Conclusion: As per the interview and website analysis, it seems that PIA human resource policies are very effective but these polices are not implemented. The HR manager in Multan told that PIA is not suffering from any financial crises. The upper management makes rumors regarding this so that they can have benefit of the revenue from PIA. Several of the PIA previous managing directors are now managed to open their own airline companies. There is a corruption at the top level which restricts PIA to perform better as compare to the other airlines. That was PIA that made Emirates to establish and helped it in its progression. There are some recommendations which will be helpful in its operations. Recommendations: Reduce the over-numbered employees : PIA must offer golden handshakes and early retirements to the number of employees which are at surplus. This way the organization can get rid of overloaded employees.
  • 18. Improve technical training programs: As far as technical training is concerned, PIA has come across 4 major incidents because of the technical faults in its airplanes. So this organization must improve the technical training programs. Although it had several training programs but as compare to other airlines, PIA needs to increase the quality and quantity of training programs. Improve interpersonal skills: If we talk about the interpersonal skills there are a lot of annoyed customers due to the unsatisfactory services of customer services representatives. Being a big organization PIA must train its employees for their interpersonal skills. Overcome late flights and cargo problems: PIA has become famous for late flights and cargo problems which are commonly held to the mistake of the staff. If proper evaluation of staff performance is done then there would be no such problems occurring. Decrease the overhead cost and expenses: This organization must decrease its overhead costs and its expenses else it would become difficult for this organization to serve the customer effectively and efficiently. Regarding Human Resource following recommendations should be considered: Hire employees on contract: Rather than permanent jobs, employees must be offered contract based jobs in order to cut down the expenses as the contract based employees won’t be given the benefits like the permanent employees. Proper check and balance of HR polices: There should be a proper monitoring department to have a check and balance on whether the HR policies and practices are implemented in their real sense. Focusing On Career Development: PIA needs to be focused towards the career development of its employees as the staff development department is not performing its duties and responsibilities and for a good organization every function is considered to be important and crucial. Implement employee retaining strategies: PIA should implement some strategies to retain its efficient employees as the airhostess turnover rate as well as other employees’ turnover rate is very high. PIA has to groom the strategies like increasing allowances and providing healthy working environment to its employees. Other than these HR department of PIA should also focus on the following  Act As an independent organization
  • 19.  Exterior interference should be controlled  Hiring on merit Bases  Upper hierarchy should selected internally  Non-financial rewards should be encouraged  Unions should not be backed by the political parties  Technological advancements  Business proficiency  Non ethical acts should be avoided  Organization charts and process charts missing  Trend analysis  increasing advertisements channels  Checking the employees background and history  Exit interview should be conducted  awarding employees with the stocks  Salary survey