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(2013) PAKISTAN INTERNATIONAL AIRLINE (Term Report and Manual Study of ) Human Resource Management Submitted To Mr. USAMA NAJAM M.B.A (H.R.M) 2nd Semester (2012-2016) (Alfalah Institute Of Banking and Finance) Bahauddin Zakariya University, Multan, Pakistan

GROUP MEMBERS

M.B.A (H.R.M) 2nd Semester (2012-2016)

(Alfalah Institute Of Banking and Finance)

Bahauddin Zakariya University, Multan, Pakistan

SYED RAZA ABBAS 08

SYED M.ALI GARDEZI41

FAHAD MANAN40

MAIMOONA AKHTER10

ANAM ARIF07

SADIA BALOCH 45

MEHWISH MANZOOR 47

ACKNOWLEGEMENT

We first and foremost thanks Allah, the most beneficent and merciful who gave us the capacity, strength and comprehension to carry out the project. Warmly thanking our beloved parents who through their emancipated love gave us the courage to achieve this endeavor.

Sincere thanks our respected tutor of Human Resource Management

Mr. USAMA NAJAM

for this commitment to us and to our fellow classmates and friends. Who were always there to give us a coherent advice.

Finally thinking that exceedingly accommodating administration of most notably

Mr. SALEEM AHMED

of the PIA Personnel Manager Multan respectively. For their keen interest in the project and the information and documentation they provided for that.

Table of Contents

Executive Summary...4

Intro Of PIA.5

Main Bases Of PIA6

PIA Hierarchy...9

PIA HR Functions.....................10

PIA Recruitment ..11

PIA Training ........................14

PIA compansation.18

PIA Performance Appraisal ................22

PIA SWOT Analysis.........................................24

Recommendations for PIA..28

Questionnaire .........................30

Conclusion..............................32

Summary

Thisreportisorganizedonthebasisofanassignmentin courseofHumanResource Management, which asks for the analysis of a companys Human Resource Manual (HRM) and toprovide suggestionsto improvethat companyspolicy makingregardingitsHRdutiesand responsibilities .The Report starts with a comprehensive introduction to the chosen company, i.e. PIA (Pakistan International Airlines), and continues with the reviews of the basic HR duties .

Orientation

Hiring

Planning

Training

Compensation

Performance Appraisal

INTRODUCTION

History of An Air line:

Air transport hasprobably neverbeen more important to thedevelopment of anew nation than in the case of Pakistan. In June 1946, when Pakistan was still in the offing, Mr. Mohammad Ali Jinnah, the Founderof theupcoming nation,instructed Mr.M.A. Ispahani a leadingindustrialist, 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 efficientmodeoftransportwasimperative.Despitewarsandeconomictrouble,thecarriersurvived to grow. Orient Airways, a privately owned company, with limited capital and resources, could not be expected togrow and expandindependently. It was thenthat 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 andacquiredtrainedpilots,engineersandtechnicians,measureswhichproved to be a great asset for PIA during its teething phase.

PIAs 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, Cairo and Rome. 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. On March 1960, PIA launched its first Boeing 707 jet service on the London-Lhore-Daca, route whichlater provedtobe verysuccessful. Thistrail-blazingaccomplishment resultedinPIAbecoming the first Asian Airline to operate ajet aircraft, setting trends for the future. In1961, the airline took on the mammoth task of initiating a cross-Atlantic service from Karachi to New York. By this time, PIA had placed orders for more new aircraft, which included Fokker F-27s, Boeing720Bs and Sikorsky helicopters. Helicopter services in East Pakistan had gained momentum by1962 and expanded to include Sylhet, Chittagong, Dacca, Comilla and Ishurdi. PIA's helicopterservices carried over 70,000 passengers during the first year of operation

Main Bases are:

Jinnah International Airport,Karachi

Allama Iqbal International Airport, Lahore

Islamabad International Airport, Islamabad and Rawalpindi

Vision:

Tobeaworldclassprofitableairlineexceedingcustomerexpectationthroughdedicatedemployeescommittedtoexcellence,On-timeperformance,innovativeproductsandabsolutesecurity.

Corporate Mission:

As a symbol of National pride, we aspire to be a choice Airline, operating profitability on modern commercial concepts and capable of competing with the best in the international and Domestic markets

PIA Objectives:

According to the PIAC Act 1956, following are the main objectives of the PIA Corporation:

To promote any organization outside Pakistan for the purpose of engaging in any activity of a kind which the corporation has power to carry out.

Toprovideandfurtherdevelopsafe,efficient,adequate,economicalandproperlycoordinated domestic as well as international airlines.

To operate any air transport service or any flight by aircraft for commercial or otherpurposes.

To acquire, own, run, manage or participate in the running management of any hotel or anybusiness connected therewith.

Toacquire,hold,ordisposeof anypropertywhethermovableorimmovableorany transport undertaking.

To repair, overhaul,reconstruct, assemble orrecondition aircraft vehicleor othermachineparts, accessories owned by the corporation or any other person.

.

PIA is proud of its human resource as they in many ways participate and initiate welfare missions. With a leadership that understands the truemeaning of social accountability, PIAhas beenable to realize its VISION of Social Accountability

PIA Hierarchy

PIA

Human Resource Department: Deals With:

Administration

Recruitment plan

Training

Compensation

Performance Appraisal

Administration:

Head office is in Karachi and every single operation or decision is done in Karachi. Offices in different cities are dependent on the head office and perform duties as assigned by the head office

Decision Making:

All decisions take place atthe higher level. CEO, Managing Director makes decisions and all the operations aredone at the headoffice inKarachi.The Employees, Managerin Lahore and Islamabad dont haveauthority totake decisions on their own. If there is some issue of conflict, they would have to consult the head office and wit for their response. This is Centralized decision making which is never successful in any organization

Recruitment Policy:

Recruitment is done in Karachi only, none in the Multan zone

Recruitment cell:

Departmentsareadvisedtotelltherecruitmentcellifneedarisesfor hiringmoreornew employees.

A Job specification is submitted and from then on everything is undertaken by the recruitment cell which includes advertising the vacant post both internally and externally, giving an address for sending in applications and once a pool of candidates have been gathered the responsibility is transferred to the panel of interviewers.

Job Specifications:

GeneralManagerOrganizationalDevelopment(OD)shalldevelopjob

specificationsforeachpostinconsultationwiththe Department concerned.

Job specifications shall not be tailored to suit an individual. Job specifications shall have wider alternates so as to provide a fair opportunity to:

Internal candidates holding equivalent/ comparable qualifications to apply. and

Selection Board to have a wider choice of selection.

Where only one candidate has applied against the internal advertisement, the post shall be re-advertised internally with someamendments injob specifications orshall beexternally advertised

AIR HOSTESS

Recruiting Internally:

An Ad comprising of the Eligibility criteria for internal candidates is put on display on the local area network (LAN) in the companys computer system for 30 days and anyone wishing to apply can; considering they meet the requirements. The Ad usually comprises of the concerned positions Job specifications as follows:

Introduction to job

Experience

Required additional qualification

Skills required

Required qualification

Selection procedure:

(a)- Internal candidates presently working who fulfill the above criteria will apply through properchannel

Director (President)

Director Concerned (Member)

General Manager (concerned Member)

(b)- The employee once placed on basis of qualification will not have claim of further promotion on the same basis

(c)- Seniority will be maintained in accordance with the seniority in the previous Pay Group.

Interview:

The candidate will be interviewed by the people concerned or a special panel which may comprise of :

(a) Director Recruitment cell

(b) General Manager or Deputy General Manager

(c) One of the Concerned Directors

Interview is alsoconducted After Selection:

An offer letter is mailed to the candidate that he/she has been selected.

Information in the offer letter includes, pay rates and benefits.

It also includes various verifications including Medical checkup, background checks, reference checks ..

.

Training at PIA:

The nextHuman ResourcefunctionPIA carries out istraining and development ofits employees. The training office is not located at the HQ building in Multan .PIA only provide training in Karachi. The most prominent use of training is towards the pilots.

An employee, who is selected for training at the expense of the Corporation or under any aidedprogram, shall be required to execute a surety to serve the Corporation on return from training for such period as the competent authority may prescribe.

An employee whose service have been terminated as a result of misconduct during the Trainingperiod shall be liable to pay to the Corporation the total cost of the training according to the includes salaries, allowances and traveling expenses paid to the employee during the periodof training.

An employee proceeding on leave without pay for studies and without any financial or otherobligation on the part of the Corporation shall also be required to execute a surety bond of such amount and for such period as may be determined by the competent authority.

PIA recruits pilots and operational staff from foreign countries too, that adds to its efficient training methods. Lets look at another Training policy for Cadets and Trainee Engineers:

The cost of training to be recovered from Trainee Engineer & AeronauticalCadets.

APPLICATION FORM FOR ADMISSION OF DEPENDENT CHILDREN OF EMPLOYEES

(SERVING / RETIRED / DECEASED) IN PIA TRAINING CENTRE

Principal PTC

COURSE TITLE________________________________________

My dependent son /daughter is willing to attend above mentioned coursein PTC. You are requested to considerhis / her admission atapplicable rebated fee.

SIGNATURE____________________

(Employee / widow)

PARTICULARS OF DEPENDENT SON/DAUGHTER

NAME:____________________________________________________________________QUALIFICATION:__________________________________________________________DATE OFBIRTH:___________________________________________________________C.N.I.C /REG. NO:___________________________________________________________PIA FAMILYCARD NO:______________________________________________________RESIDENTIALADDRESS:_______________________________________________________________________________________________________CONTACTNO:______________________________________________________________

PARTICULARS OF EMPLOYEE (SERVING / RETIRED / DECEASED)

NAME:___________________________________________P.NO:___________________DESIGNATION______________________SECTION/DEPTT:______________________DATEOFAPPOINTMENT/RETIREMENT/DEATH_______________________________RESIDENTIALADDRESS______________________________________________________________________________________________CONTACT NO:___________________

VERIFICATION BY HR MANAGER / STATION HEAD

CERTIFIED THAT MR./ MISS _____________________________________IS DEPENDANT SON /DAUGHTER OFMR. /MRS._____________________________________ P.NO.______________________DESIGNATION _______________________________ WHO IS A SERVING / RETIRED / DECEASEDEMPLOYEE OF THE CORPORATION, AS PER OUR RECORD._________________________________HR MANAGER / STATION HEAD

DOCUMENTS REQUIRED

ATTESTED COPY OF MATRIC / INTERMEDIAT CERTIFICATE.ATTESTED COPIES OF C.N.I.C & FAMILY CARD. ATTESTED COPY OF PAY SLIP / RETIREMENT BOOK.

Apprenticeship Training:

Astructuredprocessbywhichpeoplebecomeskilledworkersthroughacombination of classroom instruction and On-Job-Training

On-Job-Training:

Training a person to learn a job while working on it

1- Apprenticeship Training :

Apprenticeship training is used to train any PIA employee from PIA pilots to PIA operational staff. The operational staff is limited to HR, financial and marketing departments only for this sort oftraining methods as PIA tells that those fields require more attention than others. Pilots, cadets and engineers are trained.

SIMULATION TRAINING

2-- Lecture-based Training:

Lecture-based training is brief intime period and requires aclassroom setting inthe zonal offices, which are currently not present in MULTAN. The classroom training areas are present in Karachi , Quetta and Rawalpindi zonal offices. This training method is used to train almost all kinds of employees in the Operational departments of PIA including marketing, public relations, sales, and cargo. The lecturers are permanent and visiting faculty members of PIA and this sort of training lasts from three weeks to three months.

Compensation and Benefits

OneofthemostprominentdutiesofHumanResourceManagementistocompensateanorganizations employeesandto providethem withsufficient benefits. Providing employees withcompensationsandbenefitsmakesanemployeerealizehisorherimportancetowardsthe organization and vice versa. And inthat case, PIA hasbeen very effective in providing its employees with wholesome benefits relating:

Leaves

Medicalfacilities

Ticketing

Salaries and Pensions

Perquisites

Allowances

Transportation

Compensatory Allowance

To meet personal expenditure in special circumstances

Conveyance Allowance:

For attending duty at normal place of work or carrying out duties in lieu of free transportation by PIA

Daily Allowance

To cover daily expenses

Foreign Allowance

For a Pakistani resident employee transferred permanently to a foreign country

Travelling Allowance

To cover the travelling expense in interest of PIA carried out by an employee Now reviewing some of the incentives provided by PIA to its employees:

Bonuses to employees:

PIA may sanction bonus depending upon the yearly profit, etc

Employee on the pay roll of PIA on 30th June with at least one year service in that financial year.

Employee with less than one year but more than 90 days of continuous service on 30thJune in that financial year, on prorate basis.

Ex-employees, who were in the employment of the Corporation in the financial year for a continuous period of at least 90 days and have resigned, retired, or removed from the services of the Corporation, on prorate basis.

The employees on contract in the regular pay scale of the Corporation shall also be entitled to payment of bonus. However, employees on contract who are not in the regular pay scale shall not be entitled to payment of bonus.

PIAC employees, on deputation/secondment/l long leave without pay, which are on payroll for 90 days or more in a financial year on prorate basis.

All officers up to the level of Directors, Cockpit Crew and Cadets shall be paid bonus, asper rates fixed form time to time, subject to clearance of Government of Pakistan.

The Employee Reward Program:

The objective of this program is to recognize and reward any extra ordinary contribution andeffort that anemployee makes,in addition tohis/her normal job responsibilities. This program is meant to highlight outstanding performance, promote extra effort/ customer service:

Chairmans Award

Managements Award

Going an Extra Mile Reward

Service with a Smile Award

Leave Benefits:

Leaveshallbeadmissibletoallpermanent/contractualemployeesintheserviceofthecorporation.

Types of Leaves applicable at PIA:

Casual Leave (10 Days)

Sick Leave (12 Days)

Privilege leave (30 Days > 1-10 years of service, 35 Days > More than 10 years)

Foreign Earned Leave (15 Days in abroad before coming to Pakistan annually)

Leave Preparatory to Retirement

Accident Leave (3 Months on certain conditions, Chapter 18)

Quarantine Leave (For Managers only, 30 Days)

Maternity Leave (90 Days with full pay)

Leave without Pay (6 months during service)

Days Off (For working on holidays)

Employees shall bedeemed to havecompleted ayears service notwithstanding any interruption in service onaccount ofsickness, accident, authorized leaveand intermittentperiodsofinvoluntary unemployment not exceeding 30 days.Leave shall be calculated on the basis of calendar year. Leave shall be applied for, expressed andsanctioned in terms of days. Weekly Offs or holidays shall not be prefixed or suffixed to any type ofleave except with the prior permission of the Competent Authority. When so allowed, these will notbe counted as part of the leave.

We have provided a leave application form at PIA in the following page:

LEAVE APPLICATIONPRIVILEGE SICK SPECIAL WITHOUT PAY DAYS OFFNAME: STAFF No: DESIGNATION DEPTT/LOCATIONLEAVE REQUESTED: APPROVAL: From__________ to___________TotalDays__________ Recommended Reason ________________________________________ NotRecommended,(Reasons)_______________________________________________________________________________ADDRESSES:_________________________________(I) Local: -_____________________________________(II) Permanent: - ________________________________ (Immediate Incharge) Date(III) While onleave:-______________________________ Approved NotApprovedSignature_____________Date_________________________ _________________Title ____________________________LEAVE ADVICE-PERSONNEL COPY Ref:Date:________________Mr./Miss/Mrs.______________________________________________________P/_______________O ____________________________has been granted _______________days leave, as follows: PL (Current) - From_____________ to ___________ Total ___________days PL (Foreign Earned) - From_____________ to ___________ Total___________ days LPR - From_____________ to ___________ Total ___________days OFF - From_____________ to ___________ Total ___________ days SICK LEAVE - From_____________ to___________ Total ___________ days SPECIAL SICK LEAVE -From_____________ to ___________ Total___________ days ACCIDENT LEAVE -From_____________ to ___________Total ___________ day

L.W.P. - From_____________ to ___________ Total ___________ daysLeaveperiodsalarymaybepaidinadvancesubjecttoattendance/clearance.His/herrejoiningdateis___________________________________________________________________HR Manager / HR Officer

Performance Appraisal at PIA

PIA HRM Performance management at PIA has includes effective methods of performance appraisals that are:

Performance Appraisal Reporting

The interest of PIA must always come first while reporting. Main consideration when evaluating an employee is his value to the PIA. Often it is in the interest ofthe individual which is uppermost in the minds of the reporting Officers. This is unhealthy and wrong. While we must do our best for them and their career, the interest of PIA must come first at all times.

PERFORMANCE APPRAISAL FORM is the most important single document in respect of an employee. Itprovides tothe Management,apermanentrecordofthe periodicalassessment ofan employees performance, personality, character, leadership and professional ability. It also indicates employees potential for development and suitability for future utilization.

Understanding of Reporting System writing of reports particularly when it turns out to be unfavorable to individual employees. In such cases, rather than out crying the system or the reporting officer, employees must learn to accept adverse criticism is a constructive sprit for correction. A good report has to be deserved and earned through hard and solid work.

The Preparation of Performance Appraisal reports are an important and responsible duty. The manner in which these reports are written will be taken into account in judging the qualities of the reporting officer. The opinions which are expressed should represent the result of careful consideration; justify the assessment of his subordinates made by him.

Counseling the employee is a continuous process. The Reporting Officers of PIA must point out to the employees concerned their failing and weakness as soon as these come to notice and not wait until their annual evaluation reports are raised. They should be advised and guided to eradicate their shortcomings to improve their efficiency. PIA adopt Rating scale method mostly for performance appraisal.

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It is most essential that the reports must truly and accurately describe all the good, bad strong and weak points of the employees reported upon. It must be entirely free from all form of bias, prejudice and distortion.

It must be borne in mind that the reports should deal with what has happened during theperiod actually covered by the report; and not with the past periods, which should havebeen covered, in previous reports.

The Reporting Officers must be as objectives and circumspect as humanly possible. They should be clear, direct, not evasive and ambiguous in their remarks. They should avoid exaggeration and gross understatements

SWOT ANALYSIS OF PIA

Strengths:

PIA has status of being Flag Carrier of Pakistan.

Highest Market Share at domestic network.

Multilingual Staff on Board

Booking Offices in all major cities both at domestic and International

PIA has well established brand as its oldest airline in Pakistan.

Subsidized fares

Halal meat available at all flights.

Electronic ticketing by web and through SMS.

Highly Professional Staff

Having Governments protection

Weaknesses:

Old aging fleet of PIA causing higher operating cost.

Huge burden of Employees which cause financial burden.

Inadequate space on the aircraft

Charging of higher fare as compared to competitors.

Lack of marketing activities as compared to competitors.

Poor quality of food/service on board specially in domestic flights

Opportunities:

PIA has huge potential market in Middle East if PIA upgrades its fleet.

PIA has largest domestic network and by proper route planning PIA can generate huge amount of Revenue with higher profit.

PTDC provides favorable market for domestic as well as international sectors for the airline

PIA can generate more revenue by attracting customers through Web and Mobile Reservations system.

Threats:

Negative rising perception about the country, regarding terrorism.

Political instability and law and order situation.

Rising fuel prices in the world.

Over staffing at all levels

Frequently rising Airlines fare

Fast growing domestic and international competitors

Effective promotion strategies adopted by other competitors like Emirates and Shaheen airline and Airblue.

Recommendations:

we would like to give certain suggestions for PIA betterment and profitability.

1. We suggest the head office should delegate authority to a few regional offices Like MULTAN.

2. A training department must be established in the Multan office for the purposes of Apprenticeship Training and Lecture-based training.

3. PIA should adopt transparent policy that employees should be promoted on merit basis.

4. And Chairman of PIA should be appointed from with in the organization

5. We suggest that the HR department should give authority to take decision clearly

6. PIA should adopt good marketing policies so that it will bring higher profit .

7. Airline should focus on the customers satisfaction

8. PIA should give bonus to the industrious and competent employees.

9. There should be control on the increase of fares, as mediocre are in majority in Pakistan

10. Management should hire the services of specialized IT personnel for up gradation on time.

11. There should be clear and even distribution of work and only qualified person should be

12. There should be improved service standards and that should focus on quality.

13. PIA should offer its services of reservation and seat confirmation with by SMS and flight confirmation message should also be sent via SMS to the passenger.

14. PIA needs to start advertising in Universities or places where a younger pool of people may be attracted.

15. Employee orientation must be expanded to all known departments of PIA.

16. Online training methods must be introduced at PIA to reduce training time tenures forLecture-based trainings.

Questions Answer Session with

Interviewee

1-What courses are needed to get this position.

No specific courses, promotion on seniority basis.

2- How long have you been working for this company?

Almost 8 years.

3- Do you enjoy working for this company

Of course, because of the environment and the facilities provided by the company.

4. What attracted you to this organization?

Opportunities, incentives.

5. Please describe the work environment here?

The environment is very friendly, staff and boss is very cooperative.

6. What are the greatest pressures in PIA ?

Here is minimum pressures.

7. What are org strengths and weakness?

Old aging aeroplane of PIA causing higher operating cost.

8. What is the number of employees working under you?

5 Direct, and 70 indirect.

where is your Trainingg center. Is it in Multan

PIA training center is only in Karachi not In Multan

9. What is the prevailing management style?

Bureaucratic

10. Is this a centralized or decentralized system

Here in PIA is a Centralized system

11. What are the criteria for evaluating the employees?

Honesty, integrity, initiative, personality traits, performance in PIA.

12. How do you decide for recruiting from inside or outside the org?

PIA mostly, recruit from Inside side.

13. If someone does good job, what is the next step for promotion?

In PIA ACR and seniority decides promotion.

14. What are opportunities for advancement?

Masters degree is required for higher level positions.

15. Which skills are most important to acquirea.

Mostly Communication and personality skills judge.

16. What are the different salary ranges?

Minimum 10000, maximum 500000 rupees to pilots.

17. What are other incentives and benefits for employees?

Transportation, dwelling allowance, medical and leave benefits.

18. Do employees work in over time? How much time and how many people?

Few employees of PIA work in over time, not more than 15 hours in month.

19. How do you determine that someone is eligible to get promoted?

By looking into his ACR performance

20. What types of technology are used and how are they used?

PIA used Modern computer systems to facilitate the customers.

21. What do you think is the employees thinking about you?

I am cooperative and understand their needs.

22. which thing motivates you?

PIA Incentives, Allownce and other benefits

Conclusion

The Manager HR is a very important position in PIA. The position holder has to perform all the HR functions including recruitment, training, orientation, posting transfer, promotions, career planning, performance appraisal, disciplinary actions and general services.

But now at this time PIA performance is too weak. All the airplanes are aged and not meet the international standards .The airports security forces ASF is not modernize to check the passengers.

Chief executive should appointed on Merit. Then PIA will perform better in the world .