The Introduction To Piac Commerce Essay

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The company in focus in this report is Pakistan International Airlines commonly known as PIA. Pakistan International Airlines Corporation is principally engaged in the provision of air transport services. Other activities of the Company include provision of engineering and other allied services. The Company operates in two business segments: airlines operation and hotel operation. The airlines operation segment provides air transport and other allied services.

The purpose of this report is to have a deep insight to the human resource practices of Pakistan International Airlines. The study includes the organization as a whole and specifically the human resource department. Being a public sector organization with a sizeable human resource the study would like to include all the major concepts of our course of human resource management at Iqra University.

The purpose of selecting PIA was also to understand the major practices adopted by human resource department and the problems faced by them in the current financial crises. Our report also includes the study of HR department role in different activities like Recruitment, Selection and placement, Training and development, Performance management and in Compensation and benefits given to PIA employees.

Purpose of this study is also to bring a true picture of PIAC in front of the readers apart from the critics and propaganda adopted by national and international media. This includes the achievements mentioned in different parts of our report and at the end of this report. I hope the readers will be benefited from this report and will have a clear picture in front of them.

Introduction to PIAC

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.

PIA was born on January 10; 1955. Being national flag carrier, 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.

Today it maintains a sizeable international route network, in addition to its services closer to home, with a modern and expanding fleet.

Its main hubs are Jinnah International Airport, Karachi, the Allama Iqbal International Airport, Lahore and the Islamabad International Airport, Islamabad/Rawalpindi.

It also serves regional airports, including Peshawar International Airport, Peshawar, Faisalabad International Airport, Faisalabad and Multan International Airport, Multan that connect to the main hubs and have flights to the Middle East.


PIA's vision is to be a world class airline exceeding customer expectations through dedicated employees, committed to excellence.


"As a Symbol of National Pride, We Aspire to be a Choice Airline, Operating Profitably on Modern Commercial concepts and Capable of Competing with the Best in the International as well as Domestic markets."

Core Values

Customer Expectations

Convenience, Caring, and Competitive Tariff


Personalized and Courteous


Cherishing New Ideas, Translated Into Action


Respect for Individuals, Teamwork, and Effective Communication


Business Ethics, Accountability, and Transparency


Loyalty and Consistency


Passengers, Employees, Environment, and Health



Pakistan International Airlines Corporation is the flag carrier airline of Pakistan, based in Karachi. It is the 31st largest airline in Asia, operating scheduled services to 40 destinations throughout Asia, the Middle East, Europe and North America, as well as a domestic network linking 23 destinations. PIA is involved in carrying passenger throughout its network for normal passage and hajj & umrah operation. PIA also gives special chartered flights to its customers over its network. PIA is also responsible for state official transportation throughout the world.

PIA Cargo

PIA Cargo has the unique distinction of introducing Pakistan's fruits to international markets and pioneered the exports of fresh fruits and vegetables to global destinations. PIA Cargo earns valuable revenue for Pakistan International Airlines and provides a massive boost to Pakistan's wide spectrum of exports. The aggressive growth of PIA Cargo coupled with PIA's rapidly expanding passenger operations empowers customers with a range of cutting-edge cargo products and services. In addition to offering cargo services, PIA Cargo also arranges charter flights to lift meat, livestock and relief goods within and outside Pakistan.


In the 1970s, Pakistan International Airlines pioneered the express delivery of shipments across Pakistan.In 2003, PIA expanded the scope of Air Express and launched a full-fledged courier service named PIA Speedex. Initially serving Karachi, Lahore, and Islamabad, PIA Speedex grew rapidly and another 12 major cities were added to the network. Today, PIA Speedex offers premium courier services in 70 cities across Pakistan, and shipments are collected from and delivered to the doorsteps of our customers.

Limited and Midway House (Private) Limited.

Organization Structure

In PIA organization structure is centralized, no complexity in hierarchical positions, wide span of control, highly formalized rules and regulations as it is shown in the organization chart of PIA.

The criteria for the formulation of PIA structure are "to divide organization in different departments and each department is subdivided in different divisions and sections for the smooth assignment of duties and responsibilities".

The duties and responsibilities are specified and if any dispute arises it is rooted out in coordination meeting of different departments, which held once in a month.

Board of Directors

Pakistan International Airlines Corporation (PIAC) is majority owned by the Government of Pakistan (87%) while the remainder (13%) by private shareholders. The airline falls under the direction of the Ministry of Defence chaired by its current chairman. The airline is managed by managing director, as well as the Board of Directors. The Board consists of nine independent non-executive members and has four sub-committees, being an Audit Committee, Brand and Advertising Committee, Finance Committee and Human Resource Committee each with its own charter and chairman.

Air Chief Marshal (Retd) Rao Qamar Suleman Chairman - PIA, Ms. Nargis Sethi Federal Secretary Defence, 

Mr. Husain Lawai, Mr. Abdul Wajid Rana Federal Secretary Finance, Makhdum Syed Ahmad Mahmud,  

Malik Nazir Ahmed, Mr. Javed Akhtar, Syed Omar Sharif Bokhari, Khawaja Jalaluddin Roomi, Mr Yousaf Waqar


Organizational structure of PIA comprises of various departments headed respectively by a Director. As per specifications, each Director shall be responsible to the Managing Director / Chairman. The Managing Director/Chairman shall be responsible to the Chairman / PIA Board of Directors. Any changes in the Organization considered necessary from the functional and operational point of view shall be in the form of Organization Orders issued from time to time.

PIAC is led by the Chairman who is also the Chief Executive of the Corporation. PIAC is organized into twelve departments named:

Finance, Corporate planning, HR Admin & Coordination, Precision Engineering Complex, Marketing, Engineering & Maintenance, Flight Operations, Flight Services, Information Technology, Airport Services, Procurement & logistics, Training & Develpment and Standards & Special Projects.

Each department is headed by a Director and assisted by a team of professional staff. The top management with departmental head includes;


Air Chief Marshal (Retd) Rao Qamar Suleman

Deputy Managing Director

Capt. Muhammad Junaid Yunus

Chief Financial Officer

Mr. Nayyar Hayat

Director - Customer Services

Mr. Shahnawaz Rehman

Director - Corporate Services

Mr. Irshad Ghani

Director - Human Resource, Administration & Coordination

Ms Ghazala Rashid

Director - Engineering and Maintenance

Mr. Babar Kamal

Director - Flight Operations

Capt. Anwar Adil Shaikh

Director - Precision Engineering Complex

AVM Amin Ullah Khan

HRA&C Department

The responsibility of HR is on the Human Resource Admin and Coordination department headed by director HRA&C (Ms Ghazala Rashid), who is assisted by General Managers who oversees the particular division of the HR department.

Since 18000+ employees are currently serving PIA and these employees are considered to be the greatest asset for the organization so the management of these employees is a big challenge for HR managers. The hierarchy of the HR department shows the structure of the HR department;

The responsibilities of HR department include, but are not limited to;

Align and HR strategies to achieve business vision and goals.

Development and implementation of effective career progression.

Cultivating and maintaining a culture that is well regarded and respected.

Pro-act, identify, develop and retain future leaders through coaching, leadership

Development programs and succession planning.

Recruitment and re-sourcing at all levels, grievances handling, development of personnel policies and procedures.

To be aware of all safety and service quality requirement and tobe to be responsible for the outcomes and findings of all internal & external safety/quality audits.

To ensure that corrective and preventive actions are taken at the root-cause levels on all audit non-conformities and audit findings in an acceptable manner and within reasonable time frame.

To ensure strict compliance to their department/division operational safety and security functions and also ensuring operation are provided with necessary resources

Ensure that all the corporate applicable rules and standards will be maintained and adhered by the employees of concerned department/division.

Advise top management on all matters concerning the employment, development and administration of human resources and formulate personnel policies for approval.

Consult with and advise the Managing Director and PIA top management in the development of major plans and long term strategy particularly in areas where the deployment of human resources is a critical or limiting factor.

Establish statistical reports for the review of human resources strengths, mix, turnover, etc., and monitor expenditures against plans and budgets.

Direct & guide on performance Management, HR Business support & Succession Planning.

Direct of legal and institutional discipline.

Guide & control outsourcing of functions wherever necessary

Ensure Internship Management, Rewards Recognition Management, Quality certification/Audit and employees' health & Safety

Guide and control welfare and Cafeteria / Canteen Services together with administrative services for PIA employees.

HRM Division

The HRM division is one of the 8 divisions of the HRA&C department. HRM division is headed by General Manager HRM, currently Mr. Abid Ali Sheikh. GM HRM is assisted by Deputy General Managers including Services, Records, Recruitment & Placement, and Compensation & Benefits.

As the PIA network spans the whole country and manpower in required in major coverage cities, therefore in PIA there are aggregately 10 HR managers at each city including Lahore, Quetta, Karachi, Peshawar, Islamabad etc. These managers report directly to GM HRM.

The following table gives a detail insight of the hierarchy of HRM division;


Pay Scale


Experience (Years)

Reporting Officer

Director HRA&C

Business/HR Degree








Ass. Manager


DGM/ Manager

Senior HR Officer



DGM/ Manager

HR Officer




DGM/ Manager

Staff Officer





Admin Supervisors





Admin Assistant




Ass. Manager/ Manager

Office Attendant




DGM/ Manager/ Ass. Manager

HRM Process

In PIA everything is centralized. For the performance appraisal reports and for the posting of employees to foreign stations, the data is being collected from HR RECORDS department. Since it is a government organization so it's mandatory for PIA to have a check and balance and record of all the employees as they are being questioned by the govt. in the assembly regarding the number of employees inducted and posted at foreign stations per year.

The steps involved in Human Resource Management Process are as follows:

Human Resource Planning


Selection & Placement


Training and development

Performance Appraisals

Compensations and Benefits

Career Development

Job Analysis

"A job analysis is the process used to collect information about the duties, responsibilities, necessary skills, outcomes, and work environment of a particular job."

The job description and job specification are extracted from job analysis.PIA is a member of IATA (international air transportation association) which requires PIA to have an IOSA (IATA operational safety audit) after every two years. This IOSA audit is required to be done by an IATA approved organization and it is valid for 2 years. It is the requirement of IOSA that PIA should 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. A separate manual with the name of corporate job description manual is available online which comprises the job specification and job description of man power working in different departments of PIA. The image is given below;


"The function of recruitment is actually to fulfill the man power requirement of PIA Organization"

The company regards employees as its greatest asset. Therefore, it is of particular importance that the right applicant is employed for the job. The company will recruit, train and promote staff on the basis of their ability, according to relevant legislation and company policies and requirements. Corporate Personnel (CP), guidelines issued from time to time continue to form the basis for recruitment and selection process within PIA.

Vacancies are first prioritized to be filled up by internal promotions. If position can't be filled internally then external sources are used.

As the HR records section has all the data base of the existing employees it can easily forecast the number of employees who will be retiring in the near future.

Internal Recruitment

Internal Recruitment is done by Promoting or upgrading the rank of any current employee by checking its capabilities & performance, for this the HR managers take help from the performance appraisals of the employees which has a record of their performances and then the succession planning is done accordingly. The policies regarding the internal recruitment is also in documented from which gives a detailed guideline regarding the procedure.

External Recruitment

To attract capable candidates externally PIA takes help from the leading newspapers (Dawn and Jang) and the official website of PIA ( These are the only mediums used by PIA.


"Decruitment is the process of reducing surplus of employees forecasted by HRP"

The decruitment strategy is followed to cut down surplus of employees but at PIA in relation with HRB there is surplus employees in may categories of non technical staff, but the categories including ground engineers, technicians, pilots, cabin crew and MTO`s are more rational. PIA management in accordance with the Govt. of Pakistan is affirm to recruit maximum possible manpower in order to compensate the unemployment ratio and is currently not interested in any rightsizing or derecruitment policy.

Recruitment Procedure

PIA is an equal opportunities employer and aims to ensure that no job applicant or employee receives unfavorable treatment on the grounds of gender, race, color, ethnic origin, religion, or disability. All appointments are made on the basis of merit and regional distribution of seats as restricted by the Government of Pakistan.

Application Form

Application form is the first step to determine the initial performance according to which merit list is made and it is followed by the above tests and in case of different categories these tests may also include simulation tests and background verification and then the employee is finally hired according to the regional distribution of seats.

Applications are invited on the prescribed Form available (free of cost) in PIA Recruitment & Placement Office at Karachi and in PIA Offices at other stations and also on PIA website. Vacancies are announced on all the local news paper and the PIA official website.

Application forms is must for a candidate to fill, if he/she is applying for respected seat or position

Application form is filled so that information regarding Background is known such as place of birth, current address, domicile and e.t.c.

Physical information such as height, weight, eyes, disability nature, and other info regarding physical appearance and body is taken

Marital status, nationality & religion is asked

Education background is also asked to estimate the performance of a candidate

Candidate is asked if he/she has applied in PIA before or not.

Candidate is asked about any present job pay & source of income

Candidate is even asked about number of children's if married

Candidate experience is asked if he/she has worked before in any other company or organization

Eligibility Criteria


The qualification that is compulsory for applying in PIA is started from matriculation degree and end to master degree and this very from job to job. Similarly for few job vacancies like cleaners and helpers, the minimum qualification is middle and matric.

Age Requirement

Requirement for the age is also vary from post to post and its most probably depend upon the experience required for a specific job. But generally the age requirement for PIA is ranging from 19 to 24. "The age barrier has also upwards, meaning that a candidate must be a minimum of 19 years old and a maximum of 24". Age relaxation is also given on certain cases.

Regional Distribution of Seats

Being a public sector organization the recruitment is done on quota basis. Regional Distribution is a standard through which selected numbers of people are hired by PIA depending on their region type, because every region has its specific quota as we can see in the chart below:


The outcome of the recruitment process is the selection of a person for a particular seat. To hire the competent employees for the job at PIA, the selection process varies from one category to another. Like for each department there are different selection procedures and methods. For the selection of air hostess the selection procedure includes grooming test, height test, and the medical test (including the check up of their skin). For the selection of cockpit crew, PIA takes the simulation tests as well. All of these tests are taken before interviews. Generally 2 methods are used by PIA for all categories including written tests and interviews. These written tests are deliberately made tough 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.

After the submission of application form, those candidates who meet the eligibility criteria then go thru the following tests:

1-Physical Test

Physical test is considered the first selection test in which the interviewer determines that either candidate is full filling the physical requirement for the job or not.

2-Grooming Test

If candidate selected in the first interview, he is then taken for a grooming test. Here, men and women present themselves in a manner, both physical and behavioral, befitting the job while women's make-up skills are also checked. The physical and grooming test are requirement for cabin crew but is exempted for other departments.

3-General Test

Once the grooming test is cleared, the candidates' general knowledge is tested in written and oral tests. These tests are sometimes based on brainstorming. According to different job positions, these tests are prepared by the internal examination unit or external units. Now days this selection tests are administered by NTS.


After the induction of employees a formal orientation program is arranged at PIA training center to give the employees an initial and basic know how about the organization. Departmental heads play a vital role in the orientation process.

Management Training Unit

The management training unit provides orientation courses for newly inducted training officers and supervisory skills for engineers. Besides the orientation courses, this unit also offers short courses and seminars on leadership, team work, motivations, stress management etc.


To make the employees learn the culture of the organization regarding how the rules, regulations and the policies are practically implemented in the organization, socialization is very important. There is no formal and informal platform for employee`s socialization, after induction employees get along with their colleagues and sub ordinates very well and this way they learn the culture of the organization b y themselves.

Training and Development

PIA is pursuing a strategy of recruiting and retaining talented resources and training them to achieve operational excellence. It is essential to strengthen the manpower resources as operational staff has the responsibility to minimize risks related to engineering and operations. Training forms an integral part of the management system to update and improve the level of knowledge and productivity in the company.

 Training must be directed towards the company objectives and towards meeting divisional, BU, departmental and individual goals. This will be achieved by staff attending internal or external training programs.

The training and development programs for the employees are in relation with the industry practices. The training courses are predefined and SOPS are developed, Standard Operating Procedures (SOP) are prepared for each critical utility or piece of equipment to provide all personnel working with the equipment information and instructions on what is required in order to maintain, operate, and clean the utility or piece of equipment.

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.

Training and development of existing and new employees is the responsibility of training and development department which is headed by director training and development.

PIA Training Center

The PIA training center (PTC) at Karachi is the only airline-training establishment in Pakistan where comprehensive instruction in almost all major fields of commercial aviation including Flight Operations, Engineering and Maintenance, Flight Services, Airport Services, Marketing(Reservation and ticketing), Information Technology and Management( Soft skills). There are around 75 highly qualified and experienced professional instructors at PTC specialized in different fields of airline operation.

Training Facilities:

Training facilities available include

Flight simulators

Cabin mockup mini airport

Language lab

Electronic labs


CBT (computer based training)

Classrooms equipped with modern teaching and training aids.

These facilities and equipments are maintained by highly skilled and experienced support staff.

Foreign Training Programs

At the foreign training programs mostly the instructor of engineering dept. and cockpit crew is sent abroad, sometimes a group of employees go there with the senior instructor and sometimes only the instructor goes for foreign training alone. These instructors and employees are trained from aircraft manufacturer, vendors, IATA and other Organizations. Each year the training members of different unit receive IATA/IATF scholarships awards. The instructors of regulatory courses are qualified and approved by CAA.

Problems in Training and Development

Apart from the focus of management towards training and development and their planning there are still few problems in this area;

There is a shortage of skilled and experienced instructors

Due to lack of incentives and salary package many senior instructors left the training in near past

Training and development of newly inducted junior instructors is still is progress despite being inducted 3 years back

Availability of class rooms is always an issue

Yearly training program is made but is not completely followed

Employees at middle to higher management level do not take trainings seriously or up to the mark.

Performance Management

Performance appraisal is an ongoing process of communication between the supervisor, who is trained and assisted by human resources staff, and the employee. It's too much difficult to measure the employee actual performance. Compare the performance of the employee being appraised with the performance of all individuals who have performed the same job, keeping in mind the requirements of the job. Supervisors assess employee's performance by seeking time, situation and behavior of employee by performing their task: like Graphs rating scale and Paired comparison methods. They do not focus only one method because one method can't be so appropriate for evaluation. When an employee is performing well, they do appreciate him/her to motivate and to improve their performance.

For the evaluation of performance of the job holder, performance appraisals are being prepared for each employee on yearly basis. At PIA the immediate supervisor of each worker is responsible for evaluation of each employee under him and then he submits this evaluation report further to the manager.

Till group 6 staff and officers, the evaluation done by immediate supervisor is considered to be the final evaluation whereas in case of assistant positions, the evaluation done by the immediate boss is further reviewed by the General Manager and he has got the veto to overturn, cancel or rectify the flaws (if any) in the evaluation done by immediate supervisor.

Performance Evaluation Forms;

The performance evaluation is actually based on the annual forms called performance evaluation forms that are to be filled by the evaluator and it contains all the information regarding any special project or difficult task performed by an employee and the best or poor performance of an employee. Performance of employee is checked on basis of different categories in which they are graded from point 1 to 5 depending on their skills. All points given to candidate or employee is totaled, the total max points are 40 points out of which candidate/employee getting 35+ points has high chances of being hired or promoted to higher position, while 25 - 35 are kept in merit list and 15 below are rejected.

Definitions/Shades of Qualities

Performance appraisal report which consists of all the necessary personal and job skills required by the employee and their grading in form of 5 levels; Outstanding, above average, average, below average and inferior having score from 5-1 i.e. outstanding gets 5 points.

Performance Appraisal Form

Another document is the performance appraisal form which also must be filled by the supervisor and it contains the information of the employee and the duration for which he was assessed. It also contains the instructions and criteria of declaring an employee as being outstanding, above average and so on. The criteria mentioned in the performance appraisal form are given below;
















At the end of this report is the career option for employees which is signed by the concerned departmental head. A specified area for employee comments and for PARD (Performance Appraisal Review Board) in case if employee appeals to the board against his performance evaluation.

Uses of Performance Appraisal


Feedback is considered very important and after the evaluation procedure if an employee has done great or worst then it is the responsibility of immediate supervisor to praise him or make him understand his job requirement or issue him any warning letter e.t.c

Succession Planning

Thru performance evaluation it is determined that either the performance of an employee is above average, average, below average or poor and then decisions for the promotions are made accordingly. For being a manager, the performance appraisal of last 2 years must be above average. For being an assistant manager from an officer its required that the performance appraisal of 2 years must be average and above average respectively. These standards vary from one position to another.

Compensations and Benefits:

At PIA initially performance based rewards were given to the employees for their best performance but now nothing like this happens. The compensation and benefits given to the employees at different hierarchy level are pre defined, PIA has categorized its employee benefits into two positions one is ground staff and the other is for flying staff. The benefits are provided according to designation and this is how the employees are retained and motivated at PIA.

Following are some of the allowances and benefits that are given to the employees at PIA.


Death or permanent disability

Complete insurance of every employee

Loss of baggage of cabin crew/ flight engineer

War risk coverage

Employment of dependents of serving/ retired/ deceased

Foreign Allowance

Rental ceiling( furnished :area/station head) (un-furnished:-sectional heads)

Company car & fuel ceiling area/station head/station manager

Education allowance up to 3 children @USD 275/month

Social security

Mobile/telephone ceiling

Advance against accommodations allowance

Domestic Stations Allowance

Car/fuel allowance

Subsidized meal facilities

Over time

Washing/uniform/kit maintenance.

Grooming allowance for females

Rental ceiling

Fuel ceiling


Air ticketing

Free medical

Loan benefits

Retirement benefits



Hajj package

Adoption benefits

In short PIA offers a lot of incentives and a lot of allowances for their employee.

Career Development

In PIA there is a section named Staff development under division of organizational development, which is responsible for the career development of employees. Throughout the employee's career with PIA, all the employees are provided with opportunities for professional, technical and personal development. In return, PIA expects them to work with dedication, integrity, and commitment as PIA strives to become a world class airline. But being a government organization PIA does not actually follow any practices regarding the career development of its employees and this department is just a department for the sake of department.

Achievements by Hr Department

There are many achievements by HR department mentioned at different sections at this report. Apart from them these are also the achievements by HR department;

PIA is the first airline to get certified (initial certification) on Safety Management System (SMS) by Civil Aviation Authority CAA - Pakistan. CAA Air Navigation Order (ANO 91.0032 issued in September 2008) binds all airlines operating in Pakistan to have SMS. Well before the issuance of this ANO, PIA initiated SMS awareness and implementation in July 2008. PIA awarded initial certification on SMS in 27th February 2009 by CAA.

PIA Horticulture, set up in 1996, provides flowers for display in PIA's offices and for a range of events, winning several awards and accolades at flower exhibitions across the country.

Introduction of bell curved appraisal methodology in past. Which sustains a high-performance, high-talent culture.

Maintaining female workforce of 10% and is aiming to enhance more female workforce. Due to this reason that PIA is the first airline in Pakistan to operate a flight with an all female crew at command and in the cabin.

Provision of equal employment opportunities for disable persons in technical and non technical areas.

Hajj ticket to 10 employees per year on lucky draw basis.

Introduction of buffet system in PIA canteen on discounted rates.

Maintaining a positive grant of salary before the beginning or at the first day of each month.

Maintenance of cleanliness throught out the area including the production(hangers, shops, stores) and offices.

Areas of Improvement

PIA is a huge organization and even now it has the monopoly in the market because it is the only airline in our country that flies to 37 international destinations and 23 domestic destinations. From the size of this organization we assumed that PIA should be earning huge profits on its operations but in fact it is not like that. Unfortunately for the past several years PIA is facing huge Losses.

There are certain reasons and areas of improvements which are not limited to;

Inefficient management of the workforce. It is perceived that the organization takes best care of its employees and follows all the HR rules, regulations and policies, but this doesn't happen practically.

PIA management is not serious in right sizing of the organization as the government and present management want the things to move in the same manner due to political reasons. Under the HR policy, the government plan no reduction of manpower to take place in operational areas of pilots, aircraft engineers, technicians and specialized professionals. However, there could be reduction in non-operational areas through normal attrition,

PIA has skilled manpower and it can be efficiently utilized by purchasing more aircrafts so that the ratio of manpower to number of aircrafts could be balanced out. Currently PIA has 450+ employees per aircraft versus 150 employees per aircraft is the standard.

There is a need to make agreements with foreign airlines for deputation of skilled manpower abroad to gain extra revenue.

Undue political influences will have to be discouraged as it's the duty of Govt. to facilitate its institutions. .

There are more than 5 employee unions. Employee unions are creating hindrances in improvement of Corporate performance. Unions should be given limited authorities and their activities should be minimized leaving no room for idleness of staff.

Development of market based salary structure & forceful cultural change is required via higher, middle & lower level managers.

Currently job rotation is not implied in PIA due to strength of trade unions. Job rotation is necessary in certain areas to discourage employee's grouping.

As far as technical training is concerned, PIA has come across 4 major incidents because of the technical faults in its airplanes. This organization must improve the technical training programs and start them as the new employee is inducted.

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.

The Enterprise Resource Planning (ERR): The PIA currently does not have such a system and preliminary work has been initiated to conduct a study and prepare a road map for implementation of an ERP.

PIA should decentralize is its structure that would lead to the easy management, increased motivation, easy access to information and resolution of the conflicts (as they would be resolved by the immediate manger time span would then reduced). Since employees issues regarding their behavior would lessen, so it would ultimately lead to more satisfied employees that would result in enhanced productivity of the organization.

PIA should make efforts towards empowering the employees that is going to lead to more employee participation in the decision making process and also result in more employee satisfaction and enhanced motivation. However, with empowerment comes accountability, so it is suggested that while they empower their employees, there should also be a "controlled check" on them to ensue the correct usage of power delegated to every employees within their circumscribed limits.


After meeting with General Manager (HRM) and various people working in HR department, we concluded that all the people have serious concern about the performance of PIA. Employees are worried and are showing more commitment towards the organizational development but due to the political influence and political pressures the system is not running smoothly.

There is a room for improvement in many areas at HR department but there is nothing which could not be achieved. If the management becomes more responsible and serious about solving the problems face by the company, PIA can attain its profitability. Through consistency in policies the revenues in billions could be converted in to profits which are going in losses now.