Report of HRM department of PIA Pakistan

Submitted to:
MAM AMMARA SALEEM
Submitted by:

Muhammad Farooq Arshad BBA-12-56

Muhammad Saleem
BBA-12-38
Naveed Shahzad
BBA-12-64
th
BBA 5 Semester (Morning)

Department of Business Administration

BZU sub-campus Sahiwal

ACKNOWLEDGEMENT

We are thankful to Almighty ALLAH, the most beneficial, merciful & gracious whose faith
encouraged us in every aspect of life and never disappoint us. We feel much obliged to our
loving PARENTS,whose prayers enable us to reach at this stage.. We are very thankful to our
course instructor, Mam Ammara Saleem, for her help, precious advice and supervision in
making this final term project report.

Purpose of project:

Our major purpose is to practically use the techniques of HRM.

Use questionnaire and interview to get awareness about HR practice of PIA.

The pursuit of excellent through technology and quality control and ushering in a new era
of growth and development.

Organization selected:
PIA (Pakistan International Airline) Lahore, Pakistan.

Scope of our project:

Due to the large number of employees are working in current environment which makes it
impossible for the management to monitor individual needs. As human resource department
create a productive environment in the organization where employees value add consistently to
the organization and to each another. So this project provides us opportunity to study human
resource practices of PIA which will provide us support in future.

What we are ask to do:

Our teacher assigned that we have to firstly select the organization and then make a draft about
the project then we have to make questionnaires after the approval of our draft we have to make
a visit to PIA. At PIA we fill out the questionnaires and interview the staff after the collection of
data we make our project report.

Content:

Serial No.
1
2
3
4
5
6
7
8
9

Topic

Page No.

Introduction
Executive Summary
Hierarchy of PIA
Vision statement of PIA
Mission statement of PIA
Introduction of HR practices in PIA
Gaps and recommendation
Appendix
Reference

6
7
8-9
10
10
11-16
11-16
17-21
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Introduction:
Pakistan International Airlines generally known as PIA; or Pakistan International is
the national flag carries once regarded as Asia's best airline, it is headquartered at Jinnah
International Airport in Karachi and 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 base. .

Pakistan International Airlines Corporation (PIAC) is majority owned by the (87%) while the
remainder (13%) by private shareholders. The airline is under administration of ministry of
defense the chairman of which is AHMAD MUKHTAR. The airline is managed by managing
director as well as the board of director. The current chairman of PIA is LT. GEN(R) Asif
YaseenMalik.
In 1990s, the Government of Pakistan considered selling the airline to the private sector due to
the persistent losses suffered by the airline.PIA performs various services to their customer like
Cabin, Newspapers and magazines, frequent flyer programmer, Catering Cargo Operation

Executive summary
During student life, a practical experience at an industrial or financial concern is very interesting.
Our project on PIA at Lahore is also very interesting and informative experience. This report
carries a detail account on step by step HR procedure and practices followed in PIA. Objective of
report are to provide feedback to PIA management to enable readers to have factual information
about airline. To fulfill our thirst for knowledge we have visited PIA office in Lahore and we
contracted Sr. HR manager who provide us with all the necessary information regarding our
project. We interview PIA employees at different levels, specially the HR professionals.

ORGANIZATIONAL STRUCTURE OF PIA:

CHAIRMAN PIA

SA to Chairman

Secretary PIA
Managing Director

Director Precision Engineering

Chief Operating Officer

Director Airport Services

Director Administration

Director Flight Services

Director Cargo Sale & Service

Director Coordination

Director
Flight Operations

Director Network & Route Planning

Director Finance

Director Marketing
8

Director Engineering

MANAGEMENT OF PIA
Managing Director

Captain Mohammad Aijaz Haroon

Chief Financial Officer

Mr. Arif Majeed

Director - Corporate Planning

Mr. Shah nawaz Rehman

Director - Flight Operations

Capt. Shuja Naqvi

Director - Human Resource &

Administration

Mr. Hanif Pathan

Director - Training and Development

Mr. Dilawar Farid Baig

Director - Procurement, Logistics and Food

Services

Mr. Imran Ahmed Khan

Director - Information Technology

Mr. Shahid Sarwar

Vision statement:
To be fiercely competitive consistently exceeding customer expectations and be the choice
employer that embraces modern technology in all spheres of its activities.

Mission statement
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.

10

Human Resource Department in PIA:

Every organization has human resource function whether or not a specific human resource
manager has been so designated. Every organization must hire, train, pay, motivate, maintain and
ultimately separate employees. Organization has its peculiar administrate structure, which suits
the functions, objectives, strategies and rules and procedure of that organization human resource
management is the collective activity directed towards the attainment of a specific goal. It is
rational action, an attempt to maximize ones goals by relating means to ends. Human resource is
one of our most complex and challenging fields of endeavor. The human resource manager must
be greatly concerned with the expectations of both employees and society in general. The
employee is simultaneously an instrument of the firm, and human being and a citizen ends. The
Pakistan International Airlines has an human resource department, which involves the
organization and management of man and material in order to accomplish its goals, the human
resource department is headed by a manager, where as the head of the overall human resource is
at the are level by an Area Ahead .

Management of Human Resources

The human resource department in PIA manages the personnel and is concerned with the
direction of these individuals and function to achieve ends previously determined.

Methods and Procedure

The techniques and process of working and the interrelationships of various functions are
determined by the human resource Department in PIA
Materials and Supply
The human resource department of PIA provides the tools and requirements with the help of
which the operational work is carried out. These include Pen & Ink, Computer, papers, files,
cabin, furniture, air-conditioner, and etc. these materials and supply are maintained by the
PIA human resource Department.
Maintenance and Security of the Organizational Environment
The arrangements for infrastructure like offices support services, and the human resource
department maintains physical facilities. The security of the offices, building, furniture and
fixtures and supplies etc

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HR practices in PIA or important functions of HR in PIA:

1). Job analysis:is a process to identify and determine in detail the particular job duties and requirements
and the relative importance of these duties for a given job. Job Analysis is a process where judgments are made
about data collected on a job.

The formal methods of job analysis in PIA:

The function of job analysis is the position analysis questionnaire, and the critical incident technique. Job
analysis is useful in PIA for preparing job descriptions and job specifications which are the basis for most of the
HR activities like recruitment, training, performance appraisal, industrial relations and wage and salary
administration.
Job design
They determines the way in which work should be performed which, in turn, affects the degree of authority of
an employee over the work; the scope of decision-making by the employee; the number of tasks an employee
has toper form; and employee satisfaction. The main objectives of job design are to meet PIA requirements such
as operational efficiency and quality; and to simultaneously satisfy the psychological and sociological needs of
the employees.
The Job; not the person
An important function of Job Analysis in PIA is that the analysis is conducted of the Job, not the person. While
Job Analysis data may be collected from incumbents through interviews or questionnaires, the product of the
analysis is a description or specifications of the job, not a description of the person.
Recommendation: PIA can use job analysis practices of HR in as following segment that will not only make
strong HR of PIA side by side help organization for hiring more efficient employees.
I.
Training Needs:
Job Analysis can be used in training or needs assessment" in PIA to identify or develop:
training content
assessment tests to measure effectiveness of training
II.
Compensation:
Job Analysis can be used by PIA in compensation to identify or determine:
skill levels
compensable job factors
work environment
III.
Selection Procedures:
Job Analysis can be used by PIA in selection procedures to identify or develop:
Job duties that should be included in advertisements of vacant positions
minimum requirements (education and/or experience) for screeningapplicants
interview questions
IV. Performance Review
Job Analysis can be used by PIA in performance review to identify or develop:
goals and objectives
performance standards

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2).Recruitment and Selection:

Recruitment is the discovery of the potential applicants for actual or anticipated
positions. The vacancies are created after the approval of the finance department. The
PIA recruitment and selection procedures involve the following:
i)

ii)

iii)

iv)

Recruitment Policy:
The recruitment policy given the following conditions for recruitment:

The age limits for the recruits are between 18-26

The educational qualifications of the employee.

Officers (Executive Category) Master Degree /MBA/MPA /BBA(honors)

(Any recognized University by Federal Govt.)

Assistant Officers/below Category Matriculation to B.A./B.Sc

Sources of Recruitment:
Whenever a vacant position is available, the head of department make reviews of
the existing personnel and carry out a search within the organization for suitable persons
before trying the outside sources. But if a person with the required qualifications for a
given job is not available, fresh recruitment is made.
Techniques of Recruitment:
The vacant posts are advertised through the local and national newspapers and
applications are invited with the job specification and description showing the job
requirements and eligibility.
Selection Procedure:
The selection process is concerned with the securing relevant information regarding
the applicant. The selection procedure uses the screening devices so that the most
efficient and professional employees should be available to the organization. The
selection procedure in PIAC is based upon three important principles, namely:
I. Competence
II. Equality of Opportunities
III. Neutrality

13

a)

b)

c)

d)

e)

f)

g)

h)

The following screening devices are used in the PIAC during the selection process.
Application Blank:
Each applicant blank provided by the Admin. Department. The application form
has to be filled by the applicant in his own handwriting submitted to the admin dept
before a specific date. The format of the application blank is given in the appendix. In the
application, the personal data, educational qualifications and experience etc. of the
applicant is give.
Test:
These applications are scrutinized and the candidates passing through the security
are called for a written test. The test s conducted by a Board from the Head Office with
the assistance of the Administration department at the concerned stations.
Interview:
Those qualifying the written test are called for an interview administered by the
selection board assisted by the administration department.
Physical Examination:
There is usually a formal physical examination of the candidates. Another
requirement is the submission of a formal Medical Fitness Certificate from a doctor.
Approval by the Competent Authority:
After going through the whole process of selection, the list of recommended
applicants is sent to the competent authority for approval.
Offer of Appointment:
After the approval, the Administration Department notifies the decision to the candidates
through a letter of appointment.
Orientation Period:
After appointment, the employees go through an orientation period i.e. Probation,
for MBA/MPA/BBA/BPA (honors) as executive the period is 5 weeks. And for
employees of under-officer class, the period is 3-6 months.
Confirmation:
After successful completion of the orientation period, the employees apply for
confirmation to a competent authority.

14

Recommendation:
All positions in PIA should fill by above average intelligence, appropriate qualification, integrity
& good character candidates. All recruitment should be made on merit. The standard of
suitability and merit should be determined by the management of PIA. PIA should dismiss or
convicted of an offence person not eligible for any post. Competent authority may relax the
maximum age limit up to 10 year. PIA should up to data their selection process according to meet
current
need
and
demand
of
society.
3). Managing wages and salary:
Salary and pay scales of an organization is a test of attracting professionals and
efficient manpower towards the organization and are also a means to retain them. The HR
dept. maintains pay records of employees categorized into different pay groups according
to the salary structure it includes:
Pay group I-IV
:It includes the Unionized Staff

Pay Group V-IX:

Includes the officers and middle level management

Pay Group X-Above: It includes G.M; and other higher executives

A special pay group is for the managing director, director and pilots.

Recommendation:
PIA should change their salary or wages as society value of money vary or should provide side
by side compensation for attracting employees toward PIA.
4). Training and development:
Accordion to Gallbraith, We can get the larger part of our output not form more
capital investment but from investments brought about by improvement. PIA has its own
training center, known as PTC, under the control of the HR department. It includes.
On the job training
On the job training is given to employees already existing in PIAC. It is given to
employee to update the employees knowledge of various procedures, methods, rules and
regulation etc. and familiarize the employees with the changes and advancements taking
place from time to time. One of the methods of no-the-job training includes job rotation.
i.

Job Rotation
As an important method of training, it enables the employees to work at different
positions and get an overall picture of the working of PIA.

15

ii.
Pre-Job training
The pre-job training is imparted to the various categories of employees before they join the
organization and assume responsibility. The pre-job training to the flight stewards and hostesses
for specific period.
Recommendation:
PIA use two policies for training and development as world around us changing in every second
so PIA need change in training and development as Training is also conducted for African of
scholarships granted by the ministry of foreign affairs, Government of Pakistan.Although
PIA training center introduced advanced course in Quality management TQM and ISO-9000
certification. It is planned to develop PTC to receive an ISO-9000 certification in the next
one-year.

5).Performance Appraised:
Performance appraisal is the systematic evaluation of individuals with respect to their
performance on the job and their potential for development. In PIAC, the evaluation is made by
each person immediate officer, and this rating is in turn reviewed by his superior. Thus their
superiors also evaluate all the people who appraise others. The annual credit report (ACR) is
made of every employee at end of the year in view of the evaluation and appraisal given by the
department head.
Recommendation:
As PIA should take into account the past performance of the employees and focuses on the
improvement of the future performance of the employees. People differ in their abilities and their
aptitudes. There is always some difference between the quality and quantity of the same work on
the same job being done by two different people. Performance appraisals of Employees are
necessary to understand each employees abilities, competencies and relative merit and worth for
the organization. Performance appraisal rates the employees in terms of their
performance. Performance appraisals are widely used in the society.

6).Compensation Management:
All forms of pay or rewards going to employees and arising from their employment.
Compensation means providing extra benefit to employees who work in organization.
Compensation can take form as House Rent, Shift Allowance, Night Shift Allowance
Night Shift allowance is introduced for officers working in rotating shifts, Meal Allowances
Meal allowance is given to officers who work at a stretch, washing Allowances, Utility
Allowance, Conveyance Allowance, Car Maintenance Allowance, Grooming Allowance, Non
PracticingAllowance,QualificationPay
Recommendation:
As compensation policy of PIA is much better than other airlines but as our survey result show
that employees or not satisfied with current compensation policy this may b due to increase in
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money value employees or expecting more compensation PIA should change their policy in
order to satisfied employees.

Analysis
Suggestions: Planning, Recruitment and Selection
Problems:

1) Lack of Coordination
There is lack of coordination amongst employees.
They are unaware of the future objectives and what will be done next. They
just perform the tasks without knowing.

2) Centralized Culture
At happening in the head office.

Suggestion:
We suggest the head office should delegate authority to a few regional
offices so that employees are better aware of the short term goals that need
to be achieved, this can increase coordination amongst the employees.
The Culture is very centralized at PIA and the employees feel
disinterested in their jobs or the prosperity of the organization. Also the HR
managers have little authority thus they cannot interfere with the strategic
decisions of the organization.

Suggestion:

There is a need to extend their networks of decision

making, and involve employees so that they feel they are part of the
organization too and take interest. They need to allow the HR department to
delegate authority related to their department. This will allow the HR depart
to create high performing work systems by creating core competencies and
behaviors in their employees necessary to achieve the organizations goals.
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3) Weak Human Resources Department

In this era a strong and efficient HR department is considered the back bone
of any organization. But PIA has a very Weak HR department. They only have
limited HR officers who also have limited authority. There is also no
implementation of strategic Human resource Management nor can the HR
department perform their coordinative or staff functions successfully.

4) Poor Strategic Decisions

The strategies are formulated at the head office and they follow a centralized decision making
approach due to which there hasnt been proper implementations of the strategic decisions.

Suggestions:
We suggest they improve their strategic Decisions by adopting the decentralized approach.

5)Old HR Manual
This may be due to the centralized decision making, but the HR manual was last
updated 10 years ago.

Suggestions:
We suggest that the HR department be given authority of the HR manual so they
can up date it, keeping in mind the companys strategic objectives.

6) Poor Management
The Management at PIA is very poor. Their recruitment policy is not that effective
and they tend to be targeting older people with it. The current trend is to hire fresh graduates
who have a knack of grasping things easily, adaptability and greater vigor.

Suggestions:
PIA needs to start advertising in Universities or places where a younger pool of
people may be attracted.
The Management at PIA is very poor. Their recruitment policy is not that effective
and they tend to be targeting older people with it. The current trend is to hire fresh graduates
who have a knack of grasping things easily, adaptability and greater vigor.

18

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

7) Lack of Adherence to the Manual

Although the Manual clearly states authority to the managers, it is not being
exercised. There is a lot of government and political interventions including practices of
favoritism.

Suggestion:
The HR manual be updated and all employees at all levels should adhere to it. The
HR department needs to be given authority to ensure line managers comply with equal
employment laws and occupational safety and are implementing the companys human resource
policies and practices.

8) Maximum age for airhostess is being ignored

The maximum age for cabin crew air hostess is 30 years, it is being ignored and
we see many old air hostesses. This shows ignorance of the HR manual.

Suggestions:
The HR manual be updated and the age be increased to 35 years or 40.

Our experience and Observation at PIA Lahore

By this report we got the opportunity at PIA Lahore to understand Human

Resource Management department and got good information at the station and for that
we are very much thankful to Ms Sadia Malik (Sr.Human Resource Officer PIA Lahore).
She gave us good information and guided us about the organizations structure and
administrative setup. It was indeed a very good experience to get HR management
information. It helped us a lot to understand organizational setup and how to work in a
corporation.

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Appendix:
Questionnaire
Respected Sir, this questionnaire is designed to collect information about implementation of HR
practices in PIA.Your response will be treated confidential and used for only academic purpose.
We are BBA (hons) students of BAHAUDDIN ZAKARIYA UNIVERSITY (Sahiwal Campus).

Please tick the appropriate box for your answers.

Name: ______________________________
Gender: ____________________________
Post: ___________________________________
Working experience: _________________________
Age: _____________________________
Academic or professional qualification: ______________________

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Please tick the appropriate box for your answers:

Extremely
dissatisfie
d
1
2
3
4

10

11

12

Somewhat
dissatisfie
d

Office/work
environment
Hour worked
Geographic
location
The nature of the
working required
in your role?
Do you have
opportunities for
advancement and
development?
Do you have
performance
review and
development?
Do you have
training and
development
opportunities?
Do you have
access to training
program?
Do you have any
formal
announcement
for the result of
vacancies?
Do eligibility
criteria base on
qualification?
Do eligibility
criteria base on
age requirement?
Do selection
21

neutral

Somewha
t satisfied

Extremely
satisfied

procedure is
based on physical
test?
13

Do PIA made
compulsory to
have age 19 to 24
year for
candidate?

14

Does PIA have

grooming test for
selection?
Does your
organization pay
focus on
recruitment
procedure?
Are you satisfied
with recruitment
and selection
current policy?
Does your
organization
have job analysis
procedure?
Are you satisfied
with current job
analysis
procedure?
Salary

15

16

17

18

19
20

21

Do you have
awareness of
other benefit
offered by your
organization?
Does your
organization
offer other
compensation
22

22

23

24

25

26
27

28

29

30

31

32

beside salary?
Do you enjoy
health and
insurance
benefit?
Do your
performance are
evaluate annually
or semiannually?
Do you kept
awareness of
your
performance
evaluation?
Are you satisfied
with performance
evaluation scale?
Is your workload
is manageable?
Do you know
what is expected
from you to do
your job?
Does your
position involve
high degree of
pressure?
Does your work
assignment
change
regularly?
Do you rate your
employee on
quality of work?
Do you have
ability to respond
well to the
change?
Does your
organization give
you any support
23

or guidance in
achievement of
task?

24

References

http://www.google.com
http://www.wikipedia.org
http://www.scribd.com
PIA Human Resource Manual on PIA official website.
Reference Textbook Human Resource Management by Gary Dessler.

25