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HISTORY

When our beloved Country PAKISTAN was still in offing in june 1946

Mr. Mohammed Ali Jinnah, the Founder of the upcoming Nation, instructed Mr. M.A.

Ispahani, a leading industrialist, to set up a national airline, on priority basis. The new airline

was initially registered in Calcutta as Orient Airways Ltd. an operating license was obtained

in May 1947 with Calcutta as the base. Mr. M.A. Ispahani was the first chairman of this new

airline.

After the birth of Pakistan it was realized that the Orient Airways being a privately owned

company, with limited capital and resources. It could not be expected to grow and expand

on its own, so Orient was invited to merge with the government of Pakistan. The outcome

of the merger was the birth of a new airline, named Pakistan International Airlines (PIA) on

11 March, 1955.

In March 1960, PIA launched its first jet service (Boeing 707) on the London-Karachi-

Dacca, route which was very success successful. This service enabled PIA to become the first

Asian Airline to operate a jet aircrafts. In 1961 PIA started a flight schedule from Karachi to

New York. In 1962, PIA set out to break the record for the fastest between London and

Karachi. With representatives of FAI (Federation Aeronautique International) on board to

monitor the official timings, PIA completed the flight in 6 hours 43 min 51 sec, the fastest

record which to this day remains unbroken.

In 90’s PIA expanded its business for massive HAJ and Umrah operations to

Pakistan's smaller cities besides the operations from the major cities of Islamabad,

Peshawar, Lahore, Quetta and Karachi. At present, PIA operates to 70 destinations (38

international and 37 domestic ) in countries spread over 4 continents of the globe.

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INTRODUCTION

In Pakistan, PIAC stands for "Pakistan International Airline corporation". It is one of

the best airline of the world. Its revenue is in millions of dollars and playing an important

role in the growth of the economy of country. It was established in 1955 as a statutory

corporation. Its departments are administration, human resource management, finance,

marketing, communication and operation department.

The network of PIA flights is spread all over the world. It is operating on 55

international air routes and 38 domestic stations.

BOARD OF DIRECTORS

Ch. Ahmed Mukhtar (minister for defence and chairman PIA)

Malik Nazir Ahmed

Mr. Javed Akthar

Lt. Gen (retd) Naeem Khalid Lodhi (Federal Secretary Defence)

Syed Omer Sharif Bokhari

Dr. Waqas Masood Khan( federal finance secretary)

Mr Hussain Lawai

Makhdum syed ahmad Mahmud

Khawaja jalaludin roomi

Mr. yousaf waqar

Capt. Nadeem Khan Yousufzai (Managing director PIA)

Mr. Muhammad Shuaib (secretary of PIA).

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MANAGEMENT MEMBERS

Managing director

Capt. Nadeem khan yousufzai

Deputy Managing director

Mr. M.Salim sayan

Chief Financial Officer

Mr.Nayyar Hayat

Director- corporate Planning

Mr.Irshad Ghani

Acting Director - HR, administration & coordination

Capt. Saleem Ahmed

Director - Engineering & Maintenance

Mr.Maqsood Ahmed

Director-Flight Operation

Capt. Naveed Ahmed aziz.

Acting Director-Airport Services

Mr. S. Aijaz Mazhar

Director-Information Technology

Mr. Sher Muhammad jamali

Director-flight Services

Capt. Muzzafar Talpur.

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Acting Director-marketing

Mr. anjum Amin Mirza

Director-Percision engineering Complex

Amin ullah khan

Acting Director-Procurement &logistics

Mr. amanullah qureshi.

The board of directors and management stand commited to flourish the PIA. They are able to work

on short term goals and long term objectives in the light of vision and mission statement of PIA.

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Vision and Mission Statement

VISION

“ PIA’s vision is to be a world class airline meeting customer expectations through excellent

services, on-time performance, innovation products and absolute safety”

MISSION STATEMENT

“PIA will be the airline of choice in all its international and domestic markets, consistently

exceeding customer expectations, by providing exquisite quality, reliable and safe air transportation

while earning sustaining profits for its share and getting the entire world market captured”.

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GOALS AND OBJECTIVES

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

To provide and develop safe, efficient, adequate, economical and properly coordinated

domestic as well as international air transport system.

To operate any air transport service or any flight by aircraft for a commercial or other

purpose, and to carry all forms of aerial work.

To acquire, own, run, mange or participate in the running management of, any hotel or

business connected therewith.

To provide for instruction and training in matters connected with aircraft or flight by aircraft

of persons employed or desirous if being employed either by the corporation or by other

persons.

To promote any organization outside Pakistan for the purpose of engaging in any activity of

a kind which the corporate has power to carry out.

To acquire, hold or dispose of any property, whether movable or immovable, or any

transport undertaking.

To repair , overhaul, reconstruct assemble or recondition aircraft, vehicles or other machine

parts, accessories owned by the corporation or by any other person.

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OFFICES OF PIA

HEAD OFFICE:

Head office – Karachi

PIA Building,

Jinnah International airport,

Karachi -72500.

REGIONAL OFFICE:

PIA Building

near wapda house,

mall road Lahore – 44000.

BOOKING OFFICE ISLAMABAD:

PIA Building,

49 blue area, Islamabad

Phone 920991

Fax 9202307

Manager: Nasir Mailk

Assistant Manager: Miss Farhat sandhani.

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BCG Matrix

BCG is a strategy tool that guides resource allocation decision on the basis of market share

and growth rate. BCG divides organisations into four different categories. These are as

flows:

Cash Cows: which have high market share but low opportunity for growth.

Stars: which have high market share and high opportunity for growth.

Question marks: which have high opportunity for growth and low market share.

DOGS: which have low market share and low opportunity for growth.

On the basis of these assumptions, PIA have been classified as a Cash cows because it has a

high market share and low business growth.

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SWOT ANALYSIS

Strenghts:

High quality services

People oriented organisation (no language problem)

Govt. sponsored organisation

Perfect timings

Abroad Pakistanis prefer PIA (patriotism)

Healthy interval environment

Weaknesses:

Less international traffic.

Weak rewards and apprasials.

Less marketing efforts.

High fares

Over employment

Lack of professionalism

Low salaries to staff

Opportunities:

Better skilled persons are available within the country.

Large market shares inside the country and outside the country as well

Courier services can be expanded more at domestic level and international level.

PIA has the opportunity to provide carriers at lowest cost

Better training programs

Have opportunity to grow & expand throughout the country.

Threats:

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Fluctuation in fuel prices one of the big threats for PIA. Because sudden increase in

price will affect the fares of it.

Frequent change in the government is also a threat for PIA.

Busy flight schedules are also threats for it, specially the time of Haj.

High amount of loans taken by the company is also a big threat for PIA.

PROBLEMS

Main problems of PIA in management are as under:

Political interference:

In PIA major problem is that there is a high political interference in the appointment

and selection of employees. Executives are the people who can improve or fail any business.

These executives select their favour it person for new vacancies weather they have technical

knowledge about job or not. So this effects the overall efficiency and business of

organisation.

Over Staffing:

After scanning the organisation environment it is revealed that over staffing is a

major problem being faced by PIA. Where only one person is required, a number of

employees have been employed to perform the same task. This has an adverse affect upon

budget and results in the raise of expenses.

Poor Controlling system:

As there is political influence over the organisation that directly affects the control

system of PIA. Most of the hiring is done by political influence that’s why unskilled people

are hired which are unable to control the performance of organisation.

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Ethical Issues:

Due to poor control system certain unethical issues have been seen is the

organisation like favouritism, corruption, bribery and redtpism arise. Property of PIA is used

for personal use by the employees. Promotion is awarded on the basis of favouritism so in

this way they are discouraging the skilled and hard working employees. The upper

management is directly involved in corruption and lower level management is involved in

bribery which has defamed PIA.

Lack of Maintenance:

There is no proper check and balance system for fleet that’s why maximum of the

fleet go obsolete and at one stage it goes under ground.

Cancellation and long delay of flights:

Due to shortage of fleet to PIA, the ratio of cancellation and long delay of flights is

very high due to which passengers have to wait for long time. There is no proper waiting

area for passengers which directly disgrace and hurts the customer loyalty.

Mishandling of Luggage:

Luggage of passengers is misplaced due to poor management. Customers suffer from

the exchange or even sometimes loss of their luggage.

Financial Crisis:

As PIA is a government organisation, and our government is facing financial crisis due

to which availability of funds to PIA is not sufficient. we know that finance is a back bone of

any organisation. As PIA is facing financial crisis and it is running out of budget that’s why

PIA cannot show its performance in a better way.

Low Salaries and Rewards:

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As PIA is getting out of budget, employees are not provided with proper salaries and

rewards on their work; which results in the strikes of Pilots and staff members. It is directly

affecting the organisation performance.

RECOMMENDATIONS:

PIA must be free of political interference. Politicians should not interfere in the

performance of PIA so that it could perform independently. Such policies should be

adopted that political interference could be avoided.

It should be ensured that only required number of staff should be hired, in order to

avoid over staffing.

Proper managerial control should be applied so as to remove briber, corruption and

other unethical issues.

Management should train its front line employees who are in direct contact with

customers. Employees should be trained ethically at all managerial levels. So that

they can treat their customers in a better way.

Selective hiring should be made, ethical highly qualified staff should be posted at

place where one deserves to be.

Fleet is obsolete and poorly maintained so management should ensure repair and

maintenance of fleet after a certain period of time.

Cancellation and long delay of flights is one of the biggest problems being faced by

the customers so management should not only make an effective flight schedule but

also take necessary steps to ensure that schedule is being implemented in a right

way.

There is also a great mishandling of luggage of customers a policy should be made by

management to ensure that customer luggage should not get exchange and he/she

should have to wait to receive his/her luggage.

Government should increase the budget allocated to PIA so that they can efficiently

manage their tasks and improve their output.

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Conclusion:

It is concluded that PIA is one of the best government organisation in our country. It

is the only international airline corporation in Pakistan. It is found that PIA is in big crisis due

to political interference, poor management, corruption and financial problems. Government

is not paying due attention on PIA crisis. PIA has a centralized system of management; all

the decisions are made at top level of management without involving employees at lower

level, which cause difficulties in employees work.

Delegation of authorities and decision making is very less in PIA. Managers in branch

offices in PIA cannot take any decision on its own without consulting head office.

NO doubt PIA is still a strong international airline organisation of Pakistan but due to some

economic problems and other issues PIA is facing crisis. But we hope that in soon PIA will

recover and will be the best international airline.

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Appendix

QUESTIONNAIRES

Intro questions:

1. Briefly describe your current position and responsibilities?

2. What do think, a manager job is to place the order only?

3. What are the major stresses and challenges you face on the job?

4. In case of any problem to the organization, how do you overcome the problem?

5. What are the differences between middle level managers and top level manager?

6. What are the skills which are required to be an effective manager? What are they? And

how did you acquire them?

7. What have been your biggest mistakes so far?

8. Before taking any decision what do you do? Do you take your subordinates in account?

9. According to your personal experiences, what skills and abilities a manager must have?

Planning:

10. What is your organization‘s vision & mission?

11. How does your organization set goals?

12. For effective goals how would your organization use S.M.A.R.T guideline?

13. Which type of goals “short term goals/ long term goals” does your organization set? And

why?

14. Does your organization gather performance feedback?

15. Which type of plan does your organization adopt? (Option base or learning base)And

why?

(Option base plan gives you choices, alternative plans / learning base plans are

continuously tested, learning from past and change plan)

16. Why your organization adopted option-base /learning-base planning?

17. What are the time lines for strategic, tactical & operational plans of your Organization?

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(Strategic=starts with setting goals)(Tactical= short time plan. How to use resources)

(operational=day to day plans)

18. Describe strategic planning & management process within you Organization?

19. Out of 4 ways, in which way, your organization can set missions?

(Targeting, competitors, role model, internal transformation)

20. How your organization uses resources, budget & human force to accomplish specific

goals?

21. What kind of difficulties your organization faces while accomplishing special goals?

22. Which kind of management techniques your organization use to develop

& carry out tactical plans?

23. Describe the planning process you use (weekly, monthly &quarterly)?

Ethics:

27. How do you make ethical decisions and what is the influence of ethical decision making

upon your department?

28. Do you regard ethics an important factor in the process of hiring employees?

28. Do you held any integrity tests to check how ethical the candidate is?

28. What is your organization’s ethical code of conduct?

29. What is the most important influence on your organization's ethical behavior at work?

30. Is your top management active in and committed to the company's ethics program?

31. Has it ever happened you made a decision purely on ethical basis and later on paid for that?

32. What do you think who is more responsible and have greater influence for creating a

positive organization culture through language and action?

33. What do you think does your organization have some burden of social responsibility also? if

so then how much?

34. Do you think your organization is meeting with expectations of society fully by fulfilling

your ethical and social responsibility if not then what are the hurdles or problems not to do so?

35. How would you rank your organization how much social responsive your organization is? is

it reactive, defensive, accommodative or proactive?

36 .Has your organization any criteria to deal with employees engaged in unethical behavior?

Do you punish them or expel them from job?

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39. How will you respond to a situation where you have to make decision against business

ethics? What will be your choice, Ethics or profit of your organization?

40. What decisions have you made in your career that you look back and feel you did

wrong? What you learned from that? 

Environment:

41. How much PIA is affected from its specific environment in past 5 yrs.?

(The Customers, Competitors, Suppliers, Industry regulations and Advocacy groups

that are unique to an industry and that directly affect how a company does business.)

42. Any political influence on PIA in last 5 yrs, which placed negative impact on working of

PIA?

43. What are the Technical innovations in PIA in last 10 yrs.?

44. Have you ever regarded any of your competitors as role model?

45. Have your organisation ever faced resource scarcity? If so then how your organisation

handled the situation?

46. Under ever changing international political environment, how you handled such

circumstances?

47. What steps your organisation takes in order to maintain strong customer relationships?

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