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Transcript of Pia Project
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INTRODUCTION
The project aims to analyze the organizational behaviour of. Pakistan International
Airlines .It is the public-sector organization.
A study of the organization comparing and contrasting on various parameters of
Organizational Behaviour has been carried out in the report. This has been done to
analyze the impact of individuals, groups and structures on behaviour within the
organization for the purpose of enhancing the effectiveness of the organization.
Thus, the report evaluates the organizational culture, leadership styles, employee
behaviour, development and motivation, group behaviour. After a thorough analysis,
recommendations have been proposed to improve the efficacy of the organization.
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BOARD OF DIRECTORS
Ch. Ahmed MukhtarMinister for Defence and Chairman - PIA
Syed Naseer Ahmed
Malik Nazir Ahmed
Mr. Javed Akhtar
Lt. Gen (Retd) Syed Athar AliFederal Secretary Defence
Capt. Mohammad Aijaz HaroonManaging Director – PIA
Prof. Mian Ijaz ul Hassan
Mr Mubashir Iftikhar
Mr Husain Lawai
Mr Shaukat Ali Rana
Mr Salman SiddiqueFederal Secretary Finance
Mr Muhammad ShuaibSecretary-PIA
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MANAGEMENT
Managing DirectorCaptain Mohammad Aijaz Haroon
Chief Financial OfficerMr. Arif Majeed
Director - Corporate PlanningMr. Shahnawaz Rehman
Director - Engineering and MaintenanceMr. Maqsood Ahmed
Director - Finance Muhammad Ziyad A Syed
Director - Flight OperationsCapt. Shuja Naqvi
Director - Information TechnologyMr. Shahid Sarwar
Director - Human Resource & AdministrationMr. Hanif Pathan
Director - Marketing Mr. Salah uddin
Director - Precision Engineering ComplexAVM Muhammad Kamal Alam Siddiqui
Director - Procurement, Logistics and Food ServicesMr. Imran Ahmed Khan
Director - Training and DevelopmentMr. Dilawar Farid Baig
DirectorMr. S. Kamran Hasan
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HISTORICAL PROFILE
PAKISTAN INTERNATIONAL AIRLINES
Pakistan International Airlines (PIA) is a national airline, operating passenger and cargo
services covering eighty-two domestic and foreign destinations. Established in 1955, PIA
has a vast experience in the airline industry of Pakistan with a large fleet of aircrafts. The
fleet size is forty.
PIA is a huge corporation with more than 17,000 employees. This organization is divided
into following departments: Human Resource and Administration, Marketing, Corporate
Planning, Information Services, Finance, Flight Services, Flight Operation, Engineering,
Procurement and Logistics, Customer Services, Training and Development, Quality
Assurance.
The organogram of the organization follows, with the Chairman at the top and directors
of departments reporting to him. The structure is centralized with the top-level
management making the decisions.
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THE DEPARTMENTS INCLUDE:
Human Resource and Administration
Marketing
Corporate Planning,
Information Services,
Finance
Flight Services
Flight Operation
Engineering
Procurement and Logistics
Customer Services
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CULTURE
The distinguished culture is determined by the vision and values communicated
throughout the structure and amongst people. Since Pakistan International Airlines is a
bureaucratic organization, so the culture is similar to that of any government
organization.
Vision of PIA
‘To be a world class airline exceeding customer expectations through dedicated
employees committed to excellence.’
Corporate Mission
As a Symbol of National Pride, We aspire to be a Choice Airline, Operating Profitable
on Modern Commercial concepts and Capable of Competing With the Best in the
International as well as Domestic markets.
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SEVEN CHARACTERISTICS OF ORGANIZATIONAL CULTURE
CHARACTERISTICS PIAINNOVATION AND RISK TAKING Low
ATTENTION TO DETAIL Low
OUTCOME ORIENTATION High
PEOPLE ORIENTATION Low
TEAM ORIENTATION High
AGGRESSIVENESS Low
STABILITY High
The results show that PIA focuses more on the goal rather than means to achieve it the
characteristics and values form the organizational structure which determines the
behaviour of employees and the effectiveness of the organization.
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Values of PIA
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Revenue composition
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MAJOR COMPITITORS
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SWOT Analysis-Internal Factor
Strengths Leading Market Position Brand Recognition Superior Operating Structure Network Presence Hub airport at Karachi
Weakness
Formulation of Govt. Rules High dependence on Passenger Revenues Debt Reliance on Oil Prices
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SWOT Analysis-external factor
Opportunities
Having the maximum route and FleetGrowing demand for low cost AirlinesCustomer loyaltyShifting customer needs Industry Recovery
Threats
High Interest RatesAccidentsStrong Competition by Air-blue Interest and foreign currency exchange ratesDecline in airline industry
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PIA TRAINING CENTER
A PIA Training Center (PTC), operating in Karachi, conducts training courses to
augment the skills of employees while the scope for enhancing their attitudes (beliefs and
emotions) through these courses is meager
They have one of the most advanced Airline training infrastructures approved by local
and international regulatory authorities such as CAA, ICAO and IATA.
Functions:
To develop and conduct quality training as per the requirements of user departments and regulatory authorities
To maintain centralized training database of all PIA personnel for organizing HR activity
To maintain regular contact with vendors regarding new functionalities, modifications and additions to update training programmes and train the instructors.
To formulate criteria which will enable the training of PIA personnel to achieve excellence in their respective fields/functions
To conduct courses, workshops, seminars, workouts, conventions, and to present papers so as to make PTC prominent in aviation training, particularly in this region
Training has been offered for PIA employees as well as for other airlines' staff intending
to work, or already working as members of the cockpit and flight service crew, as
passenger service and marketing staff, and as mechanics and engineers, etc. It was in
1960 that all training was amalgamated under one roof at the Hotel Midway House,
Karachi. The Centre was moved to its present premises in October 1975.
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Details:
Specialist instructors are assigned at the Centre for imparting rigorous training to those
who fly, and to those who service and maintain various types of aircraft (B-747-200, A-
310, A-300, B-737, F-27, Twin Otter, B-777). The training aids and equipment used are
the latest. The methods of knowledge and skill transfer, adopted at the PIA Training
Centre, are varied all pragmatic and useful. Classroom lectures are augmented by group
discussion, observations, experiments, simulations, case studies, etc. Study tours to a
number of PIA facilities are regularly conducted and seminars on topics of general
interest are frequently convened
During the past, for many years the PIA Training Centre has also been instrumental in
Rendering training to a large number of pilots, engineers, flight stewards/stewardesses,
Traffic and sales personnel from over 30 airlines and associated agencies worldwide,
mostly from Asian and African countries.
We offer the highest standard of aviation training at very economical terms and even the
stay in Karachi is in-expensive.
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Training includes:
Customer Service Flight Service
Marketing
Marketing Cargo
Passenger Service
Engineering & Maintenance Apprentice
Aerospace
Avionics
Flight Operations
Information Technology (CBT)
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Courses for Management Level Training
HR ManagementTime Management
HR Productivity Management
Stress Management
Change Management
Crisis Management
Risk Management
Conflict Management
Mind Mapping
Problem Solving
Decision Making
Team Building
Negotiating Skills
Effective Delegating Skills
HR Budget
Industrial Engineering
Quality Management System
Organization Development
Safety Management System
Policies & Procedures
Airline Security
Cost Control
Six Sigma
Record Keeping & Office Management
Office Management
Emotional Intelligence
Skills in Supervision
Performance Appraisals
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Employee Attitudes:
At PIA, every employee is expected to show complete responsibility through their
attitudes and avoid behavior which clashes directly with the organization’s interest. In
case of deviant workplace behaviour, administrative action is taken against the employee
according to the standing rules of PIA.
All human resource issues are dealt in accordance with the POLICIES AND
PROCEDURES MANUAL VOL. I & II, which deals with every aspect of employee
behavior.
Employee Dissatisfaction:
If PIA believes that dissatisfaction or absenteeism is affecting the productivity level of
employees, then the root cause of such factors is identified. If a genuine reason emerges,
the employee is assisted in rectifying the situation; if not, then the employee might get a
letter of warning.
Employees at PIA can express dissatisfaction through the ‘Suggestion Boxes’ located at
various sites of PIA. Furthermore, quarterly employee co-ordination meetings are held
where all employees can share their views with their bosses and subordinates.
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Recruitment and Hiring:
An entire Recruitment and Selection Division is functioning in the HR & Administration
Department. Decisions are taken by the top management of PIA regarding the attributes
required for hiring. An assessment form, based on certain characteristics such as
personality, skills and qualifications, is used to evaluate a candidate. The verdict of the
management is forwarded to the recruitment division which then initiates the procedure
of recruitment and selection.
After difficult circumstances the Human Resource Department is now fully functional
and policies and procedures are now in place. New recruitments with clearly defined
levels of skill and competence in all areas are being made. New inductions both on the
management side and specifically the operational side of cockpit crew, cabin crew and
ground engineers will continue at regular intervals so that the shortages experienced in
these areas are fully taken care. The policy is to promote people from within the airline at
all levels. However, where PIA does not find the relevant competencies they hire people
from outside which is based on market salaries. Salaries of all the employees including
operational crew have been considerably enhanced in an effort to align PIA salaries with
regional airlines over a period of time.
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Employee Promotion
During promotions experience, skill, education and past performance of the employee are
considered, however, experience takes precedence over all other deciding factors. PIA
believes that experienced employees have the knowledge and expertise, gained over
years, to handle diverse employees and unprecedented situations.
Communication
The organizational structure of PIA is centralized, therefore decision-making is a time-
consuming process and delays occur in downward communication. Though, it is believed
that the current Chairman is inclined towards a decentralized system, the effectiveness of
such an approach in PIA remains to be seen.
Effective communication is essential in all organizations and it becomes even more
essential in an organization like PIA due to its large size and expanded network. It is
necessary that people from various departments communicate between each other to have
an overall uniformity. Previously fax was widely used to transmit information, however,
with the technological advancement e-mails are used for this purpose. Another mode of
communication is through letters.
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Feedback:
Employee feedback is considered important in PIA to an extent as it enables the
management and the human resource department to have an insight on the needs and the
requirements of the employees. Accordingly top management is informed about
employees’ necessities which have led to decisions being made in the favor of the
employees in the past and has also improved overall system of the organization.
Apart from this, any striking idea from employees, if it actually suits the organization
interest is soon adopted and the employee is given due credit for that in either monetary
terms or promotion. This shows the high employee involvement in the organization
culture.
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Job Rotation:
At PIA, employees are not rotated amongst various departments unless they request for a
rotation.
Monetary Rewards:
Amid a highly competitive environment, PIA needs to motivate its employees. For this
purpose, ‘Promotion Boards’ are held twice a year. ‘Extra-mile Awards’ are handed over
to the competent employees. An ‘Employee Suggestion Scheme’ gives employees an
opportunity to be vociferous regarding their issues. The three best suggestions are given
monetary awards ranging from Rs.5000 to Rs. 20,000.
Apart from the basic salary, fringe benefits are in the form of Medical Entitlement,
Free/Rebated Air Tickets, Utility Allowance, Rent Allowance and Meals at discounted
rates.
Employee Satisfaction:
Employee satisfaction is essential for the retention of competent employees at PIA. The
management strives to achieve this by promoting employees in next pay groups (move-
over), giving monetary rewards (bonuses) and transferring employees to foreign posts.
.
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Sharing information
Efforts are made by PIA’s management to ensure that employees are exposed to
Information in a manner which minimizes uncertainty amongst them so that they are not
disillusioned. However, information through grapevine disturbs this process at times.
TEAMWORK
In an airline industry almost all tasks are performed through team work and PIA is not
any different. From ticket reservation to the landing of the plane team work is the
decisive factor. Employees work in various teams such as ground staff, cabin crew, flight
attendants, office staff etc. All these teams have different sets of tasks to perform but
cohesion among these teams is necessary to run the day to day operations. Considering
the diverse nature of employees PIA has, it is difficult to make team work efficient so it is
major challenge for them.
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FORMAL GROUPS
At present, all unions have been banned in all public/semi-government organizations
under the policy of the government. Disagreement among employees is resolved through
applications and appeals. Some cases may be dealt by the ELT (Employee Leadership
Team), headed by the Chairman.
Influence of groups in decision making
The sheer size of the organization leads to the formulation of various formal and informal
groups at PIA. The informal groups influence the overall decision making process to
some extent due to the nature of the workplace. These informal groups are formed
because many employees have been there in the organization for several years and they
share common interests..
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CONCLUSION
Organizational Behavior forms an integral part of any organization for prosperity. Greater
emphasis needs to be laid on controlling and monitoring of organizational behavior
because in the present dynamic environment employees are the key to success in any
organization.
This is mainly due to the varying structures and leadership styles. As mentioned on
various accounts, PIA has a centralized structure. This has caused higher conflicts and
poor management of employees as decisions are made by the top level management
without involving the employees. In addition, this leads to complexities in employee
tasks as it takes more time to reach the information from top to bottom. Due to this
bureaucratic nature of PIA, inefficiencies have crept in and morale of the employees has
plummeted over the years.
Delegation of tasks is minimal at PIA. The current status of employees is less control and
authority over different tasks apart from their own assigned tasks, so employees feel
distant as far as other issues and problems of the departments are concerned.
However, PIA emphasizes on experience. Therefore, the organization has young and
active employees who may lack in experience but not competence. This has increased
productivity of the employees and consequently of the organization.
Both prefer communication through electronic mails. This enables two-way
communication in contrast to the to-down communication at PIA.
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The meetings and suggestion boxes at PIA are ineffective; employees feel reluctant to
voice their concerns in a meeting amid others and complaints in the suggestion boxes
take time to reach bosses and therefore, action is postponed.
It has been observed that Pakistan International Airlines fears change. They fear that the
system will become unstable, their security will be lost, and they will not understand the
new process, therefore, will not know how to respond to the new situations. PIA turned
its attention on employees when it faced competition. Otherwise, it was concentrating
more on expansion and profitability: an outcome oriented approach.
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RECOMMENDATIONS
PAKISTAN INTERNATIONAL AIRLINES
DECENTRALIZATION
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.
EMPLOYEE EMPOWERMENT
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. Apart from this, employees
would feel more independent to discuss the issues explicitly without hesitation.
This would also enhance team work process at PIA as quality team and cross-
functional teams. The employees will work with more commitment and
dedication and every employee would work to his/her fullest due to increased
motivation. However, with empowerment comes accountability, so it is suggested
that while they empower their employees, there should also be a “controlled
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Check’’ on them to ensue the correct usage of power delegated to every
employees within their circumscribed limits.
OVERHEAD COSTS
PIA should also reduce its overhead costs that are it should mange its resources:
labour more effectively, so that with less input, more out put can be achieved and
the saved resources can be utilized in other areas such as introducing more
training courses for the employees so that the quality of the workforce could be
increased. Hiring the services of expertise can improve the efficiency of their
services, so by saving the overhead costs, they can utilize that money for the
expertise services. So by analyzing the various segments of the organization and
making the right corrections, it can substantially improve the standards of
Organizational behaviour.
TWO-WAY COMMUNICATION
The suggestions of the employees can prove to be very effective in improving the
operations as they are the ones who manage them. Therefore, a top-down
approach should be replaced with two-way communications. In this way, the
employees would feel motivated and valued as they would be included in
decision-making.
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