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ORGANIZATIONAL BEHAVIOUR OF PIA AND AIRBLUE

INTRODUCTION

The project aims to analyze the organizational behaviour of two organizations belonging

to the same nature of industry; one from the public sector while the other from the private

sector of Pakistan. Pakistan International Airlines is selected as the public-sector

organization whereas Airblue as the private-sector organization.

A comparative study of the two organizations 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 two organizations on their organizational culture,

leadership styles, employee behaviour, development and motivation, group behaviour and

organizational politics. After a thorough analysis, recommendations have been proposed

to improve the efficacy of the organization.

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ORGANIZATIONAL BEHAVIOUR OF PIA AND AIRBLUE

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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ORGANIZATIONAL BEHAVIOUR OF PIA AND AIRBLUE

FIGURE 1: ORGANIZATIONAL STRUCTURE OF PIA

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ORGANIZATIONAL BEHAVIOUR OF PIA AND AIRBLUE

AIRBLUE

Established in 2003, Airblue is a private airline which offers passenger and cargo

transportation to both domestic and foreign destinations. There are nine destinations of

Airblue. It is credited as the first private carrier of Pakistan to operate the Airbus A320

and introduce e-ticketing, wireless check-in and self check-in kiosk facilities. The major

departments include: Human Resource, Marketing, Sales, Finance, Operations and

Systems Support and IT.

The size of the organization is not as huge as PIA and mostly comprises of young

employees. It is the first airline to have employees trained according to international

standards. It is technologically advanced though the size of the fleet is not comparable to

that of PIA. The fleet size of Airblue is eight.

The organogram of the organization follows. It shows that the employees report to their

divisional heads that in turn are answerable to the Chief Executive Officer.

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ORGANIZATIONAL BEHAVIOUR OF PIA AND AIRBLUE

FIGURE 2: ORGANIZATIONAL STRUCTURE OF AIRBLUE

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ORGANIZATIONAL BEHAVIOUR OF PIA AND AIRBLUE

1.1. 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.

On the contrary, Airblue is a privately held company and has an open-organization

culture. The culture determines the type of leadership, communication and group

dynamics within the organization. The workers perceive this as the quality of work life

which directs their degree of motivation. The final outcome is performance, individual

satisfaction, and personal growth and development.

1.2. VISION OF PIA

‘To be a world class airline exceeding customer expectations through dedicated

employees committed to excellence.’

1.3. VISION OF AIRBLUE

‘To provide exceptional customer service at low prices.’

FIGURE 3: SEVEN CHARACTERISTICS OF ORGANIZATIONAL CULTURE

CHARACTERISTICS PIA AIRBLUE


INNOVATION AND RISK TAKING Low High
ATTENTION TO DETAIL Low High
OUTCOME ORIENTATION High Low
PEOPLE ORIENTATION Low High
TEAM ORIENTATION High High
AGGRESSIVENESS Low Low
STABILITY High Low

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The results show that PIA focuses more on the goal rather than means to achieve it while

Airblue does the opposite. Therefore, employees are highly valued in Airblue. The

characteristics and values form the organizational structure which determines the

behaviour of employees and the effectiveness of the organization.

1.4. VALUES

FIGURE 4: VALUES OF PIA

FIGURE 5: VALUES OF AIRBLUE

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2.1. EFFECT OF LEADERSHIP ON DECISION-MAKING

A public organization, PIA, has an autocratic style of leadership. The decisions are made

by the top level management without involving their employees. These decisions are

primarily policy-based decisions like the purchase of new planes, replacement of new

fleets and changes in the fares of tickets. On the other hand, Airblue involves employees

in the decision making process, however, the right to make the final decision rests with

the authorities. The top management reserves the right to take decisions regarding

discount offering, chartering of flight, or investment in any particular sector. Therefore,

Airblue follows a participative style of leadership.

FIGURE 6: LEADERSHIP STYLES

AIRBLUE
Leaders
PIA Leaders

AIRBLUE
Employees

PIA Employees

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ORGANIZATIONAL BEHAVIOUR OF PIA AND AIRBLUE

2.2. DELEGATION OF TASKS

Delegation of authority is limited due to the centralized structure of PIA. The authorities

reserve the right to make decisions in interim board meetings.

Airblue has a decentralized structure: it believes in delegating power to its employees.

Decentralized structure helps in motivating employees through involving them in the

decision making process.

The scope of delegation of power in Airblue depends upon situation; the more critical the

situation the more top level management is involved and vise versa. This is because at the

end of the day, decision making affects the processes. Thus, decisions are made by right

people-the competent and experienced employees.

To ensure job involvement of their employees, Airblue believes in empowering them

according to their designations. Apart from that, there are some restrictions like every

employee cannot visit the passenger check –in data. Only the authorized employees, who

use ‘ED NET’ (intranet, protected by strong firewall) have the access to such information.

This leads to differentiating one employee from the other in terms of delegation.

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3.1. EMPLOYEE ATTITUDES

At PIA, every employee is expected to show complete responsibility through their

attitudes and avoid behaviour 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.

At Airblue, if a conflict arises between the individual’s work behavior and the

organizationally desired behavior, there exists a formal ‘Resolution Process’ in which an

inquiry committee takes a thorough review of the problem. The employee is called

personally and the matter is discussed along with a verbal warning. If the situation arises

again, the employee is given a written warning to strongly clarify his inappropriate

performance. The third time a letter of termination is handed over to that person. This

signifies that Airblue is very particular in maintaining high standards of quality, negligent

behavior is never overlooked.

3.2. TRAINING TO ENHANCE ATTITUDES

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.

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Airblue does not conduct any formal training programs regarding the development of

employee attitudes: beliefs and emotions. Instead, General workshops such as

‘Significance of Adaptable Attitudes in Organizations’ and ‘Enhance Performance

through Attitudes’ are being conducted. Further, employees are given instructions

regarding the attitude norms set by the organization.

3.3. 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.

If Airblue perceives factors such as dissatisfaction or absenteeism are leading to the

decline in productivity then following measures can be taken:

• Shifts among the employees can be rotated. There are 2-3 shifts in day so they can

take turns doing the shifts from morning to evening as convenient.

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• In case of frequent absenteeism, AirBlue investigates the reason. If the reason is

valid, the company voluntarily grants the employee a leave, for instance, if an

employee is getting married or a member of his/her family is critically ill.

However, under normal circumstances, absenteeism is unacceptable apart from

the stated holidays.

In the employee wishes to raise his voice against dissatisfaction, there is a proper channel

to report the issue at Airblue. Initially, the employee can report to the supervisor. If the

problem still persists, then the matter can be taken to the assistant manager, who in

accordance with the marketing or other senior manager takes into consideration the cause

of employee dissatisfaction.

3.4. CODE OF CONDUCT

If the code of conduct is violated in PIA, a ‘Show Cause Letter’ is issued while in severe

cases the employee is suspended until a proper investigation takes place.

Airblue strictly emphasis on the code of conduct for its employees as it aims to maintain

the behavioral ethics set by the organization. In case of a conflict over the code of

conduct, then formal discussion between the employee and the upper management takes

place to resolve the issue. Largely, the organization believes in maintaining a flexible

culture for the employees.

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4.1. 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.

The hiring process is centralized as it is done by the top level HR team by Airblue.

Airblue incorporates various initiatives for the employee development program as it leads

to increased productivity of the organization. The organization evaluates several

personality attributes at the time of recruitment. These include the following:

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• Language Skills: Airblue prefers people with fluent spoken English and coherent

speech delivery, particularly for employees as operators and at helpline centers to

provide fast and efficient services.

• Level of Knowledge: Evaluations are based on the academic backgrounds and

past educational performances, especially the extent of mastery in their required

field.

• Confidence Level of the Employee: The extent to which he/she can bear

pressure such as workload and unexpected situational handling is gauged. Further,

the degree of being an extrovert is judged.

• Level of Adaptability: As Airblue requires the ‘best fit’ person for their

organization, the level of adaptability is essential to adjust in the culture.

4.2. 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.

Regarding preference of experience over the skill or vice versa for the promotions,

Airblue prefers skills as compared to experience. This suggests that the organization has a

dynamic culture that respects talent and caliber over the constraint to attain a certain

experience. The top management evaluates employee performance continuously and

acutely, and rewards the deserving ones through promotions.

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4.3. 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.

The preferred means of communication at Airblue among different departments is via e-

mail, through internet, since it saves time. In addition to this, there is quite frequent

intermingling of people across different department. Cross functional teams often meet

together to discuss issues at hand.

4.4. 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

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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.

Airblue strongly focuses on employee feedback to enhance the productivity of the

organization. This is conducted in two patterns:

• Informal feedback is conducted throughout the year. Employees can easy access

their higher officials for any kind of issues, suggestions or complaints. Every

feedback is regarded carefully and sent to the higher management if it serious in

nature.

• Formal feedback is conducted once in a year. This involves a formal documentation

processes. Every employee gives their open feedback and these complete documents

are forwarded to the top management where a formal meeting is conducted to discuss

every issue governing employee satisfaction, suggestion or complaint.

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.

4.5 JOB ROTATION

At PIA, employees are not rotated amongst various departments unless they request for a

rotation.

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In order to make the employees familiar with multi-dimensional tasks, employees are

rotated within the department at Airblue: employees in finance exchange tasks relating to

finance; employees for operations are rotated so they learn various kinds of operations

instead of one. However, there is no rotation between departments.

4.6. EMPLOYEE SECURITY

According to the “Business Principles & Ethics Policy”, employees at PIA are required to

maintain an environment, devoid of harassment, in which all members are equally

respected and encouraged to contribute to the best of their abilities in an atmosphere of

freedom and mutual trust. Employees are encouraged to voice their troubles and

apprehensions so that dissatisfaction levels are curbed.

Airblue believes in maintaining a secure culture within the organization to rule out any

verbal abuse, sexual harassment or any other irregularity. The company maintains a set of

HR policies that clearly defines the issues, procedural solutions and the penalties the

violator has to bear. Especially for those departments where there is more female staff, a

supervisor is kept to check for any irregularity on every shift to ensure a safe working

environment.

4.7. EXIT INTERVIEWS

At PIA, exit interviews depend on the immediate supervisors and Departmental Heads.

Some of them are keen on the idea, others are not: there is no clear policy for exit

interviews.

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During downsizing employees are offered different packages such as a ‘Golden Hand

Shake’ in which employees are paid a lump sum amount for their services. This is done to

maintain a healthy relationship between the management and the employees and also to

make employees feel that they are being taken care of in the organization.

Airblue always carries out exit interviews if employees voluntarily want to leave the

organization. In exit interviews, a thorough review is conducted to find the causes of

dissatisfaction, differences in organizational culture, adaptability dilemma and salary

issues. A separate record is maintained for all such employees and then based on that, the

employees are provided with additional tools for continuous motivation and enhanced

satisfaction.

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5.1. 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.

In contrast to this, Airblue incorporates a vibrant culture of motivating its employees

through different tools to ensure continuous satisfaction, growth and energizing behavior.

The core elements used to motivate employees are yearly and quarterly monetary

appraisals based on their outstanding performance.

5.2. 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.

Airblue emphasizes on employee satisfaction because it believes that employees are the

essence of the organization. Satisfied employees produce better performances which

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enhance customers’ perception about the organization. The Vision Statement of Airblue

cannot be achieved unless the employees and customers are satisfied.

Airblue gives special consideration to its highly competent employees. For continuous

motivation that keeps the driving force within these people alive, Airblue uses several

channels that include:

• Long-term additional benefits: educational loans for the children, medical and free

air-traveling facilities through Airblue, greater insurance benefits and several other

perks and privileges.

• Continuous rise in salaries and bonuses when employees exceed pre-set targets.

However, continuous review is also kept on the performances so that any decline in

performance can be monitored and rectified. Notice is then immediately sent to the

concerned competent person for his notification.

• Promotions that include job enrichment program are included in the motivation plan,

so that the competent employees could be given more challenging jobs in order to

sharpen their decision making and intellectual skills.

• Airblue is expanding its operations as it has recently started its flight service to

Manchester on June 1, 2007 and would soon be launching its operation to USA. They

motivate employees through short training courses abroad where they are paid extra

bonuses US Dollars along with regular salary. The expansion process enables quick

and better job promotions to these foreign flights, though the criterion is strict and it is

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mandatory to complete certain number of flight hours before employees are taken to

foreign flights.

Airblue conducts various program and meetings to signify the achievements made by its

employees that depend on particular region, District or Sales Office. The ceremony for

this purpose is held every third month and titles such as ‘Employee of the Quarter’ or

‘Employee of the Year’ are awarded. They have the ‘Travel Counselor of the Quarter’

whose job is to handle the traveling and various flight processes the customer

convenience. According to the Area Manager: “We consistently challenge our employees

(to remain competitive) by maintaining a healthy competition between them. For example

we divide our aircraft maintenance staff into teams and challenge them to turnaround the

aircraft within 35 minutes. If they finish the task before time (say 32 minutes), their team

gets 5 points. These points are added at fixed intervals and are used to recognize and

reward teams with excellent performance.”

5.3. FLEXIBILITY IN REWARDS

There is no flexibility in the company’s benefits and administrative

procedures according to the policy of PIA. This can also be due to the

reason that the organization hires contractual employees regularly.

Airblue does not have benefits and administrative policies that are unique for any

particular employee: they are unanimously applicable to all employees. However, there is

some leniency for senior officials; for instance, a person amongst the top management

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who had served for considerably longer period of time will enjoy more health and

insurance benefits as compared to a person of middle level management

5.4. NARRATING SUCCESS STORIES

The success stories at PIA are narrated to employees in order to motivate them and obtain

the finest performances from them.

Airblue believes in narrating past examples, of those who have made an extraordinary

difference in the organization, as an essential tool to motivate employees. This is

achieved through two methods:

• Quarterly Conferences are conducted in their press room where they call some worthy

guest to address the employees to narrate paradigm examples from the past.

• Being highly technology-oriented, they mail the success and development stories of

renowned people to every employee, from the head office, for easy access.

5.5. SHARING OF 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.

In terms of sharing information to its employees about company apprehensions, Airblue

does not disclose complete information to its middle and lower management, only

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information relevant to employees is disclosed. This, however, never acts as a de-

motivating tool for its employees rather it is a part of the organization charter that is set

by the top level management. However, customer feedback is notified to every employee

for acknowledgement and improvement purposes.

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6.1. 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.

Airblue strongly believes that its efficiency and effectiveness is attributed to team work,

so it takes all measure to enhance teamwork performance. The work processes are carried

out by mutual collaboration, and the right distribution of work according to the caliber of

employees. To enhance team spirit among various teams that are meant for specific

project or assignment, the organization motivates them through certificates, shields, and

personal word of appreciation. The continuous interaction with each other and learning as

a one unit helps to increase overall productivity.

6.2. 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.

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Being a service provider, Airblue does not have any labor unions that could go on strike

due to disagreements. If disagreement occurs, the issue is taken to the concerned manager

for mutual discussions to resolve the issue. The organization takes care in providing

convenience to its employee to avoid disagreement situation.

6.3. INFLUENCE OF GROUPS ON 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.

At Airblue, only formal teams have the authority to take part in the decision making

process while informal teams does not take part in such processes. Nevertheless their

good work is always appreciated.

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POWER AND POLITICS

In PIA employees are less empowered which means all the power rests with the top level

management and they can exercise it at their will. Also their power cannot be challenged

by the employees and compliance to the decisions being made by them is essential. We

can also say that in PIA that legitimate power is exercised. This also leads to high

employee dissatisfaction because in order to be influential one needs to have personal

contacts. This is the reason employees focus more on networking rather than

concentrating on their jobs. We were not able to get an insight on the various political

issues in the organization but it is a common observation that illegitimate political

behaviour is a common practice. It is present in the form of nepotism, intentionally

damaging the image of other employees.

In Airblue employees are empowered and have a freedom to express their own opinions

though compliance to the decisions being made is also mandatory there but before the

decisions are being made employees feedback are taken. Contacts do matter but the level

of competency overwhelms it. In Airblue expert power is exercised and employee

feedback is considered essential.

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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.

It has been observed that PIA and Airblue share similarities and differences. This is

mainly due to the varying structures and leadership styles. As mentioned on various

accounts, PIA has a centralized structure in contrast to the decentralized nature of

Airblue. 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.

Both have centralized hiring processes. However, PIA emphasizes on experience whereas

Airblue prefers skills. 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.

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Both prefer communication through electronic mails. However, Airblue has direct

communications in the form of meetings of cross-functional teams. This enables two-way

communication in contrast to the to-down communication at PIA.

Relatively effective channels of expressing dissatisfaction are present at Airblue. 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. On the contrary, Airblue

has maintained a culture focused on their employees from its inception.

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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 check’’ on them

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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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AIRBLUE

• Consistent hiring policies should be administered and should not change from

time to time.

• People should be encouraged to exercise expert power.

• New venture teams should be incorporated to develop new ideas based on the

feedback taken from customers and employees.

• Total quality management should be catered to within the work groups and

implementation of various skill enhancement programs for quality and

productivity improvements such as Six Sigma should be provided to its executive

employees.

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