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4/24/2013 Haseeb Shafqat (2103008) Waqas Shafiq (2103215)

HUMAN RESOURCE MANAGEMENT

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ACKNOWLEDGEMENT

When We start writing, We stop for while and think what to write? How to write? We have no words to express our feelings. But We have to write to offer our humblebeessense to Almighty ALLAH. The most beneficial, gracious and merciful who enable us to perceive higher ideas of life and helped us throughout our life especially in writing this report and all blessing to His Favorite Prophet Muhammad (PBUH) who is the greatest personality of this universe. After God we owe our heartiest gratitude to our parents and our family whose prayers encouraged us to complete our task. We are extremely thankful to our teacher Sir Sikander Aziz for his sympathetic treatment, rewardless help, precious suggestions, constant encouragement and personal interest that enable us to write a report. We are also thankful to Mr. Ashraf(air traffic controller) and Mr. M. Nasir(salaryMaintainer) For co-operating with us.

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

Haseeb Shafqat (2103008) Waqas Shafiq (2103215)


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Sr. No.Title

page no.

1. Title page-----------------------------------------------------------01 2. Acknowledgement------------------------------------------------04 3. Introduction-------------------------------------------------------05 4. Executive Summary of organizations-------------------------06 5. Vision --------------------------------------------------------------07 6. Mission-------------------------------------------------------------07 7. Main Objectives---------------------------------------------------08 8. Goals --------------------------------------------------------------08 9. Organizational Structures--------------------------------------09 10. Board of directors----------------------------------------------11 11. Nature of work--------------------------------------------------13 12. Market size and growth---------------------------------------15 13. Work Environment---------------------------------------------15
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14. Achievements---------------------------------------------------16 15. Public perception-----------------------------------------------19 16. Conclusion------------------------------------------------------21 17. Comparison-----------------------------------------------------23 18. Rate of Debts--------------------------------------------------26 19. References----------------------------------------------------27

We have selected two organizations, one is from government sector i.e, PIA (Pakistan airlines) and other from private sector i.e, Airblue. These both organizations are similar in respect of their area, job, spread, size and strength. Name: Government Sector = PIA (Pakistan airlines) Private Sector = AirBlue Sector: The sector of both organizations is Aviation. Address: PIA (Pakistan Airlines): Jinnah International Airport Karachi 72500, Pakistan

Headquarter

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Address: AirBlue

12th Floor, Islamabad Stock Exchange Towers Headquarters ISE Towers 55-B Jinnah Avenue Islamabad Pakistan 111-247-258

XECUTIVE SUMMARY OF PIA:

In 1955 Pakistan International Airline formed. It is the 16th largest airline in Asia, operating scheduled services to 73 destinations throughout Asia, the Middle East, Europe and North America, as well as an extensive domestic network linking 24 destinations.PIA is three stars International Airline. When Pakistan was founded in 1947 it comprised two territories on either side of the expanse of India. It was in this unusual circumstance that Pakistan International was formed in 1955. Despite wars and economic trouble, the carrier survived to grow and prosper. Pakistan International Airlines is the flag carrier airline of Pakistan, based in Karachi. It is the 16th largest airline in Asia. Its main bases are Jinnah International Airport, Karachi, Allama Iqbal International Airport Lahore.

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xecutive Summary of Airblue:

Airblue is a private Pakistani airline based at Jinnah International Airport Karachi. It started its operations on May 24, 2004. It

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was the first private carrier of Pakistan to operate the Airbus A320 when it initially started. Airblue has been expanding rapidly despite experiencing competition from the other three airline operators in Pakistan. The airline mainly flies on domestic routes plus internationally to Dubai International Airport and also has plans to fly to the Gulf, UK, and USA During the first year the airline became very popular, which allowed the airline to compete directly with the flag carrier Pakistan International Airlines and the two other private carriers, flying more than 400,000 passengers in the first year with a load factor of over 90%. This allowed the airline to expand into more cities in Pakistan including Peshawar, Quetta and Nawabshah. Airblue intends to expand operations with additional aircraft to destinations in Europe, China, and the Middle East aiming to become a major player in Europe.

V M V

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

ission Statement of PIA: Mission: Employee teams will contribute towards making PIA a global airline of choice: Offering quality customer services and innovative products Participating in global alliances Using state-of-the-art technologies Ensuring cost-effective measures in procurement and operations

ision Statement of Airblue: Vision Our vision is to make Airblue the most admired airline in the world:
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Ensuring safety comes first Providing Service Straight From the Hear Encouraging product leadership Delivering superior financial returns

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Providing rewarding career opportunities

ission Statement of Airblue: Mission Airblue will be recognized as the most progressive enterprise in the transportation business. We will offer our customers cost effective transportation service within geographical areas and market segments that can benefit from our services and will insure a return on investment and growth rate consistent with current management guidelines.

Main Objectives Of PIA: According to PIAC Act 1956, following are the main objectives of PIA Corporation. 1. To provide and further develop safe, efficient, adequate, economical and properly coordinated domestic as well as international air transport system. 2. To operate any air-transport service or any flight by aircraft for a commercial or other purpose, and to carry out all forms of aerial work. 3. To acquire, own, run, manage or participate in the running of management of any hotel or business connected there with. 4. To provide for the instruction and training in matters connected with aircraft or flight by aircraft of persons employed or desirous of being employed either by the Corporation or by any other person. 5. With the previous approval of the Federal Government, to promote any organization outside Pakistan for the purpose of engaging in any activity of a kind which the Corporation has power to carry out. 6. To acquire, hold or dispose of nay property, whether movable or immovable or any air transport undertaking. 7. To repair, overhaul, reconstruct assemble or recondition aircraft, vehicles or other machines and parts, accessories and instruments thereof or therefore and also to manufacture such parts, accessories and instruments whether the aircraft, vehicles or other machines are owned by the Corporation or by any other person. Main Objectives of Airblue:
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1. Focus on customer defined quality attributes and endeavor to shape processes and operations to achieve quality objectives without compromising safety and legal requirements; 2. Prevent or minimize all aspects that can lead to unacceptable impacts on environment; 3. Ensure adequate management of occupational health and safety of our employees and others involved in our areas of activity; 4. Abide by all applicable national & international legislation, adopt best industry practices and conform to the requirement of the subscribed standards for self and for outsourced services; 5. Continually improve the effectiveness of Airblues Quality & Management Systems and to regularly review its components for their suitability; 6. Provide for all necessary resources to achieve the defined Quality objectives; to bring all risks to an acceptable level or as low as reasonably practicable. 7. Ensure that all required audits are conducted and reviewed regularly. All employees shall cooperate fully with internal and external auditors to achieve our goal of continuous improvement keeping in view the challenges of changing environments. 8. Ensure active participation of representatives from relevant areas in decision making and shall ensure that good performance is recognized and rewarded.

Organizational Structure
Hierarchy of PIA:
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.
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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.

Corporation (PIAC) has been divided into thirteen departments as shown in organizational chart. PIA is one of the biggest commercial organizations in our country and has worldwide operation, the corporation has network of flights around the globe, to control worldwide operation, there is a department meant for overall management of PIAC. Administration Department consists of seven Divisions and units. Each department is headed by a Director, each division is headed by GM, each section by manager and subsections and units are controlled by assistant managers

Hierarchy of Airblue:

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People (designations, Grades, Qualifications, Strength) PIA

Boards of Directors:
Lt Gen (Retd) Asif Yasin Malik Federal Secretary Defence and Chairman-PIA Malik Nazir Ahmed Mr Javed Akhtar Syed Omar Sharif Bokhari Mr Husain Lawai Makhdum Syed Ahmad Mahmud Mr. Abdul Khaliq Federal Secretary Finance
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Khawaja Jalaluddin Roomi Mr Yousaf Waqar Mr Younus M. Khan Secretary-PIAC

Chairman Lt Gen (Retd) Asif Yasin Malik Managing Director Muhammad Junaid Yunus Deputy Managing Director AVM Qasim Massod Khan Chief Financial Officer Mr. Aftab Ahmad Director - Coordination Lt Col (Retd) Mahmood Ahmed Officiating Director - Marketing Mr. Khurram Mushtaq Director - Customer Services Mr. S. Aijaz Mazhar Director - Corporate Planning Mr. Shahnawaz Rehman Director - Human Resource, Administration & Coordination
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Director - Engineering & Maintenance Mr. S. Saminuddin Naqvi Officiating Director - Procurement & Logistcs Mr. Omar Razzaq Director - Flight Operations Capt. Arshad Khan Director - Precision Engineering Complex AVM Hamid Shahab Hashmi

People (designations, Grades, Qualifications, Strength) Airblue Boards of Directors: Board Members Mr. Tariq Chaudhary, Chairman Mr. Shahid Khaqan Abbasi Mr. Ali Siddiqui Dr. Yasmeen Mehmooda Dr. Uzma Chaudhary Mr. Mohammad Aslam Mr. Junaid I. Khan Senior Management: Mr. Tariq Chaudhary Chief Executive Officer Mr. Shahid Khaqan Abbasi
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Mr. Athar Hassan Ansari Director Engineering Captain Sohail Sarwar

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Chief Operating Officer Mrs. Sadia Mohammad Director Corporate Affairs

Chief Pilot Flight Operations Mr. Shaukat Ibrahim General Manager Corporate Safety

Mr. Khawaja Muhammad Ahad Mr. Armaan Yehia Director Flight Operations Director Airport Operations Control Mr. Ali Muhammad Khan Rana Ms. Liberata D'Souza General Manager Quality General Manager Flight Services Assurance Mr. Raheel Ahmed Director Commercial

ature of work:

Air Transportation is a fast growing industry, highly capital intensive, highly sensitive to business cycles, facing increasingly deregulated environment and hence highly competitive background. The transportation sector holds a very important position in the economy of Pakistan. Currently it contributes almost 10% in the GDP. PIA operates in two major markets; Domestic and international. Pakistan International Airlines has the lions share in the domestic market. Besides this, Pakistan International Airlines has a huge network of flights throughout the country. The number of flights remains the same during on-season and off-season. Internationally also, Pakistan International Airlines is encountered with a severe and s t r o n g challenge with many renowned international names. Pakistan International Airlines faces competition with not only international a i r l i n e s b u t a l s o w i t h l o c a l airlines on the various routes to the Middle East and the Gulf. Pakistan international airlines marketing department has two divisions. It is passengers division and cargo division. Passenger sales division must be held responsible to boost sales by introducing different types of packages. It must also have the responsibility for handling customer queries and complaints.
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Effective campaigning of the special interests tourist packages for Pakistan to increase the travel to Pakistan must be done. Soft and brighter image of Pakistan and PIA is enhanced. Cargo division is responsible for supplying both perishable and non-perishable goods in the global market place.

The major objectives of this division are: To develop Strategic alliances with other carriers so as to increase the capacity on the high yield sectors Annually enhancing the cargo reservation services, terminal services and services at domestic and international stations to be competitive other carriers in the industry Revisions of cargo fares and offerings on annual basis to optimize the full potential of cargo space on all sectors. New Planes, New Directions, New Management:
In 1956, orders were placed for two Super Constellations and five Viscounts which were to be delivered in 1959. At this juncture, PIA possessed a small fleet which comprised of Convairs, Viscounts, Super Constellations and DC-3s. While Mr. M.A. Ispahani was the first Chairman of the new dynamic airline; it was the first Managing Director of PIA, Mr. Zafar-ul-Ahsan, who in his 4 year tenure, got the ball truly rolling and set the shape of things to come. The PIA Head Office building at Karachi Airport, which houses all the major departments of the airline, was the brain-child of Mr. Zafar-ul- Ahsan. In fact, on his departure from the airline, the employees presented him with a silver replica of the building with the caption, "The House You Built". In 1959, the Government of Pakistan appointed Air Commodore Nur Khan as the Managing Director of PIA. With his visionary leadership, PIA 'took off' and within a short span of 6 years, gained the stature and status of one of the world's frontline carriers. In aviation circles, this period has often been referred to as the "golden years of PIA". Training and Education

PIA Training Center:


The PIA Training Center is a leading airline training institution that delivers the highest standards of aviation instruction. The Training Center is built around a highly advanced training infrastructure, approved by local and international regulatory authorities such as CAA, ICAO, and IATA. The PIA Training Center's courses are based on a unique, standards-based curriculum designed to impart knowledge and best practices in all the aspects of the airline industry. The PIA Training Center provides quality training to PIA's pilots, engineers, air hostesses, and to employees of other associated PIA divisions.
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PIA Model Secondary School


The PIA Model Secondary School was set up in 1980 to provide high quality education to the children of PIA's employees at an affordable fee. Situated at a distance from the hubbub of the city, the school is housed in a modern building that spans over 10 acres of land and is staffed by teachers dedicated to empowering children with knowledge and skills for the future. Equal emphasis is placed on curricular and extracurricular activities in order to produce well-rounded, holistic, and responsible citizens.

PIA Industrial Training Institute


The PIA Industrial Training Institute was established in 1986 to provide technical, vocational, and industrial knowledge to the families of PIA's employees. With the sustained support of toplevel management at PIA, the Institute has functioned smoothly for over two decades, and has emerged as a leading industrial training center in the region. The Institute imparts industry knowledge, and specialized training courses in arts and crafts to the families of employees for a very nominal fee, empowering them to earn livelihoods and gain respect in their communities.

MARKET SIZE AND MARKET GROWTH:


The total market size for the year 2006-2007 was 14.199 million passengers as compared to 14.165 million passengers for the year 2005-2006, therefore resulting loan in decrease. Besides having a large number of engineers, there is always been a question mark on PIAs fleet maintenance. Last year European Union banned 20 out of 42 planes were banned from operating in Europe. This results 4 billion loss to the company w e r e b a n n e d just from Europes segment to the company. This ban was imposed just due to the lack of proper maintenance.

Strong Competition:
PIA is now competing against carriers such as Airblue. PIA remains Airblues strongest

competitor because of the huge market it has gained over time, strong brand image and customer loyalty.PIA has started new low-fares subsidiary PIA Express to stop the Airblue market share growing to fast. Moreover, major legacy airlines have been focusing on restructuring costs, which has improved their competitiveness. With costs restructured, the legacy airlines are becoming more formidable competitors in terms of increasing capacity, matching prices and leveraging their frequent flier programs. Increasing competition could adversely affect the companys margins

Human resources and administration department:


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Pakistan International Airlines is a huge company with over 18, 000 employees. A human resources and administration department is working but it is needed to be work efficiently and according to the standards. If it would have been working properly then there would not been 525 ratio of employees per plane. Jobs must be designed by this department. Each and every position must be clearly defined. From the chairman to a sales agent and even further down everyone must be clear about his responsibilities. He should be held res ponsible for his job. I n t e r n a t i o n a l s t a n d a r d s f o r r e c r u i t m e n t m u s t b e a d o p t e d . R i g h t n u m b e r o f p e r s o n s must be appointed for a specific job. Proper advertisements for each and every job must be done so that as many talented candidates can come in front. P I A s manpower should be combination of youth and experience. Both the age groups shall be included in order to gain profitability. R e w a r d s a n d i n c e n t i v e s m u s t b e a t t a c h e d w i t h t h e p e r f o r m a n c e. S i m i l a r l y t h r es h o l d b e a c h e c k i f a n e m p l o y e e i s no t f u l f i l l i n g h i s o r h e r r e s po n s i bi l i t i es . J o b s e c u r i t y m u s t b e d o n e s o t h a t e m p l o y e e s f e el s e c u r e w i t h i n t h e o r g a n i z a t i o n a n d remain loyal and committed to it, work for its benefits. Employee participation in the decision making must be enhanced. For the top level management such as chairman or managing director people having aviation industry experience must be hired. There should be no political or government influence during recruitment or selection. Merit must be considered at first.

Achievements and Recognitions 1. First airline from an Asian country to fly the Super Constellation. 2. First Asian airline to operate a jet aircraft. 3. F i r s t A s i a n a i r l i ne t o b e g r a n t e d m a i n t e n a n c e a p p r o v a l b y t h e U S F e d e r a l Aviation Administration (FAA) and the Air Registration Board, predecessor of the British Civil Aviation Authority (CAA).

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4. F i r s t n o n - c o m m un i s t a i r l i n e t o f l y t o t h e P e o p l e ' s R e p u b l i c o f C h i n a , a n d operate a service between Asia and Europe via Moscow. 5. First airline in Asia to induct the new technology Boeing 737-300 aircraft. 6. An IBM 1401, the first computer in Pakistan, was installed in PIA. 7. First airline in the world to operate scheduled helicopter services. 8. First airline to show in-flight movies on international routes.

Nature of work and work environment of Airblue


Nature Of Work:
Airblue made travel most comfortable at an economical price. Airblue was the first to introduce E-ticketing in Pakistan, excelling its compatibility on others. It was a budget airline with a difference. Good food, good entertainment and most exciting hospitality, one could say that it was a value driven travel. Airblue's single biggest contribution to the corporate world in Pakistan was that it convincingly demonstrated that one could do things efficiently, even in a typical environment as in Pakistan. Many corporate entities tried to create a paperless work environment, in order to minimize its costs and maximize its efficiency, but only Airblue had been successful to the extend that its management did not need offices to function. Airblue had signed a 'Hosting Agreement' with Sabre of USA and used the same software that was used by over 100 airlines around the world. Airblue had been able to grab 20 percent share of the domestic air travel marketing within six months of its operations. Latest technology was being practiced for the airline's advantage and its valued customers. AirBlue has performed very well so far. It has tried to build strategy on genuine understanding of the customers true needs. It identified key customer satisfaction drivers, and then turned into a foundation to shape company development strategies and innovations.

The objective is to realize the quality-strategy integration 1. AirBlue should adopt an aggressive marketing strategy to promote airblue as a customer-driven airline. 2. It should continue to be innovative in introducing latest technologies to reduce Its costs and enhance customers ease, satisfaction and its profits as well. 3. AirBlue is doing well against PIA, but it should adopt proactive strategies to compete with Chinese airlines.
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4. There is a huge potential in domestic market because its operating flights for only seven cities. So, airblue should expand its network.

Work Environment:
A positive work environment makes employees feel good about coming to work, and this provides the motivation to sustain them throughout the day. Airblue which started its operations last year, set a new dimension in the aviation industry. With new generation aircraft, spacious seats, elegant and charming hostesses, Businessmen, the elite and professionals preferred to travel by Airblue, since its flights were 100 percent punctual. As a result, it captured more than 20 percent market share on domestic routes, in less than a year. In essence, a transparent and open form of communication addresses the employees need to feel that what they have to say has value. It is what makes employees feel that they belong in the Airblue. Work then becomes meaningful because the employees know that what they contribute affects the AirBlue and AirBlue is also well aware of how to response in order to attain maximum outcomes. Airblue - a quality airline venture in Pakistan - offers exciting and challenging opportunities for talented and innovative people looking to exploit their full potential and grow with them. they offer excellent working conditions and competitive salary and benefits package including travel privileges. The airline business was a dynamic business, where things changed rapidly and issues required a rapid response. From day one, Airblue had a strategy of developing a real-time control of its operations. It invested heavily in IT, because it allowed its management to respond to opportunities and problems as they arose, and not conduct a post facto analysis of situations. In the business one had to respond within minutes and not hours and must have the tools to respond to the rapidly changing environment. The customer was looking for best value, one must be able to offer him the product, that he wanted, and Airblue had given its travels a real choice by offering a quality product at the market driven price. Airblue's entry stimulated growth in the market. It depicted a 32 percent year on year growth during the last two quarters of 2004, way over the negligible growth elsewhere in the world in 2004. Airblue managed to register substantial growth despite a drastic increase in jet fuel prices, said a senior airline official. Airblue started its operation in May 2004, when the jet fuel price in Paskistan was around Rs 16 per liter, which almost doubled to Rs. 29 a liter within just three months, much beyond their cushion provision for such an exigency. Airblue, through its operations efficiency, managed to sustain the drastic increase in jet fuel price, which was over 30% of the entire operational cost. It not only managed to enjoy a substantial share of the market within a short span of time but
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also had a profitable load factor of over 90%, due to the fact that Airblue was the only 100% eticketing start-up airline in the world. Airblue had already added an additional route, Peshawar, during the last quarter and increased its frequency on the existing routes. It was also starting flights to Quetta from next month. Airblue will move to international destinations later in the year, as allowed under the National Aviation Policy.

Public Perception
Public perception About PIA: The public opinion play vital role in determining the future of any business. If it is positive then there are great chances of being that organization profitable. If it is negative then it means people are dissatisfied and they will spread negative word of mouth about that organization, not only losing one customer but this chain can lead to drastic results. If we talk about PIA then reports of PIA cabin crews increasing involvement in drug smuggling and those of cockpit crew caught while flying under influence of alcohol are cause of grave concern, the recent revelation of a few senior PIA pilots holding fake educational degrees exposed the grave moral degradation that has crept in the airlines higher echelons. While increasing instances of aborted takeoffs, engine failures, inflight technical problems and emergency landings in both PIAs heavy bodied and light aircraft reflect serious problems with PIAs maintenance/quality assurance systems, it also points towards a weak oversight by Civil Aviation Authority (CAA), the airlines inspecting and regulating authority. With over 18,000 employees, the airline has abnormally high aircraft to personnel ratio of around 1:450 (450 persons to support one aircraft) as against the average 1:150 for many successful and profit-making international airlines. Despite being cash strapped, the PIA hired a deputy managing director at a reported monthly tax-free salary of $50,000 and other lucrative perks for almost four years, till he was fired recently after public hue and cry. Can PIA or other state enterprises that are stuffed with former terrorists or known crooks, ever progress to remain financially viable? Successive PPP governments since 1988 ensured systematic deterioration of public sector institutions through politically motivated and merit-less inductions that resulted
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in poor quality of human resource and created a culture of inefficiency, slackness and corruption. According to former head of Military Intelligence in Sindh, Brig (Retd) Hamid Saeed, who gave evidence before Supreme Court in the Asghar Khan case, a large number of Al-Zulfiqar terrorists trained in India were inducted in various organisations including PIA during Benazir Bhuttos first government in 1988-90. The government delivered the death blow when the Sacked Employees (Reinstatement) Ordinance was promulgated in February 2009 to reinstate over 7,000 people, mostly PPP jiyalas, who were appointed in autonomous/semiautonomous bodies or government service during Benazirs second tenure as Prime Minister (1993- 96). They were later dismissed from service on account of discipline or corruption charges after the PPP government was sacked in November 1996. Were these employees subjected to special screening/security clearances before re-inducting them after almost twelve years with arrears of financial compensation as well as promotion/restoration of seniority? The experiment of appointing senior PIA pilots to manage PIA/CAA has accentuated chaos in these organizations. While the appointment of the present secretary of defence as chairman PIA may be a useful interim arrangement, PIA needs a full-time chairman with credible aviation background and full powers to stem the rot. Since no good can be expected from this government/ Parliament, the Supreme Court or caretaker government in March next year need to find the legal way to abolish the Sacked Employees (Reinstatement) Reinstatement bill 2009 that contributed towards collapse of public sector entities including PIA. The Supreme Court must appoint an independent commission to conduct a holistic probe into PIAs affairs including flight operations mismanagement, flight delays, non-viable loss making routes, unreliable maintenance and overhaul of aircraft/engines, shady aircraft procurement/ leasing deals and corruption in foreign postings in order to improve PIA in Public eyes Till the commission submits its report to the Supreme Court that is presently hearing the PIA suo moto case and unless structural changes or a transparent procurement regime is in place, the government should be barred from pushing through PIAs reported Rs25 billion business bailout plan as well as procurement/leasing of new aircraft.

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If PIA is to regain its lost glory and the richly deserved slogan of Great people to fly with of the past, this miracle could only be performed by another Air Marshal Asghar Khan or Nur Khan-style committed, selfless and bold leadership witnessed in the sixties/seventies. Unless PIA wins back passengers confidence through professionalism and commitment to safety and service, the public perception of Dangerous people to fly with may soon become a reality. Public perception about AirBlue:
Public opinion is the aggregate of individual attitudes or beliefs. Public opinion can also be defined as the complex collection of opinions of many different people and the sum of all their views, or as a single opinion held by an individual about a social or political topic. The meaning of public opinion has changed dramatically over time. The public perception about AirBlue is much better and positive as we compared it to PIA. People enjoys safe journey at comparatively cheaper rates. The reputation of AirBlue in front of people was damaged after repeatedly crashes, their continues negligence and poor performances. An Airblue jetliner crashed into the Margalla hills on July 28, 2010, killing all 146 passengers and six crew members on board. The court issued only a show-cause notice to Bhoja Airs Managing Director Arshad Jalil, saying that since no representatives of the airline had appeared before the court, taking stricter action would not be correct. The Peshawar High Court issued orders to the federal government to suspend the directorgeneral of the Civil Aviation Authority (CAA). An assistant to AirBlue Counsel Wasim Sajjad told the court that 107 of 152 affected families had been compensated and paid Rs5.5 million each. However, a petitioner refuted the claim saying that he had presented all documents and certificates but was yet to receive any compensation. The court then gave AirBlue 20 days to compensate all heirs, saying that in the event that the airline fails to comply with the order, the court will ask the federal government to suspend its activities and withdraw all facilities. CAA releases crash report According to data recovered from the black box, the aircrafts captain had ignored the air traffic controllers suggestions several times. Aircrew failed to display superior judgment and professional skills in a self-created unsafe environment. In their pursuit to land in inclement weather, they committed serious violations of procedures and breaches of flying discipline, which put the aircraft in an unsafe condition over dangerous terrain at low altitude.

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We can guess through above stated facts that AirBlue has itself damaged its reputation. Although it has achieved great market share within short time but these flaws will obviously damage its credibility, if the conditions persist.

Conclusion
Explain which organization is better in the performance of its main objectives and why?
As we all know that PIA is Government owned organization and Airblue comes under private sector. If we compare that which organization is better in its performance PIA or Airblue. We can prove it through looking at their performance, strategies and completion of their main objectives. Lets talk about the PIA first, Traditionally, government jobs have been considered safe with no or little threat of job loss, especially when job opportunities in the private sector were not. There was a time when governments, both Federal and State, were the biggest employers. Then, job seekers and believed that bagging a government job made their or their children's lives more secure. Nevertheless, Government jobs have traditionally offered many perks which private jobs do not. Here are a few job benefits and reasons for choosing a government job over a one in the private sector. 1. Pension; this is one of the attractions. 2. Financial services, such as mortgages at a low rate of interest offered by the respective department where the employee is working. 3.Promotions and pay raises offer immediate social recognition/status to employees at specified intervals. 4.Higher positions often entail unmatched administrative power. 5.Relatively stronger immunity against job loss. 6.Some governments promise employment to relatives of employees. 7.More relaxed, congenial working style. There are a few downsides to government positions, too. Government jobs offer a low starting salary, in comparison to private employers. Salary hikes are sometimes meager as they are regulated by standardization. Career growth opportunities can be few and far between, as promotions are standardized and often based on seniority. Another aspect of government jobs is that they may be perceived as less challenging. A common complaint about government jobs is that the routine and mundane nature of the job often leads to complacency.
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Attributes Destinations Punctuality Quality of food Hospitality Economical Technological advancement

AirBlue 5 7 7 5 6 7

PIA 7 5 6 6 5 5

Shaheen 5 6 4 5 6 5

Aeroasia 5 4 3 6 7 5

Over recruitment:
Pakistan International Airlines is a large organization with 18,043 employees. Its fleet comprises of 43 planes. It operating planes are just 33. It means round about525 employees per plane. The industry average is being between 150 -250 people. T h i s d e s c r i b e s t h e p o s i t i o n o f t h e c o m p a n y c l e a r l y . T h i s d r i v e s t h e c o s t o f t h e company further.

De-motivated employees:
Pakistan International Airlines is a company which is constantly going in loss. Higher number of employees and the company already going in loss de-motivates the employees.

Nepotism and Political involvement during recruitment and selection:


Pakistan International Airlines being the government organization has the strong influence of the politicians and government officials. Reports say that Mr. Tariq Kirmani was appointed chairmen PIA due to being a friend of Prime minister

Lack of experience relating to aviation industry for the top management:


Look at the background of former three chairmen of PIA. Mr. Tariq Kirmani wa s from PSO, Mr. Zafar Khan was from PTCL and Mr. Ahmad Saeed was from Service industry having no experience of aviation industry. What could t h e y contribute to the organization with no such knowledge?

Lapses in the management:


The PIAs management is ineffective to resolve and plan at the right time. Planes with damaged Nose Random are grounded for consistent 9 days.

Low scale advertisements and awareness:


No advertisements and awareness to the organizations brands in such a modern era of marketing. No such efforts to enhance the brighter and soft image of the nation as well as airline are made.
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Rising fuel prices in the World:


There is been consistent rise in fuel prices in the international market. Fuel prices have impacted on almost every airline in the world. This has aff ected P a k i s t a n international Airlines more than any other airline due to its aged fleet. New planes are fuel efficient as compared to old ones. In an airline normally 30 -35% of expenses account for fuel expenses but in Pakistan International Airlines this number goes to 45-50%.

Aged fleet:
Pakistan International Airlines fleet has total 43 planes. Out of those 43, only 33are operating at the moment. The average age of the fleet is 13 years which has become 13 years with the induction of 4 new planes. Previ ously it was 14. Due to aged fleet the fuel is consumed more and maintenance expenses are increase.

Maintenance problems:
Besides having a large number of engineers, there is always been a question mark on PIAs fleet maintenance. Last year European Union banned 20 out of 42 planes w e r e banned from operating in Europe. This results a 4 billion Rs. loss to the company just from Europes segment to the company. This ban was imposed just due to the lack of proper maintenance.

Corruption at its peak:


Corruption is a sin that has hollowed Pakistani society bases. Like all other departments of our country corruption is at its peak in Pakistan I n t e r n a t i o n a l Airlines. Sale of Roosevelt hotel in Dubai is a clear example of it. The hotel was v a l u e d a b o u t 1 b i l l i o n b u t i t w a s s o l d o n l y i n 4 0 m i l l i o n s .

Less technology advanced as compared to its competitors:


PIA is competing with the airlines from all over the country especially with the Middle East airlines which are coming in with heavy investment. PIA being already in a financial crunch faces a tough task. Lack of training facilities: Although PIA is running a training and development department in Karachi but it is insufficient to feed such a big organization with almost 18000 employees. Special skills such as engineering, technicians are lacking. If they are there, they are not delivering.

AirBlue:
As we know, Airblue is privately owned company. There are many advantages to working in the private sector, and many benefits to choosing public service. Before you decide which sector for
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which you wish to become employed, it's a good idea to examine the pros and cons of working in each.

Recruitment:
Recruitment in Airblue is sensible. As it is private company it does not believe in Core employment. They have few core and permanent employers. They mostly recruit employers on contract bases. Contingent employment is used by AirBlue. It decreases the cost of company This describes the position of the company clearly.

Motivation programs:
The airblue uses contingent employment. It helps in motivating their employees. Employees are more committed to their tasks and project. They have a lot of motivational programs to motivate employees.

Experienced Staff:
The staff of Airblue is efficient. Airblue hire those people which are experienced and competent. Employers have vast background experiences. There is diverse and dynamic workforce.

Advertisement and Management:


We see a lot of advertisements of Airblue. They mostly come up with new innovative packages to attract more and more of customers.

Comparison Of Debts Between PIA and Airblue Debt: AirBlue has a significant amount of debt . It has short term financing of Rs.
254million current and future debts could have important consequences for stakeholders of the company. For example, debt could impair AirBlues ability to make investments and obtain additional financing for working capital, capital expenditures, acquisitions or general corporate or other purposes . Debts could also put AirBlue at a competitive disadvantage to competitors that have lesser debt and could also increase the company vulnerability to interest rate increases.

Debt: PIA has a significant amount of 42 billion debts. Current and future debts could have
important consequences for stakeholders of the company. For example, debt could impair PIA ability to make investments and obtain additional financing for working capital, capital expenditures, acquisitions or general corporate or other purposes. Debts could also put PIA at a
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competitive disadvantage to competitors that have lesser debt and could also increase the companys vulnerability to interest rate increases With total losses exceeding Rs150 billion and almost a dozen of its 38 aircraft grounded, secretary defence and PIAs new chairman Lt-Gen (Retd) Asif Yaseen Malik is justified in terming the airline as a bleeding organisation. References http://www.piac.com.pk/ http://en.wikipedia.org/wiki/Pakistan_International_Airlines http://www.answers.com/topic/pakistan-international-airlines?cat=biz http://news.bbc.co.uk/1/hi/business/1561315.stm http://www.airblue.com/corp/050213_thenation.htm www.airblue.com.pk http://www.scribd.com/doc/17491278/Project-on-PIA-by-Shehmeen http://education.lokoi.com/project-on-pakistan-international-airline-pia http://www.pakistanjobsbank.com/Jobs/14592/PIA-Pakistan-International-Airlines-Requires-ProjectDevelopment-Engineer-Government-Job/ http://www.piac.com.pk/cms/tenders/1272_Water%20proofing%20ad%20and%20Criteria.pdf A.M Ahmed and M. Zairi SWOT analysis for Air China performance and its experience with quality (http://www.emeraldinsight.com/1463-5771.htm)

Magazines, Journals and Articles:


Aviation: Competition Heats Up (Pakistan Economist Cover Issue) PIA ANNUAL REPORTS(2004,2005,2006,and 2007) Philip Kotler and Kevin Keller,Marketing Management12 edition
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Mr. Ashraf(air traffic controller) 0344-7868287 Mr. M. Nasir(salary Maintainer) 0333-2386892

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