Pakistan International Airline

Executive summary:
Pakistan international airlines is the first and earliest airline of Pakistan as well as of south Asia since
1955.PIA has its routes stretched to Asia, North Africa, Europe and Middle East. It connects 35 cities within
Pakistan. PIA also played part in conducting work for aerospace manufacturers. We went there to study
their HR department and our key findings were basically for how satisfied employees are with their jobs
and are their attitude matters to the organization. This report is a summary of what we find out and how it
relates to our course outline.

For this report their Deputy General Manager helps us and based on their interviews we are making this
report. We are really thankful for our instructor Ms Sehrish Sabir who taught us the best practices in full
details that we had idea about the organization’s HR department and concluded with the best possible
recommendations.

The theme of this summary depends on how PIA takes advantage from every department and for them job
satisfaction is the main element. Most of their employees are satisfied with their jobs because they are
providing best means of job satisfaction. Most organizations strive for employee satisfaction, but not all
attain this goal. That’s why it’s important for human resources professionals to know more about the
factors that can increase employee satisfaction, and how it fits into a company’s overall success

In this report we highlighted some problems. Asked for the recommendations and we suggested some
ways which we learned from this course.

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Table of Contents
Executive summary: ........................................................................................................................................................... i
Chapter 1: Introduction of the chapter and its main components ................................................................................. 3
Chapter 2 : Literature reviews ......................................................................................................................................... 3
1) Job Satisfaction: .................................................................................................................................................... 3
2) Job involvement:................................................................................................................................................... 4
3) Organizational commitment ................................................................................................................................. 4
4) Compensation and benefits: ................................................................................................................................. 4
Chapter 3 : Organization’s profiles and industry .............................................................................................................. 5
Chapter 4: Methodology and execution strategy:............................................................................................................ 6
Chapter 5: Results ............................................................................................................................................................ 6
Chapter 6 : Comparison and Discussion of Results .......................................................................................................... 6
1) Job analysis and job design: .................................................................................................................................. 6
2) Recruitment and Selection: .................................................................................................................................. 7
3) Orientation: .......................................................................................................................................................... 7
4) Training and Development: .................................................................................................................................. 7
5) Career development & succession planning: ....................................................................................................... 7
6. Incentives and benefits:........................................................................................................................................ 7
7. Performance appraisal:......................................................................................................................................... 7
8. 360 feedback: ....................................................................................................................................................... 7
Chapter 7: Conclusion ....................................................................................................................................................... 8
Chapter 8 : Limitations...................................................................................................................................................... 8
Chapter 9: Recommendations .......................................................................................................................................... 8
References ........................................................................................................................................................................ 9

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Chapter 1: Introduction of the chapter and its main components

Job Attitude and Job Satisfaction are the main element of every organization. The most important
component of the organizations is attitude of the employees. Even the most skilled and talented employee
might be prone to severe underperformance if his or her attitude in the workplace is lacking. On the other
hand, employees whose positive attitude of dedication and commitment leads them to high levels of effort
often excel even when they are not the most talented and skilled. According to the report of Employee Job
Satisfaction and Engagement Report by the Society of HRM the employee satisfaction rate took a big jump,
rising from 81% in 2013 to 88% in 2016, improving economy was one of the main reason in the high level
of job satisfaction. since employers have been more willing to work and organizations are able to boost
salaries, benefits and perks for their workers. Additionally, as the labor market stabilized, job seekers took
advantage of new opportunities for positions that best fit their skills and interests. . Organizations have
grown increasingly aware of the significance of this matter and are investing more time and effort than
ever to create the best attitude and job satisfaction possible among their employees.

We are selecting this topic because in most of the organization they don’t give that much attention to job
satisfaction and attitudes of the employees because of this their employees performance effects and it
effects organization productivity. Friendly workplace environment helps to boost the efficiency level of the
organization.

Chapter 2 : Literature reviews

The findings of the research explore the HR department of PIA to know that how much their employees
are satisfied with their jobs

1) Job Satisfaction:
In Pakistan International Airlines job satisfaction represents one of the most complex areas facing today’s
managers when it comes to managing their employees. Many studies have demonstrated an unusually
large impact on the job satisfaction on the motivation of workers, while the level of motivation has an
impact on productivity, and hence also on performance of business organizations. Unfortunately, in our
region, job satisfaction has not still received the proper attention from neither scholars nor managers of
various business organizations.

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2) Job involvement:
job involvement may be described as a mental state of psychological recognition with one’s job. it can
be described by “the extent to which an individual’s work performance influences his self-esteem”.
According to them, persons, who are highly involved in their jobs, are also highly attached to their
employer. various clarifications of employees have been recognized absorption by making its association
with different concepts. In their organization employee are highly involved in their job as the
organization is focusing on all the levels of job satisfaction. Employee commitment and involvement
have gained focus on job relevant attitudes.

3) Organizational commitment
Commitment is a strong faith in the values and objectives of the organization. It is a readiness to place
substantial endeavor for the organization. Organizational commitment has normally been described as an
affection to or recognition with the organization.

Several experimental researches prove the significant role of organizational commitment in better
productivity of organization and they normally specify that an employee’s performance intentions are
associated with job satisfaction and organizational commitment. Organizations should pay more focus on
this variable because organizational support can boost the morale of employee as a result will lead to high
organizational commitment and low turnover intention. Greater job autonomy leads to more commitment
so the current organization needs to provide more autonomy to their employees so that employees could
decide about their goals and pursue plans to achieve them

4) Compensation and benefits:

Effective compensation and Benefit programs lead to employee satisfaction. PIA HRD compensates its
employees and provides them benefits. PIA HRD has decided what type of compensation, incentives &
benefits should be provided to workers to satisfy and motivate them. they pays fixed salary plus increment
and incentives to its worker. Several benefits are also provided by PIA to its workers. Monetary rewards
(pay for performance, incentives, bonuses), non- monetary rewards (appreciation, certificates, status,
recognition) and benefits (Medical, Tickets, Pension).

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Chapter 3 : Organization’s profiles and industry

PIA became the first jet operator, flying weekly to London by Boeing 707 leased from PAN AM. In the past
government of Pakistan merged PIA with orient Airlines, but continued flying under the name of PIA.PIA
took over routes of orient airline. Later, PIA became a state corporation on March 11, 1955. The planes
which were owned by orient Airlines were painted in PIA’S green livery. The shareholders of orient
received 40 percent interest in PIA.A route was launched between Karachi and Delhi on March 15.Pakistan
international Airlines was incorporated on April 18, 1955.The company was enlisted on the Karachi stock
exchange list on November 5, 1957.

International routes were established in the mid 1960s.PIA started its flights to Kabul, Afghanistan and in
1964 it became the first non-communist airline to fly to the republic of china. It also flew to Moscow and
Tehran. This was considered as the golden era of PIA.

There were some major problems which they faces. After losing money in 1971-72, PIA made profit of 3
million in 1974.Its services to other airlines brought in $ 4 million a year, while it’s budget was $ 200
million. This includes operating profit of $ 5.5 million and total revenue of $206.6 million in 1975-1976.

Due to losses suffered by the airline, government of Pakistan decided to make this company privatized. Till
today, government had made plans for the privatization of the company. However, no reasonable
agreement has been made to this day. The government of Pakistan which is elected in 2018 has decided
not to make PIA privatized but to make it a profitable organization by making changes in the top
management. Up till now minor changes have been made and things are planned to make further changes
in the future.

On the other hand, company is making plans on the adopting state of the art technology. High tech
equipment is to be imported in order to reduce number of employees and to save capital. PIA has started
working on the development on safety of the passengers. Government has declared funds for the
improvement of PIA by making and renovating airports, providing security measures for the employees
and passengers. Life was never easy for PIA, but is has a worth for Pakistan and its people. The services of
PIA have helped Pakistan to grow and more widely known around the globe. In the upcoming years PIA will
enter into an advanced era.

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Chapter 4: Methodology and execution strategy:

Data for this research is gathered from primary data which was conducted on HRD of PIA and through
secondary means. The Research was conducted by arranging in-depth interview with HRD manager of PIA.
During interview a unstructured questionnaire containing open ended questions was used as research
tool. To check the reliability of the measuring instrument, necessary beginning analysis is performed, in
combination of analysis.

Chapter 5: Results
PIA has a huge workforce and workforce is just like an asset for the organization. Organizations
productivity goes high when their employees are satisfied with their jobs. Intense focus on job satisfaction
and organizational commitment leads to lower employee turnover, employee retention, satisfied workers
and ultimately organization success. PIA focuses on career development and meets all the requirements of
job satisfaction of its workers then the employees will work efficiently and effectively. Fair compensation
and benefits programs can also increase employee’s wellbeing and loyalty towards organization.

Chapter 6 : Comparison and Discussion of Results

The findings of this research explore how satisfied employees of PIA are towards their Job . To study Job
satisfaction of PIA we need to in depth analysis of their HR department.

1) Job analysis and job design:

In PIA Job analysis is conducted by collecting information from departments regarding vacancies and
determines key requirements to perform those jobs. In second stage the analysts critically conduct job
identification e.g. job status, duties and responsibilities, working conditions and performance standards.
The last step is designing of job descriptions, job specifications and job standards (Targets/criteria). PIA HR
managers design jobs in a way that there will be smooth and continuous arranged tasks that will be easy to
understand. Any job in which worker has to interact with the machinery will not be conducted until proper
is training is being given to operational workers e.g. Engineers. A job must be designed in such a way that it
will require variety of techniques to fulfill tasks so that workers can openly express their skills.

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2) Recruitment and Selection:

PIA Recruitment process involves internal and external sources to attract talented workers. Mostly
recruitment is done externally because there will be a huge labor pool and it will become easy for PIA to
select potential and required candidates .In PIA selection is made on merit basis the person who fulfils
selection criteria and final test would be selected. Interview of selected candidate is conducted with the
panel of judges so that appropriate decisions could make be for the selection of candidates

3) Orientation:
In PIA an orientation is given to selected workers in order to make them productive contributors.
Orientation not only improves the rate at which the employees will perform but also helps employees
satisfy their personal desire to feel they are part of organization’s social network

4) Training and Development:

PIA provides proper training to newly hired pilots cabin crew and Engineers and other personnel of
organization. If PIA wants to retain potential workers e.g. engineers etc. then it should focus on proper
T&D of workers . PIA also emphasizes on employees development because employee development
programs make positive contribution to organizational performance, a more highly skilled workforce can
accomplish more organizational goals.

5) Career development & succession planning:

PIA is providing chances of career development and succession planning to workers through more
networking, job performance, exposure, mentors and sponsors, key subordinates, growth opportunities
and international experience.

6. Incentives and benefits:

PIA pays fixed salary plus increment and incentives to its workers. Several benefits are provided by PIA to
its workers. Monetary rewards (pay for performance, incentives, bonuses), non-monetary rewards
(appreciation, certificates, status, recognition) and benefits (Medical, Tickets, Pension).

7. Performance appraisal:
According to human resource manager Performance appraisal is a source to evaluate the performance of the
employees. Appraising workers on their performance leads to motivated workforce.

8. 360 feedback:
PIA uses 360 feedbacks to evaluate workers’ performance and make them more motivated for the future.

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Chapter 7: Conclusion
PIA has a huge workforce and workforce is just like an asset for the organization. Human resource
important functions are job analysis, recruitment and selection, training and development, compensation
and benefits and performance appraisal. Intense focus on Training and development, compensation and
benefits, career development and succession planning leads to lower employee turnover, employee
retention, satisfied workers and ultimately organization success. If PIA focuses on career and succession
planning of its workers then the employees will work efficiently and effectively. Fair compensation and
benefits programs can also increase employee’s wellbeing and loyalty towards organization. Hiring and
workforce retention both are important for the success of PIA. PIA HRM has a focus on effectively
managing talent and knowledge management of employees. Due to lack of Human resource budget HRM
of PIA is unable to take initiatives which it intends to take regarding workforce management

Chapter 8 : Limitations
The study is limited to one city e.g. Lahore due financial & Time Constraints. In future we intend to explore
this study over the HRD of PIA, operating in different cities of Pakistan. The study can also be explored by
conducting comparative studies with other international airlines.

Chapter 9: Recommendations
Top management should make effective strategies to expand PIA’s operations, improve technology and
should concentrate on workforce management. Career planning and succession planning should be
performed by HRD for employees. HRD should focus on the technical training programs of its technical
workers. HRD should conduct proper monitoring of its technical and engineering staff performance to
reduce the chances of technical faults in its core fleets. HRD of PIA must make strategies to overcome the
problems of late flights caused by technical problems and cargo problems caused by poor performance of
operational workers.

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References :

https://econpapers.repec.org/paper/pramprapa/46415.htm

https://www.villanovau.com/resources/hr/importance-of-job-satisfaction-in-the-workplace/

https://www.indeed.com.pk/cmp/Pia/reviews

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