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HISTORY

When our beloved Country PAKISTAN was still in offing in june 1946 Mr. Mohammed Ali Jinnah, the Founder of the upcoming Nation, instructed Mr. M.A. Ispahani, a leading industrialist, to set up a national airline, on priority basis. The new airline was initially registered in Calcutta as Orient Airways Ltd. an operating license was obtained in May 1947 with Calcutta as the base. Mr. M.A. Ispahani was the first chairman of this new airline. After the birth of Pakistan it was realized that the Orient Airways being a privately owned company, with limited capital and resources. It could not be expected to grow and expand on its own, so Orient was invited to merge with the government of Pakistan. The outcome of the merger was the birth of a new airline, named Pakistan International Airlines (PIA) on 11 March, 1955. In March 1960, PIA launched its first jet service (Boeing 707) on the London-KarachiDacca, route which was very success successful. This service enabled PIA to become the first Asian Airline to operate a jet aircrafts. In 1961 PIA started a flight schedule from Karachi to New York. In 1962, PIA set out to break the record for the fastest between London and Karachi. With representatives of FAI (Federation Aeronautique International) on board to monitor the official timings, PIA completed the flight in 6 hours 43 min 51 sec, the fastest record which to this day remains unbroken. In 90s PIA expanded its business for massive HAJ and Umrah operations to Pakistan's smaller cities besides the operations from the major cities of Islamabad, Peshawar, Lahore, Quetta and Karachi. At present, PIA operates to 70 destinations (38 international and 37 domestic ) in countries spread over 4 continents of the globe.

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INTRODUCTION
In Pakistan, PIAC stands for "Pakistan International Airline corporation". It is one of the best airline of the world. Its revenue is in millions of dollars and playing an important role in the growth of the economy of country. It was established in 1955 as a statutory corporation. Its departments are administration, human resource management, finance, marketing, communication and operation department. The network of PIA flights is spread all over the world. It is operating on 55 international air routes and 38 domestic stations.

BOARD OF DIRECTORS

Ch. Ahmed Mukhtar (minister for defence and chairman PIA) Malik Nazir Ahmed Mr. Javed Akthar Lt. Gen (retd) Naeem Khalid Lodhi (Federal Secretary Defence) Syed Omer Sharif Bokhari Dr. Waqas Masood Khan( federal finance secretary) Mr Hussain Lawai Makhdum syed ahmad Mahmud Khawaja jalaludin roomi Mr. yousaf waqar Capt. Nadeem Khan Yousufzai (Managing director PIA) Mr. Muhammad Shuaib (secretary of PIA).
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MANAGEMENT MEMBERS

Managing director Capt. Nadeem khan yousufzai Deputy Managing director Mr. M.Salim sayan Chief Financial Officer Mr.Nayyar Hayat Director- corporate Planning Mr.Irshad Ghani Acting Director - HR, administration & coordination Capt. Saleem Ahmed Director - Engineering & Maintenance Mr.Maqsood Ahmed Director-Flight Operation Capt. Naveed Ahmed aziz. Acting Director-Airport Services Mr. S. Aijaz Mazhar Director-Information Technology Mr. Sher Muhammad jamali Director-flight Services Capt. Muzzafar Talpur. 4|Page

Acting Director-marketing Mr. anjum Amin Mirza Director-Percision engineering Complex Amin ullah khan Acting Director-Procurement &logistics Mr. amanullah qureshi. The board of directors and management stand commited to flourish the PIA. They are able to work on short term goals and long term objectives in the light of vision and mission statement of PIA.

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Vision and Mission Statement

VISION

PIAs vision is to be a world class airline meeting customer expectations through excellent services, on-time performance, innovation products and absolute safety

MISSION STATEMENT

PIA will be the airline of choice in all its international and domestic markets, consistently exceeding customer expectations, by providing exquisite quality, reliable and safe air transportation while earning sustaining profits for its share and getting the entire world market captured.

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GOALS AND OBJECTIVES

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

To provide and develop safe, efficient, adequate, economical and properly coordinated domestic as well as international air transport system. To operate any air transport service or any flight by aircraft for a commercial or other purpose, and to carry all forms of aerial work. To acquire, own, run, mange or participate in the running management of, any hotel or business connected therewith. To provide for instruction and training in matters connected with aircraft or flight by aircraft of persons employed or desirous if being employed either by the corporation or by other persons.

To promote any organization outside Pakistan for the purpose of engaging in any activity of a kind which the corporate has power to carry out. To acquire, hold or dispose of any property, whether movable or immovable, or any transport undertaking. To repair , overhaul, reconstruct assemble or recondition aircraft, vehicles or other machine parts, accessories owned by the corporation or by any other person.

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OFFICES OF PIA
HEAD OFFICE:
Head office Karachi PIA Building, Jinnah International airport, Karachi -72500.

REGIONAL OFFICE:
PIA Building near wapda house, mall road Lahore 44000.

BOOKING OFFICE ISLAMABAD:

PIA Building, 49 blue area, Islamabad Phone 920991 Fax 9202307 Manager: Nasir Mailk Assistant Manager: Miss Farhat sandhani.

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BCG Matrix

BCG is a strategy tool that guides resource allocation decision on the basis of market share and growth rate. BCG divides organisations into four different categories. These are as flows: Cash Cows: which have high market share but low opportunity for growth. Stars: which have high market share and high opportunity for growth. Question marks: which have high opportunity for growth and low market share. DOGS: which have low market share and low opportunity for growth. On the basis of these assumptions, PIA have been classified as a Cash cows because it has a high market share and low business growth.

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SWOT ANALYSIS

Strenghts:
High quality services People oriented organisation (no language problem) Govt. sponsored organisation Perfect timings Abroad Pakistanis prefer PIA (patriotism) Healthy interval environment

Weaknesses:
Less international traffic. Weak rewards and apprasials. Less marketing efforts. High fares Over employment Lack of professionalism Low salaries to staff

Opportunities:
Better skilled persons are available within the country. Large market shares inside the country and outside the country as well Courier services can be expanded more at domestic level and international level. PIA has the opportunity to provide carriers at lowest cost Better training programs Have opportunity to grow & expand throughout the country.

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Threats:
Fluctuation in fuel prices one of the big threats for PIA. Because sudden increase in price will affect the fares of it. Frequent change in the government is also a threat for PIA. Busy flight schedules are also threats for it, specially the time of Haj. High amount of loans taken by the company is also a big threat for PIA.

PROBLEMS
Main problems of PIA in management are as under:

Political interference:
In PIA major problem is that there is a high political interference in the appointment and selection of employees. Executives are the people who can improve or fail any business. These executives select their favour it person for new vacancies weather they have technical knowledge about job or not. So this effects the overall efficiency and business of organisation.

Over Staffing:
After scanning the organisation environment it is revealed that over staffing is a major problem being faced by PIA. Where only one person is required, a number of employees have been employed to perform the same task. This has an adverse affect upon budget and results in the raise of expenses.

Poor Controlling system:

As there is political influence over the organisation that directly affects the control system of PIA. Most of the hiring is done by political influence thats why unskilled people are hired which are unable to control the performance of organisation.

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Ethical Issues:
Due to poor control system certain unethical issues have been seen is the organisation like favouritism, corruption, bribery and redtpism arise. Property of PIA is used for personal use by the employees. Promotion is awarded on the basis of favouritism so in this way they are discouraging the skilled and hard working employees. The upper management is directly involved in corruption and lower level management is involved in bribery which has defamed PIA.

Lack of Maintenance:
There is no proper check and balance system for fleet thats why maximum of the fleet go obsolete and at one stage it goes under ground.

Cancellation and long delay of flights:

Due to shortage of fleet to PIA, the ratio of cancellation and long delay of flights is very high due to which passengers have to wait for long time. There is no proper waiting area for passengers which directly disgrace and hurts the customer loyalty.

Mishandling of Luggage:
Luggage of passengers is misplaced due to poor management. Customers suffer from the exchange or even sometimes loss of their luggage.

Financial Crisis:
As PIA is a government organisation, and our government is facing financial crisis due to which availability of funds to PIA is not sufficient. we know that finance is a back bone of any organisation. As PIA is facing financial crisis and it is running out of budget thats why PIA cannot show its performance in a better way.

Low Salaries and Rewards:

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As PIA is getting out of budget, employees are not provided with proper salaries and rewards on their work; which results in the strikes of Pilots and staff members. It is directly affecting the organisation performance.

RECOMMENDATIONS:
PIA must be free of political interference. Politicians should not interfere in the performance of PIA so that it could perform independently. Such policies should be adopted that political interference could be avoided. It should be ensured that only required number of staff should be hired, in order to avoid over staffing. Proper managerial control should be applied so as to remove briber, corruption and other unethical issues. Management should train its front line employees who are in direct contact with customers. Employees should be trained ethically at all managerial levels. So that they can treat their customers in a better way. Selective hiring should be made, ethical highly qualified staff should be posted at place where one deserves to be. Fleet is obsolete and poorly maintained so management should ensure repair and maintenance of fleet after a certain period of time. Cancellation and long delay of flights is one of the biggest problems being faced by the customers so management should not only make an effective flight schedule but also take necessary steps to ensure that schedule is being implemented in a right way. There is also a great mishandling of luggage of customers a policy should be made by management to ensure that customer luggage should not get exchange and he/she should have to wait to receive his/her luggage. Government should increase the budget allocated to PIA so that they can efficiently manage their tasks and improve their output.

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Conclusion:
It is concluded that PIA is one of the best government organisation in our country. It is the only international airline corporation in Pakistan. It is found that PIA is in big crisis due to political interference, poor management, corruption and financial problems. Government is not paying due attention on PIA crisis. PIA has a centralized system of management; all the decisions are made at top level of management without involving employees at lower level, which cause difficulties in employees work. Delegation of authorities and decision making is very less in PIA. Managers in branch offices in PIA cannot take any decision on its own without consulting head office.

NO doubt PIA is still a strong international airline organisation of Pakistan but due to some economic problems and other issues PIA is facing crisis. But we hope that in soon PIA will recover and will be the best international airline.

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Appendix
QUESTIONNAIRES Intro questions:
1. Briefly describe your current position and responsibilities? 2. 3. 4. 5. 6. What do think, a manager job is to place the order only? What are the major stresses and challenges you face on the job? In case of any problem to the organization, how do you overcome the problem? What are the differences between middle level managers and top level manager? What are the skills which are required to be an effective manager? What are they? And how did you acquire them? 7. 8. 9. What have been your biggest mistakes so far? Before taking any decision what do you do? Do you take your subordinates in account? According to your personal experiences, what skills and abilities a manager must have?

Planning:
10. What is your organizations vision & mission? 11. How does your organization set goals? 12. For effective goals how would your organization use S.M.A.R.T guideline? 13. Which type of goals short term goals/ long term goals does your organization set? And why? 14. Does your organization gather performance feedback? 15. Which type of plan does your organization adopt? (Option base or learning base)And why? (Option base plan gives you choices, alternative plans / learning base plans are continuously tested, learning from past and change plan)

16. Why your organization adopted option-base /learning-base planning? 17. What are the time lines for strategic, tactical & operational plans of your Organization?
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(Strategic=starts with setting goals)(Tactical= short time plan. How to use resources) (operational=day to day plans) 18. Describe strategic planning & management process within you Organization? 19. Out of 4 ways, in which way, your organization can set missions? (Targeting, competitors, role model, internal transformation) 20. How your organization uses resources, budget & human force to accomplish specific goals? 21. What kind of difficulties your organization faces while accomplishing special goals? 22. Which kind of management techniques your organization use to develop & carry out tactical plans? 23. Describe the planning process you use (weekly, monthly &quarterly)?

Ethics:
27. How do you make ethical decisions and what is the influence of ethical decision making upon your department? 28. Do you regard ethics an important factor in the process of hiring employees? 28. Do you held any integrity tests to check how ethical the candidate is? 28. What is your organizations ethical code of conduct? 29. What is the most important influence on your organization's ethical behavior at work? 30. Is your top management active in and committed to the company's ethics program? 31. Has it ever happened you made a decision purely on ethical basis and later on paid for that? 32. What do you think who is more responsible and have greater influence for creating a positive organization culture through language and action?

33. What do you think does your organization have some burden of social responsibility also? if so then how much? 34. Do you think your organization is meeting with expectations of society fully by fulfilling your ethical and social responsibility if not then what are the hurdles or problems not to do so? 35. How would you rank your organization how much social responsive your organization is? is it reactive, defensive, accommodative or proactive? 36 .Has your organization any criteria to deal with employees engaged in unethical behavior? Do you punish them or expel them from job?

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39. How will you respond to a situation where you have to make decision against business ethics? What will be your choice, Ethics or profit of your organization? 40. What decisions have you made in your career that you look back and feel you did wrong? What you learned from that?

Environment:
41. How much PIA is affected from its specific environment in past 5 yrs.? (The Customers, Competitors, Suppliers, Industry regulations and Advocacy groups that are unique to an industry and that directly affect how a company does business.) 42. Any political influence on PIA in last 5 yrs, which placed negative impact on working of PIA? 43. What are the Technical innovations in PIA in last 10 yrs.? 44. Have you ever regarded any of your competitors as role model? 45. Have your organisation ever faced resource scarcity? If so then how your organisation handled the situation? 46. Under ever changing international political environment, how you handled such circumstances? 47. What steps your organisation takes in order to maintain strong customer relationships?

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