PIA’s MANAGEMENT

Submitted To:- Madam Humaira

Submitted By:- Amanullah Ch. FA08-BEL-015

Jahanzeb Lateef FA08-BEL-024

Rizwan Ali FA08-BEL-034

Shahid Sarfaraz FA08-BEL-037

Shahzad Jamil FA08-BEL-038

COMSATS
Commission on Science and Technology for Sustainable Development in the
South (PAKISTAN)
 Table of Content
1) Introduction
1.1) Historical Profile ……………………………………………………………...01

1.2) Logos ………………….……………………………………………………………02

1.3) DEPARTMENTS …………………………………………………………………03

2) Organizational Structure
2.1) Flow chart ………………………………………………………………………..04

3) Organizational Strategies
3.1) Corporate Vision………………………………………………….……………05

3.2) Corporate Mission……...…………………………………………………….05

3.3) Corporate Values……...………………………………………………………06

3.4) Major Competitors…….……………………………………………..........07

4) Serving people
4.1) Fleets………..………………………………………………………………........08

4.2) Services…………………………………………………………………………….09

4.3) Revenue Composition……………………………………………………….10

5) SWOT Analysis
5.1) SWOT Analysis-Internal Factor………………………………………….11

5.2) SWOT Analysis-External Factor……………………………..………….12

6) PEST Analysis
6.1) Political / Economical Factors……………………………………………13

6.2) Social / Technological Factors ……………………………………………14

7) Marketing
7.1) Direct Marketing Tools

7.1.1) Personalization………………………………………………..………15

7.2) Brochures

7.2.1) Umrah Made Easier………………………………………………….15

7.2.2) Budget Flight……..…………………………………………………….16

7.2.3) Flexible Fares……………..…………………………………………….16

7.2.4) Free Ticket…………….…………………………………………………17

7.2.5) Discount.....………………………………………………………………17

7.2.6) Speedex Delivers………………………………………………………18

7.2.7) Web Ticketing…………………………………………………………..18

7.2.8) Pick & Drop………………………………………………………………18

7.3) Magazines…………………………………………………………….………….19
 7.4) Newspaper Advertisement……………………………….…………..….20

8) RECRUITMENT AND SELECTION

PROCEDURES
8.1) Eligibility
Criteria..................................................................21
8.2) Selection Procedure.............................................................22

9) Compensation……………………………………………………….24
10) Recommendations
10.1) Decentralization……………………………………………………………….28

10.2) Strategic Business Unit……………………………………………………..28

10.3) Employee Empowerment………………………………………………….29

10.4) Overhead Costs…………………………………………………………………29

10.5) Two Way Communication…………………………………………………30

 Historical Profile
A National airline operating Passenger and Cargo services.
 It is the 16th largest airline in Asia
 Covering Eighty-two Domestic and Foreign destinations.
 Established in 1955, having vast experience in the airline
industry of Pakistan with a large fleet of aircrafts.
 The fleet size is forty-three. 
 A huge Corporation with 18,043 Employees.
 Main bases are
 Jinnah International Airport, Karachi,
 The Allama Iqbal International Airport,
 Lahore and the Islamabad International Airport,
Islamabad/Rawalpindi.
 Secondary bases,
 Peshawar International Airport,
 Faisalabad International Airport,
 Quetta International Airport and
 Multan International Airport
01
 LOGOS

1960s Logo

02
 DEPARTMENTS
 The departments include:
 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

03
Organizational Structure

04
 Corporate Vision
To be a World Class Airline exceeding Customer
Expectations through Dedicated Employees Committed
to Excellence.

Corporate Mission
As a Symbol of National Pride, We Aspire to be a Choice
Airline, Operating Profitably on Modern Commercial
concepts and Capable of Competing with the Best in the
International as well as Domestic markets.

05
 Corporate Values
• Customer Expectations
(Convenience, Care and Competitive tariff)
• Service
(Personalized and Courteous)
• Innovation
(Cherishing new ideas, translating into actions)
• Reliability
(Loyalty and Consistency)
• Safety
(Passengers, Employees, Environment and Health)
• Cohesiveness
(Respect for individuals, Team Work and Effective
Communication)
• Integrity
(Business Ethics, Accountability and Transparency)
06
Major Competitors
 07

Fleet
Pakistan International Airlines fleet includes the following
aircraft (as of November 2009)
Type Numbers
Airbus A310-300 12
ATR 42-500 7
Boeing 737-300 6
Boeing 747-200 1
Boeing 747-300 5
Boeing 777-200ER 4
Boeing 777-200LR 2
Boeing 777-300ER 3
Total 40
08
 Services
• Business class
It’s the only Business Class service that feels like First
Class

 Economy class
It make you feel that every class provides comfort
Revenue Composition
 10

SWOT Analysis
1. SWOT Analysis-Internal Factor

 Strengths
 Leading Market Position
 Brand Recognition
 Superior Operating Structure
 Network Presence
 Hub airport at Karachi
 Weakness
 Formulation of Govt. Rules
 High dependence on Passenger Revenues
 Debt
 Reliance on Oil Prices
 11

2. SWOT Analysis-External Factor

 Opportunities
 Having the maximum route and fleet
 Growing demand for low cost airlines
 Customer loyalty
 Shifting customer needs
 Industry Recovery
 Threats
 High Interest Rates
 Accidents
 Strong Competition by Air-blue
 Interest and foreign currency exchange rates
 Decline in airline industry
12
 PEST Analysis

 Political Factors
 Increased Competition
(Deregulation of airline industry)
 Political Stability
 Increased Investment Opportunity
 Economical Factors
 Improved Purchasing Power
 Demand Value-for-Money
 Soaring Oil Prices
 Reduced Ticket Prices

13
 Social Factors
 Greater Customer Awareness
 Increased Entertainment Spending
 Technology Averse Customers
 Technological Factors
 In-flight Entertainment
 E-ticketing
 Automated (Self) Check-in
 SMS Services

14
 Marketing
Direct Marketing Tools
Personalization
We are setting up a plan to boost up our long term
association to put into practice “The concept of
personalization.”

Brochures

1. UMRAH MADE EASIER

 Pilgrims can now enjoy comfortable and luxurious
journey in Boeing-777s
 These additional flights will not only provide more
travel options to Umrah Pilgrims but will also enable
more people to perform the holy ritual.
 PIA offers more flights to Jeddah in May, June and July
for Umrah

15
2. PIA 'Budget Flight' - Enjoy up to 39% discount on
regular fares
 PIA introduces Budget Flight between Karachi, Lahore,
and Islamabad.
 Fly PIA's new ATR
 Up to 10kg hand baggage allowed
 No checked-in baggage 
 Condition apply
3. PIA Flexible Fares - Plan Ahead & Pay Less
 Book International or Domestic flights as early as
possible because the earlier you buy, the cheaper you
fly.
 A variety of discounts in Business, Economy Plus, &
Economy Classes.
 The benefit of even lower fares in the lean travel
period.
 Flexible Fares are applicable on sectors where Revenue
Management is implemented.
 Conditions apply
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4. Fly Business Class with a Free Ticket
 Buy three tickets and get one FREE
 Buy one ticket and pay ONLY 50% for your companion
 The offer is available on International routes only
 This offer is not available on UK, USA & Canada sectors
 This facility is only valid for the sectors where RM is not
implemented

5. Discount to Students on International and Domestic

Sectors
 25% discount offered to students on Domestic routes.
 10% discount on International routes is valid only on
the routes where RM is not implemented
 Offer can be availed exclusively from PIA Booking
Offices or the PIA counters at the airport.
 The offer is available only for Economy Class passengers

17
6. PIA Speedex Delivers With Speed, Reliability, and
Affordability
 PIA Speedex delivers documents and parcels to your
doorstep, with a vast domestic network, cutting-edge
technology, and the highest standards of customer
service.
 PIA Speedex offers a range of flexible delivery options
to suit your budget and your needs.
 Same Day Speed
 Overnight Speed
 Second Day Speed
 Seasonal Products (New)
7. Click 'n' Fly with PIA Web Ticketing
 Secure online credit card transaction
  Convenient accessibility from home or office
 Save Rs.300 per ticket
8. Free Pick & Drop Service
 PIA now offers the free pick and drop service from your
door to airport.
 This offer will be offer only for Business class.
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 Magazines
PIA will give advertisement in different magazines once after
two month with a coupon of 15% off in the following
magazines.
 Times Magazines
 Spider
 Arora

19
Newspaper Advertisement

20
RECRUITMENT AND SELECTION
PROCEDURES
Applications are invited on the prescribed Form available
(free of cost) in PIA Recruitment & Placement Office at
Karachi and in PIA Offices at other stations and also on PIA
website. www.piac.com.pk. Vacancies are announced on all
the local news paper and the PIA official website.

Eligibility Criteria
1) Qualification
The qualification that is compulsory for applying in PIA is
started from intermediate degree and end up at to graduate
degree and this very from job to job. As one of the
employees Amir told us in his interview. “PIA have dropped
the required level of education from a graduate degree to
an intermediate degree”
2) Age Requirement
Requirement for the age is also very from post to post and
its most probably depend upon the experience required for
a specific job. But generally the age requirement for PIA is
ranging from 19 to 24. “The age barrier has also shifted
upwards, meaning that a candidate must be a minimum of
19 years old and a maximum of 24,” said Mr. Amir

21
3) Physical Requirement
Physical requirement for the candidate of PIA is also differ
from gender to gender. The minimum required height is 5
feet, 6 inches for men and 5 feet, 2 inches for women, with
proportionate weight.
SELECTION PROCEDURE
Candidates want to join PIA are go through a strict selection
procedure before being allowed to become the part of the
PIA. Normally three types of the tests are conducted by PIA
for selecting a candidate. Following are the tests that are
conducted
1) Physical Test Physical test is considered the first
selection test in which the interviewer determines that
either candidate is full filling the physical requirement for
the job or not. “Their skin quality, height and weight are
noted in the first interview session,” said PIA Jawad
Mansoor
2) Grooming Test If candidate selected in the first
interview, the hopefuls take a grooming test. Here, men and
women present themselves in a manner, both physical and
behavioral, befitting the job while women’s make-up skills
are also checked.
3) General Test Once the grooming test is cleared, the
candidates’ general knowledge is tested in written and oral
tests. These tests are some times based on brainstorming.
22
Now days this selection tests are administered by NTS. The
selected candidates attend an intensive three to four week
training course which is organized by the airline since there
are currently no institutes in Pakistan offering training
courses for flight attendants. During this period, the
selected candidates are trained to handle emergency
situations such as evacuation and hijacking. They are also
given basic training in first aid and are taught to deal with
problematic passengers.

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 COMPENSATION
PIA believes that they can use compensation as a key tool to
recruit and train employees, increase and maintain
morale/satisfaction, reward and encourage peak
performances, achieve external and internal equity, reduce
turnover, and modify practices of unions.
According to the Interview conducted, PIA employee
believes that compensation and retention of employees is a
common goal shared by everyone. Morale and job
satisfaction are affected by compensation. In an attempt to
save money, employers may opt to freeze salaries or salary
levels at the expense of satisfaction and morale. Conversely,
an employer wishing to reduce employee turnover may seek
to increase salaries and salary levels. He also added that
compensation may also be used as a reward for exceptional
job performance. Examples of such plans by PIA includes:
bonuses, commissions, stock, and profit sharing, gain
sharing. We do have a clear picture of the compensation
components that our PIA organization has discussed in
many meetings yet we have to consider their full
implementations with time. These include
 Job description
 Job analysis
 Job evaluations
 Pay structures
 Salary survey
 24
A critical component of both compensation and selection
systems, job descriptions define in writing the
responsibilities, requirements, functions, duties, location,
environment, conditions, and other aspects of jobs.
Descriptions may be developed for jobs individually or for
entire job families. Job analysis techniques include the use
of interviews, questionnaires, and observation. A system for
comparing jobs for the purpose of determining appropriate
compensation levels for individual jobs or job elements.
There are four main techniques: Ranking, Classification,
Factor Comparison, and Point Method. Useful for
standardizing compensation practices. Most pay structures
include several grades with each grade containing a
minimum salary/wage and either step increments or grade
range. Step increments are common with union positions
where the pay for each job is pre-determined through
collective bargaining. Collections of salary and market data.
May include average salaries, inflation indicators, cost of
living indicators, salary budget averages. Companies may
purchase results of surveys conducted by survey vendors or
may conduct their own salary surveys. When purchasing the
results of salary surveys conducted by other vendors, note
that surveys may be conducted within a specific industry or
across industries as well as within one geographical region
or across different geographical regions. Know which
industry or geographic location the salary results pertain to
before comparing the results to your company.
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 As said by one of the employee;
“Principles of Compensation Discussed Compensation will
be perceived as fair if it is comprised of a system of
components developed to maintain internal and external
equity.

After questioning about the types of compensations the PIA

employees are getting, one person replied that we do know
many types of compensation aspects but those we receive
include:
 Base Pay
 Commissions
 Overtime Pay
 Bonuses, Profit Sharing, Merit Pay
 Stock Options
 Travel/Meal/Housing Allowance
 Benefits including: dental, insurance, medical, vacation,
leaves, retirement, taxes...

PIA follows a proper compensation plan for its employees by

having a proper outline of the budget, target and the
objectives to be met. It than design the compensation
program including: whether the position will be permanent
or temporary, who will oversea the program once it is
established, and the cost of consultant reviews. The
compensation philosophy is also considered essential part
of PIA compensation programs. It defines the pay structures
for all level of employees and whether to set pays above or
below market level. PIA holds a proper job analysis of all
employee levels; and evaluates jobs on the basis of above
mentioned results. Jobs are ranked and the grades are
determined; resulting in a appropriate salary structures and
compensation objectives. The program is then monitored
through feedback from managers. If their exist any flaw, it
gets revised by the good authorities of PIA.

27
 Recommendations
1. DECENTRALIZATION:
 Autocratic Style to be changed to Participative
Leadership.
 Minimal Delegation of authority to be Maximized.
 Easy Management
 Increased Motivation
 Easy Access to information and Resolution to the
Conflicts.
2. STRATEGIC BUSINESS UNIT
 PIA should make its different departments into
Strategic Business Unit
 Every SBU should have a defined business strategy
and a manager with sales and profit responsibility
(a) Factors should be determined for the success of SBUs
 The degree of autonomy to each SBU manager
 The degree to which an SBU shares functional
programs and facilities with other SBU's
 The manner in which the corporation evaluates
and rewards the performance of its SBU managers

28
3. EMPLOYEE EMPOWERMENT:

 Empowering the employees would lead to More

Employee Participation in the Decision Making
Process
 More Employee Satisfaction
 Enhanced motivation
 More Independent Employees in discussing the
issues Explicitly without Hesitation
 Quality team and Cross-functional teams
 More Commitment and Dedication

4. OVERHEAD COSTS:
 PIA should also reduce its overhead costs that are
it should mange its resources: labor more
effectively.
 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.
29
5. Two-Way Communication:
 Top-down approach should be replaced with two-way
communications
 The employees would feel motivated and valued as
they would be included in decision-making.

30