CHAPTER #6

HUMAN RESORUCE MANAGEMENT AT PIAC ISLAMABAD/RAWALPINDI

My experience and Observation at PIA Rawalpindi
My internship was in Finance section but I got the opportunity at PIA Rawalpindi to understand Human Resource Management department and got good information at the station and for that I am very much thankful to Mr. S.A Mujtaba H. Naqvi Human Resource Manager Rawalpindi/ Islamabad. He gave me good information and guided me about the organizations structure and administrative setup. It was indeed a very good experience to get HR management information. Other than finance department it helped me a lot to understand organizational setup and how to work in a corporation. I have included that chapter in my internship report as it gives a more clear picture of Pakistan International Airlines administrative setup and its function.

6.1 Administration Department in PIA

Every organization has a personnel function whether or not a specific personnel manager has been so designated. Every organization must hire, train, pay, motivate, maintain and ultimately separate employees. Organization has its peculiar administrate structure, which suits the functions, objectives, strategies and rules and procedure of that organization Administration is the collective activity directed towards the attainment of a specific goal. It is rational action, an attempt to maximize ones goals by relating means to ends. Administration is one of our most complex and challenging fields of endeavor. The administration manager must be greatly concerned with the expectations of both employees and society in general. Society at large proclaimed its human resources to have vital needs that move beyond a Work force status. The employee is simultaneously an instrument of the firm, and human being and a citizen ends. The Pakistan International Airlines has an administration department, which involves the organization and management of man and material in order to accomplish its goals, the administration department is headed by a manager, where as the head of the overall administration is G.M. of the region and at the are level by an Area Ahead . The Administration Manager is directly under the control of G.M. of the respective region.

6.2

Administration Department At Rawalpindi Station

The Administration section at the Rawalpindi Station headed by the Administration Manager comprises of an Administration office and three Admin. Supervisors. The activities of Administration department include the personnel and human relations, security arrangement, transportation, stationary, filing and record keeping, discipline in the organization, development and maintenance of support systems for the successful operations and the coordination of the activities of various departments. The communications of various decisions, polices, plans and strategies to the various departments is the responsibility of the administration. The administration department in PIA is concerned with the following functions Organization The administration department in the form of organization of rules, procedures, functions and human resources carries out the structuring of individuals and functions in to make productive relationship.

Management of Human Resources The Administration department in PIA manages the personnel and is concerned with the direction of these individuals and function to achieve ends previously determined. Methods and Procedure The techniques and process of working and the interrelationships of various functions are determined by the Administration Department in PIA. Materials and Supply The Administration department of PIA provides the tools and requirements with the help of which the operational work is carried out. These include Pen & Ink, Computer, papers, files, cabin, furniture, air-conditioner, and etc. these materials and supply are maintained by the PIA Administration Department. Administrative Accountability The administration department in PIA also carry out the investigations and inquiries of any officer employee violation the rules and regulations, indiscipline and misuse of his authority etc. Maintenance and Security of the Organizational Environment The arrangements for infrastructure like offices support services, and the administration department maintains physical facilities for the human resources. The security of the offices, building, furniture and fixtures and supplies etc is ensured by the administration of PIA through the maintenance of security staff: Co-ordination and Communication between Various Dept The uninterrupted communication and the maintenance of the means of proper co-ordination between the employees, management, rules and procedures and functions of different departments. Administrative Procedure

The administration is required to follow a definite setup specific procedure. Prof. Waldo defines procedure as, the prescribed or customary way of working together with the conduct of an organization business. It is the procedure that governs the internal and external relationship between one individual and another, between one organizational unit and another; between one process and another, between all combinations and permutations of these. The administrative procedures in PIA are classified as Institutional and working procedures.

Institutional Procedures The Institutional procedures pertain to staff service and auxiliary functions. The Institutional procedures in PIA include mail and communication, meeting and conferences, internal reporting, preparation, issuance and distribution of documents, space library services, files and records, procurement, budgetary and fiscal administration. Working Procedures The working procedures in PIA include matters like general functions and powers of the committees, eligibility for membership and appointment of members, committee officers and finance, meeting and recommendations.
6.3 OFFICE PROCEDURES:

The entire corporations actives, in spite of the modern means of communications like telephone, fax, e-mail and telex etc is conducted by writing. The administrative procedure, which is followed from the managing director to the clerk. It is collected in a form Office Procedure Manual. The office procedure starts working, when some letter or application reaches from outside i.e. either from the Head Office or any other sister department. The letter is entered into a registered for the receipt number is put on that. The clerk or assistant sends the letter/hand over the letter to the concerned officer, which after being seem by the section head is processed and put to the officer or department, which has to take the action. The communication meant for the administration department is filed in the department. The manager passes on the letters, if meant for the approval of higher authority like G.M. or the Managing Director of the concerned department who further forward the letters to the Managing Director and Chairman if important policy decisions are involved. There is no way to deny the fact that in between the receipt clerk and the managing director, there might be many coming-backs and going ups. Each officer would add his own note, memorandum or minute. Old records would be looked into, precedents would be discovered and information from various sources would be gathered. The case may require consultation or discussion with another section, department, ministry, provincial government or even a foreign government or even private associations, groups or individual at the appropriate level. Thus the file by this time becomes the file or correspondence, notes, minutes, minutes and memoranda. At last, a stage of decision reaches. There after, there begins a final downward journey of the file. Ultimately the file reaches the officer or assistant, who dispatches the draft to

the typist. The typist type the draft, who sends it to the officer or. Assistant Manager, who examines the draft and correct it, if any discrepancies / errors found. If not the letter is passed on to the manager for signature. a)

b)

File System: The entire office procedure revolves around the filing system. In the office terminology, it connotes a device for holding papers for reference. All papers are kept in two categories wise, notes and correspondence comprises all communications received and office copies of out going communications. They are arranged chronologically those reaching first, kept at the bottom. All communications are assigned reference No. The material collected for the sake of understanding is given in the appendix of correspondence. The whole set is then placed in a large folder with a folio-sized cardboard. This makes a file all files are registered I the file register. Record Keeping: Recording means, the process of closing a file after action on all the issues after action on all issues under consideration are completed. When action on a file is taken, it comes back to the assistant, who with the approval of the officer classified the file as class A, Class, B and Class C. After the classification of file, the assistant sends the file to the indexing clerk who indexes them. A file number is given to each file. These files are filed vertically standing in the cabinets of each department. Records are kept for three years after which they may be discarded. The administration section performs all the routine matters of administration like leave and passage. Maintenance and updating personal records of employees is also done by the admin. Section. The Admin. Manager along with his staff is responsible for the implementation and communication of all administrative order issued by the Head Office. Such order is issued from time-to-time, because of changes in existing rules or due to the absence of rules. As the General Services Department is not present at the Rawalpindi station, so all their activities are performed by the Admin Section e.g. janitorial works and medical activities etc. carries out the employment activities as advised by the employment section of the Head Office and also supervise the local transfer of the employer. The Admin. Section also takes disciplinary action against accused employees after an enquire has been carried out by it. The Admin. Section arranges the local training Programme of the employees and co-ordination meetings among various departments. All the matters pertaining to the employees are dealt with by this section e.g. checking the monthly attendance of the employees, awarding cash rewards, issuance of tickets to PIAs employees and their families, maternity leave, education, EDH (Executive Dining Hall) coupons etc. It also deals with all the law cases Vs. PIA and lease agreements with outside parties.

6.4

Manager Administration:
The principal coordinator at the area or station level is the Admin Manager he is responsible to implement all the instruction of G.M. All the matters of the

administrative nature are routed through the admin manager for onward submission to the Head office and top management.

Specific Duties/responsibilities of Administrative manager: 1. For his administrate functions the Admin. Manager is directly responsible to the General Manager. 2. He helps the General Manager to perform his administrative functions too. 3. He takes all the disciplinary actions against the employees and has the power to demote any employee according to the rules. 4. He does granting leave of the employee. 5. All local transfer are done by him. 6. All the admin, orders, circulars, officer orders came through him and are implemented accordingly. All jurisdictions. 7. The Admin does approval of the medical bills of the employees. Manager according to the medical rules and are then sent to the finance section for payment. 8. Liaison with staff canteen committee for any conflicts. 9. The Admin. Manager issues tickets to the military personnel and recovers payments from their concerned department. 10. He deals with all legal cases on behalf of PIA courts including accidental claims cases from PIA. 11. He also deals with all those parties who have hired the PIAs buildings or from whom PIA has hired their buildings.

Administration officer
1. 2. 3. 4. 5. 6. 7. 8. 9. Function of the Administrative Officer: Supervises the admin. Office and reports of the admin. Manager on policy matters. Implements all disciplinary / administrative measures as advised by the management. Supervises and keeps the personal record of the employees regarding leave, passage security passes etc. Circulates or communicates all admin. Orders, circular, organization orders, received from head office / management to the concern section. Keeps correspondence with local agencies / head office regarding the matters which falls under the jurisdiction of admin. Officer. Keeps and supervises the attendance / overtime statements for submission to the concerned section. Controls the inventory list of the admin. Section. He also does processing the cases of employees recruited by PIAs employment section at the heed office. Establishes the welfare activities of the employees.

Administration Supervisors:

The function of the administrative Supervisors is 1. 2. 3. 4. 5. 6. 7. 8. 9. Handles and maintains all the personal file cases, leave and passage files of all employees of Rawalpindi station and whole territory which is under the jurisdiction of G.M Rawalpindi Maintains register and correspondence pertaining to mileage allowance of GM, PSM, CSM, SPOs and all other officers at booking office. Prepares attendance, overtime and other related statements for submission head office. Prepares and types attendance statements of GM Secretary, Admin. Section Motor Transport, Cargo, Reservation, communication and works and sends it to the pay role section. Maintains and issues medical cards and identity cards to the employees. Maintains budge control register of Marketing, Admin. Canteen mosque Liaises out any function assigned by G.M and Admin. Manager. Receives, collects and checks all medical bills from employees on daily basis and makes entries of medical expenses in register and submits the bills to the finance section for payment. Makes/Photostats of required official documents.

Personnel Officer: To perform the work of the corporation the personnel officer has the following function: 1. Keep and supervise the personal record of the employees regarding leave, passage, and security passes. 2. Process the cases of the people recruited by PIAs employment section of Head Office. 3. Supervise the personnel officer and report to the manager Administration of policy matters. 4. Have correspondence with local offices/Head Office regarding the matters, which fall under the jurisdiction of the personnel office. 5. Distribute all important material such as administration orders, circular, organizational orders received from head office/ management to the concerned sections. 6. Implement all disciplinary / administrative measures as advised by the management. 7. Supervise the attendance, over time statements for submission to the concerned sections and also control the inventory list of the administration.

Personnel Function of the Administration Department: The principles governing the building up of an administrative structure are important but a structure unless properly manned, remains a dead weight. All the

personnel and human relations functions are assigned to the Admin... depth in PIAC. The Administration Department performs the following functions with the consultation of Head Office. Important Function of the Administration Departments: In a large and complex organization, efficiency can only be achieved and maintained by a continuous and conscious effort of leadership and direction form senior officer. It is sufficient merely to have good methods and clear instructions. As in many other spheres of activities, the great problem is the human one and the greatest need is to recruit and train those who are likely to be the leaders of the future.

6.5

Recruitment and Selection:

Recruitment is the discovery of the potential applicants for actual or anticipated positions. The vacancies are created after the approval of the finance department. The PIA recruitment and selection procedures involve the following:

i)

Recruitment Policy: The recruitment policy given the following conditions for recruitment: The age limits for the recruits are between 18-26 The educational qualifications of the employee.

Officers (Executive Category) Master Degree /MBA/MPA /BBA(honors)

(Any recognized University by Federal Govt.) Assistant Officers/below Category Matriculation to B.A./B.Sc ii) Sources of Recruitment: Whenever a vacant position is available, the head of department make reviews of the existing personnel and carry out a search within the organization for suitable persons before trying the outside sources. But if a person with the required qualifications for a given job is not available, fresh recruitment is made. iii) Techniques of Recruitment: The vacant posts are advertised through the local and national newspapers and applications are invited with the job specification and description showing the job requirements and eligibility.

iv)

Selection Procedure: The selection process is concerned with the securing relevant information regarding the applicant. The selection procedure uses the screening devices so that the most efficient and professional employees should be available to the organization. The selection procedure in PIAC is based upon three important principles, namely: I. Competence II. Equality of Opportunities III. Neutrality The following screening devices are used in the PIAC during the selection process.

a)

b)

c)

d)

e)

f)

g)

Application Blank: Each applicant blank provided by the Admin. Department. The application form has to be filled by the applicant in his own handwriting submitted to the admin dept before a specific date. The format of the application blank is given in the appendix. In the application, the personal data, educational qualifications and experience etc. of the applicant is give. Test: These applications are scrutinized and the candidates passing through the security are called for a written test. The test s conducted by a Board from the Head Office with the assistance of the Administration department at the concerned stations. Interview: Those qualifying the written test are called for an interview administered by the selection board assisted by the administration department. Physical Examination: There is usually a formal physical examination of the candidates. Another requirement is the submission of a formal Medical Fitness Certificate from a doctor. Approval by the Competent Authority: After going through the whole process of selection, the list of recommended applicants is sent to the competent authority for approval. Offer of Appointment: After the approval, the Administration Department notifies the decision to the candidates through a letter of appointment. Orientation Period:

h)

After appointment, the employees go through an orientation period i.e. Probation, for MBA/MPA/BBA/BPA (honors) as executive the period is 5 weeks. And for employees of under-officer class, the period is 3-6 months. Confirmation: After successful completion of the orientation period, the employees apply for confirmation to a competent authority.

6.6 B)

OTHER HUMAN RESOURCE MANAGEMETN FUNCTIONS PROMOTION/TRANSFER: A promotion is an upward advancement in the organization to a position, which commands higher opportunities, greater authority, better service conditions and a higher rank. All the promotions in PIAC are made on the basis of merit of each case, and not by the virtue of seniority alone. Transfer to different jobs either to fill definite vacancies or to perform assignments to develop individual are made. The Head office in accordance with the promotion makes promotion and transfer to all categories and grades and transfer polices of PIAC. The Admin department helps in co-ordination these activities of transfer and promotions. RETIREMENT/PENSIONS: The age of retirement is completion of 25 year of service or attaining the age of sixty unless they are otherwise not fit for wok and the employee can opt for pension. Records of these employee are maintained by the Admin, department, which after the retirement of the employees is sealed and stored. CONTROL Admin department exercises control by two ways upon the activities of various departments and employees. These are through internal and external auditing and controlled budgeting. LEAVE Leave is temporary absence from duty. All application for leave is addressed to the admin manager through proper channel. An employee cannot claim leave ad a matter of right and the competent authority at its discretion may refuse of revoke any kind of leave. Leaves are applied fro and sanctioned in the terms of days. The following types of leaves provision occur in PIAC.

C)

D)

E)

i.

ii.

iii. iv.

v.

F)

G)

a.

Casual Leave All employees are entitled to 10 days of causal leave in a calendar year. The maximum number of casual leaves at a time is 3 days. Privileged Leave Privilege leave may be on the following terms, Fully Pay: The maximum period of leave on full pay, granted at one time is 30 days for service less than 10 years, 35 days for service over 10 year in a year. The fifteen days of this leave are to be availed otherwise collapsed. Sick leave Sick leaves may be granted up to a maximum of 12 days to an employee. Disability leave Disability lave may be granted up to a maximum of 180 days to a person, disabled by injury, ailment or disease occurred in the course or in consequence of duty or on official position. Ex. Pakistan leave Leaves without pay may be granted to employees, who proceed to abroad during the leave for a period of one week to 3 years. PASSAGES The passages or free ticket are given to the employees by the Admin Department maintaining its records. TRAINING Accordion to Gallbraith, We can get the larger part of our output not form more capital investment but from investments brought about by improvement. PIAC has its own training center, known as PTC, under the control of the administration department. It includes. On the job training On the job training is given to employees already existing in PIAC. It is given to employee to update the employees knowledge of various procedures, methods, rules and regulation etc. and familiarize the employees with the changes and advancements taking place from time to time. One of the methods of no-the-job training includes job rotation. Job Rotation As an important method of training, it enables the employees to work at different positions and get an overall picture of the working of PIAC. Pre-Job training

i.

ii.

The pre-job training is imparted to the various categories of employees before they join the organization and assume responsibility. The pre-job training to the flight stewards and hostesses for specific period. 6.7 THE PIA TRAINING CENTRE The PIA raining center at Karachi is possible the only airline training establishment where comprehensive instruction in all major field is given under one roof. PIA has been training its pilots, mechanics, technicians, traffic / sales staff and cabin crew since 1956, but it wasnt until 1960 that all training facilities were amalgamated at one centralized place and expended to train personnel in all fields of the airline. In October 1975, the training center moved to its new three stories specious premises near the Head Office where it has been able to add more attaching aids. Training facilities available within the airline also include flight Simulators for basic and recurrent training of pilots and other operational crew. In 1992, PIA introduced computer based training (CBT) facility; containing courses are for specific aircraft for training its engineering cabin and cockpit crew. Courses are conducted according to the requirements of the industry and the standards laid down by the civil aviation authority (CAA) of the United States and the international Civil aviation organization (ICAO) al courses are also approved by the Civil Aviation Authority of Pakistan. Deferent courses and training facilities are also offered to public and private sector organization and individuals within Pakistan. Basic and advanced raining facilities are also provided to foreign carriers, and courses in specialized fields are conducted at the center as well as location abroad. Over 40 airlines from Asia, Africa and Europe have used their facilities for the training of their pilots, maintenance engineers and other disciplines. The total number of such trainees exceeds 6,000. Training is also being conducted for African of scholarships granted by the ministry of foreign affairs, Government of Pakistan. In 1994, PIA training center introduced advanced course in Quality management TQM and ISO-9000 certification. It is planned to develop PTC to receive an ISO-9000 certification in the next one-year. PIA training center was first selected to conduct civil air transport course for developing countries on behalf of government of Pakistan in collaboration with Japan international co-operation agency (JICA) in 1988. PIA has so far conducted eight such courses, in which senior airline and civil aviation officials of 30 countries have participated. In April, 1995 PIA and JICA concluded an agreement to conduct another five such courses in the field of civil air transport management. BENEFITS AND ALLOWANCES

H)

The primary goal of the fringe benefits is to retain the employees in the organization on a long-term basis. These benefits include medical facilities, transport facilities car allowance house rent allowance etc. all data about the fringe benefits and allowances are recorded in the personal file of the employees and are maintained by the administration dept.

I)

SALARY Salary and pay scales of an organization is a test of attracting professionals and efficient manpower towards the organization and are also a means to retain them. The admin dept. maintains pay records of employees categorized into different pay groups according tot eh salary structure it includes:

Pay group I-IV

:It includes the Unionized Staff Includes the officers and middle level management

Pay Group V-IX:

Pay Group X-Above:It includes G.M; and other higher executives A special pay group is for the managing director, director and pilots. J) PERFORMANCE APPRAISAL Performance appraisal is the systematic evaluation of individuals with respect to their performance on the job and their potential for development. In PIAC, the evaluation is made by each person immediate officer, and this rating is in turn reviewed by his superior. Thus their superiors also evaluate all the people who appraise others. The annual credit report (ACR) is made of every employee at end of the year in view of the evaluation and appraisal given by the department head. K) EMPLOYEES RECORD The administration is also required to maintain an up-to-date record of all the employees of PIAC. For this a personal number (P.No) is issued to every employee, a file of his is maintained containing the following particulars. Personal data Qualification Experience Promotions Pay Any other information Dummy Recorded Dummy record is maintained for all employees as well as the out-station by the admin. Dept that are the duplicate of the actual records maintained at the head

L)

M)

N)

O)

a.

b.

office. Microfilms of these records are maintained to avoid loss in case of damage or misplacement of the written records. DISCIPLINE / PENALTIES If any violation of the rules and regulation, procedure and misuse of authority and function on the part of an employee takes place, the administration department asks for a show cause and explanation through the show cause notice. If found unsatisfactory. Inquiry is carried out, and if found guilty penalties are given which may include. Decrease in pay Demotion Discharge Suspension Dismissal GOLDEN HAND SHAKE The present government has intimated golden handshake. The administration depts. also carry out this scheme according to a prescribed policy. CAREER DEVELOPMENT Establishment of various career channels for the development of the employees is also the function of the admin, dept. Manpower Planning The process by which the management determines and assures that the organization will have an adequate number of qualified person available at the proper times, performing jobs, which meets the needs of the organization and which provides satisfaction for the individuals involved the administration department plan for the manpower requirements of various depts. And keeps the most appropriate number of employees in various depts. Human Resource budget Different departments analyses working loads of the employees and according to it, a budget is made and the work load of these departments are maintained as per the budget, through new induction transfers etc. Human Resource Management Human resource management is to utilize the human resource according to the requirement. The Pakistan international Airlines has the basic objective of Utilization of human resources To properly train them as to get an optimal level. Legal Matters

PIAC has a legal division, supervised and operated by the admin. Dept. matters relating to rules and regulations. By laws and state and international laws are dealt with by this division. Security The security division of the PIAC has a very important role. It provides safety and security to the infrastructure, operations, assets and fixtures and documents etc. It also ensures the security of the personnel of the PIAC. Industrial Relations Industrial relations refer to a dynamic and developing concept, which is not limited to a complex of relations between trade Unions and management but also refer to the general network of relationships normally obtained between employees and employees. It is considered very important for any industrial / service organization to have maximum satisfied employees. A workable atmosphere can only be assured through participative management in an organization, the administration department advises the management on the existing labor laws and ensures the strict adherence to it. It plays the role of mediator between the management and the employees union in case of any deputes between the management it maintains cordial and harmonious atmosphere in the organization. According to the industrial relation ordinance 1969, 50 or more than 50 employees are permitted to form a union. In case of more than one union election are held to elect labor leaders under the national industrial relations commission (NIRG). In case of any disputes between the management and the labor, both condole NIRC. In PIA a referendum is held under 22 and 23-IRO. At the head office there is a CBA, while at the station level, it is a local chapter. 6.8 CBA (Collective Bargaining Agent) CBA being the representative of the employees, put their demands to management, which is called the charter of demand. In case of any dispute, the management and CBA negotiate of rainy settlement. The CBA ash the director access to the mange mint i.e. G.M. or admin manager in case of any problem. If the demands of the CBA are approved then minutes are issued by the admin. dept. and are approved G.M. or IRO action. Rules for CBA Any employee of pay-group I-IV can compete for CBA. At the same time, he is the regular employee and has to abide by the rules and regulation. The CBA tenure is 2 years. PIASSA: PIA senior staff association

1. 2. 3. 4. 5.

Industrial relation officer (IRO) In every department there is an IRO to maintain cordial relations between management and Union Duties and Responsibilities of the IRO To advise the department Head/G.M/Sectional Heads / officer on the provision of labor laws which are applicable in their areas of activity. To regulate staff interviews with the department heads of resolving employees grievances. To assist line management in maintaining congenial and harmonious atmosphere in the pursuits of managements directives and policies. To carryout regular inspections and submit reports on specified proofreads to highlight, whether breach of any applicable laws is involved and take remedial action. To keep contact with all the employees at all levels in the department to know their reactions / feelings of management policies and decision taken from time to time and keep the department authorities and industrial division informed of the same, LEADERSHIP STYLE Leading is the process of influencing others to accomplish specified objective. It consists of interpersonal influence, exercised in a situation and directed by means of communication process towards the attainment of a specified goal or goals. The leader of a department section or the whole organization has the dual objective, representing the interests, objectives and functions of the management and achievement of organizational goals and objectives and getting subordinates to work for the attainment of theses goals, and the safeguarding of the interests of he subordinates against the higher management. The leadership style means, the behavior of the leaders what he or she does what he or she emphasizes, and how he or she deals with subordinates, in PIA, the leadership styles is autocratic, who tend to make unilateral decisions, dictate work methods. Limit workers knowledge about goals to just the next step to be performed and some time given feed back that is punitive. In PIAC, the employees have very little say in decision making and no participative management is involved in the policy formulation. Here we must point out the exception that sometimes the CBAS influences the decision making through their coercive power.