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PAKISTAN INTERNATIONAL

AIRLINE
INTERNSHIP PROGRESS REPORT

SUBMITTED BY:
HAFIZ MIRZA MINHAJ BAIG
ROLL NO 28
MBA-HRM (4TH SEMESTER)
SESSION: 2013-16
Date: 13-08-2015

SUBMITTED TO:
DR. IMRAN HANIF
INTERNSHIP COORDINATOR
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Institute of banking and Finance Pakistan

International Airline
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TABLE OF CONTENT
1. Human Resource Department at PIA Multan........................................................4
2. HR planning at PIA Multan.................................................................................... 4
Recruitment and Selection at PIA Multan................................................................5
Orientation function at PIA Multan..........................................................................5
Training & Development function at PIA Multan......................................................5
Employee development at PIA Multan.....................................................................5
Compensation & Benefits for workers at PIA Multan...............................................6
Rewards and Benefits.............................................................................................. 6
Performance Appraisal............................................................................................ 6
3. Marketing department at PIA............................................................................... 7
Approval of Agent.................................................................................................... 7
Agent of PIA............................................................................................................. 7
Passenger market planning..................................................................................... 7
Schedules hajj and charter planning.......................................................................8
4. Organogram:........................................................................................................ 8

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1.HUMAN RESOURCE DEPARTMENT AT PIA


MULTAN
The administration and human resource department are merged into each other at Pakistan
International Airline Company. Following the trend and culture which has been set by the
practices at the PIA headquarters in Karachi, the Multan terminal follows the same set of
instructions for nurturing and creating a clone environment. The organizational chart and HR
departmental tree is attached in the annexure. Every organization has to perform several
personnel functions in its own capacity. Every organization hire, train, pay, motivate, maintain
and ultimately retire employees. Human Resource Department of PIA makes policies and
procedures for the employees of PIA from induction level to retirement at all the three levels of
acquiring the employees, developing employees and retaining them. PIA is facing continuous
losses from past few years. From HRM perspective there could be several reasons of failure e.g.
inefficient workforce or unmotivated workforce which was the main aim of this study. There
could be several reasons e.g. lack of guidance, poor training and development, lack of skills, lack
of motivation, lack of monitoring, lack of honesty, lack of education. Hiring Talented, educated,
skilled and motivated workers, lessens the chances of risk. Workforce, capital & technology are
basic weapon by which PIA can compete in a competitive environment. Some major challenges
which globalized organizations face are workforce diversity, technology & E commerce.

2.HR PLANNING AT PIA MULTAN


HRD of PIA must not only concentrate on hiring workers in fact employee retention through
better compensation and supervisor support should also be provided to employees. Human
Resource Planning (HRP) begins with the need analysis. HRP planners at PIA initially consider
the knowledge and skills of current staff are identified by developing a skill inventory for each
employee. The second step is to forecast HR needs for future based on strategic goals of
organization. Third step is to determine the gap between where your organization wants to be in
the future and where you are now. Developing HR strategies to support organizational strategies
includes strategies which are required for meeting your organizations needs in the future e.g.
Restructuring, Training and Development, Recruitment, Outsourcing and collaboration
Strategies. Companies are now using Human Resource Information system (HRIS) for
effectively plan HR strategies. Job Analysis (JA) refers to the process of collecting, analyzing
and setting out information about the contents of job in order to provide the basis for a job
description and data for recruitment, training, job evaluation and performance management. In
PIA job analysis is conducted by first collecting information from departments regarding
vacancies and determines key requirements to perform those jobs. The next step is designing job
descriptions (Job Title, Job Grade, Job Location, Status, job Summary, working Conditions and
duties), job specifications (Education, Experience, Languages, Physical and Mental requirements
& working conditions) and job standards (Targets/criteria). In my perspective HRD of PIA
should use experienced analysts and planners to conduct job analysis and planning. Job Design
(JD) is defined as specifying the contents and methods of any job in such a way that the various

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requirement of job holder can be effectively satisfied. Some approaches to construct an effective
JD are job rotation, job enlargement and job enrichment. PIA must concentrate on above
mentioned approaches for effective JD. Effectively designed jobs lead to high productivity and
satisfied employees. 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 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.

RECRUITMENT AND SELECTION AT PIA MULTAN


Recruitment & Selection Recruitment is the process of attracting prospective
employees and stimulating them for applying job in an organization. PIA
Recruitment process involves both the internal (Job posting, employee referrals) &
external sources (Internet, newspaper) to attract talented, knowledgeable and
motivated 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. It is very important for recruitment process to be unbiased, free of
discrimination and to maintain equity and justice. In PIA selection should be made
on merit basis e.g. person should meet job description and final test and interview
of candidate should be conducted with the panel of judges so that appropriate
decisions could be for the selection of candidates. Decisions should not be biased
and partial in fact decisions should be based on real results and merit. If these
criteria will be followed no doubt PIA workforce will contain efficient workers. PIA
selection process involves short list candidates, job test, selection board, medical
test, offer letter and appointment letter (HR final report, 2011).

ORIENTATION FUNCTION AT PIA MULTAN


Once the selection process has been completed new employees should be given an
orientation in order to become 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 organizations social network.
Placement means fixing or assigning an employee to a job. Placement decisions
should be taken by line managers. Workers who perform best should get promotion
in PIA. PIA gives merit based promotions. Promotion could be of different type e.g.
transferring abroad, increase in salary and promotions to upper positions. The
decision of worker placement and promotion is taken on the basis of worker
performance, capabilities, knowledge about job and skills.

TRAINING & DEVELOPMENT FUNCTION AT PIA MULTAN


Training is very important for all the workers but necessary for those who have to work on
machinery and equipment e.g. engineers usually training & development (T&D) determines how
committed is organization towards its workers. PIA should conduct proper training programs for
the new entrants. PIA should provide 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.

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EMPLOYEE DEVELOPMENT AT PIA MULTAN


It is a joint effort which should be undertaken by workers and PIA to upgrade the workers
knowledge, skills, abilities and capabilities. Employee development programs make positive
contribution to organizational performance because a more highly skilled workforce can
accomplish more organizational goals. Workforce with higher morale, career satisfaction,
creativity and motivation increase overall productivity of PIA.

COMPENSATION & BENEFITS FOR WORKERS AT PIA MULTAN


Compensation as a concept according to refers to all forms of financial returns and tangible
benefits that employee receives as part of employment relationship. Compensation is also a
determinant which determines employee retention & commitment towards organization.
Effective compensation and Benefit programs lead to employee satisfaction. PIA HRD
compensates its employees and provides them benefits. PIA HRD should decide what type of
compensation, incentives & benefits should be provided to workers to satisfy and motivate them.
Several benefits are provided by PIA to its workers.
PIA offers a number of leaves to their employees depending on the designation and position of
various employees which are given below:
Casual leave 10 from 1 January to 31 December
Sick leaves 12
Privilege leave have two categories
Day 1 to 10 years 30 leaves
After 10 years 35 leaves
Special sick leave 90 days (Treatment according to the ranking of his job)
Leave without pay duration 3 years (Confirmation first Lahore then head office Karachi
and this leave is allow only in 1 time in career)

REWARDS AND BENEFITS


Monetary rewards (pay for performance, incentives, bonuses),
nonmonetary rewards (appreciation, certificates, status, recognition) and
benefits (Medical, Tickets, Pension). Performance Appraisal The effort of
employees can determine the success and survival of an organization,
and appraisal is potentially one way in which those efforts can be aligned
with the aims of organization, employees can be motivated and their
performance managed. PIA rewards its employees by offering them the benefit of travelling
through giving free traveling in PIA and this ticket is freely transferable to son or daughter but
son avail this till 27 years of his age but in case of unmarried or divorce daughter can avail this
benefit whole life. There is no limit of daughter age.

PERFORMANCE APPRAISAL
Performance appraisal is a source to evaluate the performance of the employees. Appraising
workers on their performance leads to motivated workforce. PIA should use 360 feedbacks to
appraise the performance of its workers. Performance appraisal is essential because it could be
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motivating tool for workers in future. Performance appraisal is used to make placement decisions
so on the basis of evaluation of performance the organization makes promotion or demotion
decisions. Performance feedback guides career decisions about specific career paths one should
investigate.

3.MARKETING DEPARTMENT AT PIA


Marketing Department implements marketing plans and sales strategies geared to achieve the
corporations business objectives. To achieve these objectives, Marketing Department carries out
sales activities pertaining to passengers and cargo and researches and develops new
markets/products on a regular basis. Different divisions of the department work in close
coordination with each other and other departments of the corporation to carry out day to day
operations. The department generates revenue mainly from two income streams i.e. Passenger
sales and Cargo sales. Independent SBUs have been created for each income stream responsible
for its revenue generation, costs and expenses, capital expenditures and profits. The aim of the
Department is to optimize the available capacity through increased Passenger and effective yield
management. Sales objectives are established and strategies formulated to meet those objectives
in an effective and efficient manner. The department also provides effective support to all
domestic/International stations to meet revenue targets by providing the necessary resources and
support. Semi-automated business reservation environment (SABRE) is the software that is used
to control all the activities of marketing department.

APPROVAL OF AGENT
Bank guarantee
License tourism
Certificate of accreditation
Tax payer registration certificate
Location of approval
Staff list
Letter of approval

AGENT OF PIA
Following are the agents of PIA who are empowered to sell tickets on the behalf of Pakistan
International Airlines;
Star travel and tours
Husain moon holly tours
Royal journal travels
Asian voyagers travel and tours
Al hafiz travels and tours
Sky Mate travels and holidays
Shahzaib travels and tours

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PASSENGER MARKET PLANNING


The Divisions main responsibility is the production of Monthly Performance Review Report for
the consumption of the higher Management. Each month KHISSPK reports the Net/Net sales
performance of the network stations (both on line and offline are included) in the form of a
comprehensive report. This report also includes comments from stations regarding reasons for
negative / positive variance as well as suggestions for improvements. Among other tasks the
division maintains a data bank which provides systematic data collection, classification,
tabulation and analysis regarding Pax traffic performance for the purpose of monitoring seat
factor and improving the market share. This Division is also responsible for conducting branding
and promotional activities across PIAs global network promoting PIA products/ services and
enhancing PIAs brand image and awareness.

SCHEDULES HAJJ AND CHARTER PLANNING


Constructing good quality fleet schedules is essential for an airline to operate in an effective and
efficient way in order to accomplish high levels of consumer satisfaction and to maximize
profits. The robustness of an airline schedule is an indicative measure of how good the schedule
is because a robust plan allows the airline to cope with the unexpected disturbances which
normally occur on a daily basis. The problem of generating fleet schedules is crucially important
to the efficiency of an airline. An effective schedule can lead to significant savings. It can also,
and perhaps more importantly, contribute to higher levels of customer satisfaction. Customers
who experience regular delays with a particular airline are likely to take their custom elsewhere.
Of course, delays are inevitable for a wide range of reasons (e.g. technical breakdowns, security
alerts, adverse weather, etc.). The role of Schedules & Network Planning Division is to
coordinate with different functionaries and develop a schedule which is in synchronization with
the demands of respective bodies.

4.ORGANOGRAM:

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International Airline