International Human Resource Management

INSTITUE OF ADMINISTRATIVE SCIENCES

UNIVERSITY OF THE PUNJAB

International Human Resource Management

SUBMITTED TO:

Prof. Nadeem Akhtar

PROJECT REPORT:

Pakistan Railway

SUBMITTED BY:

AYESHA AKRAM 61

FARIHA ISHTIAQ 83

HAFIZ SUBHAN 85

M.WAQAS AMIN 86

NAYYAR ZAMEER 105

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Contents
ACKNOWLEDGEMENT.................................................................................................................................4

Introduction.................................................................................................................................................5

Pakistan Railway:.........................................................................................................................................6

Mission Statement...................................................................................................................................6

Pakistan Railways- A Historical Preview......................................................................................................6

Organizational Structure.............................................................................................................................8

Core Services of Pakistan Railways..............................................................................................................9

Cooperate Profile........................................................................................................................................9

Human Resource Department...................................................................................................................11

Human Resource Practices and Pakistan Railway......................................................................................12

Admin Branch............................................................................................................................................13

Allowances and Service benefits...............................................................................................................14

EDUCATIONAL FACILITIES......................................................................................................................14

MEDICAL FACILITIES...............................................................................................................................14

GROUP INSURANCE SCHEME.................................................................................................................15

BENEVOLENT FUND SCHEME.................................................................................................................15

STAFF BENEFIT FUNDS...........................................................................................................................16

FREE AND PRIVILEGE PASSES TO RAILWAY EMPLOYEES AND................................................................16

THEIR DEPENDENTS...............................................................................................................................16

Issuance of Journalist Concession Cards:...................................................................................................16

PAKISTAN RAILWAYS EMPLOYEES COOPERATIVE CREDIT SOCIETY LTD 43 ALLAMA IQBAL ROAD
LAHORE..................................................................................................................................................17

Pension......................................................................................................................................................17

Types of pension:...................................................................................................................................18

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Documents required for Pension Case:.................................................................................................18

Factors of calculating the pension:........................................................................................................18

SELF PENSION:.......................................................................................................................................19

FAMILY PENSION...................................................................................................................................19

INVALID PENSION:.................................................................................................................................19

SUPERANNUATION:...............................................................................................................................19

EARLY RETIREMENT...............................................................................................................................20

Leave/holidays...........................................................................................................................................20

Bonuses.....................................................................................................................................................20

Performance Evaluation............................................................................................................................21

Employee and Industrial Relations............................................................................................................21

Issue in HR Practices..................................................................................................................................22

Recommendations.....................................................................................................................................23

Bibliography...............................................................................................................................................25

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ACKNOWLEDGEMENT

We would like to express my special thanks of gratitude to our course

instructor Prof. Nadeem Akhtar who gave us the golden opportunity to do this
wonderful project on the topic, HR Issues in Pakistan Railways. This Project help
us a lot to know practically the implications of HR Practices in Organizations.
Second we would like to thanks MR. ISHAQ AHMAD (Post Suprident in Admin
department) who refer us to the related departments and then Mr. Ali Kamal (BS-
16 officer in Pakistan Railways) who answer a lot of our questions related to HR
and told us the major issues in Pakistan Railway which also helped us in doing a
lot of Research and We came to know about so many new things. And the PREM
UNION who answers a lot of questions related to the issues of CBA and the
employees. We are really thankful to them. As a group we would like to thanks our
Group Leader Hafiz Subhan who managed the whole group and assign different
tasks to our group members and took all the responsibility regarding Project. In
this Project we didn’t work as group but we work as a team.

At the end we would also like to thanks to our parents and the other group
members who helped us a lot in finalizing this project within the limited time
frame.

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Introduction

This Project report aims to study the context of Pakistan Railway. As we all know
about the Importance of Transportation in any country. Pakistan Railway is the
only Rail Transport in Pakistan since 1947. It plays an important role to bring
people to the fartherest areas in minimum time. As well as to diliver heavy loaded
carriages from one place to another in a very short period of time and in fare rates.
It’s a state owned transport service under the Ministry of Pakistan Railway. But
from a time we have seen that Pakistan Railway is still in Crises and face many
challenges and issues. The objective of this research report is to find out the
important issues and challenges which Pakistan Railway has been facing and find
out the reason behind that issues.For this we collect the data by using primary and
secondary source. The method of our research is mixed method. In the light of
collected data and research some policy recommendations have been made to
improve it furthur.

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Pakistan Railway:

Pakistan railway is the national, state-owned railway company of Pakistan.

Pakistan railway founded in 13th may 1861 and headquartered in Lahore. At the
time of independence 1947, Pakistan take over 8,122 route kilometers (5,048
miles) railway lines. Some railways lines have been rejected and disassemble now
it owns 7,791 kilometers (4,841miles) of track across Pakistan from Torkham to
Karachi and it operates freight and passenger services (See table 1). From 1947 to
1974 Pakistan railway were also known as the Pakistan Western Railway. Pakistan
railway is a state-owned enterprise under the ministry of railway of the government
of Pakistan. Pakistan railway is known as Railway Transport in industry.

Mission Statement
‘To provide a Competitive, Safe, Reliable,
Market Oriented, Efficient and Environment
Friendly Mode of Transport’

Pakistan Railways- A Historical Preview

The idea of a rail network was first brought in 1847 by Sir Henry Edward, with the
possibility of Karachi becoming a major seaport. He was appointed as the
Commissioner of Sindh and sought permission from Lord Dalhousie in 1858 to
begin a survey of Karachi Seaport for laying down a railway line. The proposed
railway line would be laid from Karachi (city) to Kotri. A steamboat service on the
Indus and Chenab rivers would connect Kotri to Multan and from there another
railway line would be laid to Lahore and beyond. On May 13, 1861, the first
railway line was opened to the public, between Karachi (city) and Kotri, with a
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total distance of 105 miles (169 km). By 1886, there were four railway companies
operating in what would become Pakistan later; the Sindh Railways, Indian Flotilla
Company, Punjab Railway and Delhi Railways. These were amalgamated into the
Sindh, Punjab & Delhi Railways Company and purchased by the Secretary of State
for India in 1885, and in January 1886 formed the North Western State Railways,
which was later on renamed as North Western Railway (NWR) which eventually
became Pakistan Railways in 1947. Another railway line between Karachi and
Keamari was opened on June 16, 1889. In 1897, the line from Keamari to Kotri
was doubled. It was in the year 1857 when the idea was suggested by William
Andrew (Chairman of Sindh, Punjab and Delhi Railway) that the railways to the
Bolan Pass would have strategic role in responding to any threat by Russia. During
the second Afghan War (1878–80) between Britain and Afghanistan, a new
urgency was needed to construct a Railway line up to Quetta in order to get easier
access to the frontier. On 18 September 1879, under the orders of Viceroy Council,
work began on laying the railway tracks and after four months the first 215 km of
line from Ruk to Sibi was completed and became operational in January 1880.
Beyond Sibi the terrain was very difficult. After immense difficulties and harsh
weather conditions the railway line of over 320 km long finally reached Quetta in
March 1887. By 1898, as the network began to grow, another proposed railway
line was under construction from Peshawar to Karachi. It was also the route
undertaken by Alexander the Great and his army while marching through the
Hindu Kush to the Arabian Sea. During the early 20th century, railway lines were
also laid down between Peshawar and Rawalpindi and Rawalpindi to Lahore.
Different sections on the existing main line from Peshawar and branch lines were
constructed in the last quarter of 19th century and early 20th century (See table 2).

(Source: www.pkrail.gov.pk)

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Organizational Structure

(Source: www.railways.gov.pk)

Briefly explain in table 3

o Sheikh Rasheed Ahmed is Minister of Railways

o Sikandar Sultan Raja is Federal secretary for railway and chairman of the
board.
o Dost Ali Langhari is CEO, Sr. General Manager

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Core Services of Pakistan Railways

1. Rail transport

Pakistan Railway provides the safest and comfortable transport facility in the
country.

2. Cargo transport
They provide the Cargo facility to all the people and institutes of Pakistan
within the shortest time. Revenue generation through Cargo Express
between Karachi Bunder- Badami Bagh & Karachi Bunder-Lahore and back
has been in the freight sector to the tune of Rs.1166.880 million per annum.

3. Parcel transport
They also provide Parcel services to deliver parcel from one place to another
in much cheaper rates.

Cooperate Profile
During the Financial Year 2016-2017, total earnings of the Pakistan Railways
amounted to Rs. 40,064,948,322 consisting of Rs. 21,971,626,634 (54.84%) from
passengers Rs.1,755,364,783 (4.38%) from luggage, parcels, mails, etc., Rs.
12,421,132,137 (31.00%) from freight, and Rs. 3,916,824,768 (9.78%) from
Sundry and other Earnings (See Table 4a)

During the year 2016-2017, the total Ordinary Working Expenses of the Pakistan
Railways amounted to Rs. 50,072,325,755 consisting of Rs. 19,540,724,710

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(39.02%) on repairs and maintenance of track, buildings, rolling stock etc., (see
table 4b)

The Pakistan Railways had 73,276 people on its pay rolls, chargeable to revenue
account. Out of this number 20,151 (27.50%) were employed in the Civil
Engineering Department which maintains track and buildings; 21,430 (29.25%) in
the Mechanical Department which repairs and maintains the rolling stock; 10,094
(13.77%) in the Transportation department which controls Guards, Station
Masters, Yard Staff etc., 2,911 (3.97%) in the Commercial Department which
controls Passenger Ticket Offices, Freight Depots, Luggage and Parcel Offices,
etc., 1,297(1.77%) in Stores Department, 1,648 (2.25%), in Medical Department,
4,920 (6.71%) in Electrical Department, 6,076 (8.29%) in the Railway Police
Department 1,173 (1.60%) in the Account Department, 2,604 (3.55%) in the
Headquarters Office and 1,072(1.46%) in all other departments. The total cost of
all these employees during 2016-2017 was Rs.26, 794,960,000 (See table 5a, b).

Pakistan Railways has 443 working diesel-electric locomotives and 12 steam

locomotives (See table 6).

Total number of coaching vehicles owned by Pakistan Railways at the end of the
year 2016-2017 was 1,736. This includes 1,466 vehicles meant for the conveyance
of passengers and 270 vehicles for the conveyance of luggage, parcels, mails,
automobiles, horses, etc., as well as departmental vehicles and does not include
228 coaching brake -vans . Air-conditioned passenger coaches operating between
important towns are also included in it (see table) From Passenger carrying
Pakistan Railway Earns Rs 21,971,626,634 (see table 7).

The number of freight wagons owned by the Pakistan Railways at the end of the
year 2016-2017 was 16,085 comprising 4,343 covered wagons 4,444 open wagons

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463 special type wagons (for carriage of liquids, explosives, machinery, live-stock,
timber, rails, etc.), 1,662 departmental wagons, 1,777, container 2,969 tank
wagons, and 427 brake-vans. Out of these 9,428 wagons are 4-wheelers and 6657
are 8-wheelers (see table8). 5,630,080 freight tons were carried by Pakistan
Railways during 2016-2017 and 5,031,314,638 ton- kilometers were earned
averaging 893.65 kilometer (see table 9).

(Source: Annual Report Pakistan Railway 2016-2017)

Human Resource Department

Human Resource department is a backbone for every organization. No

organization can work without the human force. If the employees of an
organization are satisfied the product / Service quality of that organization will also
be satisfactory the organization will perform effectively and efficiently and will be
able to serve its customer very well. If the employees of the organization are not
satisfied with it, then its performance and quality suffer very badly. To ensure the
satisfaction of its human force and to provide the organization with the powerful
and relevant workers, every organization needs a very powerful Human Resource
Management to keep an eye on the issues related to Employees. From
Recruitment and selection, Training and Development, Maintaining Employee
Relations and Performance Evaluation all these functions are performed under the
umbrella of Human Resource Department. This department is also very helpful to
motivate the employees of the organization. This Department is also very helpful

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in the development of the employees. It includes such opportunities as employee’s

training, career development, performance management, key employee
identification, and organizational development. The objective of Human Resource
Department is to maximize the return on investment from the organization's human
capital and minimize financial risk. It is the responsibility of human resource
managers to conduct these activities in an effective, legal, fair, and consistent
manner.

Human Resource Practices and Pakistan Railway

At present, there is no Department of Human Resources in Pakistan Railways. The

transfer, service and posting of officers of all branches has been informed by the
Personnel Branch. The Divisional Personnel Officer (BS-18) are assisted by
Assistant Personnel Officers (BS-17), (where provided), to deal with all personnel
work. According to the procedure, the concerned executive officers either suggest
the transfer or posting of railway officers against the vacancies as per the
requirements of the personal branch at the time of hiring or as per the requirements
of the situation. These matters have been approved by the General Manager for
final implementation (up to BS-18) or forwarding to the Ministry of Railways (for
BS-19). BS-20 / BS-21 officers are transferred and posted by the Ministry of
Railways. In addition, the personal branch of Pakistan Railways is also playing the
role of human resource development. Apart from this personal branch are also
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carried out various works in which maintenance of railway service record,

recruitment of officers from Grade 11-15, promotion of officers from Grade 11 to
Grade 16, Railway Officers from Grade 18 / Includes Collaboration/interaction
with Railway Divisions and Ministry of Railways on all the important service
matters of Railway officers/officials. Resolve the grievances of Railway
Officers /Officials, 'In Service' and 'Retired' Railway Officers on all service matters
of Railway Divisions and Ministry of Railway and when required they do Right-
Sizing of Railway officials according to the situation.

Admin Branch

Candidates who were selected after clearing the CSS, PPSC, FPSC or NTS test and
the interview, admin branch issued the appointment letter to them the other
function of this branch is to manage the leaves and Payrolls of the employees. The
authorities of admin branch are Ministry of Railway, General Manager and Deputy
General Manager. These three authorities also manage the leaves of the employees.
If any employee want study leave for 2years or more than two years than Ministry
of railway will deal this case.

If any employee need leave for more than 3months than connivance allowance will
be deduct from one pay of that employee.

All the candidates who were selected for senior post joined Civil Services
Academy and candidates for junior post joined Pakistan Railway Academy for
Training Purpose.

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Allowances and Service benefits

EDUCATIONAL FACILITIES

Pakistan Railways is providing education facilities to its employees since long.

However, a separate Directorate of Education was established to deal with the
affairs of Railway schools, which now works under the supervision of General
Manager.

MEDICAL FACILITIES

Pakistan Railways has its own Medical Department and has eight hospitals located
at Peshawar, Rawalpindi, Lahore, Moghalpura, Multan, Sukkur, Karachi Cantt and
Quetta. Railway employees and their families are getting free of cost treatment
through these institutions hospitals. These hospitals are controlled by the Chief
Medical & Health Officers with the support of 172 doctors and specialists. Medical
Department looks after the health of more than one million people i.e. Railway
Employees, Retired and their families on the entire Railway System. Apart from
hospitals Pakistan Railways have 57dispensaries and 35 Child Welfare Centers all
over the system. The Medical Superintendents and Divisional Medical Officers
have been directed to improve the 100 Emergency Departments of the Hospitals /
Dispensaries to give better treatment to the Emergency and the indoor patients. The
Railway hospitals are being opened for general public offering medical
consultation, diagnostic facilities and indoor treatment utilizing the services of
Railway doctors/ specialists and paramedical staff.1 /3 rd of the revenue generated
will be deposited with government treasurers being Railway earning. See table 10

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GROUP INSURANCE SCHEME

Life of every permanent employee is insured against death and injury for the
duration of his employment with the company. The premium for insurance is paid
by company. Pakistan Railway will give special leave to the concerned in case of
death of his / her spouse, so that one can adjust after sustaining the tragic loss. In
case of death of employee an amount of money is given to the wife/son/daughter of
the employee.

BENEVOLENT FUND SCHEME

Benevolent fund grant, which ranged from Rs 880 to 4,000, was increased to Rs
4,000 to 10,100 per month from July 2016. Under this head, Rs 463 million were
distributed in 2016-2017.

The Pakistan Railway spent Rs 771 million on Benevolent Fund, Marriage and
Farewell Grant in2016-2017. This fund has been increased to Rs 1,100 million for
2017-2018 and it will help in resolving issue of widows and persons with
disabilities.

As soon as may be, the Railway Board shall constitute a fund to be known as the
Pakistan Railway Servants Benevolent Fund

The fund shall be divided into two parts

Part 1 for Gazette Railway servants

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Part 2 for non-Gazette Railway servants

STAFF BENEFIT FUNDS

Staff Benefit Fund is maintained for running welfare schemes. This fund is
financed through General Revenue, Provident Fund, Bonuses and Fines etc., and
there is no deduction of any amount from the employee’s salary for this fund.

Following benefits are given to the employee for their contribution.

 Sewing machine to widows.

 Marriage grant to daughters of employees.
 Grant for the serious patients suffering from major
diseases.
 Free books for children of workers.
 Grant of scout scholarship for children’s of employees.
 Grant for Pakistan Railway Scouts Association.

FREE AND PRIVILEGE PASSES TO RAILWAY EMPLOYEES AND

THEIR DEPENDENTS

The Railway Employees and their dependents during service as well after
retirement are provided Privilege Passes, free of cost or Privilege Ticket Orders,
after a part payment of the fare as laid down in the Rules to travel in the trains.

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Issuance of Journalist Concession Cards:

After fulfilling requisite criteria, this offices issues Journalist Concession Card to
the Journalists/Media-men of "approved list" of Print and Electronic Media,
whereby the card holders can avail up to 80% concession in Rail fares on railway
operated train. Pakistan Railways has sold 11609 tickets to the journalists having
Journalist Concession Cards worth Rs. 5.676 million during the period July- 2016
to June, 2017 (See table 11).

PAKISTAN RAILWAYS EMPLOYEES COOPERATIVE CREDIT

SOCIETY LTD 43 ALLAMA IQBAL ROAD LAHORE.

During the financial year July, 2016 to June, 2017 (12 months) the Pakistan
Railways Employee's Co-operative Credit Society Ltd Lahore entertained 7658
applications for loan & advanced a sum of Rs. 337.27 million to the Railway
Employees, while in the corresponding period payment of loan to Railway
Employees was made amounting to Rs. 331.668 million, thus attaining an increase
of Rs.5.61(M) in the Fiscal Year 2016-2017 See table(12).

Pension
Pension is the financial benefit to employees of the organization at the end of their
job at the company. Pakistan Railway provides different types of pension to
employees. To deal with all the pension related matters Pakistan Railway has
Personnel Branch. They collect all the details about the retired employee and make
a file known as “Pension Case”. They also deal with retirement program of the
employees. Pakistan Railway provide the four pension and retirement schemes.
These pension schemes follow the pension rules which are determined by the
Government of Pakistan.

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Types of pension:
o 1.Self-pension
o 2.Family pension
o 3.Invalid pension
o 4.Superannuation

Documents required for Pension Case:

o 2 Photographs
o 2 CNIC copies
o Signature of applicant
o No inquiry certificate
o Service book.

Factors of calculating the pension:

o Age
o Tenure of service
o Last pay drawn

It is mutually agreed that

 A certain amount of deduction is allowed on monthly salary to add into this

fund
 33 years of service shall be counted for calculating it.

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SELF PENSION:
The Self pension is being claimed, when employee provide their
services for 25 year at the organization. Then employee fulfills the requirement
of pension section. Pension is provided on the basis of basic pay scale (BPS) and
last pay drawn.

FAMILY PENSION
Family Pension is given to the family members of those employees who die
during service. Following family members of employee will receive pension under
the circumstances which are given below:

a. Wife of deceased person.

b. Son of deceased person will receive pension till 21 years of age and Daughter
till marriage

NOTE: Son and daughter will receive pension after the death of wife of deceased
person.

INVALID PENSION:
Invalid pension will be paid to those employees who are retired on the basis
of some medical issues during the service. Invalid pension will receive by self.

SUPERANNUATION:
The Superannuation is claimed when employee reach the age of
60years. For claiming superannuation pension, employee fulfills the requirement

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of pension section. This Pension is provided on the basis of basic pay scale (BPS)
and last pay drawn.

EARLY RETIREMENT
Employees having 20 years service with 55 years age will be eligible to
apply for early retirement. Pension/ gratuity are as per rules for actual number of
years served by him in the company.

Leave/holidays

Leave is not a right but a privilege and requests are considered and met with due
regards for service requirements.

a) Earned leave (30 days yearly)

b) Casual leave (18 days yearly)

c) Last pay retirement (granted for the last 1year of service in Pakistan Railways
with pay)

d) Medical leave (30 days yearly)

e) Extra ordinary leave (without pay not added in service tenure)

f) Study leaves (2years or more)

 Combination of two kinds of leave is not allowed except sick leave.

 Permission for leave must be obtained in writing in advance.

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Bonuses
All the bonuses are given to the employees of railway on the basis of the
performance. If the employee performance is remarkable then the commanding
officer will issue a notification in which he will mention the reward and name of
the employee for the remarkable performance.

Performance Evaluation
From BS 11-16 Performance evaluation is done on annually basis. This Evaluation
is done by BS 17 scale officer and after evaluation he submits a report to BS 20
scale officer. The officer signs the report and send back to the relevant department.
This report is also known as confidential report.

Employee and Industrial Relations

There is a department in Pakistan Railway known as Directorate of Legal Affairs.

The Directorate of Legal Affairs is an independent legal wing of Pakistan Railways
to provide legal services to the organization at all levels. The head of this wing is
and officer of BS-20th scale who engaged on contract basis and is always a lawyer
by profession. See table 8

 Handle all the legal matters on the entire network of Pakistan Railway.

 Keep in touch with superior courts for resolving the litigation issues

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 Coordinates and provides compensation to the persons who sustain injuries

or die in railway accidents, according to the rules and regulation governing
the same.

 Tries to minimal litigation.

 Coordinates with other railway departments and provides legal guidance and
assistance.

Issue in HR Practices.

 Involvement of third party for Job Test

Recruitment is done through a third party PPSC or FPSC in which some of
the employees of PPSC take the money and pass the test and after the test is
done, the interview takes place. The interview panel consists of PPSC
people and the people of the department are present in it. Now the officers of
the department recruit the employees according to their interest. That is
unfair practice of recruitment and impact directly the railway department.
Because people don't come on merit, they don't know their job and can't do
their job on merit. Because people are not selected on merit, Parliament
cannot move forward the way it should, because it is not doing as well as it
should. People who are selected by corruption are of course involved in
corruption when they are doing the job. This causes the destruction of any
organization.

 Mismanagement
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One of the biggest impacts of mismanagement is high employee

dissatisfaction. Employee morale and motivation towards achieving goals
may drop. All the resources like money; workforce, time and machinery are
wasted. Job satisfaction decreases, employees burnt out and also legal risks
increase. All employees are not aligning with their strategy of work. And all
these things are happening with the employees of railway. Moreover trains
are not arrived at time which impacts a negative image towards their
customers. Due to this Pakistan Railway loses customer loyalty.
Chief Justice Gulzar Ahmed Said:
“The stations and railway tracks are not in order. Every passenger
travelling by train is in danger and not feeling secure. The freight trains are
also not operating. The world is using bullet trains but we are still operating
antiquated railways,”
(Source: www.tribune.com.pk)

 Political interference in recruitment

Political interference in the recruitment process, nepotism, and poor human
resource management has also backed a great deal in its decline. Posting and
transfers on personal interest or on political basis have caused a sense of job
insecurity among the officers and thereby seriously affected the efficiency of
the organization. Additionally, frequent changes in the appointment of senior
officials have created the issue of long-term planning and its
implementation.

 The senior officer recruits their own people from BS 1-14

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When this thing happens in Pakistan Railway most of the time the senior
officer by passes the recruitment policy and recruits their own people. The
people they recruit are not enough capable to perform their job duties which
put a major impact in Pakistan Railway.

 Corruption is also referred in recruitments.

Corruption undermines the fairness of institutions and processes and distorts

policies and priorities. As a result, in Pakistan Railway corruption damages
the legitimacy of regimes leading to a loss of public support and trust for
state and other government institutions. It impacts on the ability of the State
to protect and fulfill its human rights obligations and to deliver relevant
services, including a functioning judiciary, law enforcement, health,
education, and social services. Due to corruption the result is non-
availability of right type of workforce at right time, hence affecting the
organization.

 Criteria of Bonuses.
When in an organization bonuses or opportunities given on the basis of
favoritism then other hardworking employees performance decreases and
they think no matter how hard they work it wouldn't matter because
preferred employees will get bonuses, rewards and better opportunities and
their work even will not be appreciated. So they do not take interest in their
work and not completed their work on time show carelessness that's why
railway is the main junction of carelessness. Due to all this Railway Pakistan
performance and profitability decreases.

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 Favoritism
In Pakistan Railway it has been seen that , if there is not a good
understanding between employee and their commanding officer than there is
a great chance that your evaluation report will be affected. If there is
favoritism or miscommunication between employees and commanding
officers than this will leads to negativity because when people don’t have
knowledge or information which they feel they need so the result of
productivity or production will be low. Moreover when employees perceive
that there is favoritism in how they are treated by management, a sense of
unfairness creeps in. Favoritism breeds resentment, destroys employee
morale, and creates disincentives for good performance. so this will
definitely harm the performance of an organization
 Not a single department for the development of employees.

As we know the benefits and value of training and development act like a

domino effect; leaders feel competent and can efficiently influence
employee performance; happy and skilled workers create job satisfaction,
commitment and thus retention; workforce improvement and
engagement impacts the overall profit. If there is no department for
development of employee so there will definitely the organization get in
loss.

 Lack of educational and Medical Facilities.

When we collect the data from the employees of Railway we have seen that
there is not a sustainable policy for education and medical due to which a lot
of employees are having strong concerns regarding it. The Pakistan railway

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is not facilitating them with these two facilities due to which employees
think that the organization not care about them which increased the stress of
employees, loss interest in their jobs, dissatisfaction and demotivated.
 Increase in cost while decreasing in Revenue.
In 04 Dec 2018 Railway to increase fare from next week in wake of rupee
depreciation says Sheik Rashid
Pakistan Railway will increase the fares of its popular destinations from next
week in wake of the rising exchange rate of the dollar, Railway Minister
Sheikh Rashid announced it.
When Dollar rate increase therefore the rupee is also increased that but our
government never increase their employees’ salaries that’s why people face
many problems. But still increasing the fare rates will not give as much
profit to Pakistan Railway so that they can face the crises of decreasing
revenue.

 Inefficient Operations
The association of train drivers has called upon the Pakistan Railways
authorities to focus on “rehabilitation of the train track for the safety of
passengers, line staff and rolling stock” as the number of minor and major
accidents involving significant loss of human lives and railway property
continue to rise for some years.
The railway is in a total mess because of a number of factors. For starters, it
has failed to keep pace with rapidly changing technologies, improve services
and invest in ground infrastructure or efficient rolling stock to make its
operations safer.

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 Lack of Career development.

Career planning is the very important part of any organization and employee
individual performance where there is no career planning employees are
unaware about current strengths are not able to determine what skills need to
develop to improve their work and availing new opportunities. They only
focus on personal goals, employees do not see a path to keep moving
forward within their organization. When a employee is connect to the right
people and content to make their career dreams come true, you also give that
employee a sense of purpose. Without career planning employees are unable
to discover their career path. Because of career planning and other issues
Pakistan railway are in loss and if make revenue it is not enough to run
without govt. help and Govt. allocate a large amount for Railway because it
has no HR department through which they can handle all workforce related
issues and increase their performance and decreases financial loss.

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Recommendations
For any organization the key to success is an effective management policies and
implementation of that polices. It is considered that Human Resources are the
backbone of every organization without Human Resource none of the organization
can run and earn profit. The more important thing is that what polices the
organization made for the recruitment of capable, talented, hardworking and honest
employees for the organization.

In the mention above research we find out some major issues and challenges that
Pakistan Railway is facing. One of them is the involvement of third party and
political interference in the recruitment process. We are not saying that the
involvement of third party for recruitment process is wrong but the procedure they
made is not effective enough to find such employees who are honest with their
jobs.

For this we recommend that the result of entry test paper should not be announced
before the interview of the candidate. At least 50% weight age should be given to
the interview section and remaining 50% should divide in academic results. In the
interview panel there should be some experts of the relevant profession who
explore the expertise of the candidate without having any pressure from any
person.

To avoid mismanagement Pakistan Railway should embrace their technology.

They should need to convert their manual work to computerized system. Job role
duties are clearly mentioned and keep their employees updated by doing monthly
meetings.

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Corruption is linked to the level of GDP (the higher the GDP, the lower the rate of
corruption. To stop corruption Pakistan Railway strongly needs a public reform
administration and finance management promotes transparency access to
information and empowers citizens. (E.g. whistle blower act)

Presently, the Personnel Branch of Pakistan Railways is functioning as the Human

Resource Development Department within its limited sphere, resources and scope.
Without overemphasizing the importance of HRD, Pakistan Railways should have
an HRD Department fully backed by an IT based MIS to ensure overcome issues
and problems as mentioned earlier and make the human as the most productive
source. Therefore, an HRD department should be established under the umbrella of
the newly created position of General Manager to play its role effectively in the
larger interest of the organization.

To avoid favoritism there should be a panel of other independent unit at the time of
interview as well as at the time of performance evaluation who evaluates the report
on the basis of work rather than personal benefits.

Pakistan Railway Academy is the only department who gives training to the
employees, we recommend there are some serious changes need in this department,
because the in this department there are trainers who belongs to occupational
group, there should be appointed or invite on contract basis some other trainers
having PHD or M.phill degree other than occupational group.

To minimize the financial crises, the services of the professional financial advisors
should be hired for better generation of revenue.

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Educational and Medical these two facilities coupled with other facilities provided
by Pakistan Railways can considerably boost the morale of the employees of this
organization; if exploited effectively. Therefore, Pakistan Railways should reframe
its policy towards this end and reap the best results accordingly.

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Exhibits
Table 1

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Table 2

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Table 3

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Table 4 (a)

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Table 4(b)

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Table 5(a)

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Table 5 (b)

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Table 6

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Table 7

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Table 8

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Table 9

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Table 10

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Table 11

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Table 12

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Bibliography
www.pakrail.gov.pk

www.railways.gov.pk

www.acadmeia.com

www.transparency.org.pk

https://www.wikiwand.com/en/Ministry_of_Railways_(Pakistan)

Dr. Amir Saeed, Assistant Professor, Institute of Administrative Sciences, University of the Punjab, Lahore

Ms. Urooj Qamar, Lecturer, Institute of Administrative Sciences, University of the Punjab, Lahore, Pakistan

Khan, Maqsood. (2009). HUMAN RESOURCE DEVELOPMENT POLICY TO ADD VALUE TO PAKISTAN
RAILWAYS AND ITS EMPLOYEES PAKISTAN RAILWAY ACADEMY LAHORE.

Asim, Dr. Muhammad & Qanita, Imtiaz & Nafees,. (2014). Pakistan Railways at the Verge of Collapse: A Case
Study. International Review of Management and Business Research. 33.

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