CHAPTER 1

INTRODUCTION
TO
NATIONAL HIGHWAY AUTHORITY

1.1 Creation - NHA

First serious effort to construct highways in Pakistan started with the construction of
Karachi - Hyderabad Super Highway in late 1960s. However, it was only in 1978 that
the Government of Pakistan decided to federalize important inter-provincial roads. The
erstwhile National Highway Board (NHB) was then created for development and
maintenance of the federalized roads named as the "national highways". NHB was
converted in to the National Highway Authority (NHA), through an Act of the
Parliament, in 1991.

1.2 Mission Statement – NHA

To ensure national integration through an efficient, reliable, safe and environment

friendly national highway & motorway network with a view to improve quality of life in
Pakistan.

1
1.3 Objectives of NHA

•To maintain and operate the national highway network in worthy and safe condition at
optimum expense, ensuring user satisfaction.
•To deliver development program as per the Government’s policy and priority with
respect to time and cost.

1.4 Purpose and Functions - NHA

NHA is entrusted with the responsibility to plan, promote, organize and implement
programs for construction, development, operation, repair and maintenance of national
highways and strategic roads especially entrusted to it by the federal government or by a
provincial government or other authority concerned.

1.5 Working Strength

The current regular strength of NHA stands as 1603 with 393 officers in BS-17 & above
and 994 staff members in BS-16 and below that are 1210.

2
1.6 FUNCTIONING OF NHA
NHA IS A CORPORATE BODY UNDERMINISTRYFCOMMUNICATIONS

• NHA is a corporate body under the Ministry of Communication (MoC).

•
The National Highway Council controls, directs and regulates the affairs of NHA.
• The general direction and administration of NHA and its affairs vest in the
Executive Board.

1.7 National Highway Council

The Prime Minister of Pakistan previously headed the Council. In July 2001, the
provisions of the NHA Act, 1991 were amended and the Council re-constituted. Minister
for Communications now heads the Council with Secretaries Finance, Planning &
Development (P&D) and Communications as its Members and Chairman NHA as the
Member/Secretary besides two professional members nominated by the President of the
Council.

1.8 Executive Board

The general direction and administration of NHA and its affairs vest in the Executive
Board; which is empowered to exercise all powers, perform all functions and do all acts
and things which may be exercised, performed or done by the Authority. Executive
Board is headed by Chairman NHA with Inspector General National Highways &
Motorways Police, Additional Secretaries Finance and P&D Divisions, Joint Secretary
Communications, Senior Chief NTRC, Vice President NESPAK and Members Finance
and Planning NHA as its Members.

1.9 Chairman NHA

Chairman deals with the eight functional managers. He performs his task as GM Audit
and as the secretary NHC too.

3
CHAPTER 2
ANALYSIS

2.1 Type of organization

NHA is a large public organization that provides services. It is a formal organization
because it is/has:
 Approved organization
 Preplanned
 Permanent office
 Permanent employees
 Joint efforts
 Common objective to accomplish.

ORGANIZATIONAL CHART – NHA

4
2.2 Departmentation in NHA

Departmentation in NHA is done by function. While asking during the interview that why
NHA has the departmentation by function. They answered that if departmentation is done
in NHA by geographical area, the purpose of head office comes to an end. If they make
provincial headquarters and give them authority to make their own decisions, it becomes
difficult to keep the unity of direction. The goals may have isolation.

2.2.1 Member planning

Planning department is aimed at planning the budgets keeping in view the projects. They
set the prior goals regarding the project. And then they forward it to construction
department. Every project stem from planning department. But the problem is when
setting the specifications for any project they have, they do not bother to involve any
other department for suggestion. This may cause sometimes the ineffectiveness of the
project planning and the project gets returned from construction department instead it
move forward to the operation department.

2.2.2 Member construction

The projects planned in planning department are stirred in construction department.

Construction department checks the physibility of the projects and afterward they
forward it towards the operation department.

2.2.3 Member administration

Administration department mainly has two objectives to accomplish.

 Recruitment of employees

5
 Arrangements of manpower for projects
The recruitment process is very lengthy and time consuming. Firstly the vacancies are
announced to overall state and then applicants submit their CVs, later on according to
their eligibility their written test is conducted and then date for interview is announced for
the successful candidates. Finally after the interview certain applicants are selected for
some selected job. The problem in this recruitment process is that it is very time
consuming and engages a lot of people and needs to bear enough expenses just for a few
vacant posts. Better another alternate process be used for the job recruitment.

2.2.4 Member finance

Finance department keeps the record of cash transactions performed. There are three
sources that fund the finance department.
• Govt.
• RMA
• Aid
These three sources are no doubt the strong sources for financing but the main flaw is that
for the projects that take place at sudden have to wait till the next fiscal year’s budget. So
NHA is bound to plan for the proceeding projects a year before always. This can be a
problem because the economic and political conditions are unpredictable.

2.2.5 Member AP

This department has to undertake the task of handling with projects aided by various
countries. They also forward the project aided to planning department with the
contractual terms and conditions. As we got such information of the functioning of
Member Aided Projects, we come to analyze that member planning does not perform any
other task except some and that in result is time taking, resources consuming and
overload of employees and financial expenses.

6
2.3 Decision making in NHA

Decision making lies in NHA with top level that is planning

department and NH council. This is from one aspect good
that those who involve in decision making of the projects
are experienced enough and there are very less chances of errors in the project. But the
problem is that the centralized decision making results in ineffectiveness of the project
implementation process because when middle managers do not involve in decision
making, who have to bring the project in action, causes them to be de-motivated, disloyal
and non-committed while performing.

2.4 Authority and responsibility- NHA

Officially the responsibility to each employee or officer is given against the authority
delegated to them. There is of course the parity between both the authority and
responsibility in NHA but problem takes place when line managers shift their
responsibility on their subordinates’ shoulders using the authority they possess.

2.5 Span of control- NHA

The structure of the organization, as shown above in organizational chart, is flat and the
span in such a structure is wide. NHA has used wide span of control due to:
• Technology
• Experienced and trained employees
But as all the employees in NHA are not very much trained, experienced and extra
ordinary that leads the managers to handle and oversee more subordinates than he can
effectively do. To manage and do the work efficiently the span should even be lower

7
2.6 Delegation of authority

In NHA the authority, as defined in PC-1, is delegated seeing the nature and measure of
responsibility. But top level delegates the authority along with the responsibility for
which they are themselves responsible. They are required to be only responsible for the
task they are assigned but here it happens contrarily.

2.7 Commitment towards the organizational goals

During the interview, we came to know that at different levels of organizations

employees are involved in a lot of corruption cases, which shows lake of commitment
and sincerity of employees toward achievement of organizational goals. The reason
seems to be that employees are less motivated from their superiors and less awarded, and
the employees think that they perform is comparatively harder than the salary they get.
Secondly, the employees are less punctual and active; in result they give less output than
they can actually produce.

2.8 Committee structure

During the interviews we come to know that there is a committee who checks the
problem during the projects. Members of the committee analyze the situation and give the
recommendations as per the requirements. Their decisions\ are final and no other check
on the committee that which may leads to the wrong decision making and misuse of the
power as well.

8
CHAPTER 3
Problems and recommendations

3.1 PROBLEMS
• While planning for any project, only people from planning are concerned. They
do not even involve a single person or officer from any other department.
• The recruit process is very slow, expensive and time-consuming. Even when there
is a very small number of people been recruited. Due to referencing system prevailed
in our country; non-committed candidates are recruited that is logically wrong.
• Planning for projects is done a year before. And when budget for the fiscal year is
announced, NHA starts to set in the projects. This is the problem here that they
cannot response to the immediate projects need to be worked on.
• A department entitled Member AP is there on the organizational chart functioning
as handling with aided projects. This department in a critical view is not really
needed. In fact a much better alternative can replace this conduct.
• Decision-making is centralized in NHA that we found the main cause of
employees’ less commitment, non-punctuality and de-motivation.
• Most of the officers use their authority wrongly. That is, they put all their
responsibility to their subordinates’ shoulders. And consequently the results are not
optimum.
• During the project we conducted, we observed that the employees are not that
much punctual, sincere and committed to the organization and organizational goal.
Because they are not rewarded or they are not satisfied with the salary they get.

9
3.2 RECOMMENDATIONS
• When making decisions for projects, top-level managers from planning
department should involve the persons from other department that they think can
contribute to the sound decision-making. This will result in less time consumption
relatively when the projects forwarded to construction department return with a list of
suggestions sometimes. If this happens as suggested, it will save time and will be
more effective than it could be if only done by planning department.
• In order to recruit only competent candidates for the posts of officers, some
standard testing systems should be made compulsory that candidates must have when
they apply. Further it will place opportunity for a limited number of candidates to
apply for vacancies. This all will help administration take fewer days to conduct the
test and announce the date for interview. This is less expensive and less time-
consuming.
• NHA should erect a policy and get it approved from the government that if certain
projects need to get started before the fiscal year finishes, there should be enough
funding for NHA to start work. This will help in saving of time and early
implementation of the projects
• Aided Projects department should, in our point of view, be eliminated and a
section under planning department be formed. Because Member AP is not that much
necessary. If a section under planning department is created, they can also cope with
aided projects of different countries. It will also be beneficial for planning department
to be updated and will also be helpful in cost reduction.
• There should be decentralization in NHA. Although centralization is well
considered, yet takes commitment by employees. When decentralization, authority is
delegated. Subordinates most often like the authority and are self-motivated. It will
benefit company to arouse their interests and commitment power and would chiefly
drive everyone towards the organizational goal.

10
11