INTRODUCTION OF PIA Pakistan International Airlines was registered on April 24, 1954.

PIA started its regular service from May 10, 1954. It introduced its first direct service between Wast and East Pakistan (now Bangladesh). Pakistan International Airlines Corporation was formed with merger of PIA and Orient Airways in 1955. PIA entered the world of international aviation with a service from Karachi to London, Cairo and Rome. PIA's Engineering base took shape in 1956 which overhauled the first Super Constellation engine in PIA's own shop. PIA placed orders for two Lockheed Super-H Constellations and three-with option of five Vickers Viscount turbo-prop airlines. During 1958-59 first two Visconts began operating and PIA's traffic increased on all domestic and Equopean routes. PIA started modernizing its fleet by replacing the Conveyers with turbo-prop Viscount aircraft. During 1959-69 introduced Boeing 707-320 " International" on the London route. It became the first Asian airline to operate a jet ( by leasing one from Pan American World Airways). In 1960-61, PIA received first three of five Fokker F-27s received and placed order for three Boeing 720B jet aircraft. In these two years PIA also inaugurated Karachi-NewYork service. During 1961-62, PIA's operating revenues increased by 39% over previous years. Its 87.7% of all flights operated on tome or within 15 minutes of schedules. PIA received its first Boeing 720B in January. During this two years period 1379 students completed 228268 student-hours in PIA's integated Ground Training School. In 1962-63 integration of PIA's Boeing 720B fleet completed. PIA also placed order for three Sikorsky S61 N helicopters placed. Boeing 720B was introduced between the two wings of the country. During 1963-64, PIA became the first non-communist airline to fly to the People's Republic of Chian, and to operate a service between Asia and Europe Moscow. PIA operated its commercial, uinsubsidised helicopter service through East Pakistan (now Bangladesh). During 1964-65, it received its fourth Boeing 720B aircraft. Two more Fokker F-27 aircraft were received just after the close of the year. This was the period when PIA make a record operating surplus of Rs. 49.22 million which was 54.71% of paid-up capital. During 1965-66 PIA purchased and installed an IBM 1401, the first computer in Pakistan. PIA's own Engine Overhaul Shop was commissioned and completed in theis period. Also in theis period PIA purchased two

Boeing 707-340Cs. One Trident IE and two F-27 to add to its fleet. PIA Air Academy started functioning in this period. In 1967-68 one Boeing 707 received. First batch of PIA trainee-pilots completed their training from PIA flying school and received Commercial Pilot's License inthis period. An new Jet Hangar for Boeings and a supporting airframe overhaul shoop were commissioned and completed. In 1968-69, PIA received its fouth Boei g 707 and placed order for a Boeing 707 flight simulator to train its pilots in its own premises. The mark of one million passenger carried on domestics services was also crossed. During 1967-70, Pia signed an agreement for maintenanace of Ceylon's Trident IE aircraft at PIA workshops. Engineering service also extended to Royal Nepal Airlines Corportation for the overhal of Fokker aircraft. Another agreement was also signed for the sale of Tridents to China in this period. In 1970-71 PIA placed order for one more Fokker F-27. In this period Flight Kitchen at Karachi wasl also inaugurated. In 1971-72 Transatlantic service was resumed. For safety purposes close circuit television system installed at Karachi airport. One agreement was signed wtih LAA for domestic operations in Libya. PIA signed another agreement with the Yugoslavia airline JAT for lease of three Boeing aircraft. During 1972-73, PIA expanded its terminal services at Islamabad and Karachi. A management agreement was signed wioth Air Malta under which PIA seconded Management team to Malta. In tis period PIA contacted topurchase three long range wide-body Douglas DC-10 series 30 aircraft. PIA became the first airline to introduce a second route to People's Republic of China over the Karakoram ranges. In 1973-74, a full time Chairman of Board of Directors was appointed. PIA added two DC-10 30s aircraft to its fleet. PIA's two 720Bs were given to Air Malta on lease in this period. In 1974-75 PIA added three Boeing 720B aircraft to its fleet. Third DC-10-30 was also added to the fleet and a fourth was ordered. A weekly all-freighter Boeing service to New York was introduced. PIA established a facility for testing CF6-50 engines and components of DC-10 aircraft. General Freighter Service was introduced in this period and a new uniform for PIA airline business was also introduced. In 1975-76 introduced its DC-10 on domestic routes. PIA also acquired two Boeing 747 on lease and successfully inducted on transatlantic route. In 1976-77 a new corporate identity program was implemented. PIA earned a record operating surplus of Rs. 152,08 million. One DC-10-30, two B707 and one 720B aircraft were added to the fleet in this period.

In 1977-78 the option to purchase two B747s was exercised. Two PIA subsidiaries were established and registered in the UAE to promote and manage hotel projects abroad. It provided technical assistance to Somali Airlines, Air Malta and Yemen Airways. In 1978-79 PIA earned a record operating surplus of Rs. 267.77 million. During 1979-80 PIA introduced two additional Boeing 747s and four A300 aircraft. There was cut-over of domestic stations to in-house computerized reservations system, REPAK. PIA opened an Air Cargo center at Karachi airport. New downtown sales office was also established in this period. In 1980-81 wide-body hangar and related workshop were commissioned. There was international stations cut-over to the in-house computerized reservations system-REPAK. PIA opened a new flight Control System at Karachi airport. In 1981-82 a weekly service to Abu Dhabi and Dubai from Peshawar was inaugurated. PIA was rated as the leading and the most efficient airline for the year 1981 Haj operation. Duty Free shopping complex inaugurated at Karachi airport in this period. In 1982-83 PIA earned an all-time high operating surplus of Rs. 441 million. PIA purchased and added one DC 10, Airbus and B707 and DE-10 respectively. PIA introduced " Direct Inward Dialing" telephone facility first time in the country. Mini and micro computers were installed in PIA head office Karachi during this period. During 1983-84 PIA automated its budget, finance, revenue and other important areas. New flight of Islamabad-New York via Istanbul was inaugurated. PIA also introduced its night coach serivces between Lahore and Karachi and Islamabad and Lahore. Foundation of PIA Township laid at Karachi Airport for the employees. PIA's flight kitchen extension and modernization was undertaken. During 1984-85 PIA set up first ever planetarium of Pakistan at Karachi. PIA also introduced Feeder service in the country. Five Boeing 737-300 aircraft were also included into the PIA fleet. PIA's revenue for the first time exceeded the Rs. 1000 million mark. In 1985-86 PIA introduced " Sohni" Executive Class on all Pia 747 aircraft on international flights. In this period new uniform for air hostesses was introduced. PIA intorduced its fourth flight to New York. In 1986-87 PIA started flights to Make and and also introduced its fifth flight to New York. PIA also started auto-ticketing facility. During 1987-88, PIA's Islamabad's flight kitchen was inaugurated. PIA also hosted first international course on Civil Air Transport. PIA also

introduced its services to Toronto and introduced its sixth weekly flight to New York. PIA upgraded its China and Singapore operation to Boeing 747. PIA introduced its Twin Otter operation to Muzaffarabad and Rawalakot. In 1989-90 PIA inducted two woment pilots for the first time in Pakistan's history to operate passenger flights. PIA also introduced the first ever direct haj flights from Lahore To Jeddah. In 1990-91 PIA introduced a new international flight, Peshawar-Jeddah via Lahore. A direct Lahore-Bangkok flight was also introduced. Advanced boarding facility was introduced in this period. High-Tech A310-300 aircraft were inducted into PIA fleet. PIA's new corporate identity introduced in this period. In 1991-92 PIA flight to Tashkent was intoduced. Peshawar added as fourth point for Haj operations. Some agreements were signed to link PIA reservations with Sabre, Galileo and Amadeuw-Global Distribution System ( GDS). PIA achieved revenue of Rs. 20 billion and unprecedented operating surplus of Rs. 1.58 billion. During 1992-93 PIA introduced flights to Zurich. Flight to Sharjah that was suspend resumed in this period. Direct flights between Islamabad and Singapore and Lahore and Kuwait were also introduced. A300 B4 Simulator was also installed in this period. In 1993-94 flights to Jakarta, Almaty, Ashkabad, Baku, Al-aim, Fujairah and Parachinar introduced in this year. Air Safari flights were also introduced. The agreement for acquisition of B747-200 Simulator was signed. Ras-ul-Khaima was introduced in PIA's network in this year. Precision Engineering Complex ( PEC) turned into profitable sectio of PIA. PIA's organizational structure undergone was received and installed. PIA executed the purchase option on one used Airbus A300-B4 aircraft of lease from Air France. Haj operation from Sukkur and Multan carried out for the first time. Agreement was signed for the installation of SATCOM System in Boeing 747 and Airbus A-310 aircraft. PIA's tours promotion activity was upgraded to Divisional level. Cargo system revamping also started in this period. During 1995-96 helicopter service was intorduced from Islamabad to Abbotabad and Sialkot to promote tourism. PIA also introduced IslamabadNaran chartered helicopter via Bhurban. Boeing flights to Moenjodaro were introduced. Dera Ghazi khan and Sehwan Sharif were added to PIA domestic network. Beirut was reintroduced on PIA international network. PIA acquired one TU 154 aircraft on lease. A weekly Boeing 737 flight on Pansi-Sharjah sector was introduced. In 1996-97 additional frequencies were provided on Kathmandu by operating four frequencies per week with Boeing 737 aircraft. Capacity was also increased to Saudi Arabia by additional PEW-RUH-PEW and ISB-

LHE-JED v.v. flights. PIA flights to Yangon ( Rangoon) were introduced. Mianwali flights were re-introduced on domestic network. In 1997-98 second weekly Boeing 737-300 flight on Pasni-Sharjahpasni sector was introduced. A new twice weekly flight with A-3--/A-310 aircraft was introduced on Quetta-Peshawar-Quetta sector. The Athens flights were suspended and then re-introduced. PIA withdrew first class facilities on international flights effective 1st june, 1998. The airline will operate all international flights with Business and Economy class only. Flights to Zurich were introduced on Atlantic route by replacing Amsterdam. Amsterdam was introduced on the Paris/Copenhagen terminators. Toronto was introduced on the Frankfurt/ Washington flights. PIA re-introduced yangon flights effective 1st june, 1998 on alternate Thursdays. PIA'S HISTORIC FIRSTS The first Asian airline to operate a pure jet aircraft. The first non-communist airline to fly to the People's Republic of China, and to operate a service between Asia and Europe via Moscow. The first airline in Asia to induct the new technology Boeing 737-300 aircraft. An IBM 1401, the first computer in Pakistan, was installed in PIA. The first airline to introduce a second route to People's Republic of China over the Karakoram ranges. The first airline in the world to operate scheduled helicopter services. The first airline in Asia to show in-flight movies on international routes. PIA set up Pakistan's first planetarium at Karachi and later on Lahore. The first airline in South Asia to introduce auto-ticketing facility. The first airline in the world to fly to Tashkent, capital of the newly independent state of Uzbekistan. First airline in the world to start Air Safari with Jet aircraft.

ORGANIZATION STRUCTURE
PIA is a formal types of organization. Here are some of the major properties of PIA's Organizational Structure. As there is formal hierarchy and centralization decisions in the organization, so the objectives are said by the top management and then implemented throughout

the organization. The top management set the clear defined goals, so that subordinates put their efforts to achieve these goals in the positive manner. As there are defined goals, so management put their best efforts to achieve these goals. The top management set the clear defined goals, so that subordinates put their efforts to achieve these goals in the positive manner. As there is formalized organizational structure so top management makes the decisions in the hierarchical manner. So there is concept of centralization of decisions in the organizations. Each worker or manager is expected to be independent and not rely on anyone else. In the PIA, the policies are said by Government of Pakistan and then consulted and discussed by top management.

ORGANIZATIONAL MANAGEMENT
PIA's management has its roots in the rich and old culture of Pakistan , especially with regard to values, performance evaluation, personnel selection, and quality control and project management. It is characterized by teamwork, orientation around relationships and multi-level regulations.

"MANAGEMENT ASSESSMENT"
MANAGING AUTHORITY As a matter of fact, PIA is a formal type of organization. Here, authority and the use of authority is directed andinfluenced byuthe hierarchical strucurte and the seniority position within the organization. In PIA, the mega or strategic decisions are being make by the top management which includes chairman, and Board of directors of the airline. According to one manager, approximately 75-90% decisions which are of long-term nature are make by the senior or top management. He stated that employees are not allowed to take active part in such sort of decisions. The objectives are said by the top management and then implemented throughout the organization. In PIA the top management set the clear defined targets,

objectives and goals and then the employees put their efforts to achieve them. As far as the behavior with subordinates is concerned, the working environment is friendly more or less. The reason may be traced back to the nature of the business. Which requires the courteous behavior from all the of the employees. As a result, a strong " Companionship" behavior is developed in PIA. It stems from the " Compromising behavior". When comes the sharing of authority, we can say that it is shaared but upto some extent. The departmental head has the authority to dictate things to employees, but the employees do have some liberty and authority to do their jobs freely in their own desired way. The " Strict Authority" policy is being followed in PIA. Each lower level personnel has to obey the orders, filtered down to them from higher level and they also give feed back to their departmental heads. In managing authority, an important element is to explore that whether Autocratic/paternalism or participative style is adopted while making the decisions. As we know that the Pakistani culture is more or less authoritarian in social structure, with a strong inbuilt sense of vertical social order, discipline and dependence upwards. In Hofstede's terms, it is hig on power distance signifying sensitivity to the properties of rank. The same strong authoritarian social culture exerts a very strong influence on the working of the organization hence on authority. As there is formalized organizatinal structure, so top management makes the decisions, so there is a concept of Centralization in PIA. The decision making power of this State-owned organization regarding the operainal aspects has been delegated to the management prior to it in certain areas management has to take permission from the state and Board of directors for such decision-making. In PIA, the sense of authoritarianism remains powerful, so too does the grip of the managment on the org and on employees. Pakistan International Airlines is noted for his disciplined nature and his paternalist corporate culture. Another consideration is that, the sense of hierarchy and the emphasis on discipline and compliance is much stronger. So, this is an authoritarian and not a consensus-seeking culture in the main, and although the organizational climate is suffused with organization-worker mutual loyalty, the process of decision making does not involve extensive consultation. However, on departmental level for operational & tactical aspects, the group decision making is done. Professionalism and competence is also regarded and awarded. They do nominate the persons as successfull-persons of the year based on their

achievements make against the targets given to them. Favouritism is also practical in PIA, while hiring, recruiting, promoting, transferring and firing is done. And this can be attributed to our national culture, which has hampered the progress of our country. Discussion reviews, meetings are also held in PIA. And teh most visible form of this is the meetings held on evey Monday or after every two weeks by almost every department. In these meetings, the problems are explored, discussed and possible solutions are made. According to the sals & promotion manager, these short-term meetings have now become a " norm" because of the intensive and diversified competition in airline industry. He is of the view that in this way they can easily scan & seize the opportunities and thus can timely respond to the threates which are coming on the way. In this way, the use of authority is done in a way that subordinates feel happy and they work accordingly. And teh feeling of being consulted is developed among the employees. We can conclude, that in PIA the centralized and paternalistic sytyle of management is prevailing with the emphasis on: Centralized decision making by the top management. Favortism is considered. Centralized management style. Status & job level/position is important. Simple and small hierarchical structure of the organization. Able to respond rapidly to opportunities. Little weightage is given to participation at top level but on operational level, itis operationalized and observed. MANAGING RELATIONS Managing relationsl or personalism refers to the reliance on specific relationships as the means of ensuring trust in business dealings. In Pakistan International Airlines, the personal relations count a lot. As it is a government organiztion, lot of favors are givento the relatives, friends and families in many sphares of the business. For example, according to one manager the family member can be hired due to the personal relations and they have more concerns for them. Promotion manager stated that the " Quota system" is followed in PIA, where different value is given to different regions of the country. He narrated that no strict qualification is required becuase the personal affiliations and contacts are considered more.

In PIA the back-up supports have been put in place and interpersonal trust and the use of networks of connections is entensive. As, we can see that the Pakistan is a society with strong familism, so it also put pressures on the different organizations. Another thing perceived is that throughout the organization a worker's ability to get things done in the world of airline business is a result of the misture of both personal competance and the size & strength of his or her relations or contacts. It is a form of personal capital and is carefully built and protected. The maintenance and extending of it is a matter on which much time is sptent. But one of the consequences of this system of trust building is that outsiders, for example executives on assignment from multinationals, are a t a disadvantage, the rationally presented business proposition has less value then it would have be in the home context. So, an alternative means of guaranting reliable business relationships has to be used; this is interpersonal trust or more accurately, the use of network of connections which place people in webs of obligations. We, we came to know that the use of relationships varies with the need to use them. One manager said that this is vital in work as much as outside it to maintain a good network in which you yourself are accepted and respected. In PIA the employees try to preserve harmony among colleagues so tha they can collaborate constructively. It is strong cultural characteristic of Asians, as compared to the Anglo ( especially Americans), who are of the opinion that a certain amount of difference of view, openly expressed in arguments can be productive, by leading to fresh ideas and keeping managers " on their toes". As Asians societies are collectivist, in Hofstede term, PIA ( as Pakistan) is a highly collectivist organization. Here relatively, stronger values are giventothe provision for everyone of training and good work conditions. The example of this can be a " PIA training centre" at Karachi, where comprehensive instructions in all major fields is given under one roof. They are training its pilots, mechanics, technicians, traffic, sales staff and cabin crew. During these training classes and courses, the relaiton bonds between employees are developed regardless of the consideration of the region. In PIA, identity becomes bound up with the dependencies which accompany such bonding and which are supported in the society's value systems. According to many workers, they learn to fit in, to conform and not to present themselves as distinct, different or outstanding in any way. That is why the organization tend to avoud the measurement of performance at the individual level. The focus is more on group rewards, (as departments work as a goup/team) as in team incentives. But, relationships tend to have

a strong effect on behavior in PIA. A negative outcome for employee is that loyalty to relatives may exceed loyalty to the firm. MANAGING ONESELF For managing oneself, PIA ( and as Pakistan) is middling on the characteristics which has been called masculinity-femininity. There is much degree of formality and punctuality withing the organization. The employees have their schedule for their work directed by the upper management. Due to these things, the employees have a tendecy to take challenging task, take risks. They have a close eye on environment which is very much competitive and then they seize opportunities and try to find out any potentiality for advancements. They try to work harder, so that they can be promoted to the higher level and thus can secure their jobs. In PIA, they are having a very good performanace appraisal system which forced employees to continiously improve their outputs ( e.g as sales people try to achieve targets). From the interviews, with employees it seems to us that they are very energetic, ambitious and competitive. They are self-initiative upto some extent. On the other hand. As it is already seen that, they also go for good relations with their colleages. According to Sales & Marketing manager, they have a very friendly working environment in PIA. He stated that everyone in the departments compensates each other and helps others while they need it. They alsotry to extend relationship beyond the " Job" towards their fellows. Employees needs are fulfilled by givig them lot of fringe benefits in shapes of paid leaves, bonuses, allownces etc. So, on the whole we can say that PIA has got a "mixture" of both of these dimensions. MANAGING TIME As Pakistan has been a part of Indian continent, so,it can be categorized as " traditional" society with its strong and rich history. Pakistan is an older society, so they are conservative in thinking and slow to change. But if we compare this phenomenon with Pakistan International Airlines, we can easily recognize the fact that, PIA is very much keen to respond to changes. This can be steemed from the fact that: The have made alliances with many airlines. They have agreements with other airlines like agreement signed to link PIA reservations with Sabre, Galileo and Amadeus-Global distribution system ( GDS). Agreements signed for installation of SATCOM system in Boeing 747 and Airbus A310 aircraft etc.

 PIA also helped in the development and establishment of emirates airlines. It is also supporting other airlines. Adherent to extensive competition. Trying to nurture new ideas & innovation etc. So, these are the things related with their respinsiveness to change. But it is also an admitted fact that, due to an government organization, they have many bottlenecks and flaws which lead them towards traditionalism. They use of red-tape still exits in it. Administrative and procedural flaws are also present in PIA. They are not so " immediatist" as they should be. They are slow in decision making in some matters. But, they are also future-oriented in a variety of ways like: Automation in 1. Reservation system. 2. Flight monitoring ( FREPAK). 3. Departure control system ( DEPAK). 4. Haj operations. A developed training centre ( Karachi), where comprehensive training is given to all types of employees ranging from cabin crew to pilots and engineers. Running of two modern, weel-equipped flight kitchen at karachi and Islamabad. Here production and operation sections are operating. High quality standards are maintained. A huge catering stores complex, having the capacity of storage of catering items for four months requirements. Food testing Laboratory at karachi flight kitchen. The laboratory is equipped with most modern and latest equipment. Promotion of sports etc. Overall, they are very much future-oriented dueto intensified and varified competition ahead of them as new private and foreign airlines are coming on the way. MANAGING UNCERTAINITY As uncertainty is an unavoidable fact, the PIA is weel-equipped to cope with it. As well as the employee's committment towards uncertainity is concerned, they are very much committed to it. They always try to provide good services to their customers. Most of the employees are loyal to the org.

They have also written and procedural manuals which guide the behavior ofthe employees. Most of the learning is implicit in nature. The following things show that they are trying tocope with uncertainity in many ways. Trying to make alliances/partnerships and agreements with airlines from all over the world in order to reap the benefits. Continously updating its Fleet. PIA has many subsidiaries like: 1. PIA HOLDING COMPANY. 2. DUTY FREE SHOPS LIMITED. 3. INTERNATIONAL ADVERTISING LTD. 4. PIA HOTELS LIMITED ( DORMAT). 5. PIA SHAVER POULTARY BREEDING FARMS. 6. MIDWAY HOUSE ( PVT). LTD. PIA has associated companies ( overseas). 1. PIA INVESTMENTS LIMITED. 2. MINHAL INCORPORATED ( PAKISTAN) 3. PAKISTAN SERVICES LTD. 4. PAKISTAN TOURISM DEVELOPMENT CORPORTION. They have also colloboration with many hotels. So, all these, things help in retaining and to capture more and more customers. They have a wide network both on domestic and international level. A very important thing is that their " Precision Engineering" has helped them to make very latest aircrafts and parts. The PIA is very much infected by the political and government pressures and that is why it has experienced a dificit of Rs. 17 billion and has taken loan from IMF. They have launched extensive training programme for all of their employees. Air cargo business is also operating well. So, we can conclude that they are trying to cope with uncertainty in many ways. They use teams, groups, committees for special purposes. Employees loyalty plays a big role in crises handling. They are very much hopful that new Chairman and new management will try to bring PIA out of these difficulties.

MANAGEMENT FUNCTIONS IN PIA

PLANNING

In PIA most of the times planning is done at the top management and little autonomy is given to the lower level employees to do so. Top management, which includes the chariman and board of directors and functional heads, takes the strategic decisions on which future strategies are formulated and plans are developed. Here, the policies are said by Govt. With the help of top management. The decision-making power for some operational matters has been delegated to the management. But they have weakness in incorporating complex activities which require extensive professionalism, sophisticated coordination and decentralization of decision power. Here the decision making is not so quick as well as its implementation. The planning is said to be in the hands of the seniors. As there is formal hierarchy the objectives are set by the top management and government. Accoridng to one executive, the see business as deal making and opportunism. ORGANIZING According to managers, organization is very much organized as both individual and group tasks are assigned here in PIA. The jobs are assigned in such a way that every one is asked to organize and work around his own duty and work. Here the culture of mutual work has been developed. Here all the departments are organized in a harmonial way which ends in a synergic effect for the whole organization. All the functional things are very much organized and disciplined is maintained here. LEADING The PIA's leaders consult their subordinate on proposed action and decision and encourages participation from them. This thing is very much promiment on departmental level and also on regional level i.e. the D.M. ( District Manager) very much active in leading the people. Some important characteristics of the managers/leaders in PIA are: Consult employees about important decisions. Have harmony among its members ( management/labor). Have employees who are well informed about decisions. Are responsive to employees needs. Make decisions after bargaining/negotiating among managers of different units. Try to motivate the employees by satisfying them with monetary benefits and with other fringe benefits like recognition, friendly environment, appreciation letters, problem solution with consultancy etc. CONTROLLING

In PIA, the controlling function is performed by the seniors who are up in the hierarchy level. They keep the records of all the things. For sales and marketing department they have targets to be achieved by the sales force. Then they continously keep the check on it. They take the feedback from employees. They have the employee's performance appraisal system throught which they come to know about the areas which are needed to be developed. They also take corrective and preventive actions where they are required.

TRADITIONAL MANAGEMENT
The development and practices of Pakistani ( and of PIA) management have been heavily influenced by the cultural traditions of the country. Many ideas regarding the work ethic, performance evaluation, personnel selection, accounting systems management production and quality control have been applied for centuries in work and business situations. 1. 2. 3. Management by standards and rules; Management by strategy planning and the control of personnel; Established practices for responsibility and authority within organizations.

FINANCIAL & ACCOUNTING MANAGEMENT

The formal PIA accounting system is primarily as a performance evaluation system, with indicators for promotion and demotion. comprehensive volumes of accounting records. There existed a

PERSONNEL MANAGEMENT
PIA has stressed the principle of understanding counterparts for every success, advocating the importance of understanding the characteristics of subordinate, task and situations in management. They too have a comprehensive system of personnel examination and selection. The emphasis is on multi-level screening, competitive selection. The personnel examination system became more complicated, incorporating four aspects of assessment: Ability Morality Performance And Seniority.

TEAM MANAGEMENT
Another principal used in management is the team approach , including group decision making, group reward, group responsibility and team management. The team work in PIA has been especially effective in the field of quality management, and where the collective efforts in needed to get something like sales and marketing, ticketing and customer handling. Good interpersonal relationships within teams is emphasized as crucial to a successful management. Another importanrt feature of PIA is that Linking individual interests with group and organizational interests has been greatly encouraged to facilitate higher organizational commitment and effectiveness. Loyalty is further encouraged via the provision by organizations of housing, medical care, childrens daycare and services for retired employees.

HUMAN RESOURCE MANAGEMENT

In PIA Various kinds of reward systems have been implemented as a supplement to the fixed and structured wage system. Most of these include multi bonuses and are linked to an enterprises economic efficiency. A comprehensive training centre has been established in order to raise the competence level of the workforce. The management educational programs running since the early 1980s have trained million of managers and supervisors. Courses regarding programs on general management and have been introduced. They have a Personnel strategy, which focuses upon the quality of skills, knowledge, expertise, attitudes and motivation.

TECHNOLOGY MANGEMENT
Innovation and the new technology development is a strong characteristic of PIA culture as they are automating their workings like ticketing, reservation system, kitchen, and all of its operations. A new management information systems are now being operated in PIA. They view skills or expertise, system link or networking and participation as three facets of an interface hierarchy among people, the computer system and an organization, interaction among which influences the effectiveness of technological innovations.

MANAGERIAL DECISION MAKING

The decision making power rests in the hands of the top management. Assessment centers are now used to select top managers with the aid of group simulation tasks. According to managers, the decision making involve:

 1. 2. 3.

Administration; Ideological work; Production; Technical work; Marketing; Welfare; And personnel. The PIA managers and leadership do the: performance; maintenance; and morality ( namely, honesty, integrity and organizational commitment). They reported that they also make the use of participative decision-

making.

AUTONOMY IN MANAGEMENT
The decision-making powers of the State-owned enterprise has been delegated to its management but they also have to take permissions from the Government of Pakistan regarding policies and for important strategic decisions. Management has expanded the decision-making power by allowing the functional heads to take the decisions of some sorts which are very specific to their work. PIA has the autonomy to plan their own production and operations; market their products; determine prices for their products; purchase their own materials; manage their own funds and handle their own production systems. Greater authority has also extended to domestic operations that were jointly managed by two or more domestic managers.

OBJECTIVES FORMULATION
As there is formal hierarchy and centralization decisions in the organizations, so the objectives are said by the top management and then implemented throughout the organization.

GOAL SETTING:
The top management set the clear defined goals, so that subordinates put their efforts to achieve these goals in the positive manner. As there are defined goals, so management put their best efforts to achieve these goals.

POLICIES:
In PIA, the policies are made with the combinational of both govt. And top management.

CENTRALIZATION:
As there is formalized organizational structure so the top management makes the decisions in the hierarchical manner. So there is concept of centralization of decisions in the organizations.

British culture. English, scotesh welsh combine to form the British culture. Population is 58 million and trfal area is 244 thousand iquare miles. Britishers were ruled by romans in oldentimes, they have non propertionate voting system, they are traditional people and believe in trust and traditions don not have written constitution Economy is industry based, shiping iron, coal are the major industrial sectors. Government is rich and finances the unemployed citizen with allowanced British people are liberal and proud of their traditions, give less importance to relations as compared to performance and competancfe they accept the change very slowly and give more umportance to the past believe in short term planning and there is no speciality in job performance. They believe on less for malization and less documentation. Job autonormy & Job dedications is present in the employees of the company and conflicls are resolved by the mutual consultaney. Britishers are slow to put idea into aciton thats why they are slow in micro electronic and robetic technology as compared to their competitiors. They believe in Decentralization, negotifation and less bossing in centrolling system. British people are less emotional less ohedient to seniors, more able to cope with new and uncertain situation, accept responsibility, more disciplined and more self ontrolled. British Airways INTRODUCTION

British Airways has led the world in customer seroice and satisfaction for many years by ceaselessly imporing & developing its sevoice, on the ground as well as in the Air. Flying with British Airways gives the flexibility and convenience supported by high standards of customer care making British Airways the worlds favourite airline. British Airways started its operation in 1929, since then it is in contineous operation, as far as such continent in concerned, before partition et was operating with the name of British imperial Airway . Now British Airways is operating in almost 130 countries of the world, British Airways is a public lemited company. However it has some joint ventures with the other Airlines namely i) ii) iii) iv) v) vi) vii) ix) Aer lingus America west airlines Crossair Emiratles Finnair Eberiao Lot Qantas

viii) Malev These ventures are limited to certain flights British Airways has certain franchised partners specialise in certain lontes & regions namely. i) ii) iii) Base Airlines British Regional Airlines British mediterranean airways.

iv) v) vi) vii) ix) x)

Brymon Airways City flyer Comair GB airways Maersk Air UK Sun airof scandinavia

viii) Loganair

British airways is providing quality services to its customers with four different names. i) ii) iii) iv) world traveller first British Airways club world British Airways Concorde British Airways.

Management Style. Authority Management British airways posess two participative style of Mgt in which the employess are given the authority to take part in the decission making and the employess ideas, suggest are entertained properly and inadditior to this employees are given approprate authority for the better functioning of the organization. Managing Relations. Merit is strictly followed and organization is only met to do the business so any personal relations and undue influence does not have any impact on the employees and all the employees of the organization are strongly dedicated to their work.

As far as recructment in the organization is concerned, it is strictly on merit, individual IQ and potential are higher from the market having high exposure. 3) Managing Oneself. All the employees of the ortganization are given due respect inside the organization, so all the individual needs interonel of self respect, monetary rewards are fully satisfied. Salary side is negofiated through unions,incremeuts and bonuses depend upon the station & performance. For the sake of providing quality services & paying due respect & satisfying the customers need British airways has recently purchased new planes having con of 30 billions. 4) Managing uncertainity: British Qirways has written rules & regulations hawever these rules and regulations are of flexible nature which changes with the passange of time and in accordance with the environment making and the employees ideas, suggest are entertained properly and in addiction to this employees are given appropriate authority for the better functioning of the organization. 2) Managing Relations. Merit is strictly followed and organization is only met to do the business so any personal relations and undue influence does not have any impact on the employees and all the employees of the organization are strongly dedicated to their work. As far as recruitment in the organization is concerned, it is stictly on merit, individual IQ and potential is checked and normally people are higher from the market having high exposure. Managing Oneself.

All the employees of the organizaiton are given due respect inside the ortganization, so all the individual needs internal of self respect, monetary rewards are fully satisfied salary side is negofiated through unions, incremets and bonuses depend upon the stations & perfrormance for the sake of providing qualtiy services & paying due respect & satisfying the customers need British airways has recently purchased new planes having con of 30 biooions. Managing uncertainity. British Airways has wrtten rules & regulations however these rules and regulations are of flexible nature which hanges with the passage of time and in accordance with the envormental as far as employees connitment is concerned, they are well committed to their organizations because they are given the proper training, previonsly training was given in the london but now it is the responsibility of the regional manager to proper by train the employees. 5) Managing time. British Airways believe in the globalization that why they are future oriented challenge seeker and traditional Approach avoider. This organization has deep look on the confchtion, but overall british airways has no compethtor , as far as pakistan is concerned, PIA is the major compoetitor of british airways. Management Functions. Planning: Fiscal year of british airways starts from april and ends in March top management is responsible for planning, and budgets and targets are set by ie.for this purpose organization has different deparments, the prominent ones are

i) ii) iii) iv)

Finance Deptt Sale Deptt Securtiy Deptt Aircrarft Mgt Deptt

Before planning or setting the Goals the top Mgt consider all the factors such envoirnmental Economic etc as well as employees suggestions are also considered. 2) Organizing. Team as well as individual tasks are assigned and at the end of the month the progress is evaluated. If an employuee or a team is failing certain problem then he they are allowed to consult directly even with the top Mgt or the person at any Mgt level without any hesitation so the problems are directly solved in British Airways. Leading. Employees are motivated by the monetry as well as no monetry exist between the employees of the organization as well they share the problems with each other Bonuses, increments recognition awards, tree tour to different countries are arranged by the organizations so as to motivate the employees and achieving the targets. Controlling. Individual performance is evaluated at the different interoals of time, however the organization does not have strict control over its employees, and if the targets are not achieved people are not fired untill & unless. i) ii) iii) They posess the casual attitude. Not performing the job (for long time) Involved in malpractics.

Basic working style of British Airways.

Working style in British airways is very fascinating on one side by on the other side it is quiet complex one. i) ii) These is no speciality of job performance, any one can perform any type of job but the basic requirement is the professional competance. New technology is being used in the organization to facilate the customers, all the office of British airways are connected with each other through componters i.e they have their own sites and e-mail adresses and all the employees have their own computer as far as terminals booking is concerned it can take place at any time at any place of the world. iii) Hierarchy in the organization is in existance, in pakistan there is one country manger, then come regional managers and below regional managers and below regional managers are sales mangers and clerical staff so it is a large scale organization and powers are evenly distrbuted, it means that every one has his own powers according to his job. iv) v) Competitive priorites of British airways are I) Quality services No compromise on faver. ii) Best planes iii) Good safety standards iv) new and inovative seroices V) British airways believe in short term nesults & stay for longer time that & why short term & long term plans are made and quality is not sacrificed for profit for e.g of the passengers are in less number even then flight is not concelled.

Country culture in comprison with company culture.

i) English people believe in trusty tradition but British Airways culture is based. Country Culture 1) On future orientation seeking. 2) They believe in less documentation. 3) Less criportance to personal relation as compared to competence. 4) Accept the change very slowly 5) Believe in short term planning. 6) There is no speciality in Job performance. 7) Less formalization Job autonomy & Job dedication are the cultural characterize 8) Conflicts are resolved by mutual consultancy. 9) Slow to put idea into action and technology. 10) They believe in decentralization & less bossing. There are written rules & regulation to follow Same is the case in the organization. Develop Rapid changes and implement them. Believe in Both short term & long term planning. Speciality is net given the impertance anyone cnan perform any type of Job. Organizational characterstical are more Job Autonomy & dedication and less formalization conflict are resolved by Guidance & consultation. Information flow is quick and new & advanced Techanology is being used.

There is no strict control goals are set by the top mgt with employees consultancy.

Impact on the Organization due to working in Pakistan

British Airways is not facing too much difficulty due to its operation is pakistan becasuse their major fawrs is to work in accordance with the pakistnai culture and to fulfill the needs and wants of the pakistani people, thats why they have some deviance from the main culture for e.g they are readily adeptive to change. New technology is being used, future oriented and have deep look on the neew challenges.

ARAB CULTURE AND MANAGEMENT SYSTEM Whilst the arab nation differ in how far they are specifically constitude on the religious bases. Islam takes up the consulttive aspect of authority. Whise consultation by those in authority. Objective of leadership in Islam are the application of Sheriah and the creation of an atmosphere conducive to generate prerequisites for the Islamic order. This sublime goal should be the objective of the Muslim leader. If he is to enjoy the support, obedience and laoyalty , he will enjoy it by the mercy Almighty Allah. AN ARAB OR ARAB MANAGEMENT The arab culture has certain distinctive characteristics which dominate managerial thinking and behavior. Some management characteristics are as under: Within an organization status, position and seniority significantly outweigh ability and performance in importance. Organization are centrally controlled with low level of delegation. Subordinates act with obedience in the formal hierarchy of authority. Authoritarian management style is pre-dominanat. Decision-making is constantly pushed upward in the organiztion. Most decisions and committments are re-negotiable at latter times. The decision making process is influenced by prevalence of paternalistic and familiar patterns. There is an absensce of western style of democratic system. Consultative style of decision making is pervasive and dominant. Management is reactive and crises-oriented.

 Organization members are motivated by affliliation and power needs rather than by performance objectives. Social formalities are extremely important. Innovaiton and risk taking are the activites which seems to be more often punished than rewarded. Low trust atmosphere and political gamesmanship characterize the organiztions, togather with close information systems and low levels of disclosure to organiztional members. Constant change and high level of uncertaintity at work. There is a strong preference for person-oriented approach rather than task-oriented approach in managerial activities. In group affiliation and group interation, kinship ties are important. Nepotism is regarded as natural and acceptable. Arab managers view their organizations as family units and often assume a paternal role in them. They value loyalty over efficiency. There is strong adherence to the open-door traditiion. It is an integral part of the underwritten or informal organizational structure. Punctuality and time constraints are of much less concern than in western cultures. Managers rely upon family and friendship ties for getting things done within an organization and in society in general.

INTRODUCTION OF EMIRATES AIRLINES Emirates is the world best airline. It started its operation in 1985. Its first flight Dubai to Karachi was on 1 October, 1985.it has 15 year of experience of providing quality airline. It is operated over more than fifty destinations. It is developing its operation it offer the travelers different incentive. Its provides best service. Still it is improving the quality of service. It is expanding its operation. It is establishing links with other airlines to offer the passenger more efficient and convenient services. It has four operating stations. It has more than hundred airplanes. It started its operation in near pat but now it is the leading airline in world civil aviation. Because this company is providing the consistent record progressing .it provides high standard during the journey. It has continued to grow to stay abreast of the demands of passengers the ease and convenient of having all facilities under one roof. It is also improving its service for business people. Management style Managing authority Management style in emirates Airline is very good and quiet fascinating one. The all employees within his own capacity share all the employees are allowed to take part in decision making and authority. So the suggestion,

recommendations, analyses are welcomed and are given appropriate considerations. Managing relation Emirates airline is the service organization so developing good relation is the basic requirement. In addition to this, it is the company strategy to give incentives and quality service to customers, that is why the organization keep contact with its customers and frequent visit and the employees are required to do the sale calls. As far as recruitment is concerned, in this particular process merit is strictly followed and any personal relationand attachment is not given any consideration, for purpose advertisement is given in the newspaper in Dubai as well as in Pakistan. In this way recruitment is take place in the organization. Managing oneself All the employees and top management is determined to make this airline world no.1 airline and to achieve this task, top management is trying to fulfill all individual needs in monetary as well as in non monetary terms. That is why before making the contract the top management mention all the terms and conditions. In addition to this training is also given to the employees in emirates training college Dubai. So promotion take place on the basis of seniority and performance. For this purpose performance report is prepared at the different interval of time. Here it is worth mentioning that in emirates airlines different grades are allocated to the employees and grade 4 is the start of the officer grade. Managing uncertainty Uncertainty can only be managed with the employee's commitment. So as far as this organization is concerned all the employees are fully committed

because organization is fulfilling perfectly all the needs and wants. All the employees are given 30days paid vocation and all the leaves. In addition to this annually tickets are also given, employee are well aware about their jobs because there are written rules and regulations to follow. and all the employees have their own E-mail account and computer terminals Managing time Rapid growth is evident that emirates airline is facing the challenging in an appropriate way and the organization is future oriented. In a sense that they are opting the latest technology to facilitate the customer for this purpose. Emirates airlines has intention to operate the A3xx double Decker Planes. As far as competitor are concerned .there is a single competitor which is 'PIA'. In order to compete with PIA, emirates airline is operating daily flight to Paris. Management functions Planning Planning is an essential part of any operation, however emirates airline planning take place at different levels. For example if the company is going to start a new route or new aircraft's then top management will make decision. If the decision is about number of employees or to setup a new official then all the planning would be made by the country manager. Before planning all the suggestions of the concerned employees are given proper importance Organizing Individual as well as group tasks are assigned in this organization. All the tasks are always achieveable and progress is checked at the different intervals of the time. If the employees face any difficulty or any ambiguity

regarding those assigned tasks then they are allowed to consult with their seniors or even with the top management, if required. LEADING In order to motivate the employees, different tools are used. Such as: Increments. Bonuses. Recognition certificates. Promotions are awarded to the employees. 30 days paid vovations and casual leaves. Free travelling. Training at the headquarter. Individuals and group tasks are designed in such a way that these are easily understandable and line of action is properly mentioned. Even them if tasks are not achieved, people are not fired from the organization. CONTROLLING Top management has strict control over its employees. All the employees have to wear a proper uniform. Individual and collective performance is evaluated. In case of any malpractices or intentional non-professional attitude, a strict measures are taken. And employees may be fired from the organization. Customer dealing and presentation styles and all the factors regarding gestures, pshchological training are given to the employees. And it is also checked during the sales calls. WORKING AND MANAGEMENT STYLES IN EMIRATES AIRLINES.

 In Emirates airline there is no speciality of job performance, any person can perform any job. For example the marketing person can perform the job in reservation department. While a finance person may perform well in Cargo or in Ticketing departments. Challenge-seeking, risk taking and initiative taking are the major characteristics of this airline. Because these are of survival nature. That is why the Emirates Airlines competing with PIA and other airlines of the world in an appropriate way. Within an organization status, position and seniority significantly outweigh ability and performance in importance. Organization are centrally controlled with low level of delegation. Subordinates act with obedience in the formal hierarchy of authority. Authoritarian management style is pre-dominanat. Decision-making is constantly pushed upward in the organiztion. Consultative style of decision making is pervasive and dominant. Management is reactive and crises-oriented. Organization members are motivated by affliliation and power needs rather than by performance objectives. Innovaiton and risk taking are the activites which seems to be more often punished than rewarded. Low trust atmosphere and political gamesmanship characterize the organiztions, togather with close information systems and low levels of disclosure to organiztional members. Constant change and high level of uncertaintity at work. There is a strong preference for person-oriented approach rather than task-oriented approach in managerial activities.

 In group affiliation and group interation, kinship ties are important. Nepotism is regarded as natural and acceptable. Arab managers view their organizations as family units and often assume a paternal role in them. They value loyalty over efficiency. Working envirnoment in Emirates airline is very freiendly and employees are provided with the comfortable workign atmosphere. In addition to this privacy of the employees are kept and no interferance in the personal life is allowed. Emirates is using new and latest technology. All the offices in the world are connected with each other and information flow is very quick. To facilitate the customers, emirates airline have achieved a remarkable status in terms of ticketing, cargo, information availability and latest and well equipped aircrafts. Appropriate job autonomy is given to the employees and their problems are solved with mutual consultancy and in case of any conflict among the employees, it is resolved in a way that no employee feel embrassement. Planning in Emirates airlines is short-term as well as long-term. Howevcer, organization believe in short-term results. Service quality is not compromised over profits. As far as goals are concerned, these are not too much rigid. These are evaluated and changed with the passage of time.

NETHERLAND CULTURE AND MANAGEMENT

Netherland is in the northern Europe. It is included in the germanic countries. It was the part of holy Roman Empire. They were called protestants when the European Christendon was splited. People of this area are among the best established economically, with some of highest standards of living in the world. As for as managing authority is concernced, they are on the low power distance level. Employees don't regard authority as whose words ought to be accepted without question. They prefer consultive style of management. They consider only the greater experience, technical knowledge and greater competence. In terms of managing relations, it is inclined towards individualistic and less authority consious. They wish to keep their family life personal. They give more important to their tasks and expertise required in their jobs. The ambitious look to improve their skills, trainiing and education. In regard to managing uncertainity, it is found towards the little bit higher end of scale of uncertainity. People here are found highly anxiety people. Usually high anxiety people are uncertainity avoiding people. As far as managing oneself is concerned, there is a great difference among the netherland culture and other germanic couuntries. It presents a quite different picture. People of north European emphasize on achievement of task and have masculine work-related culture. While Netherland has faminine work-related culture. In terms of managing time they give much importance to future planning, so they are very much future-oriented people. They try to see over the eyes and try to explore things in advance of time.

INTRODUCTION TO ROYAL DUTCH AIR LINE KLM royal Dutch air line is a pioneer in the in world of civil aviation.established in 1919, it is the longest operating scheduled airline still flying under its original name, with over 75 years of experience in providing quality air line service. KLM is a company with a consistent record of continuing growth and success in business. It continually adds new destinations to its timetable, today flying to over 150 destinations in over 80 countries on six continents. KLM is the airline industry leader in commercial partnerships, forging ties with other carriers to create the first truly global airline system. Through the end century and beyond, KLM will continue developing its service to anticipate the needs of world travelers and shippers. Brief history KLM royal Dutch airline KLMs owes its beginning to two young Dutch entrepreneur who saw the golden opportunities offered the then new means of transport: the airplane. Albert plesman Anthony Fokker KLM has played an active role in the development of the civil aviation to its full potential. From the outset, both passengers and cargo were carried. Only four years after KLM's first flight , the first experimental departed for the former Dutch east indies,now Indonesia, on October 1, 1924. In 1934 KLM introduced all metal aircraft by gaining first place in the first European airline to acquire the DC-3, nickname of Dakota.

World war 2 temporarily halted operations except for development of the Caribbean network and flying on the Bristol-Lisbon-Gibraltar service, which Winston Churchill called the life-line. At the end of the war KLM'shomebase, Schiphol Airport near Amstterdam, lay in ruins and the airline had lost nearly all its aircraft. In what was perhaps his most action , Plesman immediately traveled to the United States to return with 18 four-engine DC-4 Skymasters and 30 DC-3 air craft. `KLM's rebirth was spectacular. Six month after the war's end the technical and operational infrastructure had been sufficiently restored to resume flights to Jakarta, Indonesia. The pre-war network was rapidly rebuilt and on May 21, 1946,KLM was the first continental European airline to re-establish services to the USA. Australia was the last continent to be linked directly to Amsterdam,in 1951 It introduced DC-8 in 1960.DC-9 were introduced in 1966 The completion of KLM's third cargo building at Schiphol (1992) raised the company cargo handling capacity to the current figure of 800,000 tons annually. In order to cope with ever increasing demand for air cargo capacity, KLM has ordered Boeing 747-400F full-freight aircraft. KLM has strong tradition of serving business travelers it offer dedicated cabins on board and designated check-in desks and lounges, in most airport around the world. KLM has a longer record of public service than any other airline. Founded on October 7, 1919,the airline operated its first scheduled flight on May 17,1920,from London to Amsterdam. This is now the oldest existing scheduled service operated by the original airline. First years of operations:

Four aircraft Distance flown; 82000 kms 345 passengers, 22000 kgs cargo first animal transport : bees! Current status 120 aircraft including subsidiary KLM city hopper more than 150 destinations in more than 80 countries on six continents. Distance flown: 304 million kms 13.3million passengers and 612000 ton freight

MANAGEMENT ASSESSMENT MANAGING AUTHORTY As for as managing authority is concerned there is participative style of management in the royal dutch airline (KLM). Position does not matter they emphasize on personal competence. All the employees feel no fear from their bosses. There is friendly environment. They do not feel any fear to disagree their bosses. Their manager told us that most of the time he disagree his boss. Their top management empower them to take part in dicision making. All the employee like this style of management.they dislike the order to do with out any question. When they feel any difficulty they are free to ask. They have right to object the thing and they justify their argument If we view this organization in term of power differences then it will be low power difference organization. here allthe employees have equal right to take part in decision making

Managing relation
If we discuss the KLM interm of managing relation there is impersonal treatment while doing work they do not respond to any personal relation or any undue influence.in the office they donot respect any personal relation they respect only knowledge they never welco their friends and relatives or relatives at cost of their business.

They always consider merit while recruiting. They only hire the best people. Qualified and competent person can survive in this organization, They do not meet with their friend it does not mean that they don't have any regard for their friends they abstain from meeting the friend while they are they are doing work.because they are committed to their work. In term of individualistic or collctivistic they are collectivist because they love to the work with their colleagues they help each other in the office and out of office. Managing oneself They see their employees a highly valuable asset for their organization. They give different incentive for the motivation of their employees. They give rewards on the basses of the personal achievements not on the personal relation with the boss. They always discourage this type of culture. They secure their job through their work not through the social acceptability. They only emphasize on doing not being. They give incentive to their employees, which give them maximum satisfaction they give two bonuses year, leaves, pay rise, promotion. They offer free visit tour to different countries if the employees meet their targets. They have strong need for achievement. There is masculine work related culture. People in KLM are very hard working. They prefer to do challenging jobs. When we visited the KLM organization they were very busy then they gave us time after the office time. They told us that they never compromise over their work. They are very satisfied with their

rewards and standard of living they are availing in the company. So that is why they are highly motivated and have the strong need for achievement Managing uncertainty In term of managing uncertainty they are very much uncertainty avoider. They follow all the rules and regulation. They have complete framework of the rules and regulations. Even they don't break rules if it is lucrative for the management. They do all the things informal way they wear uniform in the office they don't allow their employees to deviate rules and regulation otherwise they take necessary action. In this way they feel confident that they are doing the thing in a way that should be done. They feel secure. Managing time In regard of managing time KLM people always want to make the thing more good. They regards their tradition values but they plan for future. They are very rapid to change. There is the following list of things which is started by the first time. First commercial animal transport, Nico the bull flies from Rotterdam to Paris. First European airline to introduce the all - metal Douglas DC-2 First European airline to train flight attendants. First European airline to order the Douglas DC-3the most widely used twin-engine transport aircraft. First European airline after world 2 to operate scheduled service from Europe to north America First European airline to operate the Douglas DC-8 First airline of the world to operate the Boeing 747B(heavier and with largest range than the747)

 First airline of the world to operate the 747combi First airline to introduce extra facilities for full fare passenger: the FFFsystem First airline in the Europe to operate the Boeing 747-400 First European airline to introduce wider European business class seats First European airline to introduce the pan-European business flyer program First airline to offer a joint global service with a partner: World business class intercontinental business class together with Northwest airlines. First joint winners of Airline of the year Award with airline partner, Northwest Airline. These were the KLM firsts, which shows that this company was very innovative organization. Along with all the employees of the KLM are very much time conscious. They do never want to be waited and they do not keep the other person waiting. Management functions Planning They do planning on all the management level. Top management set the targets lower level of management. All the management level set their own goals and objectives to achieve their targets. Top management is only responsible for targets and overall goals and objectives. Lower level is responsible for planning on their own level. Organizing KLM people do every thing for the organization. They don't think that he is working for the department they believe that they are working for the organization. The finance worker can do the job of selling department. If

they feel any difficulty they consult their seniors. They discuss it with the top management. Top management does every thing to solve the problem of their employees. Leading LKLM people are rewarded different Incentives Company very much conscious about their people. They only motivate their employees by the things through which they get maximum satisfaction. They give yearly bonuses, pay rise, free tour and different increments. Controlling There is a strict control in KLM. Even they have to wear uniform in the offices. If their employees deviate from the norms, then they are corrected on the way. If the performance of the employee is not upto the mark they take corrective and preventive action and try to built the performance. In KLM performance report for each employee is prepared at the headquarter and being continiously monitered and evaluated. WORKING STYLE OF THE ORGANIZATION. Pakistan is one of its station, so there is a regional manager. There are two divisions under this division south and north. Each division has sales manager and he is responsible for all the activities in his division. Now they are operating only in south. They are very innovative in working styles as they empower their employees fully to take part in decision making activity. They are offering different incentives along with the good services to the customers.