BP Project

Business Policies of Pakistan International Airlines (PIA)
Table of Contents
CHAPTER NO. 1.........................................................................................................................
Introduction..................................................................................................................................2
Overview of PIA..........................................................................................................................2
Vision...........................................................................................................................................2
Mission.........................................................................................................................................2
PIA’s Networks............................................................................................................................2
CHAPTER NO. 2.........................................................................................................................
Literature review..........................................................................................................................2
CHAPTER NO. 3.........................................................................................................................
Analysis........................................................................................................................................2
Recruitment & Selection Policy of PIA......................................................................................2
Training and Development Policy of PIA....................................................................................2
Pay, Compensation and Benefits of PIA......................................................................................2
Retirement Policy of PIA.............................................................................................................2
CHAPTER NO. 4.........................................................................................................................
Discussion....................................................................................................................................2
CHAPTER NO. 5.......................................................................................................................2
Conclusion, Recommendations & Future Research....................................................................2
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CHAPTER NO. 1
INTRODUCTION
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INTRODUCTION
Business policies are the guidelines to action and decision-making within a given organization.
These represents the obvious expression of the organizational attitude towards the environment
within which it operates and towards its operational and management activities. Policy is a
deliberate course of action which is adopted and followed by an organization in order to attain
certain given and stated objectives. It highlights the obvious courses of action for the present and
future activities of the organization. Policies serve as a guidance to administer activities that are
repetitive in nature. The complete process of management is organized by business policies.
A business policy is an implementation of an organization’s strategy. Strategy involves the

deployment of resources for attainment of objectives. The purpose is to facilitate the process of
decision making of employees by keeping in view the overall mission, vision and objectives. It
relates to long-term objectives. Policies are the documented rules and regulations which are
formulated according to the mission and vision of an organization. Business policies vary from
organization to organization, sector to sector because of the distinct nature of every business as
well as the variation in the mission, vision, and goals of organization.
Keeping in view the importance of business policies, the final project was assigned to us to study
certain business policies of any Pakistani organization. To fulfill the project requirement, we
visited Pakistan International Airlines (PIA) and studied the following business policies of
that organization.
 Recruitment and Selection

 Training and Development
 Retirement
 Pay, benefits and compensation
Overview of PIA
 Brief History:
Air transport has probably never been more important to the development of a new nation than in
the case of Pakistan. In June 1946, when Pakistan was still in the offing, Mr. Mohammad Ali
Jinnah, the Founder of the upcoming nation, instructed Mr. M.A. Ispahani, a leading industrialist,
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to set up a national airline, on a priority basis. Orient Airways, a privately owned company,
with limited capital and resources, could not be expected to grow and expand independently. It
was then that the Government of Pakistan decided to form a state-owned airline and invited
Orient Airways to merge with it. The outcome of the merger was the birth of a new airline,
through PIAC Ordinance 1955 on January 10, 1955. The year 1955 also marked the
inauguration of the fledgling airline's first scheduled international service - to the glittering,
glitzy capital city of London, via Cairo and Rome. PIA's growth continues and the airline now
operates globally, opening scheduled services to 73 destinations throughout Asia, The Middle
East, North America, Europe, as well as an extensive domestic network linking 23 destinations.
Its main Bases are:
 Jinnah International Airport, Karachi
 Allama Iqbal International Airport, Lahore
 Benazir International Airport, Islamabad and Rawalpindi
Vision
PIA's vision is to be a world class airline exceeding customer expectations through dedicated
employees, committed to excellence.
Mission
Employee teams will contribute towards making PIA a global airline of choice:
 Offering quality customer services and innovative products
 Participating in global alliances
 Using state-of-the-art technologies
 Ensuring cost-effective measures in procurement and operations
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PIA’s Networks
Domestic Network
International Network
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CHAPTER NO. 2
LITERATURE REVIEW
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LITERATURE REVIEW
Recruitment and Selection
In a study conducted by Guerci, Montanari, Scapolan, and Epifanio (2016), it has been
discussed that the environmental performance of firms is an emerging issue, and effective
environmental management is thus a priority for many companies in different regions of the
world. This study addresses the increasing attention to the relation between recruitment practices
and environmental management and discusses two specific issues in the literature regarding
green recruiting practices such as, the direct effects that may be achieved by the green recruiting
practices on attracting applicants, that is, the recruitment practices adopted by an organization to
attract prospective applicants by means of environmental sustainability-related messages such as
green reputation of company and the amount of information provided on the recruitment website
about the company’s environmental policies and practices. The second issue concerns the
interactive effect of ‘green’ and ‘non-green’ recruitment practices on attracting applicants.
The sample of about 275 graduate Italian students was drawn and they were surveyed using the
administered questionnaires adapted by different researchers. According to the findings of the
study, the amount of company and job information provided on a website does not have any
direct influence on applicant attraction, whereas company reputation as an employer is
significantly associated with it. Overall, the article extends knowledge on green recruitment by
contributing to the literature on organizational reputation. Companies should focus their
investments on the development of their green reputation rather than relying on the amount of
information provided on their websites. Developing an organizational reputation is a long-term
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process, requiring time and resources, and is also highly risky and uncertain but companies
should invest in that direction.
Cultural diversity in the workplace has become an important issue in human resource
management, and has steadily gained attention in both research and practice. Scholars have
emphasized that hiring employees with different cultural backgrounds may be vital to an
organization’s competitiveness as the increase in unique skills and experiences may offer
advantages for organizational innovation and flexibility. According to Hofhuis, Van der Zee,
and Otten (2016), although many strategies have been employed to specifically recruit and
select minority employees, the selection rates for designated minority groups are often lower
than those for the majority group. Minority candidates with high cultural maintenance (CM) are
particularly vulnerable to cultural biasness in selection procedures. This study aims to examine
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whether these effects may be moderated by recruiters’ perceived diversity outcomes (PDOs);
which means that whether the recruiters view diversity as beneficial or threatening to the
organization’s performance. Participants belonging to a cultural majority group played the role
of recruiters. Their diversity perceptions were manipulated by asking them to think about, and
discuss, either positive or negative outcomes of cultural diversity in the workplace. They were
then asked to rate fictional profiles of minority candidates for a job opening. The findings of the
study suggested that CM of minority candidates has a negative impact on the ratings they receive
in assessment procedures. However, this effect is moderated by diversity perceptions of
recruiters. Recruiters who perceive individual differences in the workplace as positive and
beneficial, give higher ratings to minority candidates. This study provides an insight to reduce
cultural bias in selection procedures.
Hinojosa, Walker, and Payne (2015) examined the effects of pre-recruitment perceptions of
familiar organizations before exposure to information on organizational recruitment websites.
Three phase process model is used in the study; application generation, maintenance and job
choice phase. In the first phase organizations focus on designing the recruitment activities to
encourage the desired job seekers to apply for the employment. Maintenance is the second phase
in which organizations maintains their positive attitudes that led job seekers to apply. Finally the
job choice phase positively influences the choice of those desired job seekers who received the
employment offer. Job seekers can easily visit the information websites of multiple organizations
in short period of time. It has been found that job seekers do not encounter the recruitment
activities of the organizations with blank slate. Rather their pre-existing organizational
perceptions influence how much they search for more detailed organizational/job information.
Study suggest that organizational image and reputation play an integral role in this initial
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decision making process. It is suggested that job seekers must have an initial interest in recruiting
organization (positive pre-recruitment perceptions) for them to seek out, evaluate and process
detailed recruitment information.
According to Yuvaraj (2016), the use of social media technologies has become very important
in the various purposes and functions of many organizations. Social media can be used in sales &
marketing, knowledge management and sharing, risk & crisis communication, public relation
and human resource as well. Social media which is used in employee recruitment also referred to
as “social recruiting”. In social recruiting, the recruiters use social platforms like LinkedIn,
Facebook, and Twitter to post job details and to attract and recruit applicants. With the use of
social media websites the entire process of recruitment become more active and reliable, enhance
the appeal of employer. In the competitive environment, use of social media is becoming
inevitable for organizations. The study was targeted toward the application of UTAUT model
(unified theory of acceptance and use of technology) to predict the behavioral intentions toward
the technology in organization setup. The results reveal that behavioral intentions to adopt social
media in recruitment process were dependent upon the perception of benefits in job related
issues. In terms of social media adoption by any organization, it is advisable to focus on job
gains.
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According to the study conducted by Sung and Choi (2016), the relationship between strategic
choice theory and training and development (T&D) is analyzed that explains the strategic
decisions of top management, thereby leading to the T&D investment of firms. T&D represents a
firm’s effort toward human resource development (HRD), which refers to a set of planned
activities designed by an organization to provide its members with the opportunities to learn
necessary skills. Strategic choice pertains to the process whereby power-holders within
organizations decide upon courses of strategic action. The current theoretical framework was
examined using data collected from 163 Korean manufacturing companies over a five-year
period. Results confirmed that firm performance and
environmental change exert significant positive
effects to top management strategic orientation
toward T&D, which in turn, lead to financial resource
allocation to T&D. Also, the effect of top
management strategic orientation toward T&D on
actual financial investment in T&D is stronger when
the current level of human capital is high but not
when it is low.
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According to the study conducted by Analoui (2015), the nature and extent of management
development and training as well as the current situation of training in Palestinian
telecommunication organizations is explored using a basic trichotomous (three-stage) model:
needs assessment, training and development, and evaluation. The first stage is the Assessment
stage which includes the
identification of the
organization goals, the
content of the training
programme based on job
analysis. The second stage
that is Implementation
stage includes developing and choosing the means and methods for achieving the needs and
objectives. The methods can include lectures, conferences, games, simulations, interactive
videos, and on-the-job training. The third and final stage, is Evaluation stage to improve the
training and development process and to decide whether to carry on with the programme or not.
A survey questionnaires supported by interviews was conducted to capture the issues raised by
middle and senior managers. The findings will have practical implication for the policy makers,
HR professionals and managers.
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Nowadays, the rapid development of information and communication technologies in all areas as
a key element in the success of any institution, and an important prerequisite for achieving
competitive advantage and the ability to survive in an environment of rapid change. Hence, there
is a need to invest and use e-training, as a program for achieving sustainable human development
under the knowledge economy. E training is a process of acquiring a set of knowledge, skills and
attitudes of individuals in a flexible and appropriate way training through the Internet and
modern communication devices. It provides an excellent opportunity for institutions to use this
type of training at less cost and more appropriate path to achieve the institution’s objectives by
coping with technological developments, and raising the efficiency of its staff This study
identified e-training as a new concept in human resources development from the logic of
scientific progress, and the importance of information technology in the field of training,
education and information awareness dissemination. E training can be summed up in the
following figure: Information and communication
technology-based training
Training by digital Technology

Training in virtual environments
Using distance Training

Technologies
Electronic media-supported
training
Web-Based Training
E-
Networks and Computer –based Training Internet-based Training
training
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E-TRAINING STYLE
Training evaluation refers to the process of systematically collecting the outcomes needed to
determine whether training is effective or not. In this study, the influence of S-OJT and
classroom training approaches on trainees’ learning motivation and learning performance was
examined. Result shows the trainees who received S-OJT generated higher learning motivation
and learning performance compared with those who received the classroom training. Moreover,
the trainees with lower initial learning motivation were motivated more and generated higher
learning performance after receiving S-OJT. The ultimate contribution of this study could be to
serve as a step stone for further study in understanding and comparing the influence of the
different training approaches on trainees’ learning motivation and, most importantly, applying
the knowledge into the training design to increase the training effectiveness. This study provided
the potential theoretical and practical implications and can serve as reference when choosing the
training approach for a designed training program.
The relationship among trainees’ characteristics, organization/job
characteristics, training program design, motivation to learn, training outcomes.
INPUTS PROCESS OUTPUTS
Individual Training Outcomes

characteristics Motivation to learn
 Affective
 Ability  To attend Outcomes
 Attitudes  To learn  Motivation to learn
 Self-efficiency  Self-Efficiency
 Motivation to Training Kirkpatrick’s Four Level
learn
 Personality  Content  Learning
 Method  Behavior change
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 ROI
Organization & Job

characteristics
Verwaeren, Van Hoye and Baeten (2016) explained that even though some organizations are
trying to attract high level applicants through offering superior compensation and benefits,
reward statements in job advertisements are sometimes rather general and vague. On the basis of
person-environment fit theories, we examine whether providing more specific information on
attractive reward packages in job advertisements leads to higher perceived person-reward fit and
subsequent job pursuit intentions. Applying an online experimental design among 283
experienced potential applicants, we find that more specific compensation and benefits
information results in higher job pursuit intentions and that this relationship is fully mediated by
person-reward fit perceptions. In turn, the effect of person-reward fit is partially mediated by
perceptions of person-organization fit, indicating that people might use reward information as
signals for other organizational attributes in early stages of recruitment.
Conceptual Research Model
Specificity of
Job pursuit intentions
compensation and ……………………………………….
benefits information
Person-organization fit
Person-reward fit
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Bish, Newton, and Johnston (2015) utilized diffusion of innovation theory in order to
investigate and understand the relationships between human resource (HR) policies on employee
change-related outcomes. In addition, the purpose of this paper is to explore the role of leader
vision at different hierarchical levels in the organization in terms of the relationship of HR policy
with employee change-related outcomes. This quantitative study was conducted in one large
Australian government department undergoing major restructuring and cultural change. Data
from 624 employees were analyzed in relation to knowledge of HR policies (awareness and
clarity), leader vision (Organizational and divisional), and change-related outcomes. Policy
knowledge (awareness and clarity) does not have a direct impact on employee change-related
outcomes. It is the implementation of policies through the divisional leader that begins to enable
favorable employee outcomes.
Research limitations/implications: Future research should employ a longitudinal design to

investigate relationships over time, and also examine the importance of communication medium
and individual preferences in relation to leader vision. This research extends the application of
diffusion of innovation theory and leader vision theory to investigate the relationship between
HR policy, leader vision, and employees ‘change-related outcomes.
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Gunderson and Y. Lee (2015) created a link between data from the 2006 PALS to the 2006
Census to analyses pay discrimination against persons with a disability in Canada when
compared with a non-disabled comparison group. Our analysis yields four main empirical
generalizations. First, persons with a disability earn about 21% less than persons without a
disability. Second, persons with a disability that does not affect their performance at work are
paid about 10% less than those with no disability – commonly taken as a measure of
discrimination. The objective of the study is to estimate the extent of pay discrimination against
persons with a disability in Canada. The methodology involves decomposing or partitioning the
pay gap between persons with disabilities and a comparison group of persons without
disabilities. The data is from the 2006 Participation and Activity Limitation Survey linked to the
2006 Census. It is still found that persons with a disability that does not affect their performance
at work are still paid about 10% less than a comparison group with no disability but with the
same pay determining characteristics. First, they have presented the results of estimating
earnings equations with different dummy variables that indicate the disability status of the
individual reflecting varying degrees of work limitation and severity of disability. Second, they
have decomposed the disability pay gap into differences in their endowments of pay-determining
characteristics and differences in the returns they receive for the same characteristics, and they
have examined the relative contribution of the different factors that contribute to that gap. Third,
they have also examined the importance of different medical conditions and disability limitations
in affecting the pay of persons with disabilities.
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In the effort to influence the performance of their employees, managers frequently turn to PRP
refers to as performance-related pay schemes. These schemes are complex and not effective. In
order to change employee behavior and make them motivate to work and performance
companies frequently turn to forms of performance-related pay (PRP). At the same time, they
want their employees to be innovative. In the following study the focus was on relation between
PRP, organizational and job-level task resources and innovative work behavior (IWB). In doing
so, they distinguish between individual and collective PRP and build on insights from high-
performance work systems and employee creativity literature. Using survey data of 927
employees from five Belgian industries, it has been founded that find individual PRP weakens
the important positive relation of task-level job resources like learning opportunities on IWB. As
Peffer (1998) noted in his article in the Harvard Business Review, PRP policies are very
popular with managers because, “It’s simpler for managers to tinker with compensation than to
change the company’s culture”. Yet while implementing reward systems may be relatively easy,
assessing their outcomes is not when it comes to employee innovativeness. When it comes to
individual PRP, the relation with IWB is uncertain and doubtful and its presence is likely to
suppress some effects of other, more intrinsic motivators. As for collective PRP, it is likely to
boost the extent to which employees share ideas, but only when combined with efficient upward
communication and also, most likely, with parallel individual rewards that provide employees
with a sufficient sense that their additional try will prove to be worth the effort.
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This article focuses on the effect of employment and family experiences on retirement timing. It
focused on Switzerland, in which flexible and liberal pension structure exist. According to
Cabib, Gauthier, and Goff (2016), family responsibilities play significant role on retirement
timing. During different family statuses (single, married with children, married without children,
divorced) people behaviors towards retirement timing is different. People with different
employment statuses (full time, part time) have different preferences towards retirement timing
(early, on time and late.).
This article focuses on role of career histories of male and female employees in shaping
retirement expectations and retirement experiences. According to Duberley and Carmichael
(2016), different ways of paying pension income are changing the meaning of retirement. The
historical, cultural and social context of life experience effect retirement expectations and
experiences. Women have complex careers because their career decisions are shaped by need of
their families. So they have complex retirement experiences.
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CHAPTER NO. 3
ANALYSIS
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ANALYSIS OF RECRUITMENT
&
SELECTION POLICY OF PIA
Recruitment and Selection

For the better understanding of Recruitment and Selection policy of PIA, we asked a number of
questions from PIA Senior HR manager. Few of them are stated as:
1. What is the purpose of the Job Manual in recruitment and selection?
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2. What do you think, what are your recruitment constraints?

3. What type of recruitment PIA use, internal or external? Kindly elaborate the process and
related policies as well.
Recruitment Policy:
Various positions in the Corporation shall be filled-in by persons of above average intelligence,
appropriate qualifications, integrity and character. A very high standard for jobs at every level
shall, therefore, be established and maintained.
While presenting the hiring status, number of available vacancies shall be highlighted in front of
each category being hired. Induction would be made at entry, middle and senior management
level with a user-friendly process to facilitate new entrants. To achieve this objective, a merit
base recruitment policy has been formulated in the light of instructions from Federal
Government / PIA Board of Directors, the salient features of which are as under:
 No person shall be recruited whose age is less than 18 years and more than 40 years at
the time of recruitment.
 No person shall be appointed without a medical fitness certificate from the corporation’s
medical fitness officer except for the employment of the disabled persons under the
disabled persons Employment and Rehabilitation ordinance 1981.
Recruitment at PIA:
“The function of recruitment is actually to fulfill the man power requirement of PIA
organization.”
The human resource department first determines the vacancies which need to be filled up by
internal promotions. If there is no availability of employees for the vacancy than the external
recruitment process is followed.
The recruitment is done by Human Resource Department of PIA in a specific Recruitment Cell.
Departments are advised to tell the recruitment cell if need arises for hiring more or new
employees. A Job specification is submitted and from then on everything is undertaken by the
recruitment cell which includes advertising the vacant post both internally and externally, giving
an address for sending in applications and once a pool of candidates have been gathered the
responsibility is transferred to the panel of interviewers.
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Job Specifications:
 General Manager Organizational Development (OD) / Deputy General Manager Staff
Development/ General Manager Human Resource shall develop job specifications for
each post in consultation with the Department concerned.
 Job specifications shall not be tailored to suit an individual. Job specifications shall have
wider alternates so as to provide a fair opportunity to:
o Internal candidates holding equivalent/ comparable qualifications to apply. and
o Selection Board to have a wider choice of selection.
 Where only one candidate has applied against the internal advertisement, the post shall be
re-advertised internally with some amendments in job specifications or shall be externally
advertised.
Job Manual of PIA:

PIA has a job description manual in which there is mentioned job title, specifications, job
description, duties and responsibilities and job objectives if defined. This job manual is kept by
Human Resource Department of PIA and copy is given to other departments.
For example, if the job is of Chief Instructor Aerospace, then Job Description Manual
will include:
HR, Admin & Coordination

Department Dated: 18-12-2012
Job Descriptions Manual PIA Training Centre Chapter 3

Doc # HRA-JDM-/04 Page 183
Job Title Pay Group Reports to
Chief Instructor IX Principal PIA Training Centre

Aerospace
Section Location Job Reference No.
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Aerospace Unit KHI 3.7.1
A: Job Specifications:
Educational Qualifications: Work Experience:
 BE-Aeronautical Engineering  15 years Instructional experience

 Minimum Three (03) Proficiency on Civil registered aircraft.
Certificates on Aircraft Type
Skills / Special Requirements: Professional Training / Courses:
 Instructional  As per PTC Exposition Manual

 Managerial
 Computer Literacy
 Analytical & Financial
B. Job Description & Responsibilities:

 Effectively manage the Training unit
 Coordinate with user departments and regulatory authorities on sustained basis
 Undertake financial planning and cost-benefit analysis to ascertain training viability
 Manage train-the-trainer program and plan the induction process on sustained basis
 Prepare the unit budget by taking on resource optimization approach and ensure
discipline in all fiscal activities in conformity with prevalent corporation rules
 Manage human resource productivity of his unit through performance management
system
 Recommend standards for trainee development and evaluation
 Ensure logistic support and optimum utilization of available resources (tangible and
intangible)
 Display proven integrity in executing tasked responsibilities
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 Maintain disciplined unit/class environment for ensuring training effectiveness  Foster

research and learning culture
 Create, conduct and direct research projects and assigned special tasks
 Carry out practical problem analysis for curriculum updating
 Contribute in applied research with contribution for publications and
conferences/seminars
 Encourage innovation and practical solution methodologies by example
 Conduct courses as specified
 Supervise and ensure the quality of training
 Update curriculum & monitor course evaluation processes/procedures
 Coordinate and monitor training need analysis (TNA) of user departments
C. Job Objectives (If Defined):
Recruitment Vitals:
1. Qualification:
The qualification that is necessary for applying in PIA starts from intermediate degree and ends
up to graduate degree and this varies from job to job.
According to HRM senior officer of PIA,
“PIA has dropped the required level of education from a graduate degree to an intermediate
degree.”
2. Eligibility Criteria:
Recruitment for the age also varies from post to post and most probably depends on the
experience required for a specific job.
3. Physical Requirement
Physical requirement for the candidate also differs from gender. The minimum required height is
5 feet 6 inches for men and 5 feet 2 inches for women, with proportionate weight.
Selection Tests:
Normally three types of tests are being conducted by PIA for selecting a candidate. These are as
follows:
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1. Physical tests:
It is the first selection test in which the interviewers determines either the candidate is fulfilling
the job requirements or not. According to HR officer Mr. Sabath Hussain,
“Their skin, quality, height and weight are noted in the first interview session.”
2. Grooming Test:
If the candidate clears the first phase, the hopefuls take a grooming test. Here, men and women
present them in a manner, both physical and behavioral, befitting the job while women’s makeup
skills are also checked.
3. General Test:
Once the grooming test is cleared, the candidate’s general knowledge is tested in written and oral
tests. These tests are sometimes based on brain storming.
Now, in PIA, these tests are administered by National Testing Service (NTS). The selected
candidates attend an intensive training course organized by the airline.
Recruiting Constraints:
Government Influence:
Government influence is the only constraint that PIA recruiters have to face. PIA cannot
announce the job vacancies without the permission by Government. The government also assures
the number of jobs which PIA can advertise for as there is overloaded number of employees in
PIA. For this reason, due to this constraint, PIA has not announced any job vacancy since last
three months.
Recruitment Alternatives:
Independent Contractors:
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PIA also hires the contractors on daily wages for special projects and works. These are generally
hired for technological breakthrough in the organization. They frequently hire mechanical and
electrical engineers on contract basis having vast experience to operate, maintain, repair, service
and overhauling, skillfully by up keeping equipment optimum performance efficiencies with
100% serviceability. These include all types of Kitchen equipment, Electrical equipment, Hot
Water System, Exhaust System, Dish Washing equipment by competent, technically qualified,
proven and well experienced staff round the clock seven days a week, to achieve the desired
standards.
Recruitment of Cabin Crew:
a) Single as well as married females shall be eligible for appointment as Airhostess.
b) Maximum age limit for employment shall be 30 years.
c) Induction of Cabin Crew shall be carried out twice a year in January and June.
d) Employment shall be made on contract for a period of 5 years which may renewed with
intervention from management.
e) Short-listed candidates shall be called for grooming tests, those who qualify shall also be
required to write an essay and undergo an audition of English and Urdu communication
skills, which shall also be taped.
f) Candidates who qualify for all the above tests will be called for the final interview before
the selection board.
Types of Recruitment:
Two types of recruitments are done by PIA i.e. External and Internal Recruitment.
 Internal Recruitment
Internal Recruitment is done by advancing the rank of any current employee by ascertaining its
capacities, for this the human resource managers assisted by the performance appraisals of the
employees which has a record of their performances. The succession planning is done
accordingly.
Process:
An Ad comprising of the Eligibility criteria for internal candidates is put on display on the local
area network (LAN) in the company’s computer system for 30 days and anyone wishing to apply
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can; considering they meet the requirements. The Ad usually comprises of the concerned
positions Job specifications as follows:
 Introduction to job
 Required qualification
 Required additional qualification
 Experience
 Skills required
Selection policy:
1. Internal candidates presently working who fulfill the above criteria will apply through
proper channel to Director (concerned area). General Manager (concerned area) will
convene the placement board to determine their suitability for selection to which will be
comprised of the following:
I) Director (President)
II) Director Concerned (Member)
III) General Manager (concerned Member)
2. The employee once placed on basis of qualification will not have claim of further
promotion on the same basis. Further it will be governed by the existing promotion
criteria as per rules.
3. Seniority will be maintained in accordance with the seniority in the previous Pay Group.
4. The selection / placement will not be subject to availability of vacancy.
5. Employees not qualifying for their placement will maintain their seniority in their
existing pay group of relevant cadre / department without any other benefit in their
present pay group.
6. After selection, the employees will be subjected to TNA (Training Need Analysis) which
is done by his immediate supervisor. The supervisor will observe the areas in which the
employee is lacking and will abolish the inabilities, replacing them with capabilities.
 External Recruitment
An ad comprising of the eligibility criteria is advertised in the most readable newspaper in the
country such as JUNG or Dawn and Business Recorder for 30 days and also posted in PIA’s
website.
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The Ad usually comprises of the concerned positions Job specifications as follows:

 Introduction to job
 Required qualification
 Required additional qualification
 Experience
 Age
 Skills required
 Company Address at the bottom
Drawbacks of External Recruitment:

PIA recruitment policy shows that when they have to promote employees for new posts
internally, they keep in mind the seniority of the employee and the relevant skills but
unfortunately, sometimes they ignore the internal recruitment and recruits employees externally
even in spite of having the necessary requirements internally. So, employees feel discouraged
and hopeless and it negatively affects their performance.
Application Form (attached in Appendix)

Applicants are invited on the prescribed form available (free of cost) from PIA recruitment and
placement office, from other offices such as HR department and is also available on its website
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www.piac.com . Application forms are must for a candidate to fill, if he/she is applying for
respected seat or position.
The candidates are asked to provide the following information
 Education background
 If he/she has applied in PIA before or not.
 Present job pay & source of income
 Number of children’s if married
 Experience is asked if he/she has worked before in any other company or organization.
Selection Policy of External Candidates:
 In case the number of applications is large, a written test will be conducted to short-list
the candidates.
 A Selection Board as specified by the Management shall conduct interviews of all
candidates who qualify the written test.
 The senior most people shall preside over the Board. Dy. General Manager- Recruitment
& Placement shall function as Member/Secretary.
 While completing the candidate‘s individual assessment report, the Selection Board shall
make specific recommendations regarding suitability of the candidates for
posting/assigning to various departments of the Corporation.
Selection Interview:
The candidate will be interviewed by the people concerned or a special panel which may
comprise of:
a) Director Recruitment cell
b) General Manager or Deputy General Manager
c) One of the Concerned Directors
The skills and capabilities of the candidate is judged in the interview and the employers notice if
the applicant is enough flexible to adjust in the organization’s environment.
After Selection:
Appointment Letter:
 An offer letter is mailed to the candidate that he/she has been selected.
 Information in the offer letter includes, pay rates and benefits.
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 It also includes various verifications including Medical checkup, background checks,

reference checks and etc.
 The offer must be accepted by the candidate to finalize the selection process.
Probation Period:
The probation period varies for both the new internal and the external recruits:
 In the case of internal recruits the probation period is for up to 3 months
 In the case of external recruits the probation period is for up to 6 months
Private Employment Agency:

PIA also takes the help from private employment agency Fulcrum located in Karachi. They
offer them the services related to the Executive Search, which encompass continuum of essential
business services to meet their needs throughout the business cycle and help organizations focus
on their strategic initiative.
International Posting:
PIA also hires eligible employees from foreign countries like Saudi Arabia, United Kingdom etc.
and also posts the eligible employees from foreign countries. The time period for the foreign
posted employees is three years. The code used for foreign employees is UU and those
employees which are sent to foreign countries are KHI-UU for Karachi and LHR-UU for
Lahore, etc. Whoever employee is sent to foreign countries are provided with the salary
according to that country currency.
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ANALYSIS OF
TRAINING AND DEVELOPMENT OF PIA
TRAINING AND DEVELOPMENT
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The following questions were asked from PIA Senior manager HR:
1. Do you have policies regarding employee orientation?
2. What are your policies regarding career development as well as training and development
of employees?
3. Kindly tell us about the working of your training center.
4. What are the major courses that you offer at PTC?
5. What are the training methods that you use?
 Employee Orientation:
Orientation is one of the important Human Resource duty to be performed after candidates
become employees. Orientation Department, is the weakest link at PIA and its Human Resource
Management. Practically no use of any orientation technique is available here. One of our most
notable observations, while we reviewed PIA’s HR Manual; the manual itself does not include a
single policy regarding the employee orientation or the techniques that could be undertaken by
its HR department to effectively welcome new employees in the organization.
We were told that the policy system here at PIA is actually the weakest in the organization.
Another fact highlighted was, that PIA never felt a need to ‘orient’ their new employees. They
felt it to be a time consuming exercise with no solid outcome relating employee performance.
Nevertheless, PIA still uses a few techniques under its sleeve to orient its employees, specifically
on the Human Resource, Public Relations, Sales and Marketing departments. The technique used
for the purpose is a round table conference between the new entrants and a few senior
employees at the same job titles as the entrants are. The meeting lasts an hour or so with no
handouts, guidebooks, CDs/DVDs given out to encourage the employees to gather more
knowledge about the organization and the job they are to perform soon.
Suggestions: Employee Orientation
 Employee orientation must be expanded to all known departments of PIA.

 Apart from the unofficial round-table senior-junior staff meetings, the orientation culture
must be expanded to more efficient techniques like proper lectures in classroom settings.
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 If classroom method is established, the lecturer must use multimedia to efficiently

deliver the message, vision and mission statements of PIA to the employees, so that they
may know the level of respect and honesty they must put in their job performances in the
coming future.
 Handouts, guidebooks, history books or CDs/DVDs containing the same material must
be provided to the new entrants so they get to know about the culture of PIA.
 A very active portion must be devoted to PIA’s HR Manual relating to Employee
Orientation and effective policies must be created regarding this matter.
 Separate Orientation rooms, classrooms of the same kind must be established in all zonal
offices so that orientation must be carried out with as ease and availability of separate
area as possible.
 Career Development at PIA:
In PIA there is a department named Staff development which is responsible for the career
development of employees. Throughout the employee's career with PIA, all the employees are
provided with opportunities for professional, technical and personal development. In return, PIA
expects them to work with dedication, integrity, and 110% commitment as PIA strives to become
a world class airline. But being a government organization, PIA does not actually follow any
practices regarding the career development of its employees and this department is just a
department for the sake of department.
 Training & Development at PIA:
The next Human Resource function PIA carries out is training and development of its
employees. The training office is located at the Headquarter building in Karachi and the most
prominent use of training is towards the pilots. The training and development programs for the
employees are in relation with the industry practices. The training courses are predefined and SOPS are
developed, Standard Operating Procedures (SOP) are prepared for each critical utility or piece of
equipment to provide all personnel working with the equipment information and instructions on
what is required in order to maintain, operate, and clean the utility or piece of equipment. An
initial training is given to all the newly inducted employees to build the basic knowledge, skills
and abilities (KSA) required to perform their jobs efficiently and with the passage of time as the
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new technology introduces or other changes in the market situations, trainings are given to the
existing employees.
Now let’s take a look at some training periods for specific job titles (In Pakistan):
Category of Personnel Training Period
Air Hostess 12-25 Weeks
Apprentice Colts 3 Years
Trainee Engineers 5 Years
Apprentice Cooks 3 Years
Aeronautical Cadets 3.5 Years
Flight Engineers 1 Year
Any Other Category 1-3 Months
Our focus here is the “Any Other Category”, because that is where most of the staff belonging to
HRM, marketing, finance, sales, cargo etc. belong to.
A plus-point found in one of the HR Training policies is that the training is not just carried out in
Pakistan but also abroad. PIA recruits pilots and operational staff from foreign countries too, that
adds to its efficient training methods.
 Mandatory Training Programs:

Different positions in an organization are subjected to different training programs as follows:
Employee Category Pay Group Training Programs
Staff Cadders I-V Junior Management

Training
Officers VI Middle Management
Training
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Assistant Manager VII Middle Management

Training
Manager VIII Middle Management
Training
Deputy General IX Mandatory Corporation
Manager Training
General Manager X Mandatory Corporation
Training
 PIA Training Center:
The PIA training center (PTC) at Karachi is the only airline-training establishment in Pakistan where
comprehensive instruction in almost all major fields of commercial aviation including Flight Operations,
Engineering and Maintenance, Flight Services, Airport Services, Marketing(Reservation and ticketing),
Information Technology and Management( Soft skills). There are around 75 highly qualified and
experienced professional instructors at PTC specialized in different fields of airline operation.
 After joining training and development is necessary. Training is essential at all levels in
the organization. For this purpose, there is PIA Training Center located in Karachi.
Both external and internal training instructors are hired for training. Every department
have their own training unit. For example, marketing, finance department have their
separate training units but they report to main central Human Resource Training Unit.
 After induction, the selected person is reported to PTC Karachi. All his/her expenses such
as tickets are afforded and beared by PIA. He/she is a given a license after training and
then he/she takes an oath on manual.
 PIA Training Center is the only center in PIA which is not in loss just because it provide
external training. For example, other airlines Emirates, Ittehad get training from PTC
which is source of revenue generation for PIA. One of the most important training they
give is passenger handling service.
 Courses offered at PTC
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 Customer Service:
This type of training is provided to the employees who are directly dealing with the customers
like air hostess, customer service staff, marketing staff etc. training is compulsory for the newly
joined employees as well as need based employees. Following training comes under the umbrella
of the customer services.
 Flight Service
 Marketing
 Passenger Service
 Engineering & Maintenance:
In engineering & Maintenance shed, following types of training exist. Such training is provided
in the technical school of PIA by the engineers. Latest equipment and procedure are being used
to train the employees.
 Apprentice
 Aerospace
 Avionics
 Flight Operations:
Such training is provided to the pilots in virtual environment so that risk may be reduced while
making real time operations.
 Information Technology (CBT):
PIA provides training to their employee's computer based training so that they can properly run
the information system.
 Management:
Management staff plays a key role in PIA. Stress management, team work, leadership, skill
building and other such traits which are necessary for a good manager, PIA arranges seminars
and workshops to train their staff.
 Manual and equipment’s based trainings:

 Around 10,000 trainees are trained manually. Training facilities available include
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 Flight simulators
 Cabin mockup mini airport
 Language lab
 Electronic labs
 Workshops
 CBT (computer based training)
 Classrooms equipped with modern teaching and training aids.
 These facilities and equipment’s are maintained by highly skilled and experienced
support staff.
 Training of languages:
Employees are trained in different languages. Different tests are taken and if they pass they are
certified and given licenses.
According to Sabbat Hussain, a basic training is given to the airhostess after their induction and
initially they serve the small airplanes but with the passage of time they are given training
courses of large airplanes including Boeing and airbus and similar are the case with the cockpit
crew, engineers and technicians. They are initially trained for small airplanes and then they are
given trainings for airbus and Boeing planes after getting trained these employees go thru an oral
test and then they get the license and certificates to work at Boeing and airbus.
 Foreign training programs:

At the foreign training programs mostly the instructor of engineering dept. and cockpit crew is
sent abroad, sometimes a group of employees go there with the senior instructor and sometimes
only the instructor goes for foreign training alone. These instructors and employees are trained
from aircraft manufacturer, vendors, IATA and other Organizations. Each year the training
members of different unit receive IATA/IATF scholarships awards. The instructors of regulatory
courses are qualified and approved by CAA.
 Training Need Analysis (TNA):
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This unit has developed computer based examination system thru which the employees are
assessed. Before training there is a training need analysis done by immediate incharge to observe
what things are lacking and how they should be overcome. The training need analysis is also
done on seniority basis to find out eligible candidates for promotion.
 Validity of Training:
The validity period of training is one year. For example, validity of technical training is
important. Like the flying crew, study air craft and how to tackle them. Every crew has to attend
and clear the training course. 85% marks are required for passing the course. This course expires
every year and is refreshed next year and new card and stamp are issued. The course is also
refreshed because of the reason, that due to rapid changes in technology, new and updated skills
are required. The tests are changed with time, like changes in equipment e.g. new aircrafts. These
changes are always mentioned in circular notes.
 Training Methods:
Now we go down to the basics of training at PIA.
 Apprenticeship Training
 On-Job-Training
 Lecture-based Training
 Simulation Process
 Apprenticeship Training:
“A structured process by which people become skilled workers through a combination of
classroom instruction and On-Job-Training”.
Apprenticeship training is used to train any PIA employee from PIA pilots to PIA operational
staff. Pilots, cadets and engineers are trained under extreme supervision and vigilance while they
work on their assigned posts simultaneously, plus are given regular lectures explaining
comprehensively the job duties they must perform. The same routine goes for the operational
staff of the departments mentioned above.
 On-Job-Training:
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“Training a person to learn a job while working on it”.

OJT is a Marketing and Human Resource department only that falls down to more paper-work
jobs rather than the practical ones as are trained in the Apprenticeship training.
 Lecture-based Training:
“Training employees about the job in a classroom setting with an instructor providing lectures
and assignments”.
Lecture-based training is brief in time period and requires a classroom setting in the zonal
offices, which are currently ‘not’ present in Lahore division. The classroom training areas are
present in Karachi, Quetta and Rawalpindi zonal offices. This training method is used to train
almost all kinds of employees in the Operational departments of PIA including marketing, public
relations, sales, and cargo. The lecturers are permanent and this sort of training lasts from three
weeks to three months.
 Simulation process:
“Any artificial environment that attempts to closely mirror and actual work condition”.
For example, for training pilots they create an artificial scenario through dummy airplanes, la
Simulations are played on a computer program which provides opportunities for individuals to
make decisions. Simulations are cost effective means of training pilots especially in dangerous
situations. This make them enable to deal with real people and actual job situations.
 Drawback:
PIA is lacking in terms of the rapid changes in interpersonal skills, management communication
coming due to technology. For example, the new version of CYBER was launched without
giving proper training to the employees. It created a lot of hurdles for the employees. This
implies that PIA is inefficient in planning.
On the basis of satisfactory performance employees are given promotion.
 Performance Appraisals:
For the evaluation of performance of the job holder, performance appraisals are being prepared
for each employee. The immediate supervisor of each worker is responsible for evaluation of
each employee under him and then he submits this evaluation report further to the HR. dept.
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Till group 6 staff and officers, the evaluation done by immediate supervisor is considered to be
the final evaluation whereas in case of assistant positions, the evaluation done by the immediate
boss is further reviewed by the General Manager and he has got the veto to overturn, cancel or
rectify the flaws (if any) in the evaluation done by immediate supervisor.
The performance evaluation is actually based on the annual forms that are to be filled by the
evaluator and it contains all the information regarding any special project or difficult task
performed by an employee and the best or poor performance of an employee. Performance of
employee is checked on basis of different categories in which they are graded from point 1 to 5
depending on their skills. All points given to candidate or employee is totaled, the total max
points are 40 points out of which candidate/employee getting 35+ points has high chances of
being hired or promoted to higher position, while 25 - 35 are kept in merit list and 15 below are
rejected.
A performance appraisal form is attached with this report containing the instructions,
competencies, objectives and final performance grading information.
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ANALYSIS OF COMPENSATION
&
BENEFITS OF PIA
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COMPENSATION AND BENEFITS
Questions:
We asked Mr. Sabbat Hussain, Senior HR Manager (Pakistan International Airlines) several
questions related to the pay, compensation and benefits that PIA offers to its employees.
However, they did not disclose their pay related policies as PIA is a government institution. The
questions are as following:
1. What bonuses and allowances you offer to your employees to motivate them?
2. What type of leaves are applicable in PIA?
3. What are your policies related to pay according to the scale of the employee?
4. What medical facilities do you provide to your employees?
5. How PIA rewards and recognizes its employees?
Pay, Compensation and Benefits
One of the most prominent duties of Human Resource Management is to compensate an

organization’s employees and to provide them with sufficient benefits. Providing employees with
compensations and benefits makes an employee realize his or her importance towards the
organization and vice versa. PIA has been very effective in providing its employees with
wholesome benefits related to:
 Allowances
 Leaves
 Medical facilities
 Ticketing
 Bonuses
 Pensions
 Increments
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Allowances: We founded that the fields where an employee is

provided an allowance are as following:
o Compensatory Allowance
 To meet personal expenditure in special circumstances
o Conveyance Allowance
 For attending duty at normal place of work or carrying out duties in lieu of free
 Transportation by PIA
o Daily Allowance
 To cover daily expenses
o Foreign Allowance
 For a Pakistani resident employee transferred permanently to a foreign country
o Travelling Allowance
 To cover the travelling expense in interest of PIA carried out by an employee
Leave Benefits:
Leave shall be admissible to all permanent / contractual employees in the service of the
corporation. The types of Leaves applicable at PIA are as follows:
 Casual Leave (10 Days)

 Sick Leave (12 Days)
 Privilege leave (30 Days > 1-10 years of service, 35 Days > More than 10 years)
 Foreign Earned Leave (15 Days in abroad before coming to Pakistan annually)
 Leave Preparatory to Retirement
 Accident Leave (3 Months on certain conditions)
 Quarantine Leave (For Managers only, 30 Days)
 Maternity Leave (90 Days with full pay)
 Leave without Pay (6 months during service)
 Days Off (For working on holidays)
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Employees shall be deemed to have completed a year’s service notwithstanding any interruption
in service on account of sickness, accident, authorized leave and intermittent periods of
involuntary unemployment not exceeding 30 days.
The Medical facilities at PIA:
PIA employee shall receive medical coverage from PIA Doctors, Hospitals, Laboratories,
Clinics, and Establishments or from outside Specialists, Hospitals according to the approved
arrangements made by PIA Medical Division. The extent of the facilities is laid down here-in-
after. Any additional treatment shall be the individual’s own responsibility.
An employee, his family and dependent parents shall be eligible to such in-door and out-door
medical facilities only as sanctioned from time to time by the Corporation. The Corporation shall
not be committed to an unlimited medical expenditure on employees. Medical facilities both for
self and family shall not be admissible on the following grounds:
 On resignation before completion of minimum of 25 years of service / 55 years of age.

 In such cases where the Corporation specifically withholds availability of the facility for
reason(s) to be recorded.
 During continuous period of leave without pay in excess of 120 days.
 On compulsory retirement from Service.
 On Dismissal / Removal from Service.
Employees working on contract basis in regular pay scales, against permanent vacancies and
allotted staff nos. shall be provided medical facilities or allowance as per rules of the Corporation
/ provision of their service contracts.
Contractual employees hired on consolidated salaries shall either be entitled for medical facility
for self, spouse and three dependent children or medical allowance at the specified rate, as per
PIA rules. Their parents shall not be entitled to medical facility.
Trainees of other Airlines, PIA guests and PIA Trainees including airhostesses shall be entitled
to free out-door medical treatment for self only. Hospitalization and specialized treatment shall
not be admissible. General Managers, Directors and equivalents shall receive medical facilities at
45 | P a g e
the Air Crew Medical Centre including their family members. Reimbursements are also
applicable on certain conditions, especially:
 Heart Attacks
 Bleeding
 Accidents
 Unconsciousness or similar medical ailments
Medical facilities and Reimbursements are also available for employees working abroad also
applicable for their families on the rules mentioned above.
Ticketing:
Ticketing service to an employee of pay scale of V to onwards is also provided to him/her, along
with his/her parents to destinations like Saudi Arabia, Malaysia, Australia and more.
Transportation:
PIA provide pick and drop facility from office to home and home to office to all its employees.
A few amount from salary has been deducted if the employ take the facility of transportation,
otherwise they are provided with the transportation cost along with their salaries.
Incentives for Staff in the Flight Kitchen:
Management has introduced an Incentive Scheme for the staff working in Flight Kitchen. The
Management shall maintain complaints and discrepancies record of each shift, at the end of the
month results will be computed and the winner shift shall be awarded. A cash award by the
General Manager (Food Services) will be granted. A photograph of the shift may be published in
the ‘TOP FLIGHT’. The present cash award will be Rs.250.00 for the winner shift.
Bonuses to employees:
The Corporation may sanction bonus depending upon the yearly profit, etc. The bonus shall be
paid on the basis of basic pay of the employee in the respective pay groups as on 30th June as
detailed below:
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 Employee with less than one year but more than 90 days of continuous service on 30th
June in that financial year, on prorate basis.
 Ex-employees, who were in the employment of the Corporation in the financial year for a
continuous period of at least 90 days and have resigned, retired, or removed from the
services of the Corporation, on prorate basis.
 The employees on contract in the regular pay scale of the Corporation shall also be
entitled to payment of bonus. However, employees on contract who are not in the regular
pay scale shall not be entitled to payment of bonus.
 PIAC employees, on deputation/l long leave without pay, which are on pay roll for 90
days or more in a financial year on prorate basis.
 All officers up to the level of Directors, Cockpit Crew and Cadets shall be paid bonus, as
per rates fixed form time to time, subject to clearance of Government of Pakistan.
The Employee Reward and Recognition Program:
‘The objective of this program is to recognize and reward any extra ordinary contribution and
effort that an employee makes, in addition to his/her normal job responsibilities. This program is
meant to highlight outstanding performance, promote extra effort/ customer service and to let
employees know that their efforts are being recognized at senior level. The names and
photographs of employees whose efforts are recognized under this program will be published in
the newsletter PIA Vision. Four initiatives geared towards keeping an energized and vibrant
organizational environment are being introduced:
 Chairman’s Award
 Management’s Award
 Going an Extra Mile Reward
 Service with a Smile Award
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ANALYSIS OF RETIREMENT POLICY

OF PIA
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RETIREMENT POLICY
Questions:
1. Is it difficult for employees to transfer funds when they leave?

2. What features are included in retirement policies?
3. Who is in charge of the recordkeeping and reporting?
Pakistan international airlines has adopted the normal retirement age of 65 years but recognizes
the need to retain certain exceptional, highly skilled and productive staff, beyond the age of 65. It
permits extensions beyond retirement subject to the rules of the relevant retirement funds.

POLICY OF RETIREMENT
Normal Retirement
The Company values the contributions made by all staff regardless of age. It never recognizes
that some level of staff turnover is essential in order to introduce new skills and approaches,
which may impact on the success of the Company. Staff turnover is also important if the
Company is to achieve its transformation goals.
The normal age of retirement for all staff in PIA is 65 years. Staff will elect to retire at the end
of the month in which they reach 65 years.
Early Retirement
Subject to the rules of the relevant retirement fund, staff at the age of fifty five years and older
may apply to retire before their normal retirement age.

Extensions beyond Normal Retirement Age
PIA recognizes the need to retain certain exceptional, highly skilled and productive staff beyond
the normal age of retirement. Company may, subject to the rules of applicable retirement fund,
grant an extension beyond normal retirement to a staff member who has reached normal
retirement age. This extention is granted for a period up to three years, in the first instance, with
the possibility of a further extension for up to two years.
Challenge for employees
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A staff member on extension beyond normal retirement age must meet or exceed the
expectations for their post in the annual performance assessment process. If their performance
fall below expectation in any year of assessment, their contract may be terminated.
Purpose
The purpose of this policy is to establish the normal age of retirement and the principles for a fair
and consistent assessment of applications for extension beyond retirement.

Principals
 Staff who are retiring shall be given at least one year’s notice, of the decision to
grant extension beyond retirement or not, in order to facilitate planning.
 There shall be fairness, consistency and transparency in the criteria and procedures for
granting extensions beyond retirement.
 All assessment panels or committees shall provide detailed reasons for recommendations
or decisions.
 Applicants for extension beyond retirement shall be treated with sensitivity but no
extension beyond retirement shall be granted purely on compassionate grounds.
 Except in exceptional circumstances, staff members beyond normal retirement age shall
not occupy temporary leadership roles. This is to ensure capacity building, equal
opportunity and transformation.
 All applications for extension beyond retirement shall be considered by a duly appointed
sub-committee of the Staffing Committee of the Company, which shall make the final
decision.
 There shall be no appeals with respect to the decision of the Retirement Sub-Committee
of Staffing Committee.
 Reviews shall be based on the procedural irregularity.
Pensions in PIA:
The policies relating pension are as under:
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1. ‘The Pakistan international Airlines Corporation Employees and Cockpit Crew Pension
Fund constituted and established under Section 58 to the Income Tax Act, 1922 by separate
deeds of trust, shall be governed by the rules and regulations separately framed for this purpose.’
2. ‘On retirement, including retirement on account of medical unfitness or resignation from

service, an employee shall be entitled to receive such pension or gratuity, as may be prescribed
by the rules and regulations framed for this purpose.’
3. ‘In the event of the death of an employee, whether before or after retirement, his nominee
/ legal heir shall be entitled to receive such pension, or gratuity, or both, as may be prescribed
under the rules and regulations framed for this purpose.’
4. ‘Female Cabin Crew shall be allowed pension on early retirement from service on
attaining the age of 35 years or more and completing minimum 10 years continuous service.’
5. While the methods for calculation of pension funds and relevant structures of pension
calculation based on the time period of service provided is given in the HR manual of PIA, on
aspect relating the topic found out by our interview was the level of discrimination imposed
when pension funds are proposed.
6. The pension system of PIA faces discrimination in the following way: (From the
Interview) ‘The pension amounts of an officer earning a salary of, say, Rs. 20,000 working in the
HR or Finance department of PIA is more from that of the pension amount of an officer working
in Public Relations, Marketing or Cargo department earning the same salary amount. This
discrimination has been prominent since the beginning of the 2000.
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CHAPTER NO. 4
DISCUSSION
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DISCUSSION
Vision & Mission Recruitment and

of PIA Selection Policy of
PIA
According to the vision of PIA, it is exhibited that the performance of an organization in
exceeding their customer expectations and other operations rely on the productivity of their
employees who are supposed to be dedicated and committed to their goals. Recruitment and
selection policy of an organization is only effective when it aligns with the vision of an
organization as vision provides the organizations a specified direction on what it really wants to
achieve. A vision is an artistic anf futuristic statement with dreamy and charismatic words, but it
really does not mean that it is far from the reality or is impractical. Recruitment can be described
as the process in which an organization is indulged such that applicants are attracted to apply for
any vacancies arising and selecting the appropriate candidates and ensure that they are armed
with the suitable training such that they are able to perform at an optimal level. In case of PIA,
The recruitment and selection policy is very much linked to its vision statement as the dedicated
employees will be recruited only if an organization has a strong recruitment and selection policy.
In other words, if there is some problem arising in recruiting qualified employees, then the
organization would not be able to achieve its goals and objectives, its strategies, its mission and
finally its vision.
PIA Mission is set by the higher management for the overall organization that provides track to
middle and lower level employees, so that they can bring the company at an established position.
Because higher management cannot directly take part in improving customer satisfaction so team
work is required from ticket reservation to landing of plane. Employees work in different teams
such as office staff, ground staff, cabin crew and flight attendants as to perform day to day
operations and to achieve overall objectives and mission. PIA believes in team work and without
that they cannot achieve their mission but they do not empower their employees to participate in
the decision making process.
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Being an Equal opportunity employer, PIA recruits employees for higher positions internally and
externally. To ensure the cost effective measures, PIA recruits the best talent for their
organization to serve.
Training and
Vision & Mission
Development
of PIA
Policy of PIA
PIA’s vision can be aligned to its training and development policy as PIA's vision is to be a
world class airline through dedicated employees. So, employees should be dedicated in order to
achieve the goals of the organization. Therefore, good development program and procedure are
essential to achieve goals. As per the PIA’s mission employee teams will contribute towards
making PIA a global airline of choice shows that PIA believes in team work and without that
they cannot achieve their goals and mission. Training leads towards development and when
employee's skills are developed then organization can easily achieve its objectives Training is
essential to make employee more dynamic to perform task. Training is strategy to retain an
employee in the organization It is duty of top level management to review the performance
appraisals of employee and if they feel lack any where they should provide proper training to
cope with that problem. This strategy is some sort of investment on employee. When employee
feels that company is investing on he/she they always try to perform better.
Pay, Benefits and

Vision & Mission
Compensation
of PIA
Policy of PIA
The vision statement of PIA is to be a world class airline exceeding customer expectations
through dedicated employees, committed to excellence. Many years back it was the world
class airline but unfortunately due to financial crises, high crash rate and other issues related to
the management, PIA failed to achieve the goal of remaining world class airline. Employees can
only be dedicated and committed when they know that they are fairly compensated. They would
be rewarded for their contribution to the organization.
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Therefore, PIA needs a revised vision statement. Its vision must be to cover more locations
domestically and internationally and also be an airline carrier that has the most dynamic
workforce to guarantee the best flight possible for every passenger.
The mission statement of PIA shows that it is driven by the highest standards of corporate
governance and social responsibility. As a public sector organization and a business leader, PIA
believes in building strong relationships with customers, partners, employees, and the
communities in which it operates. PIA is gifted with teams of professionals who pursue
excellence and deliver confidence. The health and welfare of employees has always been a
matter of utmost importance and significance at PIA. Corporate Safety & Quality Assurance
Division ensures safe operations by monitoring implementation of international standards and
recommended industry practices.
Vision & Mission Retirement Policy

of PIA of PIA
As the vision of PIA is to meet customer expectations by providing world class and innovative
services though dedicated and committed employees. Through retirement policies of PIA it is
shown that company is focusing on employee choices of retirement by providing the options of
early and extended retirement. It will make their employees more dedicated and motivated and
they will be able to provide more innovative services.
55 | P a g e
CHAPTER NO. 5
CONCLUSION AND RECOMMENDATIONS
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CONCLUSION
So, we visited PIA to study different Human Resource Policies of PIA including recruitment and
selection, retirement, employee orientation, training and development, pay and compensation
policies. We also studied and analyzed different research articles related to these policies as
mentioned in literature review. Firstly, we have briefly explained all the policies and then we
have aligned these policies of PIA with the mission and vision of PIA. As we believe, that
policies of an organization should be aligned with its mission and vision. Only then, the
implementation of policies is fruitful to achieve the organization goals and objectives. Also,
when the policies are aligned with vision and mission, it motivates the employees to work at
their best to achieve the organization’s goals as the policies provide employees a direction and
help them make decisions efficiently. So effective implementation of a policy requires its
alignment with vision and mission. We have also provided certain suggestions and
recommendations regarding each policy.
RECOMENDATIONS
Recruitment and Selection; Problems and Recommendations
 Old HR Manual
This may due to the centralized decision making, but the HR manual was last updated 10 years
ago.
Recommendation:
We suggest that the HR department be given authority of the HR manual so they can update it,
keeping in mind the company’s strategic objectives.
 Poor Management
57 | P a g e
The Management at PIA is very poor. Their recruitment policy is not that effective and they tend
to be targeting older people with it. The current trend is to hire fresh graduates who have a knack
of grasping things easily, adaptability and greater vigor.
Recommendation:
PIA needs to start advertising in Universities or places where a younger pool of people may be
attracted.
 Lack of Adherence to the Manual

Although the Manual clearly states authority to the managers, it is not being exercised. There is a
lot of government and political interventions including practices of favoritism.
Recommendation:
The HR manual be updated and all employees at all levels should adhere to it. The Hr
department needs to be given authority to ensure line managers comply with equal employment
laws and occupational safety and are implementing the company’s human resource policies and
practices.
 Maximum age for airhostess is being ignored
The maximum age for cabin crew “air hostess” is 30 years, it is being ignored and we see many
old air hostesses. This shows ignorance of the HR manual.
Recommendation:
The HR manual be updated and the age be increased to 35 years or 40.
Recommendations: Training Policies and Methods
 While the HR manual of PIA is keen on explaining the financial side of all trainings
performed in PIA, it must also mention the types of training methods used for what
specific type of job title.
 Increment in the training tenure of Flight Engineers from one year to two years. And
reduction of training tenure of Apprentice Cooks from three years to two years.
 Increment in the training tenures of training abroad programs of job titles with Service
Bonds of 5-7 years from two weeks to 40 days.
58 | P a g e
 A certain complaint put forward was the extreme lack of cross-departmental job
knowledge the employees lack here at PIA. It must be made communicative with the help
of Lecture-based training.
 Online training methods must be introduced at PIA to reduce training time tenures for
Lecture-based trainings.
Recommendations: Compensations and Benefits
 Lower the Bonus pay scale from V to IV.

 Effective policy making for the removal of discriminative pension plans.
 Increment of Foreign Leave Days from 15 to 20 for a service period of 190 days.
 Addition of medical facilities to parents of Trainees.
 Quarantine Leave applicable to all employees at all pay grades
Recommendations: Retirement Policy
 There should be fair pension system for all department employees to avoid
discrimination.
 There should not be a specific age limit for applying for early retirement.
 Disable employees should be granted with more retirement benefits.
FUTURE RESEARCH
Future research can be done by studying other policies, strategic decisions and resource
allocation processes targeted at other Human Resource practices of PIA, such as performance
appraisal, code of conduct and job design. Also, the study can be extended to other areas of
organization such as the policies within marketing, finance department can also be identified and
studied. Further, these policies can be aligned with the vision and mission of PIA in order to see
how they are helping to achieve their goals efficiently and effectively.
59 | P a g e
REFERENCES
 Hofhuis, J., Van der Zee, K. I., & Otten, S. (2016). Dealing with differences: The impact
of perceived diversity outcomes on selection and assessment of minority candidates. The
International Journal of Human Resource Management, 27(12), 1319-1339.
 Guerci, M., Montanari, F., Scapolan, A., & Epifanio, A. (2016). Green and Non-green
recruitment practices for attracting job applicants: Exploring independent and interactive
effects. The International Journal of Human Resource Management, 27(2), 129-150.
 Hinojosa, A.S., Jack H., & Payne G. (2015). Pre-recruitment organizational perceptions
and recruitment website information processing. International Journal of Human
Resource Management, 26(20), 2617-2631.
 Youvraj, M. (2016). Adoption of technology in recruitment of library professionals and
faculty members. The Bottom line, 29(4), 241-250.
 Sung, S.Y., & Choi, J.N. (2016). To invest or not to invest: strategic decision making
toward investing in training and development in Korean manufacturing firms. The
 Sabella, A.R., & Analoui, F. (2015). Managerial training and development in
telecommunication organizations in Palestine. Journal of Management Development, 34
(6), 685 – 703.
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 Verwaeren, B., Van Hoye., & Baeten, X. (2016). Getting bang for your buck: the
specificity of compensation and benefits information in job advertisements. The
 Bish, A., Newton, C., & Johnston, K. (2015). Leader vision and diffusion of HR policy
during change. Journal of Organizational Change Management, 28(4), 529 – 545.
 Spiegelaere, S.D., Van Gyes, G., & Geert Van Hootegem. (2016). Innovative work
behavior and performance related pay: rewarding the individual or the collective. The
 Gunderson, M., & Y. Lee, B. (2015). Pay discrimination against persons with disabilities:
Canadian evidence from PALS. The International Journal of Human Resource
Management,
 Duberley, J., & Carmichael, F. (2016). Career Pathways into Retirement in the UK:
Linking Older Women’s Pasts to the Present. Gender, Work and Organization. 23(6), 41-
50.
 Cabib, I.M et al. (2016). The Influence of Interlocked Employment–Family Trajectories
on Retirement Timing. Work, Aging and Retirement, 2(1), 38–53.
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APPENDIX
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64 | P a g e
LEAVE APPLICATION FORM:
PRIVILEGE SICK SPECIAL WITHOUT PAY DAYS OFF
NAME: STAFF No: DESIGNATION DEPTT/LOCATION
LEAVE REQUESTED: APPROVAL:
From__________ to ___________Total Days__________ Recommended
Reason ________________________________________ Not Recommended, (Reasons)
______________________________________________
_________________________________
ADDRESSES: _________________________________
(I) Local: - _____________________________________
(II) Permanent: - ________________________________ (Immediate In charge) Date
(III) While on leave:-______________________________ Approved Not Approved
Signature_____________ Date_______
__________________ _________________ Title ____________________________
LEAVE ADVICE-PERSONNEL COPY Ref:
Date: ________________
Mr./Miss/Mrs.______________________________________________________P/
_______________
O ____________________________has been granted _______________days leave, as follows:
PL (Current) - From_____________ to ___________ Total ___________ days
PL (Foreign Earned) - From_____________ to ___________ Total ___________ days
LPR - From_____________ to ___________ Total ___________ days
OFF - From_____________ to ___________ Total ___________ days
SICK LEAVE - From_____________ to ___________ Total ___________ days
SPECIAL SICK LEAVE - From_____________ to ___________ Total ___________ days
65 | P a g e
ACCIDENT LEAVE - From_____________ to ___________ Total ___________ days
L.W.P. - From_____________ to ___________ Total ___________ days
Leave period salary may be paid in advance subject to attendance/clearance. His/her rejoining
date is_____________________________
______________________________________
HR Manager / HR Officer
Retirement Form
PAKISTAN INTERNATIONAL AIRLINES MANAGER - PIA PENSION DATE: ________________ PIA – HEAD
OFFICE LIFE CERTIFICATE - WIDOW/WIDOWER (FOR THE QUARTER_______________) This is to certify
that Mr/Mrs ______________________________________________, widow/widower of Mr/Mrs of
_________________________________________, P.No: ________________ is alive. Please release
his/her pension. ______________________________ __________________________________
Attested / certified (By Name Stamp) Widow / Widower Signature WIDOW/WIDOWER’S THUMB
IMPRESSION __________________ WITHOUT THE FOLLOWING YOUR CERTIFICATE WILL NOT BE
ENTERTAINED | | | | 1. THUMB IMPRESSION SHOULD BE WITH MAGNETIC INK | | 2. LIFE CERTIFICATE
MUST BE SUBMITTED IN ORIGINAL | | 3. MAKE SURE BY NAME STAMP MUST BE AFFIXED |
______________________| 4 CURRENT DATE MUST BE MENTIONED RIGHT THUMB FOR MALE/LEFT
THUMB FOR FEMALE CNIC NO (WIDOW/WIDOWER) ___________________________________
PHONE/MOBLE NO._____________________________________ (P.COPY TO BE ATTACHED) E –MAIL:
____________________________________________________ PAKISTAN INTERNATIONAL AIRLINES
MANAGER - PIA PENSION DATE: ___________________ PIA - HEAD OFFICE LIFE CERTIFICATE FOR
RETIRED EMPLOYEE (PENSIONER) (FOR THE QUARTER ---------------------) This is to certify that Mr/Mrs
_______________________________________________, P.No:___________ is alive. Please release
his/her pension. ______________________________ _________________________________
Attested / certified (By Name Stamp) PENSIONER’S SIGNATURE PENSIONER’S THUMB IMPRESSION
__________________ WITHOUT THE FOLLOWING YOUR CERTIFICATE WILL NOT BE ENTERTAINED | | | |
1. THUMB IMPRESSION SHOULD BE WITH MAGNETIC INK | | 2. LIFE CERTIFICATE MUST BE SUBMITTED
IN ORIGINAL | | 3. MAKE SURE BY NAME STAMP MUST BE AFFIXED |______________________| 4.
CURRENT DATE MUST BE MENTIONED RIGHT THUMB FOR MALE/LEFT THUMB FOR FEMALE CNIC NO
66 | P a g e
(PENSIONER) __________________________________________ PHONE/MOBLE

NO._____________________________________ (P.COPY TO BE ATTACHED) E –MAIL:
____________________________________________________
67 | P a g e

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Business Policies of Pakistan International Airlines (PIA)

CHAPTER NO. 1.........................................................................................................................

CHAPTER NO. 2.........................................................................................................................

CHAPTER NO. 3.........................................................................................................................

Recruitment & Selection Policy of PIA......................................................................................2

Training and Development Policy of PIA....................................................................................2

Pay, Compensation and Benefits of PIA......................................................................................2

Retirement Policy of PIA.............................................................................................................2

CHAPTER NO. 4.........................................................................................................................

CHAPTER NO. 5.......................................................................................................................2

Conclusion, Recommendations & Future Research....................................................................2

A business policy is an implementation of an organization’s strategy. Strategy involves the

 Recruitment and Selection

Its main Bases are:

 Jinnah International Airport, Karachi

 Allama Iqbal International Airport, Lahore

 Benazir International Airport, Islamabad and Rawalpindi

Recruitment and Selection

Training by digital Technology

Using distance Training

INPUTS PROCESS OUTPUTS

Individual Training Outcomes

Organization & Job

Conceptual Research Model

Research limitations/implications: Future research should employ a longitudinal design to

Recruitment and Selection

1. What is the purpose of the Job Manual in recruitment and selection?

2. What do you think, what are your recruitment constraints?

Job Manual of PIA:

HR, Admin & Coordination

Job Descriptions Manual PIA Training Centre Chapter 3

Job Title Pay Group Reports to

Chief Instructor IX Principal PIA Training Centre

Aerospace Unit KHI 3.7.1

Educational Qualifications: Work Experience:

 BE-Aeronautical Engineering  15 years Instructional experience

Skills / Special Requirements: Professional Training / Courses:

 Instructional  As per PTC Exposition Manual

B. Job Description & Responsibilities:

 Maintain disciplined unit/class environment for ensuring training effectiveness  Foster

The Ad usually comprises of the concerned positions Job specifications as follows:

Drawbacks of External Recruitment:

Application Form (attached in Appendix)

 It also includes various verifications including Medical checkup, background checks,

Private Employment Agency:

TRAINING AND DEVELOPMENT

Suggestions: Employee Orientation

 Employee orientation must be expanded to all known departments of PIA.

 If classroom method is established, the lecturer must use multimedia to efficiently

 Career Development at PIA:

 Training & Development at PIA:

Category of Personnel Training Period

Air Hostess 12-25 Weeks

Apprentice Colts 3 Years

Trainee Engineers 5 Years

Apprentice Cooks 3 Years

Aeronautical Cadets 3.5 Years

Flight Engineers 1 Year

Any Other Category 1-3 Months

 Mandatory Training Programs:

Employee Category Pay Group Training Programs

Staff Cadders I-V Junior Management

Assistant Manager VII Middle Management

From____ to _Total Days______ Recommended

__________ _ Title ____________________

O ______________has been granted _days leave, as follows:

PL (Current) - From_______ to _ Total _______ days

PL (Foreign Earned) - From_______ to _ Total _______ days

LPR - From_______ to _ Total _______ days

OFF - From_______ to _ Total _______ days

SICK LEAVE - From_______ to _ Total _______ days

SPECIAL SICK LEAVE - From_______ to _ Total _______ days

ACCIDENT LEAVE - From_______ to _ Total _______ days

L.W.P. - From_______ to _ Total _______ days