Benazir Bhutto Shaheed University Lyari

Organization Behavior Project:

Name: Abdul Basit Riaz Hussain

Reg # B-2011003
Semester: 6th A

Submitted to
Sir Khurram Shakir
 Contents
Introduction of PAKISTAN RAILWAYS.................................................................................................
PROBLEMS FACED BY PAKISTAN RAILWAYS:..............................................................................
 Shortage of Advanced Locomotives:......................................................................................3
 Huge Losses & Budget Deficit.................................................................................................3
 Mismanagement.......................................................................................................................3
 Decreased Market Share.........................................................................................................4
 Corruption................................................................................................................................4
INTERVENTIONS FOR PAKISTAN RAILWAY:.................................................................................
1. STRUCTURAL DESIGN:......................................................................................................5
2. Restructuring Organizations..................................................................................................5
3. REENGINEERING.................................................................................................................5
4. DOWNSIZING........................................................................................................................5
5. EMPLOYEE INVOLVEMENT AND COMMITMENT.....................................................6
6. Goal Setting..............................................................................................................................6
7. Performance Appraisal and Reward Systems.......................................................................6
8. Career Planning and Development.........................................................................................6
9. Managing Work Force Diversity and Employee Wellness...................................................6
Conclusion....................................................................................................................................................
Recommendation:........................................................................................................................................

Introduction of PAKISTAN RAILWAYS

Pakistan Railways (reporting mark PR) is a national state-owned rail transport service of
Pakistan, head-quartered in Lahore. It is administered by the federal government under the
Ministry of Railways. PR provides an important mode of transportation throughout Pakistan.
It is commonly referred to as the "life line of the country", by aiding in large-scale movement
of people and freight throughout Pakistan.

PROBLEMS FACED BY PAKISTAN RAILWAYS:

There are five major problems Pakistan Railways is facing:

 Shortage of advanced locomotives
 Huge Losses & Budget Deficit
 Mismanagement
 Decreased Market Share
 Corruption.

 Shortage of Advanced Locomotives:

The Pakistan Railways has a total of 546 locomotives but only 290 are on track while the rest
are out of order. Similarly, 70 per cent carriages are out of service. In a report submitted to
Railway Ministry, it has been disclosed that as many as 70 locomotives are awaiting spares at
Pakistan Locomotive Factory, Risalpur since 2004. (pakistan railway problem, 2010)

 Huge Losses & Budget Deficit

The reason for this loss is the presence of unnecessary departments which are white elephant
for Pakistan Railways. The biggest among those is the Railways Police that takes over Rs 1.5
billion including emoluments and other facilities followed by Stores and Purchase. These
departments should be abolished from Railways without further delay. Their utility for
railways is marginal at best. The Audit and Accounts, Railways Workshops Division, and
General Administration staff need drastic cuts. These organizations are heavily overstaffed. If
they will continue to ignore the presence of non-productive over staffed departments with
very insignificant contribution in overall performance of Pakistan Railways, the department
will continue to decline. It shall never be in a position to meet the expectations of public.
Railways are operating at low rates. A flexible policy for rates and fare requires to be adopted
whereby freight rates could be varied according to the type of commodities as well as
direction. (pakistan railway problem, 2010)

 Mismanagement
Currently Pakistan Railways is facing acute shortage of locomotives and spare parts for
maintenance of out of service locomotives. Since independence little has been done to expand
the railway network in Pakistan. As per the reports compiled by the design team, Pakistan
Railways need 40 – 50 locomotives annually to run its operations effectively. However,
during the past two decades only 100 locomotives have been added. The management of PR
has failed to generate revenues through use of assets like land, locomotive factory, carriage
factory etc.
The focus of Railway officials is on getting new locomotives while ignoring the improvement
in operations and maintenance of existing locomotives. The plans to change broad gauge into
standard gauge at this stage are not just costly but also unnecessary. (pakistan railway
problem, 2010)

 Decreased Market Share

Over the years, Pakistan Railways could not maintain its share in the country’s transport
sector. With Railway ministry shutting down operations of various trains, it is no wonder that
the market share of Pakistan Railways in cargo transport has fall to mere 5% from 75% in
1960s and 1970s.
Around the world, railways are the cheapest and safest mode of transport and majority of
goods transport is carried out via railways. However, in Pakistan the situation is completely
different. The indifferent attitude of various governments, direct competition from NLC,
container mafia and bus mafia are all behind the drastic condition of Pakistan Railways
today. Railways and NLC need to coordinate their operation and also compete in their
operations to economize on the inter – modal movement of goods traffic. The Railway should
carry goods in bulk in the plains, while NLC and private road transport should take over
further distribution from these points in to the hilly regions. This will help the railway to
concentrate its resources of locomotives and wagons on the main line in the plains, after
withdrawing them from the hilly regions. This is in fact the best and most economical rail
road mix for the country. (pakistan railway problem, 2010)

 Corruption
Corruption is the biggest problem Pakistan Railways is facing today. The Railway
Department has been suffering losses since years long. Contractor system is one of the causes
of such losses. Moreover, there are enormous irregularities in local purchases. The number of
officers’ cadre has increased considerably since 1977, mostly due to political appointments. It
has been revealed that the crises are self-generated creating a space for more corruption and
PRACS-Pakistan Railways Advisory Commute Services is responsible for this mess.
Selective services have been privatized by allotting its contract to different private parties to
operate those privatized trains. Ironically the contract has been awarded only for ticketing and
like buss conductors those private firms after selling out the ticket deposits payments into the
Railways account. As per agreement after deducting its commission the contractors are
legally bound to deposit the funds into the Railway account but due to the nexuses between
Railways bosses and private contractors deposit the funds in private accounts.
In short Pakistan Railways is a classic example of bad governance, poor policies, corruption
and mismanagement. (pakistan railway problem, 2010)
INTERVENTIONS FOR PAKISTAN RAILWAY:

To improve productivity of Pakistan Railway, we as an OD consultant can do techno

structural interventions and human resource management interventions. We are selecting
these interventions because we observe that by doing technical interventions and human
resource interventions, we able to bring new technology in PR and we recruit and select only
skilled and job match candidates first and then we would continuously observe their
performance and talent level and would give financial and non-financial rewards to motivate
their performance level and increase their production level. And involve them as much as
possible in decision making and empowered them for employee involvement and committed
them in organization.

1. STRUCTURAL DESIGN:
The structure needs to be revamped into a leaner and more flexible one. A combination of
divisional and network structure will be most appropriate for Pakistan railways. The PR
management can retain the structure based on current divisions and create a network of these
divisions for better management of operations and resources.

2. Restructuring Organizations
We are focusing upon how to divide the overall work into subunits and how to co-ordinate
these subunits for task completion. By this we are capable to set our mission and vision more
clearly and also make aware of this transparent knowledge to our clients and members of the
organization.

3. REENGINEERING
Pakistan Railways have great potential for growth. Pakistan Railways can improve the
performance of its various functions and department through proper use of information
technology. The areas where information technology can play a vital role include:
 Seat Reservations
 Freight Management
 Asset Management
 Track Management
 Electric Billing
 Timetable

Pakistan Railways should be privatizing some of its units like The Locomotive Factory, The
Carriage Factory and other large manufacturing units. Only privatization of this sector is the
solution of problem because currently government of Pakistan has to bear the huge losses
monthly.
 4. DOWNSIZING
The Pakistan Railways is an over staffed organization. Political appointments over the years
have added to the problem and are the major reason behind organization’s financial troubles.
Departments like Railway Police, Stores & Purchase need to be abolished.
5. EMPLOYEE INVOLVEMENT AND COMMITMENT
By involving employee to our organization, we are capable to bring successful interventions
and low resistance from organization. We have to increase their commitment by information,
knowledge and skills, sharing of decision power with the union and its members and rewards
are manipulated to increase employee participation and empowerment in organizations. It
increases focus on the improvement of organizational processes and customer satisfaction.

6. Goal Setting
By setting goals for all members of organization we would able to do more productive work
in Pakistan railway. Employees should be goal directed towards organization mission and
vision.

7. Performance Appraisal and Reward Systems

Line managers should compare their subordinate’s actual performance to the standards that
have been set. They should set appropriate task for all their subordinates like: Role
requirements (Expected outputs and outcomes), Objectives in the form of targets and
standards of performance, Performance measures and indicators, Knowledge, skill and
competency, Corporate core values or requirements, performance development plan and
continuously monitor their performance, skill and mental level and give feedback and
appraise them to bring better commitment of employees towards organization’s goal and set
rewards for them (intrinsic and extrinsic rewards).

8. Career Planning and Development

Management should pay attention for their employee’s career planning and development
opportunity to satisfy them and retain best employees in organization. Management should
arrange workshops, seminars, on-the job and of-the job training programs and job rotation to
satisfy all employees and managers to retain in Pakistan railway.

9. Managing Work Force Diversity and Employee Wellness

We should consider organization basic culture and the working condition which best suits for
them and eliminate gender difference and biasness among employees and make good
compensation plan for employees.
Conclusion

Pakistan Railways have great potential for growth. Pakistan Railways can improve the
performance of its various functions and department through proper use of information
technology. Pakistan Railways should be privatized because this is one solution of problem
because currently government of Pakistan has to bear the huge losses monthly. Pakistan
railway have some financial problems due to over staff. It’s should be mange according to
their needs of employee. Pakistan Railways can create networks to operate some of its route
for privatized trains. so, with these interventions many problems are solved in PR. implement
on this intervention. once the change has been made then can be made Organization
Development & Change.

Recommendation:

 Firstly, employee needs motivation level increases then employees will become more
productive.
 The salaries of the employees should be reasonable.
 The present situation of Pakistan railway may not change unless corrupt high ups are
removed, suspended and dismissed from the services.
 Pakistan Railway should develop the compensation plan for employees to motivate
their performance level.
 Focus and enhance the productivity of organization and expand their abilities in to a
sustainable and productive market in an ethical manner.