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Total Quality Management has been considered as one of the most significant management innovation of the 20th century. TQM is based on quiet native and traditional views of an organization but it has had a major influence on the contemporary management practices. TQM role and concepts are examined based upon how an organization will meet its mission and the definitive objective for long term survival.

Organization‘s main concern is how to achieve organizational goals & long term survival, it depends on multiple factors. The very basic level of organizational survival is based on the internal integration and the process of external adaptation.

The first section of the report presents the articles on which our study is based, the second section of the study is the introduction of the organization, and the third section shows the passenger survey and questionnaire. Fourth section results explorations and investigates of the challenges and problems which the national carrier PIA (Pakistan International Airline) is facing while implementing TQM.

The findings and results advocate that Total Quality Management System should develop itself with the changing internal and external environment. Some strategies have been by us which would improve the performance of the organization and help it to cope up with the challenges.

At last, our research conclusion & there also recommendations were made which are helpful for the organization (Pakistan International Airline) for their future perspectives.

Article # 1 Published: December 21, 2011
This article is not written with the intent of defending President ASIF ALI ZARDARI or his party. It aims to illustrate how the hyper personalization of politics and governance in Pakistan has created unachievable expectations for quick fixes, based on overly simplistic explanations of state failure.
Pakistan International Airlines (PIA) is an illustration of perhaps the biggest disservice the president has done for his country; he allowed himself to become a lightning rod for every explanation of state failure. By explaining the poor performance of the state to the person who occupies the Presidency, we overlook the many structural, underlying and historical reasons that perpetuate state failure.
“The dominant narrative which explains the mess that PIA is currently stuck in, is that the national carrier is purposely being run into the ground so that Indus Airway,linked to the president’s sister Faryal Talpur, can benefit. In fact, it appears that ABDUL WAHAB, the man behind Karakoram Motors is the lead investor in Indus Air”.
Last week, news report claimed that PIA had grounded 18 planes. A passage read:
On Wednesday, a Riyadh-bound flight from Lahore was just cancelled only because a 9-volt battery, used to operate one of its emergency gates, was found out of order, provoking the passengers who vent their anger on the airport administration.
I am not sure about everybody else, but if this happens with me, I would want my plane to be grounded when it’s most crucial component that facilitating emergency exits is out-of-order. Granted, PIA could do a better job to replace the offending part on time and improve preventative maintenance. However, given the news, FACEBOOK and Twitter lit up with commentary on how PIA is purposefully sabotaging and compromising its own aircraft to serve the president’s interests.
A couple of months ago, rumors circulated that the increased frequency of emergency landings by PIA were being orchestrated to tarnish its image and reputation. Investigation should be carried out to find out if poor maintenance and incompetence has led to an increase in emergencies. Why would experienced pilots risk not only their lives and licenses but also the lives of their crew and passengers by “orchestrating” emergency landings?
PIA faces many challenges like global economic depression, rising fuel costs, stiff competition, massive labor costs and inefficient vendor supply chains, to name a few. It also has to deal with the recruitment of skilled staff to Gulf carriers while there is a drought in airline financing and the poor image of Pakistan negatively affecting its ability to attract passengers from other countries. It’s ironic when an airline cannot upload an accurate destination map. And it doesn’t help either when the MD of that company states that: “pilgrims should be thankful for travelling in aircraft, rather than on camels”!
However these issues, incident by incident are overlooked and reduced to the now ubiquitous explanation that PIA’s failures are a result of ZARDARI’s greed.
PIA is managed under the Ministry of Defense (MOD) and the MOD for all practical purposes is under the influence of the military. Does the cozy relationship between the regulator, the CAA and PIA not lead to a conflict of interests? Speaking of the military, why do we overlook how the military run NLC has contributed to the railway’s decline?
ZARDARI and the PPP are rightly criticized for mismanagement and poor governance. However, decisions that influence the well being of the state organizations or require the allocation of taxes payer resources must be made on the basis of a rational and impassioned analysis. Not doing so creates the illusion that only PPP’s exit will lead to an improvement and also imposes improbable expectations on the government that will follow.
Whoever comes into power after ZARDARI will have to meet the expectations of a society which has been made to believe that every ill faced by the nation is the result of the greed and incompetence of one individual. A nation misinformed by political parties, commentators and the media, is then unable to accept the necessary reforms that our state owned enterprises require. Will getting rid of the PPP and ZARDARI be enough?

Article # 2

Published in The Newspaper
Once upon a time, when a pixie haircut was still the rage, a smart adman took up the catchy words of an executive at the national carrier as its slogan:
‘Great People To Fly With’.

Little did he know to what extent the future head honchos of the carrier and their minions would render inaccurate Omar KURESHI’s words over the years.
First went the greatness, then the people and then, in the end, the flights as well.
In 2011, Pakistan International Airlines was plagued by the same affliction as other state-run enterprises: political interference, incompetence and inefficiency, increases in fuel prices, lack of funds.

And so almost 50 per cent of its fleet was grounded and flights all but stopped running on schedule. One two-hour flight to Faisalabad scheduled to leave at 7am arrived at 9pm after delays and transits. In one one-month period more than 190 flights were cancelled, delayed or rerouted. Every other day brought news of a technical fault, sometimes resulting in an emergency landing.

News emerged that all spare-part purchases had been outsourced to a single agent, no doubt an ingenious way for PIA employees to slack off as much as possible. Saudi VIPs, it emerged, had been showered with gifts from the burgeoning PIA kitty.
Some claimed the smell of something amiss led to President House, others said it led to his sister’s place. One cannot be sure which lead to pick up. Or whether one will end up where one pays the airline to go. Perhaps, as they say, I’ll Arrive.
— NADIA JAJJA was formerly an editor at Herald

P akistan International Airlines (also referred to as PIA), is the national flag carrier of Pakistan and the national airline operating passenger and cargo services around the world. Its main hubs are Jinnah International Airport, Karachi, and the ALLAMA IQBAL International airport, Lahore and the Islamabad International Airport.

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, to set up a national airline, on a priority basis. With his singular vision and foresight, Mr. Jinnah realized that with the formation of the two wings of Pakistan, separated by 1100 miles, a swift and efficient mode of transport was imperative.

While Mr. M.A. ISPAHANI was the first Chairman of the new dynamic airline; it was the first Managing Director of PIA, Mr. ZAFAR-UL-AHSAN, who in his 4 year tenure got the ball truly rolling and set the shape of things to come. The PIA Head Office building at Karachi Airport, which houses the entire major departments of the airline, was the brain-child of Mr. ZAFAR-UL- AHSAN. In fact, on his departure from the airline, the employees presented him with a silver replica of the building with the caption, "The House You Built".

MISSION STATEMENT OF PIA

As a symbol of National pride, Pakistan International must strive to be an airline of choice operating profitably on modern commercial concepts, capable of competing with the best in its entire International and Domestic markets consistently exceeding customer expectations. It should be a choice employer deploying modern technology in all spheres of it’s activates.

* Islamabad – Rawalpindi(Benazir Bhutto International Airport) Hub | * Northern Areas * GILGIT * SKARDU | * North West Frontier Province (NWFP) * CHITRAL * DERA ISMAIL KHAN * Peshawar (Peshawar International Airport) Focus City | * SINDH * Hyderabad * Karachi (Jinnah International Airport) Hub * MOENJODARO * SUKKUR | * Punjab * Bahawalpur * DERA GHAZI KHAN * Faisalabad * Lahore Hub * Multan * RAHIM YAR KHAN * Sialkot | * BALOCHISTAN * DALBANDIN * GWADAR * PANJGUR * Quetta * TURBAT |
“DOMESTIC NETWORK OF PIA”

“INTERNATIONAL NETWORK OF PIA” * South East Asia * Malaysia * Kuala Lumpur * Thailand * Bangkok | * North America * Canada * Toronto * United States * New York City (JFK) | * Southwest Asia * Bahrain * Manama * Kuwait * Kuwait City * Oman * Muscat * Qatar * DOHA DAMMAM * SAUDIA * Jeddah * Riyadh * United Arab Emirates * Abu Dhabi * Dubai * SHARJAH | * Europe * Denmark * Copenhagen * France * Paris * Italy * Milan * Netherlands * Amsterdam * Norway * Oslo |

* Orient Airways Takes to the Skies
O
rient airways, along with the help of BOAC aircraft which had been chartered by the government of Pakistan, started relief operations and transportation of people between Delhi and Karachi, the two capitals. Subsequently, orient airways transferred its base to Pakistan and established a vital link between Karachi and Dacca, the two capitals of the two wings of Pakistan. With a skeleton fleet of just two dc-3s, three crew members, and twelve mechanics, orient airways launched its scheduled operations in a fairy-tale manner. By the end of 1949, orient airways had acquired 10 dc-3s and 3 CONVAIR 240s which were operated on these routes. In 1950, it had become increasingly apparent that additional capacity would have to be inducted to cater to the growing needs of the sub-continents. * PIA’s First International Service

he 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. Initially, there was much criticism, as the public could not comprehend or justify the need to operate an international route when, in their opinion, other projects vital for a developing country should have been given a higher priority. However, PIA's focus was, and continues to be, to serve the Pakistani community at large. The provision of transportation to expatriates has remained one of the foremost priorities of the national airline. Moreover, PIA earned substantial foreign exchange through international services, which it invested in the purchase of aircraft and spare parts, as fleet expansion was a grave necessity for the airline. * New Planes, New Directions, New Management

n 1956, orders were placed for two Super Constellations and five Viscounts which were to be delivered in 1959. At this juncture, PIA possessed a small fleet which comprised of Conair’s, Viscounts, Super Constellations and DC-3s.
Development, expansion, and growth were keywords that the new management was committed to. In March 1960, PIA launched its first Boeing 707 jet service on the London-Karachi-Dacca, route which later proved to be very successful. In 1961, the airline took on the mammoth task of initiating a cross-Atlantic service from Karachi to New York. By this time, PIA had placed orders for more new aircraft, which included Fokker F-27s, Boeing 720Bs and Sikorsky helicopters. Helicopter services in East Pakistan had gained momentum by 1962 and expanded to include SYLHET, Chittagong, Dacca, COMILLA and ISHURDI

* The Pursuit of Excellence Through Technology and Quality Control

IA made history yet again, by installing Pakistan's first computer, an IBM1401, in 1967. PIA's first Engine Overhaul Shop, located near the Head Office building, was also completed and commissioned around this time. The Ground Training School (GTS) now known as the PIA Training Centre was first conceived and developed during 1961-62. Interestingly, training was initially imparted in the T-shaped building which has now become the PIA Dispensary, close to the Head Office building.
Besides visible development and growth in traffic and revenues in the sixties, PIA added additional destinations, new equipment, and cutting-edge technology to support its ever expanding operations. A new Jet Hangar for Boeings with a supporting airframe overhaul shop was completed and commissioned in 1968.

* Ushering In a New Era of Growth and Development

IA heralded the nineties by donning a bright new corporate identity. Old-timers may remember the flutter that the earlier green and gold livery had created when it was first introduced in 1974. However, in keeping with the changing times, PIA introduced a smart, sporty 90's look. The familiar PIA green was reinforced with moss green and pale blue stripes were incorporated into the new corporate identity. The nineties also saw the expansion of PIA's massive Hajj and UMRAH operations to Pakistan's smaller cities. PIA's growth continues unabated and the airline now operates globally, covering the entire domestic landscape and international destinations spread over 4 continents. Since its inception in 1955, now PIA has indeed, come a long way.

“ORGANIZATIONAL STRUCTURE OF PIA”
CHAIRMAN
PIAC
SA to Chairman
Secretary PIAC
Managing Director
Director Precision Engineering
Director Coordination/ SA to MD
Chief Operating Officer
Director Flight Services
Director Network & Route Planning
Director
Flight Operation’s
Director Airport Services
Director
Administration
Director Cargo Sale & Service
Director Marketing
Director Finance
Director Engineering

“DEPARTMENTS OF PIA”

PIA Airline has been divided into the following function units.

PASSENGER SURVEY

Q.1 Do you think that PIA gives the value for your money?

NO = 87 %
YES 13 %

Q.2 Are you satisfied with the customer service you receive with PIA ?

NO = 74 %
Yes= 26 %

Q.3 Are you satisfied with the fleet that PIA carry ?

NO=81%
YES=19%

CURRENT SITUATION OF PIA

S unday, September 15, 2013- PIA has been in the news over the last two decades. Some major problems pointed out by PM is PIA accumulated losses soar to Rs 169 billion; a total loss of Rs 18.007 billion was accumulated since Jan 2013 with total fleet of 34 aircrafts and 24 planes serviceable simply reflects that at present PIA is in total mess. So the governor general Mr. NAWAZ SHARIF has suggested to privatize the PIA.As PIA lies on Ministry of Defense who failed to exercise proper control and surrendered before political pressure causing damage to national airline beyond repair.

INTERNATIONAL & DOMESTIC MARKET SHARE:

T he graph shows that PIA is only able to get 39% of international market share which is very low being the national flag carrier it should have been having more than 60% of the market share but because of many reasons PIA is not able to get the major share, while in domestic market PIA has captured the major share and the reason behind this is that there are only two other airlines operating in Pakistan other than PIA and both of them are not much better than PIA so people prefer PIA on those.

PROBLEMS WHICH PAKISTAN INTERNATIONAL AIRLINE (PIA) IS FACING 1. HYPER PERSONALIZATION OF POLITICS & NEPOTISM:

* Pakistan International Airlines being the government organization has the strong influence of the politicians and government officials.

* It was stated in one of the article By SYED NADIR EL EDROOS which was Published in December 21, 2011, that PIA the national carrier is purposely brought to decline so that Indus Airway, linked to the president ZARDARI’s sister FARYAL TALPUR, can benefit.

* Due to government intervention the management have to deploy fleets on non-profitable destinations .PIA is Operating on the non-profitable routes also called socio economic routes which is also a constraint for PIA.As a result of which PIA is bearing a loss of Rs 4crores per day i.e. Rs. 18 LAKHS per hour because the money which is received as for providing services to passengers is taxed by the government at a very high rate.

* Because of nepotism, the employees do not have as much knowledge of a commercial organization as a promoted, talented person could have.

* Selection and recruitment is not done on merit. Take the example of former three chairmen of PIA. Mr. Tariq KIRMANI was from PSO, Mr. ZAFAR KHAN was from PTCL and Mr. AHMAD SAEED was from Service industry having no experience of aviation industry.

* The Executives are selected on the basis of referent power (nepotism), these Executives then select their favorite person for new vacancies weather they have knowledge about job or not. So, this affects the overall efficiency and business of the organization. Reports say that Mr. TARIQ KIRMANI was appointed chairmen PIA due to being a friend of Prime minister. Similarly Mr. KIRMANI appointed his own friend Director MIS at a heavy salary.

2. OVERSTAFFING & MASSIVE LABOR COST:

* Pakistan International Airlines is a large organization with 18,043 employees. Its fleet comprises of 43 planes. It operating planes are just 33. It means round about 525 employees per plane which is against the international average of 150 to 250 employees. This is because of the external intervention by the government officials to recommend their own people to be adjusted in PIA which is one of the root causes of huge financial losses to the organization.

* Surplus of employees generates high labor cost for the company.

3. LAPSES IN THE MANAGEMENT:

Poor management is also important cause for the downfall of the organization. PIA is having a lot of lacking in its management:

* Employees are not in control of management so employees do what they want and so do managers.

* Some policies from management also costing the organization for eg. Over staffing.

* At some areas jobs are not clearly defined which effect efficiency and working relation of employees.

* Rate of motivational campaigns for employees very low.

* In 2011, almost 50 percent of its fleet was grounded and flights were stopped running on schedule, also more than 190 flights were cancelled, delayed or reroute Dina period of one month.

* Enormous Flight delays and cancellations complains have been done by the passengers during the last 5 to 6 years

* Despite of terrible service, long delayed flights, emergency crash landings and cancellation of flights; there re complains of unclean toilets that smell from a distance and non-serious attitude of the administration.

* Website is not user friendly. Many passengers complained that the flight schedule is not properly mentioned and credit card acceptability issue is there.

* No luggage safety.

4. RISING FUEL COST & GLOBAL ECONOMIC DEPRESSION:

* PIA has suffered huge loss of more than 64 billion rupees from 2005 to 2008.

* It has also suffered huge losses in 2009 and 2010 particularly due to increase in the price of the fuel and devaluation of Pakistani rupee.

5. AGED FLEETS:

* Aged fleet is one of the major problem as planes of PIA are very old it lead to the delays and cancellation of flight.

* Most of its fleets are old & obsolete.

* Pakistan International Airlines fleet has total 43 planes. Out of those 43, only 33are operating at the moment. The average age of the fleet is 13 years .Due to aged fleet the fuel is consumed more and maintenance expenses are increase.

* These factors result in increment in expenses. Due to the aged fleets PIA has to pay higher amount in terms of insurance cost.

6. HIGHER PRICES AS COMPARED TO OTHER AIRLINES:

PIA is functioning with costs higher than returns. Its charges are enormously high for both domestic & international flights as compared to other airlines:

* PIA ticket from Karachi to Islamabad one way costs
6500.00 PKR without taxes * SHAHEEN Airline ticket from Karachi to Islamabad one way costs
3640.00 PKR without taxes * Air blue Airlines ticket from Karachi to Islamabad one way costs 4868.00 PKR without taxes 7. POOR IMAGE AND SERVICE:

One of the major problems that PIA is facing is its poor image.

* The major reason which is spoiling PIA image is the fares of PIA are higher but services which PIA is giving to their customers are not up to that class. This also gives a bad image to the passengers.

* Day by day the image of PIA is going towards downward the unhealthy food to the passengers, the unclean and smelling toilets and the most important the delays and cancelation of flights.

* There are many complains from the passengers tat in PIA flights they are not served with food & refreshments unless they ask for it.

8. LACK OF TRAINING FACILITIES: * One of the biggest problems of PIA is lack of training PIA a big organization with almost 18000 employees but the training and development department of PIA is not enough for them.

* Without proper training, PIA moves towards downsizing due to the inability of employees to complete tasks and assignments properly and failure to comply with company rules and guidelines. * Due to the lack of training in PIA new hires and older employees are not taught and told to perform identical tasks and assignments the same way. Old training techniques become outdated, causing unnecessary conflicts in the workplace.

* Because of the untrained employees the protocol and guidelines that PIA follows are not stated clearly, which create environment of chaos, confusion and conflict.

9. POOR ALLOCATION OF FUNDS AND RESOURCES:

* The other reason is misuse of funds; most of the funds were used for lavishness by managements instead of using it on the fleet to make it considerable for the international standards.

* Borrowed funds were noticeably used for renovation o f Corporate offices, money is being spent on painting aircraft tails or pasting stickers on them; buying new LIMOUSINES; frequent foreign visits are being undertaken by senior executives including the CEO; new flights have been started only to be suspended after sustaining huge losses; expensive new long range aircrafts were procured without taking. Approval for operating such flights to USA; the list goes on and on.

* Pakistan International Airlines fleet has total 43 planes. Out of those 43, only 33are operating at the moment.

* The management of P.I.A endeavors to efficiency utilizes the fleet resources but due to the government intervention and other external forces the management is unable to utilize the resources. For instance, the fleet having a seat capacity of 120 passengers carries only 100 passengers from one point to another. Due to inefficiency of management the revenue of 20 seats is gone to waste.

10. MAINTENANCE, INCOMPETENCE & INEFFICIENCY:

* Besides having a large number of engineers, there is always been a question mark on PIA’s fleet maintenance.

* The tender for the maintenance of the aircrafts in PIA is given to a company that does not have international reputation& credibility and little experience for maintaining its fleet.

* Sagging seats and soggy seat covers, messy floor carpets, dirty and gritty outlook, malfunctioning toilet doors, rattling planes and failing equipment need refurbishment, better maintenance and planning. * The obscure vendors, hired by PIA, are one of the major problems.

* In 2000, European Union banned 20 out of 42 planes were banned from operating in Europe. This results a 4 billion Rs. loss to the company just from Europe’s segment to the company. This ban was imposed just due to the lack of proper maintenance.

* One of PIA aircrafts was inspected at Paris Airport by the inspectors of Safety Assessment of Foreign Aircraft (SAFA) while in route from Paris to Lahore. They detected several snags in the aircraft. The team detected fuel leakage from one of the engines of Airbus A-310.

* One PIA plane was returning home from Milan via Paris. The European aviation inspectors checked it at CHARLES DE GUALLE Airport, directed the crew to off-load the passengers and then detained the aircraft. The team pinpointed 39 snags including fuel leakage from Airbus A-310.

* It is stated that crew failed “to manage a quick and correct emergency evacuation” of the aircraft. PIA should assure full implementation of safety standards in light of inspection report by SAFA inspectors.

* Delays in computer up gradation is also effect output’s effectiveness & efficiency

11. LACK OF FUNDS & DELAYS OF PAYMENTS:
One of the major problems of PIA is lack of funds and delay of payment from the management

* As PIA is facing crises PIA issued checks for employees’ pay but it bounced due to non-availability of cash in national airline’s bank accounts. Due to this PIA employees get de-motivated and they did not work with effectiveness and efficiency.

* Due to the lots of corruption in Pakistan, no country is willing to give funds to the PIA. As PIA has to pay a big amount as an expense on its borrowings from banks. Already being in such a big crisis, the company is getting no support or funds, and if they give funds to PIA it is not sufficient for PIA and sometimes not properly utilized by PIA.

12. STIFF COMPETITION:

* Competitors are continuously giving tough time to the PIA with their better services and operations. The management is continuously trying to cope with the competitor’s by offering different sort of customer services. * PIA's real test in competing with private sector airlines began after the entry of Air blue in the market, in the year 2005. Comprising mostly the old management staff of PIA, Air blue started operating in domestic routes with its new aircraft. * Air blue being the strongest competitor of PIA has put the national flag carrier into trouble with its innovative products and aggressive marketing strategy. The airline introduced E-Ticketing System for the first time in the country, which was ultimately followed by other airlines including PIA. * Moreover, business class clients prefer Gulf-Airs rather than PIA due to gulf unmatched services. This is also a challenge for PIA to compete with Gulf Airs.

13. LAPSES IN THE COMMUNICATION STRUCTURE:

* The organizational structure of PIA is centralized, therefore decision-making is a time-consuming process and delays occur in downward communication.

* Effective communication is essential in all organizations and it becomes even more essential in an organization like PIA due to its large size and expanded network. It is necessary that people from various departments communicate between each other to have an overall uniformity. 14. ATTITUDE PROBLEM: * PIA is facing obstacles due to rough attitude of its in flight staff. Most of the passengers opinions about PIA staff is that they do not behave according to the standard set “come fly with PIA”

* Non serious response of MD PIA Captain NADEEM YUSUFZAI & PIA spokesman SYED SULTAN HASSAN to media.

15. FINANNCIAL CRISIS:

* The Dec 2012, report said that PIA has no money even for purchasing fuel. The airline’s planes including 777 and 147 which were sent abroad, for maintenance could not be brought back after repair due to shortage of funds.

* On one hand PIA has not enough funds to pay salaries to the employees but on the other side it imported vehicles of billion rupees for its officers but the full payment has not been made for these luxury cars by virtue of fiscal crunch., the report revealed.

* Due to funds paucity, the PIA management reportedly lacks resources to buy spare parts. As per data provided by the Defense Minister, 165 PIA executives received salaries exceeding 500,000 rupees.

STRATEGIES OF THE PROBLEMS IN PAKISTAN INTERNATIONAL AIRLINE (PIA)

“Management at the top level of PIA utilizes all the information gathered by the lower management and formulate its strategies by using its strengths and availing its opportunities to overcome its weaknesses and threats so as to create competitive edge in the airline industry”. * BETTER MANAGEMENT AND MAINTENANCE:

* They should manage proper job description of their workers and employees in their organization so that they know their work, duties and responsibilities well. * Policies must be clearly defined. So that management must assure that each and every person is committed to his job and the organization is going towards the achievement of its targets.

* Goals and objectives should be determined for the organization as a whole and also at the individual level.

* Short term objectives-- to increase the profit and market share by reducing the costs and expenses. While, long term objectives must be image building.

* Safety and maintenance issues for the planes must be strongly checked. So that they wouldn’t face such problems like complaints of terrible service, long delayed flights, emergency crash landings, cancellation of flights, and shortage of planes.

* Security and safety of cargo must be ensured. It must be management’s responsibility to ensure services to the passengers both in plane and at airport as well.

* The management needs to bring all the available resources in use and bring the modern facilities, software and information to the organization.

1. CO-ORDINATION OF DEPARTMENT AND EMPLOYEES:

* A strong human resource and administration department is working but it is needed to be work efficiently and according to the standards. International standards for recruitment must be adopted.

* They should give Proper advertisements for each and every job.

* It must also have the responsibility for handling customer queries and complaints.

* Effective campaigning of the special interests tourist’s packages for Pakistan to increase the travel to Pakistan must be done. So that the Soft and brighter image of Pakistan and PIA must be enhanced.

* The organization must provide a lot of activities in-flight to ensure that the passengers are entertained during their journey. These activities include movies, music, and in-flight duty free shops.

* PIA’s manpower should be combination of youth and experience. Both the age groups shall be included in order to gain profitability. Rewards and incentives must be attached with the performance.

* Job security must be done so that employees feel secure within the organization and remain loyal and committed to it, work for its benefits.

2. TO IMPLEMENT 5’S OF HOUSE KEEPING:

* SEIRI: (Tidiness, Sort )
The organization should be clean from all unneeded tools, parts and supplies so that it will be the less wastage of time and energy to search out any kind of material. By implement this strategy all types of raw material will be in hand.

* SEISO: (Shine, Cleanliness)
Pakistan International Airlines is a huge company with over 18, 000 employees. If all departments will be working efficiently and effectively so they will definitely meet to their higher standards.

* SEITON: (Orderliness, Straighten)
They should give their excellent performance and superior quality so that the area must be clean as the work will perform (best) and different departments will get the chance to work with a proper space.

* SEIKETSU: (Standardization)
They should apply this strategy because now a day, PIA is facing uncleanness in their some departments like unclean toilets that smell from a distance and non-serious attitude of the administration. So, that these issues create frustration among the passengers. They feel fear and life risk while travelling through PIA.

* SHITSUKE: (Discipline, Sustain)
PIA should do focus on their self-discipline to make a different position in national and international market. They should improve their performance continuously.

3. DE-CENTRALIZED CULTURE:

* Employee will better develop in decentralized decision making where they feel they are part of team whenever you involve employee in decision making you can easily achieve you desire objective in better way.

* If we talk about PIA (Pakistan international Airline) in PIA delegation of authority is limited due to centralized decision making.

* The authorities reserve the right to make decisions in Board meeting or you can say that only top level management can make decision in board meeting. The middle and lower level management is not allowed to speak for against the top level management whatever top level make or implement they have to follow the decision.

4. WITHOUT REASON (MURI), INCONSISTENT (MURA) AND A MAN WITHOUT A HORSE (MUDA)

* Producing too much or too soon.

* Waiting for parts to arrive or for a machine to finish a cycle, etc.

* Any conveyance is essentially MUDA so should kept to a minimum.

* It is simply over-processing. * Any more than the minimum to get the job done.

* Any motion that does not contribute directly to value added.

* Any repair is MUDA.

5. 11 STEPS TO BUILDING A WORLD-CLASSORAGANIZATION

i. Conduct A TQM Overview:
A TQM review is a general review of the systems and procedures currently in place in an organization. By this, I mean a review of your current habits, your lifestyle, your state of mind, your problems

ii. Set Your Mission:
A mission statement is based on your raison d’etre, i.e., the purpose of your existence, and the values that guide your life. It tells you what and where you want to be, the place that you want to occupy in this world.

iii. Identify Your Customers/Stakeholders:
A lot has been yapped about the importance of being customer-focused. To translate this into your personal life, it’s important to know that the very social nature of man makes him and his existence dependent on others and others’ perception of him. Hence, identify the stakeholders in your life.

iv. Identify Customer/Stakeholder Needs:
This one’s relatively easy if you really know your stakeholders well. However, beware of making any assumptions here or of taking anyone for granted, especially your family. v. Define Critical Processes And Measures:
This is self-explanatory. What are the critical things that you HAVE to do if you have to satisfy your stakeholders’ needs? Again, prioritization and tradeoffs are required here

vi. Set Your Vision:
A vision statement is an overarching entity that includes all organizational goals and targets. Similarly, for you, the vision would include all the goals that you’ve set for yourself, professionally as well as personally.

vii. Develop A Strategic Plan:
If you are a student or practitioner of management, this is a cakewalk. You must’ve already made a million strategies! Once you know your mission, values and vision, then this will follow.

viii. Develop An Annual Plan For The Coming Year (S):
The framework helps you to prioritize and organize your goals and strategies typically over 3 horizons, i.e., short-term, medium-term, and long-term.

ix. Revise Roles & Responsibilities:
This is bound to happen as you evolve through the stages of life, even if you don’t consciously plan for it. However, planning for it equips you better to deal with the changes

x. Form A Steering Committee To Set The Change Strategy:
When an organization is slated to change, it is often mandatory to set up such a committee that will drive the change and will help steer the company forward along the new route. The steering committee provides direction and support to the organization as it goes through the change.

xi. Conduct Annual Reviews:
“What gets measured gets done,” goes one of the favorite lines used by management practitioners. I believe that subconsciously, we all do this. However, it is mostly post mortem. If we could do a continuous review, it would make a big difference. Hence, keep tracking your progress towards your goals at regular intervals and modify your path if necessary. 6. STRATEGY 4: THE JAPANESE TOTAL QUALITY APPROACH * Organizations using the Japanese total quality approach examine the detailed implementation techniques and strategies employed by Deming Prize–winning companies and use this experience to develop a long-range master plan for in-house use.

* This approach was used by Florida Power and Light—among others—to implement TQM and to compete for and win the Deming Prize. 7. THE EIGHT ELEMENTS OF TQM * Total Quality Management (TQM) is a management approach that originated in the 1950s and has steadily become more popular since the early 1980s.

* Total quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs.

* The culture requires quality in all aspects of the company’s operations, with processes being done right the first time and defects and waste eradicated from operations.

* To be successful implementing TQM, an organization must concentrate on the eight key elements:

i. Ethics – Ethics is the discipline concerned with good and bad in any situation. ii. Integrity – Integrity implies honesty, morals, values, fairness, and adherence to the facts and sincerity iii. Trust – Trust is a by-product of integrity and ethical conduct. Without trust, the framework of TQM cannot be built iv. Training – Training is very important for employees to be highly productive. Supervisors are solely responsible for implement ing TQM within their departments, and teaching their employees the philosophies of TQM v. Teamwork – To become successful in business, teamwork is also a key element of TQM. With the use of teams, the business will receive quicker and better solutions to problems vi. Leadership – It is possibly the most important element in TQM. It appears everywhere in organization. Leadership in TQM requires the manager to provide an inspiring vision, make strategic directions that are understood by all and to instill values that guide subordinates vii. Communication – it is bind everything together. Starting from foundation to roof of the TQM house, everything is bound by strong mortar of communication. It acts as a vital link between all elements of TQM. Communication means a common understanding of ideas between the sender and the receiver. viii. Recognition – Recognition is the last and final element in the entire system. It should be provided for both suggestions and achievements for teams as well as individuals. Employees strive to receive recognition for themselves and their teams.

8. KAIZEN * Kaizen is a Japanese concept of continuous improvement designed for enhancing processes and reducing waste. Kaizen” is a Japanese approach to the workplace that has proven to be a famously effective Best Practices strategy with companies like Toyota and Sony, among others. “Kai” is defined as continuous improvement while “Zen,” a more familiar term, is loosely translated as for the better or “good.” Therefore, kaizen is to make “continuous improvements for the good.”

* Kaizen follows three principles:

1) Process And Results 2) Systemic Thinking (The Big Picture) 3) Non-Blaming, Because To Blame Is Counterproductive And Wasteful In Practice.

* When you implement kaizen into the workplace, you should aspire to make changes to your current operating standards by breaking down each process in detail, monitoring the results, and then making adjustments accordingly (“If it isn’t broke, Do fix it”) * Everyone on your team should be included in creating and attaining a well-organized, competent, and economical system. The benefits of empowering your employees create yet another virtuous cycle. It enriches the workplace and the work experience by allowing members of your company to excel and “bring out their best.”

* If your team creates more efficient processes, you will gain faster lead times and keep wages down. All of this is to help keep you ahead of your competition. You can then add those new moneymaking activities to your Best Practices and SOP arsenals for redistribution and reinforcement.

9. FARE FOR HAJJ PACKAGES * PIA had quoted Rs108, 500 as the fare for the Hajj packages but the Ministry of Religious Affairs had decided to go lower, which resulted in the financial losses.

* PIA was recovering from its ailing health.

* A total of nine aircraft were purchased on dry lease, out of which four will arrive in April, while the remained will by December.

* PIA had been posting operational profits for the last five years.

* Currently, PIA has 38 aircrafts out of which 25 planes are in service. PIA had recorded cumulative losses of Rs141 billion from 2002 to 2012.

10. RESTRUCTURING STRATEGY ADOPTED BY PIA TO OVERCOME LOSSES * Restructuring strategy adopted by PIA to overcome losses.

* Pakistan International Airlines (PIA) has developed an aggressive strategy, the company has transformed into a cumulative loss of the past eight RS200 hundred million Yuan airline president, said.

* Secretary of Defense and Chairman PIA Lieutenant (rated) ASIF YASIN MALIK solve Multan Chambers of Commerce on Tuesday.

* Speaking of Multan International Airport is completed; the President announced that this will be commissioned in the first quarter of 2014. “It’s too today, however, it should be extended after 2025,” he added. MALIK said Prime Minister NAWAZ Sharif had used a strong interest in leading the country out of the crisis, but has also developed a PIA plane.

11. UP TO DATED TECHNOLOGY:

* In today dynamic environment technological developments are playing a vital role in progress of any organization. P.I.A is using different sort of software’s in its different departments to help managers in making accurate decisions.

* As this Boeing software was implemented by P.I.A in 1998 so, there is need to implement latest software developed by AIR BUS and biometric scanners.

* It will also help to train and develop latest functions properly. It must prepare the employees for the upcoming challenges and threats in the industry. * Both the airline’s staff and other employees of the organization must be well equipped with the latest techniques and skills used in the airline industry.

* Engineering department plays a vital role in this regard. A lot of money can be saved if engineers and technicians are well equipped. No need to go abroad for maintenance and over hauling of the planes.

12. HAVING THE MAXIMUM ROUTE AND FLEET:

* PIA is having the maximum route and fleet domestic and international destinations network in Pakistan as compared to its Competitors. Route and fleet expansion will positively impact the company’s operations by increasing revenues.

* Similarly the frequency of flights can be raised to profit making routes.

* PIA can take advantage of this situation and by providing greater services so that it can get more market share.

13. FINANCE:

* Government of Pakistan holds 83% of the shares of PIA.13 % or more shares can be sold through IPO’s so that more finance will come into the company. Also private investors’ interest will rise.

* Both the government and private interest will give a new look to the company. The way of thinking will be changed entirely.

CONCLUSION

It has been conclude that PIA is in big crises mainly due to varying structure, economic problems and leadership style. As mentioned on various accounts, PIA has a centralized structure that has caused higher conflicts and poor management of employees as decisions are made by the top level management without involving the employees. In addition, this lead to complexities in employee tasks as it takes more time to reach the information from top to bottom. Due to this bureaucratic nature of PIA, inefficiencies have crept in and morale of the employees has plummeted over the year.

The PIA employees are also facing many problems from the upper management. The current status of employees is less control and authority over different task apart from their own assigned task. PIA have centralizes hiring processes. However, PIA emphasizes on experience but as it is under 80% government there is a lot of favoritism while hiring any employee. Therefore, the organization has unskilled employees who don’t have enough experience. This thing caused decreased in productivity of the employees and consequently of the organization.

At the end of conclusion, it has been observed that PIA have fear that the system will become unstable their securities will be lost, and they will not understand the new process. So, they will not know how to respond to the new situations. We have some recommendation for PIA which we hope will be implemented in the near future.

RECOMMENDATIONS

PIA is undoubtedly in a precarious condition. Its present state of affairs is the outcome of years of neglect by the government as well as the PIA's management. As of today, it has cumulative losses of over Rs 116 billion, completely wiping out its shareholders' equity and the reserves. It has one of the world's highest aircraft-employee ratios. Its customer services are sub-standard and its public perception among its own nationals is close to zero. It has one of the world's highest aircraft-employee ratios.

PIA should upgrade its fleet as it’s causing the airline higher operating cost and PIA is incurring loss.PIA should purchase new Airplane with twin engines these will reduce the operating cost of PIA airline. It should focus on customer’s satisfaction, refund process should be quick so that customer remains loyal to brand.

PIA should documenting privacy policies and practices in plain language, and developing straightforward processes to handle errors or inaccuracies, public complaints, data breaches or other problems. We recommend that the ICO develop measures aimed at promoting a closer fit between PIA and risk and project-management methodologies through direct contact with leading industry, trade, and other organizations in both the public and private sectors.

MARKETING POLICY: * PIA should adopt good marketing policies so that it will bring higher profit and maximum utilization of its available resources, Business sector should be attracted to operate at full potential. * Modernizing the airline’s fleet is badly needed as well proper maintenance of the fleet is required. * Must take advantage of the increment in the air transportation especially, towards Middle East countries and India. * Better and modern functioning of training and development departments. * Need for accountability.
DECENTRALIZATION:
PIA should decentralize its structure that would lead to the easy management and increased motivation.

STRATEGIC BUSINESS UNIT:
PIA should make its different departments into strategic business unit. Every SBU should have a defined business strategy.

EMPLOYEE EMPOWERMENT:
PIA should make effort towards empowering the employees that is going to lead to more employee participation in the decision making process.

OVERHEAD COST:
PIA should also reduce its overhead cost that it should manage its resources.

TWO-WAY COMUNICATION:
The suggestions of the employees can prove to be very effective in improving the operations as they are the ones who manage them.

“PIA employees should come up with solutions, not protests, if they really want their parent organization to grow, prosper and flourish on the national as well as the international landscape.”

REFERENCES:

* http://www.onlinenews.com.pk/details.php?newsid=210416 * http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/national/31-Jul-2013/mega-crisis-hits-pakistan-international-airlines * http://www.piac.com.pk/http://en.wikipedia.org/wiki/Pakistan_International_Airlineshttp://www.answers.com/topic/pakistan-international-airlines?cat=biz-finhttp://news.bbc.co.uk/1/hi/business/1561315.stm * http://www.utrade.co/Magazine/Utrade-Magazine.aspx?Key=408&Title=PIA's+State+of+Affairs%3A+From+National+Flag+Carrier+to+National+Liability+ * http://pakobserver.net/detailnews.asp?id=128193 * http://www.pakistantoday.com.pk/2012/03/22/comment/editors-mail/pia-under-crisis/ * http://www.onlinenews.com.pk/details.php?newsid=210416 * http://centralasiaonline.com/en_GB/articles/caii/newsbriefs/2011/12/15/newsbrief-08 * http://www.thenews.com.pk/Todays-News-11-100967-PIA-problems * PIA ANNUAL REPORTS(2004,2005,2006,and 2007) * PHILIP KOTLER and KEVIN KELLER, ”Marketing Management”12thedition…...

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