About The Company Pakistan International Airlines Management Essay

Performance direction and its connexion with motive of employees is ne’er been more of import as it is now, as progressively more and more organisations are fighting to acquire coveted public presentation from their employees together with maintaining them motivated and interested in their occupation.

Armstrong and Baron ‘s ( 1998 ) positions on public presentation direction were, “ public presentation direction can supply chance for persons to gain their dreams and aspirations, to supply occupation satisfaction, to enable persons to accomplish their optimal potency, and better squad work and public presentation ” .

About the Company Pakistan International Airlines:

Pakistan international air hose is a national flag bearer of Pakistan ( hypertext transfer protocol: //www.piac.com.pk/PIA_About/pia-about.asp ) and is enduring from hapless public presentation in footings of profitableness and services to its clients and hence losing its market portion. There are many grounds behind this hapless public presentation, but most significantly deficiency of equal attending on direction of employee ‘s public presentation through actuating them, whether in fiscal footings or otherwise, is ( in my positions ) really of import cause of this ruin.

Pakistan International Airline ( PIA ) will be used as instance survey for the intent of this thesis. Harmonizing to Manning and Curtis ( 2006 ) , the success of figure of air hose companies such as southwest air hose together with many other air hoses was/is due to high employee ‘s motive degree through holding public presentation related wage and other effectual and efficient step of public presentation and employee motive.

1.4 Comparison with Southwest Airline:

Now if we analyse Southwest air hose farther by analyzing how it managed to make on the tallness of success on which it is now, together with measuring the function of effectual and efficient public presentation direction system in Southwest air hose which consequences in non merely high occupation satisfactions among its employees but besides was cardinal to its overall public presentation.

Southwest air hose was incorporated in the twelvemonth of 1967 while Pakistan international air hose came into being in the twelvemonth of 1946. Southwest air hose is the universe ‘s largest bearer with more than four decennaries in operation ( 1967 to 1971 as Southwest and so 1971 boulder clay now as Southwest air hose ) with a mission of “ uninterrupted dedication to highest quality of client serviced delivered with a sense of heat, friendliness, single pride and company spirit ” is on its manner to be given tendencies for its rivals to follow in efficiency, profitableness but with affordability in air hose industry where invention is non really common.

1.5 Key Fact about Southwest Airline:

Southwest air hose with its highest figure of rider and staff of about over 34,000 people ( in 2008 ) is the name of highest affiance and least client ailments due to first-class services within clip with least jobs in luggage handling

Beginning: hypertext transfer protocol: //www.bts.gov/press_releases/2006/bts013_06/html/bts013_06.html # table_03

Southwest air hose has take a way wholly different from other air hose runing in that clip when it incorporated itself as southwest air hose in the twelvemonth 1971.Southwest has left its rival far behind in about all countries of operation from offering lowest menu it give tough clip to bus and auto travel companies which is so followed other air hose companies like easy jet etc to decrease in cost by non supplying repast on short travel which was non valued by most riders and supplying alternatively peanuts. Southwest air hose friendly and concerted staff was encourage to entertain riders by uniting gags in safety direction to do them pleasant and with non apportioning place prior to arrival which left client with pick to take set they want and cut valuable staff clip and attempts. It was first air hose to present online booking system with ticket less travel and become leader in air hose industry with repute of safest and friendliest air hose in skies.

Reason behind success of Southwest Airline:

Although many air hose companies ( so their senior direction ) accept the importance of employee ‘s part for the success of any organisation but still they use old tactics of cut downing employees pay to cut cost and encouragement net income, which is against to the really basic rule of economic and concern of associating the public presentation with inducements to actuate. ( Pilarski ‘s, 2007 ) .

But Southwest understand its employee ‘s importance and hence provided them stable working environment where merriment loving attitude is encouraged and where chances for larning and growing given are equal. Southwest air hose has assorted ways to acknowledge its employees with public presentation based inducements and larning chances and environment where difficult work and caring spirit within employees recognized and employees are considered as greatest strength.

Harmonizing to Dr Gittel ( ) Southwest air hose, despite of running in the air hose industry which lost one million millions of dollar systematically southwest air hose has maintain profitableness with 10 % to 15 % from 31 old ages with highest market portion than combine portion of all US air hose by making competitory advantage through motive, squad work and coordination among employees.

Airline Industry after 9/11:

They key to uninterrupted success of southwest air hose, since past four decennary and in conditions when after 9/11 air hose companies were imploring for money and protection from bankruptcy with fire of 1000 of employees, southwest air hose maintain all its employees from working and they have done so by holding accent on high public presentation relationship which is cardinal ground of its 34 old ages of back-to-back profitableness by holding accent on shared end, shared cognition and common regard.

One illustration of accomplishing success through effectual and efficient public presentation direction system is when 9/11 cause ineluctable harm with its profound consequence on air hose industry exceptional as reference earlier sou’-west air hoses portion monetary value besides autumn and everyone was worried about future.

Southwest scheme after 9/11:

At this point harmonizing to Laura Wright the frailty president and main fiscal officer of Southwest air hose and southwest decide to get by with this critical status by measuring its concern to place those step which matters most, those which drive the value of stockholders and set them under four sum prosodies with a name of ( SWA ) Magic figure and so make a company broad plan rubric named as cognizing you score and what they did is they posted the existent step with marks on scoreboard s and guarantee its effectivity by associating it with employees incentive fillip programs.

To do it fun southwest air hose characterize them with athleticss subject and reenforce them through newssheet and orienting cardinal public presentation index to each section and hence every employee can see how they can lend to southwest air hose charming Numberss and can measure from looking at scoreboard and specifically tailor departmental KPI report their attempt on what is most of import. Southwest air hose turn out it that it ‘s non necessary to hold public presentation direction system which would be implemented like Darth Vader attack.

Balance scorecard is non progressively in usage with in many organisation but there is small understanding on its standard format and hence most experient and erudite people are reasoning to include effects together with answerability which means that to some extend on KPI ( Key public presentation index ) appraisal of employees public presentation must be linked with fiscal and others wagess and it comes out that many organisation are in fact associating fillips with public presentation as this method of public presentation direction ( associating wagess with public presentation ) non merely are non allowing them to travel in right way but besides increase the velocity of making high value.

Coming Back to Pakistan international air hose:

Pakistan international air hose has, in the past paid small consideration to motive or public presentation direction to honor to those who work hard while accounted those which are non doing attempts and which is one of the of import for its ruin as it was one time first air hose to present jet plane in Asia and it is 36th biggest air hose Asia now.

Recent stairss taken by PIA:

Pakistan international air hose is mostly ain by authorities by Pakistan i.e. up y 87 % while staying 13 % are owned other stockholder and therefore we can the engagement of authorities bureaucratism in its operations with deficiency of decentalisation and engagement has doing the affair even worse.

Government of Pakistan has decide to administer 12 % of its equity interest Worthing more the Rs 2 billion among its 16,000 employees on as free of cost under portion option strategy. ( The intelligence, newspaper, Tuesday 19th Jan 2010 ) It can be said it is good tendency and will surely ensue in motive of employee but if it would hold linked with public presentation with more executing employees having higher portion and under executing having no or lower portion in the combine worth of wages ( in this instance are portion of PIA ) would hold consequence in better public presentation and sense of competition among employees.

But still Pakistan international air hose is far from being on right way and it must follow and larn cardinal tactics from southwest air hose and amend its schemes consequently to affect employees in scheme scene and to associate public presentation with inducements and overcome political relations within organisations.

1.10 Purposes of this research:

The purpose of this thesis to measure the impact of how holding an effectual and efficient public presentation direction system can lend in betterment of an employee ‘s public presentation at occupation and increase its motive and occupation satisfactions degree and hence finally leads to success of an organisation. we will research the impact of presenting effectual public presentation direction system can better the public presentation of Pakistan International Airline by comparing it with Southwest Airline by placing similarities between two organisation and the manner southwest air hose successfully implemented and utilize an effectual public presentation direction system as a motivational tool for its employees and consequence in accomplishing its strategic aims.

1.11 Aims of this research

Assess the ruin of Pakistan international air hose

Analyse the impact of employees motive in overall public presentation of PIA

Understand the ways in which employees are motivated

Understand the key schemes employed by sou’-west which consequence in its success.