A Critical Analysis of Pakistan International Airline's Human Resource Management Practices

Abstract

Many human resource (HR) practices are ineffective in many state-owned firms because they are not implemented as they should be. Pakistan International Airlines (PIA) is a semi-government organization. The dilemma lies in the fact that PIA's human resources management practices are responsible for its downfall. This research aims to examine PIA's human resources management practices, mainly recruitment and selection, compensation and benefts, and training and development. Primary data was collected through questionnaires from 96 employees of the head offce in Karachi (Pakistan). F-test was used to check the overall relationship of PIA performance (fnancial and non-fnancial) with recruitment and selection, compensation and benefts, and training and development practices at PIA. The fndings revealed that from PIA employees' perception, there is a positive relationship between PIA training and development practices with the performance of PIA (fnancial and non-fnancial). In contrast, there is a negative relationship between recruitment and selection and compensation and benefts practices of PIA with PIA's performance (fnancial and nonfnancial). Moreover, this study recommends that PIA decrease its recruitment and selection practices and compensation and benefts practices to increase its performance (fnancial and non-fnancial). PIA should focus more on its training and development practices of existing employees to enhance its performance (fnancial and non-fnancial aspects).