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6 J.L. Pol'y & Globalization 1 (2012)

handle is hein.journals/jawpglob6 and id is 1 raw text is: Journal of Law, Policy and Globalization www.iiste.org ISSN 2224-3240 (Paper) ISSN 2224-3259 (Online) I Vol 6,2012 ISE Factors Underlying the Failure of Organizations: A Focus on Pakistan International Airlines Nosheen Nawaz* Syeda Farzana Manzoor2 Ayesha Jahanian' Rabia Mumtaz3 1. MS scholar, Department of Management sciences, The Islamia university of Bahawalpur, Pakistan 2. Phd Scholar, Huazhong university of Science and Technology, Wuhan, China 3. MS scholar, Management Sciences, The Islamia University of Bahawalpur * E-mail of the corresponding author: nisha4741 @hotmaiLcom Abstract Pakistan International Airlines faces competition with not only international airlines but also with local airlines on the various routes to the Middle East and the Gulf. Due to fierce competition and rising oil prices, international aviation industry regulations and some internal factors such as human resource issues of over recruitment, de-motivated employees, mismanagement of resources both in case of manpower and other resources, aged fleet, corruption and lack of accountability PIA is facing a deep financial crisis. It is losing its market share both in international market and domestic circuit. The present research is done to know about the current situation of PIA and the factors underlying the poor performance of the organization. Nepotism, lack of management, poor service provisions are some of the factors identified through this piece of research which form the backbone of the declining performance of Pakistan International Airlines. Keywords: poor performance, factors, management, competition 1. Introduction Today's competitive environment demands that organizations achieve ever higher levels of performance. Critical to improving performance is to know what and how to measure. Measurement therefore is a key element in any performance improvement effort and particularly to the development of long and short term decision making. There are a number of organizations striving and doing excessive research to identify the various factors which contribute to the success or poor performance of not only their own organizations but also other organizations in the industry for the purpose of benchmarking in case of their success and avoiding similar mistakes by halting the influence of such failure factors in case of their poor performance. The present study is therefore designed in this context to identify the factors which may contribute to the poor performance of organizations. A case study of Pakistan International Airlines has been chosen to study the reasons of poor performance of the organization during the past few years. It is now suffering losses but it has the capacity to earn profit and contribute towards the GDP of country. Pakistan International Airlines is the national flag carrier and was established in 1955.It not only provides transportation services, but its operations extend to providing cargo services and courier services also. Pakistan International Airlines serves two markets - Domestic and International. In the domestic sector, it has outperformed itself by stretching its networks to areas where other airlines do not fly to. In the international market it faces severe competition, especially due to the fact that these International organizations are providing fares much lower than Pakistan International Airlines. Internationally also, Pakistan International Airlines is encountered with a severe and strong challenge with many renowned international names. The following research questions have been developed in this context. 1.1. Research Questions QI: Are there any identifiable factors which are contributing to the poor performance of the organization specifically PIA? Q2: what are the factors which form the reason of failure of any organization? 1.2. Research Objectives The objectives of the research are to:- t Identify the factors which result in poor performance of organizations. t Give a logical reasoning behind the failure of any organization.

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