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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