Analysis of organization British airways

Analysis of make-up British air government agencysThe details more than or less the transcription overview and organization process of the British airways. offset it look at the community profile and history of the organization including organization chart to give overview of the organization it focus on the organization process standardized (1) convinces inside the organization (2) organisational culture (3) Recruitment, Training, Job placement and promotion insurance. How these process ar related and affected to from each one other. Finally, it will give recommendations for the organizations to carry with organizational process in future.Company profileBritish Airways is the UKs largest international scheduled airways, which provides international domestic service for cargo and cargo. British airways which argon most compromise 150 destinations in 75 countries. It includes Asia, Africa, North and Eastern Europe (plus the Eastern Mediterrean), Western Europe, North Ameri ca, Central and Latin America (plus Sweden). The head sop up of the British airways is located in London. Gatwick airport and London Heathrow airport is the main hubs for British airways. British airways had more than 280 aircrafts, which is mainly for boeing jets and Airbus and it has more than 40,000 employees to work for a company (Hoovers 2006).Organizational chartThe structure of the organization is fat type because it has one take of hierarchy that separates the dealors at top from bottom line employees. (Buchanan D. Huczynski A., 2004). Mr. Willaiam and M. Walsh is the head of the company, short he ar working as a chief exe archive. The British airways organization de areaments are includes mean, Engineering, Flight operation, Investment and Alliances, IT, Law, Finance, HR, Ground operations.History of British airwaysBritish airways and imperial airline are merged together at the beginning of Second World War. The two airlines formed new subsidy companies. This is Brit ish oversea Airways Corporation (BOAC) to operate short haul service in Europe (Papadogiannis, 2006). In 1980 British airways ran in the monetary problems and Sir John King (CEO) was appointed to dole out privatization and it was succeeded in 1987. (Datamonitor 2005).Objectives of British airwaysLike all the business one of their first main objectives was to maximizing profits. However after September 11th they had to trade their aspiration to having an increasingly in security and they needed to keep their customers safe.Objectives to increase profit by the end of the tax year 2009A British airway is planning to increase profit by the end of the tax year 2009 than the last year profit. The last year profit was 694 million. Annual reports of 2006/2007 shows that they had 148.3 million customers are inside the UK. They need to monitor regularly the customers amount that they fly with them. Perhaps giving such(prenominal) as offerings on certain flights to increase their promotion s.Changes within the organizationsThe operators of the organizational mixture can be categorized into two factors. (1) External trigger and (2) Internal trigger. The first factor External trigger is innovations of competitors, requirements, and changes in customers, government policies and legislations. The second factor is Internal trigger it includes appointment of a new senior manager, new product and service design innovations, new ideas about how to deliver services to customers. (Buchanan D. Huczynski A., 2004). By the outdoor(a) and interior trigger have impacts on British airways, the company is responded by initiating privatization course of study to change ownership from government to private sector. According to Lewins change, changes within the organizations will occur in 3 stages. The first stage is unfreezing. The second stage is Movement to develop new behavior. And the third stage is Refreezing which is stabilizing change at the new level (Mullins, J., L., 1999 )Human Resource Management policies in world airline industryFor the past 15 years there has been undergoing the search on the human resource policies and competencies differentiating the business functioning. Companies are looking for the ways to gain a competitive advantages and the implication of human resource policy choices for companies performance is certainly to the key factor recently researches of the business strategy turned their attention into international attributes of the top companies looking at the industry is likely to train and the way how that the evolution can be exploited to earn a profit. The greater and the extent to which of these assumptions and hypothesis are reflects accurately. The international airline and hypothesis is soon following with the similar trends.HRM policies in British airwaysHuman resource focal point policies are followed by the British airways in 1980s before and after privatization by the British government. When the British airwa ys are in public ownership it had been unprofitable in the financial year of 1981/82 and it suffered in a severe financial loss.Following the merchandise research showing that the airlines passengers were dissatisfied with its service. In 1982 British airways launched on extensive campaign called putting people first for all of 12000 staffs who had direct contact with customers. Up to 150 staffs at a time from baggage handlers to engineers and pilots took a part in servicing customers and later the campaign were extended so that eventually all of British airways staffs attended one of the events. Customers first teams were set up to look at the ways to improving customer service. Memberships of the team cuts crossways to the organizational boundaries with staff from different sections are working together for the ten years later 75 of the teams were still actively working.On 1990s British airways had come to focus on key performance indicators as a principle tool for managing staf f. These were six such indicators for its managers leaderships, communication business competence, managing performance, valuing others and customer focus. These are the basis of decisions about the manager selection pay and performance management.Further market research shows that the customers satisfaction with the quality of British airways service has increased. Since British airways locomote to spectacular profit from financial loss over the period when these initiatives took place (in 1995 February recorded profits reported of 443 million with total passenger of 23.7 million, and it had 65600 staffs are early(a) 2000). The human resource initiation of its financial success has been partly attributed. However it should be noted that some of the problems are lingered. In common with all the airlines are operating to the transatlantic routes of the attack on the world trade center in September 2001. Despite in Human resource management initiatives of a staff survey in 1992 show s that the staff rates British airways poorly as the employer for sustaining a work environment that attracts develops committed employees and retains. British airways also bewildered a damaging strike following an attempt to impose a new pay deal on its staff without negotiation in the middle of 1997.British airways Raises Retirement AgeOn 24th march 2006, British airways change its New Aircrafts Pension Scheme (NAPS). For the recent joiners, including chief executive Willie Walsh who join in 2005 May, British airways Retirement Plan (BARP) has been available. The New Airways Pension Scheme (NAPS) has 33,794 active members, 15,185 pensions and 20,269 deferred. There is no increase in staff contribution determine for the final salary pension scheme in British airways earned. But, there will be the changes under the new proposals to members benefits relating to future service.Key changes to future services areFor cabin crew members normal retirement age raised from 55 to 60 years initially.For pilots normal retirement age raises from 55 to 60-65 years. such(prenominal) countries like USA and France remove the restriction on older pilots overflying them.Pensionable pay increases not more than the inflation.On retirement capped pension increases any year at 2.5 percent.Chief executive Mr. Willie Walsh said, this is the solution that will provide for the future affordable pensions.The airline will make a payment of cholecalciferol million into fund after the changes accepted. The company will have paid towards the past deficit by December 2006 on top of the 350 million.Mr. Walsh added The future benefits are changes to members will reduce the anticipated deficit by the 480 million. And also they may able to make contributions for future service can afford.British airways cut management jobsOn 30th November 2005- British airways announced plans to re-structure the business on March 2008 by cut 35% (357).This includesReduction of 50% from 414 jobs to 207 o n senior managers.And step-down of 30% from 1,301 to 911 on middle level management jobs.British airways chief executive Willie Walsh said that when we reported our second quarter financial results last calendar calendar month that our costs were needed to re-energies our efforts to deliver a competitive cost base.The management job reductions are intended to reduce British airways costs by 50 million as part of its 300 million to cost reduction design on 2007 march.The number of senior manager reduction will be phased23% (94) of top executives left the business on 31st March 2006.After the next two years more jobs go with the 50% localize to achieve on 2008 March.On March 2006 30% reduction in middle manager should be developed and communicated.British airways are going to cut jobs for cabin crew and introduce two year freeze pay. British airways were lost 401 million last year and they announce earlier last month that they would need to cut 2,000 full time jobs. During the r ecession the British airways instead press ahead with plans to recruit news staffs on different terms and conditions to the accredited employees in an attempt to save costs.On 25th June 2009, British airways announced almost 7,000 British airways staffs has volunteered to take unpaid leave, voluntary pay or part time working cuts as part of companys plans to cut costs. British airways chief executive Willie Walsh said, It is a fantastic first response. I want to thank everyone who has volunteered to servicing us to pull through this difficult period. Walsh himself has hold to not to take salary during the July month.The latest news of the British airways is British airways staffs are unwillingly agreed to work in new schedules with reduced staffed pending. British airways are presently battle with the unions over changes to jabs and pay. They want to cut cabin crew staffs on long-haul flights from 15 to 14, this changes imposed from 16th of November.Privatization in British airwa ysA British airway has a change within its organization which is privatization project in 1980s. The company face the financial problem at that time. The long term debt which is more than 1 billion, and the British government not willing to give public money to sweep out companys debt because of the criticism fear. Then for these reasons British airways decided to make changes within the organization. (Shibata, K., 1993). This privatization made the British airways to change many things in the organization such as mission statement, collective culture, and organizational structure and so on.Retirement, Training, Job placement, Promotion policyBritish airways were considered to be bureaucratic, awkward, inefficient and large in the past. According to privatization, it changed corporate culture from militaristic and bureaucratic to market-driven and service oriented which it made the company to effective in the airline industry. (Poole, R., 1988). These changes which are also invo lve in HR policy as following.Recruitment, job placement policyRecruitment and job placement policy are involved in Refreezing stage to Lewins model. According to the stage, British airways have to stabilize the changes and make the behavioral pattern in the organization. British airways needed improve and redesign the enlisting policy and the process in hostelry to increase the new employees who is able to share organizational new value system and management style. (Goodstein., D., L., Burke, W., W., 1991). To achieving these objectives, British airways changed the job placement policy and recruitment which is back up by the diversity concept and equity to identify the right candidates to fit in a new system.Employee recruitment scheme and processIn recruitment and job placement policy, British airways developed recruitment methodology it is looking at the competencies including skills, knowledge and behavior using these competency based interviews made British airways to ensure those candidates will be in success in their jobs and they will fit in to the new organizational system. Selecting right people to work in business field, British airways needs to focus on strong leadership qualities, high motivation, team working skills, passion for customer service and so on (British airways 2006). There for, British airways developed assessment methods in job placement and recruitment process for senior level positions and new entry-level such as the interviews, presentations, character reference play, group exercises, fact finding psychometric tests (British airways 2006).Training and promotion policyPrivatization transformed British airways to more service airline industry that emphasize on servicing customer. According to unfreezing stage, British airways had stop to introduce new behavior and present pattern and culture of employees. So British airways launched new training program is putting people first for the bottom line employees. And for management-l evel-employees British airways has introduced a training program Managing people first (Goodstein., D., L., Burke., W., W., 1991).Putting people first programAccording to corporate goal British airways wanted to be The worlds favorite airline in airline industries. At the time of privatization British airways changed them self to be marker-led company rather than a process-driven company as it had in the past. Putting people first training program is aim to create employees awareness of competition, market place, and to educate employee to know the awareness of team work. As a result of this training program make the organization to reach goal in exhibition to be best and most successful company in the airline industry (Street, M., 1994).Managing people first programIn the second stage of changes in British airways, they needed to bring vision of top management into his employee. For the management level of employees they were implemented during this stage was the special training program Managing people first. The faculty of the special training program includes support team, training, active senior management participation, multi source feedback and linked performance appraisal system. After participating the management level training program made British airways to have a new leadership to focus on servicing customer and this key factors in ruin customer retention and it increase more revenue (Tosti, T., D. Jackson, F., S., 2006).Employee promotion policyBritish airways changed to private company successfully in 1987, because of one factor that alleviated changes in organization which is Employee promotion policy. British airways used promotion policy to top management levels to promote employee who was the role model of the new British airways values in higher level. This strategy was used to promote employees in top management levels to value in organization. (Goodstein., D., L. Burke, W., W., 1991).Organizational cultureOrganizational culture is t o consider each organization to how the things are doing around here because each and every organization has different values, belief and different culture. But we can easily explain about the organization culture is the collections of traditions, attitudes, policies, beliefs and values. (Mullins, 1999).Culture changes in British airwaysFor the organization culture is very important for setting creating tradition and organizations internal and external environments are change, an organization must adapt its present culture and in the order to survive the industry (Salama, A. Easterby-Smith, M., 1994).RecommendationsIt is not easy for any organization it is a general acceptance to make changes into structure and systems. Sometimes leads to have a resistance from its employees to make any changes in the organization. There are four reasons of resistance to organization change from employee including 1) Misunderstanding and lack of trust, 2) Low tolerance for change, 3) Contradictory assessments, 4) Parochial self-interest. (Buchanan D. Huczynski A., 2004). British airways try to change behavior both in organizational level and individuals, such as changing the management style from participative and authoritative. Sometimes new behavior or pattern makes employees to unfamiliar and awkward that it can make them to slip and extinguish back to the comfortable pattern instead. British airways needed to have more participation in the management decision but it difficult decision arises it may not be possible to get it difficult decision arises it may not be possible to get a consensus decision. (Goodstein., D., L. Burke, W., W., 1991).In the British airways history, British airways used tactics to manage resistance and conflicts mostly were HR policy such as training policy. The effective tool to educate employee is HR policy and convenience them to comply with new system. For example, to many new competitors emerged to overcome during 1990s with incumbents in th e airline industry such as Easyjet and Ryanair. The CEOs of British airways declared the organization may need the second revolution. British airways tied with American airlines by sourcing new alliance to reducing labor cost in both nubble staff and non-core staff by recruiting newly hired employees on lower pay to replace the existing staffs, and restructuring payment system. And some of the employees felt that is unsecured and raw on their jobs. (Wilkinson, A. Grugulis, I., 2002).Many of the organizations including British airways desire to make the changes in their organization when problem arise and they make changes successfully in the less conflict way and harmless. In the past, British airways used often HR tool such as recruitment, training policy and manpower planning to reduce assistance and facilitate changes in organization. Another way to changes in organization is change agent the change agent is a person who leads the project change by planning, researching and c onstruct business support. (Bhardwaj, M., 2003). Change agent is an external consultant that the organization hires her/him to take the responsibilities for a specific project. (Buchanan D, Huczynski A., 2004). But the internal consultants have narrow view and more bias. The external agent is another way to handle the project change effectively.ConclusionA British airway has a long history regarding the organizational changes in the worlds leading airline industry. British airways adapt itself such as value, belief, corporate culture and company mission to improve the organizations performance because of external and internal pressure. HR policy is the most popular tool to handle and facilitate changes and resistance in the organizational. A British airway is successful in privatization in 1987 but during that time there was a strike occurred, which gave an expensive lesson to British airways in 1990s. Finally, organization to facilitate changes is to use change agent which is bett er to external consultants better than the internal consultants.