Professional Documents
Culture Documents
Date: 10/27/2014
Submitted To:
Dr. Mousumi Sengupta
13037 Neethu D
13049 Shreyanka Rai
13068 Anala P.M
13083 Geetika Sood
Table of Contents
Company Profile: .................................................................................................................................... 2
Vision: ................................................................................................................................................. 2
Products and Services: ....................................................................................................................... 2
Management Structure ...................................................................................................................... 3
Presence in India and future growth ..................................................................................................... 4
Competitors ............................................................................................................................................ 4
Headquarters-Subsidiary Relationship .................................................................................................. 5
Headquarters:..................................................................................................................................... 5
SUBSIDIARIES...................................................................................................................................... 5
Globalization Strategy ............................................................................................................................ 6
Partners and Alliances........................................................................................................................ 6
Oneworld Airline Alliance .................................................................................................................. 7
Code Sharing ....................................................................................................................................... 7
Franchises ........................................................................................................................................... 7
Subsidiaries......................................................................................................................................... 7
Joint Businesses .................................................................................................................................. 8
Human Resource Management at British Airways: .............................................................................. 8
Human Resource Planning ................................................................................................................. 8
Employee Development Program ...................................................................................................... 9
Payment Package and Rewards: ........................................................................................................ 9
How BAs HRM activities can be linked to HRM Model .................................................................. 12
Harvard models ............................................................................................................................ 12
Michigan model ............................................................................................................................ 13
Human Resources Performances ..................................................................................................... 14
Ways to Improve HR performances................................................................................................. 14
Human Resource planning ............................................................................................................... 15
Human Resource Development ....................................................................................................... 15
The Learning Organisation: .............................................................................................................. 17
Conclusion ............................................................................................................................................ 18
Bibliography.......................................................................................................................................... 18
Company Profile:
British Airways (BA) is the flag carrier airline of the United Kingdom and its largest airline
based on fleet size, international flights and international destinations. When measured by
passengers carried it is second-largest, behind Easy Jet.
A British Airways Board was established by the United Kingdom government in 1972 to
manage the two nationalized airline corporations, British Overseas Airways Corporation and
British European Airways, and two smaller, regional airlines, Cambrian Airways, from
Cardiff, and Northeast Airlines, from Newcastle upon Tyne. British Airways was privatized
in February 1987 as part of a wider privatization plan by the government.
British Airways is the largest airline based in the United Kingdom in terms of fleet size,
international flights, and international destinations and was, until 2008, the largest airline by
passenger numbers as well. The airline carried 34.6 million passengers in 2008, but rival
carrier Easy Jet transported 44.5 million passengers that year, passing British Airways for the
first time.
British Airways serves over 160 destinations, including six domestic. It is one of the few
airlines to fly to all six permanently inhabited continents, along with, Delta Air
Lines, Emirates, Etihad Airways, Korean Air, Qantas, Qatar Airways, Singapore
Airlines, South African Airways and United Airlines.
Vision:
The company vision is become most responsible airline in the world and all their corporate
responsibility they have to bought tougher under the banner One Destination it is a great
challenging goals for the company for further reduce carbon emission, recycling and reduce
waste underrating air and noise pollution.
British Airways operates one of the largest and the most modern fleets of any airline in the
world. Their fleets include:
Management Structure
BA are re-inventing the way they work. They are creating leaner organisation with
distinctive, high- performance culture. Current market conditions have made it imperative to
move fast to create a leaner, more agile structure starting at the very top of their business.
This restructuring has made them more efficient. It has also helped in identifying and
drawing on new talent in business, encouraging more people to move between functions to
gain wider experience and find new outlets for their skills. To support greater mobility, they
have clarified individual and collective roles and responsibilities and now publish
accountabilities for all of their top managers on their intranet.
Competitors
British Airways and Virgin Airlines have fought toe-to toe over routes, ticket prices and a
piece of the sky for over two decades. Now British Airways and Virgin Atlantic Airways are
ready to slug it out in India with the two long-haul airlines looking to expand their offerings
and increase their share of Indian travellers flying to Europe and North America. It is
important for European Airlines to maintain their market share as they are facing tough
competition from the Gulf Airlines like Etihad Airways and Emirates Airlines.
Dubai-based Emirates operates 185 flights a week to 10 Indian destinations. BA, which has
been operating in India for 84 years, connects five cities with 48 weekly flights. Virgin has
only one daily flight each from Delhi and Mumbai. Emirates is the largest foreign airline in
India and carried 13.04 per cent of passengers who flew out of the country in 2011/12,
government data show. BA had a share of barely three per cent. The data for Virgin was not
disclosed.
Etihad, based in Abu Dhabi, is also expanding its India presence. It has agreed to pick up a 24
per cent stake in Jet Airways, India's second largest carrier by market share.
Data provided by Make My Trip shows that British Airways garnered a 16 per cent share in
the number of passengers flying from India to the US and Canada during the first half of
2013 whereas, Virgin had a four per cent share.
Headquarters-Subsidiary Relationship
Headquarters:
The airlines' head office, Waterside, stands in Harmondsworth, a village near London
Heathrow Airport.Waterside was completed in June 1998 to replace British Airways'
previous head office, Speedbird House, which was located on the grounds of Heathrow
British Airways' main base is at London Heathrow Airport, but it also has a major presence at
Gatwick Airport. It also has a base at London City Airport (LCY), where its subsidiary BA
CityFlyer is the largest operator. BA had previously operated a significant hub at Manchester
Airport. Manchester operations ceased, along with all international services outside of
London, when the subsidiary BA Connect was sold due to a lack of profitability. Passengers
wishing to travel internationally with BA either to or from regional UK destinations must
now transfer in London.Heathrow Airport is dominated by British Airways, which owns 40%
of the slots available at the airport.The majority of BA services operate from Terminal 5, with
the exception of some short-haul and mid-haul flights at Terminal 1 arising from the purchase
of BMI and some short-haul flights at Terminal 3, owing to a lack of capacity at Terminal 5.
With the imminent opening of the brand-new Terminal 2 in 2014, Star Alliance airlines will
progressively be moving all their services into the new terminal and Terminal 1 will be
closed for demolition in due course. British Airways' services will then be concentrated in
Terminals 3 and 5.
In August 2014 Willie Walsh advised the airline would continue to use flight paths over Iraq
despite the hostilities there. A few days earlier Qantas announced it would avoid Iraqi
airspace, while other airlines did likewise. The issue arose following the downing of
Malaysia Airlines Flight 17 over Ukraine, and a temporary suspension of flights to and from
Ben Gurion Airport during the 2014 IsraelGaza conflict.
SUBSIDIARIES
BA CityFlyer, a wholly owned subsidiary, offers flights from its base at London City Airport
to 23 destinations throughout Europe. It flies 14 Embraer 170/190 aircraft and one leased
Saab 2000. The airline focuses on serving the financial market, though it has recently
expanded into the leisure market, offering routes to Ibiza, Palma and Venice.
The onboard product is identical to that of the BA Short Haul product from both LHR and
LGW.
The former BEA Helicopters was renamed British Airways Helicopters in 1974 and operated
passenger and offshore oil support services until it was sold in 1986. Other former
subsidiaries include the German airline Deutsche BA from 1997 until 2003 and the French
airline Air Libert from 1997 to 2001. British Airways also owned Airways Aero
Association, the operator of the British Airways flying club based at Wycombe Air Park in
High Wycombe, until it was sold to Surinder Arora in 2007.
South Africa's Comair and Denmark's Sun Air of Scandinavia have been franchisees of
British Airways since 1996. British Airways obtained a 15% stake in UK regional airline
Flybe from the sale of BA Connect in March 2007. BA also owned a 10% stake in
InterCapital and Regional Rail (ICRR), the company that managed the operations of Eurostar
(UK) Ltd from 1998 to 2010,when the management of Eurostar was restructured.
With the creation of an Open Skies agreement between Europe and the United States in
March 2008, British Airways started a new subsidiary airline called OpenSkies (previously
known as "Project Lauren").The airline started operations in June 2008, and now flies direct
from Paris to New York's JFK and Newark airports.
British Airways Limited was established in 2012 to take over the operation of the premium
service between London City Airport and New York-JFK. BA began the service in
September 2009, using two Airbus A318s fitted with 32 lie-flat beds in an all business class
cabin.Flights operate under the numbers previously reserved for Concorde: BA001
BA004.
British Airways provides cargo services under the British Airways World Cargo brand. The
division has been part of IAG Cargo since 2012, and is the world's twelfth-largest cargo
airline based on total freight tonne-kilometres flown. BA World Cargo operates using the
main BA fleet, together with three Boeing 747-8 freighter aircraft providing dedicated longhaul services operating under a wet lease arrangement from Global Supply Systems.The
division operates an automated cargo centre at London Heathrow Airport and handles freight
at Gatwick and Stansted airports.
Globalization Strategy
By 1981, British Airways was instructed by the Thatcher Government to prepare for
privatization. Sir John King, the then appointed chairman, decided that British Airways
needed to establish a strong presence in Europe, North America and Asia/Pacific if it was to
be a global carrier. It strove to achieve this with a series of acquisitions, alliances and
franchise arrangements.
Code Sharing
There are also bilateral alliances between airlines whereby codes are shared and tickets are
interchangeably sold. Codeshares are a type of shared flight one airline operates the flight,
while other airlines may sell seats on the flight under their own airline codes. British airways
have codesharing services with its oneworld partners as well as Aer Lingus, airBaltic,
Bangkok Airways, Flybe, Loganair, Meridiana fly, Vueling Airlines and WestJet.
Franchises
British Airways franchise partners are independent airlines that use British Airways
branding and flight codes. BAs franchise partners are:
Comair Pty Ltd Comair is British Airways' Southern Africa franchisee, operating
more than 50 daily flights from Johannesburg, Cape Town, Durban and Port Elizabeth
within South Africa to destinations in Mauritius, Namibia, Zambia and Zimbabwe.
SUN-AIR of Scandinavia SUN-AIR is a privately owned Danish airline that
delivers its services as a British Airways franchisee. It operates some 30 daily flights
from Denmark to Belgium, Finland, France, Germany, Norway, Sweden and the U.K
Subsidiaries
British Airways operate in a few foreign countries through its subsidiaries. The subsidiaries is
as shown below:
Joint Businesses
British Airways currently operates two joint businesses which enable the airline to give more
choice to its customers.
Siberian Joint business: In October 2012 British Airways entered into a Siberian joint
business with Japan Airlines (JAL) on routes between Europe and Japan. In April
2014, Finnair entered into the joint business agreement between Japan Airlines and
British Airways on flights between Japan and Europe.
Transatlantic Joint business: British Airways launched its transatlantic joint business
with Iberia and American Airlines on October 1, 2010. The agreement allows British
Airways and Iberia to work more closely with American Airlines on flights between
North America and Europe. It is a revenue sharing agreement under which member
airlines have permission to co-ordinate schedules and pricing on North Atlantic
routes. The Atlantic joint business now includes all scheduled flights operated
American and US Airways, British Airways, Iberia and Finnair between North
America and Europe (British Airways, 2014)
launched in order to create an exceptional and unique customer service. This unique service
is not easily copied. BA has decided to recruit enough employees to enhance their customer
service. BA wants to fulfill every aspect of customer service and wants to be number one
customer service industry in the world.
The HR department of BA had started to launch a range of innovative and interesting ideas to
achieve the companys goal. The HR management had split up the companys corporate
objective to a set of key objectives to achieve that goal and the HRM had started their
activities to achieve this each objective.
The three main objectives and how these objectives were achieved by the effective
management of HR are as follows:
1. Training and Development
A strategy of innovation implies change that will have to be managed, and requirements for
new skills as new products, services or processes are developed. All of these call for skills
training. Training in new skills and multi- skilling can also contribute to the scene of security.
Employees develop a higher level of employability through the acquisition of a wider range
of skills, and so feel more secure about their future employment prospects. BAs HRM
department has undertaken a range of training programme for the improvement of employees
by which they can show their potentiality on customer service.
Objective
The training programmes that have been set by the HRM department at BA:
Extensive research were conducted in order to identify the most appropriate form of
helpfulness
A two day training programme Putting People First was aimed at almost 20,000
staff who had significant customer contact.
Providing individual learning through a programme which was based upon principles
of open learning leads to MBA awarded by University of Bath.
The Top Flight programme was conducted to provide a series of Academies to the
learner lead to an executive position.
To achieve the first objective, BA had conducted extensive research which had performed
effectively by the HRM department. It was clear that customer-satisfaction occurred by
positive staff contact (friendly and caring manner) whereas negative staff contacts
(unfriendly, rude and uncaring manner) led to customer dissatisfaction. After that, the HRM
had focused on a two day training programme Putting People first especially for the staff
who were exposed to customer contact. The programme helped those staffs to change their
attitudes and behaviour to the customers.
2. Assessing performance of employees
One of the most crucial activities of HRM is to assess the performance of the selected
employees so that the company can assume its organisational progress. The HRM within any
organisation need to assess and monitor the employees performance whether they have been
in an alignment to achieve the companys goal or not.
Objective
BAs HRM has taken a scheme to assess the performance of the employees,
It is very crucial point to note down that a dramatic change was observed after achieving the
second objective stated above. The HRM of BA had commenced a one week programme
Managing People First to break down the organisational bureaucracy such as rule bound,
strict behavioural boundaries etc. The regimented approached managers had become more
effective carer for customers through this training. Finally a significant cultural change had
been achieved at all levels of organisation which is supposed to be the great achievement of
HRM of British Airways.
3. Payment and reward of employees
Reward is frequently used nowadays to refer to payment systems, especially since many
payment systems try to motivate people to work harder and then reward them for their extra
effort. The word reward is useful in this sense, and could apply to either monetary or nonmonetary award, but it also implies that something special is being rewarded. Payment is the
most straightforward of the four terms: compensation, reward, remuneration and payment. It
can include monetary or non-monetary payment.
The HRM department is responsible to establish appropriate payment employees and reward
systems for all employees in order to contribute to the organisations strategic plan.
Objective
To develop the pay structures and system which are equitable, fair and transparent.
British Airways has undertaken some reward scheme that will eventually align with
company goal,
In order to satisfy the third objective, the HRM had encouraged individual learning through
accessing two major learning programme-Principle of open learning and Top Flight. By
completion of these two major programmes, most of the employees had become more skilled
to tackle or to respond to any unexpected business circumstances.
To achieve the third objective, the company has reviewed and restructured the reward system.
The HRM of BA believes that the organisation should examine its pay levels and the
attractiveness of its benefits packages and terms and conditions compared with those of
competitors; action plans should also address the issue of linking rewards properly to the
achievement of corporate goal. Likewise, BA has introduced some novel scheme, for
instance, performance related bonus, offering free and discounted shares and also offering the
tax free shares.
To improve the relationship between the reward and performance, BA has introduced a
scheme Performance appraisal scheme by which the HRM department will be able to
measure and evaluate the employees performance. On successful commencing of this
scheme, the companys reward system in terms of employee performance, has been
improved.
The evaluation of this scheme can be summarised as follows:
Therefore, integrating all the achievements of these objectives, the effective HRM of BA,
ultimately had lead the company to achieve its corporate objective over the period.
The Human Resource Flow must ensure that the right people are in the right place at
the right time.
Reward Systems are concerned with how employees are rewarded for their work.
Work System refers to the organisation of work to ensure that it is efficient and
productive, and can meet the organisations goals. Work systems need to ensure that
the communication channels work and the correct technology is in place at the various
levels of the organisation.
Now the activities performed by the HRM of BA to achieve its corporate objective can easily
be linked to Harvard model, where we can see that the BAs work system were efficient and
productive through extensive.
Mission is the fundamental purpose of an organisation that defines the nature of its
business and provides strategic direction unifying human and other resources.
Organisation structure refers to the requirements and tasks needed to achieve the
organisations goals. These include accounting system and communication network.
HR management system establish the need for people to be recruited and developed,
which in turn will enable them to achieve the organisational goals and maintain
performance
According to the model, the mission, strategy, organisational structure and human resource
management cannot operate in isolation. They also need to respond to the external forces of
politics, economics and culture. An case study on BA has shown that a new department
Department of Human Resource strategy and Planning has been established to research
changes in social, legal, economic and political systems both within the UK and abroad. So
the final part of the model referring to BAs HRM will look like as follows:
Economic forces
Cultural forces
Political forces
Recruitment Strategy
The recruitment strategy may be changed to recruit more talented people. The recruitment
team can go college and university and recruit more talented students.
Technology Program
British can provide more technological program such as, computer technology
program, personal development program, customer dealing program, etc.
Strategic plan
Tactical plan
Operational plan
Forcasting
Strategic plans: General plans outlining priorities and actions needed to improve the
strategic goals of an organisation. For an instance the BA had set up a strategic plan which is
assumed to achieve the long term customer loyalty through customer satisfaction providing
excellent customer service.
Tactical plans: Tactical plans aimed at achieving tactical goals and implementing parts of
strategic plan. BA had planned a set of training programmes to train up their staffs.
Operational plans: Plans that focus on implementing the tactical plans in day to day
procedures in the organisation. Each and every training programme at BA was dealt step by
step successfully.
Forecasting: The HRM at BA anticipated the training requirements for future corporate
needs. It also forecast about a number of business developments considering some crucial
factors such as Brand management, International competition, Joint ventures issues and so
on.
Though BA had implemented all of its plans successfully, the contingency plan, ratio analysis
and trend analysis- nothing of these were taken into consideration during the HR planning
which indicates BAs HR planning limitation.
Training programme
Evaluation
Comments
Evaluation of staffs own existing value towards their passenger and a degree of
helpfulness attitude was achieved among the staffs who had significant customer
contact during the training.
The objective of this training had achieved which has been aligned to the companys
corporate strategy.
The old rule bound system of management designed by the managers has been
broken down.
A significant cultural change has achieved which is aligned with the companys
corporate objective.
Considering the beliefs of BAs HRM department and evaluation table of the training
programmes, it is assumed that a significant cultural change has been achieved at all levels of
organisation on completion of these training programmes. This cultural change has made a
significant contribution to the steady improvement in business performance. So, this
development method designed by the HR department of the company has shown an
effectiveness to meet the companys corporate objective.
Learning Programme
Evaluation
Comments
The employees have achieved an MBA degree by completing each stage of learning
programme and the individuals have become more complex and differentiated
through the interaction of internal and external factors.
The employees are now confident to tackle the unforeseen business circumstances and
to make the complex but define strategy for the organisation.
Top flight
The employees have achieved vast knowledge on business administration that has
helped them to become critical thinkers.
It is crystal clear that if any organisation has a strategic manager or a strategic executive, it is
easy to planning, implementing or organising any strategic objectives of that organisation.
British Airways has made some talents through individual employee development method
by which the organisation has not only achieved a new cultural image but also has
contributed to achieve the companys goal.
Likewise, BAs HRM department now has become concerned and taken the initiative to
minimise the barriers that may hamper learning and development. For instance, BA has
undertaken some training programme to breakdown the previous managers regimented
approach to the management. Moreover, the company has become committed to sustain when
the unforeseen business climate comes around and thats why they are going to make some
talents and suitable leader through the organisational learning where all the training and
development programmes regarding this, have been directly aligned to the companys
strategic goal.
The HRM department of BA has become more strategic to achieve the companys goal. For
this purposes, the HR department had conducted and monitored two major training
programmes, Putting People first and Managing People first by which a significant
cultural change was achieved at the all levels of organisation. The HR department also
emphasized different types of learning programmes designed for the employees for employee
development. Further programmes such as appraisal scheme, reward system were
successfully commenced and implemented by the effective HR department of the
company.The responsibility for the line managers had been increased by giving the greater
discretion to determine their own approach to the implementation of company policy. Thus,
all of the changes through organisation had been aligned with the companys corporate
objective
Conclusion
It is of course, a classical change has been achieved at all levels of organisation by the
effective management, control and implication of the activities that were set by the HR
department of the company. This cultural change through organisation has led the company
to achieve its corporate objective. The establishment of a new department titled Department
of Human Resource Strategy and Planning has made an attention to us that the British
Airways has become more strategic to its Human Resource Management. The continuous
development of management, human resource, manpower has made the company as a distinct
example in the world airline industries
Bibliography
British Airways. (2014). Partners and Alliances. Retrieved from British Airways:
http://www.britishairways.com/en-us/information/partners-and-alliances
Oneworld. (2014). Oneworld. Retrieved from http://www.oneworld.com/general/aboutoneworld
http://uk.reuters.com/business/quotes/companyProfile?symbol=BAY.L
http://www.bharatbook.com/detail.asp?id=89964&rt=British-Airways-Plc-Financial-andStrategic-Analysis-Review.html
http://www.britishairways.com/travel/home/public/en_gb
https://www.scribd.com/doc/56831757/British-Airways