British Airways: Strength and Weaknesses in Human Resources Management - Case Study Example

Introduction (Yahoo Finance, April 17, d, “British Airways is the leading airline in the United Kingdom, and naturally one of the biggest in the world. Based at Heathrow and Gatwick, London, it manages almost 300 planes and 216 destinations in 94 countries. In addition, British Airways has holdings in other airlines, such as the Australian, Quantas, and the Spanish Iberia. With its sights set on the international scene, a key to success today, British Airways recently signed a partnership with the world giant, American Airlines, and with other companies of various sizes, such as Cathay Pacific Airways and Finnair. The alliance thus created is called Oneworld. It aims to be a transnational airline.” Most people attempt to be part of big companies like British Airways for stability and security. Joining a company as large as British Airways—to some—is like an assurance of a comfortable future. Not to mention the tempting benefit of discounted airfares and the chance to see various places for free. As one tries to climb his career ladder, he puts into consideration various aspects of employment. Indeed, assessing a potential employer requires experience as well, choices and decisions made by fresh graduates and long-term employees vary in countless ways. An experienced applicant would regard benefits and trainings, the strength and weaknesses of the organization as essential definition of a potential employer. Being able to recognize the fundamentals of an unwavering company, despite recessions and other economic struggles, would also help the employee in accomplishing his own stability. For instance, a sizeable company like British Airways, why in the world has it been experiencing strikes and millions of loses lately? Indeed, every organization has human resource weaknesses, no matter how unswerving they seem. Such weaknesses when left uncontrolled may lead to uninvited events such as strikes, resignations, and other occasion which might be quite harmful to the company. However, it takes more than expertise to identify and recognize such weaknesses, and it takes much more than that to resolve those issues. British Airways: Strength and Weaknesses in Human Resources Management Human Resource Management’s greatest tool against strikes and other fortuitous events is to analyze clearly its Strengths, Weaknesses, Opportunities and Threats. Having a complete viewpoint of these can greatly assist in purging the company’s weaknesses, hence, avoiding strikes and other undesirable turns of events. An unruffled look at the company’s SWOT analysis can also help the organization to maximize the potentials of its employees and become more controlled of its opportunities while trying to counteract the Threats. Currently, issues of strikes due to the much talked-about pay freeze of British Airways have been all over the news. What made if more difficult for the airline company was that the strike took place right before the Easter Holiday---which is obviously peak season for travel companies. Not to mention that the organization has already suffered millions of losses. According to (BBC News, June 30, 2009), “BA is struggling as the economic downturn continues to hurt its business. It recently asked staff to work for nothing to save money.” Strikes and disputes reflect an important issue here: something went wrong with the Human Resources Management of the company. It was demanded by UNION for the British Airways to retract its pay freeze. However, the issues began with the airlines attempt to cut cost. The airline claims that it has the liberty to decrease the number of its employees when necessary, which, such liberty was not embraced by its employees. Strength. However, despite the current hullabaloo being experienced by the airline, British Airways remains to be the “Favorite Airline”. The company is known for its success in training its employees’ leadership abilities. The organization has provided powerful managers with highly potential subordinates who efficiently take control of the operations. British Airways manpower management is also in accordance to the United Kingdom laws. British Airways carefully select its employees by meticulous hiring process. Selection procedure includes face to face interview with the applicant, warily designing the skills against the available posts. Another strength of the airline company is that it is committed in maximizing the capability of its employees. Applicable trainings and development schemes are made available to hone the skills of its people. There are various programmes as well to ensure that other significant aspects of employee development are also covered. The airline puts forth various attempts to increase the productivity of the employees by providing different training tools. The company even makes interactive learning centers as well as library facilities to possibly get the most out of their employees’ talents and skills. Also, the airline takes consideration on its disabled employees, (britishairways.com) wrote, “Reasonable adjustments are made for employees if they are disabled or become disabled whilst working for British Airways.” British Airways also comply with the UK employment laws, where it gives equal opportunities to its employees, regardless of the gender, the staff are given unbiased rights for promotions and other applicable benefits. Gender Equality is an important aspect of UK employment law which requires companies to give impartial opportunity to both sexes and that no discrimination against women should be applied. The same opportunity must be given to gays and lesbians as well. This is evident in certain significant positions which are held by the women population. The company also recruits employees regardless of their religious belief. The airline hires staff having a variety of religions: Roman Catholics, Born Again Christians, Buddhists---staff are hired depending on their skills and capabilities, not on their belief. (Ellis, Evelyn, p. 272, 1998) has written, “T]he principle of equal treatment in matters of social security should be implemented in the first place in the statutory schemes which provide protection against the risks of sickness, invalidity, old age, accidents at work, occupational diseases and unemployment, and in social assistance in so far as it is intended to supplement or replace the above-mentioned schemes.” Competitive salary package offered to its people is also one thing that the airline company is known for. Bonuses and profit share plans are also given for certain positions. British Airways infuse its staff to do better by providing incentives where it is applicable. Weaknesses. Inability to closely monitor and control discrepancies such as price fixing of its employees which was said to have been done with the airlines executives and the sales and marketing director. Undeniably, this occurrence is quite difficult to handle, despite the fact that it is actually expected. Issues of pilferage and theft is quite common in hospitality and travel industries, hence, companies must be more be on guard in keeping an eye to their employees. (US Newswire, Sept. 30, 2008 ) confirmed, “A British citizen and former executive of British Airways World Cargo has agreed to plead guilty, serve eight months in jail and pay a criminal fine for participating in a conspiracy to fix rates for international air cargo shipments, the Department of Justice announced today.” Dishonestly and other practices can actually take place in every business. Hence, it is important to not only focus on the skills development of the manpower. Companies should also give attention to the morals and values of their staff and aside from trainings and developments, they must also allot some time to provide team building seminars that do not only tackle the improvement of the skills and talents---but should also pay some attention to enhancing one’s character and integrity. In a world as tempting as an airline industry, companies should also make an effort to enlighten the employee’s dispositions, to remind them that one’s reputation, above anything else---remains to be one of the most important traits. Employee relation is one thing that the airline claims to be given importance by the company. However, despite its efforts, arguments regarding staffing levels and salaries were mentioned as the reasons behind the much controversial strike that took place. Cabin crews were said to be unsatisfied with the negotiations which lead to the carrying out of the second strike. (Holder, Michael) wrote, “The three-day stoppage last weekend cost the airline about 7 million pounds a day, BA said. Unite disagreed, saying the seven days of strike action would cost the airline nearly 100 million pounds.” The strikes that took place also reflect that British Airways weren’t able to make their manpower understand regarding the cost cutting issue. It was mentioned that it was quite inevitable and attempt on the airline’s side to minimize cost through their employees were somehow acceptable. Recession has made huge impact on different companies, and an organization as big as British Airways was not spared. Evidently, the situation went out of hand because the employees were not willing to take the cost cutting, and that the airline fell short in talking their manpower into it. Having an impact on the employee’s thinking, as well as maintaining the authority and respect is something that the airlines need to work on. How an employee feel about his company is an indispensable aspect of an employee and employer relationship. (Breaking Travel News, April 7, 2010) published, “Strike action at British Airways cost the airline £40-£45 million in March, as cabin crew walked out for a total of seven days. A three day strike from March 20th, followed by four days of industrial action from March 27th, cost the British flag-carrier approximately £6.5 million per day, the airline confirmed in a statement.” Conflicts had been in the air for months, according to (Bawden, Tom, June 16, 2009),“Unions reacted angrily after British Airways asked its 40,000 staff to work without pay for up to a month in what Willie Walsh, the airline’s chief executive, dubbed the company’s “fight for survival”. Opportunities. Continuously working with various international groups and other companies and tying up with their business to accomplish and maintain global existence. Recently, British Airways has signed a merger agreement with the Spanish airlines. The airline company never ceases to spread its wings and keeps on trying new opportunities. (The Tehran Times, April 10,2010) posted: “The merged company will provide customers with a larger combined network,” said Willie Walsh, the British Airways chief executive, who is expected to head the merged group. It will also have greater potential for further growth by optimizing the dual hubs of London and Madrid and providing continued investment in new products and services.” British Airways, without doubt, intends to soar higher this time, notwithstanding innumerable threats and trials. Threats. The idea of facing more strikes and other unwelcome acts due to misunderstanding between the company and the UNION may actually lead to more serious damages if the airline would not be able to counter it. British Airways has already experienced enormous losses, and if the company continues to fail in creating a congruent connection with its manpower, it is likely that the company may encounter more deficits. Recommendation. In every venture, what is important is that the company gives value to its employees. British Airways may truly be giving the right treatment to its personnel, and disputes could have actually been prevented and resolved. Strikes and loses could have been averted. It is important for both parties to hear out each side. Cost cutting was essential, careful planning and adequate explanation to solicit understanding could have been done better. Another suggestion which may seem a bit silly but can actually create huge impact is to take some time to develop programmes, not only to develop the talents of the staff---nor to educate them further for more complicated tasks---but a course where they would also be reminded about the importance of trustworthiness. It is about time that companies allocate few hours of their busy schedules to hark back and make the people remember that life is not just about making money or getting the managerial positions. Companies get too busy spending their money on career development and constructive trainings that the values is sometimes forgotten. True, one’s integrity may be his responsibility. Then again, it wouldn’t hurt to help someone to reawaken his spirituality, which could actually lead to an honest, upright service, without price fixing incidents and occurrence of cheating would significantly be lessened. Employees work better when they are treated well. One simple way of maximizing the performance of the employees is to simple let them feel that they are trusted and involved. A feeling of importance, and being treated equally can greatly inspire the staff to give his best. (Noon, Mike, p. 15, 2001) published “Over the past twenty years there has been considerable debate within both the academic and the business community about the purpose and effectiveness of equal opportunities policies.” Conclusion British Airways, in general, knows exactly what its employees need. The current situation may had been brought by difficult decisions as part of the recession. Such events have been part of financial ordeals which are actually experienced by most companies. Nevertheless, the airline has been fair and can be considered as reasonable when it comes to its Human Resource Management. Disputes are sometimes inevitable. What matters now is that the Airline managed to put a stop to the strikes, and have even prevented threat of more to come. Majority of the cabin crews have returned to their posts and started to comply with their duties. British Airways have eventually managed to mend what had been broken for a while. The airline continuous to fly, as it incessantly rise above despite its setbacks in the past few months. British Airways, like any other company, goes through some drawbacks. It experiences complexities when it comes to its employees. In the past years, it has sometimes been controversial. Conversely, while some companies may opt to hold back for quite some time, British Airways took another leap. It had been reported to be with an agreement with Spanish Airlines which have described as an impressive stride since sales and bookings have already dramatically increased. (Hailey, Veronica H., p. 170, 1999) has written, “The strength of linkage between people processes and business strategy can vary across both processes and businesses” Reviving its stability can also assist in revitalizing the employee’s stability. As British Airways fly away from bankruptcy, its human resources are also expected to flee from fears and uncertainty. Bibliography Bawden, Tom, Union Anger as British Airways Asks Staff to Work for Free, 16 June 2009,. BBC News, British Airways Seeks Pay Freeze, 30 June 2009, . Breaking Travel News, British Airways Strike Cost £45M, 7 Apr 2010, . Britishairways.com, Diversity Strategy, Our Employees, . Ellis, Evelyn, Ec Sex Equality Law, p. 272, 1998, Oxford. Hailey, Veronica H, Strategic Human Resource Management, p. 170,1999, Oxford. Holden, Michael, Union Threatens More Strikes at British Airways, 27 March 2010, . Noon, Mike, Equality, Diversity and Disadvantage in Employment, p.15, 2001, Basingstoke, England. Yahoo Finance, British Airways Company Profile, 17 April 2010, . Tehran Times, British Airways and Iberia Sign Merger Deal, 10 April 2010, < http://www.tehrantimes.com/index_View.asp?code=217081>. US Newswire, Former British Airways Executive Agrees to Plead Guilty to Participating in Price-Fixing Conspiracy on Air Cargo Shipments, 30 September 2008, . Read More