British Airways Organizational Behaviour - Case Study Example

British Airways’ Organizational Behaviour Report

Description of British Airways

British Airways was originally a small merger formed by several airlines in the United Kingdom. It was a private company until 1939 when it underwent nationalization. In 1971, the Civil Aviation Act came into place merging several airlines. As a result, the current British Airways became operational after the 1074 merger. Throughout the 1970s, British Airways performed poorly because of the integration of different corporate cultures (Great Britain 2007). Specifically, the various mergers that led to the creation of British Airways explain why there was a mix up of corporate cultures. In the 1980s, the company underwent privatization and appointed a new chairperson and chief executive officer (Balmer, Stuart, & Greyser 2009). There were numerous changes in the company with the core objective of improving its services so that it could compete effectively with other airlines in the region. In the 1990s, the company registered remarkable expansion and cultural change a factor that explains why it became a leading airline in Europe. For this reason, it is imperative to understand the cultural changes that took place in the company and develop an explicit understanding of the current corporate culture and position. Over the years, British Airways has remained a remarkable airline in Europe as well as other regions. British Airways has gained the reputation of one of the greatest airline companies on the globe with more than 550 destinations.

Products and Services of British Airways

British Airways has engaged in a rigorous product development process. At the start, the company did not perform well, but it introduced changes along the way. Currently, British Airways provides flight services to more than 550 destinations across Europe and the world. Passengers can choose from the different classes of travels. The company offers an executive class, as well as a business class that provides customers with quality flights. The company’s product strategy places emphasis on speed, security, and comfort (Flottau 2015). Although flight services are the basic products, the company has registered differentiation with the core objective of meeting the needs of different companies. The basic levels of products at British Airways represent the core benefits of customers being able to buy tickets that allow them to travel from one destination to another. On the second level of its products, customers can book seats on flights scheduled for different destinations.

The company has flights to the busiest airports in Europe and other parts of the globe. The company provides customers with quality services, meals and drinks during their travel. British Airways also ensures that customers have access to entertainment during their flights. The company provides augmented products with various support facilities. The executive class comprises of three different categories, namely the Blue, the Silver, and the Gold (Great Britain 2007). Passengers who can access the silver and gold categories can also access the lounges in various airports where they can relax (Balmer, Stuart, & Greyser 2009). The first class passengers have bed seats that they can use for relaxation. The augmented products add value to the customer.

Moreover, British Airways saves the time of passengers because of its emphasis on speed. British Airways has staff members who carry out different operations to ensure that passengers can access quality services in good time. The crew is responsible for ensuring that customers can access meals, drinks, and the comfort they need during their flights (Great Britain 2007). Other employees are responsible for selling tickets and scheduling flights. British Airways has a dedicated team that coordinates all the activities required for ticket booking to check-ins and to ensuring that the customer gets to the preferred destination. The operations team ensures that the schedule of flights to different destinations is clear and that all the passengers can access the services that they need. The company also operates both international and domestic carriage of freight and mail. British Airways also has ancillary services in place.

British Airways’ Culture

As highlighted above, British Airways performed poorly in the 1970s and the 1980s. The company had a poor corporate culture that contributed to its numerous problems. The company did not give attention to the needs of employees, and there was no strategy implemented to motivate employees. The company had adopted a hierarchical and militaristic culture that contributed to the poor performance. There was no connection between managers and employees, and many of the employees did not have any attachment to the company. As a result, the company implemented a cultural change that laid the foundation for the current corporate culture. British Airways implemented two programs that sought to turn around its culture (Flottau 2015). The first program, “Putting People First”, had the core objective of providing employees with the relevant training that could conform to the company’s strategy. The second program, “Managing People First”, sought to break down the existing behavioural boundaries.

The two programs led to the introduction of reformed policies that created a direct contact between staff members and leaders. The cabin crewmembers became families that shared shifts. Because of the family system, the company registered improved employee relations. The “Managing People First” program introduced behavioural changes among managers. Consequently, they became more helpful, and they had the determination to promote achievement among employees (Flottau 2015). The managers also learned the importance of promoting teamwork and personal excellence. The program also emphasized the need for care and trust expressed by managers. The two programs created a new corporate culture that enhanced staff personal qualities and introduced a teamwork culture (Balmer, Stuart, & Greyser 2009). As a result, the company became a preferred workplace for many graduates. Unlike in the past, British Airways has improved that culture, and it has continued to register higher levels of employee satisfaction.

Major Personality Traits Relevant to British Airways

After the cultural change introduced at British Airways, the company changed the expected personality traits of its employees and managers. Currently, the company seeks to employ individuals with a high adaptability to situations, achievement oriented, dependable, and cooperative. The company seeks to bring on board employees who can work together to improve the services that the company provides. Due to competition in the region, British Airways aims at providing remarkable services to customers as a means of adding value to their customers (Bannan 2007). The cabin crew should have qualities such as self-confidence, high levels of creativity and tolerance, organized, and persuasive. Without a doubt, the skills and traits that the cabin crew possesses, directly determines the level of customer satisfaction. As a result, the company emphasizes the need for hiring dependable individuals who are quite assertive and friendly.

The managers of British Airways are preferably individuals who can model away for the others and inspire a shared vision. Effective managers in the company should be able to challenge the existing processes and introduce new ways of operation. The ability to influence and enable others to carry out different tasks is also an important aspect for British Airways leaders. The company values employees who are relationship-oriented because such employees can improve customer relationships (Balmer, Stuart, & Greyser 2009). Managers who are relationship oriented have the ability to strengthen employee relations. Moreover, relationship oriented managers are in a position to introduce intrinsic motivating factors that will encourage the employees. Although being task oriented is a significant aspect, the company prefers individuals who can balance the attention they give to tasks and relationships.

How the Approaches of British Airways Encourage Employees to Contribute to Organizational Performance

British Airways has recognized the importance of using different approaches to promoting employee motivation. Employee motivation and satisfaction are the only intrinsic factors that can encourage them to increase their productivity. As a result, the company can rely on different motivational theories as a way of encouraging the employees to contribute to its performance. Maslow’s hierarchy of needs is one of the theories that the company can implement with the purpose of motivating its employees (Bannan 2007). Particularly, this theory places emphasis on the need for managers to satisfy different levels of needs exhibited by employees. Through the satisfaction of physiological and safety needs, the company will be ensuring that employees are motivated. Whereas physiological needs refer to basic needs, the company needs to provide for safety needs by providing job security. The company has made efforts of improving employee relations and successfully satisfying the social needs of employees. However, the company can introduce policies that allow employees to spend time with their family and friends despite the busy shifts.

The company should focus on empowering the employees by promoting their confidence and level of achievement as well as self-esteem. The company has in place reward systems that play a critical role in improving the esteem of employees. However, British Airways does not have strategies for promoting self-actualization, which is the highest need in the hierarchy. Through job enrichment, the company can allow employees to take up new responsibilities and put in place their creativity and autonomy (Bannan 2007). Employees should also take part in decision-making and problem solving. The implementation of the Maslow’s hierarchy of needs will ensure that employees have high levels of motivation, and they will be more productive. The Hertzberg’s two-factor theory can also help the company to increase employee motivation (Balmer, Stuart, & Greyser 2009). According to the two-factor theory, the company should put in place motivating factors as well as get rid of dissatisfaction factors. Particularly, the company should do away with unnecessary supervision, lack of job security, lack of challenging responsibilities, and allow employees to have freedom. The company should get rid of inappropriate company policies sand introduce higher levels of responsibility, recognition, and opportunities for personal growth.

Challenges that British Airways Faces in the Management of Human Resources

British Airways faces certain challenges in its efforts to manage human resources effectively. The company has been seeking to implement a human capital management solution for the recruitment process. Particularly, the company takes a lot of time to identify suitable candidates for its different job positions. It is extremely difficult for the human resources management team to select the most suitable candidates from a large number of applicants. British Airways does not have an effective strategy of selecting the best employees who can add value to its operations and services (Reals 2014). The company is one of the largest airlines in Europe and the world, explaining why human capital management is quite challenging. The company needs to develop a reliable strategy as well as management information systems that it can use in selecting candidates during the recruitment process.

Additionally, British Airways has been facing challenges in the retention of existing employees. The company values old talent, but lacks strategies for retaining such talent. As a result, there are higher chances of such talent leaving the company and joining other organizations. The company is large, and it has diverse operations in place. The diverse operations only translate to the fact that employees can develop their careers in different ways (Balmer, Stuart, & Greyser 2009). It is difficult for the company to select the best candidates for training programs and career development opportunities. Undoubtedly, the company needs to develop a more effective recruitment and selection strategy that will lead to the identification of the best candidates to work for the company. On the other hand, the company needs to develop strategies for retaining talent within the organization. Through the empowerment of the existing employees as well as reward and recognition systems, the company will be able to retain talent.

Current Position of the Company and its Future Performance

Currently, British Airways has registered a remarkable performance. It has maintained its position as a leading airline not only in Europe, but also on the globe. However, the company faces intense competition in the industry and it needs to develop strategies for improving the quality of its services. There are other airlines providing remarkable services at lower rates in Europe. As a result, British Airways needs to develop a blue ocean strategy that will make it a leader in the industry. Maintaining a leading position in the airline industry depends on its ability to provide premium customer services and more augmented products at affordable rates (Reals 2014). Although the company has faced financial challenges, it has a great opportunity for improving its performance in the future. The company can place emphasis on its premium strategy by adding more values to the customers. Specifically, the business and economic classes are likely to profit the company.