British Airways Human Resource Management - Essay Example

Module British Airways Human Resource Management The Organization and Its Mission British Airways is an international airline that offers flight services in the United Kingdom. It was founded in 1924 and it was first known as Imperial Airways and used this name until 1935 (British airways Plc.). In 1939, the airline was nationalized to British Overseas Airways Corporation (BOAC). In 1972 BEA and BOAC came together under the British Airways Board (British airways Plc.). The company’s mission statement is to provide the full service experience on the ground and in flight (British airways Plc.). The mission statement is to be “The World’s Favorite Airline”. Structure and Leadership The company’s structure is clearly shown in the diagram below. The chief executive is at the top of the hierarchy and is in charge of all the operations in the company. Below him in the hierarchy is the management board and the customer and operations executive (British airways Plc.). In the daily operations of the company the chief executive is assisted by the chief financial officer and the leadership team. The members of the leadership include the commercial director, the chief information officer, the director of engineering, director of people and organizational effectiveness, general counsel and director of investments and alliances (British airways Plc.). (British airways Plc.) SWOT Analysis The company’s SWOT analysis is used to show the company’s strategic positioning in the market and its strengths and weaknesses. The company boasts of having a wide range of strengths making it a market leader in the airline industry in the UK and the global scene. To begin with, the company has a strong brand image that makes it stand out in the market. Secondly, the opensky agreement supports its operations (British airways Plc.). Thirdly, the company has an expansive fleet which translates to a huge customer base. Fourthly, the company has a highly skilled work force that ensures delivery of quality customer service. Finally, the company benefits from economies of scale due to its level of operations and vast market base. On the other hand, the company is faced by various weaknesses including competition in cost as compared to ‘low fare’ airlines (British airways Plc.). Increasing costs of managing operations in various parts of the world, huge debt burdens and unfunded employee post retirement benefits. Other weaknesses include a high number of labor strikes and a powerful labor union. The company can exploit opportunities in various areas. These include emerging markets in Asia Pacific and other parts of the world (British airways Plc.). British Airways faces various threats in the market including increasing pressure from the global economy, an unstable political environment, increasing competition, increasing global fuel prices and shifts in consumer behavior (British airways Plc.). Operations and Employment The company operates mainly in the UK and has spread its operations across the globe meaning that its operations are international. The company employs approximately 35000 employees in the UK and 5900 in the global market (British airways Plc.). These employees serve in management positions, cabin crew, customer care and luggage positions. Strategic Plan, Mission and Vision The company’s mission is to be world’ favorite airline and offer a full service experience in flight and on the ground. The company’s vision is to minimize its carbon emission in order to be in line with the government’s requirements and reduce customers’ costs (British airways Plc.). Role of Human Resource Function The human resource function is an important aspect in the company. This is because it provides knowledge and expertise in various areas including communication with employees, facilitating and managing employee training and development, recruitment and employee relations(British airways Plc.). Human resource management is a strategic business partner as it determines efficiency within an entity and is a source of competitive advantage. Line managers have responsibilities for HR functions these include employee relations, training and development, compensations and benefits and recruitment and selection. The HR function is organized to achieve competitive advantage through HRM. British Airways actively takes part in human resource planning to ensure its continued success in profitability and customer service (British airways Plc.). Recruiting and Staffing Staffing needs are established by the HR management systems that establish the need for people to be recruited. Job analysis is performed to evaluate employees’ performance and it is performed on a quarterly basis. The job descriptions in the company are based on the duties and responsibilities expected from a given position (British airways Plc.)There are various procedures and sources are used in that are used in staffing the organization. First there are some positions that are filled through an internal recruitment process. Secondly, there are positions that are filled through an external recruitment process that entails a rigorous interviewing process (British airways Plc.). The organization has not encountered any problems in the staffing area as there are many individuals who wish to work for the company. Financial Compensation The organizations compensation strategy is based on the fact that a proper compensation method leads to the establishment of a motivated workforce that dispenses its duties accordingly. Compensation management is one of the most well managed issues in the organization. There is no well established pay structure and employee compensation is based on the hours an employee has worked for. Pay decisions made for the various levels and positions are made by the human resource department (British airways Plc.). This is done according to the hours worked or the position and employee serves in. There are other forms of employee compensation in the form of bonuses for any extra time that the employee works for. The company’s executives’ remuneration is made of the basic salary, an annual bonus, pension and other standard benefits and participation in log- term incentive plans. Non Financial Compensation The company believes in employing various forms of non- financial compensation to motivate its employees. British Airways does not have a total rewards strategy and uses a variety of methods to motivate its employees. The company offers a wide range of non- financial rewards to keep its employees motivated (British airways Plc.). This includes promotions to employees who perform exceptionally well. Free flights and holidays are given to various employees at the end of every financial. There are innovative or non-traditional rewards offered in the form of health care service provision, state of the art cafeteria and relaxation centers. Performance Management The organizations performance management policy aims at establishing a high performing business where highly talented individuals can work to meet customers’ needs in the best way possible and the entity’s social responsibility. There are various methods of performance appraisal adopted at British Airways (British airways Plc.). For instance, workers are undertaken through performance tests and observations to evaluate their performance. The results of the performance appraisal used within the organization to make administrative decisions such as promotions, setting of salaries and termination. They are used for developmental purposes for individual development, transfers and placements. They are also used for organizational maintenance in training, HR planning and goal identification. Finally, they are used for legal purposes and human resource decisions. Training and Development Training and development are important aspects in the company’s operations as they improve employees’ performance and shows that the entity appreciates them. The employees are first briefed on the company’s mission, vision and statement. Following this, they are oriented on their duties and responsibilities. The company offers various types of training to its employees to improve their competence in various areas. These include safety training, conflict management and team building training (British airways Plc.).The training is offered to all levels of employees however, more emphasis is place on the cabin crew due to the changes in technology and those in the security department. The organization offers training to its employee at the start of their employment and during the employment to improve their skills and performance. Employee (or Labor) Relations There are various methods and procedures used by the organization to resolve issues including negotiations, taking the employee complaints into consideration and proper communication between the employees and HR department. There have been numerous cases of employee grievances and legal actions in form of strikes and industrial action by the employees. There are high rates of employee turnover owing to the company’s attempt to cut down on costs. The employees are represented the Britain Unite union (British airways Plc.). The relation between the organization and labor is estranged as they are involved in constant battles over employee grievances. Other areas for possible research, if the organization supports these, may be Safety, Diversity, or Global HR British Airways takes issues of safety and security into consideration especially in the wake of numerous terrorist attacks (Price 230). All passengers and are thoroughly screened before take off. Additionally, the issue of diversity is the workforces are taken seriously as British Airways hires workers from different ethnic background. Additionally, the company operates in the global market and embraces global HR practices. In summary, British Airways is the leading airline in the UK and a key competitor in the global market. From the above discussion it is clear that the company takes the issues of HRM very seriously and uses it as a way of generating a competitive advantage over its rivals. The company has set up compensation strategies to motivate and retain its employees. However, it is clear that the company should resolve some HRM issues to minimize the occurrence of strikes in the company. The company is advised to work on these issues to continue enjoying increased profitability and success in the airline business. Work Cited British airways Plc. 2010. (2010). 2009/10 Annual Report and Accounts. Web. 30 Nov. 2013. Price, Allan. Human Resource Management. Cengage Learning, 2011. Print. Read More