British Airways: Business Management Practice - Case Study Example

Running Head: BUSINESS MANAGEMENT PRACTICE Business Management Practice Name Course Institution Date Business Management Practice The classical school of management has contributed greatly to the Success of business management through enhancing the implementation of an appropriate management structure and culture together with effective methods of managing the behaviour and attitude of the business workforce. One of the key principles of classic scientific management developed by Fredrick Winslow Taylor is the scientific selection and proper training of employees in order to achieve efficiency and increased productivity in the work place. (Alajloni, 2010 p. 61).This principle has been employed effectively in both the public and private sectors. Since the development of this principle, the recruitment process for employees has been revolutionized. Organizations have become more focused when recruiting new employees in order to ensure the right person capable of performing the duties is selected. The hiring process for key managerial jobs on offer in the civil service, local government and other public institutions are now conducted with thorough scrutiny. The candidates are usually screened and the refined list given to well recognized Human resources recruiting agencies for further interviewing of the candidates in order to pick the most suitable candidate for the job. The process of evaluation of the potential candidate involves taking them through a series of tests as advocated by the scientific management theory. In addition, it has become a common practice in both the public and private sectors to further train the new candidates before they assume their new offices. The focus of the training is to customize the experience and diverse knowledge of the successful candidate to their new position. This will allow them to conduct their work duties to the required standards, achieve efficiency and increased productivity. Another aspect of classical management that is gaining root in establishing effective methods of management structure is the clear division of labour as advocated by both Taylor and Henry Fayol in his classical administrative theory. Division of labour has had a remarkable important in the public sector. Currently, there are five million people employed in the UK public sector (Bovaird, 2009 p. 121)). Imagine the UK civil service without a clear division of labour. It will almost be impossible for the management team to coordinate and ensure efficient delivery of services to the public. Division of labour has greatly contributed to the establishment of distinct departments within the respective government institutions. This has multiple advantages both to the public and the managerial team. The general public can easily identify which government office will be appropriate to visit in order to have a certain service done for them. For instance, an individual who needs a passport processed for them. Without clear division of labour it would be impossible for this individual to know where to go to have his passport processed. However, because of the benefits of classical management the individual can easily identify the Immigration Office as his next port of call. For the managers, division of labour has made it possible for them to specialize in their respective fields. This has to a great extent enhanced the performance of the managerial tasks. Each manager is now focused on ensuring the efficient delivery of services to the public. With this clear management structure, it is easier to access the performance of each department and enforce the necessary changes in order to achieve the require results. Though businesses in the private sector are small in both size and capacity, the benefits of division of labour have also come handy. The management has clear cut duties to perform thus efficiency and high productivity is easy to attain unlike the old era where one manager used to perform all the duties associated with management. For example, he would be the accountant, the administrative officer, Human resources manager, the procurement manager and so on and so forth. Monitoring the performance of the workforce is also easier since each manager has a clear perspective of which employees to monitor. Another accrued benefit is total elimination of duplication of work. Division of labour has also fast track the decision making process since only a few individuals are involved. Another contribution to the management culture is the importance laid upon social factors in the work place as argued by Henry Fayol. Fayol concluded that workers as well as managers are affected by social interactions in the work place. A recently study done in the UK local government by Conway demonstrates. In the research it was discovered 22% of the managers sampled spend some time socializing and politicking (Sampford, 2002 p. 59). The social networking of employees is what generates bonding in the workplace. The workforce is able to gain some sense of belonging in the organisation. It is this social factor that has generated the need for team building and also championed the need for corporate social responsibility. Though the benefits of this principle to the management of the organisation are intangible but they are well evident in the enthusiasm shared by both the workforce and the management. Unity of command is another management principle developed by the classical management school. It emphasises that each employee should only be answerable to one superior. This principle has been employed in both public and private sector to establish clear organizational structures. By so doing, the employees know where they will get their instructions from. The benefits of this are commendable. They include; a well structured organisation with clear line of command, reduction in conflicts arising from several centres of command, efficient and clear channels of relaying information, enhances discipline and a fast decision making process. A good example of the gains achieved from this principle is the level of discipline and efficient operation of the military command. Every soldier clearly knows where to get his/her instructions from. There is a clearly line of order from the top to bottom. Corporate social responsibility and Business Ethics According to Bichta, (2003) corporate social responsibility refers to a scenario when voluntarily a company decides to involve the stakeholders in initiatives for long-term value creation (p. 7). The current interpretation of best practices has been meant to be a microcosm of corporate social responsibility (Bichta, 2003 p. 9). According to a Barclays Plc report (2003), the institution had initiatives to enhance community welfare, environment care, its market and workplace through corporate social responsibility as well as best practices. These were in-line with the corporate responsibility benchmarks of the Business in the Community body (Barclays Plc, 2003). Business in the Community body runs a voluntary index and reporting instruments to support its members to achieve a better social reputation (Bichta, 2003 p.2). These members are mainly corporate players. Similar associations recognized by Barclays Plc include the Corporate Responsibility Group and London Benchmarking Group (Barclays Plc, 2003 p.17). In its Social corporate responsibility gesture, Barclays has opted to impact the immediate communities within where its employees reside (Barclays Plc, 2003 p.17). In achieving the gesture the Company has affiliated itself with associations that are like minded and/or partners wishing to support its community initiatives. For instance Heart of the City and Employees in the Community Network among others (Barclays Plc, 2003 p.17). As part of this community campaign the Company had set aside a sum £32.8m in 2003 in support of over 6000 charities (Barclays Plc, 2003 p.17). This was intended to make a widespread welfare impact considering its multinational reach. In addition, the campaign gives employees the opportunity to experience and appreciate the positive difference the Company is making on their immediate communities. For instance, the company ran a successful partnering charity scheme in 2003 dubbed Together IT Works for people with hearing impairment in the UK (Barclays Plc, 2003 p.18). The charity had an IT training programme that attracted special trainers from colleges who conducted over a thousand induction sessions (Barclays Plc, 2003 p.18). The charity was meant to impact IT skills for the impaired people to enhance their employment prospects. As a result of this charity the Company was recognized through a BITC Award for Excellence (Barclays Plc, 2003 p.18). The Company also financially supported a volunteer event in the UK to mark the Make a Difference Day for 2003. Employees visited children centers in UK as part of other global charity projects intended to mark that day (Barclays Plc, 2003 p.18). Towards enhancing environment friendly practices, the Company has put in place an Environment Risk Management Unit (Barclays Plc, 2003 p. 20). This is intended to impact a responsible attitude towards environment through environment due diligence for project financing approach (Barclays Plc, 2003 p.20). In 2003, the Company was involved in preparing a set of guidelines known as Equator Principles (Barclays Plc, 2003 p.10). The principles are meant to help gauge how well a development project has mainstreamed environment and social best practices as a requisite for financing. The Principle mainly applies to loans for projects worth over US$50 million in capital investment (Barclays Plc, 2003 p.10). By the end of 2003 up to 19 global banking institutions had domesticated the principles in their operations (Barclays Plc, 2003 p.10). In addition, the Company is using its buying capacity to promote environment responsibility within the supply chain transactions (Barclays Plc, 2003 p.20). Similar to the case of Barclays Plc, British Airways has adopted the four benchmarks as prescribed Community in the Business: community, environment, workplace and marketplace. In enhancing environmental care objective, initiatives are geared towards carbon emissions cuts, reducing on wastes and noise as well as air quality improvement (British Airways, n.d. p.7). In 2010, the company set up an Environmental Compliance Group to evaluate operation systems and ensure the ongoing environment friendly initiatives are sustained (British Airways, n.d. p.9). British Airways has also prioritized global aviation industry challenges of climate change. Thus, it intends to participate in greenhouse gas emission cuts through installing clean technologies, low carbon fuels and energy efficiency systems. In addition, to lower its overall emissions the company intends to achieve this through emission trading systems (British Airways, n.d. p.). The company has set some environmentally friendly targets: to have achieved 50% net carbon emission cuts by 2050; lower by 25% carbon dioxide per passenger km by 2025; cut down by 15% the noise per flight by 2015; improve operational systems so as to achieve Heathrow air quality targets; achieve recycling of about 50% by 2010 and 60% by 2015 (British Airways, n.d. p.). The company achieved up to 4% rise in recycled waste at Gatwick and Heathrow (British Airways, n.d. p.). The Company maintains close attention with the UK’s Climate Change Committee for Sustainable alternative fuels such as biofuels (British Airways, n.d. p.). Claims are that sustainable alternate fuels could replace up to 10% of aviation fuels by 2050 (British Airways, n.d. p.). In 2009, the Company’s effort to mitigate environment impacts where recognized through 2009/10 ICARUS Award by ITM ICARUS caucus of travel buyers and suppliers (British Airways, n.d. p.). Other environmental awards the company has scooped include Brand Emissions Leaders Status for 2009 and Carbon Trust Award for 2008 (British Airways, n.d. p.). According to the BITC Corporate Responsibility Index, British Airways achieved a corporate responsibility index score of 87.25% (British Airways, n.d. p.). Since 1999 through June 2009, British Airways has been able to provide interaction opportunity over 50,000 young people; to explore into its business affairs and get inspired for future (British Airways, n.d. p. 22). The Company has undertaken an environmental outreach for primary and secondary schools (British Airways, n.d. p. 22) During the Nationals Tree Week British Airways partnered in setting up Tree Buddies Programmes meant to network London populace (British Airways, n.d. p. 22) In collaboration with its customers and other well-wishing partners, British Airways have raised over £27 million that is intended to support UNICEF UK (British Airways, n.d. p. 22) British Airways has supported a sport coaching and youth programme in three districts of South Africa since 2002 (British Airways, n.d. p. 22) Reference Alajloni, M. M. Almashaqba M. S. Z. (2010) The Classical Theory of Organisation and it's Relevance. International Research Journal of Finance and Economics, Retrieved January 16, 2010 . Barclays Plc, (2003) Barclays PLC: Corporate Social Responsibility Report 2003. Retrieved January 16, 2010 . Bichta, C. (2003). Corporate social responsibility a role in government policy and regulation? Retrieved January 16, 2010 . Bovaird, G., Löffle, E. (2009) Public Management and Governance. UK: Routledge. British Airways, (n.d.) British Airways corporate responsibility report 2009/2010. Retrieved January 16, 2010 . Sampford, G. (2002). Public sector ethics: finding and implementing values.  London: Routledge . Read More