Human Resource managerial practice impacts on stakeholders at British Airways
A renewed focus was essential if the company had to meet its goals in overall improvement of company performance. The approach would be based upon employee involvement, and initiatives fostering more dynamic, service driven, and customer focussed culture. Emphasis was placed in more customer-employee contact in order to deliver more personalised services. The organisation structure for British Airways since its formation has improved tremendously, with the company having a renewed focus to its stakeholders who include the company shareholders, customers and employees.
Having a more dynamic service driven organisational culture and attitude, has put a fast pace on its growth as a major carrier in the world. Comprehensive re-educative and training programmes incorporating all tiers of management and employees in different departments, has improved on the organisations management styles coupled with the initiative, towards a flexible organisation culture, which in turn have underlined collaborative working benefits across the organisation. British Airways (BA), in the 1980s was a company revered for its cultural and organisational change as it rose to success.
BA has been able to integrate Human Resource (HR) managerial practice in its organisational fabric, thereby embodying ethics in customer service that has dramatically improved performance trends for the company. The apparent transformation in the company through the 1990s was justifiable, in regard to its reputation with customers and consequent growth in profits as compared, to other notable airlines like Singapore Airlines and KLM. Combinations of factors have been responsible for the performance of BA as an airline. Unique set of circumstances in its managerial processes coupled with the aspect of privatisation, gave the company an edge over other airlines in early 1990s to emerge as a company to be emulated.
Moreover, the company has experienced various challenges particularly with changed regulatory environment, which has pushed airlines in re-evaluating their goals and moving towards aggressive cost cutting measures. More often than not, this has led to severe industrial disruption for all airlines, with major impacts on national carriers. Significantly, the events of 911 had drastic effects on BA compounded by the increasing competitive index in the airline business environment, saw it adopt different approaches to balance irreconcilable objectives in lowering costs, and simultaneously improving service quality. Differentiation in quality enhancement drive was the main focus for BA to remain competitive.
Introduction
Sound Human Resource managerial practices are essential for any business to flourish in the rapid competitive world. British Airways is not an exception to this aspect, and the organisation has to acknowledge the significance of incorporating comprehensive management techniques and styles for the optimum performance of the company. Strategic HR management techniques in the world airline industry today, require re-assessed strategies and approaches so as to remain competitive in the globalised world. Competent practices and policies in managerial practices will enable any organisation to cut an edge in business practices.
Focus towards customer satisfaction and quality service is of the essence in the service industry, in which the airline business falls into play. The customer is regarded to the king, and improved customer interaction will generally translate to improved business performance. Moreover, employees form a large stake in the whole procedure of service delivery, and a motivated workforce will generally lead to better company output, whereas disgruntled employees will most likely run the company down. There is a close link between strategic responses by a company towards the external environment to overall industry trends. Human resources are a crucial component in any business which entails the functions of employee recruitment and retention, managing employees, teamwork and motivation issues. This aspect has generally shifted towards service oriented industries such as the airline industry.
The scope of HR managerial practices varies broadly in the company, but mostly ensures that the needs of the organisation in a skilled workforce and employee performance are met. Constant growth in world markets, fast paced technological changes and management practices, greater economic, political and social integration, are among the many factors that have led to globalisation, and with it the growth of many service based industries. This presents board managements in companies to formulate and re-engineer effective policies and strategies that would match the pace of globalisation. Therefore, international human resource management has developed consequently, to cater a growing diverse workforce across physical, ethnic and cultural boundaries.
More so, clients come in all distinctions, and would require a competent workforce to handle their different needs. British Airways has the significant task of ensuring that its HR managerial practices integrates all stakeholders, by assessing impacts and approaches in the integration of competent management styles, and the overall impact on customer satisfaction, employee satisfaction, and overall business performance. The aim of this study is to analyse the British Airways organisation based on its Human Resource practices in the impact upon its stakeholders and business performance in the service industry.
British Airways HR managerial practices
Approach to Staffing and Seasonality
Globalisation has been an influential component across the world which has transformed the methods and channels of conducting business across various industries. It has opened up a global market and simultaneously improved the performance of numerous organisations in different industries. The airline business has also benefited from this aspect coupled with the immeasurable possibilities, brought on by this phenomenon. Moreover, apart from advantages, challenges have also incurred different organisations and especially the human resource departments. More complexities have arisen attributed to the emergence of cultural differences.
British Airways is one of the organisations that has to deal with such issues, and the challenges presented on the approach of HR practices towards staffing and seasonality in its business transactions. This aspect will be profound upon employee performance, customer satisfaction and overall business performance. Staffing entails the HR managerial processes of hiring, motivating and controlling employees in a work environment, to accomplish the organisations objectives. Therefore, human resource management practices are crucial to oversee staffing requirement for BA even in the aspect of seasonality in the industry.
Seasonality describes the period between peak and off-peaks in business operations. For the airline, this means having adequate or overstretched employees during peak time, and more personnel with less activity in off-peaks. Employment structure is important for any company to manage its employees. The human factor is crucial in the link of employee and customer satisfaction. In order to ensure employee productivity, satisfaction and retention of valuable workers in and out of season, BA to carefully consider its labour input. Currently labour is 40 in overall operating efficiency and costs. Out of season business, the airline gives it workers more flexible working arrangements, which also see some of their staff take planned breaks through management initiatives, in order to have a cost advantage in the running of the business. Moreover, peak time would require all staff working to cover all aspects of business operations.
Staffing is essential throughout seasonalitys to ensure optimum customer service and satisfaction. The development of customer orientation through service employees is important to the British Airways organisation, to ensure that customers receive all the support they require, and more so effectively, quality cantered and customer focussed (Griffin, 2009 pg 5). In addition, this component will build up the level of organisational socialisation, climate for service, organisational commitment and perceptions towards the direction and efforts in overall business performance.
The conceptual framework of staffing and seasonality at BA has sound planning to ensure the organisation maintains a high level of customer orientation and consequently impacting on customer perceptions, employee satisfaction and business growth.
Selection and Recruitment processes towards strategic and operational approaches.
British Airways has a discrete edge on the aviation industry compared to it competitors by executing an effective operations strategy platform, that has been a major pillar towards its overall corporate strategy. Key competitive advantages in its operational and strategic approaches have relied on, its focus towards human resource practices and organisational work culture, customer service, and differentiated competitive dimensions in its operation analysis. Selection and recruitment of employees at BA is a significant process, where the HR managerial practices identify the key areas that require skilled and knowledgeable workforce, who can fit in into the different job descriptions and perform accordingly.
Matching the right qualifications to the correct work description is crucial to the overall business performance of the organisation. Strategic approach towards enhanced employee recruitment and selection is essential for the BA management in business planning that is fundamental, if the company should achieve major strategic developments in the airline business. BA recognises that a motivated, skilled and knowledgeable workforce is crucial for the airline productivity in the competitive market environment. Therefore, effective selection and recruitment strategies at British Airways are critical, because the airline provides more than 149 destinations around the world both in freight and passenger service, and need to keep their services professional.
By seeking qualified applicants for various vacancies in the organisation, selection will enable the human resources department to acquire the required candidates skilled for the different posts. After establishing a mutual ground with employees through section and recruitment, training and development of the workforce is essential because the success of the organisation will depend, on meaningful and enthusiastic participation of staff in overall business operations (Griffin, 2009 pg 10). Without full support from employees, an organisation is likely to suffer losses due to an uncooperative workforce. HR managerial practices at BA ensure that, the right set of skills from different employees are matched to correct job profiles, and consequently examine the best practices to motivate employees to ensure they perform to their optimum. Service industry in the airline business does not only require a skilled workforce, but also knowledgeable and personalised attributed to the human factor or touch, that is essential in the airline business.
Impact of employment practices in selection and recruitment
British Airways is regarded for the high innovative management styles in which the organisation focuses, on people management practices and high performance relationship s in the organisational structure. This has been key to its unparalleled success towards its strategic and operational strategies in the airline industry. Employment practices at BA have integrated a stable working environment coupled with learning, equal opportunity and personal growth for the employees. Selection and recruitment has been essential in providing a competent workforce to cater for the various needs of the organisation.
The mission for the company is based in encouraging innovation and creativity among its employees to improve the overall effectiveness of the company. Employees in the organisation are provided with equal respect, concern, and caring attitude in organisational practices both internally and externally, thereby enhancing the overall BA customer interaction and satisfaction. British airways is strongly committed to the welfare of its employees with a distinctive mission of respecting the diverse working culture, in its hub of business, and recognising the importance of a motivated workforce in encompassing the wider business strategy.
Fairness and equal opportunity in selection and recruitment of employees, has emphasised exemplary customer service and satisfaction, leading to overall business and operational efficiency. In recognising the different potentials for the different employees, has simultaneously enhanced reciprocation from employees through loyalty, respect, and trust which has been demonstrated in the organisation (Griffin, 2009 pg 17).
These attributes have been transferred to customers who have continuously appreciated the personalised service from a dedicated workforce at British Airways. BA is recognised towards its employee dedication, attitude, loyalty and innovation. These set of unique qualities have distinguished the organisation apart from the rest in the airline industry. Through selection and recruitment, the company hires people who have the right attitude so as to thrive in BAs culture. Comprehensive processes and procedures are employed by the HR management, to recruit individuals not only with the right qualifications, but also positive dedication and attitude.
The company weeds out individuals who do not have these qualities that are crucial in the business. Selection and recruitment is critical because management cannot institutionalise behaviour, and therefore would require finding people who posses the qualities and practice in the service industries. Employee self motivation is important and the organisation allowing employees to make decisions towards customer service and satisfaction, based on their natural inclinations and common sense. This gives employees a platform of owning and feeling part of the organisation, resulting to optimal performance in the business.
Recruitment at BA involves the steps of interviewing potential candidates and consequently assessing their attitudes and orientation in the aspect of serving others. Selection and recruitment applies to all work functions in the organisation, where all employees at British Airways are geared towards customer service role. Critical to BAs operational strategy is the customer service position and customer satisfaction, whether internal or applied directly to customers. The airline places importance and value in the relationship quality interactions with its employees, and the unions which represent them (Griffin, 2009 pg 20). This interaction has enhanced he overall organisational culture and traditions for the company that has been nurtured from the beginning.
British Airways has been committed to enrich the culture and spirit of the organisation, by improving practices and relationships among the staff and management. The goal of the company is to liven the BA spirit where it has floundered, by utilising everything in their capacity to create, enrich and enhance its culture which forms the family. This unique approach has enabled British Airways to maintain its organisational culture and values through a diversified workforce across the globe, consequently differentiating itself from other airlines.
In addition, the organisations approach to customer service is dedicated towards quality service to customers and delivering exemplary experience coupled with the aspect of friendliness, individual pride, warmth, and company spirit. British Airways is in the customer oriented business, and customer satisfaction is the pinnacle of the organisations goals and objectives. From the top management to employees at the ground level, all work towards customer satisfaction in aspects of baggage handling, customer handling and enquiries, emphasise the importance of customer-employee interactions. This has differentiated BA in the airline business which has fostered its significant success in business performance.
Frameworks toward service quality and employee performance
Service quality is paramount at British Airways, and as mentioned earlier strategic and operational approaches are vital, towards employee selection and recruitment. The airline puts value and priority in the provision and delivery of enhanced customer experience, coupled with a competent workforce. BA staff plays a significant role in catering for the organisations diverse clients, and giving a more personalised service towards customer satisfaction (Griffin, 2009 pg 26).
Dynamic frameworks employed by the human resource managerial practices, have ensured that the airline performs its best, towards service quality attitude and customer focus approach. This approach has proved to be effective for the British Airline strategies and overall objectives. Employees are trained and motivated towards catering for customers with a human touch, which has consequently brought new and regular customers, who savour the class and style of services provided by the organisation.
Passenger service earnings have improved significantly with the airline management improving the utilities and earnings from economy, business to first class compartments. The experience of customers being treated as honorary guests, has improved overall customer satisfaction. Few complaints from clients with the case of baggage handling mishaps have been experienced in the organisation in which all cases have been handled professionally and ethically. Employee performance in such situations has stood out to be exemplary, further entrenching the value British Airways places upon its customers. This has also enhanced the organisations culture and spirit in the aspect of having a dedicated workforce who are loyal, motivated, respectful, and possess positive attitudes towards service to customers.
BA is committed to operational excellence and its core competencies that drive effective business operations. Moreover, the organisation has been revered for its outstanding customer service delivery and innovative human resource management practices. Customers paying money for services are not disappointed, and receive the value in the price quality ratio (Griffin, 2009 pg28). Service quality is the overall objective for British Airways team and management, that has enabled to thrive in the constant globalisation aspect and stiff competition presented by other airlines.
Employee performance and service quality has been part strategic and operational approaches, in gaining competitive advantage and simultaneously achieving success. BAs projections of Terminal 5 will significantly improve service quality to its esteemed customers, providing on of a kind customer experience and satisfaction. The terminal is designed to target diverse clients with their different needs, by providing a relaxed atmosphere and serene environment. Overall, this will enable the organisation achieve sustainable growth and profit projections.
Impact of management performance practices
The three tiers of management at BA have been at the forefront led by their chief executive, Rod Eddington, in utilising the available organisational resources towards a more customer service focus. The board is working to build and achieve strategic objectives set for British Airways as an airline with growing potential. Service quality is a key focus in the airlines management, and strives to use the most effective means to deliver superior service quality, and consequently stand out from the crowd. This is a weapon and an added advantage to the BA organisation, where it has maintained outstanding services towards its clients (Griffin, 2009 pg25).
Employee involvement has been a crucial component for the human resource managerial practices, which has ensured that the workforce possess a customer service approach that is geared towards overall customer satisfaction. Customers will remain loyal to a service provider if the perception of service quality and value they receive, is relatively greater than their expectations, and more so from competitors. The management of BA has recognised this factor to crucial for the overall success of the organisation. Service quality and customer focus are key ingredients which the company has utilised, to gain customer loyalty in the long term perspective, as a service oriented strategy.
Management practices at British Airways have integrated long term customer interactions and relations, which are paramount for its success. Customers have a common desire to experience close and personalised relationships with different service providers, and also value benefits in maintaining a sound relationship in service quality. HR managerial practices at British Airways take into great consideration its relationship with customers, and go the extra mile through its dedicated staff to ensure the needs of customers are met with professionalism.
This simultaneously yields employee satisfaction in the sense of feeling approved for the services rendered. Furthermore, the company achieves sustainable growth and performance with the incorporation of these significant factors into a coherent whole.
Conclusion
British Airways has come a long way from what is today since its inception. The airline has encountered numerous challenges along the way to success. Competent management styles coupled with a dynamic approach to customer focus and service quality, has been the driving force for the exemplary performance observed in the company. The airline has been committed to its employees, by ensuring that each individual despite cultural orientation receives equal opportunities, respect, and appreciation consequently giving room for growth and development.
A skilled, knowledgeable, and customer oriented workforce has been the engine at British Airways in ensuring that customers are catered for with a personalised touch. Globalisation has brought new perspectives in workforce diversity both as an opportunity and challenge, which the company has exploited to its advantage.
The future prospects for British Airways in the airline and service industry is bright, coupled with the projections for Terminal 5 as a strategy to improve on overall customer satisfaction and experience. BA is constantly forming dynamic and flexible strategic and operational approaches, to remain competitive in the increasingly challenging business environment.
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