Organizational Management at British Airways

Organizational Management at British Airways

Alongside with planning, staffing, directing and controlling, organizing is a major function of the managerial act. "Organizing is establishing the internal organizational structure of the organization. The focus is on division, coordination, and control of tasks and the flow of information within the organization. It is in this function that managers distribute authority to job holders" (Higgins, 1994). A major trend in organizing companies is that of increasing the efficiency of the business operations at numerous levels, such the technologies, the assets, the financials, the knowledge or the human resource possessed by the organization. To better understand how organizing is applied to numerous business components in order to increase efficiency and effectiveness, one should look at a clear example of organizational management and development.

British Airways is a UK-based company activating in the airline industry and operating throughout the world. Given that it operates on such a changing and demanding industry, the company has, on numerous occasions, been faced with the need to modify and improve their business components. The need to implement numerous changes was mostly generated by external forces. The most relevant of these are accounted by theoretical changes in the managerial approach, meaning that the company is to place more emphasis on satisfying the customers' needs and also increasing the staff's satisfaction on the job. Other factors were generated by major technological developments which had to be incorporated. In addition, the new strategies implemented by the competition forced British Airlines to adjust to the market requirements and further develop. Then, there were the tragic events of 9/11 in the United States, which severely impacted the airline industry and reduced the population's trust in airplanes. All these, along with other forces as well, have determined the management at British Airlines to place more emphasis on the organizational process.

Organizing the Human Resource

In 2007, British Airlines employed an estimated 48,070 individuals (British Airways 2007 Annual Report). The large number of employees requires the implementation of a wide series of human resource strategies that coordinate, supervise and increase the performances of the staff. The company understands the pivotal role played by the corporate employees and sees them as the path to reaching organizational success. This understanding is made clear by former British Airways chairman Sir Colin Marsha, who in an interview for the Financial Times stated: "In an industry like ours, where there are no production lines, people are our most important asset and everything depends on how they work as part of a team. This means that, to get the best results, managers have to care about how they (the employees) live and function, not just about how they work and produce" (Boyd, 2003).

As a consequence of the major role played by the human resource, it came only natural for the management at British Airways that they had to introduce a multitude of strategies that increase the efficiency of the personnel. This increased efficiency meant that the staff had to increase the quality of their work and reduce the time they needed, all to register superior results. And to motivate the staff and orient them in this direction, the managers offered them a wide array of incentives.

First of all, the employees at British Airways are offered wages higher that the industry average in order to motivate and increase their loyalty to the corporation. Then, the employees are offered extended benefits, in the meaning that the employee and his immediate family (spouse and children) can equally benefit from medical coverage. Also, numerous measures have been taken in order to ensure the safety of the crew. British Airways takes care of the retirement of their employees by developing numerous retirement and financial plans. The airline company also stimulates their staff by offering them specialized training which also adds more value to the organization. Then, the employees are offered specialized assistance in resolving their personal problems and also consultancy and legal aid with problems such as divorce or adoption (British Airways 2007 Annual Report). And a final and most important procedure is that of integrating the employees into the British Airways corporate culture and aligning their individual goals with the overall goal of the organization.

The strategies implemented to better organize and increase the efficiency of the human resource have managed to retrieve the desired outcome. And proof of this stand the reduced number of employees, in the international context of increased profits, flights and satisfied customers.

Organizing the Physical Assets

British Airways belies that it is not the large number of physical assets that give its profits, but the efficiency in using the aircrafts. In this order of ideas, the international corporation has increased its efforts to reducing its fleet and increasing the flights. They base this strategy on the belief that newer and technologically superior aircrafts are more effective and efficient that older airplanes. In addition, newer and reduced fleet is also better received by the general population, moreover when it addresses various environmental concerns relative to oil consumption and polluting waste.

In 2007, "increased aircraft utilization and network restructuring has allowed the Group to reduce its mainline fleet. In the financial year 2007 the number of mainline aircraft in service has reduced by one, with the retirement of an Airbus 320. Reductions in the BA Connect fleet, followed by the subsequent sale of the business, reduced the total fleet by 42 aircraft to 242 at March 31, 2007. The Groups' fleet strategy is to support profitable growth and to renew the oldest aircraft in the fleet with newer, more efficient and environment friendly aircraft" (British Airways 2007 Annual Report).