Managing Change Project of British Airways

This report contains the idea of organizational change. This change is wide and not smaller changes like adding a new person, structural change and management processes, innovation of new products new techniques and merges (cross border or etc). Change is caused to achieve a goal.

Background of British Airways:

The largest international scheduled airline of UK in British airways it was introduced on 25 August, 1919. Aircraft Transport and Travel limited (AT&T) is the forerunner company of British Airways. Aircraft Transport and Travel limited introduced the world’s first daily international, scheduled or service between London and Paris. That flight was operated by a single engine de Havilland DH4A biplane. It took off from Hounslow Health which is near to success or company’s current Health row base. This flight took off with single passenger and cargo including newspapers, Devonshire cream and grouse.

Changes in British Airways:

The top and head management of BA caused a big change in 2005.

BA was awarded SKYTRAX and OAG airline of the year 2006 & 2007.

BA gained the Western Europe Award 2007to be the best airline.

BA also bagged best Trans Atlantic Airline Award in 2007.

The management BA proclaimed changes and established Health row Terminal – 5 for the use of BA mainly. The cost of its foundation is 403 billion pound. Queen Elizabeth inaugurated it officially on 14-03-2008. The passengers started to use the facility from 27-03-2008.

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Problems:

Staffs are deprived of car parking facility. Space has become very short. People have to line up for a long for security check works are delayed. Baggage Handling system does not function well. Belts that are used to carry bags are clogged.

Levels of British Airways change:

British Airways had a revolutionary change. It was planned a dominating strategy.

Characteristics:

The change in the BA redefined existing parameters. There is a change in organization structure and technology of BA.

Objectives of change:

Changes are occurred to encourage the individuals to think and crate something new. To make a competitive attitude in them to face the global economic and market environment, these changes are required.

The passengers are provided with good services by this change.

BA has changed the internal and external culture of the organization.

BA has introduced providing continental food to the passengers increased sales.

To survive in the market they started new technology and packages.

BA wants to recruit individuals who have thorough knowledge of managerial and technological skills that can create a great impact on their personality and character.

To increase unit production, individuals are encouraged to be a leader to take responsibility efficiently.

The change has been occurred to cause a paradigm shift by creating a dynamic and positive learning atmosphere and changing our corporate culture.

The change helps BA to adjust with knowledge based economy.

To make the staff “Knowledge workers” they are provided with basic conceptual training and latest managerial concepts skills. Changes help them to take the challenges of modern business.

The purpose of BA training MBA programmed is to develop an individual by applying the training thoroughly.

P2. Organizational Structure of British airways

The function of British Airways is centralized. The policy and strategy of BA are made by the group of chair man and board directories. They also bring about changes in the organization.

Chief Executive

Willie Walsh

Customer and Operations Executive Julia Simpson

Reporting to the Chief Executive Roger Maynard

Management Board Silla Maizey

Source: www.britishairways.org

The above mentioned people are involved in planning strategies and responsible to carry the policies into effect in the organization and begin the new development in aviation industry (new air buses, bringing new ideas, downsizing in a large scale etc) in British airways in this competitive and challenging atmosphere BA is taking internal and external challenges by which it occupied the headlines of Britain Media.

Strength of Beauracratic organization at British Airways:

The upper level of the management has full control over the firm and hence led to better monitoring procedure.

The decision is taken by the wise people of the company.

With the better decision of the organization the growth is properly directed.

Weakness of Beauracratic organization at British Airways:

The primary disadvantage of this organization is that it lacks innovation within the organization as the subordinates are not taking part in the decision making procedure.

Due to less involvement in the participation procedure the employment gets de motivated and hence less productive within the system

Hr cannot utilize the creativity of the systems employees and hence less improvement in the growth of the employee

P3. Alternative forms of Organizational development

Mechanistic Organization:

The structure of the organization is strong and checked tightly

The atmosphere is highly specialized

Rigid departmentalization

Narrow periods of control

High formalization

Limited information network

Advantages:

Mechanistic organizational structures make the complex and tough tasks easy in complex environment. Every employee is trained for a particular task that is why his contribution to the company’s output is not huge. The senior level managers are giving importance on developing technical processes to decide the way of performing the tasks. New stone cutters Bridge construction or daily operations at MTR can be mentioned as example.

Disadvantages:

Being rigid and static Mechanistic Organizational Structure often creates obstruction in the change in environmental situations and slows the advancement, of the company. This structure does not cope with highly competitive markets like telecommunication market segment. Mechanistic structure does not function with the highly skilled professional’s workforce.

Organic Organization:

This structure is highly flexible and changeable

Non standardized jobs

The structure is based on fluid team

The supervision of this structure is direct but little

The rules of this structure is minimal and formal

This structure has an open communication network

Advantages:

Organic management structure is suitable at the time when the work environment is very uncertain and unstable there is a lot of swift changing situations in market conditions. It is also suitable to the enabled and empowered workforce to make decisions for solving problems. An example would be professional consulting forms.

Disadvantages:

Organic structure cannot adjust with the critical situation of Organization. It cannot work in large firm. This structure fails to help the company when an effective implementation strategy is dependent on the ability of managers to have an advice in decision making process.

Transferring the structure into Decentralized:

From Centralized To Decentralized Form

Function driven Purpose driven

Closed Open

Parts Whole

Top down hierarchical Local focus

Controlled Empowered

Corporate Boundary less Centralized Distributed/ Networked

Departmentalized Connected

Sameness Diversity

Stability Growth/ Change

P4. Reason of change at British Airways

The chairman and board of direction of the British Airways are trying to downsize in the organization to develop the organization future and reputation and fame against its competitors. Though for the last few decades they had enviable place in the market but in the recent years they occupy 15 percent of the market of high competition with other international airlines. So they should bring about a huge and meaningful change in British Airways the main focus to change variable are followed:-

Reduction in cabin crew

Internal and External change

Financial losses

Drop in profit

Increased competition

Loss of Market Share

Technological development

Cultural change

Factors Forcing change:

British Airways are being pressurized over the last few years both internally and externally. So the group of chairman and Board of director have decided to bring some chapters like®

BA commenced a new dimension in lieu of standing still; a new corporate identity was introduced, heralding an E6 billion development program and new strategic direction.

Change internal and external culture

Cost must be cut down

Technology should be changed (new interior design, Wi-Fi, comfortable seats)

Increased competition

Changing market

Inner Factors forcing change:

A formal research can identify the internal factors that force to create a change in organization.

Strength:

To get over the difficulties the Organization requires strength which helps to take position in the co0mpetitve market at the time of changing the focus of the company.

Weakness:

The technological and cultural change can resolve weakness. If there is a weakness in Company’s product service, Company should change it as in automobile industry. The weakness in Organization Motivates to change.

Threats:

A company generally faces two kinds of threats like threats from competitors and alternative product which compel a company to react.

External Forcing change:

The external factors that create change in an organization are:

Economic:

If an economic crisis is created all over the world it will force to cut down the cost of business travel. Fluctuation in oil prices affected consumer spending for 13 years in the age of more acute competition market and BA, for continuing the long term business reduced capacity slightly during zoos on a recession plan.

Political:

Sufficient security measures must be taken by BAS to attract passenger’s confidence and trust because of the threats of miscreants in the past.

Social:

Elder generations have a lot of time to spend on international travel. So a change in cultural stage is necessary for potential opportunity for growth.

Environmental/Air quality:

The improving air quality and noise impact on local communities around the airport are significant issues (implementation of climate changing bill)

Resistance against change:

British Airways was obstructed by union, Government department of labour and development, local and Environmental NGO who gave the high pressure. Union was displeased with down rising decision of company. Union called for a strike. Many people are unaware of the importance of change. Often there are disagreeing goals in the company. Costs should be reduced to increase resources and to achieve change. Organizational change often creates an adverse situation in case of how the members want to do anything. So literature discusses most of the organizational change.

P5. Evaluation of change management at British airways:-

Types of changes:

Engineering, design, structure, new aircraft and new technology equipment are the types of issues that are to be changed.

Change in Technology:

Technological changes are required in the company to improve both attributes of organic and mechanic conditions to acquire creativeness and effectiveness.

Two kinds of planning are:-

Task planning:

The requirement of organization can be met by suitable premises.

Layout planning:

An organization should consider their workplace, equipment, workflow, staff, process as well as health and safety requirement in regard to competition.

Being one of greatest airlines of world British Airways target to be an undisputed leader of travel world and it enjoys their growth from the year 2002. They recorded 8340 million euro beside of a very little 110 million loss. They provide proper environment to ensure their position in the airline industry. They concede 360 aircrafts which travel 270 destinations of 97 countries.

In the way to their rises they also experienced lots of obstacle during their growth. Political conflict among countries was the major threats for them. After 9/11 many people turn down their plan for travel in team for lives & regularly. Thus the demand for their service decline & they face eco nominal crisis. Though it is big concern but cannot put down it.

Due to recession in the industry, many of the organization choose for bankruptcy an employee cut off along with downsizing. But British airways choose to cut down expenses cutting down workforce. They cut down almost 73000 jobs averaging 23% between august 2001 & March 2004. The industry sells the effects of Iraqi war also in 2003.

During crisis, company seeks help of corporate to bring them out of dark. Thus they put the whole matter & their late depending upon the leader’s decision. Leaders have to pay huge role, to make them out of really threatening crisis. This asks a question mark of how they would treat their followers & the way they will follow. Thus finally it’s the matters of determination of leader who have to contribute to make business organization improve & led to the success.

P6. BPR model of Change management

Companies are using this model for the change management process for coping with the environmental changes

Develop business vision & process objectives: – Through a business vision with particular business objective like cost reduction BPR is driven. It also implies quality output improvement, reduction of time work life quality as well as empowerment & learning.

Identify processes to be: – By using high impact approach most firms focused on the major processes as well conflict with vision of business. Only small number of organization use Exhaustive approaches for identification at all processes of an organization & the use them in sequence of redesign urgency.

Understand & measurement of Existing process: – Measurement & understanding at existing processes is done by redesigning them. Problem must be understood to avoid repetition. In addition measurement needs accuracy for future development.

Identify IT Levels: – It involves them improving coordination & information network across functional ling units in larger scale. It allows in independence in task management. It can also develop process designing. So, it performs the role of redesign at early stage.

Design & Build a prototype of the new process:- At the end of the ongoing process the actual design cannot be found. It shows prototype view with gradual expectation management. The important factors to reconcile prototype generation & process design by using it as a tool of design. Understanding & creating design criteria is important.

Through agreement between stakeholder & owner the prototypes of process is changed as well as initiative for organizational redesign is taken. Implementation of it is done in pilot basis, will regular examination of problems & achievement of objective. Modification is important. It the approach get acceptance from all then it came in to implementation.

The current state & future of Reengineering:-

By the year 1990; many concern adopt for reengineering. Around 30 billion US$ was spent for reengineering of American business firm within 1995 and 1996. It has opened a wide range of results, some of the used get large cost reduction, greater profit & throughout benefit. In many cases IT plays the most important role, in redesign of process. With lots of innovative steps of IT application make huge difference in redesigning.

P7. Implementation procedure of Change management at British airways:

Strategy and Implementation of /technology change:

British airways management conducted a research about passengers to fulfill the international standard of facilities in Terminal 5 and reliability of seats and inside atmosphere of aircrafts before starting new aircraft and construction of terminal5. If the new staff is trained success can be attained quickly. Significant environment can be improved by replacing Airbuses. Planning creates controversy in starting new technology policy. The created problem should be identified and purpose must be transparent.

Other Plans for implementation

Education: the employee must educate properly in order to cope with the organizational changes that has occurred within British Airways to have a proper knowledge about the change management.

Chipping in: the employee must take part in the decision making and problem solving procedure at British Airways

Stake holder’s involvement: The stake holders should be provided with proper feedback about the management change that has taken place with British airways.

Communication: A transparent communication will led to better implementation procedure and this will facilitate proper negotiation procedure within the organization

Recommendation:

There are different processes of training programs which adopts new technology and help the company to attain success.

People can easily communicate with each other if the structure of the company is divided into several parts. To break the bureaucratic system power must be given away in hierarchy level. To create a change in the organization an experienced consultant can be applied. The company should get more feedback from its employees so that it can be able to understand the problem and take decision to resolve it. Employee should work altogether in team to manage the change.

Contingency Plan:-

Strong business rational with develop business plan & increasing of employee satisfaction is needed.

Proper & effective involvement of employee plays key role for change.

Vision & leadership: – Proper commitment from leaders & guidance from link manager help the change agenda to follow the organization.

Empowerment: – Employment of maximum eligible employee develops the productivity as well as progress.

Charging of working environment – involving culture & management of people develop performance of business also improve the quality of employee’s lives

Conclusion:

In short, I want to explain the way an organization uses to make effective changes in supporting local communities in the countries where British Airways functions effectively. The changes effectively impact on technology and also in increasing the performance of Airline. These changes can bring apart the improvement of new market culture. These changes can be applied to highlight areas where marketing strategy requires reappearing, especially in design range and distribution channels. British Airways supports more than 100 local communities as well as many smaller programmers held both in UK and in other countries.