Executive SummaryHuman resource is always one of the most vital resources for any of the company. The employees have to play a very vital role in development of any company. As such the employee relationship stands critical for the performance of a company. In the given case study, the significance of employee relationship is highlighted. There has been immense organizational change in British Airways (BA) which has further led to various changes in culture as well as employee relationship. This assignment endeavors to highlight the various issues pertaining to employee relationship which surfaced after privatization of BA.
It will critically analyze some of the specific issues. Moreover it will also try to predict the repercussions from the employee relationship point of view. IntroductionAfter the integration of BOAC and BEA which created British Airways, it had faced many concern and troubles. One of the major troubles encountered by BA was pertaining to employee relationship due to cultural change. The consequences of culture become specifically obvious in cross national operations, amalgamations, and takeovers, where not only different organizational cultures but also employee relationship. And this happened between the employees of the two integrating entities BOAC and BEA. This problem can be portrayed as clash of culture.
For an instance, the staffs of BOAC were depicted by BEA staff as detached, and definitely less equipped with the know how of the overly competitive airline sector. On the other hand, BOAC were snooty with the staff of BEA thinking that flights to the European mainland were for tradesmen while long haul air travel was for the province of the gentleman. The contradicting ideas and beliefs of each of the employee was one of the various cause of the problems encountered by British Airways after the merging.
Further problem or issue faced by British Airways is in terms of its forced management system. The British Airways put into practice a very hierarchical, nonflexible and inattentive with status differences which can be seen in their staff uniforms. The company is also having a problem because of its being rules-oriented. In addition, another problem that arises is the inability of the management of the new company to see and satisfy the needs of their customers. The company has given emphasis on its inward-looking management approach and concentrates on retaining its various routes which resulted on unsatisfied customers. These troubles and difference had a negative effect on the new company. British Airways has been considered as the most notorious company because of its poor service. Furthermore, the company’s operation has been affected and in 1980 the company had been regarded to have the worst punctuality record all over European carriers flying from UK and voted as the airline to avoid.
This also results in substantial loss of the company. After the changes, initial period started proving to be favorable. The company was able to make better brand identification among the customers. But taking a closer look it seems that these changes were supported by the external factors only. This is evident from the fact that as soon as the external factors started deteriorating against the company, the internal crisis started surfacing and revealed the state of complete chaos.