The purpose of this “informal report” is to address the following tasks:
To identify and analyse the challenges experienced by British Airways in their negotiations with Unite. In addition, to make recommendations as to how organisational change may be applied to enable sustainable development within an organisation. It seems reasonable to assume that BA should be used as an illustrative case example, and as such it will be used in an applied context of change within this report. We will attempt to show recommended models for change management, as implied in the second part of the tasks of this assignment, and apply them to the situation faced by BA in the years of dispute to the present circumstances. This application of models to BA, will then allow us to contextualise the organisational change, and to evaluate key elements in our analysis of the BA case, whilst synthesising data and information from a variety of sources, and theories related to HRM and change. These are woven into the historical narrative of the BA case, that we created in the report, in an action oriented approach (Herr 2014) to the “telling” and “analysis” of the BA “story”.
Table of Contents
1. Purpose
2. Introduction
3. Turbulence with Cabin Crews
4. Fast Forward
5. Improvements
6. Culture Change (Shared Values)
7. Other Factors Contributing to Success
8. Conclusion
9. Recommendations
10. Bibliography
Objectives and Thematic Focus
This report examines the transformation of British Airways (BA) following significant labor disputes, analyzing how organizational change models, particularly those by Kurt Lewin, can facilitate sustainable development and recovery after periods of industrial conflict.
- Analysis of labor negotiations and challenges with the Unite union.
- Application of change management models, specifically forcefield analysis, to address industrial conflict.
- Evaluation of organizational restructuring and cultural shifts post-2011.
- Review of key performance indicators (KPIs) in measuring successful corporate transformation.
- Examination of the role of outsourcing and strategic management in improving operational efficiency.
Extract from the Book
Turbulence with Cabin Crews:
From 2009 - 2011, cabin crews were in deep dispute with BA management over pay, contractual changes to overtime rates and other key areas of working practices and incentives. The nub of the dispute revolved around flexibility. As one worker expressed in the following way:
I’ve worked for BA for 13 years and I’ve never known it to be like this, the way management treat us the whole time. They want a totally flexible roster so if you pack for a Hong Kong trip when you arrive you’re told you’re going to New York. What about childcare or tickets you’ve booked to get home after a trip? (Cited in Weaver and Gabbatt 2010)
Such comments also indicate the possible reason for the vehemence in which cabin crew have fought for the reinstatement of travel “concessions” withdrawn by BA from March (2010) strikers. While presented as a “travel perk” by the company and many of the press, it is the mode of commuting for around a quarter of BA staff. (Tuckman 2010)
What seemed to come out at the time, was a culture of bullying and numerous attempts to undermine union organization at the airline, with a view breaking the will of the strikers. The occasional conciliatory overture came from management with the ulterior motive to weaken resolve and depress labour prices. BA announced losses due to the strike, yet it maintained reserves of £2 billion to keep it going through the protracted negotiations now taking place with UNITE members (Arnott 2010). As UNITE declared another 20 days of strike action, Willie Walsh, the CEO of BA, announced:
I don’t think we’ve been brave enough in the past to stand up and say “No.” We’re absolutely determined at BA we are not going to do that this time.
We’re going to hold out for as long as it takes and we will continue to build up the amount of flying we’re doing. (Cited in Clark 2010)
Summary of Chapters
1. Purpose: Outlines the report’s objective to analyze the challenges during BA’s negotiations with Unite and provide recommendations for sustainable organizational change.
2. Introduction: Provides a historical overview of BA’s transformation, highlighting the shift from financial struggle and labor disputes to profitability.
3. Turbulence with Cabin Crews: Details the specific grievances regarding flexibility and the intense industrial conflict between 2009 and 2011.
4. Fast Forward: Summarizes the current financial state of BA, detailing its success as a listed airline and geographic revenue distribution.
5. Improvements: Explains how the company implemented systematic changes to contracts, rewards, and structure to foster cost efficiency.
6. Culture Change (Shared Values): Describes the implementation of KPIs and initiatives like 360-degree feedback to align staff with organizational values.
7. Other Factors Contributing to Success: Identifies external and operational factors, such as outsourcing and the IBERIA merger, that bolstered financial recovery.
8. Conclusion: Reflects on BA’s journey from a strike-ridden entity to a vibrant, adaptable organization.
9. Recommendations: Suggests the continued application of change management frameworks and cultural analysis to maintain future growth.
10. Bibliography: Lists the sources and references used to compile this report.
Keywords
British Airways, Change Management, Industrial Relations, Unite Union, Organizational Structure, Corporate Culture, Forcefield Analysis, Customer Satisfaction, KPI, Outsourcing, Transformation, Strategic Management, Labor Disputes, Employee Engagement, Sustainability
Frequently Asked Questions
What is the primary subject of this report?
The report focuses on the organizational change and transformation of British Airways (BA) following its turbulent labor dispute years between 2009 and 2011.
What are the core themes explored in this work?
The core themes include industrial relations, management strategies, organizational culture, performance measurement, and the impact of labor disputes on corporate profitability.
What is the main objective of the author?
The goal is to analyze the challenges BA faced during its negotiations with the Unite union and to demonstrate how management models can be applied to foster organizational recovery and development.
Which scientific model is used to analyze BA's case?
The report primarily uses Kurt Lewin’s Forcefield Analysis to understand the forces of change versus the forces of resistance, along with the McKinsey 7S framework.
What does the main body of the document cover?
The main body covers the history of the industrial strike, the management's response, the subsequent cultural shift, operational improvements, and the eventual financial turnaround of the company.
Which keywords define this document best?
Key terms include British Airways, Change Management, Industrial Relations, Organizational Culture, and Strategic Management.
How did BA manage to overcome the resistance to change?
BA overcame resistance by renegotiating employee contracts, improving pay and incentives, fostering a new culture of inclusiveness, and outsourcing non-essential services to concentrate on core competencies.
What role did the merger with IBERIA play?
The merger with IBERIA helped create the International Airlines Group (IAG), allowing for further harmonization of policies, pay, and services, contributing to the firm's overall stability.
How is the "Culture Change" measured at BA?
Culture change is measured through specific KPIs, including a Colleague Engagement index, customer recommendations via the "Think Customer" survey, and performance metrics like operating margins.
- Citar trabajo
- Huda Al-Dori (Autor), 2017, Managing Change. British Airways from Turbulent Times To Flying the Friendly Skies!, Múnich, GRIN Verlag, https://www.grin.com/document/375781
