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British Airways - Leadership and Change

Essay by   •  January 11, 2012  •  Case Study  •  322 Words (2 Pages)  •  2,866 Views

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British Airways - Leadership and Change

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Although the management change had been able to enhance the competitiveness of the British Airways, this does not mean that the company is free from any other problems and issues. As mentioned above, the management imposed a more comprehensive human resources management through its Staff Development Initiative, however, not all employees had been able to meet the objective of such initiative. Hence, the problem encountered by BA during and after the management change is with regards to some of the employees.

The problems were attributed to the behavior of some of the employees which causes internal problems to the operation of the industry. Another problem is the libel case of King and Marshall by Richard Branson in 1993. This issue gain negative effect for the company. In edition, the initiative in terms of customer relations also faced problems by 1997 as far as employee relations is concerned. The problem lies on the inability of the management to foresee and predict some problems upon the change management.

Internal problems in accordance with employee relation also arise when the company had included cost-cutting approach within the industry which Ayling called Business Efficiency Programme (BEP). This programme had resulted in cabin crew worries in terms of financial losses and triggered the employees to conduct strikes and rallies. In this event, 300 staff has joined in spite of the intimidation of the management including threats to block promotion or even of dismissal and/or being sued for damages. Another 1500 personnel participated in a mass sick-out which has an overall cost of BA £125 million. This problem was a result of the inability of the management to utilise strategic management system in terms of employee relations.

Another problem arise during the change process, this time because of the initiative of the management of the company to change the brand of British Airways from the familiar red and blue BA logo into a 50 new

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