Table of Content

Introduction………………………………………………………………………….01
Executive Summery…….………………………………………………………….02
Company Overview ……………………………………………………………….03
Sources and Limitations… ………….…………………………………………….04
HRM Activities ........................................................................................…...05
Justification…................................................................................................06
HRM Planning and Development ...........................................................…...08
Evaluation …………………………………………………………….…………….09
Human Resources Performance ………………………...................................10
Ways to Improve HR Performances........................................................…...12
References……................................…………………………………………….13

Introduction
Post Graduate Advance Professional Diploma in Management Studies at South-
Thames College is a professional course and it requires completing several units.
Human Resource Management is one of them. This subject is unit 6 and the title
of the course is “Human Resources Planning and Development”. The
requirement if this course is to produce a professionally formatted report of an
identified organization. The selected organization is British Airways and it is
selected by the tutor of HRM at South-Thames College. This professionally
formatted report is made for Willie Walse, who is the chief executive of the British
Airways. This report covers several activities of HRM in British Airways.

There are three main activities in this assignment. The assignment requires
identifying three HRM activities in an identified organization. In this assignment,
the identified organization is British Airways. After identifying three HRM activities
in British Airways (BA), a justification of how the objectives of these three HRM
activities achieved by effective management of HRM also take place. The
justification need to refer by at least two HRM models.

Another activity of this assignment is to identify three HRM planning and

development methods in BA. A critical evaluation is also taking place for the
effectiveness of these planning and development methods to meet the
organizational objectives.

The last part of this assignment is a review one. This part requires to critically
reviewing how HR performance is currently indicated and monitored in BA. It is
also requires a suggestion of improve the HR performance in BA.

Most of the information for this report takes from the case study provided by the
tutor.
 Executive Summery
British Airways is the UK’s largest international scheduled airline. It is flying to
over 550 destinations at suitable times, to the best located airports. It was
created a merger between BOAC and BEO in 1974. The world’s largest
passenger airlines British Airways is operating from one of the world’s busiest
airport the Heathrow. Although BA is the largest airlines company, it has faced
many difficulties over the years. In seventies, the company performances were
often disappointing. In 1980, BA has recorded significant loses. BA has
successfully overcome many difficulties. To overcome its difficulties and to
achieve its objectives BA has undertaken many changes.
The changes occur in its recruitment policies, training and development program.
Along with this performance evaluation and the impact of all taken activities has
take place too. It has changes its HRM activities in order to achieve its
objectives.
A professionally formatted report is made based on the activities BA has taken in
order to achieve its objectives. This is to Willie Walsh, the chief executive of BA.

There are three main activities in this report. The report shows and identification
of three HRM activities in BA and a justification of how the objectives of these
three HR activities achieved by effective management of HRM. The justification
refers by at least two HRM models.

The second activity is an identification of three HRM planning and development

methods in BA. A critical evaluation is also described. The evaluation is shows
the effectiveness of these planning and development methods to meet the
organizational objectives.

The last part of this report is a review one. This part shows a critical reviewing of
how HR performance is currently indicated and monitored in BA. It is also
describes a suggestion of improve the HR performance in BA.
All the activities are described based on the case study provided by the tutor.
 Company Overview
British Airways Plc is an international airline company, carrying more than 33
million passengers worldwide. The company is engaged in managing scheduled
passenger and cargo operations and other related services. The airline company
has two operating bases, namely, London’s two major airports - Heathrow and
Gatwick. BA was created a merger between BOAC and BEA in 1974. Since it
was created the company becomes one of the world’s largest international
passenger airlines, operating from one of the world’s busiest airport the
Heathrow. BA has also become one of the successful airlines.
But, the company has not always been quite successful. In seventies the
company performance has become disappointing. In 1980, BA has recorded
significant loses.
But BA has successfully overcome many difficulties by bringing significant
changes. It has made changes in its customer service polices. It has changes its
employee recruitment and their performance evaluation.
Now, BA has a unique customer service police and it is not easily been
duplicated.
 Sources and Limitations
Data Sources:
The case study which is provided by the tutor is the main sources of data for this
report. Internet research is also take place to find some important information.
Tutorial resources are also used for this report.

Limitations:
The report is based on the case study. And the information given in the case
study differs from the real fact. The case study does not show the real company
operation of BA.
BA is the world’s largest airline company and its HRM department is not so small
that it covers a short case study. These are the limitation for the report that is
primarily screened out.

Contribution of the Study:

The purpose of this report is to perform HRM activities which are the student
learn from Unit-6: Human Resources Planning and Development. The report is
on British Airways, which is the world’s largest passenger airline in the world. It
carries a great opportunity for the student to apply their knowledge on a famous
and repetitious company. The report evaluate, how much student learn and how
much they can apply their knowledge in practical situation.
 HRM Activities

The three HRM activities are as follows:

1. Human Resources Planning
2. Employee development program
3. Payment Package and Rewards

Human Resource Planning

British Airways wants to rearrange its customer service fully through rearranging
their customer service to achieve the business objectives. It decided that huge
effort would be launched in order to create an exceptional and unique customer
service. This unique service is not easily copied. BA has decided to recruit
enough employees to enhance their customer service. BA wants to fulfill every
aspect of customer service and wants to be number one customer service
industry in the world.

Employee Development Program

After rearranging their customer service BA has decided to take employee
development program. BA wants to improve their employee skills and knowledge.
In this way employee are able to cope with the situation better than earlier.
Employees can able to prepare them for a higher level of job with increased
responsibilities. The management of BA wants to improve their concept of
employee development program. So, they had decided to invest a significant
amount of money in training and development program that will improve the
organization image. After taking a research, BA has found that the customers
satisfaction and dissatisfaction are depend on the friendly and unfriendly
behavior from employees.
So, BA has decided to take a employee development program that would make
the company a total change of employee behavior and attitude across the
organization. For the new and old employee BA has taken several employee
development program.
Payment Package and Rewards:
To get full employee support and increase customer satisfaction in the highest
level, BA tries to make employee satisfaction program through giving employees
payment package and rewards. They decided to move individually and both
internal and external benefits. They will give standardize pay and individual
performance pay.
The main part of salaried staff earnings is based upon pay rates which are
generated by a job evaluation grading system.
A companywide performance related bonus scheme paid to all employees and
there have been offers of free and discount shares.
BA introduced an opportunity for all employees to purchase tax free shares
through a trust using company performance bonus.

Justification:
According to the first statement of HRM concept model “the Matching Model” by
the Michigan School, “This held that the HR systems and the organization
structure should be managed in a way that is congruent (similar) with
organizational strategy.”
British Airline appointed more staff, provide training to new and existing staff for
enhancing their excellent customer service which is the main objectives of them.
British Airlines also increase payment package and rewards. They also explained
there is a human resource cycle that consists of four generic processes
selection, appraisal, rewards and development. So, British Airlines fully reflects
the Matching Models of HRM activities.

It is said in Harvard Model, Company consider as people as an assets rather

than variable cost. Harvard also suggests Line managers accept more
responsibility for ensuring the alignment of competitive strategy and HR policies.
According to BA customer service is their main competitive edge, and their most
variable assets are staff, they are provided customer service to the customer.
Customer satisfaction will gain if the staffs can perform the correct behaviour and
accepted service.
To improve the level of customer service, BA wants to make their line staff more
efficient by providing more and more training and development program.
BA makes their line staff more caring, friendly and knowledgeable that satisfies
the customer needs on time.
These programs will increase high quality of customer service as because they
make employee more productive and efficient.
Employees are more loyal to the company for these types of development and
training program. They are satisfied to BA for their payment package and
rewards. This is the main objectives of soft HRM. According to the soft HRM,
”Used to describe approaches aimed at enhancing the commitment, quality and
flexibility of employees”.
 HRM Planning and Development

The planning and development program are as follows:

1. Recruitment Program
2. Training Program
3. Development Program

Recruitment Program:

British Airlines wants to recruit based on analytical skills and intellectual capacity
rather than management experience in this service industry. Most of the
managers joined from Royal Air Force and they recruit the suitable person for the
suitable position.

Training Program
British Airlines will take several training programs. These training programs would
enable a total change in values and attitudes across the organization, particularly
for staff that was exposed to customer contact.
The training programs are as follows:
British Airlines will take “Customer First Campaign” that has instigated a number
of companywide training programmes.
Another training program is “Putting People First” program. This program was a
two days programme. It was aimed to almost 20,000 staff. The staffs had
significant customer focus.
The one week residential program is “Managing People first” training program.
The programme was specifically designed to breakdown the bureaucracy. The
bureaucracy had developed underlying values of order, rationality, dependability
and system control.
Development Program:

British Airlines has made a substantial investment in employee development. It

has established a number of training and development programs. In order to
satisfy its objectives British Airlines encouraged individual learning by providing
wide employee access to two major learning programs.
The first program is based upon principles of open learning, and can eventually
lead to MBA program. It provides a number of progressive stages and
qualification. The awarding body of this MBA program is the University of Bath.
Another program in ‘Top Flight’ program, that is provides a series of ‘Academies’
which are a number of development steps. This is designed to allow an individual
to progress to an executive position.

Evaluation:
The main objective of British Airways is, “To be the best and most successful
airline in the world.” To fulfil this objective British Airlines make huge investment
on Human Resources. British Airlines recruits highly skill and intellectual people
and replaces them with more helpful and supportive ones.
Different training will provide on the basis of their skill. British Airlines developed
their employees more customer friendly, efficient and knowledgeable. British
Airlines pays standardize salary and individual performance payment. It knows
that if employees are satisfied they will provide their best effort for the success of
the company. All employees think that they are part of the organization.
Finally, it means that through the training and development program and
employee satisfaction programme staff provides the highly quality customer
service and would be more committed to the company.
 Human Resources Performances

British Airlines was created by merger between BOAC and BEA in 1974. From
the creation it has become the world largest international passenger airline,
operating from one of the world’s busiest airport Heathrow. Although BA has
become one of the world’s successful airline businesses, the company has not
always been quite so successful. In 1980 BA recorded significant losses. Since
then the company undertake a program of radical change. BA redesigns and
restructure of Human Resource.
They make huge investment on HR planning and HR performance. They setup
so many training and development program for line staffs and managers. It is
hard to say how much impact the program has had.
British Airline believes that this programme has been successful, that a
significant cultural change has been achieved at all levels of the organization,
and that this cultural change has made a significant contribution to the steady
improvement in the business performance.
A extensive market research shown that customer have develop more positive
attitudes towards service that they now receive as compared with the
predominance of negative attitudes that were recorded in similar surveys
conducted earlier in the 1990’s.
These satisfied customers must have been an important factor in support of BA‘s
performance improve. So it’s easily identified that with this HR planning and
development, BA increase their HR performance that lead to the improve
organization’s performance.
On the other hand BA employees also now more happy with payment and
rewards. They are getting opportunities to learn through different training and
qualification of MBA degree awarded by University of Bath after competition of
management training.
They are getting basic pay as well as individual performance pay and also
scheme that benefited them more than the before.
Through the trade union employees can participate on organization strategic
decision. They can raise their voice against any critical issues of the company.
So employees are now more than happy.

Employees turnover are less now than the before .Employee are satisfied with
their job description, responsibilities and working environment. Employees’
absenteeism is also reduced. They are now highly committed to the company
success.
 Ways to Improve HR performances
It the most difficult task to suggest British Airways as they are the most
successful airline company in the world. They are already taken most of the ways
to improve their performance and become the number one airlines company.
Although some ways may improve their performance and increase their
productivity more:

Larger HRM department:

British Airlines have more than 40,000 employees but they have a small HRM
strategy and planning department with some specialist people in the UK. If they
increase their people and they spread the whole world they will successful more.
By this different cultural people can get same service from their own people.
They can easily serve and fulfill customer demand.
Recruitment Strategy:
The recruitment strategy may be changed to recruit more talented people. The
recruitment team can go college and university and recruit more talented
students.
Technology Program:
British can provide more technological program such as, computer technology
program, personal development program, customer dealing program, etc.
 Reference:

1. South-Thames College. (2010). British Airways case study. In:

South-Thames College British Airways case study. London,
United Kingdom: South-Thames College. 01/08/2010.
2. Ian Bearrdwell &Len Holden (1994). Human Resource
Management A contemporary perspective. 3rd ed. london:
Pitman Publishing. 95-100.
3. British Airways. (2007). History and heritage. Available:
http://www.britishairways.com/travel/history-and-
heritage/public/en_gb . Last accessed 20/06/2010
4. Wikipedia. (2005). British Airways. Available:
http://en.wikipedia.org/wiki/British_Airways . Last accessed
25/06/2010.
5. British Airways. (2009). British Airways PLC (BAY.L) .Available: #
HYPERLINK
"http://uk.reuters.com/business/quotes/companyProfile?
symbol=BAY.L"
http://uk.reuters.com/business/quotes/companyProfile?
symbol=BAY.L . Last accessed 20/06/2010
6. British Airways . (2009). British Airways Plc Financial and
Strategic Analysis Review . Available:
http://www.bharatbook.com/detail.asp?id=89964&rt=British-
Airways-Plc-Financial-and-Strategic-Analysis-Review.html . Last
accessed 30/06/2010.
7. Britishairways. (2008). British Airways. Available:
http://www.britishairways.com/travel/home/public/en_gb .
Last accessed 15/06/2010.