Mike Steverson 2-5-2012
British Airways Case Study:
I. Problem(s) you identified from the case
a. Two things really, inefficiency and lack of motivation. They had power split up amongst all these separate airlines who were all competing to be the best part of British Airways instead of working together to achieve one powerful company. The recession and economy at some points made it hard to stay motivated and made people frantic and even more competitive within the company because of the threat of losing their jobs. They had way to many employees, outdated operation systems and lost all sense of efficiency. They had poor productivity and horrible customer service. They lost ...view middle of the document...
Structural - BA’s best move was when Conservative Prime Minister Margaret Thatcher appointed John King in 1981 to be the Chairman of British Airways. Under the management of John King, he imposed changes including closing several routes as well as selling off the cargo service and planes. The company also had to lay off 20,000 staff.
In 1982, Colin Marshall became the Chief Executive Officer of British Airways. BA was generating its first surplus, which is the effect of the cost-cutting activities put in place by John King. This was when Marshall realized that the organization needed to pay attention to their customer service. In addition, the organizational structure of British Airways was streamlined into five sections of the industry that are directly reporting to the CEO and eleven profit centers were created. This structural alternation aims to enhance the staff integration and communication, within BA.
b. Psychosocial - The main objective of the changes were to make the company survive in the marketplace and become competitive in the airline industry. The changes had helped the industry to become more customer-oriented by providing quality and excellent services. Through these changes, the company has also been able to improve the relationship of the employees as well as the employee-customer relations. The time-consuming and expensive investments as part of the changes also...