it is necessary for management to understand the different needs of different people, to align the organizational goals with the employee’s goal, to achieve productive and improved outcome. To know and understand the different background of the employees is vital as it helps managers to determine the need of employees belonging to different cultures. And, it is observed that one group of culture prefer intrinsic awards and another group of culture prefer extrinsic award. HR has promoted the diversity at British Airways and through its management techniques, high commitment resulted (Upchurch, 2010, p.2). By promoting diversity, employees will understand their employers and can make environment, a comfortable working environment.
2.2.4. Employment
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Impact of the Merger on SHRM at British Airways
In Airline industry, airline companies prefer mergers and acquisitions to generate profits. Airline merges with those companies internationally, which holds less labour cost to cut the overall cost. A merger between BA and Iberia took place in 2011. BA acquired a 13% of stake in Iberia in 1998 and BA made first bid for Iberia in 2007. Iberia was a wingman for BA. This merger objective was to reduce the labour cost. This merger affected SHRM at BA (Morrell, 2010). BA shareholders get 55% of the new company and Iberia shareholders get 45%.
UK and Spain have different cultural background, which is a biggest problem for HRM as employees of different countries possesses different belief, values, thoughts and cultural aspects. SHRM at BA had to make strategies for promoting the diversity. Employee received training to fit in a new business model and environment. HR faced difficulties in formulating HR strategies because employee of both the companies has different business approach. In UK, organizations are flat and managers-employees can directly talk to each other, whereas, in Spain, organizations follow hierarchical structure, and managers-employees have distance (Communicaid Group Ltd, 2011). Moreover while giving feedback, BA indirectly communicates with their employees and they use “may be” word while giving a feedback. On the other hand, Iberia uses direct communication style for giving feedback and clearly tells employees
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While, allocating job responsibilities, monochromic and polychromic are the focal points. Spanish are polychromic that means they can do many task at a time whereas UK people are monochromic and can do only one task at a time. In this situation job timing, job description and job responsibility differs. Furthermore, a biggest issue that has been observed after merger of BA is the split of HR technologies and HR department feels difficulty in taking decisions regarding which employee should stay, fired, promoted, or demoted (British Airways,
Diversity in the organization can affect the employees and their behavior in many ways. The effect can be positive and negative in the same time. The positive effect is, it will wider employee knowledge, skills, and attitude which will allow the organization to become more competitive globally. Higher diversity of employees mean higher diversity of knowledge, skills and abilities. Sharing experience inspires innovative thinking (Claudia Quaiser-Pohls, 2013, p. 41). Today in the modern workplace, most organizations will have
It is very important for leaders and managers to embrace a diverse workforce. Because diversity could possibly add influence to the market share, and could widen the talent in the recruitment process for the organization. In addition, the organizations could benefit from the various perspectives and experiences; for example, different races, gender, and age groups within the workforce. However, a diverse workforce might also be challenging; for instance, leaders and managers may spend too much time in promoting
Many factors contribute to a diverse workforce this maximises the potential of all employees, which benefits the organisation reaching its goals both internally and externally.
Employees who perceive an organization as having a more supportive diversity climate are likely to be emotionally attached to the company that may lead to greater dedication to their jobs. A supportive diversity climate indicates that all employees have equal prospects to thrive that lighten tensions among employees from diverse background, enhance morale and promote work motivation, all of which increase employees’ willingness to willingly involve in assignments outside job requirements. Employees who feel valued and included irrespective of their demographic characteristics identify strongly with their organization and are more satisfied with their job that increases their enthusiasm to contribute beyond job duty (Chung, Liao, Jackson, Subramony, Colakoglu, & Jiang,
Diversity today is seen not only as the aftermath of the globalization process but also as the driving force of progress and an integral part of success of modern organizations. Ethnic, racial, gender, and religious diversity makes each one of us a unique citizen of this globalized world. An organization that brings together employees with such different backgrounds, benefits from the vibrancy of thoughts and varied viewpoints, brought to the company by multiple cultures and unique experiences of its employees. Distinctive capabilities of such workers and their individual skill sets and talents allow them to come up with creative solutions, new ideas and proposals, which increase efficiency of a team. While working together employees of such
As companies are becoming more and more diverse it 's becoming more and more important for companies to understand and manage it. The people of different background, races, religion creates diverse workforce. There is an importance of having diverse workforce to provide better performance. There are perspectives of managing the diverse workforce, which require organization leaders and managers of being responsible of attaining better diverse workforce.
According to Ely and Thomas , diversity perspective is use as tool to mediate the relationship between diversity and performance. Diversity perspectives serve as a guide for people’s efforts to create and respond to cultural diversity in work group. It also includes normative beliefs about the value of cultural identity at work. Diversity perspectives assist with the impact on cultural difference have on work. Ely and Thomas (1996) had identify three diversity perspectives which are discrimination and fairness which involved the recruitment and retention of employees from protected groups. Another diversity perspectives is access and legitimacy perspectives which challenges the notions to some degree. Organizations that adopt
The general line of reasoning is that if we learn to incorporate each other’s diverse traits and characteristics in the workplace, we can then use these differences to foster an innovative environment, which will give the company a competitive advantage over the competitors that do not accept workforce diversity. According to the Allied Academies International Conference, “Diversity is rapidly becoming a common practice among companies due to the increasing number of minorities entering the job market today. As these groups become more prevalent throughout companies, upper-level employees are facing numerous challenges when determining what changes must take place to create a positive working environment for everyone. Management is responsible for the development and implementation of effective policies directly relating to diversity to ensure the acceptance of minorities into the workplace and to aid in minorities’ success through equal opportunities and treatment.” (Marcia L. James, 2001, Academy for Studies in International Business Proceedings)
The merger between American Airlines and U.S. Airways is one that can be explained using static game theory models. The two players in the game would be American Airlines and U.S. Airways. Each one of the players would have something to gain from the merger, but they would also have something to lose. In this game American Airlines is our first player. American Airlines’ potential payoff is merging with a company that is maximizing profits, but is also lacking in the customer service department. U.S. Airways is player two, and in this game they are merging with a business that is suffering from chapter 11 bankruptcy, but is excelling in customer service.
In today’s society there are many culturally diverse people in the workforce. Most organizations can no longer make the assumption that every employee has similar beliefs or expectations. When entering into the global marketplace, people are considered one of the most valuable resources to an organization’s success. A well-managed culturally diverse workforce has the potential to thrive if managed correctly; or if mismanaged, there can be devastating negative attributes. With great expectations, culturally diverse employees can foster positive outcomes in the workplace. A company’s acknowledgement to embrace diversity and change, and implement the value of management techniques are
Managing HR in MNC is different from the way the HR is being managed in the country, According to Morgan (1986) there are three factors that differentiate between IHRM and domestic HR: First, the countries of operations such as the -country where a subsidiary may be located, the host-country where the subsidiaries are located, and other countries. Second, the different types of employee, in international environment the HR management have to deal with the host-country nationals (HCNs), expatriates or home-country nationals (PCNs) and third country nationals (TCNs), for example if L’Oreal hired an Indonesian employee in their Indonesian subsidiary the employee is a HCNs, and when manager from L’Oreal Headquarter in France came to work in Indonesian subsidiary the manager is a PCNs, and if L’Oreal employs manager neither from Indonesia nor France to work in their Indonesian subsidiary the manager is TCNs. Third, is the way HR practices (eg. staffing, compensation, training, and etc) are conducted. Although IHR practices seems to have the same activities as domestic HR, in IHR the manager will be dealing with different environment and diversity of employees from different cultural background. Moreover, as mentioned earlier dissimilarities between domestic and international HR management mostly due to profound differences between host and home countries in term of culture,
From a personal analysis it seems that the merger is likely to be more strategic for both companies as Iberia is more dominant in South American destinations and British Airways flies to only three South American destinations. The key benefit of the merger to BA would be the access to South America. Similarly, Iberia will gain from BA’s more extensive North American operations, with the two carriers able to share information on fares, schedules and routes. They have identified Latin America as a growth market, one where BA is under-represented.
Table of ContentExecutive Summary1I. Introduction2II. Main Body1. History of British Airways22. Current strategic situation….42.1 Internal analysis42.2 External Analysis52.3 SWOT82.4. Current strategy93. Potential Strategic options124. Recommended strategic direction with rationale164.2 Strategy Evaluation175. Identification of critical success factors186. Performance measurement criteria197. Conclusion218. Bilbliography249. References24Executive SummaryThe main aim of this report is to undertake a review and analysis of British Airways. It is UK's leading airlines both at international and domestic level, with its operations spread over 300 destinations across the world. The report starts with a brief description of the company. Then the
High level of Productivity: Increasing productivity at the workplace has been one of the major challenges for managers and leaders and to the company in general. Due to the fact that every organization has its own unique company structure and objectives, different strategies may be used to challenge or address the company in order to increase productivity. One of those strategies involves adopting workplace diversity and managing it effectively. When management takes the welfare of its workers at heart by means of offering them proper compensation, health care and employee appraisal, it enables workers to feels they belong to the company irrespective of their cultural background by remaining loyal and hardworking which helps to increase the company’s productivity and
In response to the growing diversity in the workforce around the world, many companies have instituted specific policies and programs to enhance recruitment, inclusion, promotion, and retention of employees who are different from the privileged echelons of society. The privileged groups may vary from one country to the next. The workforce of the world is a dynamic environment, and in order for this dynamism to be put to use for the benefit of organizations, they must develop an effective strategy for managing diversity. Global Diversity Management refers to the voluntary organizational actions that are designed to create greater inclusion of employees from various backgrounds into the formal and informal organizational