British Airways: Major Management Changes

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hese problems and conflicts had a negative effect on the new company. British Airways has been considered as the most notorious company because of its poor service. Furthermore, the company’s operation has been affected and in 1980 the company had been regarded to have the worst punctuality record all over European carriers flying from UK and voted as the airline to avoid. This also results in substantial loss of the company.

In order to change its reputation of being an industry with poor services, British Airways had considered major management changes. Known as change management, companies, businesses and working organisations are integrating change into their work system so as to be competitive and be more efficient in satisfying clients or customer needs. According to Carlopio (1998) change may be referred as the implementation of an innovation, in which the vital role is to improve output through an adaptation of practices. Realizing the value of changing the management system of British Airways to become competitive, the 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 the closure of several routes as well as selling off the cargo service and planes. The company also lay off 20,000 staff as part of the change.

In 1982, Colin Marshall became the Chief Executive Officer of British Airways. During this period, BA was generating its first surplus which is the effect of the cost-cutting activities imposed by John King. This was the time when Marshall had also realized that the organization needs to pay attention on it customer service so as to ensure that the industry will continue to earn profit. In order to initiate such change, Marshall hired Consultants to gather data about staff and customer attitudes. The result of such evaluation shows that there is a significant gap between what the staff is providing and what the...
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