Change of Management in the British Airways

Pages: 6 (4164 words) Published: October 24, 2014
Change Management in British Airways Name Class Affiliation Instructor Date Table of Contents TOC o 1-3 h z u HYPERLINK l _Toc353214240 Introduction PAGEREF _Toc353214240 h 3 HYPERLINK l _Toc353214241 Context of the change PAGEREF _Toc353214241 h 3 HYPERLINK l _Toc353214242 Evaluation of the nature of such changes PAGEREF _Toc353214242 h 4 HYPERLINK l _Toc353214243 The change management strategy PAGEREF _Toc353214243 h 5 HYPERLINK l _Toc353214244 The challenges and difficulties in implementing such changes PAGEREF _Toc353214244 h 6 HYPERLINK l _Toc353214245 Change management model PAGEREF _Toc353214245 h 8 HYPERLINK l _Toc353214246 Stakeholders PAGEREF _Toc353214246 h 10 HYPERLINK l _Toc353214247 Managerial challenges PAGEREF _Toc353214247 h 11 HYPERLINK l _Toc353214248 Overcoming resistance to change PAGEREF _Toc353214248 h 12 HYPERLINK l _Toc353214249 Managing change PAGEREF _Toc353214249 h 12 HYPERLINK l _Toc353214250 Conclusion PAGEREF _Toc353214250 h 14 HYPERLINK l _Toc353214251 Reference PAGEREF _Toc353214251 h 16 Introduction UK largest international Airline, British Airways, is among the leading airlines in the world, with one of the most extensive route network, running internationally (British Airways, 2010). The income of the airline has been on the increase with the profits for the period between 2007 and 2008 being a total of 8,753, which translated to 3.1 more than the previous period. Throughout its operating years, British Airways has faced different challenges, as it is for all other companies in the industry. During the year 2007, the American economy experienced a crunch due to the bursting of the housing market. This was the beginning part of the 2008 economic crisis, or recession, which had global effects (slund, 2010). Like any other industry, the UK airline industry faced a major setback, British Airways being one of the companies and there was a need to implement changes for long company survival. This paper is an analysis of the changes implemented by the British Airways in the period between 2009 and 2011, and the challenges faced by employees and management during the change process. Context of the change Organization change is a useful strategy in times of crisis, or when an organization experiences performance gap. There may be other reasons for change but examining a good number of companies and institutions that have instituted wide-ranging changes, one notes that they mostly deal with the two issues. Companies may have good strategies in place but external and internal factors can lead to them failing. For example, management strategies can sometime contain inherent contradictions that create management spaces that in turn lead practices and identities that contradict overall aims and objectives of the company. The 2008 economic crisis, or recession, which had global effects led to the collapse of many companies. An examination of British Airways companys financial statements on the companys website shows that it made a profit of 875 million that was quickly followed by a loss of 401 million in 2009 (Milmo,2009). It was after the companys midyear loss that it became apparent that change was indeed needed. Although the shortcomings faced by the company may have been because of a mix of both internal and external factors, change was still a necessary undertaking if the company was to survive. A rise in oil prices, for example, needed to be countered by cost reduction within the companys operation, which could only be achieved through measures such as staff retrenchment or freezing any more pay rises. In other words, the companys move to change was motivated by the need to survive. The airline industry has seen a steady growth from its beginnings in the early 20th century and with that growth challenges have also emerged. Traditional airlines such as British Airways have over time been forced to compete with low cost airlines that charge low fares. In addition to...
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