Executive Summary
Staffing problems encountered by British Airways have been a thorn in the flesh for the company for the longest time. In this regard, the company has experienced endless periods characterized by push and pull strategies, adopted by both the employees and the management (against each other).
In this regard, the company has had a difficult time trying to implement its future business strategies, but more specifically, its staffing strategies. This study recommends that implementing less traditional staffing plans and more pragmatic approaches can go a long way in relieving the company endless stressful periods of dealing with its staffing problems.
It is important to note that even though the company may not necessarily have to change its staffing strategies, it needs to change the way it implements the strategies. This study points out that the main objective for the company should be coming up with a different context for implementing its staffing strategies.
This study also recommends that the company should refrain from coming up with articulate and current solutions meant to tackle future problems (or come up with future strategic staffing solutions with certainty and surety), because unforeseen factors may cause such strategies to be ineffective in the long run.
These odds abound, the company should strive to review its staffing strategies to blend with its overall long term strategic vision through ridding the company of its staffing problems first.
Introduction
In human resource management, staffing is one of the most important factors needed for the overall human resource strategy of a company to work. If staffing issues are well managed, human resource strategies function better, leading to the ultimate realization of organizational goals.
Human resource functions are basically defined by a number of factors, but the most important are the size of the organization, the general employment climate and the operational dynamics of the organization (depending on the functions of the organization which are in tandem with the human resource strategies of the company) (Kathy, 2011, p. 1).
Staffing is one of the most important facets of human resource management as explained by human resource professionals (cited in Kathy, 2011, p. 3) because it is in the same category with other equally important human resource facets such as employee training, employee education, employee benefits and employee remuneration.
From this analysis, Kathy (2011, p. 3) explains that “This indicates that HR is most likely to support an organization’s business strategy through human capital-related areas such as building, developing and maintaining the workforce”.
Most organizations actually comprehend the fact that a viable staffing plan can bring unprecedented benefits for an organization and therefore many strive to develop staffing strategies or workforce plans to enjoy these benefits.
Even though these efforts have been applauded by most experts, many have noted that most organizations are having a difficult time implementing staffing strategies because most are ineffective (considering their predicted advantages are not realized) (Bechet, 2010, p. 1).
With regards to this problem, Bechet (2010, p. 1) notes that “The answer to this problem lies not in trying to implement the traditional approach more effectively, but in implementing a completely different kind of process for strategic staffing”.
For purposes of this study, we will evaluate the human resource staffing strategies of British Airways, which has in the past few years constantly experienced staffing problems. British Airways used to be the state-run airline company for United Kingdom (UK) but it got privatized in 1986 and is currently the biggest airline in the UK (in terms size of fleet and global destination networks).
British Airways is also one of the initiator members of the one world grouping (which was founded by specific American and Canadian airline companies) and now one of the biggest airline company alliances in the world. Though the company recognizes the benefits of human resource staffing as part of its overall human resource strategies, it has continually experienced problems implementing its staffing strategies (Modlock, 2010, p. 2).
This study will analyze the shortcomings of the company (with regards to its human resource staffing strategies) and evaluate why the company has in the past had endless periods of employee strikes. This will be done in addition to evaluating why the company is not implementing workable human resource strategies which has ultimately caused it problems with its employee management function.
This analysis will therefore help in understanding the challenges faced by most companies in implementing their human resource strategies and from a general understanding, we will propose viable conclusions to staffing problems.
Staffing Issues at British Airways
Staffing is the process of recognizing and dealing with the staffing implications of various business functions or changes, because it is important in complimenting the overall change of business strategies (in a changing business environment). This means that the consequences of staffing strategies should at least be factored into the overall business strategy of an organization when it is evaluating its business strategies (in light of the changing business environment).
In a general manner, staffing strategies incorporate the determination of staffing numbers and employee skills requirements so that the overall implementation of staffing strategies goes according to plan. In another context, the staffing plan can be used to define the bridge of staffing requirements and skill supply so that no wastages are experienced (instead, efficiencies should be evidenced in the organization).
In as much as any consultant would easily define the above steps as the most basic in any staffing plan, the devil in staffing strategies is not in the steps but in the details of implementation.
British Airways has in the past experienced a lot of problems with its staffing strategies. This has impacted the company’s long-term business strategy because employee strikes have resulted in unprecedented losses of up to 513 million pounds in the year 2010 (Modlock, 2010, p. 2). Modlock (2010, p. 3) reiterates that:
“It is estimated that strikes by cabin crew in March cost BA ÂŁ43 million, a figure which will grow as industrial action extends. It remains to be seen whether BA can maintain its aim of running 60% of flights normally and show the ‘non-flying pickets’ what they’re up against”.
Employee strikes experienced in March 2010 and the preceding twelve months saw the company incur losses that were only experienced during the company’s privatization in 1986 (Modlock, 2010, p. 2). Moreover, the employee strike also saw the company’s share price also significantly fall to an all-time low in 2010 (Modlock, 2010, p. 2).
The strike was instigated by the company’s cost cutting strategy in the year 2008/2009 (due to rising costs of doing business and rising fuel costs) which later caused employee uproar; thereby leading to the current staffing problems experienced by the company.
Most observers note that the company used to cave in to employee demands (in the 80s) and therefore the same strategy (strikes) adopted by employees in the past is being used as a tool to make the managers cave in to employee demands today (Modlock, 2010, p. 2). This is the reason advanced by most researchers why British Airways employees are among the highest paid airline employees when compared to other employees in similar companies.
The company’s employee perks are also among the highest in the industry (Modlock, 2010, p. 2). Modlock (2010, p. 4) for example explains that “For instance, on a return trip to Tokyo, British Airways employees are said to earn more in allowances than Ryan Air cabin crew earn as basic pay in a month”.
However, it should be noted that the reason why BA has unique staffing problems is its history of employee treatment as will be explained in subsequent paragraphs of this study.
Ryan Air for example does not have a poor history of employee treatment and it has been consistent in the way it handles its employees (Civil Aviation Forum, 2011). It should also be noted that the reason why BA faces staffing strategies despite the fact that it pays good salary is the fact that it seeks to reduce its number of employees to reduce its operational costs.
In the past, (the 80s) British Airways did not have staffing problems because it used to enjoy airline monopoly and government cushioning (in terms of extra funding) (Modlock, 2010, p. 4). However, with the changes in the global airline market and increased competition, the company has had a hard time keeping up with staffing issues as an important facet of the company’s overall business strategy.
As a consequence to the drama that has happened at British Airways, customer confidence has tremendously waned over the months because there is nothing that puts off a customer more than the probability of flight cancellation.
The biggest problem experienced by the company is the fact that employees are fighting for their jobs while the employer is fighting for its very own existence in the increasingly competitive and turbulent market. This situation has increased concerns over the very existence of British Airways (especially among the UK’s nationals) as affirmed by Modlock (2010, p. 5)
The same concerns have been voiced by Brian Stewart (cited in Modlock 2010, p, 25) who states that:
“Britain was there, right at the start of the airline industry. It just does not seem right……this seems to be a low point for British Airways; surely this could be an opportunity to profit from a bounce here? I believe they still have significant cash reserves. Losses 200m better than expected. Recovery underway. If they can sort out the staffing problem, then this may be a good future bet. Or am I totally misguided?”
There is even more concern regarding whether the company will make a profit in the near future, considering it experiences deficits in terms of pension payment (in addition to having a staff that’s not willing to stick with the company in hard times) (Modlock, 2010, p. 20).
British Airways therefore needs to come up with a good staffing plan to enable it overcome its current staffing problems. Fombrun (1984) notes that the staffing plan must be an integral part of the overall business plan, otherwise business success would never be realized (considering employees play an important role in it). However, research affirms that it is impossible for a viable corporate staffing plan to stand by its own (Modlock, 2010, p. 21). In other words, it requires support form other business functional areas.
Staffing and other human resource issues must therefore be correctly integrated into the overall business plan, although they should be altered in a sound manner so that the organization is able to realize its human resource management goals (in terms of employee number, competencies, skills and the likes).
Researchers note that the overall staffing strategy for any organization is more dynamic than one would think and this is probably the reason why British Airways experiences more problems in its other business functional areas (from its staffing problem) (Modlock, 2010, p. 12).
This is true because the overall business environment is very difficult to forecast (both in internal and external ways) than most business managers would admit and so, chances of companies coming up with viable staffing strategies that encompass all the dynamics of the business environment, are minimal.
Some researchers note that since the staffing requirements for an organization are widespread and dynamic, there is a strong need for businesses to constantly review their staffing strategies over periods of at least six months or so (Fombrun, 1984).
However, considering British Airways employees are likely to be suspicious of any company changes in the staffing strategies, a year or so would do. Other organizations are known to review their staffing requirements quarterly or annually.
British Airways has had problems evaluating its staffing strategies because it is currently experiencing problems orienting its employees with current staffing demands observed in the competitive 21st century business environment because its employees are still stuck with the 80s mentality where they could arm-twist the company into giving in to their demands whenever they so wished.
From the complexities experienced in the 21st century business environment, Fombrun (1984) notes that implementing staffing requirements in a problematic business environment can be quite challenging. For this reason, Fombrun (1984) notes that it is important to completely evaluate the business environment before carrying out any strategic staffing actions.
Though many companies may not experience such technicalities in carrying out their staffing strategies, British Airways is sort of a in a tight fix because of the history of its staffing complexities. Specifically, the staff culture developed in the 80s is a major stumbling block, and therefore the company is susceptible to union reviews (also considering the high number of employees the company has under its wings).
British Airways should therefore change the way it relates to its staff as the key to overcoming barriers relating to union reviews and poor staff reception of its strategies.
Fombrun (1984) gives an example of how Penn Square company (a financial company operating in the banking industry facing immense staffing issues) overcame its human resource problems by taking endless months to investigate the company’s staffing problems before any action was taken (Fombrun, 1984).
Fombrun (1984) further explains that the company’s management gathered relevant facts, deliberated them and then took the necessary actions to solve the staffing problem. The lesson to be learnt in the company’s exercise was that the information obtained after gathering the relevant facts was invaluable to the formulation of the staffing strategies and therefore this case should act as a precedent to British Airways in the manner it handles its staffing strategies.
Fombrun (1984) explains that Penn Square deliberated on each personnel case in a day, communicated the decisions they arrived at (in the same day) and then implemented their actions the following day (Fombrun, 1984). From this action, he notes that the company never took their time to dribble out their recommendations and leave the employees wondering what actions management would take (whether they would be fired or not) (Fombrun, 1984).
Fombrun (1984) further notes that the company’s approach was very consistent and therefore dealing with staffing problems in a consistent manner is very important for human resource managers.
This lesson could be very useful for British airways because it has experienced problems implementing a consistent human resource solution over the past decades because it had adopted a flexible staffing strategy in the 80s and now it is implementing a rather inflexible approach (Modlock, 2010).
Recommendations
Staffing problems encountered by British Airways have been a thorn in the flesh for the company for a long time. However, implementing less traditional staffing plans and more pragmatic approaches can go a long way in relieving the company endless stressful periods regarding its staffing problems.
It is important that even though the company may not necessarily have to change its staffing strategies, it needs to change the way it implements these strategies. The main objective is to come up with a different context for implementing its staffing strategies.
The company should therefore refrain from coming up with specific current solutions to tackle future problems, or come up with future strategic staffing solutions (with certainty and surety), since unforeseen factors may cause such strategies to be ineffective in the long run.
With these odds in mind, the company should strive to implement staffing strategies as part of the overall long-term strategic vision of the company where short-term decisions can be made and implemented at the same time.
For instance, if the company documents that it requires five new project managers by the end of the 2011 fiscal year, the company has the option of sourcing the managers through hiring, redeployment, promotion, work assignment, use of contracts, and other similar sources. To adopt the best option (among the above options), the company ought to have a long-term vision of its strategic goals.
This means that the staffing requirements for the organization need to go beyond the current fiscal year; implying that a more current alternative is needed for the organization, say, through hiring or promotion.
However, if the urgency for the new project managers is “blip”, a less permanent solution is more appropriate for the organization. For instance, the organization may decide to delay future company projects or hire new contractors for the time being as they solve the staffing problem.
This will also ensure that new project managers are deployed to project facilities without any hurry and indeed, no surplus project managers will be experienced. Whichever way the company chooses to go about the situation, future-staffing requirements for the company need to be first established.
Fombrun (1984) notes that if a company is facing staffing problems, it is supposed to take specific consistent actions in solving the problem before it escalates into a fully blown disaster which the company would find difficult to dig itself out of..
This study will borrow from this analysis and recommend that British Airways should not waste any time solving its staffing problems; meaning that the company’s management shouldn’t shy away in dealing with the problem as it has in the past.
This also means that as soon as the company gets a strike notice (or employee actions of some sort), it ought to burn the midnight oil trying to solve the problem, instead of employing the “wait and see” tact.
In addition, the company should carry out effective discussions with relevant stakeholders, including the company shareholders, employee union and the likes before implementing any strategy. This will ensure that the company gets enough support in implementing its recommendations. Moreover, management will get enough support when dealing with any resistance to its strategic recommendations.
However, Fombrun (1984) notes that, it is important to instil an organizational culture in the organization which would be compatible with the overall goal of implementing the staffing goals. This is true because if the organization has a supportive culture, less resistance will be experienced from the employees.
Even as British Airways implements new staffing strategies, it ought to understand that staffing strategies which seem unfavorable to the employees should be handled carefully and with higher sensitivity than other strategies.
Fombrun (1984, p. 84) affirms that “transfers, outplacement, termination policies and practices must provide alternatives for the positive support that employees need under these circumstances”. This is also important in ensuring there is a smooth transition from initial staffing policies to new policies.
The new staffing policies ought to be formulated with the performance of the organization and the future business needs of the organization in mind. These policies should then be implemented with firmness and strictness but in a timely manner; such that, the employees feel more accommodated in the overall strategic goal of the organization and their strengths and interests well accommodated by the staffing strategies.
This strategy is in line with recommendations by Fombrun (1984, p. 86) who notes that:
“one of the greatest injustice that can be done to an individual or an organization is letting the person take a position which he/she is not qualified to hold since the likelihood of unproductiveness and unhappiness is likely to be experienced in the organization and the person’s life respectively”.
However, most importantly, British Airways should pay close attention to issues revolving around selection, placement, compensation, training and the company’s management culture because these are the factors that determine the overall success of the company’s staffing strategies.
There are also new tactics and strategies managers ought to understand as part of their management training objectives. To compliment this initiative, all the managers should be kept in a management awareness-training program where relevant skills and qualifications required before a manager takes up managerial responsibilities are imparted to the managers.
However, this implies that significant managerial culture issues need to be revisited because the company should look for ways in which it can improve managerial communication upwards or horizontally (as well adopt new strategies through which managers can better treat their subordinates).
These are some of the critical areas through which some lessons on staffing strategies can be learnt. More importance should therefore be made on the management of human resource strategies because human resource strategies which are poorly managed are bound to fail.
Conclusion
British Airways does not need to change much of its staffing strategy (which is to lay off its excess staff to reflect the current increased costs in doing business) because it experiences more problems in the implementation of its staffing requirements than approving the strategy anyway.
This is true because British Airway’s staffing strategies have been developed with regards to the current and future business demands of the 21st century. It’s the implementation of these strategies that poses the biggest problem to the company. This problem is majorly manifested in the strike notices the company has been issued with in the past year.
This problem is however noted to affect most companies and not only British Airways. The company therefore needs to improve its overall implementation of the staffing strategies because this is the major problematic area for the company since it experiences more resistance from the employees in terms of employee strikes.
Creating more emphasis on the training, selection and development of performing specialists in the company is the most important staffing strategy the company can undertake because this employee population is quite critical for the overall success of the company. It has been proved that the best pool where the best human resource managers can be obtained is from highly performing company specialists (Fombrun, 1984).
This group of highly performing specialists often exhibits a track record of outstanding employee performance. These strategies if correctly applied can tremendously turn around British Airway’s staffing problems.
References
Bechet, B. (2010). Developing Staffing Strategies that Work. Web.
Civil Aviation Forum. (2011). Ryan Air and their treatment of Staff. Web.
Fombrun, C. (1984). Strategic Human Resource Management. London: John Wiley and Sons.
Kathy, G. (2008). Report: Staffing Issues Critical To Business. Web.
Modlock, S. (2010). Are British Airways’ Problems Terminal? Web.