Human resource - service industry Essay Example | Topics and Well Written Essays - 5250 words

Human resource - service industry - Essay ExampleThe airline company, which has been chosen to structure this report, is the British Air panaches. It is one of the worlds leading scheduled international passenger and cargo airlines catering to about 300 destinations across the world. (Annual Report of British Airways, 2008).According to the International Air Transport Association the airline industry, lost up to $8 billion in the year 2008 which surpassed previously forecasted amount. The marketing purlieu is constantly changing and with every change the industry gets affected. The demand for airline industry is highly income elastic (An analysis of British Airways Marketing Environment, 2008). olibanum the rise in fuel price last year and the recent economic turmoil has affected the airlines industry in a huge way as passengers are avoiding more expensive travels. According to a report by Air Transport Association (ATA), the revenue generated from passenger travels for all airlin es cast off by 19% during the month of February, 2009 when compared to February 2008. The company saw a decline in 8.6 percent in premium traffic and 4.1 percent in non premium. (paying(a) Business class air travel hit by crisis, 2009). Thus the situation indoors the company is not showing encouraging signs. In such(prenominal) operating environment the company is applying reactive strategies by planning to cut down on employees. It has to be remembered that British Airways is formed by the collaboration of 2 secern owned airlines. As a result the company previously lacked in any focused Human Resource Management policy. The significant changes took rig when Lord King was appointed as the chairman of the company in the year 1981, and he was quick to identify the low employee moral that was present within the organization. The companys core values lies with the quality of customer service they provide which is attached to its brand. Given this operating environment in the indust ry, the company needs to incorporate severe human resource direction policies into their revival strategy. This is because of the fact that, in the case of industries equal this industry, where the most of the employees are coming in direct contact with the customers the train of employee motivation required is very high. The way in which the employees are creation treated and compensated will reflect the effectiveness of value proposition being delivered to the customers. British Airways was formed by the merger of British European Airways and British Overseas Airways Corporation in the year 1974. (Lundy, Cowling, 1996). As both of the merging airlines were state owned the merger resulted in the overstaffing (more than 50 thousand) of the new enterprise and also there were evident management related issues within the organization. In the year 1980 the management style of the company was bureaucratic in nature containing many layers of hierarchical management. (Lundy, Cowling, 1996). At that time less importance were given in the qualitative aspects like employee relation, customer loyalty etc. Focuses were more given on the operational aspects but till then the company was incurring heavy losses. The significant