Strategic Human Resource Management Report: British Airways

This report provides a comprehensive analysis of Strategic Human Resource Management (SHRM) at British Airways. It begins by identifying key trends influencing HR strategy, such as employee experience, people analytics, and learning management systems, and examines how both external and internal factors impact HR practices. The report then delves into relevant theories and concepts relating to the growth and development of SHRM, including contingency theory and performance appraisal methods, and evaluates how change management models support HR strategy within the organization. Finally, the report assesses the monitoring of HR outcomes and the relationship between effective HRM and sustainable organizational growth, concluding with suggestions for HR development techniques and the contribution of HR practices to business sustainability. The report uses British Airways as a case study, comparing and contrasting its practices with other organizational contexts.

Strategic Human Resource
Management
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Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Key trends and development those influence organisational human resource strategy....3
P2 Impact of external and internal factors on HR practice and strategy................................4
M1 Relationship of internal and external factors with HR strategy.......................................6
D1 Critically evaluate the influences of key external and contextual developments, applying
relevant theories, models and concepts..................................................................................6
TASK 2............................................................................................................................................6
P3 Relevant theories and concepts relating to growth and development of strategic HRM. 6
M2 Explain how human resources theory relates to practice in a specific organisational
example, identifying areas where this will differ in other organisational situations..............9
D2 Evaluate how human resource theory relates to practice in a specific organisational
example, comparing and contrasting this with other possible organisational contexts..........9
TASK 3............................................................................................................................................9
P4 Evaluate how appropriate change management models support HR strategy in application
to relevant organisational examples.......................................................................................9
M3 Provide valid justifications for the application of chosen change management strategies,
models and concepts, and demonstrate how they effectively support HR strategy.............10
D3 Implementation of change management models, strategies and concepts ....................11
TASK 4..........................................................................................................................................11
P5 Monitoring of HR outcomes in context of specific organisational context ...................11
P6 Relationship between effective HRM and sustainable growth of organisation..............12
M4 Suggestions for HR development techniques................................................................13
D4 Contribution of HR practices in sustainable growth of business along with consequences
of its implementation............................................................................................................13
CONCLUION................................................................................................................................14
REFERENCES..............................................................................................................................15
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INTRODUCTION
Human Resource Management can be defined as the process of managing employees of
an organisation (Armstrong, 2019). This approach is associated by obtaining competitive
advantage. This is attained by developing skilled employees of the company. In the process of
Human Resource Management, there are several techniques and methods. They may be related
to personnel, structural and cultural segments also. Strategic Human Resource Management is a
very modern approach that is increasingly adopted by different organisation nowadays. It enables
management of workforce and different organisational strategies. The main aim of this branch of
human resource management is to motivate employees better in their job profile. This will help
in improving performance of both, employees and company as well. This report is focusing on
UK based tourism company, i.e., British Airways. is the flag carrier airline of the United
Kingdom. It is headquartered in London, England, near its main hub at Heathrow Airport. It is
involved in the business line of serving airline services. This report focuses on describing several
new trends and also impacts that external and internal environmental have on strategies of human
resource strategies. This statement focuses on how outcomes of whole process will be monitored
and controlled.
TASK 1
P1 Key trends and development those influence organisational human resource strategy
External environment is always changing and with these changes, it forces new trends in
society (Bailey and et.al., 2018). These trends also effect the human resource strategies and also
its implementation in company. Effective adoption of these trends helps in devising effective and
efficient performance. There are several key trends which effect HR strategy of British airways
which are explained as below:
 Employee experience: Employees are considered as most important part of every
organisation. Therefore, it becomes important that employees are satisfied and involved
in the workplace. In today's world, where employees have ample of opportunities, they
just want to go at a place where their contribution is values. It is a new trend that
employees want that an organisation should follow participative management as in this
form, employees are more motivated to perform better and way more efficiently.
Management of chosen organisation i.e., British Airways, should focus on gaining
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improve performance from its employees and in order to achieve this objective,
management should concentrate on improving working culture in the company. Human
Resource manager of the company should aim at preparing journey map of employees
and providing exposure to receive feedback back from employees (Dabic, González-
Loureiro and Harvey, 2015). Advanced people analytics: Mere providing motivation do not enhance performance of
employees, after that efficient monitoring and controlling is also important. After
monitoring and controlling, management of an organisation comes to know about the
employees who are more capable and worthy for the company. This analysed data can be
used by the company to enhance optimum utilisation of these resources. This process will
help in increasing productivity of the company. In context of British Airways, company
can use different predictive models that will help in managing employees and also in
improving performance of company. Example of these models are SAP success factors,
Viser, ADP, Oracle, Cornerstone, etc. Learning management systems – It is very important to learn new skills for staying
updated. There is need for constant learning of HR trends as it will provide learning
opportunities to employees. There is improved skill set which helps employees for
delivering positive workplace where employees can enhance their productivity. The
learning management systems help in managing critical part for tracking learning process
of employees. This requires collaboration among different departments of British
Airways.
 Digitised rewards and recognition - There is usage of recognition and praise for helping
employees to enhance their productivity and efficiency. Digitised rewards have become
new trend for rewards and recognition. They have to be managed properly for preparing
all rewards digital (Delery and Roumpi, 2017).
P2 Impact of external and internal factors on HR practice and strategy
Human Resource department have a significant role in devising strategies for various
segments like workforce planning, labour relations, training and development, legal compliance,
etc. These all functions are very important for smooth functioning of business operations in
company. Human resource management ensures completion of day to day task of company in
effective and efficient manner. External and internal factors do not only have an impact on
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business operations but also on formulation of strategies. Therefore, it become important to study
these factors (Dorri and Habibi, 2015). In relation with British Airways, following is an
explanation of these factors affecting company operations:
External factors: Poor labour: The most function of human resource department is to recruit and select
suitable employees for the vacant position in company. Workforce planning is an
important step, this means, that company needs to consider that from where and the
employees will be recruited and also determine the qualities they should possess. The
external factor in this is the availability of skilled and suitable employees. This segment
is also effected by unemployment rates, number of skilled employees, etc. Large
organisation like British Airways should concentrate on this matter as if they would not
recruit suitable candidates, than operations of the company will hamper in great manner.
 Government rules and regulations - There are some federal and state workplace
regulations which have great impact upon the company. Every company has to follow
training, hiring, compensating and disciplining which are affected by regulations. There
are different lawsuits which can be filed by vendors, customers and employees which can
impact upon modifying office configurations.
Internal factors: Growth of company: This is an internal factor which puts impact mainly on growth
prospectives of company. Every company has an ultimate objective of attaining
maximised profits and growth in future. To achieve this desired objective, it is necessary
that management of company concentrate on building effective human resource set
within organisation. If a company wants to grow in future, than it needs to focus upon
different strategic decisions related with human resources.
 Use of technology – When new technology is used within the company, it is seen that HR
functions get affected. In cut throat competition in today's business environment, it is
important to integrate functions of strategic human resource management and
technological advancements in company. Adoption of latest technology is as important as
acquiring raw material in production firm. If company will not effect latest technologies,
than it will not be able to pace with other firms in the industry and it will result in loss of
customers and revenues as well (Ghobakhloo, 2018).
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M1 Relationship of internal and external factors with HR strategy
In context of British Airways, there are some external and internal factors which are
affecting organisational functions as well as HR activities. To analyse these impacts are
necessary in order to learn about the appropriate manner of devising strategies in organisation.
There are certain government regulations that regulate every Airlines company and these are
related to employee welfare. Hence, it is necessary that all HR strategies are formulated in
accordance of these laws and regulations (Hill, 2017).
D1 Critically evaluate the influences of key external and contextual developments, applying
relevant theories, models and concepts
According to Paul Boselie, 2020 it has been devised a model named as the 8- box model.
Under this model, it is explained that several internal and external factors have a direct impact
over effectiveness over HR practices. There are different external factors those have a great
impact on operations of human resource department of an organisation. For example, legislation
impacts, sources of recruitment, etc. in context of internal environment, they do effect the
business and its HR strategies, for example, technology used in organisation, etc.
TASK 2
P3 Relevant theories and concepts relating to growth and development of strategic HRM.
Strategic human resource management refers to those HR practices that assist in improve
performance of a business in effective and efficient manner (Morgeson, Brannick and Levine,
2019). As per the views of Purcell, 1999 strategic human resources basically focus on those
actions that helps in differentiate an organisation to its potential rivals. Thus, it is required for
British airways to analyse several theoretical models that may help in the growth and
development of its HRM practices. The analysis of different theories and models are determined
below:
Contingency theory of HRM: This theory determines that working approaches and
management strategy of human resource department is needed to base on different situations. In
this regard, it is required for HR manager to opt one best style and strategy based on business
requirements and need. In the context of British airways, it is required for HR manager to opt
one best fit approach on the basis of contingency situation after analysing its consequences.
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These strategies could be based on situation of staff turnover, immediate hiring of new
employees, management of new ideas, contingency decision making and so on. Thus, in this
situation, HR manager can decision by taking help of contingency theory of HRM.
540 performance appraisal: This theory of HRM determines requirement of employee
motivation in organisation which is essential to increase operational productivity of firm easily.
This technique basically helps in analysing strength and weaknesses of individual after getting
feedbacks from not only subordinates but from every person with whom individual has
interacted (Najmi, Kadir and Kadir, 2018). In respect of British airways, these kind practices will
help in maximising morale of employees as well as in order to make them more enthusiastic
towards their work. Somehow, these practices used by firm in order to develop their interaction
level for improving quality of their work. In this context, HR manager of firm constructs an
effective strategy through which they can address employees need and demand. Main objectives
behind this is to influence them towards business working that may result as in future growth.
Performance management: This is a business ongoing process in which HR department
of firm appraise performance of employees by providing them rewards, recognition and so on.
Main objective behind all these activities is to enhance overall productivity of their workforce
through which target objectives of firm can be attained. Management of British airways pays
their maximum attention towards employee performance in order to enhance them by providing
appropriate training to them. On the basis of these kind of activities, organisation provides
quality services to their which impacts positively upon organisation’s overall performance and
goodwill. The biggest competitor of the chosen company is Atlantic Airways, they are facing the
big challenge in respect of performance management, hence, it results in decreased performance
of employees in company.
Maslow's Hierarchy of needs
Maslow's Hierarchy of needs is the theory of Human Motivation. This theory suggest that
people's basic needs should be fulfil first. And after that other needs to be fulfilled. According to
him, there are various kinds of needs which a individual have. Starting from the first level and
ends with the fifth level of needs. As the first level of needs completed, the individual look
towards the next level. The company should follow this hierarchy to meet its employees need.
Now let discuss about different level:
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 Physiological needs: This is the first level of Maslow hierarchy which consist of basic
requirement like food, water, shelter, clothes, air, nutrition etc. these requirement should
be fulfilled of each individuals.
 Safety needs: when individual's basic needs are fulfilled, then he moves to next level
which is of safety needs. These includes job security, safe environment, health and well-
being. For this company should protect them through saving account, insurance policies,
unilateral authority.
 Social needs: The third level of theory is social needs. It contains emotional behaviour
like love, acceptance. Friendship, family, social and community groups, lovers etc. play
an important role in satisfying these needs.
 Esteem needs: Then comes the fourth level which include respect and appreciation. At
this level it is important for a person to gain some respect and appreciation and prestige
by others.
 Self- Actualisation needs: According to Maslow, this is the last stage in which a person
seems to be fulfilling his all needs and to be capable of showing his talents, capabilities
and potentials.
Herzberg's motivation theory model
Herzberg Theory is the two factor theory. This theory identifies various factors which are
important for the employees who are working in the environment. The company should use this
theory model to influence its workforce. This theory divided into two factors:
 Motivating factors: Motivating factors include:
Achievement: for an individual, achievement is most important thing if has done something
different or difficult.
Responsibility: British Airways should give some responsibilities to their employees that can
help them in becoming responsible for completion any work.
Growth: every employees needs growth in themselves. So the company should give them formal
training to learn new skills.
Recognition: company needs to recognise and praise the employee for their success.
 Hygienic factors: Hygienic factors helps an employee to provide a good working
environment. These factors includes:
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Security: every employee needs job security. So, company should provide their employees feel
secure about their job.
Working Condition: Working environment should be safe and clean and hygienic.
Salary: company should provide fair and valuable salary to very employee working there.
Company Policies: Company policies should be clear to every employee.
Nudge Theory:
Nudge theory is used as the flexible and modern concepts for the different companies. As
this theory help the employers to think about the people, make the decisions regarding the
policies and ethics. In the British airways, this theory help the company to make the decisions
regarding the company's policies and practices. They collect the feedback from the junior
executives and customers and act on the policies according to the revert they got from the others.
M2 Explain how human resources theory relates to practice in a specific organisational example,
identifying areas where this will differ in other organisational situations
In respect of British airways, contingency theory of HRM, 540 performance appraisal and
Performance management theories could be effective because all of them are related to working
practice and requirements of British airways. By implementing these theories, BA can easily
boost productivity of firm as well as can implement new ideas strategically that may help them in
attain desired success easily. Some of the companies as Atlantic Star Airlines faced issues and
challenges related to management of workers and their productivity due to absence of strategic
HRM practices. Thus, it is crucial for each and every firm to work effectively by in firm after
analysing outcomes of implementing strategic theories in firm (Nyberg and Wright, 2015).
D2 Evaluate how human resource theory relates to practice in a specific organisational example,
comparing and contrasting this with other possible organisational contexts
British airway faced one major issue as lack of employee motivation which results
excessive turnover as well as an average work quality (Nykyforenko and et.al., 2019). Thus it is
required for HR department of firm to implement performance management and 540
performance appraisal theory that may assist them to improve work quality of their employees
easily. Maximum organisation of an industry faces issues related employee’s performance as
Atlantic Star Airlines is also facing same issue because they thought that implementation of such
is costly process and its requires major changes. As it results, firm is facing major issues while
serving in the same industry.
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TASK 3
P4 Evaluate how appropriate change management models support HR strategy in application to
relevant organisational examples
For an organisation, it is required to implement desired changes on timely basis. Main
objective behind this is to improve overall working of firm by implementing new ideas in
operational and functional activities. In this regard, it is required to evaluate change management
models and theory by providing its clear application in the context of British airways:
Lewin’s change management model:
According to this model, change determine as a common thread which runs through all
the businesses regardless of industry, its size and age. In today’s world, each and every business
is familiar to the concept of change management but how business manage these changes is
enormously depending upon its nature. In order to implement changes in firm, HR department
provides its own contribution by strategically manage all the activities. This change model
determines three different stages as:
Unfreeze: At this stage, it is required for firm to prepare themselves for implementing
changes by arranging all the resources appropriately. At this stage, British airways can
understand the need of change and can arrange their strategic resources for its effective
implementation.
Change: At this stage, changes or evolution takes place in an organisation with the help
of strategic planning practices. In the context of British airways, HRM of firm needs to develop
effective communication between their employees in order to implement change by informing to
each and every one about its potential impacts.
Refreeze: This is a stage where changes are taking shape and people have incorporated
the new ways of working. Thus, organisation can refreeze their process effectively (Rustamadji
and Omar, 2019).
Kotler’s 8 step change model
This model discusses process of change that categorise in 8 different steps. With each and
every step, this model determines crucial responses of change in the business context. Creating
urgency, forming a team, creating vision for change are works on initial stage on which firm
proposed changes by analysing its requirements (Vaiman and Brewster,2015). Secondly,
communicating vision and remove obstacle based on analysis and implementing strategy based
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on desired changes. At last, creation of short-term changes, building on change and incorporating
changes discusses how firm can effectively implement all the required modification in order to
enhance business profitability.
Physiological contracts
It is the contracts which is developed by Denise Rousseau, he explained that this contract
is a unwritten set of contract in between the employer and employees. It mainly include the
common belief, ground and perceptions in between the two main parties of the organisation they
are an employee and employer. They both have some responsibilities which they have to
complete in regards to make a guard against the potential breaches. For the employer it is
important to make sure not to provide the wrong perceptions to the employees or make sure the
promises are upheld by the employers for the employees so that they get the high level of
satisfaction with their job profile. At the same time for the employees it is important to managing
the expectation of the employers so that in the adverse and difficult situations are not seems like
negative impacting on the operations of the company and employer's not seems that workers are
acting out firm the company.
M3 Provide valid justifications for the application of chosen change management strategies,
models and concepts, and demonstrate how they effectively support HR strategy.
It is concluded from above discussion that airline industry faces continuous change in
way of working. To match with the pace of this dynamic industry, it becomes essential, that
company also regularly updates itself. For this purpose, company should provide training to their
staff members so that they can match with the changes. In this manner, employees will be able to
perform in an efficient manner and it will increase the productivity of company. The chosen
model in this respect is Kurt Lewin change management model is known as effective model
which help management of company to carry out HR strategies with aligning them to progress of
employees (Hollenbeck and Jamieson, 2015).
D3 Implementation of change management models, strategies and concepts
Above stated steps including unfreeze, change and freeze are included in Kurt Lewin
change model. This is used for managing the adoption of change in this company. Change
management has taken place in this organisation efficiently. It has lead to manage the change
within company effectively and achieving success. Main objective of HR strategies is to develop
prominent ways to provide training (Junni and et.al., 2015).
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TASK 4
P5 Monitoring of HR outcomes in context of specific organisational context
Strategic HRM is related with different organisational practices that are associated with
HR strategies and its planning. Mere planning is not enough, it is important that company
monitors and also keep a control on outcomes of above planning. In context of British Airways,
it is observed that human resource department is following effective strategies and they are being
developed in an effective manner. This whole process is successful in enhancing employee
benefits. There is an urgent need for the company to analyse and evaluate performance of
employees so that good performance can be recognised and also they can be used for attaining
desired objectives and goals. HR department is considered as backbone of each and every
organisation. This provides support to main responsibilities of tasks associated with employees
and staff. In a company like British Airways, it is considered that different results are obtained
after evaluating HR outcomes. Some of these are described below:
 Key performance indicators: They are the main focal point of every strategy in human
resource department. These factors helps in evaluating results of these formulated
policies. This technique is used by those companies, who believe in the fact that
performance of organisation depends upon the performance of employees. Management
of such company is to develop effective decision making in the business. Performance of
employees is judged on the basis of key performance indicators such as profit margin,
average attendance, etc. There is need to have strong and effective plan to evaluate HR
outcomes. This is done through evaluating above KPI's (Lasserre, 2017). 10 C checklist: This is another concept that relates with the performance of company and
associated progress. It is observed by that with the help of this technique, HR strategies
can be evaluated in more appropriate manner. “C” represents credibility,
comprehensiveness, competence, creativity, congruence, commitment, change, cost
effectiveness, control. These are evaluated on the basis of performance level and
measured according to these factors (Molloy and Barney, 2015). By evaluating these
factors, it is considered that determination of HR outcomes is helpful for conducting the
business in effective manner. These principles help to know which employee is having all
the required capabilities.
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