it is necessary for management to understand the different needs of different people, to align the organizational goals with the employee’s goal, to achieve productive and improved outcome. To know and understand the different background of the employees is vital as it helps managers to determine the need of employees belonging to different cultures. And, it is observed that one group of culture prefer intrinsic awards and another group of culture prefer extrinsic award. HR has promoted the diversity at British Airways and through its management techniques, high commitment resulted (Upchurch, 2010, p.2). By promoting diversity, employees will understand their employers and can make environment, a comfortable working environment.
2.2.4. Employment…show more content… Impact of the Merger on SHRM at British Airways
In Airline industry, airline companies prefer mergers and acquisitions to generate profits. Airline merges with those companies internationally, which holds less labour cost to cut the overall cost. A merger between BA and Iberia took place in 2011. BA acquired a 13% of stake in Iberia in 1998 and BA made first bid for Iberia in 2007. Iberia was a wingman for BA. This merger objective was to reduce the labour cost. This merger affected SHRM at BA (Morrell, 2010). BA shareholders get 55% of the new company and Iberia shareholders get 45%.
UK and Spain have different cultural background, which is a biggest problem for HRM as employees of different countries possesses different belief, values, thoughts and cultural aspects. SHRM at BA had to make strategies for promoting the diversity. Employee received training to fit in a new business model and environment. HR faced difficulties in formulating HR strategies because employee of both the companies has different business approach. In UK, organizations are flat and managers-employees can directly talk to each other, whereas, in Spain, organizations follow hierarchical structure, and managers-employees have distance (Communicaid Group Ltd, 2011). Moreover while giving feedback, BA indirectly communicates with their employees and they use “may be” word while giving a feedback. On the other hand, Iberia uses direct communication style for giving feedback and clearly tells employees…show more content… While, allocating job responsibilities, monochromic and polychromic are the focal points. Spanish are polychromic that means they can do many task at a time whereas UK people are monochromic and can do only one task at a time. In this situation job timing, job description and job responsibility differs. Furthermore, a biggest issue that has been observed after merger of BA is the split of HR technologies and HR department feels difficulty in taking decisions regarding which employee should stay, fired, promoted, or demoted (British Airways,