Relationship between Processes and Functions in Organisation

Managing Activities to Achieve Results focuses on the successful and resourceful planning and management of work activities. It offers employees with the knowledge and skills to design implement and transform operational systems to develop their effectiveness and efficiency and to accomplish the desired results. Employees are persuaded to consider the consequence and the interrelationship of business processes and the implementation of operational plans with quality systems and health and safety in attaining satisfactory results.

Task 1

• Illustrate the importance of business processes in delivering outcomes based upon business goals and objectives
• Evaluate the interrelationship between the different processes and functions of an organization

Overview of British Airways

British Airways is the largest international airline in the United Kingdom and is assigned in the operation of international and domestic carriage of cargo and mail, and the auxiliary services The British Airways Group comprises of British Airways, British Airways Holidays Limited, BA Connect Limited, Deutsche BA, and British Asia Airways, amongst others. Since privatization in 1987, British Airways have persisted to develop as competition in the market becoming the world’s first airline to reduce greenhouse gas emissions and to let passengers to print online boarding passes.

British airways group revenue for 2007/08 was 8,753 million, contrasted with 8,492 million in the previous year. Following figure 1 explains that so far from the performance over time, British Airways is in an uptrend; with a 1.5 percent increase ever since 2005.So British Airways is in good circumstance but still managing the economical changes. (BA 2007/08 Annual reports and accounts)

Structure of British Airways

Before the privatization, British Airways had a more formalized bureaucratic structure with rules and procedures, as a result of its size and its activities. But a main change in the last years has been the decrease of its management levels and it now has a formal structure with responsibilities across different functions. Therefore the structure of British Airways is flat type because it has only one level of hierarchy that separates managing directors at the top of bottom-line employees. The organization has segregated management-level positions into ten departments and each department has own subordinates. British airways structure is shown in figure 2 in which its departments include Planning, Investment & Alliances, Commerce, Ground Operation, Engineering, Flight Operation, IT, Finance, Law, and Human Resource. (British Airways, 2010)

However market influences created a leaner, structure at the top of the management. As illustrated in figure 2, British Airways have a flat hierarchical structure that needs them to cooperate within all the levels of as strategic where the board of directors take a decision on the long term objective the information which flows to the managers in the tactical who furnishes the information to the operational level and the operational level (front office staff, flight stewards etc.) drives the data into meaningful messages to be operated conveniently and efficiently.

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In addition, British airways communicates internally as well as externally. The company internally deals with staff weekly via staff newspapers, British airways news, intranet communications, major conferences and events and by facilitating proper communication to staff within their departmental areas. Besides the company encourages flexible communication due to the structure of British airways which is flat type as it has only one level of hierarchy that separates managing directors at the top from bottom-line employees. The organization has divided management-level positions into ten departments and each department has own subordinates, therefore it can be said that the company encourages horizontal integration communication as well. (British Airways, 2010).

Culture of British Airways:

As explained British airways flat structure encourages the company to have a corporate culture which can be described by applying the McKinsey 7S s model which includes Staff, Skills, Style, Shared Values, Systems and Structure and strategy.

Shared values of British Airways

So According to McKinsey 7S s model the author has found out that British Airways have a role culture in order to perform its structure.

• Politicized
• Specialist
• Service oriented
• Competitive
• Functionalist
• Co-operative

British airways culture has bureaucracy in its form. The power of this cultural incurs within its pillars. Communication takes place in job descriptions, procedures, rules and systems and the authority are based on job descriptions. Co-ordination of British Airways is narrow and the system provides the essential integration. Performance is not encouraged. Role culture of British Airways is suitable as the organization which is not subject to a steady change. As after the privatization British Airways has become a customer oriented culture.

Management style and leadership at British Airways

As clearly stated above, British airways had been bureaucratically, between functions and hierarchies. It has changed to a style of employees empowerment. This means management gets help from employees outside the formal structure and across functions.

British Airways used to have a more autocratic style but at the moment company is delegating responsibility directly to key individuals. The management at all levels mutually responsive to relationships created with customers and stakeholders. In other words’ company is experiencing democratic leadership style.

Functions and business Processes of British Airways

The business process is a collection of interrelated activities and tasks that will create a service as well as products for the consumers of business. There are three types of business processes involve in British airways and they are management process, operation process and supporting processes. The management process of British Airways is all about the operation of a system which includes the strategic management and the corporate governance. Strategic planning in management process is very important because it includes business plans, risk assessment, risk management, financial objectives, management responsibility, continuity planning, quality control, IT threat, contingency plan, disaster recovery, and fulfillment.

Another type is the operational process which is the most essential among all the types of the business processes. It generally comprises the core business of British airways which is transporting passengers fast, safely and comfortably. In addition to this, it also generates the primary value stream. Purchasing, sales, manufacturing and marketing functions are usually included in its operational process. And the supporting process of British airways gives support to the core processes by recruiting personnel to increase manpower. It also includes accounting and technical functions as well.

These three types of business processes of British airways have their own distinctive attributes which add value to its service delivery process.

SUPPORT ACTIVITIES FIRM INFRASTRUCTURE

Structured hierarchy permits BA to build a massive amount of specialist knowledge in order to get a competitive advantage over economized firms.

HUMAN RESOURCE MANAGEMENT

Invested in the expansion of customer service training in 2007 drawing attention of the best employees.

Speak Up view survey persuades employees to offer feedback (British Airways, 2008).

TECHNOLOGY DEVELOPMENT

BA has included value in this group over smaller companies by reason of lack of resources that can be employed to create the service in an innovative way. (e.g. Individual LCD screens).

PROCUREMENT

As a result of the size and chronological business relationships and alliances, BA is able to influence suppliers and during economies of scale make efficiencies where competitors may fall short.

PRIMARY ACTIVITIES

INBOUND LOGISTICS

Stock Control

High quality training given by City & the Guilds (British Airways, 2008).

A continuous relationship with suppliers (e.g. Gate Gourmet.

OPERATIONS

Enhanced Baggage Security.

Rapid check-in services and safe online bookings with ability to pre-book additional services.

OUTBOUND LOGISTICS

Customer Service

Large database of airport slots facilitates passengers to contact the majority of destinations from preferred airport. MARKETING & SALES

Marketing communications to all stakeholders.

Brand consenting to for large budget to be spent in this field.

POST SALE SERVICE

The loyalty club card is offered.

Bringing up to date communication on other services

Interrelationship between the processes and functions of British Airways

British Airways is one of the world’s largest mining companies. Its portfolio of aviation transportation in which it is a global leader in air transportation The company’s aviation operation and extensive airplanes of growth projects are located in all over the world, South America, Australia, North America and Asia. The purpose of the organization is to set out in a mission statement.

‘To be the leading global aviation company – through the operational excellence of world class assets in the most attractive commodities and a resolute commitment to safe and sustainable air transportation.’

In 2008 there was a downturn in world economic activity. This resulted from a loss of confidence in the world financial system. The downturn has led to a steep fall in aviation travelling prices such as airfares. By late 2009 these prices started to rise again as demand for aviation transportation increased.

Sustainability

Although Airline companies are affected by changes in economic activity, aviation is a long-term investment business. Firms like British Airways have to take a long term view of the business. This involves creating more routes which is a sustainable way over a long period of time. The company focuses on those routes in which it has a favorable position. It concentrates on various routes where sales of air tickets will be possible for many years into the future. It also looks at aviation projects where costs can be kept to a minimum but where there are opportunities to expand operations.

There are several issues of sustainability facing British Airways. Key ones are:

• Securing energy supplies, such as airplanes and resources including fuels, for the future
• Managing emissions to minimize harm.

British Airways uses large quantities of energy in its operations. It also generates the potential for energy, e.g. by purchasing the very latest planes which are eviromental friendly. A key aim of the company therefore is to do more with less. It must achieve maximum efficiency with minimum waste.

British Airways believes that by operating in innovative and socially responsible ways it can do things better than its rivals. Doing things better in business is referred to as competitive advantage. Social responsibilities are those duties to all the stakeholders of a business, not just the shareholders. Embedded within social responsibility is the concept of sustainable development. Sustainable development involves using resources so that:

• Resources are available to meet the needs of people now
• Resources can be available to future generations
• The needs of the natural environment are respected.

The success of British Airways is the best value comfort service provides for its passengers. And to build up this solid foundation in the marketplace, British airways utilizes its resources effectively and efficiently. In that manner operations management of British Airways plays an important role in transforming inputs (labor, capital, equipment, land, buildings, materials and information) into outputs (goods and services) that offer superior value to customers.

For an example marketing plays an important role in British Airways as the customers are more sophisticated in terms of their expectations. And the management functions strategically communicate effectively giving them higher priorities. And also the functions such as technology and information provides for the ease of check in including telephone check -ins, valet services and also an online portal on the British Airways website that consists of many features permitting passengers to verify flight schedules, check personal bookings, travel advice, information on British Airways destinations and even perform online flight bookings. Like that, British Airlines firmly focus on the significance of the interrelationship between processes and functions with its differentiation and international segmentation business strategies.

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Mission statement of the British Airways

The British Airways, often abbreviated as BA, introduced a new dimension on June 10, 1997. BA has proved and ensured that that redefining the vision and carrying it our success throughout the organization holds the key to corporate success. Keeping in view the competitors and their activities to match the standard for British Airways, it has geared up again and presently defining its target as being the ‘undisputed leader in world travel’. There do happen to be some statements that are being referred to as mission statements of British Airways and are as follows:

One Destination seeks to ensure our customers fly confident that, together, we are acting responsibly to take care of the world we live in

• To be the undisputed leader in world travel for the next millennium
• To be the most exclusive and first choice airline for all airline travelers

It can be said that British Airways’ new mission has provided the management with a new mandate to be something more than just an airline.

Justify the methodology to be used to map processes to the organization’s goals and objectives

Mission of British Airways

Every organization needs to define its fundamental purpose, philosophy, and values. The mission statement clarifies the essence of an organization’s existence. It describes the needs an organization was created to fill and answers the basic question of why it exists.

The British Airways’ slogan is “The World’s Favorite Airline,” and the company’s mission is to achieve that by providing a full service experience, both in-flight and on the ground. This mission statement provides the basis for judging the success of British Airways and its programs. A powerful mission statement attracts donors, volunteers, and community involvement. It helps British Airways and its stakeholders to verify whether British Airways are doing its intended job and making the right decisions. It provides direction when British Airways needs to adapt to new demands, helps the board to stay true to its primary purpose, and serves as a touchstone for decision making during times of conflict. The mission statement can also be used as a tool for resource allocation. The mission clearly states the purpose of British Airways . It is forward-thinking, positive, and describes success. It is clear and focused so that the reader can identify with the statement. It reflects British Airways s values, and clearly enumerates the reasons why British Airways exists. Creating a mission statement is a group effort. Board members present and past officers, staff, members, donors, and constituents can provide valuable input during the creative process, but the final wording of the statement needs to be approved by the board.

The mission statement should be referred to continuously. It should be reassessed on a regular basis and not simply tucked away in a binder with other board documents. It should be present everywhere: on letterhead, brochures, the Web site, and other official documents. It should be referred to in the articles of incorporation and the bylaws. Before joining a board, all potential board members should review the mission statement to verify whether their understanding of the purpose of British Airways is compatible with their own beliefs.

Strategic intent of British Airways

Identifying and communicating a clear vision is one of the most important functions a business leader can perform. All business leaders should understand the basic elements of visioning and how to communicate a clear vision.

British Airways are aiming to become a world s leading global premium airline. According to the British Airways website (www.britishairways.com), the company operates in global, premium and airline market and the details as in below.

• In global market

BA will appeal to customers across the globe. Wherever BA operates, individuals and business travelers alike will want to fly with them whenever they can.

• In premium market

BA will make sure all their customers enjoy a unique premium service whenever and wherever they come into contact with BA. BA customers will recognize that the service they offer is worth paying that little bit more for.

• In airline market

BA will remain focused on aviation, moving people and cargo is their core business. They will develop new products and services to complement this.

Creating a clear and effective vision delivers many benefits to British Airways . Not only does a clear, shared vision help define the values of British Airways and its employees, but it also helps guide the behavior of all employees. A strong vision also leads to improve productivity and efficiency.

With a clearly communicated vision, British Airways will facilitate buy-in from its employees and create a sense of shared vision that will enable British Airways to realize the benefits associated with a strong sense of vision.

Objectives of British Airways

SMART objectives

Businesses need to set out their objectives in ways that are clear and easy to measure. Using SMART objectives makes it easy to assess whether targets have been met.

Specifically – relating to clearly identified targets, for example, to be the ‘partner of choice’ for governments.

Measurable – set out in ways that can be measured. Examples include cost reductions, waste reductions or energy efficiency targets.

Achievable – objectives should not involve unrealistic targets. They should not be set too low either. British Airways believes that making cost savings of £1 billion by 2014 is an ambitious yet achievable target.

Relevant – the objectives should relate to key business or corporate aims. For British Airways this means using resources more sustainably.

Time-framed – giving a clear deadline or end point by which the objective needs to have been achieved.

The strategic intent leads British Airways to form its key objectives in order to deal with current market conditions and to build a sustainable future for business.

British airways can be stated as follows,

1. To be the airline of choice for finest customers.

2. To deliver an exceptional service for customers at every touch point

3. To develop the presence in key global cities

4. To build on the foremost position in London.

5. To convene customers’ needs and enhance margins via new revenue streams.

First key objective of British airways explains that people want to fly with British Airways with the premium quality chain and the company will continue to introduce great products such as the new business class seat on quality and a redesigned first cabin to complement Heathrow home terminal 5 which will redevelop premium facilities in New York JFK and continue to invest in the lounges is in other key cities.

A second objective explains that employees are being trained on the ground and in the air to provide world class hospitality and customer service where customers can already check in their flights from their mobile. The third objective describes British Airways provides the best global connectivity for their customers via a strong network from LondoCityty to New York JFK, with more flights to Dubai and Johannesburg and a return to Saudi Arabia.

The fourth objective illustrates London is positioned as the world s biggest aviation market, remaining Heathrow as a world class hobby acquiring new slots, supporting plans for a third runway and work with BAA (official airport parking) to enhance baggage and terminal facilities at Heathrow. In fifth objective it says by building profitable subsidiary services that provide customers great value to re-enforce British airways brand. And aim of British Airways is to grow their mileage business and boost revenues from third party in engineering, in-flight sales and a new online retail website. On ba.com British Airways has initiated a variety of great value hotel and car hire options packaged with their flights.

Evaluate the output of the process and the quality gateways

Justification

A number of factors affect the research and development process. Cost is perhaps the most influential factor. Research does not come cheap; introducing new technologies is expensive. The investment may be needed for a long time before introducing. It is important that there is a return on investment from the new products or processes once they are launched in order to justify the expenditure on research and development.

Changing technologies are another influence upon product or process development. They provide British Airways with a different way of meeting the needs of its customers. Changing technologies also have a long-term influence upon planning. Such developments may lead to new processes and the sharing of technologies through technology transfer across the Group.

It can be stated that British airways structure and culture are critical factors that have been influenced by company s mission, aim and objectives. Because goals set on the mission offer the long-term targets of the organizational activities which are possible to be specified for each element of British Airways. For an instance when British Airways set goals for marketing, customer service, personnel, they should be detailed enough to give a clear picture of the organization targets which generalize the characteristics of the mission.

And the On-going Processes of British Airways are shaping and achieving broad objectives by having a supportive culture and an effective organizational structure. First, objectives help stakeholders understand their role in an organization’s future. And second key objectives are the steps the company will take to achieve its vision. Increasingly managers are expressing a view that they want to develop their strategic skills to help them better understand their organization. They are almost always measurable and thus act as both planning aids and the criteria for performance review.