Outsourcing Strategies of British Rail Essay

Published: 2019-10-10 12:35:15
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Category: Outsourcing

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This paper is paper deals with a critical evaluation of the outsourcing strategies of British rail. It also shows the organisational profile of British rail. In this paper the areas of business outsource are clearly explained. Outsourcing strategies are usually very important to the business set up. In this case, the importance to the British rail is explained. There are also critical views to this topic. Organisational profile The British Railways was started in the year 1948. In the year 1969 there was the re-branding of the British Railways to British rail.

This is when there was the replacement of the lion crest with arrow logo that was double sided. After a short period this became a symbol of lateness. 1951 In the year 1951 there was the introduction of steam locomotive that had the BR standard. There was also the introduction of the freight rolling stock. Later on there was the standardization of the operating standards. The engineering standards were also standardized in the organisation. Modernization In the year 1955 there was the modernization of the British railways. The organisation invested in new electronics and diesel.

This also included the main lines in the organisation being electrified. The tracks were renewed and designable. This was very costly for the organisation. The organisation spent approximately ? 1,240 million in the process. In the 1950s there was the closure of some routes. In the year 1962 the British Railways was converted to a public corporation. Initially it was just a trade name. Renaming British Railways was re-branded to British rail. During this re-branding process there was the introduction of the logo with the double arrow. Very many people joked about the logo claiming that it symbolized indecision in the organisation.

The rail had two flags. The flags were used on the land stations and also used in the background. In the year 1965 the flag was replaced by a new one. The new flag was blue in colour. Research shows that the British rail had ships. After some period of time the organisation ceased to run the trains and ships. This happened in the year 1984. In this year research shows that there was the selling of the sea link ferry services. Privatization There was the privatization of the British railways in the year 1994 to the year 1997. This was done after the advice of Adam Smith.

During these years the organisation was privatized after being split up. This privatization policy was initiated by Margaret Thatcher. This was through the conservative government that she owned at that time. By the year 1997 the privatization process was finished. The entire process was rushed due to the general election. The privatization had different effects on the British Rail organisation. There was the stimulation of passenger growth. There were also other negative effects of the privatization. One of them was the fare was increased meaning that the passengers really incurred a lot of expenses.

The freight charges were also increased. It is not only privatization that led to the increase in the charges but other factors could also have played a big role. Research shows that the British Rail enjoyed having large numbers of customers in the 1980s. Hover there was a big decline in the number of passengers during the 1990s. Of late the passenger numbers have increased back to what used to be in the 1950s. In the year 2007 there has been a rise in the passenger levels. The British Rail has got commuter routes that are so popular. These routes are used so frequently.

However the current inflation has led to increase in the fare which might discourage the customers. Job positions In this organisation there are various job positions. These include ticket seller, maintenance team, signal lamp man and also other platform duties. There are also other management positions that are present in the British rail. Areas of business outsource Outsourcing has to do with management control sharing. There is also getting information from outside concerning decision making in the organization. There are many sectors in an organisation where outsourcing is done.

This includes customer support, human resources and also other facilities. Customer support In the British Rail this is one of the areas where outsourcing is carried out. The organisation puts in notices and also writes letters to its customers. These communication tools are used to inform the customers of their needed support. This has been well done in this organisation. Customer support has been given to the British Rail in many ways. There is support that is given in form of advice to the British Rail. This is in relation to the betterment of the services in the institution.

Customer support is also given through volunteer services like cleaning. Customers also help in curbing corruption in the institution by reporting the culprits to the management. Human resources This is also another area where outsourcing is carried out in the British Rail. The human resource department in this organisation gets help from the private consultants that deal with organisational human resource management. The consultants assist in various problem solving issues in the organisation. These issues include payment of the workers in the British Rail and matters concerning indiscipline among the employees.

There are also other issues like the recruiting of new employees in the British rail. The British rail also links up with other human resource managers in the transport industry. They help in carrying out organisational learning. Training personnel Training of personnel in British rail is also done through outsourcing. In this organisation there is always the recruitment of new employees that is carried out every yea. These employees include those in the engineering field and also those that deal with the general maintenance in the organisation. There are also the management trainees that are recruited annually in British Rail.

All these new employees have to be trained before they commence their duties. For instance the management trainees are trained for three months before they start working. This organisation carries out outsourcing by hiring private consultants that are trained in this field to train the personnel before they start working. There are non governmental organisations that deal with these services. The British rail normally hires them to carry out the training especially on the professional employees. Training new employees on the technologies that are used in the British rail is always a very complex venture.

They have to be kept abreast with the new technological advancement. The new recruits are taught on the tools of development and also the self assessment tools that they can use while working in the British rail. Recruitment of new employees The other area where this organisation carries out outsourcing is in the recruitment of new employees. The British Rail hires consultants to carry out the recruitment process. The organisation gives the desired qualifications and positions that are vacant to the consultants. They in turn carry out advertisement of the posts in newspapers.

They carry out the interviews and select the best candidates for the Job. This saves the organisation the hassle of carrying out the recruitment process. It is also very beneficial in the sense that corruption during the recruitment process is minimized. Technology incorporation This is the other area where outsourcing is also carried out in the British rail. The British rail hires professionals to helping the installation of new technology. This includes installing new machineries that are used in the organisation. They include putting in place new rails on the rail tracks.

This is usually a tedious work and it needs very qualified personnel. There is also other technological incorporation like installation of the computer systems in the various departments in the organisation. This includes the customer care department and also the finance department among others. The finance department involves the incorporation of very complex systems that are normally very difficult to install. There is also the installation of information technology in the customer care department in the British rail. These include the installation of telephones and the internet to the computers.

This is also an area that outsourcing is carried out in this organisation. Importance to business strategy Saves money The British rail organisation has really benefited from the outsourcing strategies that are used. One of the benefits is that these strategies save money. Research shows that it is far much cheaper for this organisation to carry out outsourcing than if it were to do all the above internally. This is because the operational costs are highly minimized in this case. Saves time The other importance outsourcing is that it really saves the organisation a lot of time.

For instance, if the human resource management was to carry out personnel training by itself, then much time could be wasted. When outsourcing is carried out in an organisation it helps in saving time and therefore other departments in the organisation are given enough attention. Technical staff is reduced Outsourcing really helps in the reduction of technical staff in the British rail organisation. Research shows that if the British rail would manage an internal technical staff then it could be very expensive. British rail through outsourcing has managed to reduce the technical staff by half.

This means that less money is used in the payment of the technical staff. Increase in business effectiveness Outsourcing has got very big impacts to the entire business. There is increased effectiveness in even in the delivery of the services. In this case British rail has really benefited from outsourcing in the sense that their services have become more effective. Analysis on the organisation shows that even the number of passengers has increased with time due to this effectiveness. The customer care department is very effective in the way it deals with the customers.

This is because this organisation since it incorporated outsourcing it has focused more on training programs that impact the business positively. The organisation is much updated in technology hence effectiveness in the service delivery to the customers. This has been very evident since the customers that have used the services are very loyal. The customers have given good reports concerning the satisfaction with the services delivered by the British rail. This is in terms of effectiveness and efficiency in the organisation.

Resource relocation The other importance of outsourcing is that it allows the relocation of resources in the organisation. Time as a resource is relocated to other important sectors in the organisation by the managers. For instance the managers in British rail were able to use time saved in outsourcing to carry out strategic planning in the organisation. This time was used to critically analyze the operations in the organisation. More time was spent in budgeting and planning in the British rail. Time was also relocated in evaluation of new technologies. This enhances the efficiency and the effectiveness in the organisation.

All the above ventures put the British rail close to business. Customer satisfaction One advantage of outsourcing is that there is increased customer satisfaction. This is has been quite evident in the British rail organisation. After incorporating outsourcing services in many departments in the organisation, many customers acknowledged their satisfaction in the organisation. This is because outsourcing makes the organisation to be quite pragmatic in nature. There is the incorporation of the business driven approach. Minimizes corruption The recruitment of the new employees through outsourcing in this organisation has got a positive effect.

This is in the sense of minimizing corruption in the organisation. When the recruitment is carried out internally, there are always high chances that the managers will employ their close relatives hence spoiling business. There are also instances when the recruitment panel receives bribes so as to favour some of the interviewees. So the outsourcing strategy in this area has been quite beneficial.A critical analysis on the outsourcing carried out in this organisation shows that the venture taken is very beneficial. The organisation has really gained in saving time which has been directed to other important things like planning.

Challenging A critical review on the outsourcing strategies that were used in the British rail organisation shows that the task is very challenging. This is especially in the area of decentralizing the training. It is very difficult to carry out budgeting in this case. It is also not very easy for parties involved in the organisation to agree in making decisions that are related to outsourcing. Outsourcing that was carried out in this organisation was a test to the control in the organisation. Working with decentralized budgets is a hard task for the financial managers and auditors in this organisation.

Limit to technical flexibility While outsourcing is very important in an organisation, a critical evaluation reveals that the technical flexibility in the organisation is limited. This is especially evident in the technical functions in the organisation. There is a high limitation in the customized reporting in the British rail organisation. Sometimes outsourcing involves much bureaucracy that can really be time wasting n this case. It also needs much consideration and evaluation. Demoralization of employees One thing that outsourcing does is that in one way or the other it demoralizes the employees.

Sources on interviews carried out in the British rail show that the outsourcing done does not make good use of the employees insight and unique talents. This makes the employees feel quite incompetent when working in the organisation. Something simple that could easily be fixed by the employees is done by the external sources. This calls for the management to clearly evaluate the situations where outsourcing should be done and when the internal employees can easily do the work. This could save some time and also money that is spent in the hiring of outside help.

This makes it easy to obtain the needed services at much reduced costs. There is also the standpoint of labour that occurs in the outsourcing organisation. To be realistic, outsourcing is a threat to the employees in the British rail organisation. There is the rise of worker insecurity in the organisation. The employees assume that the outsourced experts have come to replace them and simply refuse to cooperate. There is the probability of retaining or discharging if the workforce by the service providers. Security A critical evaluation on outsourcing carried out in the British rail raises some security issues.

Every organisation has got private and confidential information. Outsourcing in this case gives outsiders access to information that is very sensitive. Sensitive information in the British Rail organisation includes the employees terms of employment. This includes how much the employees are paid in each in relation to their qualifications. Conclusions British rail as an organisation was started in the year 1948. There has been much technological advancement since it was started. Modernization and privatization has been carried out in the organisation. Outsourcing has been used in the British rail.

Areas where outsourcing has been used include customer support, human resources, training personnel and the recruitment of new employees. It is also done in the area of technological advancement and installation. These strategies have been beneficial in saving money and time. There is increase in business effectiveness, resource relocation and customer satisfaction. Critical evaluation however reveals that this venture is quite challenging and there is limit to technical flexibility. The employees are demoralized and the security in the organisation is at stake. All said and done, outsourcing in this organisation has been very beneficial.

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