Case Analysis: CASE TOPICE: - "PEOPLE EXPRESS"

PRINCILES AND PRACTICES
OF MANAGEMENT(MGN
101).
CASE STUDY
GROUP 6
GROUP MEMBERS:
Section- Q3310
1. SHUBHAM SINGH-11310998
2. HIMANSHU SINGH JADAV-11311965

3. AMRITPAL SINGH-11311440
4. TENZIN TSHLTRIM-11301249
CASE TOPICE:- PEOPLE EXPRESS

ACHNOWLEDGEMENT
FIRST OF ALL I WOULD LIKE TO THANKS PROF. GAGANDEEP
KAUR NOT ONLY BEING AN EXCELLENT ADIVISOR WITH AVAST
AMOUNT OF EXPERIENCE IN THE TOPIC OF PEOPLE EXPRESS
AND IN WRITING TEACHING CASE, BUT ALSO FOR BEING AN
ENTHUSIASTIC AND ENERGTIC PERSON, WHICH MADE THE
EXPERIENCE OF WRITING THIS DISSERTION MUCH MORE
ENJOYABLE.
SECONDLY , I WOULD LIKE TO THANKS MY PARENTS
AND FRIENDS FOR ENCOURAGING AND SUPPORTING ME
THROUGH MY COLLAGE EDUCATION. THIS INVESTMENT WAS NOT
MADE WITHOUT SOME SACRIFICES BUT HOPEFULL IT WILL PAY
OFF SOON.
I WOULD ALSO LIKE TO THANKS MY ALL GROUP
MEMBERS WHO HELPED AND SUPPORTED ME TO COMPLETE OUR
ASSIGNMENT WORK.
REPORT ANALYSIS:
This case study describes regarding the airline company named People
Express which provided equal importance to its employees initially, but
later on due to fast expansion of its operations, the company lost its
revenue ,as the time passed on, it started losing its employees too--- which
lead to the loss of good employees and finally company declared
bankruptcy. This case analysis showed the behavioral approach of the
company. The basic aim of this approach was to increase the
organizational effectiveness by increasing the effectiveness of its
human resources, which could be achieved by properly taking care of
its employees needs. The company followed the Maslows hierarchy
where at the bottom of this hierarchy are the lower level needs such
as physical and safety needs. At the top are higher level needs such as
need for respect and self-fulfillment. In general, the lower level needs
must be satisfied before higher level needs arise. Being aware of these
needs enables a manager to use different methods to motivate
worker.
COMPANY ANALYSIS:
STRENGTHS OF THE COMPANY:
A. No distinction between managers and workers / Participative style of

management:
Initially the company did not discriminate among its company workers and
managers .Every employees of the company had given equal importance.
Top executives like managers also helped its workers in carrying out their
duties, for instance pilots helped out in handling the baggage and passenger
comfort was given the top priority.
B. Job Rotation:
Employees, especially the top executives were rotated from job to job to
learn the major aspects of the business so that they can contribute to increase
the revenue of the company.
C. Opportunities for development of the Employees: The Company provided
the opportunity and encouragement to its employees in order to trained them
regarding the company in well manner.
WEAKNESSES OF THE COMPANY:

A. Fast Expansion: The company expanded its operations very fastly Lack
of infrastructure and operational resources did not correlate with the fast
expansion of the business.
B. Human Resources: with the change in the style of management from
participative to traditional style, the employees left the jobs. There is
unclear hierarchy to employees.
OPPORTUNITIES :
A. Lifetime opportunity and freedom of operation to the employees and
safety of their jobs.
B. Company was able to generate revenue by retaining its employees with

the five years of its formation.
C. Acquiring of the other major airlines to expand its business.
THREATS (Exactly not given in the case but some of the hypothesis
effects that could occur are):
A. New dictating policies driven by the founder of the company became one
of the major threat to its employees which lead to the unsafety of their
jobs.
B. External conditions: Poor weather, crashes or increase in fuel prices
might be one of the threats that could occur to the company.
C. Understaffing affect its operations.
D. Operating expenses and other debts was one of the major threat to the
company.
E.
CASE QUERIES WITH ANSWERS:

1. Do you think that the change from participating management style to
classic one contributed towards the final collapse of the people express?
Explain your reasons?
Ans: Yes, I think that Change from the participative style to classic one
contributed towards the final collapse due to the following reasons:
a. This strategy leads to the chronic understaffing which reduced the
profitability of the company: Employees were not able to speak , after the
new policies were dictated by the chairman of the company which lead to
the risk of the jobs to his employees. They lost their morale to do work
effieciently.
b. Unhappy and overworked employees affected the financial position of
the company: One of the director named Harold Parety of the company
quit from the company due to the overwork which he thought as insult of
his integrity. This leads to the tight position of the company which created
harmful situation for the company to save it from financial expenses.
2. Do you think that a particular style of management which is effective

when the company is growing is equally effective when the company has
grown large?
Ans. It could be said that, yes,a particular style of management is effective
when the company is growing is equally effective when the company has
grown large --on the basis of the case study of PEOPLE EXPRESS as we
have seen that a little change in the managerial style from participative
style of management to the classic one lead to the low morale of the
employees which in turn reduced the profitability of the company. Some of
the employees were fired for raising questions against the new policies,
some top executives left their jobs due to overburden .This hampered the
progress of the company and lead to bankruptcy.
3. a.why do you think Donald Burr changed his managerial styles ?
Ans.
a. Donald Burr changed his managerial styles as he
expanded his business.He did fast expansion of the
company to enhance the level of profitability of the
company.For this, he thought to change the policies so
that every employee could help him to raise the
productivity of the company by doing more work and by
providing their full efforts. But in turn, his harsh dictated
policies lead to the understaffing and unsatisfaction or
fear of safety of the jobs of the employees of the
company which resulted as a quit of the best executives
of the company.
B. Was he justified in firing Lori Dubose because
she disagreed with his managerial policies?

b. According to his new policies he was right to fired Lori
Dubose for raising queries as he changed his style of
management from family organization to traditional one
where nobody was allowed to raise queries against his
boss. So he was justified with his view point of new
dictated policies of the company
THANKS

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PRINCILES AND PRACTICES

2. HIMANSHU SINGH JADAV-11311965

CASE TOPICE:- PEOPLE EXPRESS

STRENGTHS OF THE COMPANY:

A. No distinction between managers and workers / Participative style of

WEAKNESSES OF THE COMPANY:

B. Company was able to generate revenue by retaining its employees with

CASE QUERIES WITH ANSWERS:

2. Do you think that a particular style of management which is effective

she disagreed with his managerial policies?

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