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Essay / Research Paper Abstract
This 3-page paper discusses People Express Airlines and the reason for its decline. Topics presented include marketing, human resources and leadership. Bibliography lists 1 source.
Page Count:
3 pages (~225 words per page)
File: D0_MTpeopexpr.rtf
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Unformatted sample text from the term paper:
many to enter the market, seeing opportunities and ways to do things better and more efficiently than the standard carriers. The airline was sold, however, in 1986, despite revenues of
close to $1 billion, and despite being the darling of the business media. From the outset, PE founder Donald Burrs goal
was to provide an airline that would offer convenient flight schedules at very low prices from an innovative organization that had six precepts: Growth and development of employees; high-quality leadership;
outstanding air transportation; simplicity; to serve as a role model - and to maximize profits while doing all of the above.
PE further helped its cause by flying routes that were, at the time, ignored by the major carriers. The problem is
that the things that made People Express successful also became liabilities. The airline became a victim of its own success. The idea of empowering employees by making them all "managers"
was pretty good, and developing a flat organization during a time when vertical hierarchy was also ahead of its time. Burr wasnt a micro-manager - his feeling was that if
employees wanted to try ideas and make decisions that matched the "precepts," they wouldnt require approval. Furthermore, the idea of "cross-utilization," in other words, putting employees in different spots where
the need was greatest, also was good, at least in theory. The problem was that, in reality, cross-utilization meant people didnt
feel as though they could learn their jobs completely. Because of the huge demand from customers, employees were working longer hours, and new employees couldnt be hired fast enough to
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