People Express

Group No: 7
 Case Analysis
Founder
Donald Burr|1980 • Three Formal • Each Individual were
15 Top TI managers and levels of authority motivated to contribute
experienced staff joined to • It helps in minimal several roles.
discrepancy in • Jobs were kept exciting
form PE communication through continuous
Expanded from 3 DC-9s • Shared Furniture learning and exploration of
Flights to 17 Boeing 737 different roles.
Principals
Minimal Cross-
1.Service,commitment to Hierarchy Utilization
growth of people
2.Best provider for air Self
transport Work Teams Management
& Ownership
3.Highest quality of
management • Everyone in permanent
4.Role model for other • Small 3-4 person teams position was a shareholder
airlines and other businesses • Self chosen teams • Managers were peer
• Work assigned on basis on reviewed and actively given
5.Simplicity interest, skills and needs resources and assistance to
6.Maximization of profit • Rotation within teams improve

• Governance and Broad based Participation:
Burr was the top decision maker under
whom 8 general managers and 8 managing
officers each responsible for at least 13
functional areas
• Compensation-High rewards for High
performance: profit sharing plans for
employees and stock option bonuses
• Selective hiring of people express type:hired
employees who are capable of functioning
independently and taking initiative and
ambitious
• Training and Team Building:Training for CSMs
were designed to enable them perform
multiple tasks and gave more freedom
Downside of Peoples Growth Strategy
• Chronic Understaffing: recruiting staff was
working 10-12 hrs. daily , Staff required to
handle 17 plains was insufficient
• Job Rotation: Job rotation policy, performance
appraisal plans and governance plan was
partially implemented
• Human Costs: Rotation generalist were less
knowledgeable and sometimes performed less
efficiently than specialists, Long works hours
and stressful work environment