An American Low Cost Airline

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People Express was an American low-cost airline that operated from 1981 to 1987. They disrupted the airline market by taking advantage of the deregulations of a lot of aspects of the airline industry. He developed a groundbreaking company that shifted the market, but all of this wouldn’t have been possible without their equally as groundbreaking human resources strategy. He took a different approach on running and managing his employees that instilled an innovative, free, and accommodating structure that really set People Express apart. Don Burr, the founder of People Express, wanted to do things differently. He developed a list of goals and objectives that he called “precepts” that laid the framework of his company culture. This …show more content…

That we felt would over time lead to a highly profitable enterprise.” (Holland) Allowing his employees to be put in a position where they were the ones moving the needle and given position titles that all had the title of “manager” in them empowered People Express employees to rise to a higher standard. Don Burr’s philosophy of human resource management was truly effective in this regard. Additionally, Burr expected all of his employees to be “self-managed” and participate in corporate decisions. They were not just monkeys being told what they do, but they were true stakeholders within the company. The employees were also cross-utilized well. Employees cycled through positions throughout the company. They were expected to be flexible and adjust to the needs and demands of their customers. Being cross-utilized means that not only do have many different hats you wear, but with these hats you are better able to make decisions with a larger perspective of how it will affect the airline. This was intentional in the philosophy of human resource management that People Express led with. This philosophy was ingrained in the nature of the positions at People Express, the compensation, and the culture. All of this being said, People Express faced some major difficulties. The philosophy that made People Express explode in growth in the earlier years ultimately led to a

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