Astro Airlines. Presented by Sara Weron. Astro Airlines Summary. Arthur Burton establishes Astro Airlines in 1980 Low-cost, no-frills airline Company emphasized quality, participative leadership, and self- management Despite early success, organizational problems eventually occurred
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Astro Airlines Presented by Sara Weron
Astro Airlines Summary • Arthur Burton establishes Astro Airlines in 1980 • Low-cost, no-frills airline • Company emphasized quality, participative leadership, and self- management • Despite early success, organizational problems eventually occurred • Company filed for bankruptcy in 1986
Problems with Astro Airlines • Problem # 1 • Organizational Problems • Lack of communication, overwhelming workload, and decision processes • Sub-problem # 1 • Lack of experiences management • Issues occurred in company, absence of managerial staff • Problem # 2 • Burton as CEO and President • Not capable of handling all issues, reluctant to hire a new company president, not able to keep up with trends of industry and major competitors • Problem # 3 • Internal problems associated with employees • Attempts of organizing unions, employees quitting jobs, and atmosphere different than original atmosphere of company
Alternative Solutions to Problem # 1 • Hire new employees for Astro Airlines • Pros • More work will get done • Room for communication • Employees are happy • Cons • Costs would be greater • Finding the right employees takes time • Additional time to properly train new employees
Alternative Solutions to Problem # 1 • Delegate certain tasks to specific individuals • Pros • Reduces overwhelming workload • Communication to higher authorities is minimal • Jobs are routine, making them easier • Cons • Dissatisfied employees • Employees not fit for their assigned task • Repeated tasks become boring
Alternative Solutions to Problem # 1 • Do absolutely nothing • Pros • Saves company money • Cons • Lower customer service • Unhappy employees • Company loses money long-term
Solutions to Sub-Problem # 1 • Hire outside experienced managers • Pros • Eliminate chaos and disorder • Time management will be more efficient • New insights on company projects • Boost team morale • Cons • Expensive • Requires time and resources to train new management • Existing employees could no longer be part of management
Solutions to Sub-Problem # 1 • Train current employees for management positions • Pros • Cost effective • Earn more respect from current employees • Employees can use past experiences to help with future problems • Cons • No expert advice • Old ideas • Resistance to change
Alternative Solution to Problem # 2 • Arthur Burton needs to hire a company president immediately • Pros • New innovative ideas • Less stress on Burton • Fresh start for Astro Airlines • Cons • New president and Burton may not see eye to eye
Alternative Solution to Problem # 3 • Company should hold a meeting to discuss employees’ needs and concerns • Pros • Open communication • Answers how goals be achieved • Employee satisfaction • Cons • Time • Resources • No solutions stem from the meeting
Recommendations • Astro Airlines should hire more employees and hire outside experienced managers • Arthur Burton needs to hire a company president • Astro Airlines and Burton should hold a company meeting to discuss what needs to be done in the organization
Conclusion • Astro Airlines will be successful if they implement new strategies • Need a clear vision of what their company will represent in years to come • Solutions are in the best interest of the company, not Arthur Burton
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