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UNIVERSITY OF MANAGEMENT

TECHNOLOGY
HUMAN RESOURCE MANAGEMNET
(MG-540)
FALL 2012

TITLE: (Continental Airlines: One


Company's Flight to Success)
ASSIGNMENT NO/WAC #: (2)
ID
1205103205

FULL NAME
MISBAH AHMED

2
1201409201

QURESHI
MUHAMMAD EHTSHAM

6
1205103208

WASIM JAHANGIR

S. #

LEAVE BLANK

SECTION:
(A)
DATE OF SUBMISSION:
6/11/2012
SESSION OF SUBMISSION: 51
FOR GRADING:
COMMENTS:

MARKS SECURED:

Introduction:
The Origin of the Continental Airlines dates to the 1934 formation
of Verne Speed Lines which operated airmail and passenger
services in the American South West. The carrier was renamed
Continental Airlines in 1937 and expanded its domestic U.S.
network in the 1960s with jet aircraft. Frank Lorenzo(CEO 19811990) took Continental into bankruptcy on Sept 23, 1983, after
unsuccessfully attempting to negotiate a lower pay rate with
labor unions. On Dec3,1990, continental filed for its second
bankruptcy in a decade.In 1993 Air Canada,Air Partners and Texas
Pacific Group , enabled Continental to emerge from bankruptcy by
investing $450 million in the airline. Under the leadership of
former Boeing executive Gordon Bethune, who became President
in Oct 1994, Continental began a successful transformation
project.
Situation Analysis:
Continental Airlines has a bad track record from 1981 to
1990.Continental Airlines become bankrupt twice in this decade
because of the leader and labour union relations.In this decade
continental employees face series of layoffs ,delaying wages, so
work force become
de-moralized. In 1994 when Gordon Bethune become the new
CEO, he took some frontline steps in which he done hiring ,firing
and outsourcing. Gordon Bethune put his strategies like giving
privacy to the executive offices and focused on cleanliness of
cockpits of airplanes includes workers in decision making process,
thats all about implementing Human Resource practices.

Gordon Bethune gave importance to customer services by the


strategy of incentive system for employees to achieve the no 1
ranking. When company started to make profit, Bethune paid
employees a postponed wages. In return ,employees became
loyal and Bethune has gained the confidence of his workers by
fulfilling their promises.

SWOT Analysis:
INTERNAL:
1. Strength:
Strenghts of the Continental Airlines are its Operational
performance and Strong Industry Position
2. Weaknesses:
Continental Airlines has overall weak Performance

EXTERNAL:
1.Opportunities:
Continental Airlines should Improve his logistics logistics and
Growth in Air line industry.

2. Threats:
Fuel prices and Competition are the major threats to
Continental Airlines.

Main Problem:
Main problem was implementation of HRM Practices.

Recommendations:

Continental Airlines should have better HRD strategies,


Innovations,Quality,Customer Satisfaction and in time
performance.

Case Questions:
Question # 1:
If you were the manager of a distressed organization what
specific steps would you take to turn the organization
around?
Answer:
If i was the manager of a distressed organization,then I would
have taken various steps to turn the organization around. First, I
would have made a business and marketing plans and
establishing short term and long term stretegies, also focused on
Human Resource Development plan.

Question # 2:

What are the primary causes for the sudden change in employee
morale at Continental Airlines?
Answer:
Primary causes for the sudden change in employee morale at
Continental Airlines was strong bonding between employees and
leader,Incentive system, pending wages and toll free numbers
for employees queries.

Question # 3:
What actions would you take, if any, to ensure that Continental
continues its improved performance over the next decade?

Answer:
I would have taken various actions that continues its performance
over the next decade like customer care & satisfaction,research
and development dept, Increase production, continues its
international expansions and partnerships with other Airlines

Question # 4:
Explain how different employee contribution techniques (e.g.,
teams, job enrichment, etc.) could serve to continually improve
Continentals performance.
Answer:

Employee contribution technique like pay and motivation, a merit


compensation plan that bases pay on performance.This can be
utilized towards individuals, groups or the entire organization's
performance.