Question
What are the pros and cons of having a bureaucratic organizational structure for an airline? Do you think the pros and cons are justified for
- What are the pros and cons of having a bureaucratic organizational structure for an airline? Do you think the pros and cons are justified for United Airlines, and that they should keep the structure they have? Why or why not?
- What do you think United Airlines should do, moving forward from these incidents? Do you have any suggestions for enhancements or improvements to the United Airlines organizational structure? Would you consider restructuring? Why or why not?
References:
Case Incident 2: Turbulence on United Airlines
The beginning of 2017 was not good for United Airlines. Several incidents involving United Airlines personnel enforcing a variety of rules, regulations, and protocols in employees' interactions with customers caused international outcry. The first incident involved two teenagers who were wearing leggings for their flight from Minneapolis to Denver. They were stopped by the gate agent and not allowed to board for violating the United Airlines travel perk program. These travel perk passes hinge on a requirement for users of the passes to dress themselves so that the airline is presented in a favorable light. United defended its decision via Twitter: "Leggings are not inappropriate attire except in the case of someone traveling as a pass rider." Comedian Seth Rogan tweeted, "We here at @United are just trying to police the attire of the daughters of our employees! That's all! Cool, right?"
A second, more severe incident occurred when David Dao, a doctor who needed to see his patients the following morning, was aboard a Louisville-bound flight from Chicago in April. Four United employees needed to get to Louisville at the last minute, and it was announced that four people needed to give up their seats or else the flight would be cancelled. Attendants called the police after no one complied. The police approached Dao and forcibly removed him from the plane. Dao suffered a broken nose and concussion after his head smashed into an armrest. United policy allowed for the involuntary removal of passengers from flights, although this time United was not as defensive. Dao later filed a lawsuit against United for its actions.
A third incident, in Houston, involved a soon-to-be-married couple, Michael and Amber, headed to Costa Rica for their wedding. When they entered the plane, they noticed a man sleeping in the row where their seats were assigned. Instead of disturbing him, they found some seats three rows up and sat there instead. They were soon asked by an attendant to return to their seats and they complied. A U.S. marshall approached them soon after and ejected them from the plane. According to United statements, the couple "repeatedly" tried to sit in upgraded seats and would not follow the instructions of the attendants and crew members, and, as such, they were within their power to eject the passengers.
These incidents suggest that, starting with the structure as created by the CEO, United employees do not have much latitude or flexibility when dealing with day-to-day policy breaches. Taking cost-minimization and efficiency-boosting strategies to the extreme may also have had an effect given that the focus drifted from the customer and toward rule following. Many attribute this inflexibility to the strict, rule-following bureaucracy created by United managers. In this bureaucracy, their 85,000 employees may be reluctant to deviate from the rulesintracompany historical precedent suggests that many employees face termination if they break the rules.
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