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People Express

This consultation proposes that the overall corporate culture of People Express is steadily eroding. In the face of rapid growth and expansion, the company is also facing decreasing levels of employee satisfaction. The three main problems areas are: management lack of communication; poor work design; unsatisfactory compensation motivators. The various issues encompassed in all three problem areas are addressed. With respect to the main focus of this report, compensation problems are addressed with conclusions, recommendations and long-term outlook. The conclusions express that the two biggest problem areas with compensation at People Express are an unfair pay structure and inadequate gain sharing plans. The conclusion also proposed is that the old system should remain in tact, except for modifying these problem areas, since it has been fairly successful.

The recommendations proposed are: adopt gain sharing plans modeled on Starbucks and include stock option plans that are effective and meaningful. Where the future outlook of People Express is concerned, it is recommended that in order for them to acquire the calibre of quality employees they are looking for, and to increase satisfaction in those already working for the company, they must implement compensation plans that offer employees what they originally promised them where ownership and lifelong job security are concerned. Where risk factors are involved, it is proposed that the company increase employee satisfaction and listen more to employee input if they expect to carry over the ingredients that have made them successful up to now in the large numbers of new employees (and present ones) needed to make their aggressive growth plans successful.

There is an overall problem at People Express with regard to Human Resources-erosion of the Corporate Culture. However, this macro-problem can be reduced to three sub-internal micro-problems: lack of management communic...

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People Express. (1969, December 31). In LotsofEssays.com. Retrieved 04:55, March 28, 2024, from https://www.lotsofessays.com/viewpaper/1686089.html