From the human resources management point, the primary problem appears to be in the distinction between the organizational climate and organizational culture. The climate does not support the culture, which appears to be integrated. In the case analysis, there are large inconsistencies and nonconformity between the components of climate such as unclear sense of direction, unclear role definition and responsibilities, nonuniform standards and commitment, unequitable rewards, and faltered focus on customer vs. internal pressures.

In my opinion, the management of People Express needs to align the climate of the organization to accommodate the culture by providing clear mission direction of objectives and goals of the business, resolve the chronic understaffing issues, change the structure of cross-utilization and the equity to improve the role and responsibilities of employees, and create a balance between work and personal life.

CONCEPT & CULTURE (PEOPLE EXPRESS)

People Express has a revolutionary work environment based on the concept of worker empowerment. This empowerment stems from the management’s perception of Theory "Y" about workers, which says that all workers are driven to excellence unless they prove otherwise. In addition to the concept of people focus and trust, the marketing strategy and cost structure are the inherent driving factor for everything else that People Express wants to do, which is contrary to how other similar airlines are doing business in this deregulated period.

People Express’ current culture appears to be exceptionally integrated into the organizational. The components of the culture such as beliefs, perception, values and attitudes are integrated and accepted by the employees and are in-line with the organization goals. In addition, the basic dimensions of the culture such as direction, pervasiveness, and strength are also well integrated perhaps because of the concept of worker empowerment. In addition to becoming a financially successful business, People Express has also shown positive growth in the area of personal growth, which is an indication of acceptance of the norms of the organization.

EMPLOYEES AND PERFORMANCE

Between the date of incorporation and mid-1982, People Express has had phenomenal performance. This performance can be characterized by the philosophies and motivation of the workforce and the unique idea that all workers, within the job cluster, are part owners of the business and are responsible for the growth of the company. The cross utilization and cross functionality of the duties assigned and self management concept is the motivational factor for the workers to succeed in their personal, private, and organizational goals.

HUMAN RESOURCES PROBLEMS OF PEOPLE EXPRESS

However, having given praise to the concept, culture, and phenomenal performance, it is fair to say that trouble is starting to brew in the paradise. The irony is in your own statement "keep in touch with what’s important’ and "not lose sight of their humanity". What’s important is the growth of the company in terms of profits, growth, and success. However, this importance is overshadowing the humanity factors because of chronic problems in understaffing, lack of personal growth, unequitable compensation for the employees, the disintegration of team concept, and unclear expectations of vision and values. These indications are the frustration of the employees by the climate created by People Express. There is a distinction between the climate and culture. Although the culture of the organization is well accepted, the organization climate does not support the culture. Issues such as sense of direction, role and responsibility, standards and commitment, fairness of rewards, and focus on customer vs. internal pressures, standards of excellence are clearly disintegrating.

Culture is integral and is difficult to manage or alter because of underlying values and meaning systems in place, however, organizational climate is easier to manage and alter if the management wants to initiate any success and growth strategy. In my opinion, the following are the inconsistencies in the organizational climate:

If the issues such as chronic understaffing, worker empowerment under a culturally non-aligned climate, and other core issues are not addressed, the business maybe heading for trouble especially with continuing growth. The following are my recommendation to the management of People Express to alleviate the current negative climate: