Essay on Continental Airlines Case Study

1420 Words Nov 25th, 2012 6 Pages
04 - 18 - 2012 Ariel Kramer

Frank Lorenzo, in 1986, owned one of the largest airline networks in the world. From a small investment in Texas International Airlines, after restructuring it and bringing the company to profitability, Texas Air bought Continental for $154 million. In order to reorganize the corporation as a more viable enterprise, Lorenzo took Continental into bankruptcy. This process caused a walkout by many union workers, so Lorenzo replaced strikers with nonunion workers at much lower wages. Low-cost operator and cut-rate prices was Lorenzo's way to
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Theory Y management style develops an open, dynamic and democratic, through which run becomes a process of creating opportunity, releasing potential, removing obstacles, encouraging individual growth and provide guidance on the objectives. His management style is democratic, creating opportunities and providing guidance on the objectives to the employee. It is up to administrators to provide conditions for development and recognition of characteristics such as motivation, responsibility and potential for development to employees of the company. In this method of administration, workers can improve their work through their attitudes and their relationship with other workers giving the firm a better place to meet its goals. We can say that on the Theory X, it is an inhumane theory that discards the fact that workers are human beings, normal people, and treat them as machines, as objects, or rather, as the property of the company. An employee who should do no more and no less than the work assigned to him, without making any complaints, criticisms or suggestions. A company that adopts the concepts of theory X, employees presents themselves unmotivated and lazy attitudes and behaviors, on the other hand, if one choose to Theory Y, people will interact and present motivational characteristics. Managing is not enough. Recognize the needs and capabilities of your employees are essential to good business development and

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