People Express
Behavioural approach to management, generally based upon the conclusions drawn from the Hawthorne Experiments, proposes that productivity increases when the workers are recognized as important members of the organizational family. That is what People Express did. Every employee was given a share in the ownership of the company and life time employment security was offered to all. People Express become a classic example of organizational success and managerial effectiveness.
Donald Burr was the founder and chairperson of People Express. He has been credited with building a humane kind of organization where employees were given a great deal of freedom of operation. Since every employee was a part owner of the company, there was no class distinction between the managers and the workers. Managers helped workers in carrying out their duties, pilots helped out in handling the baggage and passenger comfort was given to top priority. Every employee was given the opportunity and encouraged to know the company well. Even top evecutives rotated from job to job to learn the major aspects of the business.
People Express was expanding its operations very fast. Within 5 years of its formation, it acquired Frontier Airlines and operational resources did not match the fast expansion. People Express experienced its first losses and with it, its managerial style changed. It changed from participative style of management and a family type organisation to a more traditional style. Donald Burr took charge of the airline and began dictating policies and it became risky for employees to speak out. Out of te ordinal architects of life time employment at People Express, Lori Dubose was fired when she started asking questions and speaking critically about some aspects of operations.  Similarly, another director of the company Harold Parety who was told to report to work at 6.00A.M. and stay until 9.00P.M., irrespective of whether there was enough work for him to do or not felt it to be an insult to his integrity and quit his job and formed his own airline.
Eventually people express declared bankruptey because it could not generate enough revenues to meet the operating expenses and other debts.

Questions:-
1.Do you think that the change from participating management style to a more classic one contributed towards the final collapse of People Express? Explain your reasons.
2. Do you think that a particular style of management which is effective when the company is growing, is equally effective when the company has grown large? Jusitify your explanation.
3. Whya do you think Donald Burr Changed his managerial style? Was he justified in firing Lori Dubose because she disagreed with his managerial policies.