Name- Riya Banthia PRN - 21060322124

Case Incident: Turbulence on United Airlines

(Based on sessions/topic “Organizing Structures”, Source: Textbook on Fundamentals

of Management by Stephen Robbins)

Please answer the three questions, in not more than 500-800 words each, following the
Case Incident.
Rubric:
● 30% for direct descriptions/definitions
● 70% for critical insights

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 favourable light. United defended its
decision via Twitter: “Leggings are not inappropriate attire except in the case of someone
travelling 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 rules—intracompany historical precedent suggests that many employees
face termination if they break the rules.

Questions:

1) How do you think United Airlines should have handled the recent string
of incidents? Do you think United Airlines was within its power to have
removed these people from the flights? Why or why not? 5 marks

ANS- The manner that United Airlines handled the series of accidents or incidents
should have been substantially different. The first time the teenagers were denied
boarding by the gate agent for breaching the United Airlines travel perk policy by
donning leggings. Instead of preventing the two adolescents from boarding, the gate
agent could have given them a full explanation of the programme and made an effort to
persuade them to change their leggings once they were on board the aircraft. On the other
hand, United Airlines justified its actions by claiming, "Leggings are not inappropriate
attire except in the case of someone travelling as a pass rider."

In the second occurrence, Dao's head collided with an armrest, resulting in a broken
nose and concussion. The airline had every opportunity to avert this disaster. These
individuals, for example, may have been persuaded to give up their seats by being
provided gift cards or bonuses for airline tickets rather than being forcibly removed from
the aircraft. If this did not work, the airline could have guaranteed passengers a place on
the earliest departing flight as everyone still paid for their seats. Additionally, United
Airlines should have sent Dao their deepest apologies when the flight police injured the
doctor. They must have pledged to take action to ensure it never occurs again.

In the third instance, the soon-to-be-married couple was kicked off due to changing
seats as someone was sleeping in their seats. The flight attendant should have identified
the couples' incorrect seating choices and moved them to the proper seats instead of
ejecting them from the plane or later saying that the couple was trying to move to
business class.

I assume United Airlines lacked the authority to deny these passengers boarding. The
teenagers initially had a complete choice in what they decided to wear. In the second
situation, the doctor did not necessarily have to be one of the four people who had to
give up their seats. The couple picked the wrong seats in the third occurrence because
other individuals took their original ones. The cases demonstrates that United Airlines'
actions violated the rights of its passengers and even jeopardised the doctor's safety.
United Airlines lacked a managerial position to give orders as a result.

In a similar instance, a passenger who bought a total-price first-class ticket was asked to
give up his seat. "They needed the seat for somebody more important." The passenger
cited what the gate attendant said, "We have a priority list, and you're at the bottom of
it."

There is no justification for United to treat its passengers in this manner. However, there
may be a valid justification for them to do so—for example, if they unintentionally
overbooked their flight—that does not in any way give them the right to expel their paid
customers. First off, all of the passengers bought their tickets before boarding.
Furthermore, they barely hampered the flying at all. United Airlines was not within its
power to remove these people from the flights.

The passengers did not deserve the improper and unfair treatment by the crew members
because they had paid for their seats. These incidents, which resulted in a significant loss
of consumer confidence in the airliner's services, may have been avoided by United
Airlines. The airline lacked the authority to eject passengers for no fault of their own.
Furthermore, the company's response to the incident is as shocking because they did not
express regret for their behaviour and encouraged it.

2) What are the pros and cons of having a bureaucratic organisational

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? 10 marks

ANS- A bureaucratic organisational structure comprises highly routine operational

tasks completed through specialisation, highly formalised rules and regulations, tasks
organised into functional departments, centralised authority, constrained spans of
control, and decision-making that adheres to the chain of command. A very
well-organised structure, a bureaucratic organisation has organisational charts for each
department with a high level of formality. For airlines, bureaucracies are designed to be
highly effective. Additionally, given that an airline often has divisions for operations,
maintenance, marketing, and finance, some advantages of a bureaucratic structure for an
airline include:

So, to begin with, the borders inside the bureaucratic organisational system are rigid. It
will operate according to a set operating system. Airlines using this organisational
structure have clear laws and rules, which helps to standardise daily operations. In
handling duties and incidents, officials and staff must follow instructions and
procedures step by step. Results will fall within the intended range if done this way.

Secondly, bureaucratic organisational structures are indeed "top-down" structures

focusing on conformity. This organisational style is often associated with highly efficient
airlines. Bureaucratic organisations are more effective at organising as it has a central
authority. Individuals working in the departments will have unique responsibilities and
roles. A bureaucracy's structure provides more job security than other types of
regulation. In this approach, management will be able to keep an eye on how those in
lesser positions are performing. Furthermore, there is a good chance that tasks will be
completed in a methodical and timely manner if rigorous rules and standards are
followed.
Furthermore, favouritism is frowned upon in bureaucratic structures. It establishes a
system in which equality is prioritised. Political pressure takes a backseat to the
influence that comes from doing well and consistently. This implies that friendships do
not influence the results that are produced. As a result, everyone who works hard has an
equal chance of success.

Last but not least, Organisations or governmental institutions with established policies
and processes can be easily combined due to the mechanical nature of bureaucracies.

Now speaking of some of the disadvantages of bureaucracies, the pro of having a rigid
system is one of its main cons. Some workers dislike bureaucratic structures because
they rob them of their independence. What the laws or rules desire determines how
things are done. Even though it is the appropriate thing to do, a worker who violates
those regulations or laws without authorisation risks incurring repercussions like losing
their job or even going to jail. Because bureaucratic organisational structures are rigid,
they may lead to conflicts between employees and passengers. We can see from the case
that a lack of flexibility in flying operations dramatically increases the risk of an airline
controversy.

Secondly, it may make it harder to obtain outcomes quickly. This implies that much time
can be squandered, especially if choices and outcomes are required immediately. When
an event occurs, airlines with this structure typically adopt actions that are disconnected
from reality. The issue is that the airlines consider the rules and overlook the incident
itself. A bureaucracy takes time to develop new rules and regulations to adapt to new
surroundings. It can take so long that the bureaucracy has yet to adjust to the initial
evolution before a second one occurs. It might have an impact on output.

Similarly, Employees will be critical of repetitive duties in specialised occupations. It

might become monotonous for the organisation's employees, and many reportedly
cannot handle performing the same thing every day. Keeping up with repetitive routines
can be challenging if there is no goal or vision behind the acts. It is possible for
employees to pursue merit-based promotions based on their competencies, but there is no
assurance that this will happen right away. Productivity may not decrease under
quota-based systems but will not increase.

Therefore, airline bureaucracy's organisational structures promote a configuration of

both inefficiency and efficiency, which can lead to a battery of boredom, which makes it
challenging to maintain strong morale within them.

Thus, I firmly believe that United Airlines should maintain its bureaucratic organisation
despite its drawbacks because, in my opinion, both the benefits and drawbacks are
necessary for United Airlines. On the one hand, an airline still heavily relies on its
bureaucratic organisational structure. It guarantees that an airline can operate
effectively with its control and ordinance. On the other side, United Airlines needs to fix
the structure's flaws, such as its shoddy laws and regulations, and develop
customer-centric concepts that do not lead to passengers being ejected from the plane or
having concussions. They should try to understand as how to implement the rules. In
order to continue ranking among the top-largest airlines in the US, they should
maintain their current structure. In light of this, United Airlines should maintain its
bureaucratic structure and work to mitigate its drawbacks.
3) What do you think United Airlines should do in the future? Do you have
any suggestions for the enhancement or improvements to the United
Airlines organisational structure? Would you consider restructuring? Why
or why not? 10 marks

ANS- One of the best and most rapidly expanding airlines is United Airlines, having a
high market value. United Airlines follows the spoke-hub model and makes money by
running a network of hubs that act as the sites of origin for routes. Since the airline is
doing well, I would not contemplate restricting the entire process and protocols;
instead, they should focus on improving specific areas to help ensure a safe flight and
enjoyable airline experience. The airline does not need to start over or reconstruct itself.
However, if they make a few structural changes, they will be able to perform better in
the future.

Firstly, as in the case of united airlines, they have stringent regulations, leading to
enormous problems, such as the legging incident. In today's age, anybody should be
allowed to wear whatever they want. The laws and regulations need to be modified; my
recommendations would be to relax the standards and make them more professional,
putting more of an emphasis on the specifics of flight service and accident management.
They can improve their offerings, boosting brand awareness and reputation. The
employees labouring for United Airlines will also profit if they slacken up their rules as
they have to act in accordance with the rule structure. This does not allow them to judge
or behave in what they feel is suitable or inaccurate, resulting in nuisances, so United
Airlines should loosen up the strings a bit.

Because of the features of an airline company, the organisational structure should be

built on the value of the passenger. United Airlines might become more well-known
when it strives to offer outstanding customer service. As the Airline passengers view
service quality as a nuanced issue, various factors, including attendees' attitudes,
feelings, and other socioeconomic factors, influence their overall happiness. Here the
sense of security and safety also plays a significant role. Due to some incidents, United
Airlines has lost respect in that area, so they should improve more on that. The first way
in which they can do that is by acknowledging their actions rather than palming off
responsibility. Apologising to all the passengers, they kicked off or asserted physical
violence should receive a public apology, restoring their lost value while giving the
impression that they care about their passengers.

The consumer base and customer loyalty can also be captured by focusing on frequent,
loyal travellers. Providing them with frequent schemes and offers will help them
maintain their customer base. They should always prioritise looking out for their clients,
addressing their issues, and making them happy.

One of the most important things that the airline should do is to make their employees
capable of managing an event while on a flight and discuss various elements to take into
account. If only the flight attendants had handled the couple's and Dao's incidents
differently, it would not have required the use of physical force and could have been
easily averted. They should always prioritise the passenger's demands first when dealing
with a predicament. Thus, prior to responding or acting, one should first listen. United
Airlines should always endeavour to make rational decisions that are tailored to their
targeted audience, based on data, and satisfy their customers' distinctive or diverse
requirements.
Customer input is the final factor that contributes to the success of any organisational
structure. One of the finest methods to find out where the airline might improve is to
follow up with passengers who have just flown on it. To improve the airline, talking to
the passengers about their experience without being dismissive or defensive and asking
them what they did not like about the flight or what they believe should be improved
will provide significant knowledge for improvement.

Knowing the Customer Satisfaction Score(CSAT) would also help a lot. “How satisfied
were you with the airline?” This is a question that appears in a customer
satisfaction survey, which is how the customer experience metre, or CSAT, gauges
enjoyment with the service or customer support encounter. Surveys can therefore be
used to learn about the opinions of consumers, both favourable and unfavourable, and
what they thought of the airline's service. Additionally, keeping track of the Airline's Net
Promoter Score, which is also assessed through a survey or feedback form that
customers fill out, will help identify the proportion of consumers who are pleased with
the airline's customer service and would enthusiastically refer the airline to their friends
and family.

Hence these are all the changes and implementations that United Airlines should make
without completely reconstructing itself. This will make the passengers less cynical, and it
will be helpful as the airlines will let it be known that customer or passenger satisfaction is
most crucial to them.

References-

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https://www.denverpost.com/2017/04/12/heres-how-united-should-have-handled-its-p
ublic-relations-nightmare/
- Gary Leff, united. (2017, April 27). United unveiled its response to the passenger
dragging incident and plan to end involuntary denied boardings. View from the Wing.
Retrieved November 21, 2022, from
https://viewfromthewing.com/united-unveiled-response-passenger-dragging-incident-p
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