Analysis of People Express's HRM Practices and Management Strategies

This report analyzes the human resource management (HRM) practices of People Express, with a specific focus on Don Burr's leadership and strategic decisions. The report examines the effectiveness of the company's HRM approach, exploring its strengths and weaknesses. The analysis includes an assessment of the financial implications of HRM decisions, the impact of staffing levels and employee compensation on morale and productivity, and the challenges associated with rapid growth and organizational structure. It also critiques Don Burr's approach to employee relations, decision-making, and risk management. The report concludes with recommendations for improving HRM practices at People Express, addressing issues such as employee welfare, staffing, and the integration of financial planning with HRM strategies. The report highlights the importance of a well-structured HRM system for organizational success, emphasizing the need for a balance between employee needs and business objectives.

1. Is the People Express approach to human resource management effective? Why
or why not. Explain scholarly.
No. People Express did not build a financial model to see if they would profit. For me,
foundation in forming an organization or company is very important. This foundation
includes process of acquiring, training, appraising, and compensating employees, and
of attending to their labor relations, health and safety, and fairness concerns. In Human
Resource Management it is very important to direct your employees with their concerns
since they are the manpower of your organization. You have to team-up with your
colleagues and employees in planning what is good for the betterment of your
organization or company. It helps bridge the gap between the performance of the
employees and strategic goals of the organization. Additionally, an effective and
efficient human resource team will give businesses an advantage over their rivalry.
2. Analyze Don Burr’s Philosophy of human resource management. What advice
would you give him to improve HRM at People’s Express?
Don Burr has wanted everyone to contribute to decision-making at the policy stage
through executive councils, consulting boards and personnel committees. Workers are
rotated constantly to keep costs down and high productivity. This led to procedures
which are quick. There are many weaknesses in Don Burr’s kind of human resource
management for example in financial, he avoided to additional revenue by refusing
cargo shipment. As an entrepreneur, we must consider risk-taking in the very first place
because Successful entrepreneurship involves taking risks. If you don't embrace risk-
taking, you may want to rethink being a business owner. Taking risks, however, does
not mean going into business blindly and then expecting great results. Taking risks in
entrepreneurship involves careful planning and hard work. Other problems are seen in
human resource such as overworked employees, understaffing, difficult recruiting
standard and management hierarchy. Staffing is very important in any organization or
company because it helps to ensure better utilization of human resources. It ensures
the continuity and growth of the organization, through development managers. There
are also threats in his business like the employees gain seniority which should
compensate with a higher wage. As a manager you should value the welfare of your
employees since they are the manpower of your company. Because of Burr’s large ego
he made his employees unhappy due to overwork because of understaffing. His
employees experienced low morale which led them to unionization. For me the staff
plays a vital role in the organization since they are the workforce of it. Without them the
goals you have set in your organization will never be achieved.