Continental Airlines Case Study

Continental Airlines Case Study
Continental Airlines Case Study

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Continental Airlines Case Study

Question One

The manager is expected to carry out the following steps to turn an organization around:

  1.  Establish all the facts.

In this Continental Airlines Case Study,the manager must establish the short term viability of the business. He has to carry out rapid internal exercises focused on existing contracts, commitments and also cash flow analysis. The contracts that may not be viable must be terminated. The manager can then assess the one year and two year viability of the business. This may require additional liquidity in form of debt or equity to finance the activities of the company.

  • Know what went wrong

The major cause of the problem should be known. If the company performed poorly due to sudden market changes or due to minor internal issues that took long to rectify, it should be known. The management must then come up with a remedy. 

  • Budget

The manager must prepare budget which must be stuck to. This will control costs and spending in the organization. The company will be able to maintain its solvency.

  • Changing the team

The manager should reconstitute the senior management team. Those brought on board must have positive attitude towards changing the performance of the company.

Continental Airlines Case Study

Question Two

The change in the morale of the employees is due to the recognition and appreciation of their performance. The implementation of several award schemes has created internal competition among the staff in delivering services to customers. The adoption of new appraisal practices by the management has also motivated the employees.

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Question Three

In order for Continental Airlines to continue with its good performance the management should do the following:

  1. They should form teams with specific goals to achieve. Each team should have its policies, procedures and standards that are in line with the overall company strategies. The head of each team should monitor and communicate performance to the top management of the company.
  2. Each of the teams must have an annual business plan covering revenue and costs forecasts, product development and set performance targets. All these must fit into company business plan.
  3. Each team must hold a monthly review to assess their performance against the plan. They will be able to determine how the planned targets will be achieved and also identify any difficulties in the process. They will be able to share knowledge and also develop tactics to achieve set targets. They will also be able to reallocate resources to more competitive market ventures and redesign any strategies that are in non conformity with the plan.

The top management should attend these meetings so that they have detailed knowledge of the plans. It will be easy to measure and maintain growth in the long run for the company.

Question Four

The use of different employee techniques like job enrichment will improve the performance of Continental Airlines since the staff morale will be very high. The members of staff will own the management decisions made (Gregory, 2010). They will be enthusiastic to go out of their way andensure set targets are met. The recognition creates a sense of commitment among the staff to deliver fully.

They will feel their efforts are being recognized and, appreciated. The targets which are set are attainable and within their reach. This creates internal competition amongst the staff to deliver on these targets. This working environment will ensure the company will continuously improve on their performance.


Gregory, T (2010). Employee  Motivation. Cambridge. Cambridge Press, P.19

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