분야
pptxHow AA was formed?
Success
Competitors
Case summary
Conflict between employees and AMR
Evolutions in air transport
External influences
American Airlines repercussion
Fairness: External / Internal
External fairness
Internal fairness
AA’s pay structure
First objective
An important negative profit…
… due to external shocks…
… and internal management…
… lead to reduce costs
Consequences
Second objective
Give bonuses in exchange to customer satisfaction
Business goals / Pay structure
Conclusion
Great deal in determining people's responses to the comparative evaluations
Feelings of inequity
Loss of group cohesion
Theft
Low quality
Withdrawal effort, leave
Increase turnover rate
Terrorist attacks in 2001:
Air traffic in US dropped of 45%
Passengers’ traffic dropped of 7.2% in 2001 and 4.7% in 2002
Iraq War in 2003:
air traffic dropped again in march 2003
Threat of competitors:
Southwest or Jet Blue have low cost prices and positive profit.
Good consequence:
Get away from bankruptcy
Bad consequence:
Employees are dissatisfied for 2 reasons:
First, because decrease of salaries
Second, because executives have big bonuses at the same time
6 years later, this problem persist
$375 million of losses in the first quarter of 2009
