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Improving Delta

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Submitted By sweetjory01
Words 10181
Pages 41
Human Resource Management
Delta Case Study: Improving Delta’s Profit Margin
Written by Filiz McNamara, Ogochukwu Udekwe and Vicki Troftgruben

February 21, 2011

Table of Contents Page Introduction 3 External Environment 3 Internal Environment 18 Systems and Stakeholder Analysis 32 Conclusion 34 Problem Identification 36 Generation and Evaluation of Alternatives 37 Recommendation 38 Decision Implementation 39 References 40

Introduction
Delta Airlines was founded by C.E. Woolman, an agriculture extension agent (Anthony, Kacmar, & Perrewe, 2010). C.E Woolman was not a banker, venture capitalist or war pilot, as many of the competing airlines were. He didn’t have the aggressive military style that many of the other airline founders had. What C.E. Woolman instilled within the employees at all levels of the organization is that people matter and should be treated fairly and equitably. This philosophy led Delta Airlines to be the leader in customer service from the company’s inception through the many mergers over the years. Through the difficult financial times when other airlines were laying off employees and filing for bankruptcy, Delta continued to pay their people well and keep them employed. There was an exception during the Ronald Allen CEO era of 1987 thru 1997. Human relations took a significant down turn during his tenure as CEO, especially during 1993 and 1994, but Delta decided to part ways with Allen and began repairing those fragile relationships with its employees. Delta Airlines still focuses on the human relations factor and has been able to repair the relationship with its employees, they believe it is their key to success.
External Environment
General
The airline industry is a fast growing sector demonstrating a very strong growth rate. It is associated with a number of social and economic

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