astro airline case analysis

5
qwertyuiopasdfghjklzxcvbnmq wertyuiopasdfghjklzxcvbnmqw ertyuiopasdfghjklzxcvbnmqwe rtyuiopasdfghjklzxcvbnmqwer tyuiopasdfghjklzxcvbnmqwert yuiopasdfghjklzxcvbnmqwerty uiopasdfghjklzxcvbnmqwertyu iopasdfghjklzxcvbnmqwertyui opasdfghjklzxcvbnmqwertyuio pasdfghjklzxcvbnmqwertyuiop asdfghjklzxcvbnmqwertyuiopa sdfghjklzxcvbnmqwertyuiopas dfghjklzxcvbnmqwertyuiopasd fghjklzxcvbnmqwertyuiopasdf Case Analysis on Astro Airlines Submitted to: Assist. Prof. Jyoti Regmi Adhikari 8/2/2015 Amit (14325) and Jay (14335)

Upload: amit-pathak

Post on 17-Aug-2015

263 views

Category:

Documents


18 download

DESCRIPTION

Astro Airlines Case Analysis

TRANSCRIPT

Case Analysis on Astro AirlinesSubmitted to: Assist. Prof. Jyoti Regmi AdhikariAmit (14325) ad Jay (14335)qwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqAmit (14325) Jay (14335)Synopsis:This case is all about failing to manage success after successful beginning. The case deals withthe ositi!e and negati!e asects of the "harismatic leadershi. This case re!ol!es around theleader of Astro Airlines Arthur #urton who could not maintain the growth of its comany. Thecase is di!ided into two arts first highlighting the success of Astro airline in site of the roguemar$et. The other art deals with how a comany that met success so fast fell aart because of itsinability to manage its own success. %hen the charisma of a leader ta$es the shae of arroganceand infle&ibility the team is destined to brea$ and failure is unstoable. Arthur #urton sets u ateamof moti!atedstaffs whosharehis !isionandta$ethe!enturetoimmediatesuccess.'owe!er he is so muchblindedbythe successhe failsto imlement necessarychangesandultimately the comany files for ban$rutcy.Issues:1. Assess #ruton(sleadershibeha!iour andanalyse whether #rutonwas a successfulleader at the start of the comany or not)2. %hy charismatic leadershi aroach that had wor$ed so well for #urton in the initialhasewouldlaterbac$fireandleadthecomanytowardsban$rutcyandalsoassesswhere did #ruton fail as a leader)Analysis1. Arthur #urton leadershi beha!ior too$ on many characteristics of the attribution theoryof charismatic leadershi. #urton had a clear !ision which was *uite different than themainstreamthin$ingoftheday.+tin!ol!edtwoelements.,irst-Astro Airlineswouldoffer .ow/cost- no/frills ser!ice to customers who could not afford to fly. 0econd- thecomanywouldofferadifferent wayofha!ingemloyeeswor$togetherthat wouldresult in more creati!ity and imro!ed roducti!ity. 1any emloyees regarded #urton asan insirational leader because he was dynamic- ga!e emotionally stirring seeches- andenthusiastically taught and affirmed his !isit. The boo$ did not secify that he himselfsacrificed for the good of the comany. +t is assumed #urton did because of his threele!els of management organi2ation emhasi2e e*uality- informality- articiati!eleadershi- and self/management. #urton was confident about his business model. +n theAmit (14325) Jay (14335)beginning- many emloyees bought into his enthusiasmand confidence that theye!entually achie!ed success and assenger !olume e&anded raidly.2. "harismatic leaderhi has its own disad!antages too. +n the initial hase- when #urton(sleadershibrought unrecedentedsuccess inhis comany- his emloyees andstaffsassigned him a 3charisma(. The truth about charismatic leadershi is that it doesnt ha!e adomain of functionality or results- instead 3charisma( is felt and is actually assigned byothers. #urton was already a !isionary and an emotionally intillegent erson (hisseeches were e!angelical). The success he brought tothe comany- addedtothee!angelical he- immediately led his emloyees (followers) to assign him a charisma. +nthe initial hase the charismatic leadershi of #urton wor$ed because his followers wereidentified with his charisma/ they trusted him- they thought their own !ision aligned withhis- simle ut- they were blinded by the light he bestowed and e!ery rationale or logicwas outcasted(the hea!y wor$ load-the waymanagers wereforbiddentodictateanyrules- e&ecuti!es ha!ing to answer their own hones and write their own letters/ all ofthese seemed !ery !irtious.).#ut charismaticleadershihasaslight littleroblem/3"harisma( is!eryaddicti!einnature4 sooner or later the followers awa$e but the leader $ees on sleeing or dreaming.The e&act same thing haened in Astro airlines. #urton was !ery much identified withhis 3charisma( and he was !ery much reluctant to gi!e it u. 'e became delusional ando!erconfident/ his 3charisma( diluted his 5udgement and he retreated to the fantasy that hecould sol!e anything- infact he thought the mere resence of him would sol!e anything.'enceheassumed theostofthe resident by himself and refused torecruita moredeser!ing candidate to the ost. Theother thing#urtonfailedtodowasinstitutionali2ehis3charisma(. #yha!ingainstitutional attern he could ha!e secured his charismatic leadershi and e!en transfer it."harismatic leadershi is generally !ery unstable in nature because this sort of leadershie&cites the short/term neurosis of the followers (the reason why 3charismaticAmit (14325) Jay (14335)leadershi(is thought to be highly romantici2ed). 0imly ut- it is li$e falling in lo!e/short and sweet.To summari2e- #urton with his leadershi aroach had the following shortcomings6 #urton had a belief that the team has been success only because of him and the obsessionled him highly arrogant. 7issatisfaction among emloyees with him and his belief. They were in awe of #urtonand belie!ed in his business lan which e!entually reduced oortunities to incororategood suggestions from them. .i$e many charismatic leaders- he was loc$ed in to his !ision of the business lan andwas unable to ad5ust or listen to changes. 'is confidence and otimism miscalculated the roblems that were around the corner. #y saying that he was the founder and largest shareholder alienated many emloyees.