Cedar Georgevich: The Management Of Jet Blue
Cedar Georgevich
1) The management of Jet Blue accomplished being both effective and efficient utilizing a flat organizational structure. Unlike a typical expanding business, Jet Blue maintained a small business feel and did not develop numerous layers of management that characterizes a tall structure. Neeleman remained the one and only chief and CEO while his initial partners expanded on their positions and managed the associates. Neeleman and his partners made all vital decisions from the start to present. Most important of which included which plane to purchase, which routes to fly, where to set up headquarters, and whether or not to become a unionized corporation. None of these decisions were made by the associates reflecting a purely
centralized organization. All of the associates from the airline stewardess to the pilots had to report to the hierarchy of managers. Efficiency and productivity were essential for the success of jet blue. To accomplish this functional departmentalization was utilized. Jet Blue’s most important divisions included human resources, reservations, and flight operations. Similar to the departmentalization, the structure of the company was functional as well. Its basic business functions were handled by Neeleman’s partners who specialized in their fields creating a very smooth and effective system. This structure exhibited a learning organization. Not having a union surely created a team environment throughout the company. Safety, Fun, Caring, Integrity, and passion were the values looked for in each potential employee. The HR department worked hard to ensure that there was a constant improvement in employee work ethic. Focusing on what the employees wanted through customized employee packages created an environment in which there was an ongoing desire to become a better and more effective employee.
2) The first plan of action taken by Jet Blue to prevent failure was to over-capitalize the start up of the company. Instead of 30 million he obtained 130 million. This ensured that funds would not run out as did with numerous other attempts to start an airline. The utilization of technology and creation of the paperless airline was also key in ensuring the success of Jet Blue. This innovation cut down on lines for costumers and improved efficiency allowing the company to employ fewer people therefore providing lower airfare prices. E-Tickets were also created which cut down on booking agents and also decreased the wait to board. The other critical aspect of Jet Blue’s success was its choice to set up its headquarters at JFK, which within ten miles had 2.5 million potential customers dreading the current high cost of flying.
1) The management of Jet Blue accomplished being both effective and efficient utilizing a flat organizational structure. Unlike a typical expanding business, Jet Blue maintained a small business feel and did not develop numerous layers of management that characterizes a tall structure. Neeleman remained the one and only chief and CEO while his initial partners expanded on their positions and managed the associates. Neeleman and his partners made all vital decisions from the start to present. Most important of which included which plane to purchase, which routes to fly, where to set up headquarters, and whether or not to become a unionized corporation. None of these decisions were made by the associates reflecting a purely
centralized organization. All of the associates from the airline stewardess to the pilots had to report to the hierarchy of managers. Efficiency and productivity were essential for the success of jet blue. To accomplish this functional departmentalization was utilized. Jet Blue’s most important divisions included human resources, reservations, and flight operations. Similar to the departmentalization, the structure of the company was functional as well. Its basic business functions were handled by Neeleman’s partners who specialized in their fields creating a very smooth and effective system. This structure exhibited a learning organization. Not having a union surely created a team environment throughout the company. Safety, Fun, Caring, Integrity, and passion were the values looked for in each potential employee. The HR department worked hard to ensure that there was a constant improvement in employee work ethic. Focusing on what the employees wanted through customized employee packages created an environment in which there was an ongoing desire to become a better and more effective employee.
2) The first plan of action taken by Jet Blue to prevent failure was to over-capitalize the start up of the company. Instead of 30 million he obtained 130 million. This ensured that funds would not run out as did with numerous other attempts to start an airline. The utilization of technology and creation of the paperless airline was also key in ensuring the success of Jet Blue. This innovation cut down on lines for costumers and improved efficiency allowing the company to employ fewer people therefore providing lower airfare prices. E-Tickets were also created which cut down on booking agents and also decreased the wait to board. The other critical aspect of Jet Blue’s success was its choice to set up its headquarters at JFK, which within ten miles had 2.5 million potential customers dreading the current high cost of flying.