OM (with OM Online, 1 term (6 months) Printed Access Card)
OM (with OM Online, 1 term (6 months) Printed Access Card)
6th Edition
ISBN: 9781305664791
Author: David Alan Collier, James R. Evans
Publisher: Cengage Learning
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Chapter 2, Problem 4PA
Summary Introduction

Interpretation: Effect of schedule change of airlines

Concept Introduction: Operation management is a part of business administration in which goods and services are produced or redesigned with the highest level of efficiency to earn maximum profit.

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Answer to Problem 4PA

Productivity is increased by 14% due to the frequency and convenient timings of flight.

Explanation of Solution

Consider the following data:

     Number of flightsNumber of Passengers
    Month prior to schedule change168795
    Month after schedule change2515653

Effect of the schedule change can be determined by the following:

  1. Monthpriortoschedulechange= No.ofpassengers No.offlights
  2.    Monthpriortoschedulechange= 8795 16

    =549.6or550

  3. Monthafterschedulechange= 15653 25
  4.    =626.12or627

   Increment in no. of passengers per flight =( No. of passenger per  flight after schedule change )-( No. of passenger per flight month  prior to schedule change )

Increment in no. of passengers per flight =627550

Increment in no. of passengers per flight =77

   [ ( Incrementinno.ofpassengersperflight No.ofpassengersperflightMonthprior )×100 ]

   =[ ( 77 550 )×100 ] =14%

Hence, productivity is increased by 14% due to the frequency and convenient timings of flight.

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Following their early success and growth, Listo hired a number of new managers and employees. In response to the expansion of staff, Listo reorganized by adding layers of supervisors and managers between executive management and line staff; however, growth occurred so rapidly that proper training was not provided to the new employees. Management was less concerned with the employees’ opinions and was more focused on production and profit. Instead of enlisting employees’ opinions, more directive orders were given. The change and increased complexity associated with adding new layers to the hierarchy resulted in the organization’s goals and objectives becoming unclear. Employees began to complain about the new bureaucratic processes and the slow pace of decision-making. While the organization has been growing in size, productivity has slowed and quality has decreased. The turnover rate is higher than it has ever been, and the number of sick days that people take has doubled over the past…
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Discuss in detail any five types of authority. give citations and reference
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