XYZ Airlines

Summary

The Japanese office of a European Airline, XYZ, is a fully decentralized business unit. The office employs 140 people of whom only three came from headquarters. Offices are located in Tokyo, Osaka, Nagoya and Fukuoka. The Japanese office is divided into passenger, cargo and administrative divisions.

In 1987 a decision was made to start a graduate training program. The average age of employees was close to 50 years and new blood was needed to secure the office’s continuation in 10 to 15 years’ time. Five graduates were recruited from the top performers of Japan’s leading universities. However, the company is experiencing problems in retaining good candidates. Thirty percent of the new recruits have already left.

This case study describes the circumstances under which three of the graduate trainees resigned.