hassan -hrm final assignment

8/7/2019 Hassan -HRM Final Assignment

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Master of Business Administration

Managing Human Resource

Assignment( Virgins Culture)

Tutor: Dr. George Medline

Student: Hassan Tariq

STU: 22392

Date of Submission: 31st

January 2011

Word count (4040)


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Table of Content Page

1.0) Introduction.........4

2.0) Culture5

2.1) Virgins Culture.5

3.0) Recruitment10

3.1) Virgins Recruitment.10

4.0) Training..11

4.1) Virgins Training.12

5.0) Leadership..12

5.1) Leadership Richard Branson13

6.0) Recommendations.16

7.0) Conclusion.17

8.0) References.19


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Table of Figures Page

Fig 1.0 Culture and HR Aspects.6

Fig 2.0 Flat Structure at Virgin..7

Fig 3.0 Leadership execution at Virgin..10


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1.0 Introduction:

This project will be base on organisation culture as a whole in comparison with

innovative organisation Virgins culture, Is it having a single or multiple cultures? And

then culture linkage with business aspects (Strategy, Structure, Pay/Rewards and

Leadership).

Furthermore this assignment will proceed towards Recruitment and Training &

Development processes and implementation in virgin group, what criteria they have to

hire and train their people?

Then leadership style of Richard Branson will be under discussion to analyse that, is he

really a charismatic leader or rely on his hand picked management team?

These all points will be critically analysed and then at the end of this project there will

be some recommendations for virgin group for its future development.


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2.0 Culture:Organisationalcultureisavitalparttounderstandanorganisationtherearelotsofdefinitions

onculturesomeofthemarementionedbelow.

Cultureishowthethingsdonearoundhere,itiswhatistypicallyoftheorganisation,the

habitandtheprevailingattitudesthegrownuppatternofacceptandexpectedbehaviour

(Drennan,1992,Pg.102)

CulturerepresenttheSocialglueandgeneratesawefeelingthuscontractingprocessof

differentiationwhichareonunavoidablepartoftheorganisationlife

(Furnhamand Gunter,1993)

Asetofunderstandingmeaningssharedbyagroupofpeople,themeaningarelargelytacit

amongmembers,clearlyrelevanttotheparticulargroupanddistinctivetogroup,meanings

arepassedontonewgroupmembers.

(Louis,1980)

2.1VirginsCulture:

Virginsgroup emphasisonpeopleorientedculturewhichisdirectlyreflectedbywatchword

OurpeoplecomefirstthissloganisalsosupportedbytheBransonwordingsasmentioned

in(CaseStudy,pg1) Ourfirstpriorityshouldbethepeoplewhoworkforthecompanies,

thenthecustomers,thentheshareholders.

Accordingto(Drennan,1992) Cultureishowthethingsdonearoundherewhichmeans

youhavetobefollowthesetpatternbuttheVirginbelievesinInnovationandFunsothis

definitionisdissonancewithVirginculturebecausetheygivelibertytotheirpeopletothink

differently.

Furnhamand Gunter(1993)describethecultureas socialglueandwefeelings,whichis

totallyinfavourofVirginbecausetheytooktheiremployeeasfirstpriorityandallowthem

tocomeupwiththenewideas.


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Letslookintoanexampleofbrandextensionfailure(VirginCola)Differentcompaniesfail

whentheyjumpintounsuitablebusiness,onerenownedmotorbikecompany(Harley

Davidson)moveintoperfumebusinessandfailedtoperform,thevirgincaseisslightly

differentwhateverbusinesshejoinedmakeitsuccessful,anarticlewrittenin Uknewspaper

theobserverat27 Aug 2000regardingVirginpopularityamongpeople,VirginRadiousefor

wakeup,virgincloths,cosmeticsareinregularusage,atweekendsyoucanenjoythrough

virginmobileandinternetservices,youcantravelthroughvirginairlineandyouwillserved

bytheVirginwine.

Inthemid90sthegoalofthevirgingroupwasclearedthathewantedawellreputed

organi ationlikeaCocaCola,hedecidedtojoinforcewithaCanadiansodamakercompany

andlaunchanewproductwithVirginnameas VirginCola,hewantedtolaunchitwithfull

ofpotentialbutthetimeoflaunchingwasnotgoodbecausein JulythewinterseasonattimeinFloridapeopleprefertomakeasnowmanrathertobuyaCokeorPepsi,observedbya US

tradepublisher,butBransonwascra ytolaunchhisproductwithstunningstyle,liketoput

his40footVirginColahoodingrightabovetheTimeSquareVirginMegastore.

Helaunchedtheproductwithcheaperpriceincomparisonwithtwobigbrandsbutfailedto

capturethemarketbecauseCokeandPepsigaveitacrucialtimetoevengetthespacein

supermarketshelf.InthemeantimeCokeincreaseditsmarketingandpromotionbudget,

Coke USAspokesmansaid,wetookalltherivalriesacutely.

Eventuallythetwobigcompaniesholdonthemarketandproventhemselvestobeamarket

giantsandVirginColabadlyfailedandputasevereindentationintheirworldwidesale.

Learnt from Virgin Cola Failure:

Bigbrandstookadvantagesfromcompetitorsweaknesses,onceBransonsaidwejumpinto

thebusinesswherepeoplearegettingpoordealandwherethechallengersissatisfied,

howeverPepsiandCokeareanythingbutunworried.

Deliveryisvital,ifyoucantgetyourselfintoshelvesyoucantthroughoutyour

competitors.

http://brandfailures.blogspot.com/2006/11/brand extension failures virgin cola.html(22 01

2011)


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Inacritical sensevirginsculturebest fit inventure than joint venturesbecauseina joint

venture theyfail to impose theirculture,which isalsomentioned ina Casestudy,pg9)

Bransonalsoadmitted that theirGreenfieldventuresfoundeasierto instil thevirginculture

ascompared to instancewhere thefounderhasacquiredanexistingplayerand tried to instil

thevirginculture.

tructuregivesan ideaabout thecompanyhows it operate. irginsgroup iscarryingaflat

structurewhich isalsomentioned in Case tudy, g ) irginhasminimal management

layers,nobureaucracyasmallboardofdirectorsandnomassiveglobal headquarters.

irgin lat Organisational structurealsoshown inabelow ig

ig .0 lat tructure:

Course Work, 9-11- 01)

irgingroup isconsist ofmore than 00companieswhich isfullyempowered tohandle their

businessandalsoconnectedwitheachother,onecompanyfullysupport toother,which

shows theirequal partnernetworkingaswell.

Inacritical viewflat structure isademotivational factorfortheiremployeesbecauseofits

minimal management layersandemployeesgetfewerchances topromote, thatswhy they

spent a lot onemployeeengagement tomotivate theiremployeeswhich isalsowritten ina


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(CaseStudy,pg5)Bransonstressedonemployeeengagementtoensurethattheemployees

believesinwhattheydid.

Pay/Rewardisahygienefactorsforanemployeeanddescribebythe(Hert berg,1995)it

meanthattheabsenceofthiscancreateadissatisfactioninemployees.

Virginishavingateambasedculturemeanwefeeling,andalsosupportedbythewordsin

(CaseStudy,pg3) Naturallyrewardsandremunerationcouldbeusedtoprovideincentives

forcertainbehaviourandtheincorporationofthebrandvalueswithHRpoliciesand

processeswasessential

ButinacriticalaspectVirgindoesntfollowitscultureintermsofrewardingtheir

employees,theyclaimedteambasedculturebuttheyrewardtheiremployeesonindividual

basiswhichisalsomentionedin(CaseStudy,pg6)heheavilyreliedonhishandpicked

managementteamandempoweredthemintermsoftheircompaniesandalsoofferedhigh

valueperformancebasedincentives.

Leadershipisanattempttopersuadeonindividualbehaviouranditprovidesthevisionfor

theirfollowerstoachievetheirgoals.

VirginleadershipisnotonlydependingonRichardBransonbutthereisanimportantroleof

theirhandpickedexecutivesandmangersaswell,theyarefullyempoweredtoruntheir

authorisedprojectsandalsoallowedtotakedecisionintermsoftheirconcerncompanies.

Bransonbelievethattheirpeople/managementshouldbeempoweredtohandletheirprojects

inarightmanner,whichisfullysupportitsculturetheme.

3.0 Recruitment:Recruitmentdefinedas itisthemostcriticalHRfunctionfororgani ationsurvivalor

success

(TaylorandCollins,2000,pg30)


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3.1VirginsRecruitment:

Virginisadiverseandfastgrowingorganisationwhichdoesnthaveasetpersonalityprofile

forcandidates,theyjustpicktherightonewhofitwiththeircultureandcorevalues,asper

the(CaseStudy,pg7) Virgininvitedpeopletoapplyevenwhentherewerenovacancy

advertised,thegroupwasconstantlylookingforpeoplewhofittheprofileofVirginPerson.

Duetodynamicenvironmenttheyfindsomeonewhowillbecreativethinker,having

potentialtodealwithcrisissituationandalsoreadyfortheresponsibilities.

Virginlooksomeonewhothinkcreativelyandreadytotakeresponsibilitiesbutrealityis

differenttheychoosetheonewhofitwiththeculture,asperthe(CaseStudy,pg3) ifit

hiredpeoplewhosenaturalbehaviourandvaluesfitcloselywiththecompanybrandthen

brandculturewasautomaticallycreated.

SomebroadprinciplesarefollowedbytheVirgingroupwithsomemodificationsaspertheir

projects/companiesrequirementsforrecruitment,inthe(CaseStudy,pg3)VirginsSalway

alsomentioned, wealwayshavingarightpeopleonboard,weasklotsofquestionsthatare

nottraditional,tojudgethepersonlikenesswechoosethebestonefromcrowdwithgood

senseofhumourandalsohavingacapacitytocopeupwithpressure.

Letslookintoanexamplewhichismentionedin(CaseStudy,pg7)VirginBlueevencabin

crewwentthroughafivestagerecruitmentprocesstoensurethatthestaffwereabsolutely

perfectionist,intermsofcustomerserviceability oneofthekeyfactorinfivestagemodelis

behaviouraltestwhichreflectthevirginbluepersonalitytemplate.

Inaninterviewpeopleareaskedwhytheywanttojoinus,iftheanswerwillbelikethatIam

funandfunkyorIamcomingforagoodtimesoitwillnotbeaproperreply,companywill

recruittheonewhoisrespectful,motivatedandavoidfrompoliticsandviciousbehaviour.

Inacriticalviewvirginstatethattheyhirepeoplewhoarefunlovingandhumorousattitude

buttherealityistotallychangedbecausewhensomeoneaskedwhyoncejointheorganisation

andiftheyreplywith thatIamfunandfunkythentheywillberejected,thispointisalso

mentionedinthe(CaseStudy,pg7) PeoplewereaskedwhytheywantedtoworkforVirgin

Blue,itwasnotgoodenoughforthemtosay,wellIam funandfunky orIamcoming to

Virgintohaveagoodtime,thecompanylookedforanswerthatwouldhelpthemrecruita

groupofpeoplewhowerecommitted,respectfulofoneanotherandwhoaremotivatedtosee

othersdevelopandavoidedthepoliticsandthosesortsofdestructivebehaviour.


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4.0 Training:Thetrainingpurposeisbecomingagraduallymoreimportantcomponentoforgani ational

andindividualemployeesuccess,therearelotsofdefinitionsfortrainingbutManpower

ServiceCommissions(1981,pg62) Glossaryoftrainingtermwhichdefinesas.

APlannedprocesstomodifyattitude,knowledgeorskillbehaviourthroughlearning

experiencetoachieveeffectiveperformanceinanactivityorrangeofactivities,itspurpose,

intheworksituation,isalsotodeveloptheabilitiesoftheindividualandtosatisfythecurrent

andfutureneedsoforgani ation.

TrainingplaysanimportantroleinHRdevelopment.Itisessentialandbeneficialforall

categoriesworkersandhelpsthemouttoperformtheirjobsmoreefficientlyanditalso

facilitatesselfdevelopmentaswellascareerdevelopmentofemployees,inadynamicworld

trainingisacatchphrase.

Onekeyaspectofemployeemotivationandretentionistheopportunityemployeeswantto

continuetodevelopandbuildupjobandcareerenhancingskills.Although,thisprospectto

continuetogrowanddevelopthroughtraininganddevelopmentisoneofthemostvital

factorsinemployeemotivation.

4.1VirginsTraining:

Virgin is a customer driven organi ation which emphasis on strong customer service and

given training to their employees continuously, they exercise informal and formalways to

traintheiremployeeslike(workshops,rallies,onlinetrainingevenpicnic).

InaCriticalsensediverseorganisation likeVirginexpect from employees toprovidebest

customerservice inallconditionsbycontrolling theiremotions, thisterm is introducedby

Hochschild (1983) as Emotional Labour to describe emotion management with aprofit

motiveslippedunderit.

Virginhirestheiremployeeswhothinkdifferentlybutiftheyhavedifferentthinkingthenit

isnotpossiblefortheVirgintodesignanindividualtrainingmoduleforeachperson.


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5.0 Leadership:Leadership isan extremely required and extremely valued commodity, thereare numerous

definitionsforLeadership,andoneofthemisdefinedas,

Theinfluenceincrementoverandabovemechanicalcompliancewiththeroutinedirectivesoftheorganisation

(Ka &Kahn,1978,pg528)

Many people believe that leadership is a way to improve their personal, social and

professionallives.Companiestrytofindoutsomeonewithstrongleadershipabilitiesbecause

theybelieve theybringextraordinary talent to theorgani ationsandeventually improve the

bottomline.

5.1LeadershipRichardBranson:

RichardBransontobeknownasentrepreneurandsomewordsgenerallylinkedwithhimlike

creativity,fun,opportunistic,andrisktaker,accordingthe(CaseStudy,pg6) heencouraged

hisemployeesforcreativethinkingandrisktakingwithoutthefearoffailure,youfailifyou

donttrythings,ifyourunacompanybasedonfear,thenyouarenotgoingtogetthebestof

people.Theywontmakebolddecisions,theywontmakeanydecision,hestated

Helikesdangerousstuntsandbreakingworldrecordsbutalongthiswildpersonalityheisa

drivingforceofmorethan200companies,hestartedhisbusinessinhisadolescenceandthen

hebecomesamillionaireattheageof29andheclearlyknewwhathewanted.

VirginsleadershipnotjustdependonBransonbuthisHandPicked Executivesalsoplaya

mostimportantroleinsuccess.Theselectionofhismanagementteamisalsoakeyareaof

successforthecontextofneedandbusinesschange,herecognisedthathishandpickedteam

wouldcomplimentonhisstrengthandalsogivethefeedbackonweaknessasleader;he

selectedthemasperthebusinessrequirementandneededtheexpertise,accordingtorecent

researchtheuppermanagementteamscanhaveathoughtfulimpactonthestrategicdirection

andperformanceoforganisation(Zaccaro,2001).

ThisfigshowstheleadershipexecutionatVirgin.


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ig3.0 eadership Executionat irgin

Course Work10-01- 011)

bovefiggivesusan ideaabout Branson isnot only leader in irginbut his and icked

Executivesarealsoplayan important role indecisionmakingandstrategyplanning,herelied

a lot on andpickedexecutivesandallow them to takedecision in theirdivisionwith less

intrusionandalsooffered themextremelyvalued incentiveson individual basis.

Incritical aspects thisminimal management layersand individual incentivescauseade

motivationforhisemployeesand thatswhyhespent lotsofonemployeeengagement to

motivate theiremployees.

What particularleadershipstylehehas? herearemanyapproaches toexplain the leadershipstyle. eopleadopteddifferent stylesaccording to thesituationand individuals theyare

dealingwith.

One thing that isclearthat theculturewhich Bransoncreated throughhisunique leadership

style,wasone that isstrongbyhispersonalityandstyle.


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Whenconsideringhisleadershipstyleandsuccess,thetradeapproachtoleadershipisone

thatiscritical,forexamplehewasnothavingamoresocialinteractioninaschoolage,he

madehimselfthefaceofVirgin,gettinginvolvedincontemptiblepublicitystuntstoget

attention.Heisextraordinarilyreservedandshypersonyetheisamanwhobuildsaworld

wideimageoutofpublicityandperformingfortheTVcameras(Fox,2004).

TheconceptofTransformationalleadershipwasfirstlydefinedbyBurns(1978),and

accordingtohimTransformationalleadershipthatleadstopositivechangesforfollowers.

Theyareactive,keenandpassionateandalsofocusedonhelpingeveryindividualofthe

groupforsuccess.

Bass(1985)givenmorelengthenedandfiltermodelofTransformationleadersareoften

associatedwiththosewhoacclimati equicklychanges.Bransonclearlyshowedhis

suppleness andsuccessinacclimati ingtochangingorganisationalculturesasheboughtnew

venturesandmovedintonewsectors,bringinghispeoplewithhim.

AccordingtoWeber(1947)Charismaisatermwhichsaysthatsomebodyhasanatural

powerthatmakeoncealeader.

RichardBransonisalesstransformationalthencharismaticduetohisinnovativethinking

and

success,

the

expert

opine

him

as

transformational

leader

because

due

to

a

strong

marketingshowman,butactualitsaCharismaticleaderbecausehelovestotakeriskand

alwaysencouragedtheiremployeestodothat.

Theword democraticisreflectintoBransonleadershipstylebecausehedelegatehis

authoritytotheirmanagerswhichisalsomentionedin(CaseStudy,pg6)Branson

delegatedauthorityandallowedtheirmanagerstotakecontroloftheprojectsthathehad

conceivedandstarted.Butactualhisleadershipstyleis Laisse Fairthistermisdefinedby

theKurtLewin(1939)astoprovidethefulllibertytotheiremployeestotakedecision,

authorityofpowerandsetgoals,thistermisalsonamedas hands offstyle.

Accordingto(CaseStudy,pg7)hevaluedhistimemanagementskillsandasachairmanof

largegrouphespentaboutathirdofhistimeontroubleshooting,anotherthirdonnew

projectsandlastthirdonpromotingantalkingaboutthebusinesseshehadsetup.


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Butactually,itsnotpossiblebecauseanorgani ationlikeVirginhavingmorethan200

companies,Bransoncannotcatertheissuesofeachcompanywithin6mininaweek.

Theentirepublicityandbrandimageisjustbecauseofpolishedpublicitymachinewhich

sketchthemaswhattheywant.

6.0 Recommendations:Thisprojectgivesusaclearviewregardingvirginsmanagementfunctionsbutthereare

alwaysroomofimprovements,herearesomerecommendationsforvirgingroupforits

successfulperformance.

Less Diversification:

Virginshouldbelessdiversebecauseeverythingisnotabrandname,youcanbefailedto

performjustlikehappenwithVirginCola,peoplearefullyawareofcorporatestrategiesits

giventime,Virginasacorporatecollaboratorcanaddpossiblevaluestoitsventuresby

investinganddevelopingrealpotential,trytobelessriskbecauseitsaknifewithsharpboth

sides,onesideisinevitablyandothersentoutcontradictorysignalstocustomers.

Change in Strategy:

TheVirginalsoneedtolookintotheirpolicytomakeindependentandjointventuresupon

shorttimeperiodjustforthesakeofmoney,letgotherollingstrategysothatvitalrevenue

producingVirginAtlanticcanbebailedoutinbadtime,debtscanpaidinashorttermproject

inpeakseason.Thoughtsandpoliciesshouldbesuchthatcanstrategicallychangedina

dynamicenvironment.

Change in Structure:

Virgingroupshouldchangeitsstructurefromflattobighierarchal,becauseitsnotsuitable

forabiggrouplikeVirginhavingmorethan200companies,largestructurehavemorelayers

andmorechancesforpromotionsandemployeeretention,withbighierarchicalstructureto

makesurethatemployeesgotfurtherpromotions.

Pay & Reward:

Theyneedtolookintohispayandrewardsystemaswellbecausetheybelieveinteamwork

butpaidtheiremployeesonindividualbasis,thiscreateanegativeimpactonother


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employeesifyouhavesetyourvaluesasteamworkenvironmentthenyoushouldhavesame

procedureforeveryone,changeintothiswillleadstowardsthebetterproductivity.

7.0

Conclusion:

Inordertoputallthediscussioninasinglenutshellthatwecomeacrosslotsofinteresting

factsofVirgingroupregardingitsCulturesrelationwithdifferentHRaspects,the

organi ationalcultureofvirginreflectsadistinctivedriftincomparisonwithother

organisation,theyarehaveacatchwordslikeInnovateandfuntoattractthepeopletobea

partofthatorgani ation.

ThenCulturerelationwithHRfunctions(Strategy,Structure,Pay/Rewards)therearesome

clashesbetweenthesebusinessaspectwithculturebecausewhattheysayactuallynot

implemented,theyarehavingaflatstructurewhichcreatejobdissatisfactionbetween

employees,andtheyarehavingateambaseculturebutrewardedtheirmanagementon

individualbasis.

Virginclaimedfunandinnovationasacorevaluesandpickedabestonefromcrowdwhois

readyfornewchallengesandhavingcreativethinkingbutwhentheyrecruitpeopletheircore

valuesarebeneath,whensomeonesayIamcomingtovirgintohaveagoodtime,once

simplyrejectedbecausetheysaidwearelookingdifferentreply.

Virginisacustomerdrivenorgani ationandalwaysprefertotraintheiremployeesonregular

basisandthesetrainingconsistofFormalandInformallike(Workshops,rallies,online

trainingandpicnic).

VirginleadershipasawholenotjustdependonRichardBransonbuttheirHandPicked

ExecutivesandmanagersplayavitalroleinvirginsuccessandRichardBransonstronglyrely

onhisexpertteamandtheyactivelyparticipateindecisionmakingprocessandhealsopaid

ontheirindividualperformances,Bransonalwayslovestobeapartofadvertisementthats

whyhehasamarketcatcherpersonality.

Virginneedssomeamendmentsintheirmanagementfunctionsandstructuretoaccomplish

theirmilestone.


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8.0 References:http://brandfailures.blogspot.com/2006/11/brand extension failures virgin cola.html(22 01

2011)

y Burns, J.M.,1978.Leadership, New York,HarperandRow.y Bass,B.M.(1985),Leadershipandperformancebeyondexpectation. New York:Free

Press.


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y (CourseWork,29 11 201)y (CourseWork10 01 2011)y Cited insteeret al,1996,motivationand leadershipatwork,6thed,McGrawhill,

Singapore;kat ,Dandkahn,R.L.thesocialpsychologyoforgani ation,2nded,new

York,johnWiley,1978

y Drennan, D., 1992. Cited in Senior, B. 1997. Organi ational Change, (p.101),London:PitmanPublishing.

y Fox,Catherine.(2004).thereluctantguru.Financialreview.Boss.y Furnham, A. and Gunter,B. (1993) 'the Psychology and Behaviour atWork: The

Individualinthe Organi ation'.ThePsychologyPress:TaylorandFrancis Group.

y Her berg,F.(1959)theMotivationtoWork, New York:Wiley, J.andSons.y Hochschild,A.R., 2003, themanaged heart: commerciali ation ofhuman feelings,

UniversityofCaliforniaPress.

y Johnson, G and Scholes, K (1993) Exploring Corporate Strategy, Prentice Hall,HemelHempsted

y Lewin.K (1951),Field theory insocialscience, New York:Harper&Row.Cited in(Campbell&Craig.T(2005), Organisationsandthebusinessenvironment,2

ndedition,

Oxford, ElsevierButterworth Heinemann

y Louis,M.R.1980, Organi ationsasculture bearingmilieux,inL.R.Poudyetal.(eds.)

Organisational

Symbolism,

Greenwich,

Conn.:

JAI;

quoted

inM.R.

Louis(1985), AnInvestigators GuidetoWorkplaceCulture,inP.J.Frost,

L.F.Moore,M.R.Louis,C.C.Lundberg& J.Martin(eds.), Organi ational

Culture, NewburyPark,Calif.:Sage,pp169 85ascitedinBrown,A.opcit.

y ManpowerServiceCommission,1981. Glossary ofTraining term.3rd ed.London;HMSO

y Taylor, M.S. and Collins, C.J. (2000) organi ational recruitment: enhancing theintersectionof theoryandpractice, inC.L.Cooperand E.A.Locke (eds),Industrial

and Organi ational Psychology: Linking Theory and Practice, Oxford: Blackwell,

pp.304 34.

y Weber,M.,1947.Thetheoryofsocialandeconomicorganisations, New York:FreePress.

y Zaccaro,S.(2001).Thenatureofexecutiveleadership.Washington,DC:AmericanPsychologicalAssociation.


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