Master of Business Administration
Managing the Human Resource
Prepared by Lam Ka Chun Terence
Student Number: 20495
Date of Submission: 18th Jan 2011
Part 1: P.2 (Word Count: 1689)
Part 2: P.6 (Word Count: 1245)
Part 3: P.9 (Word Count: 1297)
Total Word Count: 4231
Part 1: From a Human Resource Management perspective, provide a reasoned and academically underpinned critical analysis of Virgin’s organisational culture.
Basic on the study, here are some of the factors that define Virgin’s organisational culture: ● Symbol:
At Virgin “fun” and “challenge” is the key brand value and terminology. It provides a challenging and exciting working environment where the staff can show their personalities and passion. And the company name and logo “Virgin” represents its attitude and rationale when entering the new business era.
Virgin established as the record and music business and now the umbrella of companies are operating wide range of business including the space travel business, which is quite unique and inspiring. It leads global sustainable development initiatives and it is constantly looking for new methods to improve the business it is operating.
● Business culture:
The management team is passionate, creative and innovative in operating the business, from the new venture to the established businesses. Virgin actively encouraged their employee’s personal expression – in creative thinking, speech and even dress. Sir Branson rebels by nature loved a good challenge and enjoyed bucking convention, and he would invent his own route to success by identifying the potential and hidden opportunities.
As per emphasized by Sir Richard Branson, the Virgin group embarked on consciously building Virgin into a brand which stood for quality, value, fun and a sense of challenge. The first priority of corporate belief should be their staffs, and then the customers, and then the shareholders; the rationale is to deliver the quality service and to continually improve the customer's experience through innovation and empowering their employees; and then the shareholders will be benefited. HRM is the key issue in Virgin brand strategy.
● Management style:
Virgin draws on talents across the group to steer the new ventures. Sir Branson’s decision is unify the trademark management style, experience and skills. There is a core team that align to the mother company’s strength and systems that establishes its original brand culture at all levels. The Virgin group has minimal management layers by a small board of directors and no massive global headquarter; the management team is empowered to flourish within the group.
● Work practices:
Sir Branson expects HR need to have a broad working knowledge all the parts of the organisation and to be responsible for designing the people to match the business model. The Virgin group relies on the passion to constantly delight the customers, employees are all given the opportunity to voice ideas and contribute to challenging convention, they are encouraged to give suggestions to improve customer service that better align to Virgin’s core values. Each employee is a valuable part of the management team, and debates and internal discussions are encouraged with the group.
● Norms of behaviour:
The brand culture recognizes quality, a fun work environment, value for money and challenging the establishment, it is the worldwide phenomenon. It emphasizes the company do business with its staff, not just how the company do business with its customers. To achieve this it relies on the relations between employees and management, and the empowerment of employees and networking. Sir Branson personally read any letters received from staff. A two way process of communication is created within the Virgin; while the management invites and heeds to the views of its...