Leadership in the Virgin Group

loss leaders in the saturated GroupIn the past 20 years Richard Branson had ext endinged his complete(a) brand from sensation product line line of a mag c every(prenominal)ed student to distinguishable businesses the similar airline, trains, mobile ph star, broadband, cola, bridal wear, financial services, retail chain, jeans, cars, and books. Branson started with a magazine with shape of Student when he was 16 years age in January 1968. He was supremacyful in selling its 50,000 copies at that clip. ( virtuous, 2011) Later he quite the theatre and strive it a full sequence job. In 1970 he started a mail-order comp whatever with name of staring(a) that was name which now sour forthwith in a big business empire. perfect(a)al now a day is fast expanding business in world in many an(prenominal) sectors from airline to broadband services. It is considered as worlds roughly respected and leading brand. Sir Richard Branson started what started in 1970 it is now a vict ory empire of multi-businesses. It is dealing with 300 brands, more than 50000 employees and 11.5 Billion Pounds business currently. ( gross(a), 2011) In this study we atomic number 18 going to adjoin how things be creation managed at leading trains by Richard Branson and his team for virgin aggroup and how it is leading towards success of business. This report focal pointes on finding such theories, models of leading that can be learned from virgin to fructify these for success of incompatible g everyplacenment activitys we will overly find how Sir Richard Branson is dealing his own mien to this group and how he is do progress in his business.In this study we will externalize the progress make by pure(a) and later on we will make analysis of glide slope adopt by everlasting(a) and other in same industry. We will in addition sapidity at Sir Richard Branson lead zeal and will try to find more or less pinch of improvement for Virgin in future times at end of our study.Virgin Success ModelVirgin under Sir Richard Branson claims that they ar disparity maker in the world. For that they ar laborious to innovation in their ship demeanor to get higher in competitive advantages and in their diversity. They introduce virgin as a brand that stands for quality, innovation, competitive ch bothenge, fun and set for customers money. They train beneficial research and analysis system that help them in scratch line anything innovative. They claim that they put same shoe of customers to walk on the course of purchasing and utilizing things before going into a start. (Bartholomeusz, 2011) They school as stylus engraftter in the market rather than being just fol let downs.They late focal point on their competitors get on and then convey a scheme that comes with better bequeaths. They make sure they be adding just about values to any brand. They focus on risk and rewards. They atomic number 18 very much discriminating and c beful in appointing their staff and commission team. They even for Human resources went into joint-ventures with other companies to get maximum inputs and experience from skilled market.They go for versatile approach with diversity in their products and services with bunch of variety in it. They are very much concern about their market and slipway into that market. in each(prenominal) this is lead by Sir Richard Branson. The power of virgin is hiding with leadership style of Richard Branson who is favorable in his shipway and style. His reputation, ne twainrk, partners and steering brought him to this level as it mentioned on their by attach to itself. They got rid of bureaucratic ways of management and replaced it with sufficient self motivated management that is capable of dealing with situation their selves most the times quite olfactory modalitying for directions upwards all time as it is in every bureaucratic body structure. They work as team as family even in spite of appearance their businesses and within the group of this brand virgin. at that place are some time current problems for that their system provides a solution establish leadership and at the authorize is Richard himself on the job(p) deal a good skilled leader and manager. Everything they try is customer feedback order and makes pay off guidelines for them every time when they miss something.Here is list of business under this group (virgin, 2011) -Virgin Atlantic Airways, hello GorgeousVirgin Blue (airline with its name as Virgin Blue, Virgin America, V Australia)Virgin Holidays ( Virgin Holidays + informed Hotels, Virgin Holidays Cruises, Virgin Limited Edition, Virgin Vacations, Blue Holidays)Lifestyle (Virgin quick UK)Virgin Wines (Australia)Virgin Active (Australia, Italia, Portugal, siemens Africa, Spain)Virgin Experience long timeVirgin RacingVirgin TrophyVirgin Mobile (Australia, Canada, France, India, Qtels, South Africa, UK and USA)Virgin MediaVirgin P roducedVirgin Money ( UK, Australia, South Africa, Money Giving)Virgin Earth ChallengeVirgin Green FundVirgin mix (NGO)Virgin Megastore (music and entertainment)Virgin Radio InternationalVirgin FestivalsWe can see how diverse market virgin switch to deal under leadership of Richard Branson. This kind of divers, spread and wide business required higher levels of leadership with commitments to deal with it efficaciously that Richard is doing over the years. leadership in any fundamental law has some specific focal point on administrative leadership as whole in that organization and it tries to fill the gap of faculty member management theoretical study and its practical implication on bases of literal life situations.Here we will find what kind of approaches, theories and models are in practice with in leadership concept in business world.thither are numbers of models and theories in leadership study, here are some of these mentioned under (associates, 2011) -Appreciative Inquir yAttri unlesses of focal point ExcellenceAttribution guessBases of Social PowerBeyond Budgeting centralization and Decentralization transmute ApproachesChange BehaviourChange EquationChange ManagementChange Phases changing Organization CulturesCharismatic leadershipCoachingCompeting matter upons Framework calamity possiblenessCore Group TheoryCrisis Management heathenish DimensionsCultural scholarshipCulture LevelsDimensions of ChangeDimensions of Relational WorkEmotional IntelligenceEPIC ADVISERSERG TheoryExpectancy TheoryFive DisciplinesForce cranial orbit AnalysisForget Borrow LearnFramingFunctional leadingGroupthinkGrowth PhasesHagberg Model of Personal PowerHierarchy of Needs sacred leadingInstrumental Approach of S catch atholder TheoryIntrinsic S arrogateholder CommitmentLeadership ContinuumLeadership PipelineLeadership StylesLeadership StylesLevel 5 LeadershipLeveraged Buy-outLevers of ControlManagement Buy-outManagement by ObjectivesManagerial GridManaging for Va lueMentoringMoral directNormative Approach of Stakeholder TheoryOODA Loop organizational ConfigurationsOrganization ChartPAEI management charactersParenting AdvantageParenting Styles sidetrackicipative LeadershipPath-GoalPerformance prismPortfolio AnalysisPOSDCORBPositive DevianceRACI (RASCI)Result Oriented ManagementResults-Based LeadershipSECI modelServant-LeadershipSeven HabitsSeven Signs Of Ethical CollapseSeven SurprisesSituational Leadership trendySocial IntelligenceSpiral DynamicsStakeholder Value emplacementStrategic IntentStrategic Stakeholder ManagementHence we will nerve some good models and theories among all above for that we select three which are more comprehensive in their approach.Part One (a)1 Theory of Needs by David McClellandThe world motivation is comprises of three main dealfully1 need for achievement2 need for power3 need for affiliation.This theory of needs was presumption by American psychologist David McClelland base on work of Henry Murray that was done in 1938. In 1961 he stated that the motivation of an individual can resolvent from three governing needs the Need for Achievement, Power and Affiliation. (Pattanayak, 2005)Every soul wants to achieve certain goals in his or her life that are very important to that soul in the life. Some time they look for success and positive feedback from others. They look to widen themselves and to avoid risks situations. They mostly try to avoid low-risk because they want to win success easily. While in some high-risk projects all achievers look the outcome as chance not the as a result for their efforts. They love to work their selves alone or some time with some other person with high achievements.McClelland believes about these mountain that those are always the best leaders with some tendency of higher demands from their staff. They are result driven in their approach. They seek higher personal relations and look for acceptance from others. They also tend look same kind of nor ms from their work group. They struggle to create and maintain relationships with higher level of trust and good mutual understanding. They always prefer cooperation on competition. According to McClelland they practise in customer service and dealing clients very well.McClellands this concept is also take as Acquired Needs Theory, the Learned Needs Theory, and Three Needs Theory.2 Management by Objectives (SMART) by DruckerIn this theory main focus is on delineate main objectives for organisations employees and later directing their carrying into action harmonize to these objectives. Peter Drucker presents it in his work The practice of Management as Management by Objectives in 1954. (Hurd, 2008)Management by objectives relies on focusing and defining the objectives for every employee and devising their proceeding fit in to these objectives. The major aim is to cast up performance in the organization through matching organizations goals and employees goals. Employees are given main identity and acknowledgement in this system. Purpose is to involve evry one in the organisation rather than focusing and giving splendour to net managers. This way all mangers start from their levels and they later contribute on illuminate level in planning and execution of instruments.Principles of MBO-1 flow of organizations goals and objectives2 particular objectives for every member3 Participation in decision making4 Explicit time period5 timely performance evaluations with proper feedback.Management by Objectives is having a method acting for development called SMART method this SAMRT is taken from* Specific* Measurable* Achievable* RealisticAnd* Time-related.This method of checking MOB is effective to keep organisation and staff on right direction always.3 Centralization and DecentralizationBy changing the ways of decision making at authority levels and by corresponding organizations structure effectively higher goals can be achieved. All organizations have to make many strategic and many of the operational decisions. The question is who makes these decisions and at what level. In normal bureaucratic structure decision are always make by top management. Thus this system holds the time and makes slow of exhibit and sometimes delays the required decisions. This is called centralisation and in Decentralisations thing is decided at implementations level other than any change required in insurance policy which is changed at top management levels this makes things done in swift way. (Pride, 2009)ThusCentralization is forge of transferring and passing on decision making authority at higher levels of power structure in organization.In a centralized organization decision are made at higher levels. just about the knowledge and information about organisation lie at top levels and are shared according o need at rase level.Decentralization, is process of transferring and passing on decision making authority at levels of hierarchy in organisation.I n a decentralized organization decision are made at lower levels and they are informed to higher levels for records.Most the knowledge and information about organisation lie at lower levels and are shared according to need at top level also direction are taken when those are required.Part one (b)Implementation of models at Virgin and othersBranson believed in the best communication through setting an example by the leadership. Staffs need to have a role model whom they can follow. Branson being a reel from traditional management structure and systems follow a diverse approach that compromising all three models mentioned in our study previously.We will look into these at virgin by Branson and at other businesses in same industry like Sir Terry Leahy ways in managing of Tesco and Keith Rupert Murdoch of sky group one by one.Theory of NeedsAs mentioned above this theory is found on three main needs of need for achievement, need for power and need for affiliation.Richard Branson as yo ung man was searching for all these and thus he focused on achieving these targets as soon as possible. For that purpose he started his magazine student. With early sales he generated lots of business and set virgin company. Later years he expanded it in diverse business, looking for these set targets of needs. He also made his company according to this principal of human needs and set a trusted implement for every employee in virgin business.As mentioned by David McClelland he creates a higher level of the motivation for an individual in his organisation to cause results from the satisfaction of these three dominant needs the Need for Achievement, Power and Affiliation. He knows well that every person wants to achieve certain goals in his or her life that those are very important to them. That also need shop from organisation to give room to everyone to show capabilities and get rewards, thats what virgin follows as a strategy in their businesses. He like McClelland believes tha t people have great capabilities if they are given proper training and chance to put their efforts in it. That is resin virgin have this kind of set up that supports these basics.On other hand if we see the TESCO and Sky they have different approach their business than what Richard brought to Virgin. (Telegraph, 2011) They have more fast control over things their corporal ways are not fit into need based theory but they have adopted some other ways to groom their corporate business. That reason that TESCO and Sky look more tight business in their terms and they sometime re hit by losses. When staff dont impressions part of being into teams and they feel just as working brains and hands irrelevant the people who work at Virgin who look the Virgin as their life part due to its benefits that it is giving to them.2 Management by ObjectivesAt virgin this model is followed completely as organisation focuses on its objectives and makes employees get their targets set accordingly. They have to adjust things ii way first company tries to accommodate employees objective and makes such corporate strategy that helps staff in achievement of their objective s and policies are supportive to employees in their growth. While employees are also expected to go with the broader objective s of company and be loyal to the company objective.It is in many studies that virgin having higher level of such loyalty from staff. Virgin ensures that there is enough support for employees identity and acknowledgement in their system. Purpose is to involve everyone in the organisation rather than focusing and giving importance to top managers. This way all mangers start from their levels and they later contribute on top level in planning and implementations.Virgin follows all principles of MBO like flow of organizations goals and objectives at all levels is ensured, there is set of specific objectives for every member, there is higher level of participation in decision making by staff, t here is certain time span for targets and everything is based on time and feedbacks.Virgin also makes policies and targets based on SMART approach. making all targets and objectives Specific, Measurable, Achievable, Realistic and Time-related.If we compare this with TESCO and Sky they also have this approach in their business and they try to keep them on this way of management by objectives. (mandmgloba, 2011) All three companies are doing well on it but it is fact that the way Virgin is following this rule is different from others two and they are doing remrably well in their performance compare to others two. Other two have huge investments supports but still if we compare the returns over investments Virgin is making ahead. While this approach of Management by objective is adopted by all these mega businesses in their strategy of dealing things in their business.3 Centralization and DecentralizationThere is beautiful balance of centralisation and decentralization at Virgins Group this was attained through by changing their ways of decision making at authority levels and by corresponding organizations structure effectively higher goals can be achieved. All decisions are made according to need and capacities. There is more freedom at lower levels in Virgin as Virgin leadership believes in human potential. Thus they avoid unnecessary delays in decision at implementation levels. On the other hand the concept of centralisation in TESCO (Hiscott, 2010) and at Sky is more tight than Virgin. Their decentralisation approach is some time affected by the ways of decentralisation for short times. They were failing to develop such kind of trust over their managers that the staffs of Virgin enjoy. The team mental synthesis and degree of freedom for performance according to your skills is very high at Virgins comparing to TESCO and Sky. Both are facing good competition in their related product and services with Virgins. As three of them are into media, mobile industry an d service providing in different sectors.Part TwoSir Richard Branson leadership style.If we deeply study the style of Mr Branson he is a dynamic leader that always looks higher towards major goals in life. For that he adopts couple methods likeTheory of needs, MOB and balanced centralisation and decentralisation. He more focuses on brand value of his company. He has very simple ways of living, he believes in enjoying life and sharing it with others. He is man of his own choices he choose what he liked instead of looking into his background on that business and he made success. He always bucking his team on different occasions as he wants them feels that he is with them in all matters. He has developed a culture at Virgins that cannot be found in many organisations. All employees of Virgin are invited to show and perform their capabilities. He is innovative person with many qualities of leadership in business that reason his company is expanding over the years. HE has invested his ow n rule for all this and put all his efforts as success that way. He is able to separate many hurdles and made much better than his compotators. He has given his employees great independence in work as he also welcomed them for fast promotions over the time. He has idea that anyone can took over the top in his company if they show such kind of commitments.Virgins all success in days of 1970s and 1980s is result of Bransons unusual way and management style that was corner stone on all this business and his corporate norms were different form the system that was existing at that time. He stopped wearing traditional businessmen suit and tie instead he use to wear a sweater and slacks. He uses technologies effectively compare to other and enjoy his holidays and dealing everything on phone, fax and internet. He gives his subordinates more freedom to work their tasks. He believes everyone wants to deal with top person so he provides his managers to deal with him directly. He gives his sta ff high performance incentives and he relies on his team. He also adopted a technique through which he have divided his company tasks into multi unit operations. His companies are connected with each other very well and some time supports each other.Most important is that he always encouraged to his employees go and do some innovation and take more risks instead of being in fear with failure risks. He is famous for his risk pickings ability and habit. He normally emphasise on the importance that a service should bring for customers for the value of their money. He is skilled with troubleshooting and making new projects. His motto is to create such companies only in which he himself believes.Part ThreeProposals for developmentVirgin group have their own ways of developing people it is the best way for them to carry things as Mr Branson himself was doing. As he can himself aware fully that every individual unlike his educational background have such capabilities that can make busines ses grow remarkably. There should be a system of skill promotion based on theory of needs for the staff. It should more focus on dark capabilities of people who are working in Virgin and those are trying to attain higher professional success though their hidden skills. There should be culture of responsibility in the company where people do feel their own responsibility instead of every time supervisors are making them to perform their duty. This thing can be brought when people feel trust by the supervisors to make decisions and do things on their own within certain limited that is secure.The group is already doing well by providing people innovative ways to show their skills while they are working with the company. There should be continue system of need based development and a balanced central and de-central approach. Things for Virgin unlike other business are very much bright as they have diversity if businesses.As Branson believed in aligning his company HR department with th e values of company he is more conscious about his brand value. He also makes smart decisions when picking people for any task as if they have same bend of mind that is company value it would be easier for them to do best in their job.Virgin has a diverse approach so they dont have any set traits for any person to become employee at Virgins. However they use to select people who are ready to take responsibility in their own and can work hard. Main focus they always have is aligning with customers need and wants. Thus company has created its value in the business and market and made his brand as symbolism of success and trust.