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    Organization and Behavior

    Task 1

    a) Select two organizations of your choice and compare and contrast the

    structure of those two organizations.

    There are 9 organizational structures that can be identied.

    1. Hierarchical. !lat". Tall#. !unctional$. %roduct based&. 'eographically based(. atri*

    +. ,entralisation9. -ecentralisation

    Kentucky Fried Chicken KFC

    1. fc comes under geographically basedstructure.

    /sually large organizations like fc ha0e many branches in dierent

    countries. fc is functioning there works in 11$ dierent countries in 2frica3

    2sia3 ,eribbean4 South 2merica3 5urope and middle east.

    Area based (geographical) defnition

    !irm organizedinto geographical units6 regional3 national3 international) that

    reportto a central head7uarter which administersthe core functionssuch as

    planningand marketing.

    8usiness -ictionary.com3 6n.y.).'eographic rganization. :nline; 6n.d.)

    20ailable at< httporganization.html

    :2ccessed "rd?anuary @1";.

    irgin group

    this comes under the matri* structure.

    1 A % a g e

    http://www.businessdictionary.com/definition/organized.htmlhttp://www.businessdictionary.com/definition/unit.htmlhttp://www.businessdictionary.com/definition/regional.htmlhttp://www.businessdictionary.com/definition/report.htmlhttp://www.businessdictionary.com/definition/administer.htmlhttp://www.businessdictionary.com/definition/function.htmlhttp://www.businessdictionary.com/definition/planning.htmlhttp://www.businessdictionary.com/definition/marketer.htmlhttp://www.businessdictionary.com/definition/geographic-organization.htmlhttp://www.businessdictionary.com/definition/geographic-organization.htmlhttp://www.businessdictionary.com/definition/unit.htmlhttp://www.businessdictionary.com/definition/regional.htmlhttp://www.businessdictionary.com/definition/report.htmlhttp://www.businessdictionary.com/definition/administer.htmlhttp://www.businessdictionary.com/definition/function.htmlhttp://www.businessdictionary.com/definition/planning.htmlhttp://www.businessdictionary.com/definition/marketer.htmlhttp://www.businessdictionary.com/definition/geographic-organization.htmlhttp://www.businessdictionary.com/definition/geographic-organization.htmlhttp://www.businessdictionary.com/definition/organized.html
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    Organization and Behavior

    any assume the Birgin 'roup to be a multinational3 but such is not the

    case. 5ach of the "@@ odd companies of the Birgin 'roup operates separately

    and 8ranson ser0es as shareholder3 chairman3 and public relations supremo.

    ost of them are operating companies that own assets3 employ people3 andoer goods and ser0ices. These operating companies are owned and

    controlled by about @ holding companies. The Birgin 'roup has a 0ery

    comple* structure. Ct has been termed both as a brand franchising operation

    as well as a keiretsu. 6'rant3 @@+) Howe0er3 based on its structure3 the

    Birgin 'roup can be safely termed as an organization with a keiretsu

    structure. 2 keiretsu is a group of organizations3 each of which owns shares

    in the other organizations in the group3 and all of which work together to

    further the groupDs interests. 6?ones3 ills3 Eeatherbee3 4 ills3 @@&)

    !urthermore3 such a large organization with a comple* structure needs to be

    organic in order to be able to adapt to changes in its en0ironment. 2n

    organic structure promotes Fe*ibility3 so people initiate change and can

    adapt 7uickly to changing conditions. 6 ?ones et al.3 @@&)

    ,onsidering each of the indi0idual companies as a department pro0iding a

    uni7ue product or ser0ice3 it is e0ident that they e*hibit product

    departmentalization. %roduct departmentalization is the di0ision of the

    departments of an organization based on the type of product or ser0ice

    oered. 6?ones et al.3 @@&) !or e*ample3 Birgin obile oers cellular ser0ices

    while Birgin Gecords is a music label. Howe0er3 the structure of the Birgin

    'roup is so comple* that it is necessary for it to not ust ha0e one type of

    departmentalization. !or instance3 Birgin obile has operations in many

    dierent countries like the /3 Cndia and 2ustralia. 2s such3 the type ofser0ice 0aries in each of these countries. This shows that Birgin obile also

    e*hibits geographic departmentalization. 'eographic departmentalization is

    the di0ision of an organization based on the geographic location. 6?ones et

    al.3 @@&) Cn addition3 type of ser0ice and products also 0aries depending on

    the customer base hence e*hibiting customer departmentalization. ,ustomer

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    Organization and Behavior

    departmentalization is the di0ision of an organization based on the kind of

    customers it ser0es. 6?ones et al.3 @@&) Since the Birgin 'roup of companies

    e*hibit so many types of departmentalisations3 the organization as a whole is

    said to ha0e a hybrid structure3 which is a mi*ture of two or more kinds ofdepartmentalisations. This multi>di0isional approach helps the Birgin 'roup

    to easily adapt to the cultural3 technological and other forces in the region it

    e*pands to.I

    / 5ssays. Jo0ember @1". The Birgin 'roup 2n Cnsight Cnto rganizational

    Structure 2nd ,ulture 8usiness 5ssay. :online;.

    20ailable from< http0irgin>group>

    an>insight>into>organizational>structure>and>culture>business>essay.phpK

    crefL1

    :2ccessed 1( -ecember @1#;.

    !atri" structure

    an organizational structure that o0erlays two structures in order to inFuence

    the benet of both.

    The companies like 0irgin use this structure because there are many sub

    companies comes under the head company.

    5*

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    Organization and Behavior

    b),ompare and contrastthe culture of the selected organizations.

    2ccording to -eal and ennedyDs cultural models3 there are four main types

    of culture.

    Eork M hard3 play M hard culture

    Tough M guy macho culture

    %rocess culture

    8et M the M company culture

    fc comes under the work M hard3 play M hard culture.

    #isk

    Now High

    Feedba

    ck and

    re$ard Gapi

    d

    %ork&

    hard'

    play&hard

    culture

    ough&guy

    acho

    culture

    Slo

    w

    *rocess

    culture

    Bet&the&

    copany

    culture

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    Organization and Behavior

    %ork +ard' *lay +ard Culture,

    This culture is the world of sales 6among others). 5mployees themsel0es take

    few risksO howe0er3 the feedback on how well they are performing is almost

    immediate. 5mployees in this culture ha0e to maintain high le0els of energy

    and stay upbeat. Heroes in such cultures are high 0olume salespeople.

    Cnterestingly3 this culture recognizes that one person alone cannot make the

    company. They know it is a team eort and e0eryone is dri0en to e*cel.

    ,ontests among employees are common here3 as they dri0e e0eryone to

    reach new heights.

    ind Tools3 6n.y.).-eal and ennedyPs ,ultural odel /nderstanding Gites and

    Gituals in ,orporate ,ulture,:nline; 6n.d.)

    20ailable at< http

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    Organization and Behavior

    c) 5*amine the relationship between the organizationDs structure and culture3and the eects on business performances in the selected organizations.

    KFC china

    Ehen fc arri0e to china they had lots of problem with their culture. ,hinese

    go0ernment oRcials had no idea of what franchising meant3 intellectual

    property and franchising laws were weak. There were no known foreign

    brand names3 fc did not want to franchisees to buy the brand and then be

    able to sell whate0er they wanted with no legal recourse. !oreign

    multidi0isional organizations learned 7uickly that they couldnDt do business

    in china without go0ernment in0ol0ement. 2s a result fc has $@ registered

    companies in china. 2nother problem is de0eloping a marketing program

    that will attract ,hinese to fc instead of other fast food restaurant. The

    management of ,hinese kfc knew that kids donDt come alone but bring with

    them their friends. To attract kids they added a new menu and pro0ided

    entertainment.

    5.g. combo meals.

    ,ombo meals not only attacked but also simplify communication and choice.

    2t fc kids ha0e a corner recei0ed for them. The corner is staed with a

    professional hostess whose ob is to talk with the kids. To ensure that they

    are ha0ing a good time3 the hostess were singing and dancing with them.

    The a0erage that fc hosts more than #"@ birthday parties annually.

    To compete in the fast food industry they had to dierentiate fc from

    millions of mom M and M pop restaurants. Therefore they needed to pay

    considerable attention to ,hinese 0alue. Ehen a restaurant opens3 it is

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    Organization and Behavior

    celebrated with a traditional Nion dance to bring good luck and attend by

    local politicians3 e0en though traditional ,hinese fast food restaurants ha0e a

    lot of choice on their and are cheap3 controlling the standard of their cooking

    is diRcult. fc prided themsel0es on the consistency of their oerings.5mployees are trained to prepare food consistently by following rules and

    procedures spelled out in the operating manual. The menu at fc pro0ides an

    important intangible social freedom. Cn ,hinese restaurants3 what you order

    has social and implications. The wrong order can cause the person to lose

    face with friends. 2 standard and restricted menu with a limited price range

    frees the dinner from the concern. ,hina has a strong desire to catch up with

    the rest of the world. -ining at an 2merican restaurant enables ,hinese

    people to feel connected to the rest of the world. The younger 8eiing people

    who ha0e higher incomes and wish to be connected more closely to the

    outside world3 eating at mc -onaldDs or fc or pizza hut is an integral part of

    their new lifestyles.

    There is a shortage of management challenge throughout china. Through its

    use of standardized recipes3 cooking methods and other practices3 fc is

    looked upon by the ,hinese people as a company that practices scientic

    management. This acknowledgement attacks consumer an*ious to

    participate in the modern world. The cleanliness of the bathrooms3 the no

    smoking policy3 the kidDs corner 6no parents allowed)3 good ser0ice3 and lack

    of noise are all attractions that distinguish fc from other fast food

    restaurants.

    irgin group

    2t Birgin our people come rst because they are the core of our culture and

    the force behind our success. Their insatiable curiosity about how to keep our

    brand and our customers number one priorities ensure that Birgin always

    pro0ides heartfelt ser0ice.

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    Organization and Behavior

    Birgin3 @1.ur story3 your story3 her story3 history. :nline; 6 n.d. )

    20ailable at< httpand>planet=our>story>your>story>

    her>story>history

    :2ccessed< "[email protected][email protected]";

    d) 5*amine the factors which inFuence indi0idual beha0ior at work with

    reference to the abo0e two organizations.

    There are $ main factors that inFuence indi0idual beha0ior at work.

    %ersonality %erception 2ttitude

    2bility Stress and change

    he individual behavior o. virgin group eployees

    BirginDs assumption is that it is fun to make customer happy. Satised

    employees are a precondition for satisfying customers3 which in turn is a

    precondition for making prots. anagers donDt ha0e to bribe employees to

    do this3 but that do need to sustain the morale and enthusiasm. Ctall comes

    down to people3 the ,5 of the 0irgin group3 Gichard 8ranson remarked in

    an inter0iew with -a0id She to !orbes. Jothing else e0en comes close. 8y

    making employee happy rst3 customers will be happy3 he reasons.

    + A % a g e

    http://www.virgin.com/people-and-planet/our-story-your-story-her-story-historyhttp://www.virgin.com/people-and-planet/our-story-your-story-her-story-historyhttp://www.virgin.com/people-and-planet/our-story-your-story-her-story-historyhttp://www.virgin.com/people-and-planet/our-story-your-story-her-story-history
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    Organization and Behavior

    8ranson says his philosophy of look for the best and you will get the best

    helped him build an empire recognized young3 fun culture. CtDs much more

    fun looking for the best in people3 he says. %eople donDt need to be told

    where theyD0e slipped up. He thinks that they can gure that out forthemsel0es. 8ranson feels strongly that if an employee is not e*celling in one

    area of the company3 he or she should be gi0en the opportunity to do well in

    a dierent 0irgin group ob. !iring is seldom an option. 2s 8ranson puts it in

    his autobiography3 C get the best people. C asked 7uestions3 and then C say3

    letDs ha0e some fun. Ct is not possible for employees to enoy themsel0es if

    their ob or career under threat3 he belie0es. Sta should come rst3 he

    says.

    oti0ation strategies e*tend to inno0ati0e ideas. 8ranson belie0es that

    employees are entrepreneurs in their own right. The key to encouraging

    inno0ation within the 0irgin ranks3 according to 8ranson3 is to listen to any

    and all ideas and to oer feedback. 5mployees often lea0e companies3 he

    belie0es3 because they are frustrated that their ideas are not heard.

    Cnteraction between managers and employees are fundamental. !or the

    companies in which he ser0es as both chief e*ecuti0e and chairman3

    8ranson writes his sta informal letters in his paper notebook to tell

    e0erything that is going on3 and he encourages them to write him with any

    idea or suggestions. They do. C really do listen to what people say3 e0en

    when we are out in a club at " a.m. and someoneDs passing on an idea in a

    drunken slur. 'ood ideas come from people e0erywhere3 not in the

    boardroom. 8ranson also gi0es them his home address and phone number.

    He responds with a letter personally. 8ranson belie0es the most important

    7uality a good leader can ha0e is the ability to care about others. Uou canDt

    be a good leader unless you generally like people. That is how you bring out

    the best in them3 he says.

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    8ranson learned early on to de0elop his delegation skills. < as much as you

    need a strong personality to build a business from scratch3 you also must

    understand the art of delegation3 he says. C ha0e to be good at helpingpeople run the indi0idual businesses3 and C ha0e to be willing to step back.

    The company must be set up so it can continue without me. 8ranson has

    de0eloped a le0el of trust with his top managers by setting the direction and

    then stepping back to let them na0igate. He comes up with the original idea3

    spends the rst three months immersed in the business3 and then gi0es chief

    e*ecuti0es a stake in the company and asks them to run it as if itDs their own.

    Trust in managers and employees are particularly important as 8ranson looks

    to build 0irgin.

    8ranson also belie0es in gi0ing people a second chance3 as he did with his

    best friend3 Jick %owell. 'i0epeoples a second chance if they screw up.

    50en people who ha0e stolen from us ha0e become3 when gi0en a second

    chance3 incredibly loyal and 0alued employees. C donDt know where CDd be if C

    had not been gi0en second chances.

    8ranson belie0es in a share the wealth philosophy. Ehen the ury awarded

    V $@@3@@@ and 0irgin 2tlantic V [email protected]@@@ as the result of the libel action

    against 8ritish airways3 it was the highest in the history of uncontested libel

    settlement in the /nited ingdom. 8ranson ga0e it all to his employees. 2s a

    result of his treatment3 his sta is incredibly loyal and protecti0e of him.

    -re*ler3 .3 @1@. 8usiness Neaders Eho changed the Eorld. 1STed. umbaioperation. 2lthough some facets of this theory are outdated3 some of

    its features are still applicable in the business structure of modern times. 2s

    a good illustration3 Birgin group may be ha0ing what appears as a rela*edworking en0ironment but some features of scientic management are in

    application. Such aspects of scientic management used in Birgin 'roup

    include training3 selection3 and payment pecked on results. Some employees

    are compensated because of their outstanding entrepreneurial ambition and

    inno0ati0e thinking. utstanding performance in Birgin 'roup is not only

    measure by the amount of nancial input an employee has brought but also

    creati0ity and ability to think outside the bo*. 2nother model of management

    is bureaucracy3 which sees the organization of business as one unit. The

    pioneers of this school of thought belie0ed that family practices could not be

    delinked from the organization. Therefore3 there a need to merge family

    goals with those of the entire organization.

    rganizational goals of Birgin 'roup cannot be dissociated with those of Sir

    Gichard 8ranson. This is enough reason to conclude that the management

    style in the organization has some elements of bureaucracy in leadership.

    a* Eeber rst formulated this kind of management approach. The impact

    of entire society is gi0en considerable attention by the management. Cn this

    model3 the organization is considered as an integral part of an amorphous

    society. -espite ha0ing some draw backs3 this model has found its way in to

    the Birgin 'roupDs management style. Cn a bid to meet the needs of the

    society it is ser0ing3 0irgin management gi0e priority to the impact3 its

    strategies will ha0e on the society. This is the reason as to why Birgin2tlantic3 an airline company under Birgin 'roup3 has been on the frontline on

    the crusade for en0ironmentally friendly et fuel.

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    Organization and Behavior

    !urthermore3 there is an element of administrati0e theory in the

    management of Birgin 'roup. %ropounded by Henry !ayol3 administrati0e

    theory 0iew management as a chronological process comprising of planning3

    organization3 training3 and coordination of functions. This model representsthe transitional theory between the traditional and modern models. Ct is

    characterized by rigid and mechanistic tenets. Birgin 'roup has a little bit of

    these management principles. Ct has de0iated from it by allowing liberalized

    management at departmental le0el. Howe0er3 at the departmental le0els3

    there is need to ad0ance the principles of management. The thoughts of

    employees should remain to be customized to suit these principles.

    The management of Birgin group with a hea0y weight is contingency

    approach. The decision>making and plans e*ecutions are done with close

    reference to the problem at hand. This has seen the group attain notable

    milestones in streamlining its management3 which e0entually translates in to

    re0enues. Cn this management model3 the dynamics of business

    en0ironments is appreciated. Ct recognizes the fact that dierenten0ironments re7uire dierent management approaches.

    ,oncisely3 it is true to argue that Birgin 'roupDs success story of many years

    is a factor of many things including it optimal management model. The group

    has been able to amalgamate the presets of e0ery model to suit its present

    needs. Ehat is emerging 0i0idly from this global organization is the fact that

    the eRcacy of management is determined by its ability to mo0e away from

    con0entional and rigid re7uirements. o0ing with the trends in the market

    has been pro0en benecial in optimization of prots.

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    The most common feature that has made him achie0e great milestones in

    business de0elopment is the ability to moti0ate and rally fellow partners in

    pursuit of a business opening. Cf the recent ac7uisitions are taken as an

    illustration3 he managed to con0ince fellow stakeholders in adoption of newstrategy.

    Cn his 0entures3 he looks for people who are outgoing and willing to start new

    businesses. His capacity building nature has made him an admirable leader

    of modern business. His focus spans beyond the orthodo* perspecti0e of

    employees where the management e*pects the workers to perform to

    deser0e compensation. The interest of 8ranson surrounds asking the

    7uestion as to whether a partner or employee is optimizing his or her

    capacity. He is interested also with people who are willing to take risks and

    the best in their tasks. !or a long time3 he has succeeded in bringing out the

    best out of his sta3 a core character of transformational leader. There is no

    doubt about the fact that 8ransonDs success since 19(@s is directly attribute

    to his attitude towards management of a team. Cn his approach3 the barriere*isting between the employees and management is broken.

    Cn fact3 many people working with him approaches business issues with a

    philosophy of achie0ing through inno0ati0e thinking and not adhering to the

    preset rules. 8ecause of the ideologies propagated by 8ranson3 all

    participants in the organization share similar 0alues. He formulated his ownstyle of leadership3 priding himself on integrating the employees in to his

    style and seeking their thoughts on ways of impro0ing 0alue to customers.

    5mployees are e*pected to internalize these 0alues and respond in

    accordance to them. Cntegration of corporate 0alues in leadership strategies

    means that there is little interference by e*ternal forces. Je0ertheless3 Sir

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    8ransonDs approach does not mean that the employees are entirely

    dependent on the chairmanDs thoughts. They are e7ually accountable of their

    actions like fellow employees under transactional leadership. Cn order to

    moti0ate his employees3 8ranson and his management team3 especiallyhuman resources management department ha0e systems of enhancing

    commitment of employees through bonuses3 stock options and prot

    sharing3 and internal promotion where0er possible.

    2part from Sir 8ransonDs input in the success of 0irgin 'roup3 there is a

    contribution of organizational culture in the company. rganizational culture

    e*isting in Birgin 'roup in fairly comple*. The 'roup ser0es more than 1@@

    companies operating separately in the industries which are not entirely

    related. The common feature within e0er company in the group is the

    glamorous Birgin 8rand. The brand remains unchanged in all companies

    operating in dierent businesses. This is a similarity3 which puts a hea0y

    responsibility on each department or di0ision to positi0ely represent the

    brand. The image re0eals an o0erall image of 7uality and inno0ation inherentin the group. Through the creation of an e*clusi0e brand3 the company has

    been able to consolidate and maintain desirable loyalty le0els among the

    customers.

    The di0erse business portfolio e0ident in Birgin 'roup businesses is helpful in

    building and maintaining loyalty in 0arious industries. This is the main reasonas to why the company has witnessed high le0els of success. The managers

    in the company employ the concept of creati0ity to encourage employees to

    enhance their contribution to the group in whate0er le0el of hierarchy. They

    discourage the scenario where employees sit back to e*ecute instructions.

    5mployees ha0e the capacity of producing cutting>edge products3 which the

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    whole company will be able to deli0er to the market. They can also formulate

    ways of impro0ing eRciency in the company. This is an outstanding feature

    of Birgin 'roup. 50ery indi0idual has a say when it comes to products

    de0elopment. The management style in application at Birgin 'roupencourages members of sta to be competiti0e. This will e0entually build a

    desire in the hearts of employees to see the company succeed so that they

    can be recognized as contributors to new and inno0ati0e business model.

    There is no clear cut between management and leadership within Birgin

    'roup. Transformational leadership emanates from e*ecuti0es and top

    managers in the company. There are harmonized goals set by Sir Gichard

    8ranson and fellow company e*ecuti0es. Barious companies within the group

    will work towards achie0ing those goals. These ambitious goals range from

    utilization of new technology3 e*pansion in international markets3 oint

    0enture with other e*isting companies and loyalty among customers. 'oals

    formulated at this le0el of management are communicated to e0ery

    employee in the company. This is a benecial strategy3 which gi0es e0eryemployee a task to accomplish in fostering the groupDs mission. The senior

    management implores the employees to output their skills in such a way that

    they are going to complement the company. The notion behind this eort is

    to ad0ance the philosophy that the entire benets of the group will

    e0entually lead to indi0idual gains for e0ery person in0ol0ed. The

    contribution in the group will ultimately result in rewards for managers3

    employees3 shareholders3 e*ecuti0es3 and customers alike.

    ne desirable feature of Birgin 'roup is its organizational structure. Through

    its structure the company has succeeded in o0ercoming the challenges

    related to e*pansion. 2n e*pansi0e organization like Birgin 'roup must

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    e*plore ways of handling the massi0e information within the company.

    Through its Fat organizational chart3 Birgin 'roup Nimited has been able to

    handle it e*pansi0e business portfolio with much ease. The reduction of

    horizontal chain of command means that interdepartmental communicationis enhanced.

    2s the le0el of hierarchy mo0es down3 the lower le0els of management tend

    to concentrate more keenly on the management of the company. 2lthough

    leadership is always encouraged among the managers3 it re7uires some

    le0els of strict management to make sure that the task has been

    accomplished. -ierent di0isions within the company ha0e dierent

    management function. 2t Birgin 'roup3 managers ha0e se0eral goals of wide

    scope. 8ecause of the fact that dierent di0isions of the company are

    specialized in their operations3 well>trained and 7ualied mangers are

    re7uired to manage it eecti0ely. Cn most cases3 managers employed by the

    company ha0e a rm background in their sector of specialization. They must

    also pro0e that they are capable by showing a successful record ofaccomplishment. Ct is the sole responsibility of managers within Birgin 'roup

    to ensure that day>to>day operations needed to keep the di0ision running are

    e*ecuted eecti0ely.

    rganization is a 0ital ingredient in the success of Birgin companies. Since

    the group in an amorphous company comprising of se0eral companies3organization is 0ery critical in putting together the processes. To start with3

    the company has many goals to be achie0ed like e*panding the global

    presence and building of customer loyalty. The top e*ecuti0es are

    responsible for determining these goals and making them a0ailable to the

    entire company. The same e*ecuti0e must ensure that these goals are

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    achie0able for them to be recei0ed well by employees. Howe0er3 caution

    should be e*ercised to ensure that the employees are not underutilized.

    ,hallenging goals are important for the employees to feel that they are

    engaged in meaningful tasks. rganization of these goals within the di0isionwill ensure that specic targets are made. 50ery di0ision has separate and

    specialized goals aimed at increasing market share and impro0ement of

    product and ser0ices.

    2s the hierarchy ad0ances to the unior stas3 goals become more precise

    and short li0ed. The targets set at implementation le0els are easily

    achie0able because they are 0ery specic. These specic goals are

    formulated by di0ision managers with close reference to those of the entire

    group. This system of information transfer enables the company to remain on

    track on the ourney to meeting the targets set by e*ecuti0es. Birgin is a

    li0ing e0idence for the fact that this kind of organization is a maor

    prere7uisite for business success. 8reaking down of general goals in to

    actionable points is a desirable feature re0ealed in BirginDs organization.

    2 healthy and workable organizational structure witnessed in Birgin 'roupDs

    businesses is attained with many 0arying strategies. Transformational

    leadership is one of these strategies that ha0e seen the company attain

    great heights of success. This strategy enables people of di0erse

    backgrounds and ability to share a common goal. Through working together3

    a team can combine its membersD eorts and work towards achie0ing

    common goal. Transformational leadership gi0es e0eryone an e7ual chance

    to output his or her ability without reser0ations. 2 critical re0iew of Birgin

    'roup business re0eals that its 0ersatile and inno0ati0e workforce is due to

    the transformational leadership in place. This is in contrast with transactional

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    leadership in which employees are compensated according to performance.

    The draw back with this kind of leadership is that it breeds greedy employees

    whose goal will be to amass rewards as much as possible.

    Cn conclusion3 there are many things to be learned from leadership and

    management of Birgin 'roup Nimited. The company has cut itself a niche in

    0arious industries. Ct has also pro0en that all things are possible with

    dedication and commitment. Through the able leadership of its ,hairman3 Sir

    Gichard 8ranson3 the management team has come up with a uni7ue formula

    of managing large scale businesses like Birgin 'roup. To a large e*tend3 the

    success of Birgin 'roup is directly attributable to the input of Sir 8ranson. He

    has succeeded in opening a new chapter of management3 which de0iates

    from con0entional methods. His liberal and all accommodating approach is

    desirable. There is a formidable blend between management and leadership.

    2 critical re0iew of these two elements re0eals that there is no clears cut

    between the two< a feature that has worked well for the company.

    / 5ssays3 Jo0ember @@". ,ase Study of The Birgin 'roup and Cts

    Neadership :nline; 20ailable atof>the>0irgin>group>

    and>its>leadership>business>essay.php :2ccessed "rd?an @1";.

    b) 5*plain how organization theory underpins the practice of management

    within the selected organizations.

    Birgin was founded in 19(@ as a mail order record business and de0eloped as

    a pri0ate company in music publishing and retailing. Cn 19+& the company

    was Foated on the stock e*change with a turno0er of [email protected] 62"&.$m).

    Howe0er3 8ranson became tired of the public listing obligations< he resented

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    making presentations in the ,ity to people whom3 he belie0ed did not

    understand the business. The pressure to create short>term prot3 especially

    as the share price began to fall3 was the nal straw< 8ranson decided to take

    the business back into pri0ate ownership and the shares were bought back atthe original oer price. The name Birgin was chosen to represent the idea of

    the company being a 0irgin in e0ery business it entered.

    8ranson has said that< WThe brand is the single most important asset that we

    ha0eO our ultimate obecti0e is to establish it as a maor global name.D This

    does not mean that Birgin underestimates the importance of understanding

    the businesses that it is branding. Geferring to his intent to set up a WgreenD

    energy company producing ethanol and cellulosic ethanol fuels in

    competition with the oil industry3 he said3 WEeDre a slightly unusual company

    in that we go into industries we know nothing about and immerse oursel0es.D

    BirginDs e*pansion had often been through oint 0entures whereby Birgin

    pro0ided the brand and its partner pro0ided the maority of capital. !or

    e*ample3 the Birgin 'roupDs mo0e into clothing and cosmetics re7uired an

    initial outlay of only V13@@@3 whilst its partner3 Bictory ,orporation3 in0ested

    [email protected]. Eith Birgin obile3 Birgin built a business by forming partnerships

    with e*isting wireless operators to sell ser0ices under the Birgin brand name.

    The carriersD competences lay in network management. Birgin set out to

    dierentiate itself by oering inno0ati0e ser0ices. 2lthough it did not operate

    its own network Birgin won an award for the best wireless operator in the /.

    Birgin !uels appears to be somewhat dierent in that Birgin is putting up the

    capital and using the Birgin brand to attract attention to the issues and

    possibilities that the technology oers. Cn @@$ Birgin announced the

    establishment of a W7uadruple playD media company pro0iding tele0ision

    broadband3 *ed>line and mobile communications through the merger of

    8ransonDs / mobile interest with the /Ds two cable companies. This Birgin

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    ,ompany would ha0e 9 million direct customers3 1.$ million more than

    8Sky83 and so ha0e the nancial capacity to compete with 8Sky8 for

    premium content such as sports and mo0ies. Birgin tried to e*pand this

    business further by making an oer for CTB. This was reected asunder0aluing the company and then undermined further with the purchase of

    an 1+ per cent share of CTB by 8Sky8. This prompted 8ranson to call on

    regulators to force 8Sky8 to reduce or dispose of its stake citing concerns

    that 8Sky8 would ha0e material inFuence o0er the free>to>air broadcaster.

    Birgin has been described as a WkeiretsuD organisation M a structure of loosely

    linked3 autonomous units run by self>managed teams that use a common

    brand name. 8ranson argued that3 as he e*panded3 he would rather sacrice

    short>term prots for long>term growth of the 0arious businesses. Some

    commentators ha0e argued that Birgin had become an endorsement brand

    that could not always oer real e*pertise to the businesses with which it was

    associated. Howe0er3 Eill Ehitehorn3 -irector of ,orporate 2airs for Birgin3

    stated3 W2t Birgin we know what the brand means and when we put our brand

    name on something we are making a promise.D 8ranson saw Birgin adding

    0alue in three main ways3 aside from the brand. These were their public

    relations and marketing skillsO its e*perience with 'reeneld start>upsO and

    BirginDs understanding of the opportunities presented by WinstitutionalizedD

    markets. Birgin saw an WinstitutionalizedD market as one dominated by few

    competitors3 not gi0ing good 0alue to customers because they had become

    either ineRcient or preoccupied with each other. Birgin belie0ed it did well

    when it identied such complacency and oered more for less. The entry into

    fuel and media industries certainly conforms to the model of trying to shake

    up WinstitutionalizedD markets.

    ?ohnson3 '. Scholes3 . Ehittington3 G. @@+. 5*ploring ,orporate

    Strategy.+th5dition. 5ngland< %earson 5ducation Nimited.

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    To analyse the impact of information management within !,3 it is necessary

    to understand and apply 0arious theories. This essay will begin by applying

    the 0e force models established by to !,Ds competiti0e position in the

    rele0ant market. This will assist in determining !,Ds inFuence and strategy

    in the market place3 whilst acknowledging the limitations to the theory. Je*t

    the 0alue chain model theorized by will assess how !,Ds organizational

    structure assists in adding 0alue to its 0arious acti0ities. Hence3 these

    models determine the input of computer management that is re7uired to

    satisfy !,Ds re7uirements3 in order to compete against its ri0als o0er a long

    period of time. !inally the use of C,T within !,Ds management will be

    discussed to determine the competiti0e ad0antage that is achie0ed and

    defended using the Strategic thrust model that has been ad0anced by Ehilst

    discussing the current uses of information technology within !,3 the essay

    will conclude by suggesting impro0ements to information management

    practices3 which could add to the organizationDs eRciency and

    competiti0eness.

    . !i0e !orces odel

    is an important tool in analyzing an organization3 such as !,. This tool

    assists in assessing the protability of its current and future products. Hence3

    in part3 it helps to determine strategic processes especially in a competiti0e

    industry. The !i0e !orces can be summarised as follows.

    0eQforcesQ1.gif

    ,ompetiti0e ri0alries within the market place

    8argaining powers of customers

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    8argaining powers of suppliers

    Threat of substitution

    Threat of new competitors entering the industry

    !,

    !, is a multinational organization that pro0ides fast food to 1 million

    customers in [email protected] countries. entucky !ried ,hicken was originally founded in

    19"@ and changed its name in 19$. 'lobally3 !, is ranked amongst the top

    1@ fast food restaurants in the world and has a worldwide annual turno0er of

    X11 billion. 2lthough !, has performed e*traordinarily well o0er a sustained

    period of time3 the franchise ranks behind c-onalds and ,hicken ,ottage3

    8urger ing3 which illustrates that the industry is competiti0e.

    The !ast !ood industry is in a competiti0e market especially in the /. !,

    has numerous branches within the / and the branch located in Southall will

    be analyzed. Southall is located in Eest Nondon and is a 0ibrant industrial

    area. !, pro0ide a di0erse range of products ranging from chicken3 tosalads3 which increases their scope in the market place.

    ,ompetiti0e Gi0alrypresident HG at !, / andCreland3 says< Ct is 0ery diRcult to compete on cash>based compensation3

    particularly for our hourly employees because of the cost basis. Ee ha0e

    nearly #3@@@ employees in our / business. Small mo0es in base rates of

    pay ha0e signicant multiplier impacts from a cost standpoint3 so we are

    looking at being creati0e about where can :we; dierentiate and where

    should :we; dierentiate that will make a dierence.

    !or all the talk of fast>ser0ice restaurants being a transient career option3 thea0erage length of ser0ice for a typical employee3 such as a restaurant sta

    member3 is two years.

    Geich belie0es the companyDs culture of recognition sets it apart from its

    competitors. Ct is not something you can really fabricate3 says Geich. Ct

    comes o as being 0ery inauthentic if it is not in the -J2 of a business and it

    is 0ery much in our -J2.

    *ositive e0ect on retention

    This has a direct3 positi0e eect on sta retention3 she says. %eople really

    become attached to the culture and they nd it 7uite diRcult to replicate

    outside of our company3 so employees tend to stay.

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    !, also puts a signicant focus on making employees feel 0alued. This is

    manifested in the way employees treat each another3 and is also achie0ed

    through the companyDs reward package.

    !or e*ample3 all employees are eligible for a bonus through a range of

    schemes. The companyDs 7uarterly plans gi0e all sta the chance to earn a

    bonus on top of their income3 whether they are paid on an hourly rate or

    recei0e an annual salary.

    5mployees are udged against two performance measures > customer

    satisfaction and operational basics3 such as how clean the restaurant is >

    which act as hurdles they ha0e to clear before they can begin to recei0e

    bonuses. 8eyond this3 bonuses are based on sales made as a restaurant.

    Bonuses paid in vouchers

    The bonuses are paid in the form of retail 0ouchers up to the 0alue of V@@

    per employee each 7uarter. Geich e*plains using 0ouchers rather than cash

    is intended to create a sense of fun for sta.

    There is a lot of comple*ity that comes with cash3 but there is also fun that

    comes with the retail 0ouchers3 she says. This is not necessarily intendedto be an income supplement. Ct is meant to create energy3 engagement with

    the goals of the restaurant and3 for a team member3 it is fun.

    eanwhile3 managers and senior sta can earn cash bonuses depending on

    how they fare on a balanced scorecard3 which takes into account 0arious

    metrics3 including sales and customer satisfaction.

    Geich says the aim is to use the bonuses to create an ownership mentality

    among !, employees. ,areer progression is also considered to depend on

    this. The company tracks the promotability of its restaurant sta by carrying

    out an in>depth re0iew of their performance twice a year3 with the aim of

    deciding which of them has the ability to mo0e forward in the organisation.

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    !,Ds eorts to change the outside perception of its restaurant sta3 allied to

    the eects of the recession3 which has attracted both sta and customers3

    means the brand is enoying a boom time. Cn !ebruary last year3 it

    announced plans to create 93@@@ new obs across the / in the followingthree to 0e years.

    Benefts o0ering iproved

    The company has also been working to impro0e its benets oering. Nast

    year3 for e*ample3 it worked with ?elf 5mployee 8enets to select a new

    healthcare pro0ider and look into the possibility of introducing total reward

    statements.

    8ut there is still a way to go before Geich will be completely happy with the

    package. !, currently oers a 0oluntary benets scheme for all employees3

    which it introduced with pro0ider %erkz in @@93 but up to now it has not

    oered a Fe*ible benets scheme. This is something Geich is looking into and

    she e*pects to spend the ne*t 1 months in0estigating all the options around

    Fe*3 potentially rolling it out in about two years3 if it suits the business.

    Ehat C do not want to do is take the opinion of consultants3 or my own

    opinion and crank out some whizzy Fe*ible benets oering that really does

    not meet the :rmDs; needs3 she says.

    2lthough Geich is proud of the company she works for3 she belie0es one area

    it could impro0e is communication. /sing the language of !,Ds main

    business of frying chicken3 she describes its present standard of

    communication as unsizzly3 but pledges that it will impro0e.

    otal re$ard stateents

    To achie0e this3 an intranet is in the pipeline3 along with total reward

    statements. Geich hopes the statements3 which will come into operation for

    the rst time ne*t month3 will create more of a dialogue between employees

    and !,Ds hierarchy.

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    C would like to stimulate3 through total reward statements3 the amping up of

    the le0el of discussion from sta gi0ing us feedback and input into their

    benets3 says Geich.

    ,ompanies she belie0es manage employee communications well include 3

    Starbucks and3 perhaps surprisingly3 c-onaldDs. C would be remiss if C did

    not confess that C think c-onaldDs has done some good things3 she says

    C think it is interesting how it has taken an almost consumer approach to

    how it talks about its obs and its benets.

    That is impressi0e. C ha0e communication en0y3 but that is because we

    are going to become stunning at communication.

    Feedback .ro .ranchisees

    2 further challenge for !, is that a number of its restaurants are franchises3

    which it has to be taken into consideration when putting benets in place.

    2lthough each indi0idual franchisee decides who administers core benets

    such as pensions3 !, looks to its franchisees for feedback on other benets.

    any of its non>cash benets are a0ailable to franchisees3 should they

    choose to oer them to their sta3 and its 0oluntary discount package was

    negotiated to include franchise participation.

    So Geich and her team ha0e a number of challenges to face o0er the ne*t

    few years3 not least the @1 pensions reforms3 which she describes as

    daunting.

    8ut there are strong signs that the fast food industryDs image as an employer

    is changing for the better3 and an e0ol0ing benets package at one of the

    industryDs leading players looks set to make that change go from strength to

    strength.

    Z

    KFC at a glance

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    entucky !ried ,hicken 6!,) was founded in 19$3 although ,olonel Harland

    Sanders3 the dri0ing force behind the business3 started ser0ing his original

    recipe fried chicken in 19"@ at a petrol station he owned.

    2fter a motorway was built that bypassed his town3 ,olonel Sanders was

    forced to go on the road to sell his chicken. This led to the rst entucky

    !ried ,hicken outlet being opened in South Salt Nake3 /tah3 in 19$.

    8y the 19&@s3 entucky !ried ,hicken was sold in more than &@@ franchised

    outlets in the /S and ,anada3 and the rst / restaurant opened in %reston3

    Nancashire in 19&$. Today3 there are more than (@@ outlets in 8ritain3 both

    franchised and company>owned.

    Cn 19+&3 !, was bought by %epsi,o3 ha0ing been bought three times before

    by dierent companies. Cn 199(3 it was spun o into an independent

    company3 Uum[ 8rands.

    Uum[ 8rands ha0e its global head7uarters in Nouis0ille3 entucky and its /

    base in Eoking3 Surrey. The company also owns e*ican food chain Taco

    8ell3 sh>and>chips business Nong ?ohn Sil0erDs3 24E Gestaurants3 %izza Hut

    and Eing Street.

    Career history1 !isty #eich

    Te*an isty Geich says she fell into HG by accident after taking an internship

    with /S telecoms company 2T4T in 199#.

    She stayed with the rm for more than 1@ years3 rising to become 0ice>

    president of HG for two di0isions3 before oining Uum[ 8rands in @@$ as chief

    people oRcer of its 24E Gestaurants and Nong ?ohn Sil0erDs businesses.

    She mo0ed up to become 0ice>president of global talent management at

    Uum[ 8rands at the beginning of @@&. Since 2ugust @@(3 she has been

    0ice>president3 HG for !, / and Creland.

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    Geich was not daunted by her career path in0ol0ing a mo0e o0erseas. C

    oined Uum[ 8rands3 our parent company3 e*plicitly because C wanted to

    mo0e abroad3 she says. C wanted opportunity3 C wanted to stretch myself

    and this opportunity came up and they oered it to me and C was e*tremelyfortunate to be able to come o0er here.

    Geich is proud of the fact that people seek her out for ad0ice. There are

    indi0iduals C ha0e hired or indi0iduals C ha0e had the opportunity to de0elop

    and as C look back3 that is what C am most proud of3 she says. %articularly

    the people who still stay in touch and especially people that still seek me for

    out for coaching and ad0ice and they are progressing and still dri0ing their

    careers. C get a real buzz out of that.

    Bonuses add spice to KFC benefts enu

    %etra 8ool3 restaurant general manager at !,Ds 8ra knell restaurant3 has

    worked for the company for @ years.

    8ool has pri0ate medical insurance for her family and is a member of the

    companyDs pension scheme3 but she most 0alues !,Ds 7uarterly bonus plan.There are 0ery set guidelines on what we ha0e to achie0e to get a certain

    amount of money 0alue as a bonus3 so3 four weeks before you get paid3 you

    can work it out > how much you are going to get3 what you can aord and

    what you are going to do with all your money3 she says.

    Ct is enoyable because you are getting rewarded for the hard work you are

    putting in and for the achie0ements you make.

    8ut nancial rewards are not the only reason 8ool has stayed with !, for @

    years. Ct is probably the people C work with3 she says. C get great oy out of

    taking some people on3 training them3 and making them into team leaders3

    assistant managers3 in building the ne*t manager and gi0ing them some

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    learning on their way. C think that is 0ery enoyable to do3 to see people

    grow.

    KFC2s benefts o0ering

    *ension

    Stakeholder pension scheme open to all salaried employees with more

    than three monthsD ser0ice3 with no company matching contributions.

    -ened benet scheme3 which was closed to new members in @@&3

    has an employee contribution of (Y and employer contribution of 1#Y.

    2 dened contribution scheme is a0ailable to all employees.

    ,ontributions 0ary depending on grade to a ma*imum of &Y employee

    and 9Y employer.

    +ealth and $ellbeing

    5yecare 0ouchers for oRce>based employees and business>needs

    dri0ers.

    Cncome protection for all salaried sta.

    %ri0ate medical insurance 6%C) for salaried employees.

    5mployee assistance programme.

    Faily&.riendly perks

    2d>hoc Fe*ible working arrangements.

    5nhanced maternity and paternity pay for salaried employees.

    ,hildcare 0ouchers.

    +olidays

    @ days for sta at all le0els3 up to "@ days after 1@ yearsD ser0ice.

    Other benefts

    Boluntary benets programme.

    %erformance>based bonus and recognition schemes.

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    W5mployee of the 7uarterD scheme.

    ,hamps ,lub for top $@ restaurant managers and ,hampions ,lub for

    top 1$ restaurant managers.

    !ree meal for all sta when on shift 6subect to shift length3 according

    to employeeDs contract).

    Tasting kitchen at company H\3 allowing sta to try potential new

    products.

    ,ompany car for business>needs dri0ers and senior sta.

    !ree fruit for head oRce employees.

    5mployee 8enets3 [email protected]@).!, keeps sta recognition and bonuses on the

    menu, :nline; 61st?une @1@).

    20ailable athttpcentre=analysis=kfc>

    keeps>sta>recognition>and>bonuses>on>the>menu=1@&9.article

    62ccessed +th?anuary @1")

    3#435 4#O6*

    5mployee moti0ation can be di0ided into two groups< intrinsic and e*trinsic.

    Cntrinsic moti0ation is the work moti0ation in the absence of such e*ternal

    factors as pay3 promotion3 and co>workers 62amodt3 @13 p."&). 5*trinsic

    moti0ation3 on the other hand3 arises from a range of compensational factors

    such as nancial rewards3 career opportunities3 co>workers etc.

    oreo0er3 moti0ation in organizations can be di0ided into three dierent

    perspecti0es< need>based3 process>based and learning>based. Jeed>basedperspecti0e on moti0ation is central to the idea that humans are primarily

    moti0ated by deciencies in one or more important needs or need

    categories 6'riRn and oorhead3 @113 p.9").

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    http://www.employeebenefits.co.uk/resource-centre/analysis/kfc-keeps-staff-recognition-and-bonuses-on-the-menu/10692.articlehttp://www.employeebenefits.co.uk/resource-centre/analysis/kfc-keeps-staff-recognition-and-bonuses-on-the-menu/10692.articlehttp://www.employeebenefits.co.uk/resource-centre/analysis/kfc-keeps-staff-recognition-and-bonuses-on-the-menu/10692.articlehttp://www.employeebenefits.co.uk/resource-centre/analysis/kfc-keeps-staff-recognition-and-bonuses-on-the-menu/10692.article
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    2braham aslowDs Hierarchy of Jeeds is the most basic and the most

    popular theoretical frameworks related to need>based perspecti0e on

    moti0ation. 2ccording to the theory human needs can be classied into

    se0eral layers and an indi0idualsD most immediate needs ha0e to be satisedin order to upper layer needs to be used as moti0ational factors 6aslow3

    19#").

    Theoretical framework of Hierarchy of Jeeds is eecti0ely utilised by Birgin

    2tlantic in order to moti0ate its workforce at all le0els depending on the

    nature of their immediate needs. Specically3 while moti0ational tools for

    unior le0el employees3 mainly include nancial incenti0es3 emphasize is

    gi0en to the perspecti0es of personal and professional growth when

    moti0ating medium le0el managers.

    Howe0er3 it is important to note that nancial incenti0es remain to be one of

    the most eecti0e moti0ational tools for employees at all le0els and this fact

    is fully acknowledged by Birgin 2tlantic management. artins [email protected]@)

    conrms this 0iewpoint by informing that the compensation won by Birgin

    2tlantic from 8ritish 2irways for libel suit has been shared with all employeesof Birgin 2tlantic.

    Two !actor theory of !rederick Hertzberg represents an alternati0e important

    theoretical framework related to the topic of employee moti0ation. This

    need>based theory distinguishes two factors M moti0ation factors and

    hygiene factors that play signicant role on the le0el of employee

    moti0ation. 2ccording to the theory3 moti0ation factors such as

    responsibility3 achie0ement3 and recognition are percei0ed as primary causes

    of employee moti0ation.

    Hygiene factors3 on the other hand3 such as working conditions3

    remuneration3 company policies etc. do not necessarily moti0ate employeesO

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    howe0er3 if they are inade7uate3 they pro0e to be sources of dissatisfaction

    and de>moti0ation for employees.

    2n analysis of implementation of this theory in practice by Birgin 2tlantic

    indicates that both3 hygiene3 as well as3 moti0ational factors are eecti0ely

    addressed by airline management in order to increase the le0els of employee

    satisfaction and moti0ation.

    !or instance3 Birgin 2tlantic has contracted with ,apital ,apture consultancy

    rm to reduce data processing time by eighty per cent3 and as a result Birgin

    2tlantic has achie0ed the capacity of oering personal training and

    de0elopment to employees based on their performance le0els 6Gesource

    ,entre3 @[email protected] online).

    2dditional employee moti0ation tools e*ercised by Birgin 2tlantic include

    oering 0arious charitable perks. !or e*ample3 &@ members of the company

    employees ha0e climbed ount enya in order to raise V"$3@@@ for a 0illage

    in enya 6%eterson3 @1@).

    oreo0er3 communication and employee in0ol0ement is another powerful

    moti0ational tools e*ercised in Birgin 2tlantics. Jamely3 Gichard 8ranson3

    founder of the brand is engaged in writing his sta what he describes as

    WchattyD letters and emails to let them know what is going on3 and

    encouraging them to write back with comments and ideas 6'rout and

    !isher3 @113 p.#$).

    Gesearch ethodology > Jecessary knowledge to conduct a businessresearch3 [email protected]@).Birgin 2tlantic 2irlines< employee moti0ation3 leadership and

    organizational culture, :nline;

    20ailable at< httpmethodology.net=0irgin>atlantic>airlines>

    employee>moti0ation>leadership>and>organisational>culture=

    #9 A % a g e

    http://research-methodology.net/http://research-methodology.net/virgin-atlantic-airlines-employee-motivation-leadership-and-organisational-culture/http://research-methodology.net/virgin-atlantic-airlines-employee-motivation-leadership-and-organisational-culture/http://research-methodology.net/http://research-methodology.net/virgin-atlantic-airlines-employee-motivation-leadership-and-organisational-culture/http://research-methodology.net/virgin-atlantic-airlines-employee-motivation-leadership-and-organisational-culture/
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    62ccessed + ?anuary @1")

    Task #

    a) -escribe the nature of groups and groupDs beha0ior of the selected

    organizations.

    Teamwork is 0ery important to KFC sta because for a 7uick and reliable

    ser0ice they need to communicate3 help and get support from each other in

    working at registry3 preparing and ser0ing food and in dri0e through.

    $@ A % a g e

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    !, is an organization which employed sta from dierent ages3 cultures3

    regions and religious backgrounds. These employees should manage their

    life styles according to their workplace. They should understand the workingability3 strengths3 weaknesses and how to respect each memberDs culture.

    irgin group is a group of companies which include more than #@@

    organizations. The ,5 of the company r. Gichard 8ranson is a person who

    lo0ed to work s a team.

    7#ichard Branson1 ea$ork $ins in a crisis

    'rowing up in the south of 5ngland3 we didnDt see a lot of snow3 but after a

    big storm my father would always say3 ThereDs nothing like a good snowfall

    to get the neighbors talking to each other.

    He was right. ur neighbors3 who usually kept to themsel0es3 would be

    gal0anized into helping each other to dig out their cars. C heard similar tales

    from my grandmother about how e0eryone pulled together during Eorld Ear

    CC.

    2 more recent e*ample of the power of teamwork is how ?ames wangi3

    @1 winner of 5rnst 4 UoungDs Eorld 5ntrepreneur of the Uear award3 pulled

    enyaDs 57uity 8ank back from collapse by smartly handling a crisis

    situation.

    Ehen wangi rst took the reins as nance director in 199"3 57uity was a

    small3 insol0ent building society about to close. -etermined to sa0e it3wangi asked the sta to oin forces with him to turn things around. He

    asked them to use their personal networks to encourage people to oin the

    society.

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    wangi told the magazine Kenya Yetu that soon afterward3 he was able to

    issue a raise to employees. He also persuaded them to use $ per cent of

    their salaries to buy shares in the company.

    Jow they were in0ol0ed. Ct was as much their company as anybody elseDs3

    he said. They knew that if they succeeded3 they had a lot to gain.

    Their new role as shareholders would further inspire employees to work

    together and build the 0alue of their e7uity stake3 pay che7ue by pay

    che7ue.

    wangiDs strategy worked< The bank began to e*pand. Cn @@&3 it was listed

    on the Jairobi stock e*change3 and shareholder 0alue rose rapidly. These

    days3 5rnst 4 Uoung says3 57uity 8ank is the biggest bank in the region by

    customer base3 with more than ( million customers in enya alone. wangi

    has been ,5 since @@#.

    Cf your company is faced with a nancial crisis3 make your team part of the

    solution. -onDt shut yourself in your oRce M get out and tell sta whatDs

    going on. 2s you consider strategy3 remember indiscriminate lay>os3 pay

    cuts and benet reductions will probably make a bad situation worse.

    Cnstead3 enlist your employeesD supportO reward them for commitment. Uour

    ability to foster a sense of teamwork can mean the dierence between

    success and failure. Ehen management fails to listen and respond to sta

    concerns3 they may turn to unions. Ehile unions are set up to gi0e

    employees more clout with management3 they fre7uently become an e0en

    greater roadblock between the two groups as relationships grow distant. Cf

    you are leading a company where unions are established3 itDs important to

    set up great communications with union leaders3 especially in tough times.

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    /nlike so many of its competitors3 constantly at odds with their unions3

    Southwest 2irlines has a0oided bouncing from one crisis to another partly

    because of the strength of labour>management relationships. Herb elleher3

    legendary leader of Southwest3 and his successor 'ary elly ha0e led thecompany to decades of protability M and it is one of the most hea0ily

    unionized airlines.

    f course3 crises come in all sizes3 and your employees ha0e to be ready to

    work with each other on defusing small emergencies as well. 2 few years

    ago3 when C was waiting at Heathrow for a Birgin Fight to Nos 2ngeles to take

    o3 a small crisis emerged in the form of a long weather delay. There is

    nothing an airline can do about such e0ents3 but not e0ery passenger sees it

    that way. C watched as one of our agents tried to placate an agitated male

    customer.

    Ehen she was done3 C commented3 Tough day3 ehKDD She said3 Jot really. C

    enoy days like this because we all really pull together as a team in keeping

    the passengers informed and comfortable3 so you go home feeling youD0e

    put in a good dayDs work. -ays when e0erything works like clockwork arenDtnearly as rewarding M for us3 at least[DD 6C was glad she added the last few

    words.)

    Such connections between your people are built o0er time. This agent

    learned to rely on her team through her e0eryday work with friendly

    colleagues3 by her managerDs listening to her suggestions and following up

    on them3 and by managementDs encouraging her super0isors to hold e0ents

    that allow the agent and her colleagues to get to know each other outside

    the oRce. These small touches can add up to a team.

    C ne0er mentioned it to my father3 but C noticed as soon as the snow melted3

    the neighbors would disappear behind their hedgerows again. -onDt make

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    the same mistake at the oRce< nce the crisis is a0erted3 donDt slip back into

    old ways. eep that wartime spirit of working together ali0e and well.

    Gichard 8ranson< Teamwork wins in a crisis :nline;

    20ailable at