Analysis of the Culture of Virgin Atlantic British Airline Company

Question: Discuss about the Analysis of the Culture of Virgin Atlantic British Airline Company. Answer: Introduction Virgin Atlantic is a British airline company and its head office situated in Crawley United Kingdom and international offices are located at Norwalk, Barbados, Johannesburg Shanghai, Hong Kong, Delhi, Lagos and Dubai. It was established in 1984 as British Atlantic and launched by Richard Branson. It is the first airline industry which has used the Airbus A340-600 in June 2002 and it is the well recognize brand in the air (Winsnes, 2007). Now a days Virgin Atlantic is managed by Singapore airlines and virgin groups. In Virgin Atlantic approximant 8875 employees are working and Virgin Atlantic is the first airline who is providing personal entertainment for all passengers in all classes. Virgin Atlantic also maintains 10 lounges they are called clubhouse, they are located in London, New York, Newark, Boston, Washington, San Francisco, Los Angeles and Johannesburg. Virgin Atlantic aircrafts drive three air class cottage they are such as economy, premium economy and upper class (Francis, Dennis, Ison Humphreys, 2007). Premium economy has separate check in area, wide seat having more legroom and upper class includes seat which converts into a fully flat bed. Economy class is the standard class and provides lot of facilities such as free meals, drinks and lumber support for the passengers. The revenue and operating income of Virgin Atlantic is approximant 2,689 billion GBP (2016) and 153.2 million GBP (2016). Virgin Atlantic provides comprehensive and innovative customer services to the passengers. Virgin Atlantic is known as a high level of brand therefore huge amount of financial resources are available to expansion the business of Virgin Atlantic. The company adopts excellent strategy and policies for improving customer services (Jolly, Lidiak Dickin, 2008). Micro and macro environment factors affect the business of Virgin Atlantic from many ways so company should analyze these factors for the success of association. Macro environment factors refer to those factors which cannot be controlled by the company. They are such as social, cultural, political factors, technological and legal factors. Virgin Atlantic should improve the technology for providing high quality of services to its passengers and it should obtain advance technology for improving procedures and processes of administration. Another side environment and social factors also plays significant role in airline industries because society wants and expects the services which are provided by the aviation industries (Martins Souza, 2008). Other side micro environment also affects the business of any company. Micro environment refer to those factors which can be easily controlled by the company. These factors include customers, suppliers, employees, shareholders and competitors (U pham, Tomei Boucher, 2009). The dealers of Virgin Atlantic are Boeing and Airbus therefore both are plays important role in business of Virgin Atlantic. It also focuses on SWOT analysis for accomplishment of goals and growth of business. Virgin Atlantic identifies and analyzes the strengths, weaknesses, opportunities and threats of the organization with the help of SWOT analysis (Nygren, Aleklett Hook, 2009). Analysis This report is based on organization culture of Virgin Atlantic and it is explained the background and business of Virgin Atlantic company. Another side this report is explained the Harrison model of culture and Edger schein culture model. It provides detail description of chosen framework for Virgin Atlantic (Rossell Jr, Patch Salmons, 2007). Virgin Atlantic is a British airline company and it provides inventive services to their passengers. Virgin Atlantic has won various awards such as FTA multimodal air cargo operator of the year award in 2017, Payload Asia belly carrier of the year (2015), ACN cargo airline of the year and air cargo award of excellence in 2014 and many other awards. This report is also explained the culture issues which arise in Virgin Atlantic and framework to solve the culture issues. Here, Harrison model of culture has been selected by Virgin Atlantic to solve these issues and problems. Virgin Atlantic faces many problems like teamwork, coordination, motivat ion and conflicts among employees (Cassoff, Campana Myklevoll, 2007). All these problems can be solved by the Harrison model of culture because Harrison model focuses on power, task, roles and person culture. In this report Virgin Atlantic selects the Harrison model of culture it does not select Edger Schein culture model due various consequences. Edger Schein model does not provide strong framework for culture issues and it does not define the differences between ostensible culture and implicit assumptions so company uses Harrison model of culture. Another side this report is focused on the Micro and macro environment of Virgin Atlantic and SWOT analysis of Virgin Atlantic (Lacar, 2009). SWOT analysis of Virgin Atlantic: SWOT analysis of Virgin Atlantic is discussed as below. Strengths: The strengths of the organization plays significant role in Virgin Atlantic and it provides strong framework to organization. Some of the strengths of Virgin Atlantic are: (1) it provides excellent services to its customers. (2) It identifies the demands of customers and provides satisfaction to customers. (3) It is the well known brand in aviation industry. (4) It is one of the biggest British airlines which carry 5 million passengers in a year. Weaknesses: There are some weaknesses involve in Virgin Atlantic, they are such as: (1) the size of Virgin Atlantic is small compare to other airline industries. (2) There is a limitation in globally incidence; therefore weaknesses affect the operation of Virgin Atlantic. Opportunities: Some opportunities also involve in Virgin Atlantic, they are: (1) it is the major hub across the world. (2) It increases its destinations and routes worldwide. (3) It provides constructive and optimistic outlook to Virgin Atlantic. (4) It increases freight zone globally. Threats: The Company protects business from different kind of threats which influence the operation of the company. Some of the threats are such as: (1) the changing and increasing fuel cost affect the business of Virgin Atlantic. (2) The natural disaster and changing guidelines of aviation also affect the Virgin Atlantic airline. (3) The growing competition in European market also important fear for Virgin Atlantic (Beech, 2008). Brief argument Harrison model of culture Harrison model is a theoretical framework for the organization culture. Harrison model of culture developed by Harrison in 1972 that divides organization culture into four categories: role, task, power and person cultures. In role organization culture, appropriate job description and positions are very important rather than personal traits and attributes of individual taking these positions. In role culture employees take positions for doing work therefore role culture plays significant role in Harrison model (Batiz-Lazo, Kase, 2010). On the other hand, a task culture explains the types of organization culture where the aim is to bring accurate people for the work. Task culture can be proved highly effective in competitive Industries where product life cycle is short and decisions should be taken with an increased level of speed. Organization task culture focuses on team and teamwork and level of freedom and flexibility measured as traits of a task culture. Task culture seems to be dynamic because it contributes in increased level of productivity. In power culture top executives exercise power towards all organization processes therefore it provides high speed of decision making process and provides implementation for organizational changes. Topmanagement uses power to control and influence the behavior of people. Power culture is presented in all the organization whether they are small or large organization. Power culture follows the top to down communication approach (Peters, 2008). In person organization culture, associations are the small in sizes and people works for long time period therefore employees build good relationship with each other. In person individual person serves as a source of influence for group members. So it can be assumed that Harrison model plays important role in creating organization culture. Edger schein culture model Edger schein developed Edger schein model in 1980 to make culture more visible and effective within an organization. According to Edger schein there are direct and indirect mechanisms in organization therefore direct mechanisms influence the organizational culture it includes behavior, opinion, status and appointments but organizational culture is not influenced by indirect mechanisms. Indirect mechanisms include mission, vision, rituals and guidelines (Danziger, Rachman-Moore Valency, 2008). Artifacts and symbols: Artifacts refer to the exterior of the organization and they are observable elements such as logos, structure, processes and corporate clothing. Espoused values: Espoused values refer to the standards, values and rules and provide information that how does organization makes strategies and objectives (Linn, 2008). Assumptions: Assumptions are very hard to identify within the organization and assumptions depend on the organization culture. Problems in Edger Schein model: Problems of edger schein model are discussed as below. The model does not define and clear the differences between ostensible culture and implicit assumptions The organization attributes is indistinct and common in Edger schein model. The selected model is Harrison model of culture because it is very strong, dynamic and quickly reacts on demands and it provides a good theoretical framework to Virgin Atlantic. It focuses on power, roles, task and people of the organization. Task culture provides different kind of task to different level of employees and power culture exercise bytop management to monitor and control the activities of subordinates. Harrison model maintains coordination and cooperation among the employees and provides satisfaction to workers. So it is assumed that Harrison model plays major role in organization culture. Explanation of the chosen theoretical framework The chosen theoretical framework is Harrison model of culture in the field of organizational development. Harrison model of culture developed by Harrison in 1972 that divides organization culture into four categories: role, task, power and person cultures Role culture: This type of culture focuses on job descriptions and specializations and roles are provided by topmanagement to the employees therefore topmanagement plays different kind of roles in organization (Utoglu, 2015). Advantages and disadvantages of role culture are as follows: Advantages Disadvantages 1) It reduces conflicts, battles, turf and confusions within organization. 2) It provides clear and fair rules and guidelines to protect people from exploitation and disgusting use of power. 3) Structures and predictability provides protection and reduce stress. It is measured a virtue to exceed ones authority and responsibilities It avoids deviation from the norms. People treated as a machine rather than as human beings. Power culture: Top management exercise power towards all organization process and it focuses on high centralization and low formalization. Power culture influences organization from many ways (Nworji, 2013). Advantages and disadvantages of power culture are discussed as below. Advantages Disadvantages 1) Organization can move easily in the market and make internally changes. 2) It provides direction and reduces conflicts and confusion among employees. Employees are scared to give bad news to the boss. People cannot ask question to leaders if they are seen to be wrong. Achievement/ task culture: Harrison defines the achievement oriented culture, it is also known as task culture. Organization members focus on the goals, purpose and teamwork of the organization therefore the strategy of task culture is to bring accurate people for the work. Advantages and disadvantages of the task/ achievement, culture they are follows: Advantages Disadvantages 1) It reduces control on individuals and provides motivation to employees. 2) It provides high self esteem for organizational members In task culture people become more narrow minded and give up family and health for work. Members become more isolated. Support / person culture: Support culture is different form task culture and in support culture organization climate based on mutual trust between people and organization (Ross, 2012). Some of the advantages and disadvantages of person culture are as follows: Advantages Disadvantages 1) It provides caring and responsive services. 2) It maintains high trust between individual and organization. 3) It provides high level of assurance and decisions. It takes lot of time for changes and variation. People only focus on relationship and they avoid the work. People avoid difficult personal decisions and create frustration. In such way it can be said that Harrison model plays major role in organization culture. Analysis of practice: Culture differences are big issues in Virgin Atlantic therefore these differences affect the overall business of virgin Atlantic .Cultural differences such as behavior, customs, values, beliefs, attitudes and languages. Cultural differences arise due to employees because employees come from different countries and backgrounds so sometimes it becomes difficult to understand employees cultures. Many times relationship and coordination issues are faced by the virgin Atlantic employees. Managers do not provide support to their subordinates. Due to cultural difference managers and top management do not be able to clear the roles and responsibilities to employees. Sometimes managers use their power in negative way therefore it affects the level of motivation and working capacity of employees. Managers do not provide motivation and support to workers so workers feel scared to give bad news to the superior (Gamble, Bauer, Greenbaum, Jackman, 2008). Another issue is coordination and teamwork among pilots, engineers, accident investigators, local regulatory body and passengers trainers also affects the efficiency of employees therefore Harrison model developed by Harrison to solve these consequences and issues. Harrison model provides a strong framework to solve these consequences and it can be applied in Virgin Atlantic to solve these issues. In Harrison model organization culture is divided in four parts such as power, task, role and person culture. Harrison model plays significant role in organization culture of virgin Atlantic. In virgin Atlantic there are problems of coordination and cooperation so role culture of Harrison model solves these problems (Mayer, Ryley Gillingwater, 2012). It helps in reduces conflicts, battles and confusion among pilots, passengers trainers, accident investigators and management. In such way it provides clear and fair rules and guidelines to people which protects from exploitation and nasty use of power. Role culture explains the roles and positions of different level of employees in Virgin Atlantic for doing task. Task culture provides motivation and self esteem to virgin Atlantic employees so they will not feel scared to ask questions to their superiors therefore it helps in maintain good relationship between managers and employees. Person culture maintains high trust among different department of employees in Virgin Atlantic. So it can be assumed that Harrison model provides a well developed and strong framework to organization culture of Virgin Atlantic (Weil Rogers, 2011). In role culture top management plays significant role in Virgin Atlantic thus they monitor the activities of employees. They play different kind of roles in airline and maintain harmonization among pilots, passengers trainers, investigators and passengers. Task culture is also important in Harrison model of culture because it provides different kind of task to employees for rendering excellent services to passengers. Harrison model is important in Virgin Atlantic airline industry. In Virgin Atlantic, sometimes managers become egoistic and they do not provide support to employees therefore employees neglect and avoid the work so Harrison model reduces these types of consequences. Thus it can be said that Harrison model provides strong framework to organization culture with reducing stress, frustration and issue. It builds a good relationship with passengers and provides excellent customer complaints procedures for solving conflicts and disputes among employees. Employees of Virgin Atl antic check the behavior of customers and acts accordingly for providing satisfaction to customers. So Harrison model plays primary role in the organization (Ryan, 2008). Conclusion The report includes complex analysis of the Virgin Atlantic culture and framework of the organization, thus it explains the different kind of models which is used by the organization such as Harrison model and Edger Schein model of culture. The report explains the background and environment and business of Virgin Atlantic. It explains that what issues are raised in Virgin Atlantic airline industry due to culture differences and how the company overcome and solve these issues and disputes. In this report, company uses Harrison model of culture to solve cultural difference which arises between managers and employees (Pilarczyk Reinhardt, 2012). The report describes that how micro and macro environment affects the business of Virgin Atlantic. It defines that Virgin Atlantic is the British airline company and developed by Richard Branson. Now a days Virgin Atlantic is expanding its business in airline industry and providing different kind of innovative services to their passengers (Youn g, Schopmeyer Lirman, 2012).. It tells that how Virgin Atlantic provides effective customer services and complaints procedures to solve the problems. Harrison model of culture plays significant role in culture of Virgin Atlantic. Virgin Atlantic launched three air class cabins for providing services to their passengers. In this report, Harrison model of culture provides theoretical framework to Virgin Atlantic for solving conflicts and disputes (Aguenza, Al-Kassem Som, 2012). The object of this study is to analyses the process and procedures of Virgin Atlantic for expanding business and it tells that how the micro and macro environment affects its business. This report underlines the operation management of Virgin Atlantic for providing excellent services to its passengers. This report also tells about the strengths, weaknesses, opportunities and threats of Virgin Atlantic. Now it can be assumed that Virgin Atlantic plays major role in airline industries (Tuset, Trippel, De Monserrat, 2008).. Recommendations There are some recommendations to Virgin Atlantic for providing tremendous services to their customers (Lukenbill, 2012). They are discussed as below. Virgin Atlantic should observe the dynamic consumers activities and act accordingly: The customers level of expectations increasing day by day therefore it should focuses on the changes customers behavior and make strategies accordingly. In such way, it will increase the profit of the company. Company should be developed training and development programmes for employees: If the Virgin Atlantic wants to improve customer services then it should develop the training and development programmes for the employees. Although the services of Virgin Atlantic is good but still some recommendation is required for improving customer services. It should improve the food quality for passengers: Virgin Atlantic should improve the quality of food if the company expands its business. It should provide hygienic and good quality of food to passengers in plane. It should focus on the excellent complaints procedures for solving conflicts: Virgin Atlantic should focus on the excellent and effective complaint procedure for solving disputes and conflicts. Virgin Atlantic should maintain good communication with its customers: The employees of Virgin Atlantic should interact with its customers in good way and it should maintain communication and cooperation with its passengers. 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