One Of The Largest Museums In The World Management Essay
1. Executive Summary: This assignment is based on The Natural History Museum. It has been investigated and analysis the stake holder’s power and interest with NHM.It has been described about the key competences such as value chain analysis, organizational culture includes organizational structure, management style and practices in this assignment.NHM is facing motivation issues among the staffs in running its smooth business. A strategy has been suggested to overcome from the situation.
2. Introduction of Natural History Museum: Natural history museum is one of the largest museums in the world. It is successful to attract more than 4million visitors per year, situated very close to south Kensington tube station opened 7days a week from 10:00AM to 5:30PM.It has research centre also. It is a non-department public body and registered charity organization. The main subsidize comes from the department of culture, media and sports, donation, sponsorships and commercial activities. Besides that subsidizing are also supported by admission charges for special exhibitions, sponsorship, donations and other commercial activities such as retail and catering, scientific and exhibitions consultancy, pictures library and events. It has 70 million specimens with rare library books. Natural history museum is divided into 4 colored zones; green indicates life, evaluation, environment etc., red represents the changing planet, blue stands for the diversity of life, orange shows the wildlife garden.(tourist-information-UK,2011)
Current issues in NHM:
Poor motivation: Redundancy happening
Training: No proper training for the employees
3. The Business environment analysis of NHM:
3.1.The PESTEL analysis within NHM: From Appendix-1 it has seen that NHM is experiencing some external threat and opportunities from political, social, technological, environmental and legal issues. The NHM is losing the numbers of visitors due to political, technological and legal changes of UK government such as visa regulation, new technology invasion (I-PAD,I-phone etc) and immigration rules also in economic factor as unemployment, job cutting and education levels will be effected because of tuition fees increased from 2012.There is a change in climate is also creating problems for NHM to get the resources in proper time for scientific research.
Although Olympic and Paralympics visitors, European “Blue Card” visa for skilled immigrants etc will bring some opportunities for NHM.
3.2.Porter’s five forces analysis of NHM: From aapendix-2 has been identified that NHM losing their business because of more competitors in the UK and globally, threats of new technology i.e. I-pad, smart phones, video games and many more tourists attractions such as London eye, parks etc for young visitors. Competition is high is a big threat for the NHM too.
Employees: NHM has 1400 employees including 300 scientist and over 400 volunteers who works for NHM in various roles. Their responsibilities include:
Assist with any impartiality and multiplicity estimate introduces to ensure chances and non-discrimination.
Deal with others moderately with out unfairness.
Governments and parliament: As a non-department public body the museum is 80 -90% sponsored by the department of culture, media and sports.(nhm,2011)
Visitors: Around 4.8 million visitors last year pass through the doors- in the summer 2009 the museum welcomed its 25 million visitors since free admission was introduced in December 2001.In 2008-09 155,000 school children attended the Museum.(nhm,2011)
Funders:NHM received £71.15 m fund from both internal and external sources including £8.6m from DCMS,£19.9m from the heritage lottery fund and £10m from the welcome trust.(official documents,2011)
Media: Media is one of the most important factors for any organizations for advertisement or publicity in the global market.NHM press office reveals the questions of the journalists from all over the globe related to Museum’s collections, exhibitions and science which promotes the tourists from the global market to visit the NHM.(nhm,2012)
Teachers: It has partnerships with science learning centre, London which provides a program of continuing professional development courses and activities for teachers. It aims to influence, converseand help the teachers and are improved by the Museum’s outstanding galleries, resources and excellent research works of Museum’s scientists.(nhm,2012)
Local community: It has developed a great free program to robust the local community group’s needs which includes fun, inspiring visits to the museum and educational activities using the incredible collections.(nhm,2012)
3.4.Stake holder analysis:
The main aim of this technique is to identify and assess the importance of key people, groups of people or institutions that may significantly influence the success of an activity or project/organization.
Low Level of Interest High
Government, shareholders, sponsors
Media, Banks & NGO’s
Competitors, Tour organizers, suppliers
Public, Local residents
Adapted from Johnson and Scholes (2000)
High in power and high in interest-This is the most important area of NHM as the stakeholders in this group influence NHM maximum and responsible for utmost funding of the organization and also highest levels of interest in maintaining the organization. So the shareholders, DCMS, sponsors and the government belong to this group. They are called as key players.
High in power and low in interest- The stakeholders are high in power but show very less interest in NHM in the matter to what is happening in it. Banks, Ngo’s and media fall in to this category and are also called as satisfied players.
Low in power and low in interest-This kind of stakeholders have very low power and interest in the organization. They are event organizers, local residents and the public who are also named as the minimal efforts.
High in interest and low in power-They are highly interested in the organization and low in power. This kind of stakeholders always be interested about NHM but cannot do anything directly They are the competitors, tour organizers and suppliers and are also named as keeping informed.
4.NHM key competences:
4.1.Value chain analysis:
Adapted from Porter, M.E., (2006)
Firm Infrastructure: Governance, Planning Budgeting, Fundraising (e.g. earned revenues, proposals, solicitations, events and donor relation.
Human Resources Management: Recruitment and Selection, Training and development, Career progression/promotion, Pay and reward, pension scheme, work life balance, communication, breach of policy, monitoring, role and responsibilities.
Technology Development: Program and content development (e.g. Postgraduate program, scholarship, design, market research,) online exhibition, online databases and online learning resource.
Procurement: Educational programs (e.g. Schools activities in the Darwin centre, teacher’s event, adult classes, community groups and special tour).
Inbound Logistics: Assembly and Preservation. The creativity of employees which has been used to sell their products,e.g. acquisition, Authentication and cataloguing)
Operations: The fundamental assumption is the overall task of the museum in a suitable way so that there would be smooth performance of the entire sector concurrently. Exhibition (e.g. display, support materials)
Outbound Logistics: Hospitality Services (e.g. shops, restaurants inside the NHM and maintenance), ice rink.
Marketing & Sales: E- marketing, promotion, advertising, catalogs etc.
After-sales service: Visitor/ constituency service (member outreach, special events)
5. An analysis of the organizational culture at work with NHM:
Values: NHM provides free of cost services such as education activities, entertainment etc as well as devoting equal employment opportunities.(nhm,gender equality,2011)
Beliefs: The entry fee for visitors is free but they need to purchase tickets for ice rink, Veolia environment wildlife photographer of the year 2012 exhibition, scott’s last expedition, crime scene live etc.Museum members are free to visit any exhibitions at any time free of cost and are allowed 10 guests pass for non members, family, friends per year.(nhmshop,2012)
Behaviors: Employee motivation such as career progression, maternity leave, training and development, flexible working hours, pay and reward, pension scheme, employee recruitment and selection, job evaluation, friendly policies, employee involvement,innovation,planning,appraising etc are considered as the behaviors of NHM.
6. Organizational structure, management styles and practices:
6.1. Organisational structure:
AUDIT & ASSURANCE
Business & commercial
Including Security, Housekeeping
LIBRARY & INFORMATION SERVICE
Interpretation & Design
Including Health & Safety, organisational Development
Including NHM at Tiring
Planning Design Consultancy
Special Projects & Innovation
Adapted from NHM Organogram, 2010
Key findings: The museum developed the executive board on 1st April,2010 replaced the Directors group. They operate under the leadership of the director of the Museum, who is chosen by the trustees and the accounting officer, is responsible to parliament.(NHM annual reports and accounts 2010-2012)
It includes the board of trustees at the upmost level.
The Museum is governed by a Board of 12 Trustees who are appointed by the Prime Minister (8), the Secretary of State for Culture, Olympics, Media and Sport on recommendation by the Royal Society (1) or co-opted by the Board of Trustees themselves (3). Those appointed by the Prime Minister or co-opted are appointed by open competition.
During the year the following served as Trustees: Oliver Stocken (Chairman)
Daniel Alexander QC
Professor Sir Roy Anderson FRS FMedSci
Professor David Drewry
Professor Dianne Edwards CBE FRS – retired 6 February 2011
Professor Alex Halliday FRS
Ian Henderson CBE FRICS
Dr Derek Langslow CBE
Professor Jacquie McGlade – retired 30 June 2011
Professor Georgina Mace CBE FRS
Sir David Omand GCB.
Dr. Michael Dixon is the director of the museum appointed by the trustees.
Senior management communicate with staff through regular Museum wide presentations, Museum notices and team briefings, through the Museum’s Health and Safety organisation and Whitley Council mechanisms as well as through informal meetings.
The Museum is a non-departmental public body and follows policy issued by the Cabinet Office on employment of disabled staff.
During the year the Museum employed 1,002 (average full time equivalents) of which 657 were on permanent contracts.
The average day’s sickness per year for permanent and fixed term contract staff was 6.66 days per full time equivalent.
In May 2011 the Museum was re-awarded the Investors in People Standard.
6.2.Management styles and practices:
The NHM scientists and project workers works individually and hardly share their thoughts and knowledge until the process is completed. The museum follow up the standard of the Better Payment Practice code in assuring that the creditors are compensated with in the terms of contract. Their policy shows that they paid to the creditors within 30 days of invoice date unless different arrangement has been made.
7.Suggested strategies to minimize issues: As it has been discovered that NHM is already took the first step to enter into cost leadership strategy by not charging any entry fee to its visitors. So need to think something unique to bring long term result. So staff motivation strategy could be one better choice to serve to its visitors for long time and getting increase in numbers every year by giving them an extra ordinary experience of NHM.
Adopted from Stephens(2000)
Physical – Physical needs for any human beings are air, water, food and the most vital freedom. NHM is able to design a better working environment .Particular staff is allotted for a specific section, so that there should not be any confliction.
Security – The need for safety, shelter and stability. Proper health and safety training is missing in NHM .The NHM higher authority should introduce it as soon as possible. They need provide a safe working environment and job security.
Social – It include the need for being loved, belonging and inclusion.NHM should have a monthly meeting with the staff for the comments about the management, problems they are facing during the operations or some other issues they have.. It will help in inspiring the staff as they will start feeling as a integrated part of NHM. Doing this it ensures that the staff feels cared for, respected and esteemed. NHM should introduce participatory decision making policy where all the staffs has right to say and helps in making decision.
Ego – Most of the staffs are working on voluntary basis. Appreciation for doing good job could motivate the employees and they will start trying their best give best performance. The top level employees should also be given decision making power. Employees who all are working for long time should be well prized for their contribution done. They will feel appreciated and valued in the organization.
Self Actualization – NHM needs to initiate change within their organization to sustain and persuade creativity and innovation which will help the staff to remain occupied with the work that they do and also help them to value their job title/description. Cross training could bring some good results for long tern benefits. They might send their staffs to its partner organizations in all over the world to gain extra knowledge.
7.1.Limitations of the suggested strategy:
There is some certain limitation of the strategy which has been suggested to overcome from employees’ poor motivation issue. After implementing Maslow’s hierarchy of needs doesn’t assure the guaranteed result on the poor motivation. There are some employees who neglect lower needs in pursuit of higher ones. It has been seen that people are motivated to satisfy only one need level at a time except in situations where there is a conflict between needs. It is essential to note that not all employees are governed by same set of needs. Different individuals may be driven by different needs at same point of time. It is always the most powerful unsatisfied need that motivates an individual.
NHM is one of the largest and most famous museums in the world. It made a great brand reputation and image in the global market of museum. The company definitely has some opportunities and strengths which has been utilized by the organization and successfully reached the goal. But there are some potential weakness and threats slowing down their business. The NHM has its own working culture and created a healthy working environment but in few cases they are lacking such as not having proper training facility, recognisations, career opportunities for the employees are missing in the organization which is bringing poor motivation among the staffs.NHM should focus on motivating the staffs by making feel them integrated part of the organization. They are the share holders of the organization. The involvement of the employees will reduce the demotivation level slowly.NHM has government funding problem because of the recession. Although because of high completion in the market NHM keep motivate its staffs to give excellent customer service to its visitors to keep the numbers of visitors high in a long run.
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