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As per instructions I have deeply analyzed the role of management and how management affects the operations of any organization at all levels and why it is important to consider the needs of employees rather than company in some cases change management and innovation is the key to progress instead of having sound control and procedures adopted by the management.

1.1 Management

Management in general is a broad term but here in the scenario this has been used specially for businesses and different companies at present and sometimes management and leadership are seen as synonymous. There is, however, a difference between the two and it does not follow that every leader is a manager.

I will discuss in short what different theorists define is the management but however in general.


1.2 Management

In general however management is the process of getting things done through the efforts of other people. It focuses on procedures and results. Managers tend to react to specific situations and be more concerned with solving short-term problems. Management suggests more formality and the term 'manager' refers to a position within a structured organization and with prescribed roles.

1.3 Leadership

It is influencing others to do what he or she wants them to do; it involves human interaction and is often associated with the willing and enthusiastic behavior of the others. The ability to influence needs the permission of those to be influenced

There is also a contrasting difference between all the theorist about management role and the style of management as Taylor says that management role is to secure the maximum prosperity for both employer and employee; Fayol suggested 14 principles of effective management and weber said management is more about formalization and standardization so on and so far.

1.4 Organization behavior

Expressed by handy "the way we do things around here" and if I will use the mnemonic vane that is values, attitudes, norms and the expectations of the people in a company from each other.


important factors

Although there are so many factors that contribute towards the success of any organization but I am going to discuss few factors that I think are the most critical if the organization wants to run efficiently, smoothly while achieving their strategic goals.

2.1 Leadership and Management

As I mentioned before it is the most critical factor that should be efficiently working to help firms throughout their whole life. As I mentioned before that Leadership is the process of influencing others to work willingly towards goals, to the best of their capabilities, or 'getting other people to do things willingly.


Organisational Behaviour


Why both Management and Leadership is essential

All Functional Managers


In the above figure Mintzberg clearly states that there is a direct link between Leadership and Middle management and the later part connects the whole organization specially operating core with the top management or leaders for the effective and smooth running of the organization.

2.3 Difference between Management and Leadership

According to John P.Kotter leadership role is to establish direction, vision ,aligning people, motivating and inspiring them to achieve goals whereas management role is to planning, organizing/staffing and controlling different management activities for the day to day running of the business. There are some overlapping areas between these two.

2.4 Case Study Virgan

Virgin is a leading branded venture capital organization and is one of the world's most recognized and respected brands. Conceived in 1970 by Sir Richard Branson, the Virgin Group has gone on to grow very successful businesses in sectors ranging from mobile telephony to transportation, travel, financial services, media, music and fitness.

Following are few features that how Richard Branson achieved his success by taking following steps.

'Transformational leader' by creating a clear vision

The business model used by Richard Branson is the Focus Strategy

Strong Brand image and innovational skills

Development of delegation skills

Giving motivation, due importance to his employees and treats them fairly

Interaction between employees and managers is fundamental

Job redesign

Branson believes that to develop a level of trust with his top managers, he must set the direction and then step back to let them navigate

Caring about people, liking people, and bringing about the best in them

Mergers, acquisitions and strategic alliances

More autonomy for all strategic business units

I strongly suggest these policies to all the leaders according to their situation and capabilities. However leadership and management may be considered two inseparable and intertwined aspects of organizational reality, with out one the effectiveness of the whole organization is jeopardized.

All these above points cover by and large the same areas mentioned by Mintzberg five building blocks.

3. Employees Motivation

If any organization can make sure that they would be able to address the needs of their employees in an appropriate way then overall the motivation of employees will be high and they would be able to work to their full potential for the betterment of the organization.

maslow hierarchy of need

2.1 Maslow' Hierarchy

In the Maslow's hierarchy he mentioned that the first desire of an employee in any company is the basic needs that is the first level where they are looking for good salary package, safe working conditions or in layman term at first they are after food, shelter and clothes. Then when each need is satisfied so that individual moves up the hierarchy, with successive levels of need dominating behavior. At second level employee is after job security other fringe benefits like medical, pension and holidays and then that individual wants to have good social relationship with colleagues and this need can be fulfilled by putting employees into teams or arranging different social events like annual parties, Christmas even Eid for Muslims, Diwali for Hindus just to make them feel that they are at home.

Then the forth need is Ego or recognition that is to be assigned good recognition this need can be fulfilled by giving responsibility, assigning project tasks or more involvement in the company decisions.

And according to the last need of self-actualization that a person also requires improvement till his death that could be challenging job with creative task demand, advancement opportunities and the achievement in the work. Money is not a motivator according to maslow

Although there is a general recognition of the worth of Maslow's work there is always likely to be criticism of any model that seeks to compartmentalize all of human behavior into any single framework.

2.2 Herzberg Theory

Herzberg also mentioned someway a theory closely related with maslow's that there are two types of factors that affects motivation in the following manner:


Produced satisfaction when present and were capable of motivating the individual

Hygiene factors

Do not give satisfaction or provide motivation when present. Their absence however causes dissatisfaction


Hygiene factors



Possibility of growth



Work itself

Personal life






Job security

Working Conditions

Comparing Maslow and Herzberg

One thing we can see that in maslow's hierarchy first 3 levels are almost Hygiene factors and Herzberg rightly mentioned that do not provide any motivation and motivators are present in the last two level of hierarchy.

2.3 Case Study Tesco

In 2008 Tesco faced real problem in motivating their young empoyees, Lorna Bryson, who oversees the company's apprenticeship and A-level schemes, admitted that workers aged between 17 and 24 were typically the least motivated.

Nearly 20,000 Tesco employees are between 17-24, compared with 250,000 employees generally. So here mainly the problem is the same mentioned by Maslow and Herzberg I have worked in 2008 for Tesco as well so the thing I noted there was that Manager assigns you some task when you start shift but then I start working throughout the day there was no recognition for my work and one more important point is that they recruit part-time staff only for few days so as I was totally disappointed after finishing the job because I did my work honestly with my full potential but even then they did not offer me job after that ever and also there was only a formal letter for thanks and that was also to fulfill the legal requirements.

2.4 Recommendation

Now the method would be the same as mentioned by Maslow and Herzberg that first the Tesco need to put the Hygiene factors to stop young employees (mostly students) becoming dissatisfied and then put motivators if they want to motivate them. This is a general rule of thumb not only for this situation but for every problem of motivation it should work.

Suggestions to improve motivation

Reduction in part-time workers

Helping students in their studies if we work with them

Giving permanent jobs after short contract if performed well

Feedback by manager after the end of the contract

Special discounts for employees on the shopping

Good working condition

These suggestions are only for this short term problem but we can apply these figures almost in all other retail stores like Sainsbuy, Walmart, Asda and all other superstores for any motivational issues. And mainly the motivational issues are related with day to day worker which are on the first level of Maslow's hierarchy on Basic/Physiological needs.

4. SMART Objectives and Control

Generally objectives should be smart using proper monitoring throughout the life of the company.


Clearly expressed in like 15% increase in sales


Quantifiable by objective means


Capability of achieving stated objectives


With overall goals of the organization

Time Bond

There should be a time limit

Control is concerned with regulating the activities within an organization so that the causes of deviations from specified standards are identified and corrected.

4.1 Balanced scorecard approach

The most important example for objectives that any firm can use would be Balanced Scorecard approach which is basically a very good criterion to check the effectiveness of any organization at all levels of a company.

This method also helps management to improve in the areas where there is problem. They cover four perspectives but their scope is very broad. Companies can set any financial or non-financial measure in the Balanced Scorecard which are necessary or critical for the success of the organization.


Employee Turnover

Employee Retention

Operating Cycle


Target for New customers

Market Share Target

Customer satisfaction


Profit Target

Return on Investment

Economic Value added

Innovation and Learning

New Products launched

Refresher courses for employees

Mergers/New acquisitions

I would say that with smart objectives a firm might face the following problems

Fixing targets can minimize chances of innovation

If targets are over-expressed then they can demotivate employees

Regular reports or checks can waste employees time

New ideas from employees are not welcomed

High employee turnover

Wastage of time in producing reports

Not suitable for customer oriented firms

4.2 Case Study Evidence

In 2004 about 57% of global companies were working with the balanced scorecard (according to Bain). Much of the information in the commercial sector is proprietary, because it relates to the strategies of specific companies. Public-sector (government) organizations are usually not concerned with proprietary information, but also they may not have a mandate (or much funding) to post their management .

AMEDD Finds Direction in Strategic Planning Award for Excellence 

The Institute honors Mecklenburg County, NC with an Award for Excellence for successfully transforming the county government and positioning it for tough times.

Scorecard Driving Strategy at Veolia Water North America 

With a new CEO and ambitious revenue goals, Veolia NA first successfully implemented a balanced scorecard and then integrated the scorecard deeper into its organization using an e-learning tool. 

Success Story: NMDP Turning Vision into Action 

The new strategic planning effort at the National Marrow Donor Program, dubbed Vision into Action, has driven creative thinking around how to improve efficiencies and cost effectiveness and get people thinking about how NMDP could more than double transplant volumes within five years!

The Northwest Fire District (AZ) needed to re-create its strategic plan and decided to use the Institute's framework to ensure the plan met the needs of its stakeholders

All these firms have successfully implemented this approach so then it can be applied to any firm depending on the nature of the organization.


The Main Issues Facing the Virgin Group

5.1 Value Adding

The Virgin Group, as a corporate parent does value to its business. It is achieved by the following points:

5.2 Understanding of Institutionalized Markets

Virgin's management team have done well in identifying complacency in the market. It is this expertise/experience coupled with the strategy to offer more for less that has help the Group plough through complacent business industries.

5.3 Virgin brand name to overcome barriers to entry

The Virgin brand name is a consumer's champion and as mentioned previously is a much respected brand with the British public.

5.4 Limiting Risk in joint Ventures

Any company, corporation or organisation in a joint venture with the Virgin Group has the benefit of limiting its risk in the market place. This reiterates the point made in the last paragraph.

5.5 Innovation Problem

A flat management structure helps encourage innovation; provides flexibility and promotes the values of shared ownership and responsibility.

5.6 Innovation

Virgin's senior staff consists of individuals with successful careers. The Group acquires like-minded partners in ventures who match their ability to innovate and differentiate.

5.7 Virgin Atlantic

The airline industry proved to be dangerous by 2001, as Virgin seemed to rely entirely on the profits of Virgin Atlantic. Deregulation increased the competition in the market place. All the competitors were facing losses.

5.8 Virgin Rail

The biggest problem faced by the Virgin Group was the Strategic Rail Authority's Review in 2000 because it was the most public. Virgin Rail was voted the most "unpopular" rail operator; and if that wasn't enough the statistics: Virgin ranked 23rd and 24th out of 25 operators, was ample reason for Sir Richard Branson to feel a stake go through his reputation.

Slowly but surely Virgin's prized brand name was being slowly chipped away by the press. The Virgin Group being such a large empire of 200 businesses was wonderful publicity when things were going right but all it took is for a hand full of businesses in the empire to either experience unavoidable consequences, which is the case of Virgin Atlantic and bad service and publicity as was the case with Virgin Rail for it to have quite disastrous effects on other areas of the group. Public confidence is such a delicate matter.

6. Recommendations

6.2 Become Less Diverse

Virgin should become less diverse. Its name has become diluted and its brand a purely endorsement brand. Lessons for the analysis of the environment must be learned. For example brand name alone isn't enough. The pubic are sensitive and are attuned corporate strategies given time. Virgin as a corporate parent can add workable value to its businesses by investing and developing real expertise. Trying to limit risk is a knife that is sharp on both sides. On the one side it inevitably "limits risk". On the other hand it sends out a contradictory signal to consumers. How can Virgin be "daring" when Sir Richard Branson's value adding process is to limit risk? That is a question we should work towards eradicating.

6.3 Change in Strategy

The Virgin Group should change its policy to accommodate both independent and joint ventures to rely upon short-term profits on a few of its businesses for the sake of raises capital and release the 'ring-fenced' policy so that important revenue making Virgin Atlantic can be bailed out during the low times. Monies can be returned to the short-term ventures when the busy season arrives. The idea is to not restrict yourself to a policy of philosophy. Philosophies and policies should be such that can strategically change with time and environment.

6.4 Accounting Year End

Every effort should be made to bring in line the accounting year end date for all businesses in the Virgin Group to be on the same date. This shall aid towards providing a better picture of the health and wealth of the empire.


The Internal and external pressures make change inevitable. ' Adapt or die ' is the motto of almost every organization. Some strive to meet the challenge by leading those in the market place whilst others hide in niches, snapping at the heels of the major players.

Key question for all the companies is not whether to change or not but rather:

What to change?

What to change to?


How to change successfully?

It is not only always management that would be able to solve all the problems but sometimes other internal, external factors also affects the performance of the management. One more important thing is that if organizations want to challenge these changes successfully they should immediately react.

There are two2 types of systems found in organizations open and closed

Open System

Closed Sysem

Takes input from the environment

No input from environment

Reacts to the changes

Do not react

Ready to change

Do not change

I would like to present briefly what are the factors that can make management operations inefficient or stop them from working if not dealt properly.

7.1 Pest/External factors, Internal triggers and Task factors

Internal triggers


New ownership


New Initiative/mgt style



Divisional restructuring

Rationalization/cost reduction






Location change


Rosters/flexible working


New procedures/systems

Changing information demands

Integration of roles

External triggers

Political/Legal issues

Changes in government

New environmental protection policies

New labor laws

European directives

Private/public partnerships

Economic issues

Growth or recession

Changes in currency and interest rates

Local labour costs

Regional prosperity/opportunities

Disposable income

Social factors

Attitudes to health/education

Fashion trends

Changing national/regional culture

Technological factors

Growth in Internet

Public use of IT

Global sourcing/call centres


A number of stakeholders have a direct influence on the organization and force change to occur. These are incorporated into Porter's Five Forces Model.

Buyer power

Single of few customers have a greater ability to apply pressure on the company.

Supplier power

Restricted supply by large and powerful companies reduces the ability to keep costs at a minimum.

Threats of substitutes

The existence of alternative products that might attract the buyer increases competition beyond that normally associated with the industry.

Barriers to entry

The existence or non-existence of such barriers has a major impact on competitive pressures and the need to change.

The degree of inter-firm rivalry

This relates to direct competition within a given industry

Now we can see that change is inevitable and there are so many cases where management failed to cope with change effectively be

This statement is not 100% true if we see from only one angle as Peters and Waterman's highly-regarded book In Search of Excellence claims that excellence requires companies to 'continuously innovate'. They identified 43 companies which they considered to be excellent. They did not mention that everything is management but found eight characteristics which were common to these companies. The eight attributes acting as drivers for excellence but not entirely management.

Productivity through people - training staff with dignity and respect and investing in their development

Action bias - focus should be on achievement rather than results

Simple form - Informal processes and flat structures

Stick to the knitting - Focus on the Core competencies outsource non-core activities

Close to the customer - Learning from and listening to customers

Autonomy and entrepreneurship - Innovation is key, delegating decision making

Simultaneous loose-tight properites - centralizing core activities and values and decentralizing the rest.

Hands-on value driven - Managers are driven by organizational values, and they care, and are seen to care. No them and us attitude

And another point is that the for some firms like MicroSoft,Apple and yahoo the core activity is the innovation and management is a secondary thing although it would help them in other operations but their focal point will always remain innovation and they will have to focus on Innovation and Learning rather than on Management.

Creativity And Innovation Case Studies

Can GM Turnaround? Is Innovation the answer?

GM was in the top 20 innovative companies in the world according to the BCG - Business Week 2008 survey.

The 2008 Innovator of the year: President-elect Barack Obama and his campaign team also succeeded as their slogan for change.

Apple iPhone Goes Global - iPhone 3G

The biggest surprise in the Apple announcement: iPhone 3G is available at half the price of the original iPhone at only $199 for the 8GB model in the U.S., and $299 for the 16GB model. And the new iPhone 3G packs twice the punch - it is twice as fast. Apple iPhone 3G will be rolled out in 70 countries globally.

Google innovates with Google Apps

Google Apps Team Edition can become a useful alternative to Microsoft Office for small businesses, students, schools, small teams, non-profits and as such individuals looking to create and share basic documents, spreadsheets and presentations. It does not carry the price tag of Microsoft Office, and provides basic collaboration leveraging Docs, Calendar and Talk.

Now another question is that if change is inevitable then what to do so there are different approaches to manage change.

Approaches to change

Lewin's 3-stage model of changing human behavior

1. Unfreezing

This involves selling the concept and importance of change in order to uproot existing values and attitudes

2. Move

Adopting new ideas, values, attitudes and behaviors to replace the old

3. Refreeze

Reinforcement of the new behavior in order to ensure it is maintained

Lewin's Force Field Analysis

Lewin graphically described the opposite forces impacting on the change process. Whilst driving forces push the objective forward, restraining forces attempt to hold it back. The role of the manager is to:

Objective of the change process

Restraining forces

Driving forces

Forces favoring the change Forces resisting the change

Dealing with resistance

And the idea is behind this concept is that try to weaken the restraining forces and strengthening the driving forces to effectively adopt to change.

Reasons for resistance could be so many but some general are:

Cultural or belief barriers

Group solidarity

Rejection of outsiders

Conforming to past norms

Style of management

New technologies

1. Kotter and Schlesinger identified six main methods of dealing with resistance:

Education and communication

Participation and involvement

Facilitation and support

Negotiation and agreement

Manipulation and cooptation

Explicit and implicit coercion.


With overall discussion what I can refer although there are some common points about management and organizational behavior found common in the all the organizations and like motivational issues, different management practices and control methods but theses things vary from one organization to other and management and organizational behavior is not the only thing that would be sufficient enough for the successful running of the organization. As we can see in the virgin Atlantic almost there is not a very formal hierarchy but a flat structure and informal style of management where all the managers are ready to work in their own way and everyone is free to practice their autonomy. I think the best approach is

First what is the current position of the firm

What problems are faced by the firm

What measures should be taken to remove these problems

Control activities to monitor the progress

Review what has been achieved go to step 1

Another way is to look for a middle way between formal management and formal organization behavior depending on the situation of the organsiation.

Changing nature of the world does not allow them to carry on practicing the same practices and everyday and any time they have to keep themselves ready to take actions for any change in business practices like vat changes, prices will go up new targets and policies, any new advancement in IT industry like virtual offices and working from home.

So the point is that it is evident from all the cases of virgin, tesco and Iphone that a single standard approach is not possible for any company but they have to adept to the situation and then prepare the plan according to their requirements.

I would suggest that management should be ready to face any new challenges by using permanent monitoring the situation by using any management tool like Balanced Scorecard or Value Chain Analysis or SWOT If they want to know their current position and if they are going out for a project then PEST analysis would be the choice or any model that can fulfill their desire plan of action.


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ANON., "The battered bride" The Economist 25 December, 1999

ANON., "Virgin to close its West End make-up store" Evening Standard 1 February, 2000

BFI UK Cinema admissions 1933-96

BRANSON. R., "Branson replies: Letter to The Economist" The Economist 28 February, 1998.D.6

BRASIER, M. "Virgin in £200 million MGM spectacular." Daily Telegraph 1 July 1995

RUCKINGHAM, L., "Branson raises the curtain on Virgin cinemas in £200 million deal with MGM" The Guardian 1 July, 1995

Press Releases 30/01/02,



1. introduction 2

1.1 Management 2

Definition: 2

1.2 Management 2

1.3 Leadership 2

1.4 Organization behavior 3

2. important factors 3

2.1 Leadership and Management 3


2.3 Difference between Management and Leadership 4

2.4 Case Study Virgan 4

3. Employees Motivation 5

2.1 Maslow' Hierarchy 6

2.2 Herzberg Theory 6

2.3 Case Study Tesco 7

2.4 Recommendation 7

4. SMART Objectives and Control 8

4.1 Balanced scorecard approach 8

4.2 Case Study Evidence 9


5.2 Understanding of Institutionalized Markets 11

5.4 Limiting Risk in joint Ventures 11

5.5 Innovation Problem 11

5.7 Virgin Atlantic 11

5.8 Virgin Rail 11

6. Recommendations 12

6.2 Become Less Diverse 12

6.3 Change in Strategy 12

6.4 Accounting Year End 12


7.1 Pest/External factors, Internal triggers and Task factors 13

conclusion 18