Report on the Case Study of Virgin Trains. Organization Success
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Published: Mon, 5 Dec 2016
In the modern era, business activities have got shape of changes in different ways, if we talk in organization behavior, technology of the company, the customer satisfaction, the method of productions, the use of latest and modern equipments, the management of human resource, the intellectual resources, the activities of marketing, marketing management, products development and many other areas of the business which are consistently changing with company environment and customer need and wants. Most of he company now a days are going through change management. Change management is a process of changing the overall activities of the organizations if not all but with some extent those activities which the management feel that the company continuously facing problem by handling the work of the organization. So they decide to change the management or administration or those activities which are continuously disturbing the work environment of the company. The following may be the most important areas in which the business are taking interest to make a change. These are as under.
Culture of the company, Work enviromnet, Technology, Production techniques Administration of the company, Use of latest and modern means and sources for business, Change in management etc.
We can define the change management also by the help of following words.
The process of changing the activities of the organization as well as the implementation of the procedures and technologies to achieve the desire objective of the organization, simply words to change the environment of the business organization and to achieve a high profit form that changing, usually change management includes different aspects such as control change, adaptation change and effecting change. The final goal of the change management is the long term sustainability of the organization.
There may be some internal and external triggers which bring change in the organization activities.
Change Management Importance.
The process of change management is not an easy task because it requires the business skill, analytical skill, political skill, system skill, people skill, and Change management plays a vital role in the organization development because it gives stability to the organization by studying the internal and external changes. It also provides a solid base for the value and reputation. And also maximize the profit of the business concern. Change management also provides good culture and sound working system to the organization, it also creates top bottom approaches to facilitate and promote the need for a culture.
Where employees do perform their activities with effective and efficient manner? Which also provide basis for human resource manger to implement those strategies for training and development which boost up the current employees for the need of the organization? Now a days various companies are hiring the services of management consultant to learn how best manage the activities of the business concern, the consultant providing best techniques for implementing the change process and to achieve the organization objectives.
A) Critically examination of the case study of the virgin train.
Relationship vision and culture of the company:
As before all the trains’ network in the hand of Britain government, they appointed a separate body for the management and handling of the railway activities known as Britain rail. But since 1997 virgin train operating complete in private sector, the quality and management of the virgin train is now so better. The routes of train go through Manchester, Glasgow, and Birmingham and many others cites of the United Kingdom. The new chief executive of the virgin train has announced a new vision for a company which has with great extent support the company in different situation.
Vision and mission statement of the virgin train:
Vision: a statement is some time called a picture of the company in the future. Vision statement is the company aspiration, their frame work for all strategic planning of the company. The vision statement answers the question ‘where do we want to go’. For example the vision statement of the eye clinic in America is ‘our vision is to take care of your vision’. And the vision of the adamjee pharmaceuticals is’ the name you have learn to trust’.
Mission: mission statement is a brief description of a company fundamental purpose. Mission statement give answer the question ‘why do we exist’.
The vision of virgin train is very clear, it has very close relation to the all activities of the virgin trains, the basic and fundamental aim of the virgin train is to achieve the customer satisfaction and coordination among employees, for this reason they have divided the whole activities of the organization into group they have developed separate region for controlling the activities of the virgin train and each region is handed over to manager for best control. Each region of the company is seeking to maximize the quality of the service to customer and other objectives of the company. Tony Collins the chief executive the company has well established the vision of the company which has differentiated the company with others, the main theme of the vision of virgin train is to empower the employees to take responsibility and ownership of their performance. This vision has worked with great extent. And have played an important role in transforming the vision in culture of the company. Vision helps the organization to meet the objective and target with some core values.
The vision of the virgin train is ‘To become the most safe, consistent, reliable and profitable of the train operating franchises in a climate that respects different views and people need not be afraid to be open and honest’. If we see the vision of the virgin train it is clear form the above that it set out the concept of profitability, safety and responsibility and customer services and relation with them. Now we will see that how the vision and culture of the virgin train have some relation or not. Culture is the way of working style in the organization which is clearly study from the behavior of he employees, culture is the way of working activities, that how the manager behave with employees while they are doing their activities. And how manger treats the subordinates. Culture also depicts the procedures and system for activities and care abut the customer because customers are the ultimate king of the business. The virgin train vision and culture have strong relation ship because the vision of the virgin trains have provided a solid base for culture of the company, as we have studied in this case study of the virgin train that they have now divided the activities in different region and they have move from their traditional concept to new one is the customer is the priority. We can see the culture example how they have managed the culture from their vision, the provision of toys in waiting rooms to keep children’s happy. Virgin train also encouraging recycling in all offices. They have also encouraging employees to take part in communication and give suggestion and share ideas of important issues and challenges.
B) What influence organization culture in change management.
First of all we must shortly define that what is meant by culture, organizational culture is a system of shared meaning held by members that distinguishes the organization form other organizations. (Stephens). Culture is also consists of norm, values, attitudes, beliefs,
opinion and custom and traditions of the employees while doing work in the organization how they feeling and how they finding the place for their selves.
Factors influencing organization culture:
The following elements or factors can be sued to influence the organization culture.
a) Control system b) organization structures c) power structures d) the paradigm e) stories and myths f) symbols and g) rituals and routines
a) Control system: The system to monitor that what is going on in the organization.
b) Organization structures: The hierarchies of the organization, the way through which the work can be carried on, the lines of reporting etc
c) Power structures. What is power based. Who will be responsible for making decision, and how power can be widely spread.
d) The paradigm; the organization mission. Values, vision, what it about, and why it exists.
e) Stories and myths. Events must be building up, and what is important in organization and what is not,
f) Symbols. The logos and design of the organization but it also be extended.
g) Rituals and routines. Meeting of management, reports of the board and so one.
C) Contribution of the Organization Structure to the achievement of the Change process.
Organization structure may define as ‘organizational structure is a system of arrangement, the pattern or network of relation, between the various positions and their holders”. David Buchanan.)
All organization has some aims and objectives. To achieve those objectives all organization makes provision to regulate such activities, which contribute to the achievement of the goals. Such allocation of resources, supervision and coordination among the organization elements are developed to constitute the organization structure. What may be the structure of the organization if it is matrix or project, free form but with out proper structure of the organization activities no change process can be best implemented in the organization because organization structure makes it easy to understand the whole activities of the organization and which help in the change process. So it is very important for the management to develop such structure which regulates the activities of the organization and to achieve the targets.
Peter Drucker suggests some principles for designing organization structure these are;
direction of vision
understanding by individual of his own task and the task of whole
stability and adaptability
and perpetuation and self renewal
these principles serves to support the designing in the organization structure, if these are follows so with no doubt one can develop good and stable structure which may be supportive in the change management process, as we have seen from case study that how virgin trains have developed the regional structure according to the vision of the company.
Elements of the Organization Structures:
Five main elements of the organization structure are
Objectives of the organization
e) Structure of the company itself.
Organization can be viewed as a complex system, which consist the above variables. These variables mutually interrelated with each other and constitute the organizational structure and these variables are affected by environment such as social, political, economical and environmental.
Types of the Organizational Structure:
Line structure, Staff structure, Functional structures, Matrix structure and Project base.
Designing the Organizational Structure:
There are many type of organization and every organization has a different structure. Different people are placed in different position in different department of the organizations. Division of grouping and task into functions, departments, sections, and units constitutes the organizational structure. As virgin train adapted the structure for carrying the activities of the trains, they have divided the region and assign each region to a manager for handling the activities and every employees of that region are responsible to report to that specific manger.
Departmentalization refers to the process of grouping together employees who having common supervisor and resources. In simple word departmentalization is the division of the organization into different wings and every wing has common goal and responsible for any work done.
An organization may be departmentalizing on the following basis.
Function basis e.g. research, finance, and sale etc
Product basis e.g. a college on subject base
Customer base e. g bank, consumer loan, and business loan departments.
Time base e.g. one shift, two shift etc
Now it is prove form case study of the virgin trains that how organization structure achieved the change process in that specific area, all the activities of the virgin trains have designed in such a way to achieve the customer satisfaction and employees coordination
D). Strategies of the virgin trains:
As clear form the case study of the virgin train that the company has adopted two main core strategies
customer oriented strategy and
employees or worker oriented strategies
both strategies have developed the virgin trains, because in virgin trains giving priority to customers they are considering that customers are the kings of today market they are better decided about the failure and success of the business concern, and the company all activities are going round with customers so by adopting this customer priority strategy the virgin trains are now attempting to have different position to its rival or competitors, and the other one strategy which have adopted by virgin train is employees oriented because the virgin train is also considering that the workers are also the core point of the success of the business if worker are provided a good environment, health and safety condition, good reward system, well motivated so they can perform better and the company can achieve the goal easily.
Effective of the strategies:
By adopting these two core strategies the virgin trains now getting several advantages, they have achieved the customer satisfaction, and customer also have realized that the virgin trains is the only quality provider among the different other trains service provider in the Britain, because by adopting the strategy for customer the virgin trains have improved the quality of service by providing different services in different station of the Britain. They have also achieved the customer loyalty not only for short term but also for long term, which in term not maximizing the profitability of the virgin trains but also the reputation and goodwill of the company in the mind of the people. By adopting the strategies for employees they have also improved the work quality and have changed the behavior of the employees in work place which in result have brought good and effective working environment, which have great impact on the quality of services and working condition of the company. They have also reduced the sickness levels ,the lowering staff turnover rates, have improved customer satisfaction ratings and have reduced numbers of complaint letters form the side of customer and community and also have cost saving from the implementation of this vision of virgin trains.
The virgin trains can also improve their services by providing or adopting the following suggestion.
Fare should be reasonable to affords by general customer to travel
The reward system of the company should be based on employees’ need which will have positive result form the side of employees and will bring coordination.
Fast and time arrival to destination has also the key success of any trains system in the world.
Various facilities to customer in different station may also increase the reputation of the company.
To design comprehensive, structured program which may also improve the virgin trains’ performance.
A well reporting system may also be developed by the company to have best control of the activities of the company.
Introduction of modern technology and system
And improvement in system efficiency and productivity.
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