Comparison and contrast of Virgin Group and Samsung Electronics


The Virgin Group is one of the UK's largest private companies, with an annual turnover estimated at £3bn per annum by 2000. Virgin was founded in 1970 as a mail order record business and developed as a private company in music publishing and retailing. In 1986 the company was floated on the stock exchange with a turnover of £250 million. The Virgin group is not a single corporate entity. The Virgin companies comprise several

holding companies and over 200 operating companies, most of which are based within

Britain. The equity owned by Branson, both individually and through a series of family

trusts, is held by Virgin Group Investments Ltd.

Company 2


Founded in 1969 in Suwon, Gyeonggi-do, Korea.Smsung started as a small export business in Taegu,Korea.Samsung has grown to become one of the worlds leading electronic company in the world.Mr.GEE SUNG CHAIN is the CEO and PRESIDENT of Samsung.They specialised in Digital applications,media,memory and system intigration.This brand is world wide well recognised.

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Vision of this company is,

Inspire the world ,Create the future

Samsung has planned to reach $400 billion revenue and becoming one of the worlds top five brands by 2020.

There are so many type of strctures may use by a company.For example

Virgin medias strcture is flat strcture.

STRCTURE of Virgin Group Of CompaniesThis is the strcture of the Virgin group of companies.There are so many types of strctures are followed by the organisations.there are,

Line organisation structure

Functional Organisation structure

Line and staff organisation strcture


Organisational culture is not something that is written down or, necessarily, is easily

stated.It is an intangible mixture of rules, relationships, values, customs,

values and attitudes which, taken together, describe the distinctive "feel" of the


Reflects the underlying assumption about the way work is performed, what is acceptable and not acceptable, and what behaviour and actions are encouraged and discouraged.

Atkinson, 2000

A collection of traditions, values, beliefs, and attitudes that constitute a pervasive context for everything we do and think in an organization.

McLean and Marshall, 2001



C:\Documents and Settings\rossella\Desktop\handy culture.gif

Power culture

Control is the key element in a power culture. Power cultures are usually found within a small or medium size organisation.Decision making is centralised sround a one person in power culture.That person likes control the power.However this culture has its problems, lack of consultation can lead to staff feeling undervalued and de-motivated, which can also lead to high staff turnover.

Role culture

Today mostly role culture used by organisations. In a role culture, organisations are split into various functions and each individual within the function is assigned a particular role. The role culture has the benefit of specialisation.

Task culture

 A task culture normaly a approach to complete a particular task. A task culture clearly offer some benefits. Staff feel motivated because they are empowered to make decisions within their team.

Person culture

Person cultures are commonly found in charities or non profit organisations. kproktrThe focus of the organisation is the individual or a particular aim

The Culture of Virgin group of companies is corporate culture.

Corporate culture can be viewed as a self gaining system by McKinsey 7S's model which includes Staff, Skills, Style, Shared Values, Systems and Structure, all mobilised by an overall Strategy. Those who would evolve a culture that can pursue an effective strategy.

Structure of Samsung Electronics

Question 1: Analyse the relationship between an organisation's structure and culture and the effects on business performance

Virgin group of companies strcture is a flat strcture. And the culture is Corporate culture.Culture is normally derives from a structure. According to a structure a culture will be created by the organisation.

Samsung Electronics structure also flat structure. And the culture also same corporate structure.

A structure and the culture of a company should be a proper one because it effect on Business Performance.If structure its not a proper one staffs may not know what is there responsibility and the span of control etc. Virgins and Samsungs Strcture is very easy one.Its look like a good environment to staffs to work within the organisation.

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Culture of this organisations are same. especially is a cororate culture.

Question :2 Approaches to management and Leadership

Describe different leadership style and the effectiveness of these leadership approaches.


We can describe the leadership as following,

'Leading people to achieve their goals/visions'

'Having a vision that everyone work towards'

Motivating the staffs to do what you want them to do'

A leader should have a vision. In addition to that he/she should be effective ,a leader

must have power and the authority.

Leadership Styles

Autocratic Style

This is focus of power is within the manager and all interactions within the group move towards the manager.Decisions making and authority for establish policy to achieve goals ,tasks and control by rewarding or punishment.

Democratic style

This focus the power is more within the group.The leadership functions are shared with members of the group and the manager is more part of a team.

A Laissez-fair style

This is where manager observe that the member of the group are working well on their own.Manager makes a decision and pass the power to members and allow them freedom of action to do as they think best.

03. The Relationship Between Motivational Theories


Motivation can be define as "The process that account for an individual's intensity, direction, and persistence of effort toward attaining a goal.

Motivation is the set of processes that moves a person towards a goal.

Motivation is a decision-making process, through which the individual chooses the desired outcomes and sets in motion the behaviour appropriate to them.

Extrinsic Motivation

Tangible rewards such as salary,security,work environment and conditions of work.

Intrinsic Motivation

This is related to psychological rewards such as teh opportunity to use one's ability, a sense of challenge and achievement.

Theories of Motivation


This motivation focuses on the assumption that individuals are motivated by the desire to fulfil inner needs. Contents theories focus on the needs that motivate people.


Shows how and why people choose certain behaviours in order to meet their personal goals. This approach focus on external influences or behaviour that people choose to meet their needs.


Maslow's Hierarchy of Needs

In 1954, Maslow developed a model in which basic, low-level needs such as physiological requirements and safety must be satisfied before higher-level needs such as self-fulfilment are pursued. In this hierarchical model, when a need is mostly satisfied it no longer motivates and the next higher need takes its place. Maslow's hierarchical diagram

Physiological/physical needs

The basic needs arise from a person's instinct to stay alive and reproduce-for food,water and sleep etc.

Social needs

Social needs are the first of the secondary needs in maslow's hierarchy.

Esteem needs

Esteem needs can be such as,

Social recognition,job title,high status job,feed back of the job etc.


The person fortunate enough to satisfy the first four needs is still driven on by an urge to accomplish everything of which he or she is capable, to realise his or her potential.

Maslow describes it thus: "Man's desire for self-fulfilment, namely the tendency that

might be described as the desire to become more and more what one is, to become

everything that one is capable of becoming.

2.McClelland's Acquired Needs Theory

D C McClellands (1972) Developed needs theory along Slightly different lines.He argued there are three basic types of need

Need for affiliation

By this, he means human beings need meaningful relationship (very few people are true loners), and one of the places they will seek these relationship is in the work situation, so who you work with is very important.

Need for power

Some people are driven by a need to make a strong impression on people and events they want to shape things in their work lives.

Need to achieve

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To many people the sense of getting on, processing or being promoted is very


Need for Power

Need for Affiliation

Need to Achieve

McClelland's Analysis of Needs

3.Herzberg's Theory

Maslow and Alderfer attempted to describe motivation in terms of human needs. In the

context of management, their theories are only of value if the work factors involved in the

satisfaction of such needs can be identified. Frederick Herzberg developed his two-factor

theory of motivation by looking at various job factors and how they relate to needs.

Herzberg's Two- Factor theory




These are factors which, to the degree that they are absent, increase worker dissatisfaction with jobs. When present, they serve to prevent job dissatisfaction, but do not result in positive satisfaction and motivation. These factors are:

Type of supervision

Interpersonal relations


Working conditions

Company policies, rules, etc.


These factors which, when present to a marked degree, increase satisfaction from work and provide motivation towards superior effort and performance. These are:

Recognition (for work done)




The work itself

These factors reflect the higher level needs identified by Maslow, and their satisfaction

leads directly to contentment. However, when absent, these factors do not lead to

dissatisfaction. Note that they are all directly related to the job.

McGregor's X,Y Theory

Douglas McGregor developed a typology of two opposed views about employee behaviour, related to Maslow's categories of need, and considered their implications for management and motivation. It's known as X, Y theory.


Assumes that people dislike work and responsibility directed and/ or threatened with punishment to get them to work.


Assumes that physical and mental effort is natural. People can exercise self direction and self-control to achieve organisational objectives.


Samsung is a well known electronic company in the world. Motivating employees is an important skill for supervisors, managers, and business owners to have. When developing motivation plans, it is important to recognize the individual differences among employees and realize that not all motivation techniques will work for everyone.

Samsung successful in motivating their employees. They use some approaches to motivate employees. They reward the people who achieve their goals in accurately and guide their other employees to achieve their goals effectively. Decision making powers are given to some employees. Some people are motivated by promotions. Employees ideas are gathered and they concentrate by higher level officers. Important thing is higher level staffs always have a good relationship with lower level staffs. Some staffs are motivated by financially or non-financially. Financially means by increase the salary or bonuses etc.non financially means like promotions, holiday packages etc.

Question 4: Individual Differences at Work

Analyse the factors which influences individual behaviour


People are an organisation's most valuable and expensive and resource, but they are the most difficult element of an organisation to manage. In terms of the organisation, what we are interested in is the way in which people behave at work - that they perform effectively in pursuit of the organisation's goals. The starting point for this is an understanding of what makes people behave in the way they do. Then we may be able to direct their behaviour for the good of the organisation.

Individuals are almost infinitely different, they act differently in different circumstances and are, in many ways, entirely unpredictable. This means that, unlike machines, they are not interchangeable or able to be easily designed to do the jobs required of them. External environment and undergoing change places continuous pressure on individuals at work. Managers are required to be competent at selecting the individuals who will be valuable to the organization.

Basic elements of the Behaviour


The individual psychological structures and processes which shape a

person's actions and reactions with the environment.

Psychologists definition on 'Personality'

"those relatively stable and enduring aspects of an individual that distinguish

him/her from other people and at the same time form the basis for our predictions

concerning his/her behaviour" (Wright et al., 1970)

There are two types of approaches to view Personality. Nomothetic and Idiographic. Nomothetic means identify and measure the characteristics of personality.Idiographic Focusses on the uniqueness of the individual and treats them as a


The Big Five (OCEAN)

There are five aspects that are being used as the dimensions of human personality. Those five factors are:

Openness to experience

Conscientiousness / indirectness

Extraversion / introversion

Agreeableness / antagonism

Neuroticism / emotional stability


Perception is the psychological process by which stimuli or in-coming sensory data are selected and organised into patterns which are meaningful to the individual.Perception is a transformation process. Transformation process of Perception,


Attitudes are our general standpoint on things: the positions we have adopted in regard to particular issues, things and people, as we perceive them.

Katz argues about the attitude, depend on that attitude serve four function,,


attitudes provide a framework with which to classify and interpret new

information. It is a complex environment we live in and these attitudes help us make

sense of it, even if they are simplistic and stereotypical, e.g. all politicians are corrupt.


attitudes enable people to express what values (what should be or is

considered desirable) they hold. Most people have a need to express what they stand



attitudes are formed from behaviour or experience. If this was positive

and satisfying, it will lead to favourable attitudes and visa versa. It enables the

individual to adjust to the world. If your superior fails to fairly reward you, negative

attitudes develop. If a colleague is very positive about your contribution, favourable

attitudes form..


some attitudes are held in order to protect our ego from harsh reality.

Some individuals who feel they are not sufficiently recognised may develop favourable attitudes towards status symbols.

Question 5: Demonstrate an understanding of working with others, teamwork, groups and groups dynamics.

Describe the nature of groups and group behaviour within organisation.


Two or more individuals interacting and interdependent, who have come together to achieve particular objective. To achieve the objectives all the members should participate.


A belief in shared aims and objectives

A sense of commitment to the group

Acceptance of group values and norms

A feeling of mutual trust and dependency

Full participation by all members and decision making by consensus

A free flow of information and communications

The open expression of feelings and disagreements

The resolution of conflict by the members themselves

A lower level of staff turnover, absenteeism, accidents, errors and complaints

Low rate of labour turnover

Low accident rate

Low absenteeism

High output and productivity

Good quality of output

Individual targets are achieved

Few stoppages and interruptions to work


High rate of labour turnover

High accidental rate

High absenteeism

Low output and productivity

Poor quality of output

Individual targets are not achieved

Time is wasted owing to disruption of work flow

Time is lost owing to disagreements between superior and subordinates.

Tuckman's five successive stages,

Stage 1: FORMING

First moments of a newly formed group's life

Often marked by tension, guarded interchanges, and low levels of interaction

People monitor their behaviour and are tentative when expression opinions


Tension increases in the storming phase - over goals, procedures, authority etc.

Conflict often causes fight or flight responses

Conflict is a required element for creating team cohesion

Stage 3: NORMING

Group becomes more unified and organized

Mutual trust and support increases

Rules, roles, and goals are established

Communication increases


Productivity is usually not instantaneous, thus productivity must wait until the group matures

Many groups get sidetracked by the storming or norming phases

More mature groups spend less time socializing, less time in conflict and need less guidance than less mature teams


Either planned or spontaneous

Can be stressful for team members

If dissolution is unplanned, the final group sessions may be filled with animosity and apathy


In beginnings of this company there are not enough technology resources to use. They communicate with each and every body by arranging meetings or sending letters etc. Even functioning of group is also very difficult those day. in these days team functioning if Samsung is very innovative.

As a Electronic company they should update the IT system everyn days. Because now a days lots of electronics companies are becoming competetion to compete with them we should use new effective information technology. About Samsung About Virgin group of Companies Corporate culture