Organisation Management and Change Management in Virgin Trains Essay Example
Organisation Management and Change Management in Virgin Trains Essay Example

Organisation Management and Change Management in Virgin Trains Essay Example

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  • Pages: 7 (1878 words)
  • Published: September 28, 2017
  • Type: Case Study
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Background of Virgin Train

Virgin Train was previously part of the public sector and operated under a bureaucratic management structure. The train system in Britain was controlled by British Railways, with top management's orders being unquestioned. However, Virgin Train has completely transformed the railway system, allowing for travel from London to Manchester in just a few hours, something that wasn't possible before. Currently, there is no centralized reporting of British Rail's regional performance. Each region has its own development and upgrade plans to gain a competitive advantage. The main goal of British Rail is to maximize profit and reduce costs for each regional office.

Relationship between Virgin Train's vision and company culture

The company's vision refers to its long-term strategy, not defining exact goals for the near future but representing a mission to be acc

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omplished eventually. This vision is held by top management, who act as stewards of the company. It enables Virgin Train to create a strategic plan with small goals and strategies to achieve them. The vision serves as a constant reminder of the company's direction and motivates action-taking within the organization.The mission statement is a part of the company's vision, which includes a clear description of the organization's direction and expected behaviors. The vision encompasses desired outcomes and approach to meeting needs. Culture is determined by how things are done within an organization. Top management shapes culture by setting behavioral standards as role models. Virgin Trains' case study describes their culture as "Collaborate (Clan)" where all employees have a say in decision-making and work together as a team. Staff development and training prioritize mutual benefit. The CEO plans to break down

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the company vision into achievable goals aligned with organizational vision, focusing on performance direction. Employees are instructed to embody company values, take responsibility for actions, assess effectiveness in achieving goals, and make improvements. In practice, vision is broader than mission.Virgin Trains' vision encompasses three core elements: ensuring safe and reliable travel, maintaining a profitable business, and fostering an environment where employees are encouraged to share their opinions on the organization's progress and have their viewpoints considered in decision-making processes [Hofstede, Geert (1977)] (B). Change management, which involves planning, execution, and control, plays a significant role in Virgin Trains. All individuals affected by organizational changes must be consulted as they play a crucial part in implementing the change. Lack of involvement from major stakeholders can result in resistance. Implementing a change requires substantial time and financial investment. Therefore, it is essential for the change to be measurable, achievable, and dependable. Altering infrastructure usually demands less time and effort compared to shifting people's mindset. To ensure acceptance of the change, it is important for individuals to understand its purpose, benefits, implementation process, and long-term sustainability. Holding one-on-one meetings with key staff members who are integral to the change process allows for equal participation and facilitates smoother implementation of the change.It is noteworthy that people have different levels of acceptance towards change. Some individuals can adapt to new ways of doing things over time and with understanding, while others may find the change completely incompatible. Typically, lower-level staff members learn about changes indirectly through memos and booklets. However, some individuals in higher positions feel responsible for leading the administration. They believe that workshops and preparation sessions should be

provided to help them comprehend the larger perspective behind proposed changes. If opposition to change persists, terminating the employee may be considered as a last resort by the administration. Anything that does not align with an organization's goals is seen as a liability rather than an asset.

Overall, change management is a process involving individuals or an entire administration transitioning from their current position to a desired future position. This encompasses various aspects such as mission, strategy, technology, operations, and employee behavior and attitude. Virgin trains exemplify optimism and forward-thinking by making future plans based on past experiences.In the business world, an organization's vision and culture are closely connected. The behavior of administration directors greatly impacts the subsidiary and employee engagement approach. Virgin trains highly values its employees and recognizes customer service as a critical success factor. A clear vision is necessary to adapt to the ever-changing environment and meet customer demands efficiently. Virgin train directors understand that listening to customer feedback and addressing gaps in management structure is vital for achieving organizational success.

Lower level staff, including technical support and logistics, directly interact with customers and play a crucial role in implementing change. Virgin train empowers its staff by delegating authority, believing they possess the necessary technical and commercial skills to drive change. Directors encourage active participation from employees through questioning, sharing new ideas, engaging in constructive disagreement, and suggesting better options for running the company and effecting change.

The employees at Virgin Train have advocated for promoting recycling in offices and trains, which has been acknowledged by the company. Various schemes have been put into place to support and implement this change.The primary objective of Virgin

Train is to maintain profitability by providing customers with a high-quality and cost-effective service. The company understands the importance of catering to the needs of their customers, particularly those who prioritize cost or value service quality. These customers form a niche market and expect exceptional customer service, justifying the premium they pay. To achieve this goal, Virgin Train aims to develop their frontline employees into independent leaders through on-the-job training and development opportunities.

Under the new strategy, frontline employees are expected to prioritize customer satisfaction by responding to their needs and suggesting new methods of operation. Directors play a crucial role in boosting employee morale and confidence, motivating them with incentives, and striving for excellence. They actively seek employee feedback and ideas for improvement. The organizational structure of Virgin Trains plays an important role in managing change effectively (Joanne Martin, 2001).The company has a flexible, empowering, and participatory organizational structure that allows for delegation of authority and involvement in decision-making. While the management hierarchy is extensive, it is not rigid, as lower-level employees may occasionally handle higher-level tasks based on their roles and responsibilities. Regular meetings are conducted between employees and management to discuss current and future strategies. These meetings involve reviewing business priorities, addressing important matters requiring management attention, and implementing new best practices into the business model. Each department contributes valuable insights during these meetings, which enables management to make informed decisions based on past data for the future, giving Virgin Group a competitive advantage. Virgin recognizes the importance of developing individualized responses to meet the needs of each department since they may have people with different cultures and values. These business strategies benefit

both customers and the organization as a whole by improving overall performance through effective resource allocation. Feedback from customers and managers from different departments within Virgin Train's operations is highly appreciated as it helps identify areas for improvement and highlights current services that receive high ratings.Customer feedback on menu options and ticket pricing is crucial in determining customer preferences and influencing decisions on new flight destinations and frequencies. This information is collected and brought to the table with top management and lower staff to determine which ideas will go through the decision-making process and how they can be implemented. This activity motivates employees who initially provided the ideas and encourages them to work efficiently and engage in discussions with management.

Furthermore, Virgin's management not only welcomes change and feedback but also promotes constructive criticism by respectfully challenging others' ideas. Employees participate in three-day workshops where they learn how to give and receive constructive feedback, understand Virgin Trains' vision, and see how the current leadership style impacts them in the workplace. These workshops also create an environment for employees to share their opinions and ideas about the company.

Through interactions among employees at different levels of hierarchy, a social environment is created that promotes sharing while eliminating personal differences. This fosters understanding among employees regarding why changes are made, how they will be affected, and provides an opportunity for expressing individual concerns.The HR Department at Virgin Trains actively engages in employee development and training, positioning themselves as catalysts for change with a focus on people. They acknowledge and reward high-performing employees at different levels to show appreciation for their achievements. Award ceremonies are held to recognize exceptional individuals

and teams.

Virgin Trains also upholds its Corporate Social Responsibility by exhibiting respectful behavior towards the environment and employees' well-being, prioritizing them over personal profits. This approach garners respect from both customers and staff, fostering customer loyalty. Furthermore, Virgin Trains demonstrates philanthropic efforts by donating to CLIC Sargent, an organization dedicated to raising funds for children with cancer.

These actions align with Virgin Trains' organizational approach as described in Cameron, Kim S., & Quinn, Robert E.'s (1999) work. The company has implemented various strategies to effectively manage change such as selecting candidates during the recruitment process who share the same vision and behaviors encouraged at Virgin Trains. A popular assessment method known as 360-degree assessment is utilized, involving input from the client, employee, and manager. This process evaluates an employee's performance while discussing their contributions and goals.Virgin Trains has created the 'Talent Wheel' tool to evaluate an individual's potential for promotion. This article emphasizes the significance of behavior, motivation, passion, cognition, and accomplishments in determining an employee's suitability for a higher position. The organization provides various learning opportunities for employees at different levels through internal and external courses that address specific training needs. These courses primarily focus on coaching skills, active participation in discussions, and taking responsibility. Virgin Trains also offers leadership programs to frontline staff and managers to enhance their ability to handle challenges. The cultural change management program is an ongoing process at Virgin Trains that requires regular reviews to ensure a seamless transition aligned with organizational objectives. This cultural change aims not only to improve employee management but also maximize profits and streamline business operations. Key Performance Indicators (KPIs) are utilized as effective tools

for measuring organizational performance. Virgin Trains concentrates on KPIs such as sickness days, staff turnover rates, customer satisfaction, and complaints to assess its performance and make necessary improvements. The strategy and vision of Virgin Trains have resulted in cost savings over recent years.
Virgin Trains emphasizes collaborative decision-making between management and frontline employees, encouraging them to challenge decisions and propose improvements. An example of this approach can be seen in the Manchester division, where frontline staff resolved a customer issue by creating a new ticket that could be used for both legs of the journey. The company is dedicated to delivering high-quality service and ensuring a comfortable travel experience for its customers. This focus on clients and employees has supported Virgin Train's performance, setting them apart from competitors. Employee involvement in decision-making and their ability to provide customer-centric solutions contribute to the company's success. Management actively encourages employees to challenge existing practices and continuously search for more effective methods. Ultimately, it is Virgin Trains' care for their employees, emphasis on customer satisfaction, and strong leadership skills that have propelled them towards success.

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