Strategic Human Resource Management & Virgin
I. EXECUTIVE SUMMARY
Virgin stands as an example of the benefits and success to be derived when top management realise that simply managing people is not sufficient, but investing in the human element that is responsible for all aspects of the operations, will reap tangible rewards.
Virgin approach recognised that human resource management should not just be approached from a series of procedures, polices and systems but should be balanced with a keen interest in the people of the organisation through which key objectives are met.
II. INTRODUCTION
In 1970 Richard Branson initiated the Virgin firm as a distributor of records. Today, after establishing itself in the airline, cellular phone and financial industries (just to name a few) Virgin continues to successfully explore and invest in diverse and innovative businesses. Interestingly, for a company that is obviously marketing and business savvy, it’s Group Motto “Our people come first” , (IBS Research Center, 2009) speaks to the influence and impact of its strategic human resource management.
This report looks at the success of the Virgin Group of Companies through the eyes of strategic human resource management by firstly analysing the organisational culture that nurtures success and high performance. Richard Branson’s leadership and management have significantly contributed to Virgin’s culture and as such the correlation between both will be explored. Thirdly, the models and theories utilised to shape and manage such a dynamic workforce will be examined. Finally, recommendations on cost cutting measures from a human resources management point of view will follow.
III. THE VIRGIN CULTURE
The common theme at all Virgin companies is that the human resource capital is important and is the major component of its brand. As such, the Virgin culture revolves around communicating the core values, instilling the right attitude; maintaining acceptable behaviours and engaging staff. From all
Virgin stands as an example of the benefits and success to be derived when top management realise that simply managing people is not sufficient, but investing in the human element that is responsible for all aspects of the operations, will reap tangible rewards.
Virgin approach recognised that human resource management should not just be approached from a series of procedures, polices and systems but should be balanced with a keen interest in the people of the organisation through which key objectives are met.
II. INTRODUCTION
In 1970 Richard Branson initiated the Virgin firm as a distributor of records. Today, after establishing itself in the airline, cellular phone and financial industries (just to name a few) Virgin continues to successfully explore and invest in diverse and innovative businesses. Interestingly, for a company that is obviously marketing and business savvy, it’s Group Motto “Our people come first” , (IBS Research Center, 2009) speaks to the influence and impact of its strategic human resource management.
This report looks at the success of the Virgin Group of Companies through the eyes of strategic human resource management by firstly analysing the organisational culture that nurtures success and high performance. Richard Branson’s leadership and management have significantly contributed to Virgin’s culture and as such the correlation between both will be explored. Thirdly, the models and theories utilised to shape and manage such a dynamic workforce will be examined. Finally, recommendations on cost cutting measures from a human resources management point of view will follow.
III. THE VIRGIN CULTURE
The common theme at all Virgin companies is that the human resource capital is important and is the major component of its brand. As such, the Virgin culture revolves around communicating the core values, instilling the right attitude; maintaining acceptable behaviours and engaging staff. From all
Bibliography: Anthony, W. P., Kacmar, K. M. and Perrewe, P. L., 2006. Human Resource Management: A Strategic Approach. Fifth Edition. Mason, OH: Thomson. Colyer, E., 2003. Promoting Brand Allegiance Within, Brand Channel, [online]. Available at: http://www.brandchannel.com/features_effect.asp?pf_id=171 [Accessed 19 January 2011]. Crush, P., 2010. Exclusive: Sir Richard Branson talks to HR magazine about leadership, HR Magazine, [online]. Available at: http://www.hrmagazine.co.uk/news/bulletin/weeklyupdatebulletin/article/1015650/?DCMP=EMC-Dailynewsalert [Accessed 19 January 2011]. Gourley, M., 2005. Organiational Culture, Human Synergistic International, [online]. Available at: http://www.human-synergistics.com.au/content/articles/papers/zb-campaign-michael-gourley-apr-04/organisational-culture.asp [Accessed 19 January 2011]. HR Leader, 2003. Breaking a new culture: a Virgin Blue story [online]. Available at: http://www.humanresourcesmagazine.com.au/articles/0b/0c01a00b.asp [Accessed 24 January 2011]. Hurtang, A., 2011. Plan to Grow in 2011 – Like Apple, Google, Virgin, Forbes [online]. Available at: http://blogs.forbes.com/adamhartung/2011/01/05/plan-to-grow-in-2011-like-apple-google-virgin/ [Accessed 22 January 2011]. Knowledge@Warton, 2005. The Importance of Being Richard Branson [online]. Available at: http://knowledge.wharton.upenn.edu/article.cfm?articleid=1109 [Accessed 21 January 2011]. Leopold, J., Harris, L. and Watson, T., 2005. The Strategic Managing of Human Resources. Harlow, England: FT Prentice Hall. Parsley, A., 2005. A road map for employee engagement, Management-Issues, [online]. Available at: http://www.management-issues.com/2006/5/25/opinion/a-road-map-for-employee-engagement.asp [Accessed 17 January 2011]. Parsley, A., 2005. Employee engagement: the what, why and how, Management-Issues, [online]. Available at: http://www.management-issues.com/2006/5/25/opinion/employee-engagement-the-what-why-and-how.asp[Accessed 20 January 2011]. Schuler, R. S. and Jackson, S. E. eds., 1999. Strategic Human Resource Management. Oxford: Blackwell Publishers. Stillman, J., 2010. 5 Life Lessons from Richard Branson, BNET [online]. Available at: http://www.bnet.com/blog/entry-level/5-life-lessons-from-richard-branson/3634?tag=mantle_skin;content [Accessed 17 January 2011].