Virgin Atlantic - People Management and Organizational Development - Case Study Example

People management and organizational development: A case study of Virgin Atlantic By Student’s Name Code+ course name Instructor’s Name University Name City, State Date Table of Contents 15 1 People management and organizational development: A case study of Virgin Atlantic 1 People management and organizational development: A case study of Virgin Atlantic 3 1.0.Introduction 3 2.0. Literature Review 5 2.1. People Management 5 2.1.1. Recruitment and selection 5 2.1.2. Remuneration 7 2.1.3. Health and safety 7 2.1.4. Training and development 8 2.2. Organizational development 9 3.0. Findings and conclusion 11 4.0 Recommendations 13 Bibliography 14 People management and organizational development: A case study of Virgin Atlantic 1.0. Introduction Among the factors that are essential in the running of any organization include technology, financial resources and human resources [Mar071]. Managing the human resources provides an opportunity for organizations to manage another factor of production. Human resource management has recently been considered as a significant approach to enhancing productivity. According to SPARC (2005), the human resource has to be managed in several ways such as performance appraisal, education, and development. All these strategies are meant to make the employees of an organization fitter for the various roles and tasks within the organization. It has been argued that making an effort to manage people within an organization translates to managing the performance of the organization. An organization has the power to decide what people can do within a specified time [Nei13]. People can decide to work for the organization or decide to sabotage work. In addition, people are capable of acquiring new skills needed in the organization and at the same time capable of forgetting this important knowledge. When managing people, it is important to recognize the ability of people to make decision and organizations must have a technique of ensuring that the decisions made by people stand out to benefit the organization [SPA05]. Organizational development is also another important consideration that helps organizations gains stability [VGK09]. An organization can be defined as a situation where more than one individual comes together to pursue a common objective. When these individuals are brought together, they are required to cooperate in a systematized manner. A common sense of leadership recognized by all members of an organization is always a common characteristic of the most organization. Individuals are assigned roles and responsibilities which they are required to conduct on behalf of the organization. Organizational development has been described as a broad and multi-faceted field whose main goal is to achieve the desired outcome for the organization [Don13]. In the existence of organizations, a major assumption of growth or fall is considered as a probability. Most organizations would favor growth rather than fall, and in growth, the aspect of development is inevitable. Hen companies aim to achieve growth, various complexities and trends emerge that the organization has to establish means of handling. Naturally, the forces due to growth make organizations develop both in complexity and size. In some instances, managing people leads to organizational development which results in the natural growth of organizations [Cum09]. The aspect of organizational development has been studied by sociologists, economists, anthropologists and psychologists. Changes within organizations are bound to take place at any level including the managerial level, operational level, and the executive level. Virgin Atlantic is an international courier service provider that was started by Richard Branson in Britain. The airline is considered as the second largest in Britain operating 37 aircrafts. The company also employees over 9000 people and serve more than 4.5 million passengers per annum. People management and organizational development have been identified as one factor that can lead changes within Virgin Atlantic. Given the fact that people management and organizational development are critical, this paper focuses on the relevance of the two factors in the existence of the British-Based airline, Virgin Atlantic. 2.0. Literature Review This section looks at the various literature materials that shade light on the aspect of the people management and organizational development. 2.1. People Management According to SPARC (2005), management of people entails a lot of techniques and procedures. Before managing people, it is important to identify the type of people that have to be managed in an organization. Human resource manager have to recognize the fact that people can choose to be managed or choose not to be managed. Therefore, HR manager can only manage the team's people that allow being managed. Managing people require intelligence on the part of the manager especially deep understanding of sociology and psychology. 2.1.1. Recruitment and selection Recruitment and selection are the primary approach and technique that HR managers use to put together a team that can be managed [Mar071]. In recruitment and selection, the most qualified team members are identified, employed or contracted to help in meeting various organizational goals. Effective recruitment is required to ensure that an organization is in a better place to make stable decisions. The best recruitment approach enables organization identifies the various talents and qualities that are available in the job market. Recruitment process is very critical, and HR managers must use the best approach to tap the best talent in the job market. Organizations may consider recruitment under three main circumstances [Gov07]. Organizations consider recruitment during the commencement of the organization, which requires identification of personnel to run a company. Second, recruitment can be considered after individuals have been fired from an organization for the purpose of replacement. Third, recruitment can be considered in the situation where an organization develops new positions that require additional personnel. Two forms of recruitment exist, which are internal recruitment and external recruitment [Nei13]. Internal recruitment is the type of recruitment where candidates or applicants for a given vacancy are current employees of the organization. On the other hand, in external recruitment organizations consider filling vacant positions by individuals that are not current employees of the organization. Regardless of the type of recruitment that an organization chooses to adopt, it is critical to follow a systematic approach [SPA05]. Vacancies must be identified within an organization that will involve the provision of the job description as well as qualifications for the applicants. After vacancies have been identified, the HR team has to determine the type of approach to be used for the recruitment process. The primary approach that organizations can use to make the positions aware to the qualified individuals is through advertisement. Both internal and external advertisement is recommended especially when the required talent can be tapped from the current human resource. The best advertisement media must be used to ensure that the correct message gets to the right people within the preferable time [Pat11]. Recruitment procedures would require interviews, and this needs an efficient panel to conduct the interview. Applications should be received and short-listing done in accordance to the dates stated in the vacancy advertisement. The panel has to use all the available resources to select the best candidate for the advertised positions. Both successful and unsuccessful candidates have to be duly notified and relevant follow-up was done. 2.1.2. Remuneration According to Wellington (2011), human resource managers have to recognize the fact that employees work for an organization to earn a living. Loyalty and commitment of employees are the second consideration once the organizations take into accounts all the financial welfares of the employees. For this reason, remuneration is critical for all employees. On the other hand, organizations consider the aspect of remuneration as important since it amounts to costs. The best approach must be used to satisfy the employees while at the same time ensuring that the wage bill of the organization remains sustainable. A remuneration policy must provide the organization with the best way of determining employees’ compensation [Gov07]. Most remuneration policies recognize that the there is a market linkage in compensation and retention of the best employees. Remunerations are to be conducted in a manner that conforms to the existing market rates as well as individual skills. Remuneration has strong links to performance, and this relationship has to be respected when managing people. People commitment to an organization increases when their skills and experiences are acknowledged through correct remuneration. There are various aspects of payment that HR managers have to consider. Remunerations can be achieved in the form of wages, salaries, performance-based pay, benefits, capable leadership, work relationships, physical work enrolment, recognition, appreciation, job fulfillment, and flexibility. Remuneration also entails work-life management skill and career development. 2.1.3. Health and safety As organization takes rely on the services of the employees for success, it is required that the organizations pay attention to the health and safety of the employees [Gov07]. Employees are humanly capable of developing health complications or even encountering risks. The concept of health and risk of employees has been internationally recommended consideration for employers to adhere. Most state including the UK. Thompson (2013) insist that in managing the people, the organization must ensure that their health and safety is well considered and that the working environment promotes these two features. Organizations have to identify hazards and put in place the correct procedures to mitigate or eliminate the possible causes or predisposing factors. Organization must commit to providing employees with realistic information as far as their health and safety are concerned. 2.1.4. Training and development Training and development have been identified as one approach to managing people that increase their technical capacity [Nei13]. Organizations consider the options of training their employees to improve their understanding and performances. In addition, organizations also conduct training and development to pave the way for the overall development of an organization. In training and development programs for employees, organizations have established the training needs of various employees within the organization. In addition, the HR managers have to establish the training approaches as well as the sources of training [Gov07]. A training program should have an effective way of evaluating the impacts of the training on employees. Employees can be trained using both formal and informal approaches depending on the training needs and the content. Most formal training programs are costly compared to the informal training programs, but all contribute to the development of employees. Organizations should help its employees to avoid stagnation and advance career-wise since it improves competence and creativity. Employees can be encouraged to take part in on-job training where they develop skills while on duty. Employees can also be encouraged to take part in self-development. Networking is also an important strategy that employees can consider to improve. Seminars and conferences help employees establish networks, learn and develop at the same time. 2.2. Organizational development Organizational development can be regarded as a primary process through which changes are realized within organizations [Bor]. For organizational development to take place, intervention or series of interventions have to be considered. Various theories of change have been studied in the past to elaborate the concept of organizational change. The change process theories suggest that organizational development can be discussed in three main dimensions that include life cycle, dialectic, evolution and teleological. The teleological motor theory of change suggests that organizational change is a factor of intended social construction by the members of an organization. In this case, members of an organization come up with a decision to make a development within the organization. The strategic change theory suggests that change is a factor of the teleological changes, which are technically triggers from the goals of the oriented managers. The cognitive framing theories hold that the aspect of change and development is a factor of a reconceptualization of the organizational status and developing the cognition for a change [VGK09]. In this situation, the organization operates in a way that it naturally suggests for changes and development to take place. Members of the organization read these signs of change and move forward to initiate change. The change momentum theory suggests that the aspect of organizational change is a factor of the momentum of the organization. It is argued that inertia forces within the routine operations of an organization are capable of triggering organizational change and development. The innovation theories suggest that change results from the creativity of individuals after research on a various aspect of the organization. This kind of development is capable of resulting in new products and services. From the established theories, it is evident that organizational have many sources of change as well as development. According to McLean (2005), organizational change and development always take place in line with the organizational goals or objectives. Furthers studies have revealed that the aspect of organizational development is strongly linked to behavioral sciences [Don13]. The concept of organizational development must be considered as a continuous and long-range process. Collaboration is often a key consideration when undertaking organizational development. As far as characteristics of organizational development are concerned, interdisciplinarity is a factor, and the ultimate goal is to improve organizational performance. Organizational development can never be realized in the absence of commitment and support from top management. Organizational development often increases the complexities in the organizational structures or processes. Often, when change and development take place, it is possible to identify the change agent in the process, the team responsible for change and the line of management in control. According to Cummings and Worley (2009), the concept of organizational development has advanced. In the modern era, organizational development is greatly influenced by the forces of globalization as well as the changes in information technology. Organizations are forced to restructure and develop in such a way that they remain aligned with the forces of globalization and information technology. The modern era of assessing organizational development relies on the technological developments within the organization. Organizations often consider the option of development as a means of remaining relevant to the competitive environment. For instance, technology increases the productivity of employees, and most organizations would buy the option. Development may lead to new products and services that can help the organization gain or maintain a competitive advantage. Development helps organizations optimize the production from all its assets thus improving on quality. The primary values of organizational development include engagement, relationship, authenticity, inclusion, learning environment, respect, empowerment, flexibility and proactivity [Lis05]. 3.0. Findings and conclusion People management and organizational development have been identified as two main factors critical in Virgin Atlantic. Virgin Atlantic relies on the Human resource to perform various functions that include servicing customers. The airline needs individuals to work as crew in the air-crafts, engineers, customer care, and management among others. It has been established that the airline employs over 7000 people and all these people have to be managed [Vir16]. Virgin Atlantic manages its people from the entry point, and advertisement can be viewed on the company’s website. The company commits to helping its personnel grow in the industry through training and development. Management of people by the company also entails correct remunerations that are in line with the established labor laws in Britain. The approach to managing people as adopted by the airline corresponds with SPARC (2005) recommendation for managing people. Virgin Atlantic considers the welfare of its employees an approach that has also been discussed by Wellington (2011). The company management has tasked the HR department with the role of managing people which are in line with the argument presented by Thomas (2007). For the twenty-two years that the airline has been in operation, change and development have been inevitable [Vir16]. The airline has grown to become the second largest British airline due to organizational development. The presence of technology requires an expert capable of handling the machines in the organization. The company has moved to form a partnership with the aim of achieving sustainable development. For instance, Virgin Atlantic has formed partnership with Lanzatech with the aim of initiating a low-carbon fuel project. As established from the literature review, managing people is an important undertaking since people hold the future of the organization. It is people who will perform the various roles and tasks that that propel the organization towards its goals and mission. People are capable of making a substantial contribution to the success of an organization while at the same time can drag the organization. All this depends on the manner in which the organization ranks handle the people. It has been established that managing people entails providing the employees with the best environment to perform. Recruitment, remuneration, and appraisal are some of the primary ways for managing organizations. Business organizations may be run in a different way compared to business oriented organizations, and the differences must be established. Regardless of the types of organizations, the aspect of managing people is inevitable. Managing people in business oriented organizations involves recruitment, motivation, remuneration, training, and development. On the other hand, non-profit orient organizations require people to be managed through correct leadership strategies, training, and development. When organizations develop, they do so to achieve various goals such as growth and market relevance. It has been established that organizations may grow due to forces from internal sources or external forces. Internal forces come from the organizational internal strengths and weaknesses where strengths provide the muscles for development while weaknesses caution the organizations to consider developing. For instance, when an organization realizes that the internal technology limits it from attaining efficiency, technological development will be inevitable. Alternatively, an organization can develop basing on its internal strengths such as economies of scale and ability to acquire new technology. Internal organs of an organization can take part in research and development which can then be adopted for developmental purposes of the organization. External forces also play a significant role in determining the development of organizations. Economic, political and technological environment have the potential to trigger organizational development. Changes within the organizations often occur to make organizations flexible to the political, economic and technological environment. 4.0 Recommendations As far as management of people in Virgin Atlantic is concerned, it is recommended the HR department be headed by individuals who have the intelligence to engage all employees to the advantage of the organization and employees. Open communications should be encouraged while the aspect of time management should be constant. Organizational culture should be protected in the processes of managing people within an organization. In organizational development, organizations should establish an integrated system for tracking shifts in external forces from the political, economic, and technological environment. Bibliography Anderson, D. L., 2013. Organization Development: The Process of Leading Organizational Change. New York : SAGE Publications. Borman, W. C., lIgen, D. R., & Klimoski, R. J. (n.d.). Handbook of Psychology: Industrial and Organizational Psychology. New York: John Wiiley and Sons. Cummings, T. G., & Worley, C. G., 2009. Organization Development & Change. Retrieved November 9, 2016, from Cengage Learning: http://otgo.tehran.ir/Portals/0/pdf/organization%20development%20and%20change.pdf Government of South Australia., 2007. Managing People Managing Performance: Good Practice Guide. Retrieved November 9, 2016, from http://publicsector.sa.gov.au/wp-content/uploads/20070101-Good-practice-guide-Managing-people-managing-performance.pdf Haneberg, L., 2005. Organization Development Basics. New York: American Society for Training and Development. Kondalkar, V., 2009. Organizational Development. New Delhi: New Age International. McLean, G. N., 2005. Organization Development Principles, Processes, Performance. New York: Berrett-Koehler. SPARC., 2005. People Management. Retrieved November 9, 2016, from Sports and Recreation Newzealand: http://www.sportnz.org.nz/assets/uploads/attachments/managing-sport/strong-organisations/people-management-toolkit.pdf Thomas, M., 2007. Mastering People Management. London: Thorogood Publishing. Thompson, N., 2013. People Management. London: Palgrave Macmillan. Virgin Atlantic Airways Ltd., 2016. Virgin Atlantic Airways. Retrieved November 9, 2016, from Virgin Atlantic Airways Ltd: http://www.virgin-atlantic.com/gb/en/footer/media-centre/press-releases.html Wellington, P., 2011. Effective People Management: Improve Performance Delegate More Effectively Handle Poor Performance and Manage Conflict. London: Kogan Page Publishers. Read More