Impacts of Culture on Virgin Australian Airlines - Case Study Example

Name Lecturer Task Date Introduction Much has been done with regards to organizational culture and performance of an organizational. In fact, Hartnell, Ou & Kinicki (2011) have estimated the total number of articles on this area of study to be about 4600. Despite this, it is unfortunate that these debates are yet to give universal definition of this term. The increasing interest in the study of culture in organizational context depicted by many research studies has led to more conceptual troubles. Sanday (1979) highlights the level of confusion in defining the term culture that is reflected in various organizational culture literature and he went ahead to show this through a discussion of two conflicting theories of culture. Many scholarly works purporting to give a precise definition end up bringing a lot of confusion. In fact, since its emergence to academic disciplines, more than one hundred and fifty definitions of the term culture have emerged (Kroeber & Kluckhohn, 1952). Similar to defining culture, the link between culture and organizational performance still remains unresolved. According to some scholars, organizational culture is a crucial factor necessary for success of any organization. For example, Dwivedi (1995) argues in support of the fact that a good organizational culture leads to improved organizational performance. Similarly, Stahl & Grigsby (1997) highlighted the fact that organizational culture is an influential element that can determine whether an organization can succeed or fail. Gillis & IABC (2011) highlights the fact that organizations do fail basically because they adopt bad cultures which hinder innovativeness and change necessary for adaptation to clients’ needs. There are many others who argue in the same line. However, some of them have differed with this proposition citing that it lacks coherent and driving support (Hartnell, Ou & Kinicki, 2011). It is for this reason that it has been given more focus in terms of research. Definition of Culture Culture was initially used in anthropology to mean all fundamental values, rules of practice and beliefs that depict the real self-image of a certain community. It singles out a certain community from another. According to many scholars, culture offers a guideline to the employees on how to accomplish certain tasks in accordance with organizational values and principles. Every organization has its own unique culture. Even for organizations whose operations are within the same line or industry have different cultures (Gillis & IABC, 2011: 30). The term culture has been defined differently by many academicians. Schein (2010) has given a general definition and he defines culture as “a pattern of shared assumptions learned by a group as it solved its problems of external adaptation and internal integration, which has worked well enough to be considered valid and, therefore to be taught to new members as the correct way to perceive, think, and feel in relation to those problems” (p. 18). This definition is more general and some scholars have tried to define culture in organizational context. For example, Florentina & Georgiana have defined culture as “ both written and unwritten set of rules, concepts, ways of thinking that spiritually diverse an institution from another and that is reflected in every interaction with its external and internal environment” (Florentina & Georgiana, 2012: 371). In almost the same way, Stahl & Grigsby (1997) defined organizational culture as a set of values and meanings which members of an organization share. How Culture is expressed in Organizations There are certain elements through which many organizations express their cultures. As earlier mentioned, each organization has its own unique culture. Culture manifests itself in many ways and they are the basis of these variations. It is generally manifested through what people do, say and act. A description of a society can be given through the analysis of what they say (verbal), what they do (physical) and how they act when confronted by a given situation (behavioral). “The verbal, behavioral and physical “artifacts” used by certain group of individuals in the management of certain situations are the main expressions of that group’s culture” (Dyer, 1982: 4). It is crucial to note that most of these elements are observable. The different forms of verbal artifacts include; language, tales and mythoi. Rituals, ceremonies and behavioral practices are the common representations of behavioral artifacts. Physical artifacts are represented by the set of technologies used in the organization. Similarly, cultural values and assumptions are manifested in these artifacts. Besides this, there are many other scholars who have given their views on how culture is expressed in many setups. According to Daft (2009), dressing style, day to day actions, type of control systems, power structures used by an organization, symbols, stories and ceremonies shared by organizational members are the common visible elements of culture. Culture of any organization is expressed through these elements. Similarly, Florentina & Georgiana (2012) have given their set of elements of culture to include; symbols, rituals and ceremonies, rules guiding behavior, legislative acts and staff roles, stories and myths of the organization. They do agree with Daft’s idea that most of these elements of culture are intangible. Martin (1992: 3) has also given a set of manifestations of culture. They include all those elements in which members come into contact with within every organization. According to him, such elements include “dress norms, tales of what is going on in the organization, formal rules and procedures, informal behavior codes, rituals, pay systems, undertakings, jargon and jokes” (Martin, 1992: 3). Overview of Virgin Australia Airlines A case study of Virgin Australia Airlines provides a good example of how culture is manifested in any organization. The study is an undertaking to uncover some of the artifacts or elements that have been discussed by many scholars on how culture is expressed or manifested in many organizations. It therefore involves linking theoretical information to information from this empirical study. Having been established in the year 2000, this organization has seen a tremendous growth moving to the second position in the Australian airline industry ranking. Initially, this organization had only two aircrafts operating on only a single route. The organization has expanded its route network and aircraft number since then. For example, in the year 2001 the company launched fourteen new different routes to boost its domestic network. To date, the organization has had its achievements increasing every year. The secret behind its success is good organizational culture and a team of experienced workforce among other factors. The chief executive officer John Borghetti succeeded in steering the company to its heights owing to his past experience of more than thirty nine years in managing aviation sector (Virgin Australian Airways, 2013). To ensure effective service delivery, operations have been sub-divided into four departments that coordinate. They include; commercial strategy, sales, guest and ecommerce. All these four departments work together as a team to attain organization’s objectives. Good culture of this organization is expressed by many of the earlier listed elements of culture. Nature of Culture in Virgin Atlantic Airlines The physical, verbal and behavioral artifacts reflect and describe the Virgin Australia Airlines culture. By observing these artifacts, it is quite evident that Virgin Australia Airlines was able to succeed through the slogan of ‘teamwork for the best service delivery’. Its culture can be described as an organization comprising of hard working professionals united by the philosophy of team work with an objective of excellent service delivery to its clients and the neighboring community. This culture has been developed and nurtured through various cultural artifacts. The slogan itself has been posted in every office. Below this slogan is a picture of two staff members smartly dressed in Red Virgin Australian Airline’s uniform. This slogan in itself expresses this culture of this organization. This culture has also been nurtured through other cultural artifacts which form different ways of expressions. Periodic employee retreats are one of these organizational culture artifacts which express culture of Virgin Australian Airlines. Retreat are held on different occasions by different employees both existing and new ones. This is always conducted after every three months and it is fully financed by the organization. Through these retreats, they are able to learn more about each other through simple activities they engage in such as nature walks and mountain climbing. Besides this, there is always a yearly party arranged by the company and it takes place in the last month. In addition to this, each departmental office arrangement also expresses the culture of Virgin Australian Airlines. Tables are arranged such that all members are able to converse and it is a rule that they should always remain open for all members. This arrangement and openness allows members to share their ideas freely. A non bureaucratic work environment encourages commitment and worker participation (El Hag, 2009: 49). The interior design of every departmental office also expressed the culture of this organization. Each office is designed to have homelike feeling through the inclusion of an electric kettle for preparing coffee and a television set. The comfort provided by the furniture used for both the staff members and clients also brings in the homelike feeling. Outside the offices is a small rectangular open space with comfortable seats. Within each department, all members are required to contribute towards solving a certain problem. On many occasions, when a problem emerges all departmental members are consulted about it. The same happens between departments. Weekly reports giving an overview of what happened in each department are required to be submitted by each department on weekly basis. These reports are a way of communication between departments. Departmental members are supposed to contribute towards solving an issue affecting all departments at large. Also quite unique is the way members of this organization communicate. The way ideas and values are communicated through activities and language is comparatively distinguishable. The courtesy in language used between staffs and staff and clients is quite unique. They share one way of communication. The success of Virgin Australian Airlines in uniting its members and enhancing team work can be attributed to these cultural artifacts. Stories and tales are also a different way in which organizations communicate their cultures (Lundberg, 2008: 5). A common tale in this organization is about its founder Brett Godfrey who enabled it to succeed. He could see success where others could not. He received warnings that initiating a new low cost airline was impossible and could lead to organization’s failure. Despite these warnings, Brett went ahead and launched it and it was indeed very successful and at the same changing the lives of many. This story reflects the hard work, innovativeness and the willingness to gather for all people and it should be adopted by organizational members. Its commitment to gather for all persons is also reflected in the indigenous employment program which focuses on addressing the issue of under-represented groups of people in Australia (Virgin Australian Airways, 2013). The use of this tale inspired employees to work harder. This is reflected from the willingness by the employees to work beyond the required time. Stories of successful individuals are crucial for educating employees about the organization’s culture. DuBrin (2011: 290) argues that employees can learn culture by listening to stories which in one way or another carry organization’s culture. The joke of reference of one another as “Brett” also reflects how the employees have been inspired by this tale. Importantly, it is common for all departments within the organization. Employees in this organization should work according to the rules and regulations guiding their behavior. Being on the right dress code is one of the components of these regulations. Failure to adhere leads to punishment. Despite having a positive effect of uniqueness and uniformity, many of these employees do not perceive them as being useful. Employees are also encouraged to share their problems with other members. It is within the policy of this organization to help the employees whenever they are faced with problems such as death of a family member. All these elements of culture used help in encouraging team work and cooperation which results to high performance teams (G.E., 2012: 3). In addition to this, unity and team work has also been enhanced through equality and lack of status difference. All the employees are treated equally. This is supported by the fact that there are no private parking lots. All members have the freedom to park anywhere in the staff parking lot. Not even the top managers have private car parks. If one needs the best place, then it is upon him or her to arrive in time to get that place. Also, all employees are free to air their own views on issues regarding the organization. Generally, egalitarianism is reflected by the above cultural artifacts. The egalitarian environment helps in encouraging unity and cooperation (G.E., 2012: 3). At the same time, it encourages innovativeness within the organization. A non bureaucratic work environment encourages commitment and worker participation (El Hag, 2009: 42). Impacts of Culture on Virgin Australian Airlines Like it has been argued by Deter et al. (2000) that culture is key driver to organizational performance, Virgin Australian Airlines has greatly benefited from it. Cultural artifacts used have bolstered the feeling of being part of the organization. An interview on some of the employees clearly indicated this with most of them working with minimum supervision. Madu (2012) posits that a well established culture can become a strong leadership tool which can be used by a manager to communicate the values and beliefs to employees. Virgin Australian Airlines provides a good example of such an organization. During some seasons, flights increase significantly calling for majority of the employees to sacrifice their time beyond the required. In such situations, managers have had an easy time in requesting employees to work. Furthermore, they do not feel oppressed or overworked because of this feeling of belongingness. Employee turnover is also minimal because few of them feel comfortable working in this organization. This case study clearly indicates how culture can be used to improve employee relationships. Despite having positive outcomes, culture of Virgin Australian Airlines had some setbacks. One of the most evident set back of culture to this organization is rigidity to change. Occasionally, changes were necessary in some departments and it proved difficult for employees to change from the old way of doing things. According to Phillips & Gully (2011: 485), culture is an impediment to change and it can be compared to glue that holds everything together within the organization. As such, it is quite difficult to change. Additionally, it is quite difficult for people to understand the importance of some cultural artifacts. For example, differences erupted in some instances about the dressing code violations. It proved difficult for managers to make employees understand. Conclusion In conclusion, despite having negative effects, cultural expressions have positive effects which outweighed the negative ones. It was quite evident that Virgin Australia Airlines was able to inspire its employees through the use of artifacts of culture; story of Brett Godfrey who steered the company to success. Other elements of culture such as rules and regulations enabled the company to succeed by guiding the employees to act ethically. The culture of team work and cooperation can be reflected by many elements or artifacts used by an organization. It is important to note that culture is more than internal affairs of an organization but rather it can be experienced by those outside it (G.E, 2012). Similarly, Lundberg (2008) argues that managing an organization is dependent on the manager’s realization that it is a component of national culture and it does not exist in a vacuum. Choosing the right activities for expressing culture is therefore crucial. Culture is a way of inspiring employees to feel they are part of the organization. References Daft, R. L. (2009). Organization Theory and Design ed 10. 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