Examine how the structure of an organisation influences the overall performance of the company.
The “advent of globalization” has significantly impacted the business world and it can be said that it has opened new gateways for the business organizations which were not available to them in the previous times (Selcer, Goodman and Decker 2012). Thus, it is seen that the various organizations take the help of various kinds of effective and innovative strategies for the process of their business operations (Selcer, Goodman and Decker 2012). Many scholars are of the opinion that the primary purpose of these strategies is “to bring about the overall growth as well as the development of their overall business process” (Selcer, Goodman and Decker 2012). Therefore, the various organizations try to take the help of various effective strategies like leadership and effective structure of the business organization to further enhance the prospects of their business (Cosh, Fu and Hughes 2012). The authors Cosh, Fu and Hughes (2012) are of the opinion that the strategies or policies should be in synchronization with the business environment and as per the requirements of the business. This report will discuss about the concept of organizational structure and effective leadership through the lens of the Australian organization Virgin Australia.
The organization “Virgin Australia” belongs to airlines industry of the nation of Australia. The airlines industry is not only one of the most popular industries of the world but also one of the most necessary ones (Botha, Kourie and Snyman 2014). The airline industry has improved has much improved the way the transportation system of the various nations of the world but also of the world in general (Botha, Kourie and Snyman 2014). Furthermore, the improvement of the transportation system has not only used for the purpose of tourism but also for the process of business as well (Botha, Kourie and Snyman 2014). Therefore, it is generally seen that the various organizations try to utilize the services provided this particular industry to “bring about the overall growth as well as the development of their business process” (Botha, Kourie and Snyman 2014).
The organization “Virgin Australia” founded in 2000 by Richard Branson and Brett Godfrey, the current CEO of the organization, is a subsidiary wing of the United Kingdom organization “Virgin Group” (Virgin Australia 2018). The organization was initially founded in 1999 and was called by the name of “Blue Virgin” (Virgin Australia 2018). The organization at this particular point of time had only two operating aircrafts which used to operate in a single route (Virgin Australia 2018). However, with the dissolution of the airline organization “Ansett Australia” in 2001 the organization all of a sudden became the 2nd largest airline organization of the nation (Virgin Australia 2018). The organization provides a wide range of airline facilities to the customers of the country of Australia (Virgin Australia 2018). The headquarters of the organization are located “Bowen Hills, Brisbane” has currently has around 101 fleet for the purpose of transporting people from one part of the nation to the other (Virgin Australia 2018). The organization though initially founded with the objective of providing better air transport facilities to the people of the nation of Australia is currently operating on a global basis and therefore provides the customers with the option of more than 52 different locations from the diverse parts of the world (Virgin Australia 2018). It is a reflection of these facts that within a very short time the organization has become the largest airline organization of the nation of Australia in terms of the number of fleets which it has currently.
The concept of organizational structure has gained a considerable amount of significance in the recent times (Cavusgil et al. 2014). The concept of organizational structure can be defined as the way the various “activities such as task allocation, coordination and supervision are directed toward the achievement of organizational aims” (Cavusgil et al. 2014). Many scholars are of the opinion that the organizational structure of a particular organization should be flexible as well as innovative (Aziz, Mahmood and Abdullah 2013). Therefore, it is seen that the various organizations of the present times try to foster an innovative environment at their workplace with the objective to “enhance not only the individual performance of the employees but also to enhance the overall performance of the organization itself” (Aziz, Mahmood and Abdullah 2013). Furthermore, the flexible nature of the organization is also important as it enables the organization to adapt themselves in a much better manner to the various kinds of changes which forms an important part of the business world in the present times (Lindgren and Abdullah 2013).
The organization “Virgin Australia” follows a divisional structure for the purpose of their organizational structure (Ahlemann et al. 2012). The primary focus of this particular kind of organizational structure is on the creation of divisions within the organization depending on the areas or the geographical locations in which the organization is operational (Ahlemann et al. 2012). Therefore, it is seen that the organization under discussion here takes the help of this particular structure to create divisions within the fold of the organization depending on the key areas they serve or the kind of services which they provide to the customers from the different parts of the nation (Botha, Kourie and Snyman 2014). It is a reflection of this particular fact that the organization has various regional centers at the different key locations of the nation of Australia (Botha, Kourie and Snyman 2014). Furthermore, the organization also follows an innovative structure for the purpose of its structuring (Botha, Kourie and Snyman 2014). The use of innovative for the structuring of its organization and the reallocation of the top performers to the important or the key business areas of the organization has contributed in a significant manner towards the growth of the organization in the recent times (Ahlemann et al. 2012).
The primary or the main leader of the organization is Richard Branson and many scholars are of the opinion that it is effective leadership style followed by Branson which has enabled the organization to gain such amount of success within a very short period of time (Selcer, Goodman and Decker 2012). The leadership style which Branson follows for the purpose of leading the various entities related to the organization is the democratic as well as the charismatic style of leadership (Selcer, Goodman and Decker 2012). It is significant to note that the democratic style of leadership Branson follows for the process of leading the various entities related to the organization not only gives equal amount of preference to all the entities of the organization but also provides a platform to the different individuals with a platform wherein they can voice their opinions as well as grievances (Selcer, Goodman and Decker 2012). However, the major reason for which Branson is famous for is the use of the concept of emotional intelligence for the process of leadership (Cosh, Fu and Hughes 2012). The concept of emotional intelligence can be defined as the “capability of individuals to recognize their own emotions and those of others, discern between different feelings and label them appropriately, use emotional information to guide thinking and behavior, and manage and/or adjust emotions to adapt to environments or achieve one’s goal” (Goleman 2017). Therefore, this particular concept is being used by Branson for the purpose of effective leadership. The other important leader related to the organization is Brett Godfrey. However, it is significant to note that the leadership style followed by Godfrey is the situational style of leadership (Cosh, Fu and Hughes 2012). The concept of situational style of leadership has gained prominence in the recent times and it is a reflection of this particular fact that the CEO of the organization Virgin Australia takes the help of this particular style of leadership style (Cosh, Fu and Hughes 2012). Therefore, in a way it can be said that the effective leadership styles followed by the two leaders of the organization has contributed in a significant manner towards the success attained by the organization in the recent times (Cosh, Fu and Hughes 2012).
One of the key strategy followed by the organization under discussion here not only within the nation of Australia but also for the process of its international business in the other nations of the world is the strategy of cost leadership (Botha, Kourie and Snyman 2014). The organization takes the help of this particular strategy to provide high quality services to the customers at very affordable prices (Botha, Kourie and Snyman 2014). It is significant to note that during the initial phase of their business the organization used to operate as “a low-cost carrier” and it was precisely for this very reason that the organization as well as the services provided by them by the name of “New World Carrier” (Aziz, Mahmood and Abdullah 2013). Another significant strategy which the organization uses for the purpose of their business operations not only in the nation of Australia but also in its overseas locations is the strategy of “product differentiation” (Aziz, Mahmood and Abdullah 2013). As already mentioned the organization provides airline facilities to the customers to 52 different locations and in addition to this the organization takes the help of various kinds of innovative strategy to provide better quality services to the customers in comparison to the ones provided by the other organizations of the nation (Aziz, Mahmood and Abdullah 2013). Furthermore, the association of the organization with the “Virgin Group” of the United Kingdom has helped to improve the prospects of the organization in a significant manner (Aziz, Mahmood and Abdullah 2013).
I would like to say here that the organizational structure of the organization is in synchronization with the needs of the business market. Furthermore, I would also like to add here that the association of the organization with the “Virgin Group” and the effective leadership of Branson and Godfrey have significantly enhanced the prospects of the organization in the recent times. I personally believe that the concept of leadership has become an important within the framework of the present day business world and the prospects of an organization depend on the kind of leadership which the organization follows for the purpose of leading their employees in an effective manner. Therefore, it can be said that the concepts of organizational structure as well as leadership plays a significant role within the framework of the modern day business world. In would like to make one recommendation to the organization however. I personally believe that in the present dynamic world of business one particular style of leadership does not suffices and therefore it becomes very important for the organizations to take the help of the situational style of leadership for the process of their business. Therefore, I would like to comment here that if the organization takes the help of this particular style of leadership then it can further enhance the prospects of their business.
Conclusion
To conclude, the transformation of the business world has made it imperative for the organizations of the present times to take the help of diverse kinds of strategies. The strategies of effective organizational structure as well as effective leadership are among the most important strategies which the various organizations use for the purpose of their business. The concept of organizational structure helps the organization to realign the overall structure of their organization as per the demands of the business of that particular organization. The concept of effective leadership, on the other hand, helps the organization to effectively lead the various entities related to the organization towards the “achievement of the overall goals as well as the objectives set out by the organization”. The recent success attained by the organization “Virgin Australia” when viewed in this particular context would make it apparent that the primary reasons for the success attained by the organization in the recent times is on the score of the effective leadership and organizational structure.
References
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Aziz, R.A., Mahmood, R. and Abdullah, M., 2013. The effects of leadership styles and entrepreneurial orientation on the business performance of SMEs in Malaysia. In The IBEA International Conference on Business, Economics and Accounting-Bangkok.
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Lindgren, P. and Abdullah, M.A., 2013. Conceptualizing strategic business model innovation leadership for business survival and business model innovation excellence. Journal of Multi Business Model Innovation and Technology, 1(2), pp.113-131.
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