Analysis of Richard Branson Form of Leadership - Coursework Example

RICHARD BRANSON By + of Learning Table of Contents Executive Summary 3 Introduction 3 Richard Branson’s Business Philosophy 4 Organisational Theory 4 Organisational Structure 5 Postmodern Organisation 5 Richard Branson’s Leadership 6 Trait theory 6 Behavioural Theory 7 Situational theory 7 Comparison with other Business Leaders 8 Recommendations 9 Conclusion 9 References 10 Executive Summary Sir Richard Branson is amongst the most successful people in United Kingdom. Richard Branson is one of international entrepreneur, icon, adventurer and he is the founder of Virgin group. Virgin group is among the globally respected and recognised brands with more than four hundred companies. After dropping out of school at an age of sixteen, with the support of a close friend he started a student’s magazine and this marked the beginning point of his success. The aim of this report paper is to analyse Richard Branson form of leadership and his leadership skill using the available theories of leadership. It will also to give a report on the significant differences between Branson and other leaders. The evidences have shown that Richard Branson does his leadership task differently when compared to other leaders. Introduction Leadership principles of Branson may appear simple and straightforward – but there is a lot of beauty in them. Most successful leaders are realistic, practical and always make messages that are easy to follow and understand. This paper will attempt to analyse Richard Bransons leadership forms using major leadership theories. It will also find out why Branson appears more successful when compared with other leaders. Richard Branson is creative, fun-loving, adventurous, risk-taker, hard negotiator, workaholic, opportunist and a friendly leader (Dearlove, 2007). Richard Branson’s Business Philosophy Organisational Theory Classical and human relation approach of management differs in the ways of management in business. The classical approach is more concerned about getting tasks done. While the human relation approach is more concerned with the welfare of the workers, Classical approach tells the workers how to perform their duties in a way that gets the bigger proportion of the work done. Human relation took a direct opposite way of management. This method strives to provide a good working condition to the workforce and providing their needs. Theorist argued that when workers work in a comfortable environment they promote production and work ethics. What is needed to build an excellent organisation? According to many people, perseverance, hard work, vision, sound strategy, and undying passion result in such success. According to organisational theory, to build a successful venture many things are required. Things from disconnected and unrelated fields must be intersected and put together. Branson follows human relation approach in his management. To create a working culture in any organisation, he pointed out that it is mandatory to enhance a collective engagement, interaction and exchange of ideas amongst all the workers. According to Richard Bransons philosophy, all the people working in the organisation must have a mental impression that they possess and own the organisation. According to Green & Crorowther (2004), the human factor is one of the major ingredients that make success in any organisation. In a working environment, decisions based on the majoritys view should prevail. Organisational Structure Mechanistic organisational structure has clear, centralised, vertical, well- defined hierarchies of power, control, command, and authority. Predictability and efficiency are promoted through formalisation, specialisation, and standardisation. The word mechanistic is derived from the word machine. It suggests that organisations are like machines where each part must play its role to accomplish a particular task. The organic organisation suggests that an organisations structure should be flexible. Organisations should always be ready to change their structure to adapt to constantly changing environments. An organic structure is suitable for turbulent, unpredictable, and unstable environments. Richard Branson used an organic organisational structure. Organic organisational structure works best in a dynamic environment that has a lot of uncertainty. In any complex environment, information and rapid communication are necessary. Therefore, many departments with differentiated roles are important. In uncertain dynamic and complex environments, there is a need for a decentralised decision-making. Thus, Richard Branson distributed power to the lower rank empowering all people. Postmodern Organisation Richard Bransons organisation should be considered as a postmodern organisation because it has long-term plans. It has flexible production, and the profit goals are long term. His business has both local and international customers. The labour force is highly skilled, working as a team. There is good labour organisation and cooperation. In additionally, there is formalisation, fragmentation, specialisation and division of labour. In Richard Branson’s company, there is the delegation of authority, self - disciplined people, and equality among all persons. These facts make Branson’s company qualify for a postmodern organisation. Richard Branson’s Leadership Richard Branson demonstrated that a good leader must possess transformational and charismatic traits. Transformational leaders adapt quickly to any change (Woolfe, 2002). Branson shows clearly that it is a leader’s flexibility and adaptation to changes that brings about success in many organisations. Transformational leaders add more values at times of change and distress. Many organisations focus on constant change of production and growth. Thus, transformational leadership trait is suitable. An overview of trait theories suggests that leaders that have charismatic and transformational features may achieve high goals compared to the other leaders. In Bransons opinion, transformational approach is the best leadership trait in business (Branson, Breeden & Kendric, 2012). With inspirational motivation, intellectual stimulation, individualised consideration and charisma, transformational leaders may have a high potential of promoting actions beyond the expectations of the public within organisations turmoil and institutional instability. Trait theory Most theories put forward before the 20th century indicated that good leaders are born and cannot be made. In recent studies, it has been realised that leadership is complex and cannot be brought down into a few individual traits. Years of study have found out that one trait or combination of traits cannot make a leader extraordinary (Schafer, 2013). Scholars have a general conclusion that leadership qualities of any leader cannot change when situations change. These traits are assertiveness, intelligence and physical attractiveness. According to the trait theory, a successful leader must be self-driven and determined. People with these two characteristics most of the time tend to be ambitious, hardworking, assertive and emotionally stable. Richard Branson encompasses a determination trait: this is demonstrated by the ability to formulate solutions, adapt well to changing situation, and providing excellent plans. Branson has a high self-confidence that encompasses traits like assertiveness, self-esteem, self-assurance, and integrity. He is described as a friendly, tactful, flexible, extroverted and interpersonal leader. Such traits enabled him to be accepted in the organisation and loved by the people Behavioural Theory After the early criticism of trait theory, theorist started research on leadership based on behaviours. The researcher evaluated behaviours of most successful and determined leaders (Yukl, 2002). Self-confidence accompanied by high self-esteem are essential to be a good leader. Behavioural theories explain why people change their behaviours depending on factors like change of environment. Behavioural theories are not accepted universally; the major criticism is that these theories lay more emphasis on behaviours of individuals and disregard environmental influence on behaviours. Situational theory The situational theory based the effectiveness of a leader on what is known as situational contingency. This results when there is an interaction between situational favourability and leadership style. The theory gives two types of a leader: those who strive to accomplish a particular task by building a healthy relationship and interaction with the people, and those who work to accomplish the task itself. According to this theory, it is not possible to have an ideal leader. If orientation situation fits both relationships (oriented and task), oriented leaders can be effective. When a good relationship exists between structured tasks and leaders with high power positions, the situation is called a “favourable situation." This theory suggests that leaders who are task-oriented are more effective whether the situation is favourable or it is unfavourable, whereas leaders who are relationship-oriented perform well in a favourable situation only. Comparison with other Business Leaders According to West (2000), Bransons management style has been criticised because he is in total contrast to the other leaders. He does not hold board meetings, does not have business headquarters and has no knowledge about the computer. Contrary to other leaders, Richard Branson’s leadership principle is based on the desire to treat people well and with respect. According to Geothals, Sorenson and Burns (2004), companies that leaders take good care of their employees always get excellent result. Branson stresses the importance of having time management skills. He hires only bright people, who are given positions in his ventures. This makes them motivated to work for the success of the company. Daily operations are taken care of by the staff while Branson focuses on doing publicity and promoting the products. The success of Branson’s companies demonstrates the importance of relating well with employees. Richard Branson, unlike other leaders, puts the employees first, the customers are second, and shareholders come third. He always looks for ways to praise his employees: this makes them motivated and often strive to achieve more. Branson is always ready to listen and exchange ideas with his employees (Antonakis, CiancioloI, & Sternberg, 2004). Richard Branson believes that “luck” is the most underappreciated and misunderstood life factor. The businesspersons that are considered luckier and fortunate than others in most cases are the ones who are ready to take risks. Most leaders in contrast play safe by failing to risk in big ventures for fear of losing or failing. Recommendations From the above report, Richard Branson leadership philosophies give him positive results. A leader should be genuinely interested in the peoples welfare and strive to make them offer the best. To succeed in any business, one needs to build a strong team that believes in what it is doing. According to Branson (2009), leaders should always look for ways to praise their followers. In this report, it is clear that Richard Branson is successful because he is good in listening and knows how to delegate duties. Conclusion Finally, successful leaders of business need to note that it is not their effort, rather it is an incredible fortune. Every successful person has enjoyed the support of the majority in the organisation. No one can get to that top position alone. Without any doubt, it is evident that many readers are on the road to becoming great and successful business leaders. They have a noble responsibility of giving back to the community in many ways. For example, starting business ventures that will create many job opportunities or contribute to the welfare of the people through improving their life. From Richard Bransons road to success one can learn that successful people are those who think of an idea and take the first step even if the time is not right. References Antonakis, J., CiancioloI, A. T., & Sternberg, R. J. (2004). The nature of leadership. Thousand Oaks, CA, Sage Publications. Branson, R., Breeden, J., & KendricK, M. (2012). Leadership case study Virgin Group of Companies. At the Helm. Pasadena, Calif. Branson, R. (2009). Leadership - holding on and letting go. Management Today. 25, 23-25. Dearlove, D. (2007). Business the Richard Branson way 10 secrets of the worlds greatest brand builder. Chichester, UK, Capstone. Geothals, G. R., Sorenson, G. J., & Burns, J. M. (2004). Encyclopedia of leadership. Thousand Oaks, Calif, Sage Publications. Green, M., & Crorowther, D. (2004). Organisational theory. London, Chartered Institute of Personnel and Development. Schafer, J. A. (2013). Effective leadership in policing: successful traits and habits. Durham, N.C., Carolina Academic Press. West, P. (2000). Organisational learning in the automotive sector. London, Routledge. Woolfe. L. (2002). The Bible on leadership from Moses to Matthew : management lessons for contemporary leaders. New York, American Management Association Yukl, G. A. (2002). Leadership in organisations. Upper Saddle River, NJ, Prentice Hall. Read More