There Are Major Techniques Of Authority Theory Business Essay

Virgin was founded in 1970 as a mail-order record business and developed as a private company in music posting and retaining. Virgin acquired expanded fast, becoming profitable and getting into and claiming a significant talk about of new market segments without the traditional trappings of the typical multinational. In 2001 Branson identified the virgin group as top quality ventures to increase them at the trouble of profits. The usage of partners provided flexibility and limited risk. Branson and his business development team evaluated about 50 business proposals a week with about four new assignments under discussion at any one time.

Company account:-

Sir Richard Branson, keeping company Virgin Group gets around. The group's travel-related operations, led by 51%-held Virgin Atlantic Airways, are among its largest cash generators. The airline flies to about 35 locations surrounding the world with a fleet of almost 40 airplane. Virgin Atlantic is complemented by its Australian low-fare cousin, Virgin Blue, which runs a fleet of some 80 aircraft. Virgin Group also operates Virgin Rail and markets tour deals. Besides travel and leisure, the group's major operating areas include financial services and telecom (Virgin Multimedia).


Leadership culture is defined by the collective action of formal and informal leaders acting jointly in the help of organizational goals that eventually signifies the difference. Whenever we discuss the leadership it's the both leaders themselves and the partnership among them, the abilities and behavior of the leaders are had a need to implement the business enterprise strategy and create the desired culture. The collective leadership features of the market leaders acting jointly in the categories and across the boundaries to apply strategies. A good leadership strategy needs many of these factors into account. (William and Michael, 2011. )

Generating your time and effort and determination to work at targets is central to handling any human activity. People use the word 'effective head' to denote someone who brings innovation, goes an activity out of trouble into success, makes an advisable difference. They see opportunities to do new things, take initiatives, and encourage people.

"The most effective market leaders will be people who use their energies to accomplish desired results. Control will focus on action and execution". Katz and Kahn (1948).

There is general three regions of skill are essential for the procedure of management: technological, human and conceptual

Technical skill:-ability to use knowledge, methods, techniques, and equipment essential for the performance of specific jobs, received from experience, education and training.

Human skills:-ability and wisdom in working with and through people. This includes an understanding of drive and request of effective authority.

Conceptual skills:-ability to understand the complexities of the overall business and where one's own procedure fits in to the group. This knowledge allows one to take action according to the objectives of the full total organization alternatively than only based on the goals and needs of your respective own immediate group.

There are major approaches of control theory:-

Trait theory:-

Trait theory does indeed, however, help us identify some characteristics that are helpful when leading others and, along, these emerge as a generalized command style. For example empathy, assertiveness, good decision-making, and likability. Trait theories argue that leaders share a few common personality attributes and characteristics, and that leadership emerges from these features. Early trait ideas promoted the idea that leadership is an innate, instinctive quality that you either have or don't possess. Thankfully, we've shifted from this methodology, and we're learning more about what we can do as individuals to build up leadership features within ourselves and others

Behavioral Way Theory:-

The behavioral approach theory can be an extension of the attributes theory and is superior in certain respects. The qualities theory didn't explain what triggered effective authority. The behavioral procedure is dependant on the study of behavior of your leader. This behavioral theory shows that a innovator do not act in the same manner under all situations. Similarly, his actions aren't identical under all situations which he faces. He changes his behavior according to the need of the situation. There is an element of overall flexibility in his strategy and habit. He studies the problem and changes his authority style consequently. He adopts different authority styles to meet the need of different situations.

Contingency theory of management:-

Fred Fiedler developed the Contingency Theory of Control that can determine types of leaders by their characteristics and the situations they end up in. The relationship-oriented leader would want to get along with their employees and so will perform in a way which gains their adoration. This does not take away from the actual fact that they desire a high degree of performance from their employees, but their priority is to maintain good relationships. The top priority of a task-oriented innovator is for their subordinates to complete all jobs and meet all goals. While both varieties of leadership can be useful in various contexts, it's important to realize under Fiedler's Contingency Theory it is hard for a relationship

Situational leadership theories:-

Situational ideas of command were developed to find good means of adapting leadership activities to meet the needs of different situations and circumstances. Authority style here refers to the broad procedure adopted by the head. A leader's design of authority is often predicated on a leader's own values, personality, activities, working environment and the problem at the time. Some leaders work within one authority style. Others will be more flexible and can change their design of leadership to meet the needs of different situations.

Transactional vs. Transformational control theories:-

Transactional management theory is dependant on transactions or exchanges between your innovator and the follower. It assumes that the working marriage is one where in fact the leader issues the task, praises or criticises, rewards or punishes. The follower has little responsibility, other than doing as they are required, appropriately. All works well if both head and follower perform their part in the ventures as expected. This approach is more regularly observed in low skilled careers, where techniques are clearly identified or where there is little change. Transformational authority theory is focused on change. Transformational market leaders inspire others to follow a eye-sight.

One reason change model is a genuine development is its goal emphasis. The relationship between the head and other customers of the team isn't of key importance. Such functions and duties are present because there is an outside something that all desire to reach, and they also take their places and undertake their own necessary tasks. For the very first time, those studying leadership began to view it as actually being with regards to something increased. Transformational leadership depends on a greater framework or interpretation, which is something everyone desire. Building trust and getting co-operation are far more difficult than supplying orders and monitoring process. In transformational command, the first choice must continue being an inspiring existence. The first choice leads by example and it is in charge of motivating others.

Richard Branson has got the style of a transformational and charismatic head, which almost all of us only imagine working for or with. Sir Richard's own judgment on this overview of him as a leader, delivered via a two hour long interview of him on his island, writing a nice container of burgandy or merlot wine. But that will almost certainly stay   wish, as will the wish of working for or with a innovator as Sir Richard Branson.

Leaders deals with their employees in various ways. Some are strict to the employees and like to be in absolute control on the other hand some are more peaceful and allow workers some space to perform their own working lives. Whatever procedure is predominately used it will be essential to the success of the business. An organization is pretty much like the Manager or the individual running it.

Management styles are also called 'authority styles', indeed these are similar phrases most of the time.

Different Types of control Styles


Feature -

Autocratic Managers normally just gives orders to their staff & requires decision with no discussion or discussion In these situation decisions are used rapidly because staff aren't consulate. Subordinates & other staff are anticipated to obey the instructions.


As the staff doesn't have any involvement the works are usually completed promptly & decision are taken faster. Sometimes this kind of management style reduce the drive & also raise the staff turnover because they are not involved with taking any decision & neither feel appreciated.


Feature -

Unlike in Autocratic control style Democratic style employees are involved in taking decision therefore they end up valued & they are motivated. They are given responsibilities to complete the work directed at them using their own method. However task should be completed promptly. This method also improved the grade of staff because they're motivated & belonging. Also the management profits team commitment especially when changes need to be made.

Impact -

Although this style of control is very famous among businesses this method slows down the process of decision making because the staff is engaged. The managers gain the team commitment largely when changes have to be made.

Laissez Faire

Feature -

In Laissez Faire command style Managers models a task & gives personnel absolute independence to complete the task taking own decisions. In this leadership style there exists hardly any or almost no way from the director. The administrator however does not be seated idle! They is there to teach or answer questions, source information if required.

Impact -

Staff fell determined & is developed to consider responsibility. But on the other hands with hardly any assistance from the manager personnel may feel lost a might not be able to reach the mark within set enough time frame.

Motivation theory:-

Motivation is the make which makes us respond in a specific way. Inside a business setting desire is about ensuring that employees put in the effort necessary to achieve the objectives set for the kids.

Motivation theories:-

Over the years a number of leadership theories have been put forward in an attempt to explain the nature of employee motivation and suggest ways that it could be improved.

Frederick Taylor's inspiration theory:-

Taylor was an North american engineer who researched production methods in the metallic industry. He concluded that workers main motivation was pay and they needed close supervision. He believed that complex jobs would be most successfully performed if broken down into separate functions where little could go wrong. The complete job could then be completed in a series of periods by employees working alongside one another in production lines.

Elton Mayo: - in the 1920s Mayo conducted some tests at the Hawthorn works of the American Electric Company in Chicago. He was investigating why, despite improved facilities and benefits, there is much dissatisfaction and poor output. He concluded that the employees were responding to the attention given to them, alternatively than to the physical working conditions.

Abraham Maslow's hierarchy of needs:-

Maslow assumed that motivation comes from a desire to fulfill a hierarchy of human being needs which show in diagram. We should first of all satisfy our basic needs for survival such as food and shelter. Thereafter we become thinking about more impressive range needs such as job satisfaction and personal -fulfillment. People in developing countries, for example will work hard for low pay because there is little choice. Maslow accepted a verity of needs will exist at the same time, but recommended that once lower needs are satisfied then higher become the most powerful motivators.

Frederick Herzberg's two factor theory:-

Frederick Herzberg's two factor theory, stated in the 1950, concerns job design and satisfaction. From numerous interviews with accountants and designers he figured two sets of factors are important in motivation.

Hygiene factors


Reasonable pay

Satisfactory conditions of work

Benefits deals such as ill pay, pension's techniques, etc.

Without these, people are dissatisfied, nonetheless they only do not lead to job satisfaction or provide motivation



Self -improvement

These provide job satisfaction and motivate people

Douglas McGregor's theory X and Y:-

In his book, the human side of organization, McGregor put forward two extreme views about how organizations manage their employees. He called these theories X and theory Y. Douglas McGregor believed that there have been two main ways of managing employees.

The theory x

The theory y

The theory x way, where employees are managed as if they are lazy and have to be punished and threatened if indeed they do not work hard enough.

The theory Y way, where employees are supervised as though work is a good activity for the coffee lover and they will feel rewarded from being with other humans and performing a good job.

The type of command style that is utilized with employees can make a difference to the level of desire that they feel. Some employees may work harder if they are seriously supervised and threatened with consequence if indeed they do not work well, but also for others this can lead to de-motivation and they'll either produce less work or eventually.

McClelland: - David McClelland suggested that we now have three main types of motivational need:-

The dependence on achievement

The need for specialist and power

The need for affiliation

Each worker and innovator has differencing degrees of these needs, and this impact their style and tendencies as leader or employees. Go through the pursuing example.

A person who is success -motivated desires challenging goals and be able to reach them. They need to receive feedback on how they may be doing and need to feel these are being truly a success.

A person who is power and power -motivated will need a big impact on others and make an impact. They want and need to lead as his helps them feel better about themselves.

A one who is affiliation -encouraged wants friendly associations and prefers being with other folks. They may be team players and tend to be popular at work.

As most people own an assortment of all three models of characteristics, the style a head uses in inspired by their dominating need.


Victor vroom developed his expectancy theory of motivation, which claims that employees work harder if indeed they believe that the outcome of their initiatives will be better. He produced an equation that is used to estimate motivation:-

M = E-I-V

M= motivation

E = expectancy

I= instrumentality

V = valence

By multiplying these factors alongside one another Vroom says you'll be able to work out how determined someone is likely to be. If each factors is high, then motivations is likely to be high, but if is low, overall motivation will be lowered.

Culture-Culture of a link is the typical way to do things in the business. It particularly relates to behavior patterns and interactions. The culture of a business develops over time. It really is created by the people that work for the business its administrator and workforce. Any company's ideals and beliefs rely upon cultures that are shared across the business. Company organization's also effect on its strategy and focus on the consumer. A key factors of the new procedure has to change the organization culture and build an atmosphere within the company those ideals : consumer service which focus given that an skill that is agreeable and sociable as well as productive team work, because this lead to superior support and the contribution of ideal training attractive possession used for decision therefore to facilitate administrator make clear problems themselves somewhat than go them on to others respecting every one thus everyone feel they have the ability to contribute having the cut-throat will to achieve success thus each individual is try to develop and become successful.

Cultural diversity:-

The word 'Cultural Variety' means several various societies or individuals with different roots, religions and customs living, working or interacting together. With the best, it consists of treating rather and relatively each cultural group without advancing the specific values or beliefs of any particular group. Quite simply cultural variety at business is an idea of hiring people of different organizations, different religions and encouraging the admittance of working personnel from various countries.

Dimensions of diversity:-

Primary dimensions

Secondary dimensions

Tertiary dimensions








sexual orientation

thinking style

geographic origin

family status

economic status

political orientation

work experience










group norms

This table indicates that diversity has many proportions. These may intertwine to produce unique syntheses of human profiles, composed of both variations and similarities. The dimensions interact with and influence each other and emerge or are shown differently contexts, conditions and circumstances, making analysis and management organic. Contest, for example, may be more dominant than years in a certain interpersonal situation, but may be less dominant than education in a work framework. Thus the positioning and dominance of every dimension are not static, but active, making the idea of diversity more complex. The secondary measurements tend to be malleable and most of them will change as time passes. Diversity is not simple, challenging to grasp rather than easy to mange. Through the use of socio-demographic attributes as independent factors to operationalise diversity, most variety studies has comprehended diversity as confirmed, fixed individual or group essence (Litvin 1997).

Managing ethnic diversity:-

Overcoming prejudice and changing entrenched negative attitudes about equality and variety issues is difficult. Every firm needs to understand the broad nature of the business enterprise quarrels and ensure actions and initiatives support business goals. They have to move from nominal conformity with legal tasks and concentrate on interesting employees understanding in ways that influence personal conducts and functional activities about the diversity of products and services to meet diverse customer and client needs and choices. People make the difference at work but everyone is different comforters the development of the idea, tips for intensifying action, case studies and diversity issues in the population. For a business to gain the entire benefits of diversity, a coherent diversity strategy is required to ensure that procedures and working procedures across the business echo relevant variety implications. It needs to be recognized with a well communicated value system reflecting the importance of variety. All employees should be trained to understand and engage with this in the manner they certainly their careers and use their colleagues. Diversity strategies need to accept greater versatility in both people propositions and customer and consumer service delivery and take accounts of the inclusive aspect of the work- life balance agenda.

Managing variety also links to making certain worker wellbeing is not just a nice to do but an important element of worker engagement and drive. Smart employers take accounts of these issues as key components of their workplace brand to support the fascination support and retention of skill. Adler (1997) has determined the following strategies for managing cultural distinctions.

Ignore ethnical differences

Minimize social differences

Manage social differences


The world continues changing and providing new kinds of difficulties to multinational companies. This makes it necessary for them to look at new strategies and new sorts of activities in order to endure and increase in a changing business environment.

Virgin will continue to prosper in its global business by integrating the control skills and specialized skills of its professionals to permit them to develop innovative ideas on how to handle the diverse conditions in the global market.

Another recommendation is for the corporation to get rid of the typical European bias towards poor countries. The concept is to use in ways that look at the expectation of men and women who are influenced by the business.

The corporation should also make more attempts to develop local capability. This identifies the recruitment and training of the locals to become global leaders which finally will redound to the best interest of the corporation.


With over 25 years in the travel sector and a reputation for delivering unforgettable activities to an incredible number of Virgin enthusiasts, Virgin is a perfect fit for the hotel business. Virgin is a leader in design and hospitality and has altered businesses which range from airlines to fitness night clubs to super luxury retreats and even space travel and leisure. Customers expect advancement and excellence and our new 4 celebrity hotels will deliver exactly that. Virgin Hotels offers a unique opportunity for home owners and creators to partner with a respected global brand in a highly differentiated hotel proposition that taps into growing movements in consumer preferences. Virgin hotels aim to re-define the client trip from pre-arrival to check-out is built on comprehensive customer research. Hotel valuable market includes high income, well-educated, metropolitan business and leisure holidaymakers. We can leverage an incredible number of Virgin flyers to significantly improve marketing, sales and circulation, and an incredible number of loyalty program customers (Virgin America Elevate and Virgin Atlantic Traveling Club). In addition, having built large size, highly profitable businesses, we bring proven operational expertise.


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Mullins L. J. , 2007, Management and organizational behavior, Pearson Education Ltd, GB, PP 166

Niezen Ronald - A global beyond difference Blackwell Publishing - 2004

Peter F. Drucker, the practice of management (New York: Harper &Row, 1954). see also Allen

Richard L. Draft, Management, 3rd ed. (Fort Price, TX: Dryden Press, 1993), p. 493.

Smith, M. & Smith, M. (2002). 'Globalization' the encyclopedia of informal education. Retrieved August 27, 2006

James D. Thompson, Mcdonals in action, 1967.

Michael E. Potter, competitive Strategy: techniques for analyzing companies and competitors 1980.

Robert O'Quinn and Kim Cameron, Mcdonald Life Cycles and Shifting Criteria of Effectiveness 1983.

Rahul Jacob, "Commercial Reputations, " 1995, 54-67

William Warned, "lessons of value -Motivated Leadership, " 1995.

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