Organisational Theory and Practice Assignment Sample

Introduction Of Organisational Theory and Practice

One time, the Virgin Group firm Virgin Orbit, an orbiting satellite launched business created by British billionaire Richard Branson, was regarded as a potential endeavour in the expanding space sector. Virgin Orbit tried to distinguish itself from its rivals by using cutting-edge technology and the desire to revolutionize satellite deployment. Nevertheless, the past few weeks have cast a completely distinct image, with reports of the corporation declaring insolvency and carrying out significant personnel reductions. Critical concerns concerning the fundamental causes of Virgin Orbit's untimely demise have been brought up by this terrible turn of events. As the senior manager for the Virgin Group, it is our duty to perform an exhaustive analysis of the business's internal processes and identify the underlying reasons for its problems. In this paper, we will examine the possible effects of four crucial factors on Virgin Orbit's current situation: organizational atmosphere, organizational framework, administration, and inspiration. The foundation upon which the company's values, beliefs, and norms are created is its organizational culture. We can pinpoint places in Virgin Orbit's organizational structure where prompt crisis reactions and recovery efforts may have been hampered. Leadership acts as the organization's compass, pointing it in the direction of its objectives. Strong leadership may motivate workers in trying situations, spur creativity, and support wise decision-making. However poor or misinformed leadership may compound issues, lead to chaos, and undermine employee confidence. Examining the leadership of Virgin Orbit can help determine how successfully the business was run over its tumultuous voyage and if the appropriate techniques were used to overcome obstacles.

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The achievement of any company depends on its workers' dedication and loyalty to their work, which is motivated. However, major obstacles, like unsuccessful rocket launches, can have a significant effect on inspiration, which could result in a fall in efficiency and effectiveness. Observations into whether or not Virgin Orbit succeeded in sustaining staff engagement and attempted to establish a good and motivating atmosphere for work may be gained by comprehending the way the organization managed motivation among staff members during difficult times.

We will go into each area in further detail in the sections that follow, critically examining Virgin Orbit's organisational atmosphere, order, management, and motivation. We will give strategic suggestions and use the ADKAR change management approach to chart a road towards an improved and more sustainable future for Virgin Orbit by identifying significant problems. By this thorough analysis and critical reflection, we want to get the business reinstated on course while navigating choppy skies with fresh vigour.

Organisational Culture

The behaviour, mindsets, and principles held by workers inside an organisation are significantly influenced by the organisational culture. It establishes an atmosphere for how people communicate with each other, create choices, and handle difficulties. In the case of Virgin Orbit, the company's capacity to bounce back from its rocket launch failure and establish long-term finance may have been significantly impacted by the organisational climate.

Resilience and Learning Culture (Supported by Edgar Schein's Organizational Culture Model):

Three categories are highlighted in Edgar Schein's concept of organisational culture: artefacts, professed ideals, and fundamental presumptions. Given the difficulties in discussing the rocket launching mishap publicly, it is possible that Virgin Orbit's culture did not place a significant value on acquiring knowledge and resiliency. When the avowed principles weren't compatible with an environment of learning, it may have made it more difficult for the company to successfully recover from losses (Malik, 2017).

Communication and Transparency (Supported by the Social Information Processing Theory):

According to the Social Information Processing Theory, people acquire opinions about other people and an organisation depending on the data that they are given. Communication that is open is essential for fostering a healthy culture and establishing trust within an organisation. If Virgin Orbit had difficulties informing its staff in a timely manner about the company's position and strategy for recovery, this may have resulted in scepticism and decreased commitment among workers. Understanding how well openness and interaction were implemented can aid in understanding how they affected organisational culture (Kim, 2017).

Innovation and Creativity (Supported by the Competing Values Framework):

Clan, Adhocracy, Hierarchy, and Market are the four cultural types recognised by the Competing Values Framework. Adhocracy cultures place a strong emphasis on creativity and innovation while promoting risk-taking and entrepreneurial behaviour. Establishing an entrepreneurial environment is essential for promoting continual development and keeping abreast of competition in a field like space science and technology. It will be possible to get an understanding of Virgin Orbit's capacity for adaptation and success by analysing whether the company's atmosphere encouraged creative practises and where staff members had the freedom to provide original ideas (Zeb, 2021).

Alignment with Company Values (Supported by the Organizational Values Framework):

According to the Organisational Values Framework, better satisfaction with work and dedication can result from aligning personal values with organisational principles. Employees at Virgin Orbit would undoubtedly be more motivated and committed if they felt strongly that the company's objective and their own beliefs were aligned. Understanding the degree of cultural coherence at Virgin Orbit requires looking at the measure of agreement among person and organisational ideals (Silva, 2017).

Employee Engagement and Well-being (Supported by the Job Demands-Resources Model):

According to the Job Expectations-Resources Model, excessive job expectations, as those Virgin Orbit encountered during hard times, can cause staff exhaustion and diminished happiness. Nevertheless, it might improve work happiness and involvement if employees feel that the organisation is providing them with enough resources and support. Examining the culture of Virgin Orbit and the tools available to employees can show how it affects productivity and well-being (Mazzetti, 2021).

Leadership's Role in Shaping Culture (Supported by the Transformational Leadership Theory):

According to the theory of transformational leadership, strong leaders may promote and motivate their teams to succeed at greater heights. Shared vision, inventiveness, and trust are all qualities of transformational leaders that benefit their teams. It will be possible to get insight into Virgin Orbit's leadership's involvement in determining the course of the firm by examining whether or not it demonstrated transforming traits as well as how it affected the organisational culture (Astari, 2020).

Organisational Structure

The distribution of duties, responsibilities, and jobs within an organisation is determined by the organisational structure. It is crucial in deciding how well operations are carried out, how decisions are made, and how well an organisation can adapt in general to changing conditions. It is possible to gain insight into how Virgin Orbit's organisational structure may have affected the company's capacity to bounce back from setbacks and obtain long-term financing.

Bureaucratic Structure (Supported by Max Weber's Bureaucratic Theory):

Organisations having a bureaucratic structure are said to be composed of well-defined structures of power, strict regulations and processes, and distinct lines of power, according to Max Weber's bureaucratic theory. Substantial bureaucracy qualities in Virgin Orbit's organisational framework could have made it more difficult for the corporation to quickly adjust following the rocket's launching disaster and get the required finance (Serpa, 2019).

Mechanistic vs. Organic Structure (Supported by the Organic Organizational Structure Theory):

An essential idea in organisational design is the distinction between deterministic and natural systems. Although natural frameworks remain more adaptable and support decentralised making choices and empowerment of staff members, mechanical ones are inflexible and favour centralised making choices. Virgin Orbit may have been better adapted to the quickly changing space sector with a structure that was organic, which would have allowed for speedier problem-solving and encouraged innovation. Analysing the proportion of mechanical vs organic components in the structure of an organisation might reveal information about how flexible and agile it is (Jewczyn, 2010).

Span of Control (Supported by the Span of Control Theory):

According to the Span of Control Theory, a manager can only efficiently oversee a certain number of subordinates. While a greater range of control produces a simpler framework featuring a smaller amount of managerial rung, a narrower span of control produces a higher organisational hierarchy. Virgin Orbit's scope of control could have been too limited, resulting in a top-heavy organisation that would have slowed down the process of communication and decision-making. On the reverse side, a control area that was too broad would have overburdened managers and prevented them from offering the right direction and assistance (Reme?ová, 2018).

Centralization vs. Decentralization (Supported by the Centralization and Decentralization Theory):

Decentralisation refers to giving decision-making power to lower levels of the organisation, whereas centralization refers to the concentration of decision-making power at the top. A more decentralised structure might have enabled staff to act quickly and wisely, enhancing reaction times to problems in a fast-paced sector like space technology. On the other hand, excessive centralization may have slowed down decision-making and created bottlenecks. Virgin Orbit's decision-making effectiveness may be determined by comparing the degree of centralization and decentralisation within the organisation (Cummings, 2015).

Cross-Functional Integration (Supported by the Cross-Functional Integration Theory):

Cross-functional integration entails tearing down organisational silos and encouraging communication between various teams or departments. Effective cross-functional integration is crucial for coordinating efforts and fostering innovation in a sector that is heavily reliant on technology. If the structure of Virgin Orbit prevented teams from collaborating and exchanging knowledge, it may have prevented creative problem-solving and innovation (Pellathy, 2019).

Alignment with Strategic Objectives (Supported by the Strategy-Structure Fit Theory):

According to the strategy-structure fit theory, the organisational structure ought to be in line with the overall strategic objectives of the business. If Virgin Orbit's organisational structure had not been in line with its objectives, inefficiencies and improper resource allocation may have resulted. The efficacy of the organisation as a whole may be determined by assessing whether its organisational structure facilitated the achievement of the business's long-term goal and enabled effective execution (Jewczyn, 2010).

Leadership

The success of an organisation and course of action are greatly influenced by its leadership. Using the application of several leadership concepts and frameworks, the efficacy of managerial leadership at Virgin Orbit may be evaluated, revealing important details about its impact on the organization's capacity to bounce back from failures and maintain funding for the future.

Transformational Leadership Theory

The importance of managers in encouraging and motivating their subordinates to attain extraordinary performance is emphasised by the transformational leadership theory, which was first developed by Bernard M. Bass and then popularised by James MacGregor Burns. Transformational leaders inspire creativity, empower their team members, and convey a compelling vision. A transformative leadership strategy would have been essential in the Virgin Orbit situation to inspire a shared commitment to the company's objective, rally the staff following the rocket launch failure, and build a culture of learning from failures.

Situational Leadership Theory

According to the Situational Leadership Theory, which was created by Paul Hersey and Kenneth Blanchard, successful leadership entails modifying one's leadership approach according on the degree of preparedness and growth of one's subordinates. Leaders at Virgin Orbit had to use a flexible leadership strategy during a period of crisis and ambiguity, offering support and direction to staff depending on their individual needs. Assessing whether leaders displayed situational awareness and modified their leadership style in response can provide information on how effective they were under pressure.

Authentic Leadership Theory

Bill George's concept of authentic leadership emphasises the need of leaders being honest with one another and operating in accordance with their underlying principles. Genuine leaders establish credibility and trust, creating a climate where workers feel appreciated and motivated. Genuine leadership would ultimately have been essential in the Virgin Orbit situation to keep staff members motivated amid layoffs and recovery attempts. Assessing the leadership's sincerity and openness inside the organisation will give significant understanding into how it affects worker dedication and participation.

Servant Leadership Model

Robert K. Greenleaf developed the Servant Leadership Model, which places a strong emphasis on a leader's dedication to meeting the needs of both their followers and the larger community. The welfare and development of their staff are given top priority by leaders who follow this strategy. Servant leaders concentrate on helping their teams and getting in the way of success when a crisis occurs. It is possible to learn more about the influence of Virgin Orbit's executives on employee motivation and the performance of the firm as a whole by examining whether they exhibited servant leadership traits.

Emotional Intelligence (EI) in Leadership

Daniel Goleman popularised the term "emotional intelligence," which describes a leader's capacity to comprehend and control both their own emotions as well as those of the people they supervise. High EI leaders are able to handle difficult circumstances with empathy and calm, creating a productive workplace. In the case of Virgin Orbit, managers with high EI may have been more capable to manage the psychological effects of redundancies and maintain employee engagement throughout the recuperation period.

Leadership Communication

In times of crisis, effective leadership communication is essential. Instilling confidence in the future of the company and keeping lines of communication open with personnel are all responsibilities of leaders. Assessing the efficiency of leadership communication at Virgin Orbit can provide information on how it affects organisational cohesiveness and employee engagement.

Motivation

Impact of Rocket Launch Failure	The rocket launch failure in January had a profound impact on employee motivation at Virgin Orbit. Failures can be demoralizing, especially in a highly competitive and visible industry like space technology. Employees who invested significant time and effort into the mission might have felt disheartened and questioned their abilities and the company's direction. The lack of a successful launch could have led to a decline in intrinsic motivation as employees faced disappointment and a potential loss of confidence (Kingsley, Thomas, 2023).
Uncertainty and Job Insecurity	Following the rocket launch failure, Virgin Orbit's decision to lay off around 85% of its workforce created an atmosphere of uncertainty and job insecurity among the remaining employees. Fear of potential layoffs and concerns about the company's financial stability could have significantly impacted motivation levels. Employees might have become preoccupied with job preservation rather than focusing on productivity and performance (AP, 2023).
Communication and Transparency	Effective communication is vital during times of crisis, but a lack of transparent communication can lead to decreased employee motivation. If Virgin Orbit's leadership failed to communicate openly about the company's challenges, recovery plans, and the reasons behind layoffs, employees may have felt disconnected and uninformed. Transparent communication can foster trust and provide employees with a sense of purpose, positively impacting their motivation (Tennant, 2022).
Leadership during Crisis	The way leadership handled the rocket launch failure and the subsequent layoffs played a critical role in shaping employee motivation. Effective leadership during a crisis involves providing a clear vision, empathetic communication, and support for employees. If leadership was perceived as reactive, indecisive, or unresponsive, it could have further eroded employee motivation. On the other hand, strong and inspiring leadership can instil confidence and motivation among employees (Robbins, 2016).
Lack of Recognition and Rewards	Amidst the challenges, employees at Virgin Orbit might have felt a lack of recognition for their hard work and dedication. A failure to acknowledge and appreciate employees' efforts can diminish intrinsic motivation. Moreover, if the company's financial constraints limited the ability to provide rewards or bonuses, it could have further impacted employee morale.
Impact of Layoffs on Organizational Culture	The layoffs themselves could have had significant implications for the organizational culture and, consequently, employee motivation. A sudden and significant reduction in the workforce can create a sense of loss and mourning within the organization. The culture might have shifted towards uncertainty, fear, and reduced collaboration, adversely affecting motivation among the remaining employees (Zack, 202July).
Motivational Strategies	Given the challenging circumstances, Virgin Orbit could have implemented motivational strategies to boost employee morale. These could include involving employees in decision-making, providing clear career development paths, and recognizing individual and team accomplishments. By enhancing motivation, the company could have improved employee engagement and performance during the recovery process (Bowling, 2020).
External Factors	Apart from internal factors, external factors, such as the highly competitive space industry and the global economic situation, may have influenced employee motivation. The uncertainty in securing long-term funding, potential market fluctuations, and geopolitical factors could have added to employee concerns and impacted their motivation (Bowling, 2020).

Overall, it can be said that Employee motivation at Virgin Orbit was significantly impacted by the rocket launch failure, following layoffs, communication procedures, leadership throughout the crisis, recognition and awards, and the overall organisational culture. Reviving employee motivation and creating the conditions for Virgin Orbit's recovery and future success in the space industry will require comprehensively addressing these factors through open communication, compassionate leadership, motivational techniques, and a supportive organisational culture.

Use of corporate examples and literature

The selection of Virgin Orbit to lay off employees and declare bankruptcy was driven by a confluence of elements linked to the culture of the organisation, leadership, and the fallout from the rocket launch disaster. A detailed analysis of these components reveals the causes of the business's financial difficulties. First off, Virgin Orbit's attitude to the rocket launch failure was greatly influenced by the organisational culture. The company's capacity to recover from the setback may have been hampered by a risk-averse culture that stigmatised failure and lacked a learning-oriented strategy. Employees could have been dissuaded from taking new risks out of concern for the possible negative effects of failure. This culture may have made it more difficult for the business to consider other options, which lengthened the recovery process. Second, the organisational structure could have made employee layoffs and ultimate insolvency necessary. It may have been difficult to react quickly due to a bureaucratic structure with centralised decision-making that delayed down responses to the crisis (Bowling, 2020). It's possible that the company's capacity to find long-term finance and investigate new income streams was hampered by decision-making bottlenecks. A rigid organisational structure may have also caused administrative inefficiencies, raised expenses and put further strain on the business's finances.

Thirdly, strong leadership during a crisis is essential for directing a company towards recovery. Virgin Orbit's leadership might have increased employee confusion and destroyed confidence if it had not been transparent about the company's problems and failed to articulate a clear recovery plan. Employees could have felt abandoned and demotivated as a result of ineffective leadership, which would have affected output and performance (Malik, 2017).

Furthermore, it is important to recognise how the rocket launch failure has affected staff morale. Failures may be discouraging, especially in an area with as much competition and visibility as space technology. It's possible that the subsequent layoffs made the surviving personnel feel uneasy and unsecure about their jobs. Employee motivation may be greatly impacted by such situations, since people may choose job security above productivity.

These elements probably worked together to cause Virgin Orbit's financial difficulties, which culminated in the tough choice to lay off employees and declare bankruptcy. Addressing these issues, however, presents a chance for a change (NABINAYAGAN, 2017).
Virgin Orbit has to address its organisational culture and promote a more resilient and learning-oriented workplace in order to enhance the company's performance and prospects. Employees may be empowered to adapt and support recovery efforts by supporting a culture that welcomes innovation, views setbacks as teaching moments, and encourages openness.

A review of organisational structure and simplification of decision-making procedures can also improve flexibility and responsiveness in times of crisis. Including all levels of employees in decision-making can improve outcomes and hasten rehabilitation (Caniëls, 2019).
The key to steering the organisation over uneven liquids is effective leadership. The leaders of Virgin Orbit should exhibit openness, compassion, and a distinct vision for the future of the organisation. Rebuilding trust and motivation among employees may be accomplished by interacting with them and giving them frequent updates on the recovery process.
Finally, initiatives to increase employee motivation through awards, chances for advancement, and recognition may encourage a feeling of mission and dedication within the workforce. Investing in employee happiness and engagement may boost output and organisational toughness (Kim, 2017).

Recommendation

I would start strategic changes as a Senior Manager at Virgin Orbit, driven by the ADKAR Change Management approach, to enhance the company's performance and promote a more sustainable future. The Prosci-created ADKAR model concentrates on five crucial components that are necessary for effective organisational change: awareness, desire, knowledge, ability, and reinforcement.

• Awareness: The first step would be to raise public awareness of the need for change and its justifications. I would interact with workers at all levels and be transparent about the difficulties the business is having, the consequences of the rocket launch failure, and the need for change. I would communicate the value of adjusting to market conditions and encouraging a more resilient and creative organisational culture via open and sympathetic communication.
• Desire: I would include staff members in the change process and value their opinion in order to foster a desire for change. Employees would feel more involved in the change and encouraged to contribute to its success by encouraging a participatory decision-making method. The staff would become even more motivated if the advantages of the suggested changes—such as enhanced productivity, improved teamwork, and possibilities for growth—were made clear (Gratiela, 2014).
• Knowledge: It's crucial to provide workers with the knowledge and abilities they need to adapt to the changes. I would oversee training initiatives to improve technical proficiency, soft skills, and adaptability. The Competing Values Framework, which emphasises the value of empowering staff and creativity to flourish in dynamic industries like space technology, is in line with putting effort into staff development along with further education (Ali, 2021).
• Ability: To improve organisational performance, it's crucial to give employees the tools they need to apply their knowledge. I would promote collaboration across functions and provide a positive work atmosphere. Employing a flatter organisational structure that is in line with an organic model would provide employees greater freedom to decide for themselves and to come up with new ideas, promoting a more flexible and adaptable organisation.
• Reinforcement: To make sure that the intended behaviours and results stick, I would encourage them. Employee appreciation and rewards for their contributions to the company's rehabilitation and expansion would support an innovative and resilient culture. The Herzberg Two-Factor Theory, which emphasises the value of both intrinsic and external motivators in raising employee happiness and engagement, is consistent with this strategy (Cummings, 2015).

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Conclusion

So, overall, it can be concluded from the entire study that, Virgin Orbit's journey through difficulties, staff cutbacks, and liquidation presents a critical moment for the organization's future. The exchange of elements connected with authoritative culture, construction, initiative, and worker inspiration affected the requirement for key changes and modifications. The organization's risk-averse culture and administrative design might have brought obstacles to its capacity to bounce back from the rocket send-off disappointment and the answer actually to advertise elements. To further develop execution and cultivate flexibility, a change in the board approach directed by the ADKAR model is suggested. Making mindfulness about the requirement for change, building wants through participative direction, giving information and abilities, empowering workers to apply their capacities, and supporting the ideal ways of behaving are fundamental stages in driving effective change. Adjusting the change endeavours to applicable authoritative hypotheses, for example, the Contending Values Structure accentuates the significance of enabling representatives and cultivating advancement in the powerful space industry. Virgin Orbit may restore confidence and motivation among the employees by making investments in employee development and offering open, considerate communication. Employees are empowered to innovate and adapt quickly when a flatter organisational structure is implemented, setting the business for success in the future. Strong leadership that conveys a distinct vision for recovery, supports workers, and actively incorporates them in the change process is necessary to address the difficulties and propel change inside the organisation. Employees can be inspired and motivated by leadership that is based on transformational concepts to overcome challenges and find success. Leading by example and supporting the change initiatives as a Senior Manager are crucial in advancing organisational change. Making ensuring the change initiatives are maintained involves regularly monitoring progress, acknowledging accomplishments, and reinforcing desirable behaviours.

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