Question

In: Operations Management

Richard Branson, the CEO and Founder of the Virgin Companies, famously said that employees come first,...

  1. Richard Branson, the CEO and Founder of the Virgin Companies, famously said that employees come first, not customers, rationalizing that when firms take care of their employees, the employees will take care of the clients. This belief fits with one of the Four Types of Corporate Culture. Please tell me which, and why you chose the one that you did.

2. , briefly, the 5 Steps that Manager Take, and offer some details on the 3rd step in the process, Motivate and Communicate.

Solutions

Expert Solution

The belief of Richard Branson fits in with the clan type of corporate culture where the culture is that of looking after the people of the organization like a family focusing more on bringing soft changes and mentoring. clan type of culture is more of a friendly culture with working together and collaborating with each other. The employees more often respond positively to such culture and develop a sense of camaraderie and loyalty towards the organization. This is chosen because Richard Branson clearly demonstrate such type of leadership where he is not authoritative but nudges people to perform by providing them with good work-life balance and incentives.

Motivate and communicate - Motivation is one of the key drivers of performance for an employee. Appreciation of an employee's good work will have a positive impact on his work. It is important for a manager to appreciate and motivate his employees to give their best and do more. Clear communication is a must for efficient performance. Unclear communication often leads to ambiguity and improper results. Therefore it is important to confirm that the message has been received and understood by the employee. Clarity is required to get the work done.


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The founder of warehouse retailer Costco, James Sinegal, once said, ”Paying your employees well is not...
The founder of warehouse retailer Costco, James Sinegal, once said, ”Paying your employees well is not only the right thing to do but it makes for good business.” Costco has offered employees above industrial-average salaries and health benefits. On the other hand, Wal-Mart, the largest retailer in the world, pays its cashiers slightly above minimum wages and declines to offer health insurance to every employee. Can both Costco and Wal-Mart be maximizing shareholder value?
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