Sir Richard Branson, Chairman, Virgin Group, Ltd. Case Study

Sir Richard Branson, Chairman, Virgin Group, Ltd. Case Study

Introduction

This paper will be discussing the leadership style of Richard Branson and will be providing arguments for his personality and the combination of styles that he can have in order to take his team globally. For a leader his/her leadership style is very important in order to achieve success.

Contingency and Situational Leadership

Richard Branson possesses good leader-member relations and treats his employees with due respect, like his “family”, even to the extent of inviting junior crew to his home for parties (Dearlove 2007). He invites employees to give feedback and contribute ideas. Virgin's task structure is generally low as Branson gives his employees the freedom and initiative to be creative. There is no fixed procedure in which how things should be done (Dearlove 2007). His organization operates on a flat, non-hierarchical structure (NCE 2009), made of clusters of companies that operate independently and given flexibility to run without much interference (Dearlove 2007). Position power - he proves to be a dominant thinker, and usually makes first hand decisions himself (NCE 2009). Looking at Fielder's contingency theory, he belongs to being the intermediate style leader, who is equally task-motivated and socio-independent (Durbin Dalglish Miller 2006).

Branson is considered a prospector, and possesses strong contingency and situational leadership skills. He is always looking out for and takes every opportunity to venture into new viable businesses. He is also prompt in managing situations and is a high risk-taker (Dearlove 2007).His willingness to take up joint ventures and partnerships with established companies has allowed Virgin to enter into complex markets without the need to start an organization from scratch, hence eliminating unnecessary costs associated with new start-ups (Dearlove 2007). For instance, Virgin's 50:50 joint-venture with Norwich Union, United Kingdom's leading financial services company, enabled Virgin to enter into the financial market easily (Dearlove 2007).Branson has proved himself to be a good leader in driving his path goal approach towards leadership, always setting a direction for others to follow, leading to success. Based on the characteristics of group members and the demands of the task, head opts different leadership behaviors to suit the two elements of situation (Durbin Dalglish Miller 2006).

The Hersey Blanchard situational leadership model indicates Branson being flexible in considering how he should lead based on the task's nature. In seeking new business opportunities, he usually adopts the directive behavior, knowing the required tasks and how to perform them. He sets the direction, explain decisions and provide opportunity for clarification. Participation is allowed for employees to share ideas and facilitate in decision making (Dearlove 2007). Upon success of a business venture, Branson places trusts in his staff and their capability to do work and empowers them with full autonomy (NCE 2009).Another directive example was his stand in the “dirty tricks affair”. Branson was ruthless in refuting the allegations made by British Airways (BA), accusing him of making allegations against BA to create “publicity for Branson's airline” in the “dirty ...