Management and leadership – A Case Study of Volkswagen group 第一部分

Table of Contents

Executive Summary

Referential terms

Information Collection

Introduction

Company Analysis and Recommendations

Diversity at the work place

Diversification

Management and leadership

Leadership skills

Management goals

Organisational goals

Conclusions

References

 

Executive Summary

This report is written in the view of two causes of the recent emission scandal by the Volkswagen group . The first problem the report looks at is the lack of diversity in the operation of the company (Bryant, 2015), while the second has to do with the unfavourable business climate that inhibited business in the firm (Cremer & Bergin, 2015; Schafer, 2015). This is attributed to a lack of  in-depth leadership skills as well as unrealistic goal setting activities in management.

The researcher goes ahead to recommend a number of methods that management can use to turn around the situation which includes an increase in the diversity awareness in the firm by the use of a more dynamic communication system. This according to the researcher can also be reinforced with the use of an extended scope and time frame in a monitoring program. In addition, the training on influencing styles and feedback platform would be necessary for the    firm amongst the employees (Kumra and Manfredi, 2012).

On management, the researcher advices a situation where technical skills should over-shadow interpersonal skills in running the firm to strengthen outcomes. In training the management team and equipping them with ‘emotional skills’ such as self-awareness among other social skills, improvement is expected (Goleman, 2004, p.82).

The researcher notes a number of important actions taken in the company but notes that for the company to completely recover from its current situation, management needs to do a lot more.

 

Referential terms

The report is keen on the diversity management and leadership at the Volkswagen group. It there lays out a number of available options for the firm.

The report aims at giving viable recommendations on the practical application of other skills in the management of the Volkswagen group. This is aimed at raising the levels of competitiveness of the firm while at the same time bettering its efficiency through a better management and satisfied employees.

 

Information collection

The report is purely based on publicly available data such as company publications, media resources and the company’s website content. Other additional sources used include scientific databases.

 

Introduction

Volkswagen has for many years been a top leader in the motor industry with a starring performance for a long time. However, in relation to the recent emission scandal, a number of weaknesses in its leadership and operational structure has emerged. The key components in this light are a lack of diversity I the firm as well as a management team that displays weak leadership characteristics.

The report focuses on analysis of how the Volkswagen group can change the above aspects and make the firm several benefits.

Based on practical examples, the report in the first section analyzes diversity and implementation mechanisms as well as recommends a cure for the crisis. Mainly, the diversity, in this case, leans towards gender diversity as a result of a limitation of date in the public domain. The availed solutions are general however and could be applied across the entire diversity platform.

The second section of the report analyses the firm’s leadership structure and identifies problems as well as gives possible remedies for the same. The conclusion looks at possible future operations that the company could engage in.

 

Company Analysis and recommendations

Diversity at the workplace

In relation to Volkswagen data, (Volkswagen AG, 2015a), the proportion of female employees at the firm falls as one goes up the cooperate ladder. 15.7% of group employees are female, 11.7% females in the management level and a staggering 5.7% in the executive levels. The researcher relates this to glass ceiling that is known to hinder a gender from rising up the cooperate ladder. According to (Kumra and Manfredi, 2012), this situation could reflect the amount of challenges faced by females in organisations.

(Kumra and Manfredi, 2012) notes that diversity is not only a social justice element in the business environment but a source of competitive advantage both at firm level as well as the industry level. In the recent millennium years, the business world and the workplace have embraced a blending of both genders at work which has made it important for employers to give support to the female gender which was previously seen as weaker gender. According to (EC, 2008), the female graduates made an entire 60% of the population. If this was to be translated to the workplace, the female  gender would have an equal chance of success at work as their male counterparts and is applicable in our case; Volkswagen. It’s also important to note that the female gender is a larger consumer in the market (EC, 2008). Taking them as a part of the organisation  would be a bold step in ensuring the firm widens their knowledge needs of the consumer spectrum.

(EC, 2008) finds a positive correlation between women in leadership and performance of businesses. It is also important to note that diversified groups are more efficient in the search for solutions as a result different perspective at issues (Kumra and Manfredi, 2012). It is also argued that a wider diversity bears organisational positive flexibility thus higher productivity. (Mustoe, 2015)      is keen to note that a diversified workforce, the ‘groupthink’ phenomenon is kept at bay. Groupthink is a general team tendency that goes towards conformity and that has been proven to result in higher risk-taking levels as well as low levels of innovation (Brooks, 2015).

A groupthink illustration;

Source: (Brooks, 2015)

Diversification

(Kumra and Manfredi, 2012) Diversification could be implemented through the measure of key performance indicators (KPIs) of a certain element. In this case accommodation of female responsibilities such as mothering could be implemented by, for instance, coming up with mothering centres at the organisation among other accommodative programs.

(Volkswagen AG, 2015b), Volkswagen group has a strategy that aims at ensuring that there is an increase of 30% female workers at entry level. They have initiated child care facilities across their firm as well as female monitor programs headed by female managers (Volkswagen AG, 2014).

Though the firm is on track to achieving full diversity, the current figures are still low. The researcher finds it necessary that management addresses issues such as stereotypical roles and positions in the company and ensure that promotions are purely based on merit and performance. (Kumra and Manfredi, 2012) So as to raise the levels of diversity, diversity-related performance indicators could  also be included in formal performance ratings of employees across the firm to ensure that this influences appraisal and promotions of the female workforce.

Volkswagen could also consider an extension in its mentoring programs for different groups such as the female workforce and women in management. It could be important to note and benchmark empowerment programs of other firms such as IBM which runs a 12-18 months program that integrates professional coaches and enhances women with management skills are done (Kumra and Manfredi, 2012). Other methodologies that could be included would be feedback systems and video analysis. (Musselwhite and Plouffe, 2012) notes that such techniques could be vital in empowering women in leadership by widening their spectrums in influencing styles.

(Kumra and Manfredi, 2012) a program at IBM that would be worth evaluation is on women empowerment where the female workforce is given relationship advice and supportive network built through contacts in leadership both internally and externally. Role models for young leaders ensure a growing generation of female cooperate leaders. It also relaxes the workforce by empowering them to seek advice from their seniors on work-related issues hence promoting organisational performance. The researcher notes a wide gap between the management involvement with lower level employees in Volkswagen. (Kumra and Manfredi, 2012) this  problem could be eliminated by setting up regular events at the company with both internal management as well as professional business coaches to create awareness and increase internal cooperation. On the same note, the Standard Chartered Bank has been quite successful in diversification where they have established a standard global council that oversees gender diversity and related components. The bank’s forum successfully initiates development for female employees and helps prioritise needs and preferences both at the organizational level and the community as well.   Volkswagen group could consider coming up with a similar program for their female workforce.

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