Management and leadership – A Case Study of Volkswagen group 第二部分

Management and leadership – A Case Study of Volkswagen group 第二部分

Management and leadership

Leadership skills

Some management researchers have claimed that German managers are yet to synchronise with the global leadership styles, where they are viewed as being highly demanding and lacking in tolerance and inspiration (Richardson   et al., 2014).  Researchers claim that Germans are characterised by low humane levels and relatively high levels of task-orientation (Richardson  et al., 2014).   Backed up by a masculinity mentality in the German culture, this translates to high levels of assertiveness, toughness and competitiveness at the workplace (Deresky, 2014).  With Volkswagen group location being in Germany, it could be argued that among these characteristics could be existing in the company’s management. It would be vital for the company to rethink its management styles and align them with the global fast-evolving management styles that consider a leadership characteristic.

 

Management goals

An interview in 2015 involving the automobile industry expert Ferdinand Dudenhoeffer, had the expert describe the former CEO at Volkswagen, Martin Winterkorn  as averse in power delegation and highly exposed to micromanagement (Rief, 2015). Additional sources (Schäfer, 2015; Cremer and Bergin, 2015), claim that employees at the Volkswagen group have previously stepped out to describe the culture of the firm as a fearful one where there is no freedom to speak out about organisational processes as well as lots of pressure to deliver. It was claimed that the former CEO was intolerant of failure of any kind, unsympathetic as well as highly capable of anger outbursts (Schäfer, 2015).  It is asserted that in its previous selection practices of coming up with suitable top management members the company valued technical know-how above leadership skills which explain the claims of the workforce over the  former CEO (Hucko, Kroger & Stockburger, 2015). Though technical expertise is basic in a leader, it is equally important that leaders display leadership characteristics.

From this analysis, the researcher recommends that the firm checks the emotional intelligence levels of their potential managers since it is vital for team performance (Goleman, 2004, p.84). Emotional intelligence can be measured at interview level through edgy questioning. According to (Goleman, 2004, p.84), the components of this element include self-regulation, empathy, motivation, social skills and self-awareness which are characteristics of a good leader.  Emotional intelligence can be trained. The skills could, therefore, be offered to the company leaders through   trainings to enhance the working environment and increase management’s level of leadership skills.

 

A break-down of emotional intelligence

Component	Example	Benefits
Self-regulation	ü  Avoids outbursts ü  Analyses problems and develops solutions.	ü  Creates conducive organisational environment ü  Problems are openly conveyed. ü  Viewed as reasonable. ü  Creates trust. ü  Raises productivity levels and employee satisfaction.
Empathy	Reasonably relates to stakeholders.	Enables quality and relevant decision-making.
Motivation	Seeks to positively change mindsets.	ü  Positively impacts workforce. ü  Positively impacts productivity and performance.
Social skills	Effective at creating relationships and networks.	ü  Engaging and persuasive ü  Good at causing change.

 

Source: (Goleman, 2004)

In another research, (Goleman, 2000), a survey at Google dabbed ‘Project Oxygen’ found a preference of interpersonal skills over manager technical know-how. The project analysed employee surveys, performance reviews and interview data which include experience and academic background. It was found that of the 10 attributes analysed, technical know-how came last giving an indication that it was the last concern of the workforce.   It was noted that the workforce prioritised managers who were approachable and capable of solving their issues in the workplace rather than technically  experienced ones. This suggests that a leader’s social skill is directly related to performance and satisfaction of his workforce. By taking up this dimension, Volkswagen group would improve the managements’ set of skills.

 

Organizational goals

(Ordonez et al., 2009, p.6) states that goal setting was not monitored and realistic  is likely to bring a cooperation into a situation of a narrow focus contributing to the neglect of important basics, rising unethical practices, hindering of constructive learning,  crooked risk prioritisation, falling motivation levels as well as a run-down on an organisational culture. Research indicates that goals can result in a major start-up when they do not fulfil basic requirements of the real operational situation such as a time schedule, achievability and realistic    (Ordonez et al., 2009).

This revelation explains the reason as to why Volkswagen workforce found it necessary cheating in the CO2 emission levels by installing defective devices in their products. Researchers find this as a result of the ‘strategy 2018’ goal that aims at ‘selling out over 10 million vehicles a year while recouping above average section of growth in key growth markets’ while at the same time bring down CO2 emissions by 30%in 3 years (Volkswagen AG, 2015c, p.1). This goal is cited by market analysts as too ambitious. As a result of this scandal, Volkswagen current CEO Matthias Muller has seen to the revision of this goal into ‘Strategy 2025’ citing that the firm focused highly on quantity neglecting the quality factor. The revision stirs the firm into the right direction giving it a wide spectrum of their goals. It, however, could be necessary to revise this and other similar goal and lengthening their achievement time schedule to allow efficiency and achievability.

The firm is however not the only victim of untamable goals, this has been seen in other motor manufacturers such as Ford where vehicles reportedly caught fire due to engineering errors (Ordonez et al., 2009).

Conclusions

In relation to diversity, the company appointed Christine Hohmann-Dennhard as the first ever female board member at Volkswagen and also the head of legal affairs and integrity issues. The company has also implemented and taken up an open culture with more interactive leadership elements. Though the motor hero still has a long way to go in terms of culture and leadership, it has made notable steps towards transformation. The researcher views that a long-term transformation will ensure diversity, enduring leadership as well as a stable organisational culture which is a huge step towards recovery.

 

References

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Unconscious Mind to Improve Leadership’, The Journal for Quality and Participation,

38 (3), pp. 18-22.

Bryant, C. (2015) Boardroom politics at heart of VW scandal. Available at: http://www.ft.com/cms/s/0/e816cf86-6815-11e5-a57f-

21b88f7d973f.html#axzz3quOKNN36 (Accessed: 8 April 2016).

Cremer, A., Bergin, T. (2015) Fear and respect: VW’s culture under Winterkorn.

Available at: http://www.reuters.com/article/2015/10/10/us-volkswagen-emissionsculture- idUSKCN0S40MT20151010 (Accessed: 8 April 2016).

 

Deresky, H. (2014) International Management – Managing Across Boarders and

Cultures. Eighth edition. Harlow: Pearson

European Commission (EC) (2008) Break gender stereotypes, give talent a chance –

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2016).

 

Hucko, M., Kröger, M., Stockburger, C. (2015) VW-Abgasaffäre: Was wir wissen –

und was noch aufzuklären ist. Available at:

http://www.spiegel.de/wirtschaft/unternehmen/volkswagen-was-wir-in-der-abgasaffaere- bisher-wissen-a-1061883.html (Accessed: 8 April 2016).

 

Kumra, S. and Manfredi, S. (2012) Managing equality and diversity-theory and

practice. Oxford: Oxford University Press.

Musselwhite, C. and Plouffe, T. (2012) ‘What’s Your Influencing Style?’. Available at:

https://hbr.org/2012/01/whats-your-influencing-style/(Accessed 8 April 2016).

Richardson, J., Millage, P., Millage, J., Lane, S. (2014), ‘The effects of culture on

leadership styles in China, Germany and Russia’, Journal of Technology

Management in China, 9(3), pp. 263-2

Rief, N. (2015) Dudenhöffer über den VW Scandal: “Das war kriminell und dumm”.

Available at:

http://diepresse.com/home/wirtschaft/international/4835178/VWSkandal_Das-warkriminell- und-dumm (Accessed: 8 April 2016).

Schäfer, A. (2015) Insider berichtet: Hinter den Kulissen von VW: So trieb

Winterkorn den Autoriesen in den Abgrund. Available at:

http://www.focus.de/finanzen/boerse/cholerische-anfaelle-und-angstkultur-hinterden-

kulissen-von-vw-so-trieb-winterkorn-den-autoriesen-in-denabgrund_id_4979738.html (Accessed: 8 April 2016).

 

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