Managing - Leading and Stewardship for BMW - myassignmenthelp

Question: Discuss about theManaging, Leading and Stewardship for BMW. Answer: Introduction This is an essay, which will depict the malpractices of the organization named Volkswagen, which has been in the limelight for their unethical practices and using cheat software. Volkswagen is one of the major organizations in Germany who can be considered as the one of the market. The organization had been facing stiff challenge from rival organization such as BMW and Dailmer (The Globe and Mail 2017). The organization had falsified their result of the emission test by installing cheat devices, which was able to detect when they are tested. These devices could change their performance depending upon that and the organization was able to bypass the tests without any hindrance. This facilitated the organization to meet the emission standards and the organization was able to enter the United States market. The organization was able to push their product in to the United States market due the high budget promotional campaigns, which stated that the Volkswagen is selling cars with lowest emission rates. The EPA investigated and found out that the organization has been using defeat devices in most of the diesel cars they were selling all over the world. The organization had used modifying software in the 3litre engines of all their premium cars, which has affected the most of the cars and the corresponding society (LSE Management 2017). Issues and analysis Volkswagen was able to capture a majority of the market in the industry due to the cheat device they had used. However, as the quality of the product was not up to the market the cars that had been sold were facing of lot if issues and the condition of the cars were deteriorating at a rapid rate. The cars experienced rattles which were mysterious, starting difficulties, poor consumption of fuel, weak acceleration and low power. Thus, the drivers who are driving have lost their faith on their trusted organization and they felt that the organization is degraded the quality of the product they have been doing (Fast Company 2017). The cars that had been affected due to this emission scandal had been sent back to the dealers. The majority of the cars required simple up gradation of their software and the cars having 1.6litre engines required massive changes. Volkswagen is one of the major companies and consisted of brands like Buggati, Lamborghini, Bentley, Porsche, Skoda, SEAT and Audi s o the cheat software that has been installed has affected all these brands. The organization had lost its reputation in the market and had profound impact on the corresponding society and environment. The organization tried to achieve damage control by calling back their shares and gave an apology in the public. The organization had been facing lawsuits and criminal, which has hampered the overall performance of the organization (DISHMAN 2015). The International council on Clean Transportation (ICCT) was able to discover this phenomenon, which means that the program is able to detect the start of the test cycle. The diesel engines have between the fuel efficiency, power and emission levels that are appropriate for the cars. However, Volkswagen deliberately made sure that the validation of the product was done incorrectly. The organization had become the target for most of the regulatory bodies in the multiple countries (Nahavandi 2016). The governing bodies kept on investigating the incident to find out the loopholes in their system and is considered the as act of stupidity as the cost of this cheat quite high. However, the main issue was that a huge amount of nitrogen oxide was emitting form the devices so it hampered the overall eco system of the society. These are green house gases, which include the nitrogen oxide and cause the depletion of the ozone layer in the atmosphere. The organization has been facing billions of lawsuits from all over the world and is going under prosecution for criminal offense. This shows that leadership is one of the major factor for the development and sustainability of the organization (Ehrhart 2015). It is necessary for the leaders to guide their organization in the path of success and it is the responsibility of the leader to decide how the organization can give back to the society. The use the triple bottom line the organization is the way of giving back to the society and the corresponding environment. Thus, transformative leadership is one of the major factors for making changes in the organization and providing them with the appropriate guidance. This case of Volkswagen is against the principles of the organization theory as the decision taken by the top management in the organization is against all the normative theories (Latham 2014). It is the responsibility of the top management to take the accountability for the actions of their organization. However, Volkswagen made an apology and called back all their defective cars but still they had the full intention of the cheating the public. These malpractices in the organization should have stopped by the top management and the y should have focused on providing the society with a good car that can contribute to the society (Schyns and Riggio 2016). Technological advancement and cross culture of the organization are important factor for the change in the leadership patterns. The organizational structure has changed completely for top to bottom, which shows that modern organization work in a different manner. the great leaders are able to convey their message to their employees and avoids any sort of malpractices in the organization. Power and politics is one of the most important aspects of leadership and is related to this incident (Stanley 2016). The right balance in power and politics is required in the leaders so that the interest of the public is kept in mind. The organization tried to gain maximum amount of profit so they were forced to sacrifice the good of the society. Volkswagen gave more priority to the personal goals of the organization so the overall interest of the society is lost. Recommendations and conclusions The organization does not have much option left so hey will have to go for rebranding of their product by changing their current leaders. The organization requires an effective leader who can provide proper guidance and transform the organization in to something completely different. The organization will have to restart the organization under a different brand which could be a viable option. Thus, it can be concluded from the report that Volkswagen lacked in effective leadership and they needed a better leader to provide them with better goals and objectives. However, as it is one of the most reputed organizations in their market segment it can change their polices and can slowly build their organization structure to make sure that they can maintain their sustainability and gain competitive advantage in the market. References DISHMAN, L. 2015. How Volkswagens Company Culture Could Have Led Employees To Cheat | Fast Company. Fast Company. Retrieved 13 October 2017, from https://www.fastcompany.com/3054692/how-volkswagens-company-culture-could-have-led-employees-to-cheat Ehrhart, M.G., 2015. Self-concept, implicit leadership theories, and follower preferences for leadership.Zeitschrift fr Psychologie. Fast Company 2017. How Volkswagens Company Culture Could Have Led Employees To Cheat | Fast Company. Fast Company. Retrieved 13 October 2017, from https://www.fastcompany.com/3054692/how-volkswagens-company-culture-could-have-led-employees-to-cheat Latham, J.R., 2014. Leadership for quality and innovation: Challenges, theories, and a framework for future research.Quality Management Journal, 21 (1),5. LSE Management. 2017. Volkswagen: the need to enforce ethical corporate behaviour. LSE Management. Retrieved 13 October 2017, from https://blogs.lse.ac.uk/management/2016/03/21/volkswagen-the-need-to-enforce-ethical-corporate-behaviour/ Nahavandi, A., 2016.The Art and Science of Leadership -Global Edition. Pearson. Schyns, B. and Riggio, R.E., 2016. Implicit Leadership Theories.Global Encyclopedia of Public Administration, Public Policy, and Governance, pp.1-7. Stanley, D., 2016. Leadership Theories and Styles.Clinical Leadership in Nursing and Healthcare: Values into Action, pp.25-46. The Globe and Mail. 2017. The Volkswagen emissions scandal: A case study in corporate misbehaviour. The Globe and Mail. Retrieved 13 October 2017, from https://beta.theglobeandmail.com/report-on-business/rob-commentary/the-vw-emissions-scandala-case-study-in-what-not-to-do/article26550100/?ref=https://www.theglobeandmail.com