Volkswagen was once the biggest automaker in the world but with the lack of transparency of its company and from a widening emissions cheating scandal, it is now sinking rapidly. This is one of many ‘real life’ cases that have shown why corporate governance processes must be in place and put into effect in every organization whether it is big or small. Within this essay, numerous concepts and theories from the organizational behaviour course will be examined and related to this real-world problem. The focus of this report will start with the company’s organizational culture, concentrating on the leadership and its learning environment. Then it will shift towards the corporate social responsibilities and business ethics and then followed with
…show more content…
Mr Winterkorn resigned as a direct result of the scandal and was replaced by Matthias Mueller, the former boss of Porsche (Hotten, 2015). In addition, Martin also said: “I am [resigning] in the interests of the company even though I am not aware of any wrongdoing on my part” (Milne, 2015). This action indicated that he did not want to take any responsibility as the CEO in trying to fix this issue. Now, one of the challenges facing the new CEO is the re-establishment of a proper culture within the organization and finding a fix for all of those cars with the “defeat device”. Another factor of the carmaker’s crisis was that Martin Winterkorn was a tough boss who despises failure. He exhibited a lot of pressure on managers, which was unusual (CNBC, 2015). It is important for companies to accept failures, as it is the growing process of becoming better at what you do. By accepting failures, it will benefit both the company and employees and it will develop a culture that promotes learning. It will also support employees in their personal development for further …show more content…
It will be hard for Volkswagen to regain the trust of many, who have invested and put their trust into their company. Within this report, contemporary issues relevant to organisational behaviour were identified and supported with claims provided by various sources. Through this report many suggestions can also be found as to how or what Volkswagen could do to improve their current situation. Some of the suggested ideas are as follow. Firstly, changing its organizational culture into a culture that promotes learning and which allows contributions from different individuals to challenge decisions within the organization. Secondly, verifying that its corporate social responsibilities are being exercised in every part of the organization, so that its integrity cannot be questioned. Last but not least, to prevent groupthink from influencing decision making in the organization, they should encourage dissenting opinion to help with constructing strong collective decisions. With the application of those changes, Volkswagen could someday repair its reputation and regain the trust of the
Mr Winterkorn resigned as a direct result of the scandal and was replaced by Matthias Mueller, the former boss of Porsche (Hotten, 2015). In addition, Martin also said: “I am [resigning] in the interests of the company even though I am not aware of any wrongdoing on my part” (Milne, 2015). This action indicated that he did not want to take any responsibility as the CEO in trying to fix this issue. Now, one of the challenges facing the new CEO is the re-establishment of a proper culture within the organization and finding a fix for all of those cars with the “defeat device”. Another factor of the carmaker’s crisis was that Martin Winterkorn was a tough boss who despises failure. He exhibited a lot of pressure on managers, which was unusual (CNBC, 2015). It is important for companies to accept failures, as it is the growing process of becoming better at what you do. By accepting failures, it will benefit both the company and employees and it will develop a culture that promotes learning. It will also support employees in their personal development for further …show more content…
It will be hard for Volkswagen to regain the trust of many, who have invested and put their trust into their company. Within this report, contemporary issues relevant to organisational behaviour were identified and supported with claims provided by various sources. Through this report many suggestions can also be found as to how or what Volkswagen could do to improve their current situation. Some of the suggested ideas are as follow. Firstly, changing its organizational culture into a culture that promotes learning and which allows contributions from different individuals to challenge decisions within the organization. Secondly, verifying that its corporate social responsibilities are being exercised in every part of the organization, so that its integrity cannot be questioned. Last but not least, to prevent groupthink from influencing decision making in the organization, they should encourage dissenting opinion to help with constructing strong collective decisions. With the application of those changes, Volkswagen could someday repair its reputation and regain the trust of the