Leadership Framework Of Volkswagen Essay

Questions:

1.Discuss about the various leadership framework in light of Volkswagen.
2.Discuss about the DAS Problem.
3.As chief executive of the Organisation, how to engage with the dilemmas and paradoxes.
4.Discuss about the critical generic factors any senior executive team would have to Consider.

Answers:

Introduction

1.The report will discuss in detail various leadership framework in light of Volkswagen. The company recently came in picture for cheating emission test and the scandals questioned many kinds of practices. It further has also described how the CEO of the company completely oversaw the culture in which challenging the decisions and speaking up was de-motivated.

This is based on examining and offering the attractive and the safe environmental sound vehicles that could easily be able to compete with the higher standards in the respective classes. The management of the culture and the collaboration is mainly for the integral component of the corporate culture, providing a frame of reference with the guide for the decision-making process. The code of conduct is important for the management culture and collaboration. Here, the major responsibility is to work towards the development, where CEO is producing the better cars with the very low emissions under some strict conditions.

PESTEL – Volkswagen

  1. Political: the company has faced a lot of political challenges over a period of time since the company is not present in more than hundred and fifty countries.
  2. Economic: the automobile industry is an important industry that helps in developing any country since it helps in contributing in the present national income of the country.[2]
  3. Social: society plays an important role in the growth of the automobile industry and a company like Volkswagen impact the society as well in which it functions. [3]
  4. Technological: technology is a heart of the car manufacturing industry and the company like Volkswagen is among those organizations that have also believed in having the best technology in car manufacturing.
  5. Environmental: the car manufacturing industry makes a huge impact on the environment of the country and it also impacts the growth of the industry. [4]
  6. Legal: it is crucial for the automobile industry to follow the legal needs of a country and for a company like Volkswagen it is a challenge since the number of countries in which it operate are huge and legal needs for every country is different.

Force field analysis – Volkswagen

The CEO should focus on the functioning with driving the changes where the internal drivers include the outdated machinery with the declining of the team morale. It also includes the need to increase the profitability and working on training the staff. Along with this, there is a possibility to focus on the management of the change in the workplace with the use of the assigning actions to the differently set and required activities. [5] The CEO should also focus on the technologies which reflects the new productivity.[6] The forces for the change are the operating environment, change in the demographic trends and the technology. The forces which are against the change are the fears of the competitors, the other commitments to the other partner organisations.

The responsibility in the organisations is mainly through the push responsibility with the organisational hierarchy and the management of the cog in the machine syndrome. The role fulfilment with the product of the context is important for proper organisation culture along with hitting the sales goals. The leadership is also based on the engagement of the employees to work towards the better outcome.

2.To handle the DAS problem, there have been different conferences which relates to handling the Environmental Protection Agency (EPA) which has been accused with the cheating emission tests. [7] EPA has been able to find about the defeat device or the software that was installed. Along with this, the scandal was also able to raise the awareness of the high level of pollution that is being emitted by the cars. The wide range of the car makers are likely finding it legal to exceed the limitation of the pollution. Volkswagen works on the ethical analysis with the observed deception, corporate governance and the corporate culture. The CSR holds the responsibility for the trust of the customers, and the public, with easy manipulation of regulators.[8]

The leadership approach using a range of the models and frameworks

Kaleidoscope:

the theory is actually developed by Hope Hailer and Balogun and called as Change Kaleidoscope theory. The theory mainly aims on three things which are: -

After the results, CEO Volkswagen need to focus on the different perspectives for the handling of the scandals in the automobile sector. It is important to focus on the management, organization and the setting of the proper sectors for the internal and the external stakeholders. This is not involved in the technology based fraud rather they are for the labor union representatives, where one of the managers is involved with the collection to the politicians. Hence, a proper communication is important for the CSR which will be able to interpret the sustainability and measure the corporate social responsibility performance. The managerial actions are attended with the disclosed documents. The media coverage and the scandals are concerning the involvement of the buyer, competitor or the employer. The understanding is about how the local disclosure works with the different functions which relate to the local stakeholder interests.[9]

Mc Kinsey 7S

Hard elements are strategy, structure and systems. Soft elements are shared values, skills, style and staff. The system should be able to work on managing the relationship with the effective corporate governance control. The ethics is also based on the embeddedness of ethics in the organizational policies and control. The research is based on the regulations and how the compliance work, interpret and struggle with the management to implement the regulations. The staff and the reputation is also focusing on the reactions and processes that are based on handling the operations with the VW scandal considered as a major case for the public scrutiny that increase with affecting the different organizations in the industry.

Kotter’s model – Sense of Urgency framework

The model was proposed by Kotter who happens to a professor at Harvard Business School and is also a founder of a firm called Kotter International. [10] As per the case study of Volkswagen Unethical Practice in Diesel Emission test, there have been investigations about how the emission scandal has been a major deception scandal which leads to the issues related to the concern of globalization and the environmental pollution. The change management will be important for the successful integration and the operations. Create the urgency, include the powerful coalition, create the vision for the change and communicate the vision. This will help in removing restrictions which are based on the automobile functioning and the sport-utility cars. Volkswagen urgency of the work include the ethical approaches with the major impact on the due to the corporate culture of the company.

Rewards (transactional leadership):

Leadership is mainly to enhance the coordination of the people, which will help in improving the communication in between the employees with better understanding. The transactional leadership is chosen in VW which consists of people with right kind of motivation and direct followers mainly with the help of appealing their own self-interest.[11] There are four dimensions to it discussed below:

    1. Contingent rewards: These kinds of leaders always link the goals with the rewards, and also along with clear set of expectation along with important base of resources, establish mutually agreed objectives along with providers of many reward for successful performance.
    2. Active management: these leaders are active part of supervising the work of the subordinates and watch for right kind of changes that covers from standards to rules and also taking corrective actions to save any kind of errors. [12]
    3. Passive management: the leader in transactional form should only interfere when the standards are not rightly met or when the present performance is not according the expectations.
    4. Laissez Faire: the leaders also provide with a culture where the subordinates get many opportunities to take right decisions. The leader himself can abdicate the accountabilities and also avoid taking right decision and this is why the group usually lacks the directions for the same. [13]
    5. Leadership lifecycle: leadership is followed by a lifecycle. Therefore, there comes a time when a leader is born, then there is growth process, maturity stage where the CEO focused on the market maturity rather than competition. In the end, it reaches the legacy stage (which included how VW ignored the warning of the emission test triggering software warnings from the employees) which followed by death. [14]
    6. GROW model: this model is actually an acronym for Goals, Reality, Options and Will and the main highlight are four important steps in the execution of this model. With this, there are efforts which are for the finalization of deals to solve any of the issues of deception the solution also focuses on the automobile industry to advance for the traditional technology. The zero emission cars are able to tighten the opportunity with the cheating done in the emission tests. The awareness, responsibility and the purpose oriented helped in bringing more opportunities to VW.

The solutions are related to the store operations and how the scandal is considered for the international deception. The estimates are about the complicated factors where the deal is to handle the overall customer traffic that has been reduced and work on assisting and dealing with the other utilization factors where the sales workforce is set with the purpose to improve the satisfaction and motivation. The factors are related to the need of the battery in the zero emission cars which is also a high demand of the battery.

objectives.

Leadership styles: following is the detailed discussion of different leadership styles:

    1. Autocratic leadership: this style is based on the boss and leaders hold all kind of responsibility and authority and no consultation is taken from anyone while taking decisions.
    2. Democratic leadership: this style consists of subordinates that are involved in making decision. The leader takes the final accountability of the decision but he is known to delegate the authority to other people as well. [15]
    3. Strategic style: this style is one that consist of a leader who most importantly is the head of the company and this leader is not restricted to those at top level of company.
    4. Transformational leadership this style is all about starting the change process in company, group, oneself and other parts.
    5. Team style: this style consists of the creation of future picture where the organization is heading and what it actually stand for.
    6. Leadership Domains framework: the present time is based on the approach to broaden the current traditional methods for leadership and further forms new kind approach based on complex science. In last ten years, it is important to apply principles of this science on various public organizations like government along with broad range of industries. With the CEO, the implications are related to the failure of the tests, and the other operations with contributors help in developing a framework which permits the managers and executives to see things from new perspective with complex concepts and deal with real world issues and options.[16]
    7. The colors of leadership: It has been seen that VW CEO is able to bring the best with the different leadership colors, where: -
    8. Green: this color represents growth. it is important for the leaders to constantly grow and learn.
    9. Blue: this color identifies with calming and soothing color. There is a time when leaders should be calm, steady and consistent.
    10. Red: this color shows fire and passion. As leaders, it is most important for the leaders bring passion as an outcome to help to work and team must also lead.
    11. Purple: this color is related to creativity and as a leader it is important to be creative and motivate the innovation for the organization.

Figure: Description of the different colors of CEO VW

The outcome from the leadership of change and what does the organisation need now

Volkswagen in the present time needs to make some wise changes and it is crucial for them to put more power in the hand of its local brands like Seat or Skoda in Europe. It is also important to engage more and more people and raise their voices in all the concerns in the company. The offer is about the “buy-back program” where the company will be able to handle the affected vehicles with the suitable pricing with the out of circulation. The forms are set with the combined business profit where the social responsibility and sustainability which makes it to be fuel-efficient and environmental friendly vehicles. [17]

Learning from the case

A culture of the company was the problem since it discouraged the open dialogue and also restricts check and balances that result in cheating and cases of fraud. A culture with high level of standard can accept failure as development based option and on the contrary advantages for organization and workforce. Volkswagen has to consider failure as methods to motivate more communication internally and debate on the problems. The right as well as smart way here is to work at Volkswagen with the passion to solve the issues. [18]However issues like emission issue were stymied by the autocratic style of the CEO who constantly discouraged highlighting the defect.

3.As a CEO, it is important to embrace the learning on continuous basis with high level of constructive destruction which allows the workforce to gain some confidence to at least try new opportunities as well as experiences. This further permit them to evaluate the failures, adjustment and moving forward. It is also critical to keep philosophy into action with right focus on the internal talent into leadership designation by giving formal kind of training and also mentoring to assist employees to improve the overall skills.[19]

4.There is part of the reason here which covers problems and claims them to be basic issues of leadership. It is important to ensure here that the management is aware of everything and accordingly make better decisions and also motivate a debate along with challenges that do not need any bad attitude to happen along with the outcome for the natural level of group dynamics. Data flow and debate can further be stifled because of instinctive aim of the people around leader to change and bring more bad news along with questioning the challenges. However, there are still some proofs that suggest that working culture are constantly evolving in a manner in which such issues become more and more crucial. Volkswagen needs to work on building the reputation of the company with the good value to work on the legal, moral and the social responsible manner. The consumers need to focus on the products with the lost trust. The company has been found to be damaged with the strategic functions that lead to the long-term perspective to achieve the organisation goals and meeting the interest of the stakeholder. Volkswagen need to focus on working over the practical and the legal issues where the demonstrations are about the deceptive conduct. With this, one need to make sure of the government regulators with the emission of the exhaust systems, with the state-of-the-art, and the environmental technology.

Conclusion

It is important to focus on any of the unethical scandal with the setup of the business culture. The compliance is based on working over the different approaches where there is a need to improve the moral rules with the value based practices. In other words, it is crucial to cultivate the culture that motivates more and more learning. This happens to include the will to motivate failure in the name of development also support the employees in their career development. The emissions and the pollution is a significant concern and need to be dealt with providing an offering of better technology and development programs. Therefore, it further stays relatively forgotten and rarely mentions in capability framework of leadership.

References

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Fabbio, P., 2017. “Dieselgate” and Consumer Law: Repercussions of the Volkswagen scandal in Italy. Journal of European Consumer and Market Law, 6(2), pp.94-96

Shapiro, J.P. and Stefkovich, J.A., 2016. Ethical leadership and decision making in education: Applying theoretical perspectives to complex dilemmas. Routledge.

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