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Organisational Behaviour - Porsche Assignment

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Added on  2021-04-16

Organisational Behaviour - Porsche Assignment

   Added on 2021-04-16

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Running head: ORGANISATIONAL BEHAVIOUROrganisational BehaviourName of the StudentName of the UniversityAuthor’s note
Organisational Behaviour - Porsche Assignment_1
ORGANISATIONAL BEHAVIOUR1Introduction The case study deals with one of the most famous feuds in the automobile industry. Onone hand there is a company that has been in the industry for generations and has setbenchmarking management as well as product examples in the market. On the other hand there isa company that is contemporary, has a modern outlook and is successful. The internal conflict inthe Volkswagen Group (VW) was essentially due to the pride factor regarding the individualbrands within the group. There was no unity in the management of the brands, each brand underthe group wanted to behave in their own way. This situation came to be known by the Porsche CEO Karl Frederich and he wanted totake advantage of the situation. Porsche banked upon VW for some of its production work, andthen the company started acquiring stock in VW and ultimately accomplished a controllinginterest. Porsche is a company that is known in the industry for its efficient productionmanagement as well as astute marketing tactics. The company was popular for having strategicmanagement that was directed towards lead and profitable measures. And these are the measurethat Frederich wanted to incorporate in the Volkswagen Group as well. This was opposed by thechairman of VW, Max Lucas. Therefore it can be said that the management style was the cause ofconflict among the companies. The values and principles of the two organisations were differentwhich lead to a conflict of interest. The objectives of the companies were driven by the values of the leaders in the organisation.Where Lucas was focused on innovation and exceptional engineering, alternatively Frederich wasmore focused on exceptional profits.
Organisational Behaviour - Porsche Assignment_2
ORGANISATIONAL BEHAVIOUR2But the plan of The CEO of Porsche did not work and he ended up losing his job whilethe company turned insolvent and the business was sold to VW and the Qatar government. LaterVW completely took over Porsche (Maria-Elena & Laura-Filofteia, 2016). Source of conflict between Porsche and Volkswagen executivesAforementioned the people involved in the situation has been a part of a reputed brandand each of them has separate ways of operation. In between the two organisations executivesthe major differences are in the values and principles of the way they work. These values andprinciples lead to making organisational decisions such as objectives and goals which is differentfor different companies; hence there is a major conflict of issue when Porsche wanted toincorporate their lean production strategy in order to increase the profit of the company in thestrategy of VW. On the other hand Lucas was a man who was focused on engineeringinnovations and customer satisfaction as the aim of the organisation. The difference in thepersonalities of the leaders in the organisation is the source of conflict. The leaders in anorganisation should have collective goals and objectives defining that this goal will help in thereduction of internal conflict and in that way the leaders would also not have separate interests aswell (Maria-Elena & Laura-Filofteia, 2016). Conflict handling styles by Karl Frederich and Max LucasDue to the difference in the basic values and principles among the two executives theconflict handling styles are also different. Karl Frederich approach of conflict handling is driven by logic and data; he wants to cutoff the product and resources of the line of products which are not making profits for the
Organisational Behaviour - Porsche Assignment_3

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