Organizational Behaviour Report: A Volkswagen Case Study

This report provides a detailed analysis of Volkswagen's organizational behaviour, beginning with an introduction to the company and its history. It examines the company's current position, culture, and the application of the Expanded 7's framework. The report includes an organizational chart, balanced scorecard analysis, SWOT and PESTLE analyses, and a discussion of leadership styles and theories. It addresses major scandals or issues faced by Volkswagen, offering recommendations for change and concluding with a summary of key findings. The report emphasizes the importance of organizational culture, employee relations, and strategic planning in the automotive industry, highlighting Volkswagen's journey and challenges. Furthermore, it discusses the company's efforts to adapt to changing market trends and customer preferences. The analysis provides insights into the company's values, including togetherness, consumer orientation, and efficiency, and how these values shape its corporate culture and strategic direction.

Organizational
Behaviour final

ABSTRACT
Organisational behaviour poses that their most important focus of research would be on
behaviour of individuals in company. It is discussed for the motivation theory in proper manner.
The report is based on Volkswagen, which is founded in year around 1937 and firm is serving
people with Auto-mobile sector. It will discuss about culture environment, expanded 7's, SWOT
and PESTLE of company and various leadership styles as well.

Table of Contents
INTRODUCTION...........................................................................................................................1
Description of Volkswagen.........................................................................................................1
Overview of organisation current position..................................................................................3
Culture of a company..................................................................................................................4
Expanded 7's and its importance.................................................................................................7
Organisational charts...................................................................................................................8
Balanced Scorecard analysis.....................................................................................................12
SWOT analysis of Volkswagen................................................................................................13
PESTLE analysis.......................................................................................................................14
Leadership style and theories used by an association...............................................................14
Major scandals or issues in Volkswagen..................................................................................17
Recommendation for change.....................................................................................................18
CONCLUSION..............................................................................................................................19
REFERENCES..............................................................................................................................20

INTRODUCTION
Organizational behaviour is a term which signifies the study of human nature or
employees performing at workplace in order to maintain the peaceful environment an enterprise.
In fact, investigation of OB is segmented into three ways such as; individuals in an association
(micro level), working team (meso -level), how an organization may behave (macro level)
(Ahrne and Brunsson, 2011). Volkswagen is a German auto-maker which was founded in
around 1937 by German labour front by having its headquartered situated in Wolfsburg.
Basically, it has been observed that in 2016 this association was consider as a largest automotive
company in terms of sales. However, main objective of an organization is to offered best or
qualitative cars to their customers by using various useful or appropriate promotional methods.
Thus, main objective of this assignment is to highlight previous or current status of referred
company at European marketplace. Along with this also throw some lights on genuine reason
behind change and its effect on entire association. Moreover, number of issues or problems are
also encountered by company while running their business due to fluctuation in external or
internal factors is also outlined in this project. Apart from all these information, this report is
mainly design for understanding the influence of following organizational charts before and
after. At the end of this assignment an effective recommendation is also provided by CEO of an
association.
Description of Volkswagen
Volkswagen is a multinational German company whose main objective is to design
beautiful and impressive cars with unique features which make their products different from
others (Bolino and et. al., 2013). Basically, it was established in almost 1937 by German labour
front by locating its headquartered in Wolfsburg and trying to becoming a one of the leading
association in automotive industry. Initially, German people are not having enough money or
can't able to afford luxury cars of current models due to shortage of funds as well as Germanic
society are legging behind. As a result out 50 German family only one of them are able to buy
luxurious cars rest of them are satisfied with motorcycle. But in coming days, due to emergence
various successful companies just like Volkswagen and coming up with new ideas in order to
raise the living standard of German society. Thus, to seek the potential new market few of car
makers stated emerging independent “people car” projects such as; Mercedes 170H , Adler
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autobahn, steyr 55 and various other. Therefore, an effective profile of an organization is
described as follows:-
Name:- Volkswagen
Type of industry:- Automotive sector
Founded:- around 28th may 1937 (completed more than 80 years)
Headquarters:- Wolfsburg, Germany
Name of founder:- German labour front (Deutsche Arbeitshfront, DAF)
Serving area:- Across international boundaries (world wide)
Significant members:- Herbert Diess (Chairperson of the Board of Management of Volkswagen
Passenger Cars brand)
Production:- approximately 6.073 million units (as per annual report of 2016)
Number of employees:- nearly 626,715
Website:- volkswagen.com
(Source:- Sorabjee, 2017)
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Illustration 1: Tata Motors and Volkswagen Group

According to above representation of logo it has been identified that TATA groups and
Volkswagen are combined together for expanding their business across international boundaries
in order to gain maximum benefits (Chiaburu and et. al., 2011). Along with this as per above
tabular information it has been observed that Volkswagen group is a very large organization by
having number of employees working under this.
Consequently, Volkswagen was first exhibited and sold-out in united states in around
1949. Thus while entering into a U.S market, this organization may briefly sold as a victory
wagen and Volkswagen of America was formulated in almost April 1955 in order to increase
their sales or services at American marketplace. However, day-by-day sales of an association get
increase by extended their car projects in various countries and coming up with innovative ideas
to seek the attention of millions of clients. Along with this, directors of company also trying to
design numerous of assignments at different marketplace for gaining the attention of domestic as
well as foreign clients (Coghlan and Brannick, 2014). Instead of all this, Volkswagen also
implemented number of change in their company by considering recent choice or preferences of
customers and tries to manufacture cars with new trends.
Overview of organisation current position
It has been observed that Volkswagen is expanded across international boundaries in
order to generate maximum revenue by facilitating domestic as well as foreign clients. In fact, it
is not easy to manage or handled a large enterprise due to emergence of number of competitors.
Along with this, regular fluctuations in micro and macro factors have a greater impact on success
or development of an enterprise. However, according to annual report of 2016 Volkswagen is a
growing rapidly by removing their success barriers and increasing their sales with the use of
various modes of advertisement (Dewettinck and van Ameijde, 2011). Thus, their revenue
increases by around 217.3 billion EUR and having famous subsidiaries such as ; Audi, Skoda
auto, Porsche and so on. Apart from this, their market shares also get maximized due to attentive
nature of overall staff members as well as CEO of an organization.
According to survey report, selected association have implemented numerous of
modification in their current products or services due to emergence of recent trends as well as
change in customer choice or preferences. Additionally, modernization of world also enforce
director of an enterprise towards alternation in their recent cars to compete with their rivalries
which are available at European marketplace. Thus, it has been understood that currently
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Volkswagen are consider as a new global sales leader in automotive industry because of their
high productive and succeeded in satisfying their customers of different marketplace.
(Source:- Pare, 2012)
According to above representation it has been identified that in U.S market market share
of Volkswagen increases day by day due to maximization in customers demand because of their
products features or services (Friston, 2010). In fact, America is a well educated and developed
country because of members living there are standardized with impressive life styles.
Instead of this, it has been summarised that CEO of an organization have implemented
number of alteration or reformation in their existing policies by accumulating necessary
information in order to capture attention of customers as well as succeeded in gaining their trust
also. Therefore, lots of improvement is done by managerial team of a company and efforts to
become a leading association in automotive industry.
Culture of a company
As a CEO of an association it has been observed that from last 25 years Volkswagen is a
part of specific group which was seems as a leading association in auto-maker industry because
of their different organizational culture, norms, values etc (Hilyard and Cunningham, 2012). In
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Illustration 2: Volkswagen market share

fact their main objective is to offered splendid quality of cars or impressive vehicles by
satisfying customers desires or demand. Thus, it has been identified that one of the most
indispensable pillar of Volkswagen is its human resource or a team of large number of
employees due to which they get succeeded in attaining their set objective or targets. Around
10000 labours are working under this enterprise including specialist persons, trainees and interns
in order to live their life comfortably. Along with this, major objective of employees is to learn
something new or innovative by gaining experiencing and working under experience members
(Horner and Swarbrooke, 2016).
Moreover, their leaders are also skilled or talented by having capability of dealing with
various difficult circumstances. In fact they are ensuring that entire staff members may
accomplish their work on regular basis without delaying it.
(Source:- Core Value, 2016)
According to above graphical presentation it is understood that vision of Volkswagen is
to become a leading company of automotive sector at European marketplace by following
appropriate culture, norms, policies, strategies, rules and regulation (Hunter and et. al.,2013).
Thus, this above core values shows that this organization believes in work in a harmony by
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Illustration 3: Core Value

maintaining a positive relation with their employees, shareholde4rs, customers and various
other important components.
Apart from above core values, sever other most respected values of Volkswagen are
described as follows:- Togetherness:- First and foremost policy of referred association is that they all believe
in working in a team and understand the power of togetherness which resulted in
completion of specific task in a minimum duration. Thus , this factors shows that
managers of Volkswagen always trying to maintain cooperation among staff members
by creating a mutual understanding between supervisor and subordinates (Huntingford,
2012). Consumer oriented:- As per this element, it has been understood that they believe in
satisfying needs or demand of customers in a given time frame. It means they give full
attention of their clients and try to design their vehicles as per their choice or
preferences. Genuine:- Members or employees of Volkswagen are always honest towards their
products or services without cheating with their customers. Along with this also tries to
maintain long term relations with clients by gaining trust or loyalty. Mindful:- Director of an enterprise use their minds while producing goods and during
designing process. It means, before manufacturing any new car or items managerial
team definitely consider all the necessary elements which affects sale of a product. Courageous:- They are very confident while introducing their goods or services across
international boundaries.
 Efficient:- Employees are skilled or committed towards their assigned task or activities.
Hence, it has been analysed that corporate culture of Volkswagen changes as per
situation and from last decades they believe in equality amongst staff members (Jin and Costa,
2010). In fact, in recent time period, management team including board of directors as well as
employees are discussing together in order to create something new or modern. It means they are
focussing on implementing advanced technology by increasing the responsibilities of their
employees.
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Expanded 7's and its importance
The 7's framework is also known as VBM (Value based management) which help to
organise a firm in effective mannerism. Therefore such 7's together as factors determine and tell
how the corporation operates in right context. Hence, they are as follows:
Shared values: This part of 7's is that point where all the other steps are interconnected
with this value. Shared values means as what for organisation is there in market and what are
those things in which firm believes to work on. Moreover, it is normally based on entity's central
beliefs and the attitude Volkswagen is having in accomplishing their goal and objective.
Strategy: Volkswagen makes many strategy to perform in right way and thus strategy
and decision includes various things like different scare resources which has to be allocated by
company as (Environment, competitors and customers) all such criteria help firm to attain their
identified goal and objective.
Structure: This has to be opted in correct format as this help in getting effective working
in organisation. Although it is known as whole organisation unites themselves with each other
like functional divisions (top to down format), networking and centralization etc. Volkswagen
has to choose the right structure so that work or task can be cone in proper manner.
System: Different procedure and policy are there which act as base for characterizing
that how the task and work is important for company like (hiring, performance appraisal and
financial system etc.) which make firm to complete their task on time.
Staff: It is required to have number of staff should be available with company so that
effective working can be done and there are various personnel who is having a different nature
and culture and according to such, Volkswagen has to work and allocate work so that timely task
can be completed and entity can accomplish their goal and objective.
Style: In organisation there are various people who is having a different culture and
nature as organisation has to choose that culture of style which does not harm any employee in
company. Although, it is also required to see how managers behave in management style and in
attaining target and aim of firm.
Skill: In Volkswagen various people work according to their capability and skill. Hence,
entity has to develop the motivation level in them so that they can increase their productivity and
performance level in organisation which will directly help Volkswagen to accomplish their
future targets. Core competence should be strong of workers in firm.
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Organisational charts
An association chart is a diagrammatic representation which highlight an effective
structure of Volkswagen and relationship as well as relative ranks or position of members
performing at workplace. In fact, it is also utilized by company in order to show connection of
one department to another and outlined roles or responsibilities of overall staff members
available at workstation. Thus, organisational chart is very much indispensable in every
enterprise either small or large because it is beneficial or effective in accomplishing task in a
defined period (Lancaster and et. al., 2013). Therefore, relations which is determined by
graphical representation are ; managers to sub-superiors, directors to managerial team,
employees to employers, chief executive to several departments and so on. Moreover, when an
enterprise chart extended too large then it may classified into various smaller sub charts in order
to highlight roles of separate sections. Hence, various types of organization structure are defined
as follows:-
 Hierarchical.
 Matrix.
 Horizontal.
As a CEO of Volkswagen it is essential to classified work into different sections for
completion of work in a minimum time frame by considering relevant facts or figures. Basically,
it is identified that splitting of work is very much beneficial for company in various ways that is
highlighted as follows:-
 Completion of work in a defined time period.
 Create healthy relations between employees and employers.
 Maintain the healthy environment of an association.
 Attainment of enterprise goals as soon as possible.
Above components helps in understanding the roles of employees as per their
specialised. Organizational charts is beneficial for Volkswagen in various manner that is defined
as under:- Proper designing:- First and foremost advantageous of using organisational chart is to
create an effective structure to meet the set targets of an association in a defined time
period (Miller and Heather, 2013).
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 Assisting employees:- According to this element, charts also helps in showing roles or
responsibilities as well as job role of staff members performing at workplace as per this
specialisation. Thus, if every individuals get aware about their obligations towards
enterprise then it automatically encourage them towards their personal or occupational
goals by assisting corrective path. Classification of work:- Structure of a company also segregated work in between
different departments for proper functioning of an organization. It means, if business
activities are distributed between whole staff members then workload may get minimized
from one person. Highlight business relations:- Organisational charts is also highlight positive relations
between employees or employers, managers to directors and various others (Parker and
Collins, 2010). Identification of workload:- One of the major advantages of chart is that it shows actual
work pressure upon employees or labours with the help of effective structure. Minimization of losses:- If an association succeeded in assigning task to employees as
per their qualification, skills and specialisation due to which they get succeeded in
accomplishing allotted work in a minimum duration. As a result, maximum profit is
earned by minimizing losses. Enhancement of employee performance:- Presentation of employees automatically get
enhanced by designing proper functioning of an association. Coordination between employees:- Cooperation amongst workers are also maintained by
managing entire work in an efficient manner. Maintain environment of an association:- If employees coordinated between each other
then it creates a healthy relations between which resulted in creation of peaceful
surrounding of an enterprise.
 Assessment of budgets:- Charts of a company is also useful in analysing the budgetary
system of an enterprise by estimating future or current expenditure at workplace by
considering relevant facts or figures (Piaget, 2013).
Thus, above elements shows that organizational structure shows an effective plans or
policies which is followed by entire association to attain their similar objectives or goals. Hence,
managers of Volkswagen going to distribute their commercial activities into various department
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