Bmw Case Study

Much of BMW’s success has derived from cultivating the concept of an entrepreneurial culture.

They have adapted the idea to provide a place where workers feel connected, feel more like a family, and where work is compared to a lifestyle. “From the moment they set foot inside the company, associates experience a sense of place, history, and mission” (Hellriegel & Slocum, 2009, p. 522). The conversation and communication can be formal, but often informal. Decisions are made and ideas are voiced from all members of the team to come up with a great product.All employees work side by side and treated equal.

BMW as a company is based on commitment of their workers and less hierarchical barriers. They believe that hierarchical barriers get in the way of innovation. To remember where they came from and to motivate worker’s performances, they revisit their downfall of 1959 at every orientation for new hires. The company is fast paced, that promotes growth opportunity and career advancements, which mean, the workers have to be flexible and creative. Managers that are willing to achieve excellence are promoted with little time for training.They have to work closely with subordinates and peers to learn information.

Model of leadership “BMW’s management system is flat, flexible, entrepreneurial -and fast. ” It demonstrates how the company adapts to sudden change at a fast paced rate. It also demonstrates how different ideas are accepted within the company, and how working side by side is an effective way to become successful. An example of leadership is the story of 1959, which describes a failure the company experienced and ways they communicated to work together to change the crisis at a fast pace to become on top again.

In 1959, BMW almost went Bankrupt and Mercedes was going to buy them out. However, BMW turned that around, with the help of the Quandt family, and was able to improve within to advance, while competitors had major layoffs. The team member of the company put in a lot of hard work to transform the company and it was well rewarded. This relates to BMW cultures because they came together with creative ideas as a family, adapted well to make changes for success.

High job satisfaction Employees derive high job satisfaction at BMW because of their characteristics (for high achievers).BMW look for certain qualities in its candidates to make sure that they can handle the lifestyle and culture of the company. Having employees that wants to experience high achievement are chosen. Characteristics that the company is looking for in a person are the ability set and choose their own goals, and wants frequent coaching for improvement or appraisal.

Giving feedback motivates the employees, as well as letting them know the do’s and don’ts. Using the characteristics, an employee of BMW feels satisfied and belonging by being able to set their own goals and is able to make effective decisions within the company.Taking responsibility for failure or success from their decision is well accepted. They also achieve job satisfaction from receiving financial incentives. Being able to get a bonus at the end of the year for meeting financial and productivity goals satisfies the workers. They feel that they have done the job to meet mangers expectations and feel that they deserve to be rewarded.

When the employees are satisfied they are willing to make career decisions that may require them to work harder and because they know that they will be rewarded they will take the job.In the case, it explained that when new technology is introduced, associates from the BMW factory is placed in temporary housing near the site. They put in long hard working hours from 60 to 140 hours a week. The team members accept not getting paid for overtime instead, accepting the extra production schedule. The case states “the system enables BMW to provide a high level of job security.

” Employees have the ability to work less hours or more because of the flexibility. Attributes of Organizational CreativityInnovative ideas are always encouraged at BMW. Having team members coming together with different ideas and brainstorming together can lead to a success. Creative and innovative styles are what they expect.

“Claussen convinced Krause and others that the unconventional approach wouldn’t just produce a pretty factory but one whose open, airy spaces would improve communications between line workers and managers and create an environment that helps the company build cars better” (Hellriegel & Slocum, 2009, p. 23). After discussing his vision, meeting with others to discuss the details, and with hard work from everyone, the plant opened with great creativity in 2005. The building represented the creativity of a young engineer, Knau, and the Claussens vision of teamwork.

Having the ability to voice an innovative idea, and watching it come to life is what BMW promotes. Inovation and fexibility is important in the BMW family. The company is different from is competitors by creating a car for the customers taste.When creating new cars BMW use the ideas of the new hires because they are fresh within the company and have new ideas. In conclusion BMW is a company with less hierarchical demands and more of a family oriented culture that embraces, promotes, and egage in flexibility and innovation to be successful. They support teams that are made up of egineers, managers, designers, frontline empolyees, etc.

, to make each feel important. BMW recognizes success and give psotive reinforcement for the hard work.