Bmw Culture
BMW’S Dream Factory & Culture
Kevin D. Lowther
Dr. Derek Povah
BUS 520: Leadership and Organizational Behavior
April 27, 2010
1. Describe the culture of BMW. Organizational culture is an idea in the field of Organizational studies. A culture is derived through the individual experiences, attitudes, shared values or common perceptions that are held by each member of an organization. Organizational culture affects such outcomes as productivity, performance, commitment, self confidence, and ethical behavior. Within the auto industry, Bavarian Motor Works, or BMW recently chose to create a paradigm shift from a divisional style of leadership to an organic business. A value system has evolved within the organization that drives passion, which in turn brings forth energy and ownership from leadership to associates of the company. Founded in 1916 by a merger of two companies Rapp Motoren Werke and Gustav Flugmaschinefabrik, its origins as a company specialized in airplane engines, thus creating the inspiration for its current logo, introduced in 1920, the circular design of an aircraft propeller. BMW is a company with a hierarchy, but the decisions are made at the level where capability rests. The decisions that are made in the company are a result of informal networks, along with numerous brain storming sessions. Department managers have the ability to decide without a committee which omits needless bureaucracy. Regardless of your job title all levels work together to create ideas to better the brand and product. 2. Discuss the model of leadership illustrated at BMW and the related impact on the organizational culture. Management at BMW is critical to the ultimate viability of the organization. In 1997, BMW chose to change their leadership style from classic to organic. This change was due in part to the leadership at BMW recognizing the value of the employees and listening to their ideas. The company chose to
Kevin D. Lowther
Dr. Derek Povah
BUS 520: Leadership and Organizational Behavior
April 27, 2010
1. Describe the culture of BMW. Organizational culture is an idea in the field of Organizational studies. A culture is derived through the individual experiences, attitudes, shared values or common perceptions that are held by each member of an organization. Organizational culture affects such outcomes as productivity, performance, commitment, self confidence, and ethical behavior. Within the auto industry, Bavarian Motor Works, or BMW recently chose to create a paradigm shift from a divisional style of leadership to an organic business. A value system has evolved within the organization that drives passion, which in turn brings forth energy and ownership from leadership to associates of the company. Founded in 1916 by a merger of two companies Rapp Motoren Werke and Gustav Flugmaschinefabrik, its origins as a company specialized in airplane engines, thus creating the inspiration for its current logo, introduced in 1920, the circular design of an aircraft propeller. BMW is a company with a hierarchy, but the decisions are made at the level where capability rests. The decisions that are made in the company are a result of informal networks, along with numerous brain storming sessions. Department managers have the ability to decide without a committee which omits needless bureaucracy. Regardless of your job title all levels work together to create ideas to better the brand and product. 2. Discuss the model of leadership illustrated at BMW and the related impact on the organizational culture. Management at BMW is critical to the ultimate viability of the organization. In 1997, BMW chose to change their leadership style from classic to organic. This change was due in part to the leadership at BMW recognizing the value of the employees and listening to their ideas. The company chose to
References: Avery, G. C. (2004). Understanding Leadership. London: Sage. Hellriegel, D., & Slocum, J W, Jr. (2010). BUS520: Organizational 2010 custom edition. (12th ed.)Mason, OH: South-Western Centrage Learning. http://www.allbusiness.com/human-resources/employee-development-teambuilding/800-1html Kasperskaya, Y. (1999) Case Study of the 1999 BMW Group