Corporate Culture Case Study: BMW

Corporate Culture Case Study BMWIntroductionIn the headland of e actu everyy person, emotions, cerebrations and come-at-able actions form a pattern which has developed during his or her childhood. Once rooted in the mind, these patterns must be forgotten before anything natural fecal matter be taught. A common name for these patterns is polish. Culture is important. It is what founds confidence. The concept of culture is broad and abstract but still a crucial burst of every whizz and all(a)s environment and something that can be found anywhere. It takes form in symbols, heroes, rituals and customs. The core, the essence of culture is values. Our sanctioned values ar founded in the beginning of our lives, while as we grow older we endure to focus on consciously learning new customs. The choices we make during this process determine our self-image how we look upon the others.There argon incalculable definitions of the word culture, separately one claiming to be unique. B ut in fact this only goes to show that the concept is far too abstract to be clear defined, Bang states that it signifies what we at every specific moment want it to signify. We see this as the strength of the subject it is what makes it so interesting to study. You can end up anywhere, and there is no right or wrong. Many connect culture with art and theater, but the concept is nowadays far more widespread and can be applied to many an(prenominal) more atomic number 18as, corporations being one of them. A popular and simple definition of the expression embodied culture is made by Deal and KennedyCulture is the way in which we perform something here at ours2The term culture origin whollyy comes from social anthropology. Late nineteenth- and early twentieth-century studies of primitive societies-Eskimo, federation Sea, African, Native American-revealed ways of life that were not only different from the more technologically advanced parts of America and Europe but were lots very different among themselves. The concept of culture was thus coined to represent, in a very broad and holistic sense, the qualities of any specific human multitude that ar passed from one generation to the next. The American Heritage Dictionary defines culture, more formally, as the totally of socially transmitted deportment patterns, arts, beliefs, institutions, and all other products of human work and thought characteristics of a community or population3It is helpful to think that collective culture has two levels, which differ in terms of their visibility and their resistance to counterchange. At the deeper and less app atomic number 18nt level, culture refers to values that are shared by the citizenry in a group and that tend to persist over snip evening when group membership changes. Those notions virtually what is important in life can vary greatly in different companies in some settings people care deeply ab away money, in other about technological innovation or emp loyee well-being. At this level culture can be highly difficult to change, in part because group members are often unaware of many of the values that bind them together.At the more visible level, culture represents the behavior patterns or style of an presidential term that new employees are automatically encouraged to fol first by their fellow employees. We can say, for grammatical case, that people in one group have for divisions been hard workers, those in another are very friendly to strangers, and those in a third always wear very traditionalist clothes. Culture in this sense, is still tough to change, but not nearly as difficult as the level of basic values.Each level of culture has a natural tendency to influence the other. This is perhaps most obvious in terms of shared values influencing a groups behavior-a commitment to nodes, for example, influencing how quickly privates tend to respond to customers complaints. But causality can flow in the other direction too-behav ior and practices can influence values.So, How Do We Define Culture?Culture is a pattern of shared tacit assumptions that was learned by a group as it solved its problems of external adaptation and internal integration, that has worked well enough to be geted valid and, therefore, to be taught to new members as the correct way to distinguish, think, and olfactory propertying relation to those problems.4What originally drives daily behavior is the learned, shared, tacit assumptions on which people understructure their view of reality as it is and as it should be. It results in what is popularly thought of as the way we do things rough here, but even the employees in the organization cannot, without help, reconstruct the underlying assumptions on which their daily behavior rests. They know only that this is the way, and they count on it. Life kick the buckets predictable and meaningful. If you understand those assumptions, it is easy to see how they give way to the kind of be havioral.Three Levels of CultureThe biggest danger in trying to understand culture is to oversimplify it. It is tempting to say that culture is just the way we do things around here, the rites and rituals of our social club, the company climate, the reward system, our basic values and so on. These are all manifestations of the culture, but none is the culture at the level where culture matters. A better way to think about culture is to realize that it exists at several levels and that we must understand and manage the deeper levels. The levels of culture go from the very visible to the very tacit and invisible.5ArtifactsVisible organizational structures (hard to decipher)EspousedValuesStrategies, goals, philosophies (espoused justifications)UnderlyingAssumptions Unconscious, taken for grantedbeliefs, perceptions, thoughts and feeling (ultimate sourceof values and action)Classifying Corporate CultureG.HofstedeHofstede demostrated that there are national and regional cultural group ings that affect the behaviour of organizations.Hofstede identified four characteristics of culture in his study of national influencesPower Distance The degree to which a society expects there to be differences in the levels of power. A high score elicits that there is an expectation that some individuals wield larger amounts of power than others. A low score reflects the view that all people should have equal rights.Uncertainty Avoidance reflects the extent to which a society accepts uncertainty and risk. individualization vs collectivism individualism is contrasted with collectivism, and refers to the extent to which people are expected to stand up for themselves, or alternatively act predominantly as a member of the group or organisation.masculinity vs femininity refers to the value placed on traditionally male or female values. Male values for example include competitiveness, assertiveness, ambition, and the accumulation of wealth and material possessions.Long vs short term orientationDeal and KennedyDeal and Kennedy defined corporate culture as the way things get done around here. They measured organisations in respect ofFeedback quick feedback means an instant response. This could be in monetary terms, but could likewise be seen in other ways, such(prenominal) as the impact of a great save in a soccer match.Risk represents the degree of uncertainty in the organisations activities.Using these parameters, they were able to suggest four classifications of organisational cultureThe Tough Guy Macho Culture. Feedback is quick and the rewards are high. This often applies to fast moving financial activities such as brokerage, but could withal apply to policemen or women, or athletes competing in team diverts. This can be a very stressful culture in which to operate.The Work Hard/ piddle away Hard Culture is characterised by few risks being taken, all with rapid feedback. This is typical in large organisations which strive for high quality customer serv ice. They are often characterised by team meetings, jargon and buzzwords.The Bet your Company Culture, where big stakes decisions are taken, but it may be years before the results are known. Typically, these might involve development or exploration projects, which take years to come to fruition, such as could be expected with oil exploration or aviation.The Process Culture occurs in organisations where there is little or no feedback. People become bogged down with how things are done not with what is to be achieved. This is often associated with bureaucracies. Whilst it is easy to criticise these cultures for being over cautious or bogged down in red tape, they do produce consistent results, which is ideal in, for example, public services.Charles adroitHandy (1985) popularised a method of looking at culture which some scholars have used to link organizational structure to Organizational Culture. He descibesa Power Culture which concentrates power in a few pairs of hands. Control r adiates from the effect like a web. Power Cultures have few rules and little bureaucracy swift decisions can ensue.In a Role Culture, people have clearly delegated authorities deep down a highly defined structure. Typically, these organisations form hierarchical bureaucracies. Power derives from a persons opinion and little scope exists for expert power.By contrast, in a Task Culture, teams form to solve particular problems. Power derives from expertness so long as a team requires expertise. These cultures often feature the multiple reporting lines of a matrix structure.A Person Culture exists where all individuals believe themselves superior to the organisation. Survival can become difficult for such organisations, since the concept of an organisation suggests that a group of like-minded individuals pursue the organisational goals. Some captain partnerships can operate as person cultures, because each partner occupys a peculiar expertise and clientele to the firm.Elements of the corporate cultureThe Paradigm What the organization is about what it does its mission its values.Control Systems The processes in place to monitor what is going on. Role cultures would have vast rule books. There would be more reliance on individualism in a power culture.Organizational Structures Reporting lines, hierarchies, and the way that work flows through the business.Power Structures Who makes the decisions, how widely spread is power, and on what is power base?Symbols These include the logos and designs, but would extend to symbols of power, such as car parking spaces and executive washroomsRituals and Routines perplexity meetings, board reports and so on may become more habitual than necessary.Stories and Myths build up about people and events, and convey a message about what is treasured within the organization.These elements may overlap. Power structures may depend on control systems, which may exploit the very rituals that generate stories.Selecting a CompanyI dec ided to focus my research on the BMW chemical group ,because it is a one of the worlds top automobile manufacturers with long history of succeederful technological achievements and thousands of employees and I believe ,it will be a great example for a supremacyful corporate culture. The company produces cycles and engines, as well and it also own and produces the Mini brand and is the parent company of Rolls-Royce Motor Cars. As one of the great car manufacturers with subsidiaries on each continent and since the automobile industry has been strongly influenced by the social environment, I believe that studying the BMW class corporate culture is an effective means for understanding the corporate cultures of European companies. To present the BMW group corporate culture ,I will analyze how the BMW corporate culture whole shebang and what are its core values.BMW Group OverviewBMW HistoryBMW is an acronym for Bayerische Motoren Werke AG- or, in English, Bavarian Motor Works6. What ever you call it, the German-based company is one of the worlds most respected automakers, historied for crafting luxury cars and SUVs that offer superior levels of driving enjoyment. Founded in Munich, the company began in the early 1910s as an aircraft manufacturer. BMWs circulating(prenominal) logo, designed to represent white propeller blades against a blue sky, reflects these origins its blue-and-white color scheme also references Bavarias blue-and-white checkered flag.It wasnt until 1928 that production began on the first BMW automobile, the Dixi. The car proved tremendously popular, and its success helped the manufacturer weather the Depression. BMWs scoop out-known pre-World War II vehicle was the Type 328 roadster, a supple two-seater that racked up over 120 victories on the motorsport circuit between 1936 and 1940. Postwar BMW cars maintained this tradition, winning several racing, rallying and hill climb victories.The early 1950s maxim the launch of the BMW 501, a roo my, voluptuous sedan that was resplendent with all of the hopefulness of that era. It was shortly followed by the 502 which was power by the worlds first light-alloy V8, foreshadowing BMWs ongoing commitment to developing new technology. The best-selling BMW of that decade was the Isetta, a petite two-seat microcar typically powered by a 12- or 13-horsepower engine. The mid-50s also saw the debut of the limited production and breathtakingly beautiful 507 sports car which had an alloy body and used the 502s V8 for propulsion. In the 1960s, BMW gross revenue strengthened significantly, thanks in part to the immense popularity of the 1500, a sporty family sedan. 7By the 1970s, BMW was establishing itself as a full-fledged car company. It was a pioneer for many emerging technologies, including turbocharging and advanced vehicle electronics. BMW of North America was established at this time, and consumers who coveted both sports and luxury cars became loyal Bimmer owners. The 70s also s aw the birth of BMWs three-tier sport sedan range consisting of the compact 3 serial publication, midsize 5 Series and large 7 Series cars and the creation of its performance M division. Though the 3 Series could be had with four-cylinder power, it was the companys inline-6 engines that developed BMWs reputation for spirited, yet highly refined performance. At decades end, the limited-production, short-lived M1 supercar debuted.Throughout the 1980s, BMW became the unofficial poster car of yuppies, as the brand obviously signified ones financial success as well as a passion for driving. The elegant 6 Series coupe debuted and the latter part of the decade saw the high-performance M division working its magic on various production models.The early 1990s saw BMW replace the 6 Series with the compelling (V12-powered at first) but heavy 8 Series grand touring coupe while later that decade the Z3 roadster bowed. The company also opened its first U.S. manufacturing coiffe in the latter h alf of the 1990s.The 2000s brought a midsize SUV (the X5) as well as a compact SUV (the X3) as BMW joined the hot-selling segment. Since then, BMW has replaced the Z3 with the Z4, introduced the compact 1 Series, produced hybrid versions of a few models and debuted the X6 fastback crossover. The company has also expanded its empire to include Mini and Rolls-Royce and continues to build motorcycles, something it has done since the 1920s.The automakers famous advertising slogan describes each of its vehicles as the ultimate driving machine, and its not mere hyperbole. Over the past couple of decades, BMWs have become the standard for performance and luxury in most of the over $30,000 segments. With family-friendly wagons, shrewd sedans, distinctive coupes, nimble sports cars and spacious SUVs offered, BMWs model roster is diverse. But its luxury vehicles all share a common characteristic the ability to make drivers feel gloriously connected to the road.8The automobile industry in Eur ope9The auto sector is often credited as the engine room of Europe. The European conjunction is the homeland to a competitive and innovative automotive industry that generates activity throughout the economy from materials and parts supply, to RD and manufacturing, to sales and after-sales services. Manufacturers have trained and developed a highly-skilled workforce, producing quality products for home and international markets. Vehicle manufacturing supports over 2 million European jobs with an additional 10 million citizens employed in associated industries. Exports are valued at over 70 one thousand million annually. The automotive industry has also established itself as a partner in sustainability.Technological advances have brought real solutions, driving down harmful emissions from industry products and production sites. Manufacturers have spearheaded significant improvements in vehicle safety and embraced social responsibility goals. Annually, the industry invests 20 billio n in RD, more than any other private sector. Its drive towards sustainable mobility remains an ongoing commitment.BMWS Group Corporate CultureThe BMW Group is one of the worlds booster cable car and motorcycle manufacturers with more than 100,000 employees in over 100 countries.With the brands BMW, MINI and Rolls Royce,BMW operate very successfully in the agiotage segment of the automobile and motorcycle industry.In order to consistently maintain the quality standards, BMW seek employees who possess team spirit and personal initiative, as well as an uncompromising lust to constantly further their knowledge. Because they are convinced that those who cease to improve have already ceased to be be good.High-efficiency culture.It is not only the technical know-how that makes BMW stand out considerably from other companies. In keeping with the quality standards of products, BMW corporate culture is a consistent high-efficiency culture.BMW constantly incite each other employee to become even better, to offer even better products. This is only possible through a pronounced team spirit. Critical reflection and self-critical advancement are only possible within a well-functioning team.Because they approach each other with respect and esteem, the employees have a strong team spirit the decisive prerequisite for success within a team. Satisfied and motivated employees are an invaluable competitive advantage to our company. 10Basic principlesDuring the next decade BMW aim to secure a position as the worlds leading manufacturer of premium automobiles. For this reason all of companys strategies including the corporate culture are conceived on a long-term basis and are constantly target-oriented.BMW deal to utilise new chances and achieve a new level of efficiency,they aspire to create an atmosphere of optimism from which to draw the energy for necessary changes.The following principles of the BMW Group form the basis of this long-term and target-oriented action11Cust omer orientation.Our customers decide whether or not our company is successful. Our customers are at the centre of all of our actions and the results of our actions must be judged from a perspective of their benefit to the customer.High efficiency.We aim to be the best. Each of us has to rise to this challenge, meaning that each employee must be prepared to achieve a high degree of efficiency. We aspire to belong to an elite, but without being arrogant, because it is the company and its products that count the most and zippo else.Responsibility.Each BMW Group employee bears personal responsibility for the success of the company. This also applies within a team, where each individual must be aware of his or her responsibility. In this respect we are fully aware that we all work together in achieving corporate goals. For this reason we also work together in the interests of the company.Effectiveness.Only sustainable and effective results are of benefit to the company. When assessing management, it is only the effect of performance on results that counts.Adaptability.In order to achieve continuous success we must adapt quickly and flexibly to new demands. Therefore, we regard change as a chance and the ability to adapt as the prerequisite for reservation use of this chance.Disagreement.In the search for the best solution everyone has the duty to bring to light any disagreement. The solutions found are then resolutely enforced by all involved.Respect, trust, fair play.We treat one another with respect. Management is based on mutual trust, trust is based on calculability and fairness.Employees.Business enterprises are made by people. Employees are our strongest factor of success. Consequently, personnel decisions belong to the most crucial decisions. cautionary function.Every executive has an exemplary function.Sustainability.We regard sustainability as a unchangeable and positive contribution towards the economic success of the company. This is the basis of our ecologic and social responsibility.Society.We consider awareness of social responsibility an inseparable part of our corporate self-conception.Independence.We secure the BMW Groups entrepreneurial independence through sustainable and profitable growth.Equality of opportunityBMW Group employees work in different countries on different continents. They are as diverse as is usually the case in our globalized world. It goes without saying that all of our employees are treated equally according to their qualifications and granted equal opportunities. So diversity is perfectly normal in our working lives.DiversityThe diversity of the BMWs employees is one of their peculiar(prenominal) strengths. It enhances the companys innovative capability and helps to gain ground in new markets. It broadens the pool of BMWs talents and competencies. Human diversity is therefore a key to the sustainable success of the BMW Group. accordingly diversity is an important issue of the future.Human div ersity also influences the cultural horizon within the company. As a result it becomes constantly broader, providing BMW with new aspects and perspectives.This enables to perceive new needs and trends far earlier and above all to understand them and to live with diversity.Sustainability managementWe have set ourselves the goal of integrating sustainability throughout the intact value chain and its underlying processes creating an added value for the company, the environment and society. Key elements of BMW Groups sustainability management include an environmental radar that is regularly extended to cover additional ecological and social aspects ongoing dialogue with stakeholders the inclusion of sustainability criteria in all decision- qualification processes and a holistic approach to the entire value chain.The BMW Groups basic principles form the foundation of the companys long-term alignment. They establish, among other things, that being a good corporate citizen is an integra l part of how the BMW Group defines itself as a company. Furthermore, sustainability is regarded as making a positive contribution to the companys economic success.According to the Dow Jones Sustainability Indexes, the BMW Group is menstruationly the worlds most sustainable carmaker. The company was named industry leader in these important global sustainability indices for the fifth consecutive year in 2009. Numerous other ratings and awards also confirm the companys lead component part in the field of sustainability. But for the BMW Group this is only the beginning. It is obvious that sustainability is set to contact an even bigger role in defining premium mobility of the future from environmentally-friendly drive trains and resource-friendly production processes to new, sustainable services in the field of individual mobility. In the future, premium will inevitably comprise the concept of sustainability. The manufacturer with the more efficient and resource-friendly production , who offers the most visionary solutions for eco-friendly individual mobility, will have the competitive edge.BMW positionAt the BMW Group, sustainability is not just the responsibility of one particular department. All employees are called upon to implement elements of corporate sustainability in their area of responsibility. Here the members of the Board of Management of BMW AG discuss how their individual divisions define corporate sustainability.The BMW Group and its BMW, MINI and Rolls-Royce brands epitomise joy, passion and success. The aim is to actively shape the future. To achieve this, we are making sustainability an increasingly integral part of our value chain. Sustainability should be the defining principle of how we design our processes and procedures. Our company has been changing its approach over recent years. The revision of the BMW Groups sustainability strategy was the next logical step and an important milestone. But there is still some way to go.Economics12Th e BMWs corporate system Number ONE is creating the best conditions for long-term value creation and sustainability. Our vision is to be the worlds leading provider of premium products and premium services in the automotive industry. As we see it, this also means being a leader in the field of sustainability. From an economic point of view, issues such as compliance, anti-corruption and risk management form the backbone of corporate responsibility.In late 2007, the BMW Group presented its new corporate Strategy Number ONE. The vision To be the leading provider of premium products and premium services for individual mobility. To reach this goal, the company needs to focus consistently on growth and profitability to constantly develop new technologies to guarantee adit to relevant customer groups and, most importantly, to actively shape the future. These key fields of action are the four pillars of Strategy Number ONE.Everything BMW do is based on the twelve basic principles the Boar d of Management defined in Strategy Number ONECustomer orientation The customer and benefit for the customer are at the core group of everything the company does.Peak performance -The company and all its employees aim to be the best.Responsibility Every employee shares the responsibility for the companys success.Effectiveness Only results which have a lasting effect count.Adaptability Flexibility as a crucial prerequisite for success.Dissent As we strive to find the best solution, we are frank with each other.Respect, trust, fairness The basis of successful cooperation.Employees The strongest factor in a companys success.Leading by example Every manager has to be aware that he / she is a role model and should act accordingly.Sustainability Acting sustainably is an element of our corporate responsibility and a contribution to value creation.Society Social responsibility is an integral part of our corporate self-image.Independence Sustained profitable growth secures the co rporate independence of the BMW Group.Based on these principles, the BMW Group has established a focused approach to master the current crisis. Priorities are to secure the companys sound financial footing and its liquidity as well as to develop attractive, trendsetting products. Over the past five years, the company has invested a total of over 21 billion euros in its future, an amount that also reflects the BMW Groups technological expertise and the pace at which innovations are developed.With its corporate Strategy Number ONE, the BMW Group is setting the course for tomorrows dynamic growth. For more detailed information on the financial year and our latest figures please refer to the current Annual Report.Employees-Basic principlesDuring the next decade we aim to secure our position as the worlds leading manufacturer of premium automobiles. For this reason all of our strategies including our corporate culture are conceived on a long-term basis and are constantly target-oriente d.We established this prerequisite when we launched our Strategy Number ONE. The Vision to become the worlds leading provider of premium products and premium services for individual mobility. To this end, the BMW Group concentrates on profitability and sustained value creation. The companys four strategic pillars also include growth, shaping the future and access to technologies and customers.The following principles of the BMW Group form the basis of this long-term and target-oriented action13Customer orientationOur customers decide whether or not our company is successful. Our customers are at the centre of all of our actions and the results of our actions must be judged from a perspective of their benefit to the customer.Peak performanceWe aim to be the best. Each of us has to rise to this challenge, meaning that each employee must be prepared to achieve a high degree of efficiency. We aspire to belong to an elite, but without being arrogant, because it is the company and its pro ducts that count the most and nothing else.ResponsibilityEach BMW Group employee bears personal responsibility for the success of the company. This also applies within a team, where each individual must be aware of his or her responsibility. In this respect we are fully aware that we all work together in achieving corporate goals. For this reason we also work together in the interests of the company.EffectivenessOnly sustainable and effective results are of benefit to the company. When assessing management, it is only the effect of performance on results that counts.AdaptabilityIn order to achieve continuous success we must adapt quickly and flexibly to new demands. Therefore, we regard change as a chance and the ability to adapt as the prerequisite for making use of this chance.DissentIn the search for the best solution everyone has the duty to bring to light any disagreement. The solutions found are then resolutely implemented by all involved.