Automobile Industry Strategy

Even then, the unique culture at Volkswagen has made subsequent CEOs to be authoritarianism and this has affected transparency and decision making. Toyota’s Organizational Culture Toyota motor corporation is considered as a universal leader within the automobile industry. Its organizational culture focuses more on responding to the needs of its employees. Hence, the culture at the firm is hinged on maximizing capabilities of human resource in order to drive innovation (Meyer). Besides, supporting its worldwide corporate success has become its point of focus. The firm has put in place an assortment of policies that define approaches that can guarantee quality. As a conventional approach to its organizational culture, Toyota has overcome a sense of secrecy, and instead empowered plants in different destinations in order to facilitate service delivery.

A case in point is that the business unit in north America has been empowered to solve American problems instead of being referred to Japan (Sosnovskikh 443). Considered from the firm’s organizational culture, innovation and growth have become the norm. Therefore, problems can easily be solved, while at the same time allowing for flexibility. The philosophy is to focus on long term thinking, with process indicating the issue of eliminating waste. For problem solving, Toyota desires to enhance learning and improvement. People and partners considers how respect and challenges can guarantee the growth of the firm. Source: (Sosnovskikh) 4Ps and Toyota Leadership Toyota has created a leadership structure that ensures that even the lowest cadre of employees can attain positions of influence.

Hence, an individual who is employed at the firm can learn the job, understand how it is performed and moves to a dedication level, before finally ascending to a position of influence. As a family company, Toyota abided by hierarchical organizational structure, in which it sometimes become difficult for information to flow top down and up down. In a typical case, employees at the bottom are often reluctant to pass information up the chain of leadership due to lack of transparency and fear of victimization (Mozart). In addition, the board of the firm is composed of Japanese, who are considered as insiders. Therefore, in as much as the company tries to empower its staffs, delegation of duties is difficult to achieve.

During the period of expansion during the 1990s, the firm sought to become protective of its information, and this became difficult to share information between employees and management. However, critics consider that the CEO was only responding to a rigid structure that is often the norm within the firm. Although the exit of Martin Winterkorn was considered as paving the way for a much more open leadership style, pundits are yet to find a new way of managing issues at the firm. Organizational Structure Typical of any German company, Volkswagen abides by an organizational structure composed of the management board, which is overseen by the CEO who is tasked with the day to day functioning of the organization. It is noteworthy that the CEO reports to a supervisory board.

The board has the power to sack the management board at will. Apparently, several departments existed within GM. Most importantly was the question of independent manufacturers of GM cars. Such a structure ensured that independent automakers can be able to compete for the manufacture of the cars. On the converse, successive administrators have ensured that GM assumes a more centralized structure where a unified approach has been adopted, and is meant to ensure that a common goal is realized. Source: (Kissinger) A new model of organizational culture has been initiated in destinations such as north America, and this has helped to serve its regional markets effectively. The approach allows the firm to effectively oversee the different needs of its business. Managers of GM who oversee the distinct businesses align their operations to the vision and mission statement of GM.

GM has two business types of divisions; GM financial and automotive. In regard to corporate functional cluster, the corporate facet becomes a secondary feature and is meant to integrate all its business operations into one unit. For instance, the global manufacturing unit of GM is mandated to integrate all manufacturing operations Organizational culture The culture at GM is based on ensuring that reward comes as a result of collective effort. The question of innovation can also be reconciled to the aspect of speedy thinking, which also guarantees success. As a facet of the organizational culture, responsibility ensures that the firm is able take action in order to mitigate challenges. Problems such as faulty automobiles are dealt with through responsibility. Such vehicles are recalled, with the clients being given new ones so as to safeguard reputation.

Accountability is also vested in the management structure, such that leaders become accountable to the stakeholders. Moreover, the transformation theory has been quite helpful in initiating commitment and innovation from followers. Therefore, one comes to appreciate the manner in which the current CEO is able to rally employees towards his vision and persuading his staffs to follow suit. Based on the above analysis, it appears as if the firm does not have a static organizational structure, but is more hinged on personalities rather than structures. Works Cited Chadwick, Peter. Governance, Corporate Culture and Lessons from VW. com/general-motors-organizational-culture-agility-characteristics-analysis>. General Motors’ Organizational Structure for Flexibility in Regional Markets. 8 September 2018. 1 November 2018. <http://panmore. <https://open. lib. umn. edu/organizationalbehavior/chapter/14-1-organizational-structure-the-case-of-toyota/>. Sosnovskikh, Sergey.