Change management in volkswagens emissions scandal

However, apart from Volkswagen that circumvents guidelines of United States environmental agencies other companies such as BMW, Daimler, Porsche, and Audi are also in the criticism of going against the standard of purification of exhaust gas. The Volkswagen scandal follows from its failure to develop a business model which is environmental and economically sustainable. Furthermore, the global market competition played a role in the Volkswagen involvement in diesel emission universal as the company used the illegal means to win the market in united states (Castille, & Fultz, 2018). In another context, innovation in technology is an essential part of market competition and business strategies. Therefore, this case study shows that for a Volkswagen to reposition successfully in market place globally, there is need to reframe its corporate image in terms friendly to the environment to ensure the company achieves economic sustainability for a long time.

This change was to foster a culture where employees are allowed to argue with their managers on the best way to do something. The role of the new management was thus to spread a culture which covers responsibility, uphold accountability and create more interactions between all its cars. One major issue which VW management face is wrong authoritarian leadership style. A critical evaluation of the occurrence leading to the scandal shows that there was a gap in proper and effective leadership in the company (Painter & Martins, 2017). The leaders did not support an environment where employees can be creative. In this context, they first ignored the importance of change and defended their position whereby they tried to fix the problems instead of providing solutions to the issues (Rhodes, 2016).

This can be identified as a reactive typology of organizational change, as it appears after the crisis happened. Figure Types of organizational change However, reactive change had to be taken in place after the scandal went into viral; hence the late recognition of problems affecting the management of change. For instance, the leadership failed to communicate about the issue because of the fear of getting negative feedback hence trying to avoid the problems. In this context, as outlined above the significant problem in the company was the poor leadership style that was like military and authoritarian leadership. Figure type of intervention they used after the scandal The failure to recognize the problems in the company in good time led to poor management in the company.

Most consumers lost their trust with the company forcing the company to appoint Muller as the new CEO and abandoning the management board in the company. Furthermore, the failure to recognize the problems in the company in good time affected the management in a change in various ways. For instance, the change in the management was by force from the external after the company got into the diesel emission scandal since the image of the company had to protect the consumers. Diagnosing the problem using Burke -Litwin change model to understand organizational performance. Moreover, the leadership had unrealistic visions whereby their goal was an economically driven strategy that concentrates on the economic value. Furthermore, commonly destroyS personal commitment and gain the short term success but it might not guarantee the long term success (Hayes, J 2014) and this in a way is what happened as the engineer's limitations hence forcing them to fraud the system with a target of meeting the unrealistic goals of the managers.

In the same context of leadership styles that targeted in the reactive change, the leaders lacked concrete vision on how to deal with the crisis and came up with a way to fix the problems before the scandal. Further, they confronted the authorities by defending their position while arguing that the problem was just a technical failure and they accommodated the shareholders by promising pay fines and compensating the clients. Therefore, a corporate structure that included poor leadership that was the dictatorial style of leadership that used to threaten the employee to get what they want. However, the chief executive officer forced and threatened them either to make the car and install a defeat device in the vehicle, or they get replaced by the other employees.

Therefore, the ignorance of abandoning the views of the employees and using the unnecessary force to get what they wanted to put the company in crisis. Communicating product problem in the organization is something leaders do not want to know or to hear about; they created an organization of silence. The implementation of change in the company was not pleasing to many stakeholders including the customers. In this context, executions were not too different expectations of the stakeholders. Employee reaction to these threats has a connection with their esteem. The company productivity may have risen, but other negative issues may come up with resistance to the risks and control. However, the change in the organization had some positive effect on the organization.

For instance, changing the corporate structure whereby new chief executive officer Muller and Daimler as the first woman to look after the integrity of the organization process and legal affairs improved the performance of the employees in the company (Irwin, 2018). In this context, Muller encouraged the employees to address their issues openly to the management. Besides, Transparency in communication is essential to gain sustain customer trust to lead the market (Hayes, J 2014). Moreover, VW should change the culture of the organization. In this context, the culture becomes essential in the company as it brings all the members of the organization together. To achieve the change involving employees in cultural transfer by hiring a training consultancy. The culture of the company will allow the stakeholders to address their needs to the management without any fear (Anderson et al.

Set clear goals using expectancy motivation theory, establish short-term goals, rewards and incentivize to increase loyalty to sustain old employees and attract outside talents. Finally, the company must find ways to ensure all their employee conduct themselves according to a set code of conduct. Employees must be encouraged to speak freely if they think something is contrary to company ethics. This will ensure accountability and transparency in VW, which will help the company build its tarnished image. Finally, the Volkswagen management should focus on sense giving leadership to ensure that the corporate culture concurs with the company's strategy. Furthermore, the plan lost trust among many people as there was no real change in the management style and the corporate culture despite the assignment of new board member and changing of new CEO.

Therefore, the change management in VW was just more cosmetic hence did not regain the trust to the consumers. List of References • Andersen, O. , Upham, P. and Aall, C. , Thomas, R. and Willkomm, J. The VW Diesel Scandal: Engaging Students via Case Research, Analysis, Writing, and Presentation of Findings. Journal of Higher Education Theory and Practice, 17(7), pp. • Bonsu, S. In Proceedings of the 51st Hawaii International Conference on System Sciences. • Clemente, M. and Gabbioneta, C. How does the media frame corporate scandals? The case of German newspapers and the Volkswagen diesel scandal. Journal of Management Inquiry, 26(3), pp. International Journal of Science and Engineering Applications, 5(4), pp. Mujkic, E. and Klingner, D. Dieselgate: How Hubris and Bad Leadership Caused the • Biggest Scandal in Automotive History.