The Volkswagen No*Gate Case Solution
Restructuring of Hierarchy
A worldwide product division is used by the Volkswagen Group. Domestic divisions are given international authority for product groups under this framework. The company's operations can be divided into two categories: automotive and financial services. Volkswagen Group needs to develop the constant flow of information system from the top management to bottom and vice versa to make sure the flow of information is accurate through which they need to restructure their organizational hierarchy to achieve their strategic objectives and prevent this kind of issues.
Implementation of Idea
Severe situations like these occurs as a result of continuous negligence and avoidance of business ethics at an organizational level. So in order to deal with these consequences and to implement the supposed ideas, a four-step process that includes Replacing, Restructuring, Redeveloping and Rebrandingmust be done.
Replacing
In this step the leadership style of the organization must be replaced. It can be said that the company was following an autocratic leadership style that primarily is aimed to be succeeded anyhow and it does not encourages employees engagement in the company’s decision making, as a result the employees start being silent and does not even speak up against the wrong things happening in the company. This leadership style must be replaced with the democratic leadership style in which every member of the organization will have a say in decision making and also towards the right or wrong things happening in the company.
Restructuring
The second step in this implementation process is the restructuring of the company. It is clearly shown that the organizational structure was not at all encouraging towards business ethics. Its values were misleading and the employee’s actions were rational. So there is a severe need to restructure the mission statement, values and ethical standards of the company in order to implement a fair environment in the entire organization.
Redeveloping
The third step must include the redevelopment of organizational strategies. Previously the company was engaged in activities that were clearly deteriorating towards environment safety and there were no internal check. So the organization must commute its strategies and revamp its policies for its audit system.
Rebranding
By rebranding it is meant that the company must revitalize its image and reputation towards public through rebranding. Due to the scandal, the company’s reputation was severely affected, so it is now in a severe need to regain the lost trust of the pubic, which could be regained through having an effective rebranding.
Appendix 1: Stakeholder Analysis Model
Keep Satisfied
In this scenario, the company’s stakeholders who have higher interest and influence are always kept satisfied about the organizational progress and mission. In this case, the shareholders and owners are considered to be at a higher position as the company wants to satisfy them with the success at any cost, regardless of it coming from the extreme violation of business’ ethics.
Engage Closely and Influence Actively
In this scenario, the top management was at the position with high influence over the employeesas they were actively engaged in the company’s progress regardless of giving any thoughts to the violation of business’s ethics and creation of environmental harms.Employees got engaged in the company’s unethical activities and were highly influenced by those stakeholders of the company who had higher power and interest, such as: top management.
Monitor
At this point, the company’s activities were not ethically monitored by its stakeholders because of it having less influence and power over decision making, such as its employees. So they also got involved in the scandal because of having no influence and they even could not even speak up against the company’s wrongdoings.
Keep Informed
This scenario involves the stakeholders with high interest but low power or influence in the company like the customers, although it was the company’s responsibility to keep its customers informed about its operations and activities, but the company went against it, making the customers unaware about the company’s illegal and unethical activities...........................
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