Personal reflective ( Critical perspectives in Global Management) Coursework

Personal reflective ( Critical perspectives in Global Management) - Coursework Example Volkswagen is a company that that had almost disappeared to obscurity in the early 1990s when Mr. Piech took over as the CEO, however through his leadership and management skills, the company has enjoyed sustained growth and development into the greatest European car manufacturer with expanded markets and a variety of products that respond to the needs of customers. The main issue here is that the former CEO Mr. Piech who has now retired upstairs to chair the supervisory board exhibited an authoritarian and autocratic form of leadership which is not characteristic of most modern organizations; as a result workers have little voice in the strategy and operations of the company. even though a new CEO in the shape of Mr. Bernd Pischetsieder has taken over, the main fear is that the former CEO has sufficient personal power to continue controlling most aspects of Volkwagen’s organization from outside, this raises fears of intransigence in terms of organizational operations. Obvious ly, most workers would like more space and ideological input in the operations of the company. ... Piech. It is clear that the former CEO appreciated discipline, authority, and unity of command with him being the major center of the last two. This indicates a distrust of other people’s leadership and a sense of authoritarianism. Max Weber’s bureaucracy also comes out clearly in the operations of Volkswagen with the former CEO appearing as a leader who ensured that every process and decision followed a clearly set path. This is clear in the fear that decision making will always be pushed upwards. Within the contingency theory, it is clear that Volkswagen under Peuch, was a company largely built around mechanistic structures characterized by centralization, strict division of labor, vertical communication, and low trust (Burns and Stalker, 1961). This is a system that current members of the organization fear will be continued under the new CEO, who has largely been groomed by the former CEO and that it will eventually be detrimental to the organization. There are a num ber of problems that can be identified in the Volkswagen case. The first and most clear of all is the problem around leadership and motivation. It is clear that although under the autocratic leadership of the former CEO the company flourished, many of the workers especially in the managerial level expected a new style of leadership synonymous with global trends that would afford them more input into the running of the company and its development to new heights. However, with the presence of the former CEO still looming large and the new CEO most likely to work under the guidance of Mr. Piech, distrust and lack of confidence has cropped up. This may affect morale and performance. On the face of it, the problem is intransigence, with organizational members having the feeling that things may