Organization's Culture

Any organization operates and develops as a complex organism being constantly influenced by the external environment and adapting to changes. A modern organization should be able to form and accumulate potential that can ensure a timely and appropriate response to the external environment. It also gives the opportunity to change the environment and effectively manage the operation and development of numerous components and subsystems of the organization. Organizational culture is the basis of the organization’s potential. It is something, for which people have become members of the organization. Organizational culture determines how relationships between them are built as well as what principles and methods of performing work are used in the organization. Comprehensive knowledge of the development and formation of organizational culture allows studying the organization as a living organism taking into account the human impact on the efficiency of its operations.

It is hard to believe that once BMW – a symbol of high quality products in the German automotive industry – started to produce aircrafts. Even today, its emblem reminds about it. Blue and white sectors symbolize the sky that shines through the halo of the rotating propeller. In 1923, the company produced its first motorcycle. The passenger car production started in 1932. Nowadays, BMW is a world-famous German manufacturer of automobiles, bicycles, engines, and motorcycles. “BMW has been strategically focused on premium segments in the international car market” (Cornelissen, 2008, p. 87). BMW was formed as a result of merging of two Munich companies in 1917. Surviving the recessions, ups, tsunamis of fashion trends, and machinations of opponents, it confirmed the title of one of the most successful companies of all times. The company received this title due to the well-organized teamwork and skillful management.

The motto of the company is “The Ultimate Driving Machine”. The main aim of BMW is manufacturing a qualitative product, no matter whether it is a car, engine, or motorcycle. The principle of the company is to satisfy the needs of its consumers thereby increasing the number of regular customers. Organizational culture of the BMW Group is characterized by clear responsibility and mutual respect. “Rituals are a way of life at BMW – building bonds among diverse groups, connecting employees’ hearts with the company’s soul, and pooling far-flung ideas for better products” (Bolman & Deal, 2011, 105). Lawful behavior and fair competition are integral parts of the business activity of the company and important conditions to ensure its long-term success. The main objective of the company is to avoid the risks that could endanger the trust of customers, shareholders, and business partners of the BMW Group.

The HR strategy included the values that employees of the enterprise have called crucial: pursuit of justice, desire to own property, the principle of reciprocity of obligations fulfillment (employees and employers in relation to each other), independence and individuality. The values also include self-fulfillment at the workplace and beyond it, desire for social contacts, information and communication, security (the desire to ensure confidence in the future), as well as participation (voting rights) in decision-making. The company adheres to such values as participation, self-determination, orientation to the needs of the customers, team work, identity disclosure, decentralization, creativity, as well as the ability to compromise.

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Company executives try to maintain a strong spirit in the team to motivate the employees to improve constantly and offer the products of the best quality possible. According to the philosophy of the company, each employee must demonstrate an excellent work and take personal responsibility for the success of the company. Managers should be an example for their subordinates. For the company, the ability to adapt quickly and flexibly to new challenges in order to maintain long-term success is extremely important. Management in the company is based on mutual trust, and trust is based on responsibility and justice. It is acceptable to express disagreement and the final decision is always made considering the opinions of everybody involved. Employees are the most powerful factor of success. That is why decisions of the staff are very important. In BMW, there is a short power distance between superiors and subordinates, which is quite peculiar to Germany as a country with a historically decentralized past and dislike of the dictatorial leaders. Decentralization and segmentation are the structural characteristics of the German society.

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The strategy of the company is to identify and encourage growth, know the product, understand its strengths and weaknesses, and use every opportunity afforded by the market. The achieved goals is the foundation for the new challenges and achievements. This philosophy inspires each team member of BMW; it positively impacts the structure of the company and plays a key role in decision-making. “The brand’s personality reflects the organization’s culture and heritage” (Misiura, 2006, p. 241). Corporate ethics is reflected in the unshakable desire to achieve the highest point. Corporate culture largely determines the success of the company. Prominent and recognizable brand cars and motorcycles fascinating people around the world are result of many years of work. Nowadays, the popularity of this brand in the world market is comparable only with that of a concern Mercedes-Benz, with which BMW competes successfully. Companies compete in the D and E class products and expensive SUV – the most profitable segments of both companies.

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BMW is considered a leading provider of premium products and services for the individual mobility. The company is markedly different from other companies not only because of innovations and technical expertise in the construction of vehicles, but also due to the development of corporate culture. Maintaining this culture and its stable development is extremely important.

 

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