IntroductionThe initials BMW stands for Bavarian Motor Works in English language. It is a German automobile, motorcycle and engine manufacturing company founded in 1917 with its headquarters in Munich, Bavaria, Germany (Jones, 2012). In addition to that, it is also the mother company of Rolls-Royce Motor Car. BMW is currently one of the ten largest companies that manufacture cars in the world. It specializes in the BMW, MINI and Rolls-Royce brands, some of the strongest brands in the car industry. The Company has a motto that aims to ensure it impacts differently in a highly competitive market place by providing an inspirational driving experience.
The focus of BMW Company is majorly in the engineering field. This drive has been successful in terms of profit expansion. The sales of BMW model increased by 8%, with MINI going up by 18% and Rolls-Royce improving by 26% in the year 2007 (Jones, 2012). BMW has certain features that have helped it to maintain its good reputation in the automobile industry. It has a lot that other companies can learn from in terms of culture and factory operations.
The Company is known for its managerial system that is flat, flexible, fast and entrepreneurial (552). Its ability to refine the luxury design it produces, has helped it to maintain high profile profit margin in the automobiles industry. It is upon this wide history and introductory remarks, that this paper bases it aims to present a detailed case study on BMW's dream factory and Culture. The paper aims to answer questions related to BMW's culture, the model of leadership and its impacts, how employees derive high job satisfaction at BMW and the attributes of organizational creativity fostered at BMW.
BMW's Dream Factory and CultureAs stated before, BMW has employed an entrepreneurial culture in its operations, a culture that is not common for most industries especially in Germany (Stanley, 2011). They practice a vertical top-down management style that ensures a good working relationship between workers and managers. The company refers to the employees as associates to remove any barriers to innovation. The welcome given to these workers at most times makes them as part of the organisation and therefore fit well in the realization of the company's mission.
The tradition for managers that makes BMW unique therefore is that managers should not always think that they are right (Stanley, 2011). Such a culture came as a result of the biggest challenge that BMW faced in the installation of iDrive system, which proved hell to most of their customers (Stanley, 2011). Competition from other companies like Audi and Toyota also led to this culture. The company's experience in 1959 also propels them to adopt such a culture. In 1959, the company almost went down but was saved by the rich Quandt family who owns 47% shares in the company (553).
After this, BMW approached the entrepreneurial culture from three perspectives: Having motivated workers to produce better cars, a good working environment and lastly a flexible approach to innovation. A Dream for Motivated Workers, Better CarsBMW as a company has come to value its workers so much. Dating back to 1972, the company has always believed that success should be shared by all associates in the company.
This to date makes the company to include the employees in profit sharing by giving them extra pay at the end of every financial year (Stanley, 2011). The employees in turn do find themselves very flexible to an extent that they do sacrifice their time and even leave their families to go and work on new models (553). Therefore, the payment of overtime to its workers enables the company to meet demand levels and as well acts as a high level of job security. As other companies retrench their workers every year, BMW retains theirs and even adds to the list of existing ones.
The new employees are also ever taken round for tests to see whether they can survive the challenging tasks in the company.