Introduction

The Volkswagen Company, also referred to as Volkswagen AG, the largest German
automotive manufacturer, was founded in 1937 by the German government to mass-produce
a low-priced "people's car."
The business was initially run by a Nazi organisation, the German Labor Front (Deutsche
Arbeitsfront). Austrian automotive engineer Ferdinand Porsche, who was in charge of the
initial design of the automobile, was employed by the German Labor Front in 1934 and broke
ground in 1938 for a new plant in the state of Lower Saxony.
Before mass production could begin, the outbreak of World War II in 1939 happened, and the
factory was repurposed to manufacture military equipment and vehicles. The military
presence of Volkwagen made its factory a target for allied bombers, and the factory was in
ruins by the end of the war. Under British control, it was restored, and Volkswagen's mass
production began in 1946.
The company's management was transferred to the West German government and the state of
Lower Saxony in 1949. By that time, Volkswagens were more than half of the passenger cars
produced in the country. In the 1950s, Volkswagen's production grew rapidly. In 1950, the
company launched the Transporter van. In most export countries, sales abroad were generally
high, but because of the car's small size, unusual rounded appearance, and historical relation
to Nazi Germany,
However, as the 1950s progressed, the car began to gain acceptance there, and Volkswagen
of America was founded in 1955. In 1959, the American advertising agency Doyle Dane
Bernbach was hired to represent the company, and the result was a seminal advertising
campaign that helped popularize the car as the "Beetle" and marketed its size and unusual
nature to the market as an advantage.
The joint ownership of Volkswagen by the West German government and the state of Lower
Saxony continued until 1960, when with the selling of 60% of its assets to the public, the
company was largely denationalized. Volkswagen has run plants across most of the globe
since the 1950s, including in Mexico, Brazil, China and the United States.
The company also manufactures vans and commercial vehicles, in addition to passenger cars.
A number of other automobile firms are owned by Volkswagen, including Audi and Porsche
in Germany, SEAT (Sociedad Española de Automóviles de Turismo) in Spain, Škoda in the
Czech Republic, Bentley in the UK, Lamborghini in Italy and Bugatti in France.
In mid-2015, after surpassing Toyota Motor Corporation, Volkswagen briefly retained the
distinction of becoming the world's largest car producer by volume. However, soon
afterwards Volkswagen experienced a public relations crisis as the U.S. The Environmental
Protection Agency (EPA) determined that diesel-powered vehicles from the manufacturer
included software that changed the performance of the vehicle in order to pass pollution tests.
Volkswagen admitted to installing the "defeat device," and more than 10 million cars
worldwide were recalled. The carmaker faced fines of more than $4 billion in the United
States alone, and several Volkswagen executives later were found guilty of various crimes.
Despite the controversy, worldwide sales of Volkswagen continued to grow.

1
Volkswagen Group’s Political Perspective
What is the connection between the structure of the organisation and
authority in the organisation?

How to make the whole business run is a common problem in structuring a business. Making
it work implies that the company's structure needs to adjust to significant factors, such as
changes in the economy and changes in society, strategy and technology. The Volkswagen
Group has a horizontal structure focused on work processes rather than departmental roles.
This is advantageous because it enables the business to be more agile in a changing world and
in particular, to adapt technology rapidly.
When the world in which the company works or is affected is evolving, the structure of the
company often needs to be changed. Effective managers have to carefully analyse the world
and establish a consistent framework and plan.
Through the strategic strategy, the long-term direction of an organization is determined.
Structure and culture decide the long-term course, and if these aspects are not taken into
consideration, it is more likely that the company will not achieve the designated objectives.
Drivers prefer to use their cars more often in the US, and they do more things. This is because
the car is connected to the American dream and every person can own a car with respect for
themselves which makes the public again. To achieve the designated goals and objectives, the
strategic decisions should comprehend the main values of the organisation. A manager who
does not follow the defined culture within an organisation can influence others and may
change. Producing a precise and correct forecast of an important strategic process in a
business is very difficult, as there are many uncertainties in today’s global economy. In the
structure is normally deep anchored and therefore the people who make the decision have to
be changed

What types of power, other than authority, are possessed by organisational

members? How pluralistic is the organisation? Can managers make
unilateral decisions?

Power exercised by the top management of the Organisation lead them to make Unethical
Decision, the Emission Exhaust fraud which was committed by the Volkswagen Group was
decision which was only decided by the top level and it was for the purpose of maximising
the company profit. By this we can assume how top management abuses their power for their
own selfish motives. An individual manager of the VW Group can make decision himself
without approaching to the Board of Directors.

2
Identify the sources of resistance (whether actual or potential) to
managerial authority.
It wasn't an easy thing to reform the company's culture at the management level, after
businesses have been around as long as Volkswagen, they appear to become inflexible and
reluctant to change. There are certainly individuals who long for the old centralistic
leadership during a conversation with business representatives in Hanover. Don't know if you
can understand how challenging it is to shift their mentality. Of course, there are anxieties,
it's not a straightforward undertaking to handle the long history of VW

What protection is provided to employees who feel powerless but

nonetheless wish to engage in whistle-blowing?

The Whistleblower Scheme offers whistleblowers and impacted people the greatest possible
security. Only after very close review of the evidence and fair suspicion of a regulatory
breach is an investigation launched. Throughout the investigation process, there will be strict
confidentiality and secrecy. Data will be checked equally, promptly and in a delicate way.

3
For Presentation

What is the connection between the structure of the organisation and

authority in the organisation?
 The Volkswagen Group has a horizontal structure focused on work processes rather
than departmental roles. This is advantageous because it enables the business to be
more agile in a changing world and in particular, to adapt technology rapidly. In the
structure it is normally deep anchored and therefore the people who make the decision
have to be changed.

What types of power, other than authority, are possessed by organisational

members? How pluralistic is the organisation? Can managers make
unilateral decisions?
 The Emission Exhaust fraud which was committed by the Volkswagen Group was
decision which was only taken by the top management. And this behaviour clearly
shows how top management can make decisions for selfish motives. An individual
manager of the VW Group can make decision himself without approaching to the
Board of Directors.

Identify the sources of resistance (whether actual or potential) to

managerial authority.
 Some individuals who long for the old centralistic leadership. And Of course, there
are anxieties, it's not a straightforward undertaking to handle the long history of VW.

What protection is provided to employees who feel powerless but

nonetheless wish to engage in whistle-blowing?
 After closely reviewing the evidence and fair suspicion of a regulatory breach is an
investigation launched. Data will be checked equally, promptly and in a delicate way.
And their Identity Is hidden.