Bmw’s Dream Factory and Culture

The culture at BMW is an entrepreneurial culture which emphasizes creativity, risk taking and the bottom-up system of freewheeling ideas. The top-down management style is popular in Germany but not at the BMW. As soon as associates start working at the BMW, they will have the sense of the place, history and the mission of the company. BMW creates a working environment that promotes easier communications between leaders and employees. Every employee can contribute his or her ideas and creations via either formal or informal ways. For example, an employee sees his or her supervisor by chance on the way to lunch, he/she can tell this person of the idea which has just happened in his/her mind. More importantly, their voices and their ideas are heard, welcomed and brought into discussions and consideration. As a result, a car from BMW is often a production of thousands of impromptu brainstorming sessions. Furthermore, BMW cares for the benefits of its employees. It includes all employees in profit sharing. It has a plan that distributes as much as one and a half months’ extra pay at the end of the year to employees. The company also provides a high level of job security for its employees. Lastly, BMW also focuses on high-quality but practical products which meet the demand of consumers and are highly competitive with other auto producers. The company’s near-failure from producing impractical and expensive cars during the postwar time in 1959 was a big lesson for them. This near-failure is always retold and mentioned in all new orientations for the new associates. It helps to remind all employees at BMW of a lesson learned for the company in developing its plans in the future and ensuring that kind of mistake should never happen again. 2. Discuss the model of leadership illustrated at BMW. The model of leadership illustrated at BMW is the consideration model of leadership. The leaders at BMW have close relationships with subordinates that are based on mutual trust, two-way and open communications, and respect for employees’ ideas. The managers at BMW must stay humble and work closely with subordinates and their peers. The Leipzig factory, which looks like an art museum, is a very creative working environment that can make the communications between managers and employees easier. Managers at BMW are the ones who know to make the right questions to ask their subordinates, not the ones who have all the right answers. They also emphasize the satisfaction of their employees’ needs and provide as many benefits to their employees as possible. They are approachable and always willing to listen to their employees. They think if the employees are well motivated, better cars will be produced. . Discuss how the leadership model contributes to the culture. The leadership model at BMW shortens the distance between leaders and subordinates. The relationships between them are built on mutual trust. Employees can feel free to raise their innovative ideas to their managers anytime and anywhere. When the employees see that their voice is heard, they are more encouraged to talk. Moreover, the company cares for the employees’ benefits. In return, the employees are very flexible to contribute their best for the company. The employees do not mind working temporarily for months in another work location which requires them to be far away from their family. They are willing to work for extra hours without being concerned about overtime. In summary, the leadership model at BMW has made it such a culture that is quite distinct from other German companies. 4. Discuss why employees derive high job satisfaction at BMW. The employees of BMW derive high job satisfaction because their benefits are well cared of, their voice is heard and their hard work is highly appreciated. Also, their job security at BMW is high. Any employees, regardless of what grade they are, can contribute their ideas and their innovations to the company’s managers easily. There are no complicated, formal processes or procedures required to send their ideas to their management teams. Furthermore, when the company gets more profits, the employees will also be more benefited. Good working environment is developed and paid attention to. In conclusion, BMW’s employees are highly motivated so they are satisfied and willing to contribute more to the development of the company.