Management Problem Solving Case of Volkswagen

Question: Discuss about theManagement Problem Solvingfor Case of Volkswagen. Answer: Introduction: The report mainly depicts the overall problems, which was faced by Volkswagen in designing their Engine Management Software (EMS). In addition, the software that was developed for detecting the emission rate in cars was mainly rigged. Furthermore, the novice effectively reviews the overall problems, which mainly reduced the viability and brand image of the company. Moreover, the report with the help of chosen pathway is able to solve the problems faced by Volkswagen. Lastly, the novice effectively suggests the recommendation for Volkswagen, which could be used in near future for reducing any unethical process in the organisation. Review of the Problem: During 2009, the EA 189 engine was mainly designed by Volkswagen, which had fault in their emission system. In addition, the engine management software that is been used by the company was mainly rigged to provide the reduced emission rate (volkswagenag.com, 2016). Furthermore, the software used for detecting the overall emission rate of the car was been manipulated, which mainly depicts wrong emission rate of the engines. In addition, the main aim of the company was to cheat the overall Environmental Protection Agency (EPA) of US and to allow EA 189 engine diesel cars. In this regard, Balbi (2015) stated that Volkswagen with the help of deceiving technology are able to manipulate the engine reading. In addition, Volkswagen by using the overall defaulting software in their diesel cars was able to create a buzz for its products. In addition, the company depicted the low emission rate of their cars in their marketing strategy, which in turn helped in boosting the overall sales. The software was mainly designed by the company to depict the adequate emission rate, which was allowed by the US authorities by using the safety mode. However, after the schedule testing time the safety mode of the cars was changed, which mainly emitted nitrogen oxide pollutants up to 40 times (volkswagenag.com, 2016). Zhou (2016) mentioned that around 90% of the overall diesel cars produced by Volkswagen mainly generated high emission, which was not allowed in US. Figure 1: Showing the drop in net income faced by Volkswagen (Source: volkswagenag.com, 2016) Figure 1 mainly depicts the overall fall in net income, which incurred due to expenses occurred from taking back the faulty tasks. In addition, around 6.2 billion in loss was mainly incurred in 2015 due to the extra expenses incurred by Volkswagens in calling back the 35,000 cars (volkswagenag.com, 2016). Furthermore, Volkswagen has also agreed for the unethical practises conducted by the organisation for promoting the low emission diesel car, which was mainly depicted as emissiongate or diselgate scandal. Krall Peng (2015) mentioned that due to emission scandal the overall image and share price of Volkswagen was negatively impacted. On the contrary, Apte (2016) criticises that carbon emission manipulation was mainly conducted to reduce the RD expenditure of Volkswagen. Moreover, due to the scandal overall Volkswagens creditability among potential investors and customers had been drastically declined. In addition, the emissiongate scandal was the major turning point for companys rev enue and profitability (volkswagenag.com, 2016). Analysis of the Problem: The overall pathway of the analysis is mainly conducted from the theoretical lenses of CSR / Ethics. In addition, the scandal of Volkswagen has mainly depicted the overall violation of ethical and CSR activities. Furthermore, the unethical measures used by engineers in designing the emission software mainly portrayed the overall lack of CSR activities. Hoi, Wu Zhang (2013) stated that CSR activities are mainly used for reducing the unethical measures conducted by companies for boosting their profitability. However, Lee, Park Lee (2013) criticises that companies to increases their overall profitability reduce the overall impact of their CSR activity. The first problem was mainly detected on the software developed by engineers of Volkswagen in 2009 (volkswagenag.com, 2016). In addition, the software that was designed by the engineers was mainly manipulated and depicted the unethical measures. Furthermore, the EMS software also manipulated the emission section, which depicted low pollution rate of Volkswagen diesel cars. This manipulation of emission software mainly depicted the low CSR practised by the company, which in turn reduced its overall ethical practise (Yoo Chon, 2013). In addition, the root cause of the unethical behaviour from Volkswagen was due to low independent management control conducted in its operations. In addition, the overall problems that was mainly faced by Volkswagen depicted the low control or the motivation provided by top-level management for conducting unethical practises in the organisation. Furthermore, the resignation of Martin Winterkorn mainly stated the CEO took the whole responsibility of not following the depicted CSR rules. Lee, Cho, Arthurs Lee (2015) mentioned that the scope of the Volkswagen scandal mainly depicts the motivations that might have been provided by the CEO for manipulating their emission software. However, Kim, Kang Mattila (2012) argued that due to the reduced mileage provided by the diesel engine the fraud conducted by the company escalated, which in turn affected both creditability and image of the company. With the help of the following depicted actions, the overall CSR activities of the company can be effectively maintained. Ethical CSR: The ethical CSR mainly depicts the legal requirements, which could be followed by Volkswagen in their operations. In addition, the ethical CSR is blend of legal and ethical requirements, which are needed from the car manufacturers in US and European countries (volkswagenag.com, 2016). Esen (2013) cited that increasing ethics and CSR activities in an organizations mainly helps in gathering increased trust from both investors and customers of the company. In addition, Volkswagen could effectively increase the impact of CSR activities by effectively monitoring activities of their staff. On the contrary, Govindarajan Amilan (2013) argued that CSR activities only reduce their impact if the company mainly aims in making high-end profits from their activities. Continuous Monitoring by Independent Directors: The mainly problems of Volkswagen mainly came from less monitoring conducted by independent directors. In addition, if the monitoring process of the independent directors was effectively conducted then operations of the company might be conducted ethically in fear from loss of reputation. Thus, the independent directors of Volkswagen can effectively evaluate the overall operations, particularly the manufacturing and financial report process (volkswagenag.com, 2016). In this regard, Wirl, Feichtinger Kort (2013) mentioned that monitoring process is mainly helpful in reducing the unethical practices, which might be conducted in an organisation to support their CSR activities. On the other hand, Park, Kim, Oh Chung (2016) criticises that increased implementation of CSR activities might hinder manufacturing companys ability to maintain the required level of profitability. Strengthening the Ethical Use of Technology: In addition, Volkswagen was able to use the unethical approach in their car manufacturing because of manipulated technology. Thus, strengthening the overall ethical use of technology might mainly help in reducing the unethical measures, which was previously conducted in Volkswagen. In this context, Krall Peng (2015) cited that the implementation of advanced technology might mainly help in improving the monitoring process, which in turn could reduce the overall unethical measures conducted in the business. Furthermore, Volkswagen could effectively use advanced technology for reducing the pollution conducted by the manufactured cars. On the contrary, Hoi, Wu Zhang (2013) argued that implementation of high-end technology in the manufacturing process mainly increase the overall expenditure of the company. Recommendations for Volkswagen and your Conclusions: The overall study mainly helps in evaluating the Volkswagen scandal that reduced viability and authenticity of the company. In addition, the report effectively analyses the overall scandal and depicts the relative actions that is been taken by Volkswagen. Moreover, the novice effectively depicts and evaluates the scandal based on relative theoretical pathway. In addition, the report uses ethical and CSR theoretical pathways to understand the scandal, which desecrated the image of Volkswagen in US and Europe. Furthermore, the relative measures are also depicted by the novice, which could be used by Volkswagen for strengthening its CSR activities. The main recommendations that might be helpful for Volkswagen are depicted as follows. Volkswagen could implement high-end monitoring process for increasing the impact of its CSR activities. In addition, the focus of the company is to ensure non-repetition of the unethical measures that was conducted in Volkswagen. Moreover, Volkswagen directors could also use continuous survey for ensuring the ethical practises conducted in the overall business operations. In addition, the strengthening of CSR activities in Volkswagen could also help the directors and management to endure the ethical practises conducted in research and development section. Moreover, Volkswagen could also provide relative training to its employees regarding the CSR activities and its use for increasing the trust of its employees. In addition, with the help of recommended actions Volkswagen could effectively improve their current CSR activities and conduct its activities ethically. Moreover, the recommendation could effectively help in developing the ethical practices among management and engineers of Volkswagen. 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