Leadership Challenges Facing BMW Group

Essay by ihindawiUniversity, Master's October 2004

download word file, 14 pages 5.0

Downloaded 396 times


Leadership is defined as influence; that is, the art or process of influencing people so that they will strive willingly and enthusiastically toward the achievement of group goals. Leaders envision the future; they inspire organization members and chart of the organization. Leaders must instill values - whether they be concern for quality, honesty, and calculated risk taking or concern for employees and customers. There isn't a common definition of leadership, perhaps this is because the concept of the leadership is fuzzy and many of them are complicated. Sommer (2003), defines it as "Leadership is about showing the way, by going in advance, and influencing the behaviour of others. It refers to introducing new business behaviour, practices, or technologies, which demonstrate that sustainable development is possible". Avery (2004) States that "The success of new leadership approaches will depend on aligning people, organizational systems, processes and culture with the new conditions".

This may require changes in the leadership paradigms predominating in an organization.

In this paper, the writer will conduct a critical evaluation of the leadership challenges facing BMW Group in the areas of leadership paradigms, leadership development, role of the major shareholders (the Quandt family), leaders' expectations from the workforce and how the organization attracts and retain its employees. The author will critique the BMW organization with its competitor Ford Motor Company.

Leadership Challenges facing BMW Group

Avery (2004), states that the classical leadership is based on the leader's position and the power of control of followers which indicates the centralisation of the leadership. This can be evidence in the BMW former CEO Bernd Pischetsrieder's classical leadership between 1993 and 1999, especially when he played a key role in supporting British Rover's Longbridge plant in Birmingham when others in BMW were pushing for its closure after creating heavy losses...