Vw Organisational Structure and Culture

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ORGANIZATIONAL STRUCTURE OF THE GROUP The organizational structure of Volkswagen uses the same Board of Management as the Volkswagen Group. A Group Board of Management was also created to support the Board of Management, and to guarantee that each brand of the Group, and their needs, is taken into consideration. Within the Board of Management are an array of Board members, consisting of the chairmen of the brands and the top managers of each brand. Important decisions are brought to the Group Board of Management’s attention in order to make adequate decisions considering all the brands, not only the needs of the individual brand. While the Group Board of Management has a general overview of the brands and their interaction, there are senior managers that are in charge of each company within the Volkswagen Group separately. Therefore, each company manager works on the success and growth of its business, while keeping in mind the overall structure and success of the other companies within the Group. To comply with this mindset, decisions that are important to the Group are brought to the Group Board of Management for approval. The Board of Management of Volkswagen AG consists of nine members: the chairman Dr. Martin Winterkorn, and other members: Dr. Francisco Javier Garcia Sanz, Prof. Jochem Heizmann, Christian Klingler, Dr. Michael Macht, Prof. Horst Neumann, Hans Dieter Pötsch, Dr. Leif Oestling and Rupert Stadler. The divisional structure, the product-based, geography-based, or market-based structure, enables top management to concentrate on important decisions for each of the different segments. However, this structure does not parallel cost-efficiency, it does not follow economies of scale. For a large entity like Volkswagen AG, the cost is a small sacrifice to make in order to efficiently address the needs of the market and the customer. While the

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