BMW Employee Culture: Teamwork With Commitment

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BMW wants all of their workers to be successful individuals. In order to make their employees motivated, BMW offers raise in salary and bonuses to their top employees. However, BMW also punishes employees when they do not put in the effort they suppose to. It is a part of the reinforcement theory where the company rewards and punishes employees base on their individual and team performance.

The theory is very effective because all the employees want to get a raise and bonuses; no one wants to get fire. Reinforcement theory is a really successful theory that most major company needs and uses in order to get the best out of each employee, so that the entire company will grow as a whole. "At BMW we promote an organization that supports, recognizes and effectively manages all levels of performance. In our approach to remuneration and reward, we ensure that salary and bonuses are based on individual and team performance."

(http://www.bmw.co.za/products/automobiles/bmw_insights) Since the rewards and punishments are clearly defined, employees understands the how they performs will ultimately decides their future in BMW.

BMW is a world wide automobile company and the reason for their huge success is their commitment for teamwork. BMW understands the power of working together. Because of their teamwork from all departments of BMW, their products have become customers' favorite. Since building a vehicle is a very difficult job, it requires several departments to work together in order to complete the order, from manufacturing to promotion to sale.

Without any of these departments a complete sale will be impossible. First the production department needs to design the car, and then the manufacturing department needs to help build the actual vehicle. After the vehicle was build, the promotion department needs to help promote the car; last but not least, the sale department will have to sale the car, also known as the dealership. BMW values teamwork as the one of most important step for their success.

At BMW, employees are paid differently based on their position. A project manger or a production engineer get pays by salary plus bonus. Therefore their wage is normally higher than other people. However, a regular sales man would get pays hourly plus their commission. They will most likely get pays base on how many hours during a week or a month they work, plus how many vehicle they sold by the end of each month. This way really depends on each individual on how hard they want to work. BMW offers many benefits for their each of top employees such as raise in salary, bonus, and stock options. I think one of most important benefit workers love is the raise in salary.

It is the most direct way to reward employees for their outstanding effort. Many employees would prefer raise in salary also because unlike bonus and stock option where it pays employees by the end of the year, salary is granted each month.

One problem BMW have, however, is to cut their employee number down dramatically in order to create more profit. BMW is planning to cut 8100 jobs worldwide. This decision has both pros and cons for the company. The pro is that as a company, they will save about 500 million euros starting 2009 and their main purpose is to "reduce its initially budgeted costs by six billion euros by 2012." (http://abcnews.go.com/Business) The con is that because they cut so many workers for their own profit, many people lost their jobs because of it.

Although not strike is arranged and most of the workers took redundancy, still employees were cut without a choice. That might hurt the company maybe later down the road and leave a bad reputation for the company. When BMW decides to hire again some people might not want to work for them and choose other automobile company instead of BMW, since BMW have a history of lay off their employees.

ABC News
5-14-2008 (http://abcnews.go.com/Business/wireStory?id=4810262)
BMW official website
5-14-2008 (http://www.bmw.co.za/products/automobiles/bmw_insights/careers.asp)
Understanding Business 8th edition Page 267-270, 276-277
by William G. Nickels, James and Susan McHugh

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