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Essay / Research Paper Abstract
This 6 page paper examines the management and leadership models used by BMW. The core model is argued as a stakeholder approach reflecting the social model of capitalism found in Germany. The company uses this successfully, but it is not the only model used. The UK operations are also examined where the model has developed into one of employee empowerment with a less paternal approach. The bibliography cites 12 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEBMWlead.rtf
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Unformatted sample text from the term paper:
have been some alterations to the general paradigms in order to maximise returns and also adapt to other cultures. To appreciate the corporate governance paradigm we need to look
at the general German corporate governance models this is especially important when we remember that BMW is a company that is still a family firm and retains its independence.
Capitalism in Germany is also known as the social model of capitalism or sessile marthektwirtscharft (Edye et al, 1996). Edye (et al) described
this German attitude to capitalism in the following way; " if the market is the fundamental means of allocating resources then, in order to work properly, it must be regulated
and administered in such a fashion as to produce a socially acceptable outcome" (Edye et al, 1996). this demonstrates you higher priority on social principles than in the more
well-known Anglo American model. The increased emphasis on social responsibility can be seen in the extensive employee rights within the country. The German
environment within the business economy is that of co-operation and consensus to in the government, trade unions, industry and financiers. This results from in decision making appearing to take on
the guise of institutionalised stake holding. First indication of this co-operation in consensus can be seen on in the two tier board
system which is used in industry (Dimsdale, 1994). A system consists of a supervisory board (aufsichtsrat), and the management board (vorstand). These 2 tier system has been mandatory since 1884,
prior to this date the scheme existed but was optional (Dimsdale, 1994). The employees have the right to representation on the supervisory board, in an organisation of more than
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