Mega Environmental Analysis About Porsche Auto Company

Porsche Auto Company
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Executive Summary
This report provides an analysis of Porsche’s task and mega environments, as well as its HRM practices and leadership policies. It was established that experiences various challenges in its mega environment such as changing government regulations; frequent technological changes; fluctuating economic conditions; and changing societal expectations. The major competitors in the automobile industry, including Toyota, Hyundai, General Motors, and Ford constitute a major challenge in its task environment. The company has adopted a comprehensive and rigorous selection and recruitment process that facilitates the HR department to hire highly qualified employees. Its strong corporate culture has also enabled the company to achieve superior productivity and increased employee commitment and morale. The key weakness in its leadership practices is its emphasis overreliance on, task-oriented leadership approaches at the expense of relationship-oriented approaches. A number of recommendations were made that will enable the company to foster its leadership approaches, organizational culture, and HRM policies. Similarly, recommendations were also made to help it in dealing with the challenges in its task and mega environments.
Table of Contents TOC \o "1-3" \h \z \u Executive Summary PAGEREF _Toc502422643 \h 21.0Introduction PAGEREF _Toc502422644 \h 42.0Environmental Analysis PAGEREF _Toc502422645 \h 42.1.1Mega Environmental Analysis PAGEREF _Toc502422646 \h 52.1.2 Task Environment Analysis PAGEREF _Toc502422647 \h 62.1.3 Organizational Cultural Analysis PAGEREF _Toc502422648 \h 72.2 HRM and Leadership Analysis PAGEREF _Toc502422649 \h 82.2.1 Analysis of Organizational Recruitment and Selection Process PAGEREF _Toc502422650 \h 82.2.2 Analysis of Dominant Leadership Style PAGEREF _Toc502422651 \h 93.0 Conclusion PAGEREF _Toc502422652 \h 114.0 Recommendations PAGEREF _Toc502422653 \h 114.1 Management of Environment PAGEREF _Toc502422654 \h 114.2 Maintenance or Adaptation of Organizational Culture PAGEREF _Toc502422655 \h 124.3 Maintenance or Adaptation of Human Resources Management Policies PAGEREF _Toc502422656 \h 124.4 Fostering Effective leadership PAGEREF _Toc502422657 \h 135.0 References PAGEREF _Toc502422658 \h 14Appendix PAGEREF _Toc502422659 \h 17
Porsche Auto Company
1 Introduction
The purpose of this paper is to analyze Porsche Auto Company’s mega and task environments as well as its human resource management (HRM) and leadership policies provide the necessary recommendations. Porsche is a German-based automobile company that specializes in the design and manufacture of motor vehicles. The paper begins by examining the company’s mega and task environments and their respective impacts on the company. In the same vein, its organizational culture and its influence on the company is also critical. With regard to HRM and leadership, the paper provides a comprehensive analysis of the company’s recruitment and selection process while trying to determine whether it employs a dominant leadership style or not. It also examines the impact of such leadership style on the company’s teams, communication, and motivation. Finally, the paper provides a recap of the key findings from the analysis as well as the necessary recommendations relating to its management concepts.
2 Environmental Analysis
An organization’s mega environment, also called external environment, consists of forces and factors beyond the organization’s control, which could potentially affect its performance. The environment is classified into two broad categories: task or specific environment and the general or mega environment. Overall, the external environment has a significant impact on the form’s effectiveness. The following two subsections provide a succinct analysis of the forces in Porsche Auto Company’s mega and task environments and the impact of such forces on the company.
1 Mega Environmental Analysis
The mega environment is a critical part of the company’s external environment. As its name suggests, the mega environment consists of broad conditions and trends in the region within which the company conducts its business operations. The major forces within such environment include socio-cultural, technological, economic, international and legal-political forces.
With regard to technological forces, Porsche Auto Company is influenced by frequent changes, technological changes in the automobile industry. This industry is among the fastest-changing industries globally due to the frequent introduction of the latest, energy-efficient technologies (Mirza&Nanarvi, 2011, p. 36). Such technological changes have been partly necessitated by the prevailing environmental concerns arising climate change and global warming. As a result, the industry has experienced technological advances in design, communication, and electronics (Vaz, 2017, p. 2). Particularly, the traditional manually-operated motor vehicles are currently electro-mechanically operated (Edunyah, 2015, p. 58). The implication of technological advancements is that Porsche Auto Company has to adopt latest technologies in order to remain competitive in the industry.
Economically, the prevailing economic conditions could have a significant impact on Porsche’s management practices. As a multinational corporation with many subsidiaries across the globe, Porsche Auto Company’s management practices are greatly influenced by various economic factors, including stock market fluctuations, interest rates, inflation levels, and changes in the global countries’ per capita income.
The legal-political factors refer to the governmental and legal systems in Porsche’s countries of operation. The company’s overall performance is influenced by the local, federal and state government regulations. Following the increasing environmental concerns, governments in the global countries have enacted regulations on greenhouse gas emissions. Particularly, the United States enacted the so-called emission control legislation that regulates safety, emissions, and energy consumption in the automobile industry (Vaz, 2017, p. 2). The implication of this legislation is that Porsche has to develop energy-efficient motor vehicles in order to reduce the environmental footprint.
On the other hand, socio-cultural forces entail beliefs, societal values, behaviors, norms, and customs. Such socio-cultural aspects keep on changing from time to time implying that Porsche’s management has to regularly adapt their business operations to the society’s changing expectations. Particularly, the demand for energy-efficient motor vehicles, especially in the developed nations is on the increase as more people are becoming environmentally conscious.
2.1.2 Task Environment Analysis
The task environment is another part of the company’s external environment that determines the extent to which it attains its planned business goals. Some of the forces within Porsche’s task environment include the labor supply, supplies, customers, stock markets, distributors, and competitors. Figure 1 in the Appendix depicts the forces within the company’s task environment. With regard to competitors, Porsche’s key competitors in the automobile industry in both the American and Asian markets include Toyota, Hyundai, General Motors, and Ford. In order to remain competitive, the company needs to perform regular reviews of its strategy in order to gain a competitive edge over its major rivals.
2.1.3 Organizational Cultural Analysis
An organization’s corporate culture plays a key role in virtually all aspects the organization. Shahazad, Luqman, Khan and Shabbir (2012, p. 976) defines culture as the arrangement of an organization’s various attributes that express and differentiate it from other organizations. It is a set of behaviors and values that guides the firm’s success. Thus, it follows that organizational culture is the firm’s cognitive systems that guides employees’ decisions and behaviors (Shahazad, Luqman, Khan & Shabbir, 2012, p. 976). Porsche Auto Company Recognizes that real emotions and the true ability ate found in its staff. The company encourages and promotes courage and creativity (Porsche, 2017). Through the necessary employee training programs, the company prepares its future specialists, which in turn ensures long-term quality assurance. The most important values in the company’s corporate culture include ensuring employee trust, originality in project implementations, integration of employees in project implementation processes, and maximum independence. Additionally, its organizational size and structure facilitates short decision-making and communication routes (Porsche, 2017). Such organizational structure enhances un-bureaucratic corporation among various departmental units. The teams within the company are characterized with greater independence and effective work orientation processes. Overall, the company has established a comprehensive and efficient organizational culture.
Organizational culture has widespread implication of the company’s performance and employee relationships. According to Owoyemi and Ekwoaba (2014, p. 170), organizational culture is a social glue that enhances employee relationships and hence making them feel integral to the form. With good employee relationships, Porsche Auto Company ensures optimal performance of the employees in terms of effectiveness and efficiency in achieving its objectives and goals. Organizational effectiveness refers to the degree to which the firm fulfills its planned objectives (Aktas, Cicek&Kiyak, 2011, p. 1562).In light of this, organization performance simply refers to the firm’s success and endurance in the industry (Ahmed &Shafiq, 2014, p. 22). Additionally, a strong organizational culture also enhances the employees’ confidence and thus serving as a tool for motivating and controlling their performance. The culture results in effective productivity and performance, higher morale, and higher commitment (Owoyemi & Ekwoaba, 2014, p. 170). Notably, Porsche affords its employees with maximum independence and trust making them to feel recognized and valued by the company.
2.2 HRM and Leadership Analysis
2.2.1 Analysis of Organizational Recruitment and Selection Process
The selection and recruitment exercise are an integral part of an organization’s HRM practice. Recruitment entails searching for the potential job candidates who could apply for a...