Organizational Behavior and Behavior Term Paper

Volkswagen Got Away With Diesel Deception

Identify and discuss the main problems or concerns mentioned in this Organization

The main problem mentioned in the Volkswagen scandal is the admission that approximately 11 million of its manufactured vehicles were fitted with software aimed to obfuscate emission tests. In particular, the equipped software detected when the car was being tested and then the software triggered apparatus that reduced emissions. The other malcontent is that in times of regular driving, the software turned down the apparatus, which in turn gave rise to an increase in emissions that were excessively beyond the legal limits. This was most probably with the intent to have fuel savings or to improve the torque and acceleration of the car (Gates et al., 2017). The company admitted guilty to multiple criminal charges in the United States and has allocated more than $20 billion for penalties and compensation associated with the scandal, with the payments with American regulators and vehicle owners consuming a huge amount of that money. From the time the scandal started, Volkswagen has recorded losses, declared layoffs and has had to restructure its leadership. The fall-out of the scandal for Volkswagen can be perceived in different ways. To begin with, the worldwide annual car sales declined from 10 million to less than 9 million. This figure is set to deteriorate much further in the forthcoming years. Secondly, since the scandal broke out, the stock price of the company was at $38.03 and this substantially declined and presently stands at $31.46. In addition, the company faced a $6.2 billion loss in 2015 (Gates et al., 2017).

How did these problems develop and who was responsible?

These problems began when on-road testing that took place in 2014 instigated the California Air Resources Board to inspect and probe Volkswagen, led by researchers at West Virginia University. The institution undertook tests of emissions from two Volkswagen models fitted with the 2-liter turbocharged 4-cylinder diesel engine. The results of the tests indicated that when tested on the road, a number of cars emitted about 40 times the legal levels of nitrogen oxides (Gates et al., 2017). In addition, the Environmental Protection Agency (EPA) found similar test-cheating proofs on other VW and Audi models as well as on a Porsche model (Gates et al., 2017). The individuals responsible for the scandal included both employees and executives. In particular, engineers have taken responsibility for the unethical behavior. In addition, six company employees are presently facing criminal charges in the United States and an executive arrested, who was responsible for overseeing compliance in emissions. In addition, the chief executive officer (CEO) of the company, Martin Winterkorn, together with the head of operations in the United States stepped down and Volkswagen suspended numerous high-ranking executives (Gates et al., 2017).

How could the problems have been avoided?

The problems aforementioned could have been avoided. First and foremost, when the technology used for developing the diesel engine failed to meet the standards set for emission, the company should have come up with a more cutting edge invention that could have met with the requirements (Glazer, 2016). This would not have necessitated the creation of the software that led to fraud and cheating. Secondly, the employees should have refused to take part in such unethical activities regardless of whether this could have cost them their jobs. The right and ethical thing to do should have been to report such requests of creating a software for obfuscation.

Identify organizational behavior concepts that were or could be applied in the organization

Organizational behavior takes into account the influence that individuals, groups, and structures have on the behavior of human beings within the organization. Micro organizational behavior alludes to the dynamics of individuals and groups in the organizations. On the other hand, macro organizational behavior examines the organization as a whole and their industry of operation, particularly the manner in which they become accustomed, the tactics, structures, and incidents that guide them (Boundless, 2016). There are various organizational behavior concepts that could be applied in this case.

1. Organizational Leadership

The key role played by leaders in an organization is offering direction. In addition, leaders set up the structure and culture, which influence the behavior of personnel. The leadership of Volkswagen was poor and the scandal is proof. The main reason why Volkswagen made such a poor decision goes down to the organizational culture cultivated by the organization's…