(iv) Job Enrichment: BMW gave its employees the opportunity to receive training and coaching which allowed them to work in different departments and work closely with other employees. This was an attempt to motivate employees by giving them the opportunity to use the range of their abilities which extended their role in the production process. Due to the fact that BMW gave its employees this opportunity, employees were able to develop skills which they had not used much before, therefore encouraging them to be more productive.
2. What view of motivation is management likely to take about workers at BMW?
Management is likely to see that workers at BMW are motivated because they are given “the power to tackle production problems themselves.” Also they do not get bored of constantly carrying out one job due to job rotation and they are able to gain new skills and experiences through multiskilling. Therefore the change in practices has only had positive effects on the employees themselves and the business as a whole. Due to the fact that the employees are well informed about the business, they feel like what they do is meaningful. Employees are able to express themselves, work closely with other employees and they have taken on more responsibility since they have been given a chance to do things themselves and focus on initiative and self-management. This has also made them a lot more enthusiastic. When people work together as a group, energy and enthusiasm is created and this can then lead to more motivation because employees are enjoying what they are doing. Management at BMW can clearly see that workers have been motivated by the implementation of team work due to the savings of £6.3 million over a 12 month period but also due to the enthusiastic nature of the employees and the fact that the gulf between managers and employees has been reduced.
3. Explain the benefits of team working at BMW for employees and the business itself.
(i) The benefits of team working for employees at BMW are that they can specialize and draw on the skills and knowledge of other group members. Even the best qualified individual cannot possess all of the skills to do everything so employees were trained and also gained new skills by working together with people from different departments. The responsibility is shared amongst the team so therefore employees are more prepared to take risks and at BMW they felt as though they were a part of something and what they did was meaningful. Through brainstorming, ideas were created and this not only helped employees because they had the chance to express themselves but it also helped the business as a whole. Not only were better ideas generated through team work but teams came up with a whole diversity of ideas because they were working together with employees from different departments who possess diverse skills and have had different experiences. Lack of job satisfaction is often one of the key things that employees experience. As employees interact with each other, more energy and enthusiasm is created. When this energy was utilized at BMW, it produced results which had a positive impact on motivation and this then led to even more success on an individual basis but also for the business.
(ii) The benefits of team working for the business itself is that the productivity was greater due to the fact that employees gain new skills and experiences and share their knowledge with others in the team. Over a 12 month period, BMW was able to save more than £6.3 million due to team work. Another benefit for BMW is that teams are needed in order to solve difficult business problems and some team discussions lead to ideas which have then caused changes in practice. In 2002, over 8,000 staff ideas were implemented so this proved that this was not only a benefit for the employees but also for the business.
4. Discuss to what extent empowerment is necessary for the success of the Wings system.
Employee empowerment is a strategy and philosophy that enables employees to make decisions about their jobs. It also helps employees take responsibility for their work. When employees start taking responsibility for what they do, it makes them feel comfortable with their job and also self-confident. Employee empowerment helps employees serve customers at the level of the organization where the customer interface exists. It is important in order for the Wings system to be successful because the business needs to be able to trust that their employees will carry out the tasks asked of them. This should not be difficult for BMW because they have already resulted in such high cost cuts.
Advantages of Employee Empowerment:
- Increased employee education and training.
- Employees participate in creating their own goals.
- Increased employee contribution.
- Employees feel more satisfied with their work because they are given more responsibility.
- Employees are more likely to agree with changes if they participate in decision making.
- Employees feel trusted.
- Long term effect on the business would be that there should be an increase in productivity because employees are more motivated.
Disadvantages of Employee Empowerment:
- Employees can abuse the increased power given to them.
- Some employees may focus on their own success rather than the success of the company.
- There is an increased cost to the organization for training and education.
- Conflicts or power struggles may occur between employees due to group work.
In order for the Wings system to be successful, there needs to be a balance between employee empowerment and traditional management. The manager of the department needs to be sensitive to the employees' and the company's needs and chose a management style that will work best to achieve the objectives of the company.
Employee empowerment is necessary in order for the Wings System to be successful because a major part of the Wings System is that employees are given more responsibility and it is supposed to allow employees to learn new skills and feel motivated and self-confident with what they do. These factors are included in employee empowerment and therefore employee empowerment is necessary in order to keep employees motivated and allow them to work in a comfortable environment where they feel appreciated.
