Robert F. BrownClemson University

Human Resource Development 830

According to the BMW Press Club USA, “In September 2010, the BMW brand in the U.S. reported sales of 18,228 vehicles (+21.1 percent) and a year-to-date sales volume of 157,464 vehicles, up 9.2 percent. US$ 750 million of the total investment plan have been used to prepare Plant Spartanburg to produce the all-new BMW X3 and included construction of a new assembly hall for the BMW X3 and expansion of the Body and Paint Shops for higher production capacities.  As a result, Spartanburg’s production capacity is set to increase by 50% from 160,000 to 240,000 units by 2011.

Since the start-of-production at the Spartanburg plant in September 1994 more than 1.6 million BMW vehicles have been manufactured for customers around the world and total capital investment now amounts to US$ 4.6 billion.

Historically, organizational functionality at BMW has been a good indication of cost efficiency, product quality, and overall organizational success. However, due to the ever-changing environment and the quest for profitability; BMW had to become more diversified in their product line. The product line was expanded an effort to capture a larger percentage of the premium market share by narrowing the margin between them and the competition. In order to accommodate this organizational change, BMW had to find ways to streamline its resources without compromising its culture.

People resist being changed

People are more likely to accept change that they are familiar with

The Resistance to change comes from a fear of the unknown or an expectation of loss.

Overt Alignment◦ Relies on management maintaining control over

the operational-level behaviors and is directive in nature

Unobtrusive Alignment◦ Relies on control over team’s norms, values, and

beliefs.

One major systems BMW used to support its organizational change was Value-Added Production System (VPS). This system consist of 10 core principles and supporting improvement methods that enabled BMW to identify and to eliminate process waste that was not essential to produce our vehicles.

On-the-spot-responsibility, Zero waste Standards Continuous improvement Transparency One-piece flow Takt Zero defects Pull Flex

As a result of the systems that BMW implemented during this organizational change, productivity has increased by approximately 16% as depicted in the number of automobiles processed within a 10 hour shift.

“Managerial behaviors showing (1) support of and respect for employees and (2) investment in and commitment to the organization’s vision or goals may motivate employees to accept and work towards the goals, helping to bring about alignment.Theoretically, these effects of managerial behaviors occur through the development of employee trust, morale, and value congruence” (Terry A. Beehr, 2009)

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