1. What are the major causes of Volkswagon\'s emissions cheating scandal? 2. Do
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1. What are the major causes of Volkswagon's emissions cheating scandal? 2. Do you think the causes of the "cheat" were more intuitive and unconscious or analytical and conscious? Explain 3. Do you think it is ethical for VW to offer amnesty only for employees covered by a colletive bargaining agrmement? Wht about the othe decision affect employees coming forward? 4. Do you see any evidence that the decision-making styles of Winterkorn. Muller 5. What type of decision-making style would be most effective at helping to resolve the scandal? Provide your rationale 6. Which of the common decision-making biases played a role in how this case unfolded? 7. What is your biggest takeaway from reading this case? , or Horn contributed to the scandal?Explanation / Answer
1) The major causes of the Volkswagen cheating scandal was short-term thinking of maximization of profit and gaining market share through diesel cars which has higher fuel efficiency as well as emits less pollutants (through cheat devices of course)
2) The causes of cheat was analytical and conscious as Volkswagen executives consciously tampered with the software of the car to ensure that different modes operated during test and actual running conditions. Thus clearly it was well thought out and not an unconscious decision.
3) If amnesty was to be offered, it should be offered to all. By offering it only to a select group, it is demotivating for employees and everyone would be fearful that should something happen, the employer will simply disown them and they will be left to fend for themselves.
4) The top executives at Volkswagen were very metrics driven and they wanted to crack the US market at any cost. This message was propagated throughout the organization and this created an environment and culture of achieving targets at whatever cost necessary. Thus the decision making styles and personality of Volkswagen top executives definitely contributed to the fiasco.
5) A more participative decision-making style wherein due weight is given to everyone's opinion and non-financial metrics such as social and community obligations are also given a thought and a more democratic process is the ideal way to address this crisis scenario.
6) All evidences and information were swept by the cognitive biases that were present at various levels. In spite of information available to the contrary, people acted in a certain way that was completely in contradiction to what logic would suggest and that is an indication of the cognitive bias.
7) The biggest takeaway is that one should process information objectively and also in managerial decision making, due importance has to be given to the potential reputational risk of anything we do that may be counter productive for the society.
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