APPLYING BROWN FIVE STAGES OF OD INTERVENTION: A CASE OF EMISSIONS

SCANDAL OF VOLKSWAGEN DECLINING THE LEVEL OF SALES, PROFIT AND

BRAND IMAGE OF THE COMPANY

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Executive Summary
The report discusses the organisational development intervention in the Volkswagen with the
application of Brown five stages model. The introduction of the report contains an overview
of Volkswagen and the scandal which it is facing currently. This section also identifies the
research questions and research objectives which are further carried forward in the report.
The second part of the report describes the five stages of the Brown model and factors
possessed by each stage individually. Humanistic values which should be catered in the OD
interventions and limitations of the process of OD interventions are also discussed in this
section. The Gantt chart is also drawn in order to find out the time which will be taken by the
OD practitioner to complete the whole process of intervention. The third section of the report
contains the application of the Brown five stage model in the Volkswagen. It has been
identified in this section that the main reasons behind the declining sales, profit and brand
image are the recent emission scandal, which has occurred due to the cultural issues in the
organisation. The authoritarian style of leadership is another reason behind the scandal which
has been highlighted in this section of the report. The action plan is also defined to overcome
it which possesses the implementation of transformational style of leadership so that the
workers can approach the leaders easily in order to suggest beneficial ideas. The tools for the
monitoring and stabilisation of this intervention are also defined which contains different
policies and evolutionary criteria to judge the performance of leaders of Volkswagen. The
conclusion is also drawn which depicts that the company can overcome its ongoing issues
with the application of interventions identified.
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Table of Contents

Executive Summary ................................................................................................................... 2

List of Appendices ..................................................................................................................... 4
1 Introduction ........................................................................................................................ 5
1.1 Research Project Questions ........................................................................................ 5
1.2 Project Objectives ....................................................................................................... 6
2 OD Method of Inquiry ........................................................................................................ 6
2.1 Brown 5 stage model ................................................................................................... 6
2.2 Humanistic values of OD and Ethical considerations ................................................ 7
2.3 Limitations of OD and Secondary research ................................................................ 8
2.4 Gantt chart ................................................................................................................ 10
3 Application of Brown’s 5 Stages Model .......................................................................... 10
3.1 Need for Change........................................................................................................ 10
3.2 Client-Practitioner relationship ................................................................................ 12
3.3 Diagnostic Phase....................................................................................................... 13
3.4 Action, Plans, Strategies and Techniques ................................................................. 14
3.5 Monitoring and Stabilisation .................................................................................... 16
Conclusion ............................................................................................................................... 17
4 Reflection on Employability Skills................................................................................... 19
4.1 Development of Soft skills ......................................................................................... 19
4.2 Functional Skills........................................................................................................ 19
4.3 Development of Compliance Skills ............................................................................ 20
4.4 Conclusion................................................................................................................. 20
References ................................................................................................................................ 22
Appendices ............................................................................................................................... 26
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List of Appendices

Appendix 1: Gantt chart ........................................................................................................... 26

Appendix 2: Revenue of Volkswagen ..................................................................................... 26
Appendix 3: Brand Value ........................................................................................................ 27
Appendix 4: Net Income of Volkswagen................................................................................. 27
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1 Introduction
According to Hotten (2015), Volkswagen is the company which is involved in the scandal of
manipulating the software which is used in their cars for the falsification of the data. They
have reduced the trust of the government and members of the society by presenting false
information about the car emission. The image of the company is greatly tormented as a
result of this misrepresentation of data and their opposition in the automobile industry is
shattered (Ewing, 2015). The company was also planning to deceive the customers and
public by selling millions of cars on the basis of false information. All these frauds resulted in
the high penalty and the company is now paying the US $14.7 billion to the United States
court as the scandal appears there (Rothfeder, 2016). The company is now in need of the OD
project to regain its original position in the automobile market. For the organisational
development intervention, it should be noticed that the corporate social responsibility and
ethical consideration have a great impact on the organisation image (Phillips, Phillips and
Zuniga, 2013).

The business processes also take the impact of these factors which is helpful in developing a
good image of the company as it identifies that the company is working for the welfare of the
society. The practices of corporate social responsibility are easily identifiable as they usually
involve charitable funds, the building of educational institutes etc. Another point which
should be noted to improve the position of the company is that the decisions which are made
by the external forces also have a great impact on the image of the company (Crête, 2016).
External forces are mainly the shareholders of the company and their impact is evident from
the decline in profit by 54% which is resulted due to the decline in share price of Volkswagen
by 28% (Murphy, Menzel and Votsmeier, 2017).

Sustainable environmental practices are also necessary for the improvisation of the company
performance. It is basically maintained by the leaders which are present in the company.
However, due to the presence of poor leadership in the Volkswagen, the company was unable
to implement sustainable practices and deceive the customers for the maximisation of profit
(Preston, 2015). However, the company now needs an OD intervention which will be helpful
in the effectiveness of the performance.

1.1 Research Project Questions

1. Bridging the performance gap (in terms of company image, sales and profit) by
applying Brown’s 5 Stage Model?
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2. How is performance gap (decreasing sales, image and profit of the company) at
Volkswagen caused by emission scandal by the company?

1.2 Project Objectives

1. To facilitate the client understanding of the need for change at VW to bridge the
performance gap identified at VW.
2. To establish effective client-practitioner relations and diagnostic tools to determine
the cause of the performance gap identified at VW.
3. To develop the action plan for bridging the performance gap at VW and an evaluation
tool to assess the effectiveness of the action plan.

The objectives are focused on the clearance of the current image of Volkswagen by the
implementation of OD interventions in the company.

2 OD Method of Inquiry
2.1 Brown 5 stage model
According to Brown (2010), following is the five-stage model which can be used for OD
intervention.

1. Need for Change

It is the first step of the development model. It is important because it is compulsory for an
organisation that the need of change should be anticipated before implementing the change. It
means that the managers should identify that what are the areas which require improvements
and to what extent the change is required. It should be noted that organisations need changes
due to the positive or adverse effect on the growth or any changes which resulted in the
innovation or advancement of technology. To gain the competitive advantage is also one of
the main reasons behind the need for change (Brown and Harvey, 2011).

2. Client-Practitioner Relationship

This step identifies the relationship between the OD practitioner and the customer to whom it
is delivered. It is discussed in the step that the main success of an organisation depends on the
effectiveness of the communication process. It has also been highlighted that the first
impression is the key to establishing a good process of communication (Brown and Harvey,
2011).

3. Diagnostic Phase
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In this step, the analysis is done about the situation by OD practitioner and the client so that
the relevant data can be gathered to solve the issue. It is helpful in understanding the client's
problems so that the effective results can be suggested for him. It is recommended that the
diagnosis should be catered with concentration to save the cost and time spend on it
(Cummings and Worley, 2014).

4. Action, Plans, Strategies and Techniques

After the phase of diagnosis, it will be identifiable that what are the problematic areas and
what are the issues faced by them. Therefore, to resolve the issues, actions will be taken and
the plans will be made which, according to the practitioner, will be effective for the solution
of pertaining issues in the organisation. The technique of TQM is mostly applied by the OD
practitioner in this phase (Cummings and Worley, 2014).

5. Monitoring and Stabilisation

After the program designed by the OD practitioner is implemented, the last step is the
evaluation of the results and outcomes derived from it. The effectiveness of the change
strategies will be evaluated in this step by comparing them with the original objectives. It is
done to ensure that the change strategy which has been implemented has a positive impact in
the stabilisation of a company (Brown and Harvey, 2011).

2.2 Humanistic values of OD and Ethical considerations

Humanistic Values

According to Garavan and McGuire (2010), following humanistic values have been identified
in the organisational development.

1. The people should be respected and provided with the opportunities to groom
themselves. They should also be treated with respect and their work should be
dignified.
2. The confidence and support should be given to the people working in an organisation
as it is helpful in increasing the productivity of employees.
3. Equal opportunities should be provided to the members of the organisation as the
inequality will lead to the decline in the performance of the workers.
4. The employees should be allowed to express their views regarding the achievement of
different organisational goals as everyone possesses different skills and experiences.
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It should be done in order to achieve the goals of an organisation in an effective

manner.
5. The environment should also be developed in such a manner that the employees found
it challenging and exciting for the purpose of work.

Ethical Consideration

Following are the ethical considerations which are identified for the OD practitioner.

 Entry and contracting (primary research): It should be assured by the practitioner

that the agreement between client and practitioner is based on the consent from both
and the contract should be made in the best interest of the company (Anderson, 2013).
 Data Gathering (secondary research): The client should be communicated with all
the potential risks and expectations related to the process of change. No unrealistic
expectations should be provided to the client (Cavico and Mujtaba, 2016).
 Intervention: The intervention process requires time and amount which should be
allotted to the OD practitioner effectively so that the process of intervention can be
catered in an effective manner (Cavico and Mujtaba, 2016).

2.3 Limitations of OD and Secondary research

Limitations of OD

According to Ajmal, Helo and Kekäle (2010), following are some limitations of the
organisational development.

1. It is a time-consuming process. The steps including the planning of the intervention

and then the implementation of it require a huge amount of time which is not feasible
for every organisation.
2. The expenditure on the organisational development is also sometimes quite
extravagant which makes the organisations reluctant to it.
3. The organisation development program provides delayed payoff sometime due to
which it is not much appreciated by a number of organisations.
4. There is always a possibility that the program of organisational development may fail
due to some human or non-human factors.
5. The organisational development sometimes becomes a threat for the companies as the
information may be leaked from the organisation as a result of OD.
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6. The process of organisational development emphasises on the group process. If the

group does not appreciate the ideas of OD, the performance of the organisation might
be affected.
7. It is always a possibility that the concepts and processes which are communicated by
the OD to achieve the potential outcomes may not be understood by the employees
involved in it.

Secondary Research

According to Daft and Marcic (2016), organisation development consultancy projects include
the previous studies and data for the analysis. It will also be used in the designing of
constancy plan. The scandal of Volkswagen will be analysed on the basis of the articles
which are already published. However, it is beneficial for the OD practitioner to use
secondary data in this case as he has an idea about the underlying details of the scandal
(Cummings and Worley, 2014). The strength of the use of secondary data is that the basis of
the research can easily be identified with the help of it. It will also be helpful in saving the
cost and time and provide the detail insights about the issues faced by a company (Frandsen
and Johansen, 2016). However, Hyatt and Harkavy (2016) highlighted that the presence of
secondary data in bulk will create issues for the company as the analysis will become
difficult. It is also highlighted that there is some privacy maintained in compiling the data by
the organisations which will affect the reliability and effectiveness of the results.
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2.4 Gantt chart

Appendix 1: Gantt chart

(Source: Project Plan)

3 Application of Brown’s 5 Stages Model

According to Blackwelder et al (2016), Volkswagen established in 1937 in Germany and
involved in the manufacturing of automobiles. The main motive of the company was to
provide affordable vehicles to the members of society. The continuous efforts by the
company earned itself an achievement of one of the largest automobile firm in 2014, having a
market share of 13% in the International market by selling 10.1 million vehicles in the same
year. However, the company shocked the financial world in the year 2015 when it was found
accused with the scandal of diesel emission. Volkswagen, since then, is struggling with the
efforts to regain its previous position in the automobile industry. The company has decided to
apply the OD interventions in the form of Brown's five stages model which is discussed
below.

3.1 Need for Change

After the occurrence of the scandal, the management of the company decided to analyse the
reasons behind this accusation and come up with the results that the company has been
suffering from the unethical practices and authoritarian style of leadership (Reuters, 2015). It
has also been identified that the company is not complying with the ethical considerations as
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they were not communicating all the information with its clients transparently which also
made a big impact on the occurrence of the scandal in 2015. According to Murphy, Menzel
and Votsmeier (2017), the company was continuously involved in the miscommunication of
the information in order to increase the sales. All these facts resulted in the penalty of $14.7
billion for the company which is the highest till date. After the settlement of the penalty, the
company is now working on the organisational development interventions in Volkswagen in
order to regain its original position in the automobile industry. It has been highlighted that the
company is facing various issues which need to be corrected.

The first issue which is faced by the company is related to unethical practices. Unethical
practices are those which are against the legal and regulatory compliance defined by the
authorities related to it. The unethical considerations in the Volkswagen included the
manipulation of the software which resulted in the increased amount of sales which can be
identified in Appendix 2 of the report.

According to Cavico and Mujtaba (2016), the company was also involved in the falsification
of information about the emission of diesel which was resulted from the use of the
manipulative software. The emission was calculated to be 40% more as compare to the
percentage of pollution which can be emitted by the vehicles. For the rectification of this
issue, the company is now working towards the implementation of good leadership so that the
ethical grounds can be met. Volkswagen is also assuring its clients that the vehicles will now
be made according to the regulations which are designed by the US government for the
emission of diesel (Viswanatha and Spector, 2016). The company is also offering the
goodwill program which will give away an amount of $1000 and also free roadside assistance
for three years (Schuetze, 2016).

Another issue which has been highlighted by the management of the company is the
authoritarian style of leadership in the company. According to Reuters (2015), the FBI search
identified that the manipulation of the information was done by the orders of the leaders of
Volkswagen. The chief of VW works council quoted that the company needs an environment
where the employees can freely talk to their supervisors and leaders regarding the issues
prevailing in the company. It was also highlighted that there are two boards present in the
German companies, one is management board which is led by the CEO of the company and
the other is a supervisory board which is responsible for hiring and firing in the company. It
was also identified that in 2013, VW chief in the US was fired by the supervisory board as he
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was unable to meet the sales target. For the resolution of this issue, the management of the
company has decided to apply certain measures which can ensure the dignified relationship
between the employees and leaders of the company. It will be done so that the company can
clear its bad impact on the public which is previously developed as an authoritarian company.

3.2 Client-Practitioner relationship

The second step which should be considered necessary for the Volkswagen for the
implementation of the organisational development process is a client-practitioner
relationship. It is important because the effective communication is helpful in bringing the
effective results. It should also be noted that if the proper communications channels are not
utilised by the company and practitioner, the outcomes will not be very efficient which will
ruin the whole purpose of the organisational development process (Bendek, 2016). After the
occurrence of the crisis, the company is suffering from the decreasing brand image.
According to Bradshaw and Yeomans (2015), the directors of the company think that the
company cannot continue under the same name as the reputation of the brand name has been
tormented due to the scandal. They are considering the idea of rebranding which is not much
easy to be implemented. However, there are few who think that the company can undergo
with its operations in future with the same name as the rumours will be faded out soon. It has
been decided that the former Porsche manager will take over the company as new CEO
which will open the door for new communication channels. For the retention of the brand
name, it is necessary for the company that in-house communication and also the
communication which is taking place externally should be dealt in an effective manner for
better results (Zhou, 2016).

It is also decided by the company that it will work together with different institutions such as
Federal Trade Commission so that the sustainability of the operational activities of the
organisation can be ensured. It will be a difficult task for the change the name of the brand as
it has been using this brand name for moiré than 60 years and it is recognisable by millions of
people around the globe. However, the things become quite complicated for the company and
it is not possible to clear the image of Volkswagen any sooner (Zhou, 2016). The company is
applying the organisational development intervention for the purpose of regaining its brand
image; therefore, it is advised to the company that the management of Volkswagen should
communicate all the potential possibilities with the OD practitioner so that the optimum
results can be achieved from this practice.
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The brand image is affected by many factors; however, in the case of Volkswagen, it is
basically its corporate social responsibility. According to Gelles (2015), the company
communicated with the clients that it will be providing the cars which are good for the
environment and does not provide any toxic materials which can harm surroundings. But, this
was not the actual case. The company manipulated the software in the cars as the cars and the
German engineers rigged almost $11 million from the sales of these cars. However, the
company had to pay a lot more because of it than it could ever imagine. The reputation of the
company is still in infamy as the customers are unhappy about the misleading information
from the company they have been trusting for about 60 years. After the failure of
Greenwashing, it has now become necessary for the company that the communication with
the customers and OD practitioner should be transparent and done through proper channels as
the failure to do so will harm the company again. According to Zhou (2016), the company
also decided to restructure the culture of Volkswagen in such a way so that the
communication among the employees and between leaders and supervisors can be done in an
effective manner. All these efforts will be done to regain the original position of the brand
Volkswagen which is possible through client-practitioner relationship.

3.3 Diagnostic Phase

Diagnostic phase of organisational development identifies that what are the main issues in the
organisation which require OD interventions. After the occurrence of the scandal, it is
identified by the management of Volkswagen that there are certain reasons behind the
defamation of the company. The company highlighted that the decreasing level of client
satisfaction results from the emission of diesel and use of manipulative software which is the
core essence of the current Volkswagen scandal (Bignami and Zaring, 2016). It is also
highlighted by the management that the culture which existed in the organisation was also not
suitable for the employees and resulted in the consequences which are faced by the company
at this time. According to Glazer (2016), the CEO of the company, Martin Winterkorn was
aware of the fact that the cars were emitting the diesel which is more than allowed
percentage. However, rather than resolving the issues related to the engine, the CEO installed
software of worth $11 million in the cars globally which did not serve the purpose. The
culture of the organisation is the main reason behind this ineffective decision. It was also
soon realised by the employees that the authoritarian decisions of the CEO resulted in the loss
for the company.
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Newman (2016) also highlighted that the cultural differences within the organisation were the
main reason behind the occurrence of the scandal of Volkswagen. He also argued that it may
be a possibility that all this is just a blame game and there was no such thing as cultural
difference; however, the facts denied this argument. Culture plays an important part in the
organisational success as the strong culture depicts strong organisation. It is because the
managers and leaders guide the subordinates about the paths which are to be taken for the
achievement of organisational goals in an effective manner. This process also involves
suggestions from the employees so that their participation can be assured. This is also helpful
in boosting the confidence of the employees as they feel confident about the decisions or
suggestions they provide to in the achievement of organisational goals efficiently.

Volkswagen is now thinking about applying the organisational development interventions to

improve its image which has been damaged due to the recent scandal. For the purpose of this,
the management can use survey questionnaires, 7S model or personal observation as all these
techniques are helpful in the identification of any other issue which exists in the company
other than cultural issues. It has already been highlighted that the company has suffered such
consequences due to the cultural issues. For the resolution of this, Volkswagen now wanted a
strong leadership which can be helpful in eradicating the authoritative culture which has been
prevailing in the company in the past years. It has been identified that the previous
management has resigned from the company which can be a new turning point as the new
managers will bring in new thoughts and culture with them which can be fruitful for the
Volkswagen. The OD intervention in this area can be done by ensuring that the practices
which will be applied by the management contradict with the previous practices so that the
motivation of the employees can be build up so that they work hard with the management in
achieving the previous position held by the company (Ndedi and Feussi, 2015).

3.4 Action, Plans, Strategies and Techniques

After the diagnosis of the main issue, the step which comes next is taking the action. In this
step, OD practitioner plans an action plan which can be implemented to resolve the issues
prevailing in the company. In this step, strategies are also designed which defines the
guidelines that should be considered while implementing the action process. A good action
plan can only be made if the problems in the organisation are effectively sorted out. Failure to
do so will result in the failure of action plan and strategies which will be made to resolve the
issues. It has been identified in the diagnosis section that the main issue which is being faced
by Volkswagen is the decreasing profit, sales and brand image. The brand value of the
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company has decreased by $10 billion in 2016 as compare to 2015. The brand value of
Volkswagen can be identified in Appendix 3 which shows the brand value for both the years.
The company is also suffering from the huge decline in the net income which can be
identified in Appendix 4.

All these issues occurred as a result of the scandal of dieselgate emission which happened
due to the cultural differences and style of leadership which was prevailing in the company.
The management of the company identifies that the cultural issues in the Volkswagen can be
sorted out with the help of transformational leadership style. It is totally different from the
authoritative style which was being faced by the employees of the company until now.
Transformational leadership is very similar to the charismatic style of leadership in which a
leader, together with his subordinates works towards the achievement of organisational goals
(Avolio and Yammarino, 2013). The transformational leader possesses the skills of integrity
and fairness and respects the suggestions from the subordinates which are helpful in building
the confidence of the employees. It is also useful for motivating the employees and may also
increase their productivity and the organisational goals can be achieved in moiré effective
manner (Pieterse et al, 2010).

OD practitioners in the Volkswagen will suggest applying the transformational leadership

style in order to regain the previous levels of revenue, profit and brand image enjoyed by the
company. However, the process will be time-consuming as the damage is extensive. The
application of transformational leadership will likely to turn around the consequences faced
by the company as the dignity of the employees will be resumed and they will be able to
approach the leaders freely for reporting or resolving any possible issue which may likely to
occur in the company (Avolio and Yammarino, 2013). It has also been identified by the
management of the company in the diagnosis phase that the communication channels which
are present in the company are not much effective. Transformational leadership will also
overcome this difficulty as the leaders following this style are good at communication and
ensure that the goals are clearly defined to the subordinates so that they do not have any
ambiguity, otherwise, difficulties may be faced in the achievement of it. It should be assured
by the OD practitioners that the issues faced by the company will be resolved by following
this practice as it involves time and cost of the management of the Volkswagen. Therefore, it
is understood that the company wants optimum results from the process of organisational
development intervention so that its purpose can be served effectively in clearing the image
of Volkswagen (Pieterse et al, 2010).
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3.5 Monitoring and Stabilisation

After the implementation of the action plan, the tools and techniques will be defined for the
evaluation so that the effects of OD interventions can be judged. Evaluation of the process is
necessary so that the comparison can be done between the expected and actual results. This
will be helpful for investigating the results from the application of the process of OD
intervention. It has been identified that the 360-degree feedback will be the best tool for the
evaluation as it provides the employee's confidentiality and they can share their experiences
without mentioning their names. The 360-degree feedback can be defined as the method
which is used for the measurement of the performance of employees by taking views from
other co-workers and supervisors. IN the Volkswagen, this method will be feasible as it will
identify the actual results which are derived from the interventions of organisational
development as the workers will have the confidence of privacy of their views (Burkeand and
Noumair, 2015). If the results of the feedbacks are favourable, it means that the company is
successful in implementing the process of OD intervention with the help of the practitioner.
However, if the actual results are lower than expected, it will conclude the failure of the
process.

There are various other advantages of the use of 360-degree feedback as a tool of evaluation
which is discussed below.

1. Feedbacks from more than one source: Due to the application of the 360-degree
feedback, the views of various clients can be received by the company which is
helpful in evaluating the performance of the desired process more effectively (Hensel
et al, 2010).
2. Development of team: It is helpful in building the effective relationships between
team members so that they can work together towards the achievement of the
organisational goals (Hensel et al, 2010).
3. Performance Development: 360-degree feedback is helpful in the performance
development of the organisation and also the development of the employees working
in it (Hensel et al, 2010).
4. Career Development: This tool is also helpful in the career growth of the employees
as the workers with the positive feedback will be entertained with the bonuses and
appraisals in income (Hensel et al, 2010).
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These advantages identify that the Volkswagen can get better results if the 360-degree
feedback is applied for the monitoring of the process of OD intervention. However, there are
some disadvantages of this process also which should be considered by the management of
the company beforehand to avoid any issue in the future. The limitations of this process are
discussed below.

1. Exceptional Expectations: This is the main drawback of the process. It is often

forgotten by the management that this tool is only a part of the whole performance
management system and they expect the exceptional results from the application of
this tool. However, the results have quite limited exposure (Aggarwal and Thakur,
2013).
2. Downfall of the Design process: The process of 360-degree feedback is often
implemented after the recommendation from the human resource department. It
means that other employees may not be familiar with the process of 360 feedbacks
(Aggarwal and Thakur, 2013).
3. Information is not sufficient: The information which is collected with the help of the
360-degree feedback maintain the confidentiality of the employees who give the
feedback which has an adverse effect sometimes. It means that if the management has
to ask about the clarification of the feedback provided, they have no idea to whom
they may approach (Aggarwal and Thakur, 2013).

However, if these advantages can be overcome, 360-degree feedback is the best tool for
evaluation of the OD interventions in Volkswagen.

Conclusion
In conclusion, it can be said that the organisational development intervention will play an
effective role in solving the issues which are faced by the Volkswagen as a result of the
scandal related to the emission of diesel and manipulating the software installed in the cars. It
has been identified in the report that the company will choose Brown five stage model for the
OD intervention, the application of which can draw some fruitful results for the company in
future. The basic goal of the company at this time is to regain its position as a market leader
in the automobile industry which is not easy. It has been identified in this report that the main
reason behind the occurrence of the scandal was the culture of the organisation. It is also
highlighted that the CEO of the company had an authoritative style of leadership which led
the company to these disastrous circumstances. The communication gap in the organisation is
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also another reason of the loss faced by the company. The report also discussed that the client
satisfaction and trust are badly shaken due to the misrepresented information by Volkswagen
and it will require a lot of time to regain the same level of confidence. The application of the
Brown five stage model identifies that what areas will be considered for the intervention and
what type of OD interventions will be done in them.

The first phase of the model identifies that the main issue lies with the culture and style of the
leadership which was prevailing in the organisation. It has also been suggested that to
overcome this situation, the company will have to develop effective communication channels
which involve the participation from employees in order to gain their confidence that the
suggestions which will be made by them will be respected and considered. The second step
emphasises on the relationship between client and practitioner. This area highlighted that the
communication channels which were used by the company will not be effective during the
communication process in OD interventions. Therefore, the company is required o apply such
channels through which the transparency of information can be ensured so that the results can
be beneficial for the company in future. The third step of the model is the diagnostic phase in
which it has been identified that the management of the Volkswagen can consider the tools of
the 7S model, survey questionnaires or personal observations so that any other issue other
than cultural differences can be highlighted. After this, in action plan, it has been discussed
that what will be the criteria which will be followed by the company to overcome the existing
problems. As the issue is related to cultural differences, it is highlighted that it can be
overcome by strong leadership. Finally, the evaluation criterion is also defined in the report
which will be used to analyse the results of the new leadership and other organisational
development interventions on the performance and reputation of the Volkswagen.
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4 Reflection on Employability Skills

It has been identified that the Volkswagen is suffering from the issue of declining revenue,
profit and brand image. It is also highlighted that to overcome this issue the company is
applying OD interventions which will be applied by the OD practitioner. In my opinion, as an
OD practitioner following are the skills I should possess for the application of the process of
organisational development in more effective manner.

4.1 Development of Soft skills

I think that soft skills are most important for my success as OD practitioner. It is because the
soft skills include the communication skills of the person and also his ability to negotiate with
the clients and resolving the conflicts. The negotiation skills can be developed with the
passage of time or the training can be taken to improve these skills. The ability to resolve the
conflicts mostly generate from the experience but, there are certain courses and training
provided by various institutes and organisations which can help in improving the conflict
management skills. Communication skill, which is the most important soft skill, can be
developed with the help of team meetings or different activities in the organisation which
requires communication with the co-workers. Personally, I think that the communication
skills are above average and I will not face any issue in the future regarding this. However,
my negotiation skills are not good for which I have decided to attend the training related to
the enhancement of this skill so that I can be of better use to the organisation. I will also
consider the online training to improve the soft skills as they are less expensive and more
affordable. For improving the conflict management skill, I have decided that I will try to
initiate the solution to any issue which is created in the organisation or among the employees
working in the company. I know that the soft skills are necessary for good team building also;
therefore, I will use all the possible ways including training sessions, different courses etc. to
enhance my level of soft skills.

4.2 Functional Skills

The functional skills will be important for me and for my role as OD practitioner because it
includes the hard skills. It means that these skills define the capability of a person to analyse
the data, operations of the equipment etc. In the case of Volkswagen, the functional skill
which is necessary for me is the analysis of the current situation so that the main reason
behind the scandal can be highlighted and the optimum solutions can be defined for it. I think
that my data analysis skills are nit good and I will have to work hard on improving it,
 20

otherwise, it will affect my career as an OD practitioner. For improving the data analysis
skills, I have decided to take courses which provide guidelines to analyse the environment of
the organisation and also the data possessed by it. It will be helpful for me because there is a
large amount of primary and secondary data present on the Volkswagen which is needed to
be analysed carefully. If the data is not analysed properly, the whole process of the
organisational development intervention can fail. It is because the reasons behind the scandal
will be identified only with the effective data analysis. The action plan will be made
according to the identified reasons. Therefore, if the reasons are wrongly highlighted, the
whole process will be gone on the wrong path and no outcomes will be available from the
OD interventions. Therefore, I have to work on the enhancement of my data analysis skills so
that I can contribute in the OD process more efficiently.

4.3 Development of Compliance Skills

I think that the compliance skills are also necessary for me as I am pursuing my career as an
OD practitioner. Although the compliance skills may be sometimes covered with the soft
skills and functional skills, they are also needed to be treated with consideration. In
compliance skills, the regulations are identified which is not only related to the company, but
to the whole industry. These skills assure that the operations which are going in the company
are according to the regulations defined by the industry in which it is working. These skills
will be very important for me as an OD practitioner in Volkswagen as the company just
suffered from the compliance issues. However, I think that for the development of these
skills, I will take the courses related to automobile industrial laws so that I can get more
information about the regulations already defined by the legal and regulatory institutions for
the automobile companies. I will also go through the manuals of the company and ensure that
the regulations which are defined in the company's manual are also in coordination with the
industrial laws. If this will not take into consideration, it may be a possibility that the will
face the same issues again in the future to the regulatory gaps. As an OD practitioner, it is my
obligation that I should identify all the regulations which are applying by the company and
are in contradiction with the original laws defined to avoid any potential scandal in the future.
This will also serve the reason of applying the OD interventions in the company.

4.4 Conclusion
The training and development are very important for the enhancement of the skills possessed
by a person. It also increases the chances of productivity which a company can achieve from
 21

its employees. It has been identified in the above discussion that I should possess soft skills,
functional skills and compliance skills to succeed my role as OD practitioner in the
Volkswagen. Soft skills will be helpful for me while negotiating with the management,
resolving the conflicts prevailing in the organisation and also communicating the OD
interventions with the employees and management of Volkswagen. Data analysis skill which
falls in the functional skills will be helpful for me as I will be able to analyse the
organisational environment and data and can identify main reasons behind the scandal for the
OD intervention action plan. Finally, compliance skills will also be necessary for me as they
are helpful in identifying the regulations which are applying in the company and possess
potential risks for future.
 22

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Appendices

Appendix 2: Gantt chart

(Source: Project Plan)

Appendix 3: Revenue of Volkswagen

(Source: Volkswagen, 2016)

 27

Appendix 4: Brand Value

(Source: Pinto, 2015)

Appendix 5: Net Income of Volkswagen

(Source: Volkswagen, 2016)