BMW summary (0)

BMW case study Nimi
BMW was established in 1916 and has been growing strongly since that time. By the late 1980s it employed some 54 000 people, was the 7th largest automobile manufacturing company in the world, and had subsidiaries in many European countries, South Africa, New Zealand , the United States, Canada and Japan .
By 2006, BMW had 22 production sites in 12 countries and delivered 1 138 000 cars to costumers. Its major market is Western Europe (59 per cent of all cars sold), though China is an increasingly important market for luxury Rolls-Royce cars.
The company has its own six inner values, which are communication , ethical behaviour to its staff , achievement and remuneration, independence, self-fulfilment and the pursuit of new goals . This value -oriented policy came from senior managers back in 1980s. The company also emphasises extensive consultation, information sharing and seeking to establish positive interrelationships between individual changes .
In response to increased competition, market over capacity and lower working hours in Germany , BMW sought more efficient working practices . Since 1995 employees are arranged into groups (8-15 workers ) where each member has his/her own responsibility and the rotation of jobs. Groups have also spokespeople (representative role) and supervisors who are responsible for proposing and agreeing objectives, presenting progress figures , helping progress continuous improvements and ensuring that group members improve their qualifications.
Basic remuneration in BMW company consists of minimum pay rate in metalworking industry and a 10 per cent BMW supplement . The company has nine wage groups, allowing better gradations for a job well done. Moving to a higher group is possible if a worker regularly performs a higher value activity. Employees could also earn extra pay trough a personal supplement, payable for an individual´s contribution to group results.
One of the most outstanding BMW manufacturing facility is the Cowley plant . Unions in that plant won the CIPD People Management Award because of their high performance and very good teamwork . HRM had two high-profile initiatives like establishing self-directed work groups and using an employee suggestion scheme in which individual bonus payments are given in return for cost savings and production improvement suggestions. Here is some statistics how these initiatives worked:

• in 2002, production targets were exceeded by more than 60 per cent;
  
• the programme of continuous process improvement saved £10.5 million in two years 2002- 2003;
  
• in 2003 there were 14 333 employee suggestions of which 11 064 ( 80 per cent) were implemented.
  

Because of the demographic changes in the workforce, BMW has formed a project, “ Today for Tomorrow “, to help the group to adapt these changes through five areas :

design of the working environment

healt management and preventive health care

needs- based retirement models

qualification and skills

communication
The BMW company has significantly changed the working environment in motor industry. Employees have better conditions and higher wages. This is good for the entire BMW group, because workers are more productive and manufacturing cost can be decreased.