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Volkswagen Arc Analysis

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Explain how the "Volkswagen as Top Employer" strategy involves Architecture, Routines or Culture in solving coordination and incentive problems.
ANSWER:
Volkswagen Group pursues the goal of solving coordination and incentive problems through its "Volkswagen as Top Employer" strategy. As regards coordination issues, in relation to firm architecture, is it possible to notice two aspects: compensation and rewards. Concerning the reward's problem Volkswagen Group faces the problem with a "remuneration in line with performance" for employers. The Volkswagen Group's response to the problem of compensation is, instead, to vouch for a "Job security".
Reading the text emerges that at Volkswagen Group the best way to provide the compensation, regarding incentive problems in connection to architecture, is to offer to employers a "good working climate". On the other hand "personal development opportunities" is the way to resolve reward's aspect. In my opinion this is the strategy of the Volkswagen Group, which affects relations between the subunit and the formal and informal mechanisms that link them.
The routines allow to Volkswagen to develop better formal and informal procedures and habits for their activities. About routines in relation to behaviors, the Volkswagen Group solves the coordination’s issue in providing to their employers "attractive working conditions".
For incentive problem in relations to behavior, Volkswagen Group handles the question of fluctuations in employment in a quickly and flexibly way.
As is known, to become a successful firm is not important the success of the individual but the success of the team. In order that happens, the firm has to be able to align individual’s interests with the firm goal. Culture’s firm can play a very important role in resolving this problem and can also be a powerful instrument to create a good balance…...

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