The Environmental Protection Agency (EPA) accused the Volkswagen company for having software that could easily detect test processes by monitoring engine operation, speed, steering and among other inputs by switching between two distinct operating modes. When the cars were being tested, the device would put the vehicle into a safe mode, allowing the engine to run under normal performance according to the expected standards. However, the engine switched off from the test mode. As such, the engines caused nitrogen oxide pollution beyond what is allowed in the United States.
The whole idea was analytical and conscious, considering the fact that the company knew it had to abide by the rules. However, they intentionally applied the “cheat” method because they wanted to grow the market share in the U.S. Considering the damage that was caused, it would be best to use analytical style of decision-making (Malhotra, 2018). The process would need more information, data collection as well as involving all parties from the bottom to the top. The cause of damage is already known but would need more in-depth scrutiny to identify solutions.
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The decision to disobey standards and instead adopt an easier way out was decided in terms of over confidence. Volkswagen had a major push to be the top at the market which they attained in 2018 by selling 800, 000 vehicles in US alone. The company was overconfident that the invented cheat method would lead them to the top without any hitches, which led to poor decision-making choices by causing more harm.
Consequently, the company has spent more on dealing with the damage such as repairing the engines as well as having to deal with lawsuits. They have set aside $6.5 billion to deal with costs, which is still not enough. Eventually, the company has had to deal with more losses as compared to what they could have avoided in the beginning if they had followed the right channels.
References
Stephanie Vozza, (2015). 5 Common Unconscious Biases That Lead To Bad Decisions . Work Smart; Fast Company, USA
Sanjay Malhotra , (2018). 4 styles of decision-making: A leader's guide
The Enterprisers Project; USA
Management in Action; How Did Decision Making Contribute to Volkswagen's Emissions Cheating Scandal?
