Motivating employees to perform - Audi

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Societyonto its players. Talented footballers are now being lured away evenwhile they are still in the youth teams. So they are less likely toexperience a longer spell with the same club, and that makes it moredifficult for them to identify with a single club. I played for HamburgSV for ten years, and that was important to me. I’m in no doubt thata player will perform better if they identify with their club.And how does the situation look at Audi?Neumann: The bond between the workforce and the companyhas traditionally been a strong one. We’ve often had entire families,across several generations, working at Audi. We attach importanceto long-term and ideally life-long employment. Our people are trulydedicated to the company.von Cube: I believe acknowledgement of performance isanother important motivator. This could for instance take the formof greater influence, higher pay, greater decision-making authorityor personal praise. How important is acknowledgement for thesuccess of football players?Magath: It depends which individual player you are dealingwith. A young player such as Bastian Schweinsteiger has flow, and ishighly motivated by the game itself; other players, particularly themore experienced ones, need more external acknowledgement. Themedia can therefore have a very large influence on events. Everythingthat the players do is scrutinised, and every mistake laid bareby the televised highlights. But excessive praise as well as negativecomments can be detrimental. Especially if I don’t think that praiseis merited. I then have to bring the player concerned back down toearth.Neumann: We attach considerable importance to performancerelatedremuneration. We have extended the previous profit-sharingHorst Neumann:“We want ouremployees toderive pleasurefrom their work.”arrangements through our agreemententitled “The Future ofAudi”. Ten percent of any futurerise in earnings will be distributedamong the employees.But I am delighted to note thatAudi’s employees believe the acknowledgement for turning outsuccessful products is much more important than money. Simply theknowledge of having developed and built a superb car is the biggestincentive there is for Audi’s workforce. Audi models have scoopedan array of awards latterly. They have triumphed in head-to-headcomparisons, have won the “Golden Steering Wheel”, the “AutoTrophy” and many other titles, including in motorsport – not leastthe legendary Le Mans race.von Cube: Other managers have had their players running overred-hot coals. What do you think of such methods?Magath: That’s pointless. Other things are at stake, such asdependability. The players need to know where they stand. That’swhy I always try to make my announcements as clear as possible andgive individual players a clear idea of their position in the team, bothas a player and as an individual. | Ralf Nöcker30
newsIf the company is a success,its employees are a successDr. Werner Widuckel hasbeen Member of theBoard of Management ofAUDI AG with responsibilityfor Human Resourcessince December 8, 2005.He succeeded Dr. HorstNeumann, who wasappointed the VolkswagenGroup’s Board Memberfor Human Resourcesand Director of Personnelwith effect from December 1, 2005. 47-year-oldWiduckel, a social scientist by background, worked forVolkswagen AG in various capacities since 1985 beforejoining the Human Resources department at Audi inMarch 2005 as Head of Personnel Policy and Key Issues.In this article, he outlines the goals he has set himself.Audi aims to succeed in competition with other car companies. Ifwe are to achieve our ambitious strategic goals, we have to expectever higher standards of performance from our employees. It will,however, only be feasible for them to meet these rising expectationsif Audi offers its employees attractive conditions in which toperform. It is one of Audi’s strategic objectives to be a highlyattractive employer. Such an employer ensures that the success ofthe company is equated with the personal success of its employees.The quality and efficiency of the work performed within acompany depends above all on the quality of its management andorganisation. Both of these factors encourage a readiness to performmuch more than incentives which, while rewarding performance,do not in themselves provide motivation. Because people have afundamental urge to achieve things, performance is an essentialfactor in personal development. Through performance, goals areachieved; when the individual achieves goals, their ability to identifywith their work is strengthened. Performance translates intosuccess. I witness every day anew the extraordinary degree towhich our employees identify with Audi, and the passion theyinvest in making the company a success. They view themselvestruly as part of Audi, and are proud of the company’s tradition andsuccesses. What is more, the people at Audi are not merely part ofan organisation; they are part of a community of performers.However paradoxical it may sound, this community of performersencourages risk-taking precisely because it offers security.The high-performance potential of the workforce needs to bemobilised and realised through leadership. Communicating thecorporate objectives is the basis on which this is accomplished. Itmeans making all employees fully aware of the significance of thecompany’s strategic objectives and of the consequences of intensifyingcompetition for their own activities, together with the challengeto perform that this entails. Only when this communicationis effective will employees identify with the corporate strategy,accept the greater challenge to deliver even higher standards ofefficiency, quality and innovation, and show commitment to thecause. If this challenge is met with enthusiasm, it must beacknowledged. Because acknowledging performance and commitmentis the basis for appreciating what employees do andkeeping them loyal to the company. But those who demandcommitment must also allow commitment. Commitment dependson there being a certain leeway to act. The ideal of the committedemployee who shows enterprise in the way they think and act isnot one that is based on authority and obedience. Quite the opposite:if you demand commitment, you must make allowance fordisagreement. This calls for a form of employee leadership thatis characterised by respect, dependability and trust. If everyemployee is to be allowed and expected to contribute their ideason improving working processes in this spirit of entrepreneurialcommitment, they will also come to share responsibility for thesuccess of the company. This is the entrepreneurial core principleof Audi’s goal to be the most attractive employer. An attractiveemployer establishes the framework for high performance andsuccess, and a successful employer is an attractive one. The successof the company makes jobs safer, increases the scope forcareer development and advancement, and paves the way forsharing in the material trappings of the company’s success.A secure future for AudiAudi has clearly affirmed its faith in Germany as aproduction base: “The Future of Audi – Performance,Success, Sharing” is the title of the agreementsigned by the Board of Management andGeneral Works Council of AUDI AG on April 8, 2005.This agreement gives the 45,000 employees atIngolstadt and Neckarsulm the assurance thatthere will be no redundancies for operational reasonsbefore 2011. The company agreement furthermorepaves the way for more flexible workinghours and extends profit-sharing for all employees.31
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