Case Study
Case Study 1
Section 1
In Chrysler’s case, the 21st century management principles hindered their downfall and paved a way to regain leverage. Marchionne, who is CEO of Fiat and chief executive at Chrysler effectively, implemented various management strategies to lift Chrysler out of bankruptcy. By setting objectives for the company and working through and with others Chrysler was able to move in the right direction. Marchionne came into an unsettling situation taking a huge risk. Quick decisions and changes had to be made in order for progress to be made. The first move by Marchionne was to look to the people of the company. He understood that his best source of competitive advantage was the employees and that he had to reach out to them before any other moves could be made to show the people he meant business and needed their help Marchionne moved his office all the way to the 4th floor from the executive tower. He was destroying the hierarchal system of power and being more hands on with workers of the company. Being on the same floor as the engineers and executives made decision-making more direct and fairly quicker (Boudette, 2009). Employees of the company took note to this move as one showing that everyone has importance in the company by using the management principles of the 21st century Marchionne effectively changed the atmosphere of the company. Everyone ones involvement was increased, even seen in the applicant interview process. Marchionne met with every executive to discuss opinions of every applicant. Every worker in the company was in unison so Chrysler only wanted to bring people on board who were on the same page as everyone. Marchionne gradually changed Chrysler’s culture in every aspect. Change was evident because the culture being practiced before the arrival of Marchionne led to bankruptcy. Marchionne provided reasonable pressure for goal accomplishment through example. Working seven days a week while switching through five
Section 1
In Chrysler’s case, the 21st century management principles hindered their downfall and paved a way to regain leverage. Marchionne, who is CEO of Fiat and chief executive at Chrysler effectively, implemented various management strategies to lift Chrysler out of bankruptcy. By setting objectives for the company and working through and with others Chrysler was able to move in the right direction. Marchionne came into an unsettling situation taking a huge risk. Quick decisions and changes had to be made in order for progress to be made. The first move by Marchionne was to look to the people of the company. He understood that his best source of competitive advantage was the employees and that he had to reach out to them before any other moves could be made to show the people he meant business and needed their help Marchionne moved his office all the way to the 4th floor from the executive tower. He was destroying the hierarchal system of power and being more hands on with workers of the company. Being on the same floor as the engineers and executives made decision-making more direct and fairly quicker (Boudette, 2009). Employees of the company took note to this move as one showing that everyone has importance in the company by using the management principles of the 21st century Marchionne effectively changed the atmosphere of the company. Everyone ones involvement was increased, even seen in the applicant interview process. Marchionne met with every executive to discuss opinions of every applicant. Every worker in the company was in unison so Chrysler only wanted to bring people on board who were on the same page as everyone. Marchionne gradually changed Chrysler’s culture in every aspect. Change was evident because the culture being practiced before the arrival of Marchionne led to bankruptcy. Marchionne provided reasonable pressure for goal accomplishment through example. Working seven days a week while switching through five