Preview

Changing Organizational Culture Did Mr. Marchionne Use At Chrysler

Satisfactory Essays
Open Document
Open Document
386 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Changing Organizational Culture Did Mr. Marchionne Use At Chrysler
Which of the mechanisms for changing organizational culture did Mr. Marchionne use at Chrysler? Explain.

Chrysler needed a leader who would teach the employees by showing them how he thought Chrysler should operate to be profitable and competitive. “Changing culture amounts to teaching employees about the organization’s preferred values, beliefs, expectations, and behaviors. This is accomplished by using one or more of the 11 mechanisms” (Bethel, 2016 pg. 68-69). Mr. Marchionne issued formal statements of Chrysler’s organizational philosophy, mission, vision, and values. “He has ousted several veteran executives, flattened its bureaucracy and, according to people who have worked closely with Mr. Marchionne, injected an element of fear into its ranks”
…show more content…
74). Mr. Marchionne changed the location of his office, and included Fiat executives in meetings by using conferencing equipment. Mr.Marchionne desired to be with the employees who made the day to day decisions.
Mr. Marchionne organized goals for the business and conducted 15-minute interviews this was part of the associated criteria used for recruitment, selection, development, promotion, layoffs, and retirement of people. He allowed employees to interview to keep their jobs, and he promoted those that deserved to be promoted” (Bethel, 2016 pg. 76). This act showed the employees that job promotions were a result of being successful in their job requirements.
Mr. Marchionne’s reactions to critical incidents and organizational crises was swift and uncompromising. He was unhappy with the rebates that Chrysler was offering, and subsequently the employee that spearheaded the program was fired. This action showed the employees that he was committed to change within the organization, and if an employee was an obstacle to this change there was no position at Chrysler for them (Bethel, 2016 pg.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Marchionne transformed Chrysler’s culture from a hierarchy to a flatten organization and eliminated the bureaucracy (Taylor, 2010). He wanted to engaged employees on all levels and create a culture of teamwork. According to Muller (2011), Marchionne had twenty-five direct reports, and each one would report to him weekly and always available to discuss work . Marchionne understood that in order to transform Chrysler’s culture he had to invest time in his people and build relationships. As a result of his personal interest in his employees, Marchionne was able to increase production and build a positive internal and external culture.…

    • 242 Words
    • 1 Page
    Satisfactory Essays
  • Better Essays

    Henry Crapo Durant

    • 1904 Words
    • 8 Pages

    A boy born into a wealthy family, a multi-millionaire, and a reckless investor, many people would assume William Crapo Durant was much like the shrewd and cut throat entrepreneurs associated with his times. He was not. Instead Durant became a captain of industry thanks to his boundless enthusiasm and charm. He dominated meetings with intensity when dealing with top businessmen of his time, and in turn was noted as being a gentle and compassionate individual when interacting with everyday folk. His most notable business venture was without a doubt the creation of the largest industrial operation in the history of the world, General Motors. William Crapo Durant changed the face of Michigan starting in the late nineteenth century and his effects are still prevalent today. He is not remembered as well as other auto industry leaders such as Ford and Chrysler due to the fact the car that bore his name was unsuccessful, and that he died without enough funds to institute beneficial organizations such as Henry Ford Hospital or the Mott Foundation. Despite this Durant was one of the most influential businessmen of his time, and he remains historically significant in both Michigan and the nation’s history.…

    • 1904 Words
    • 8 Pages
    Better Essays
  • Powerful Essays

    Not so far into the future, he started his career at Chrysler Corporation as an investment analyst. He remained in the finance world for approximately twenty years until he accepted a position in the company’s government affairs office in Washington, D.C. Currently, Frank Fountain is Chrysler Corporation’s Senior Vice President of Government Affairs (Executive Leadership Council, 2008).…

    • 1612 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Bus/520 Week 1

    • 1008 Words
    • 5 Pages

    He devised a process that moved it towards those goals and implemented a management system to ensure the company obtained those goals. His approach he felt was mandatory since the leadership prior to his arrival led to catastrophic financial loss of over 12.6 billion in 2006 another 2.7 billion in 2007 in an evitable recession of 2008-2009. His effective leadership style led to major stream lining of the Ford product to accelerate development of new products and create a global enterprise for automotive…

    • 1008 Words
    • 5 Pages
    Good Essays
  • Good Essays

    3. which of the 11 ways to change an organizational culture has Verizon used to create its current culture provide examples to support your conclusions?…

    • 617 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Eco-112-Gs Final Project

    • 2330 Words
    • 10 Pages

    For the past 24 years of my life I have been an employee of a company called Chrysler Financial which operated as the captive financial arm for an automobile manufacturing company known as Chrysler Group LLC (Chrysler Motors) until April of 2009. Chrysler Motors is one of the big three American automobile companies that manufactures several types of vehicles which are sold not only in the United States but also worldwide. The brands of vehicles Chrysler Motors manufactures are as follows: Chrysler, Dodge, Jeep and the recently added fourth brand for their truck line named the Ram. Aside from manufacturing vehicles, MOPAR, which is short for Motors and Parts, is the automobile parts, accessories and service arm of the Chrysler Group which produces and distributes an array of automotive parts for any Chrysler-built or Chrysler brand vehicle.…

    • 2330 Words
    • 10 Pages
    Powerful Essays
  • Powerful Essays

    Throughout history, the organizational landscape has been highly competitive. Effective leadership aligned with the core corporate strategy can serve as a powerful lever to achieve success in a fast paced business environment. We have seen great leaders taking their businesses to new heights. They knew how to build great companies while treating their employees well, how to improve or change dysfunctional corporate cultures, reinvigorating tired brands and develop new strategic plans. Others proved themselves difficult to work for, stubborn and even out-of-touch. The following report analyzes the leadership of Robert Nardelli who is the chairman and Chief Executive Officer of Chrysler.…

    • 1544 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    When an organizational culture is already established, people must unlearn the old values, assumptions, and behaviors before they can learn the new ones. Executives must lead the change by changing their own behaviors. It is extremely important for executives to consistently support the change. Culture change depends on behavior change. Members of the organization must clearly understand what is expected of them, and must know how to actually do the new behaviors, once they have been defined. The culture of the change is that the sales have plummeted significantly, employee layoffs, and the departure of the president (Townsend, 2013). The role culture played in the change is that the economy changes and so do people and what they desire. What might have worked in the retail business one year might not work the…

    • 2138 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Culture and High Rebates

    • 346 Words
    • 2 Pages

    Based on the poor performance of the Chrysler organization before Mr. Marchionne took over as CEO, it is clear that the company’s previous basic assumptions were ineffective (Kreitner & Kinicki, 2013 p. 86). The main basic assumption was that a higher market share automatically equaled profits. This led to an additional basic assumption that high rebates would increase sales. Mr. Marchionne took the lead with a drive to change these basic assumptions and in doing so, he has changed Chrysler’s culture (Kreitner & Kinicki, 2013 p. 86).…

    • 346 Words
    • 2 Pages
    Good Essays
  • Better Essays

    “a Cultural Mismatch”

    • 1011 Words
    • 5 Pages

    Based on the experiences of Chrysler and Diamler-Benz AG, what is the importance of culture in the change process?…

    • 1011 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Merck's Culture

    • 435 Words
    • 2 Pages

    The way that Richard Clark attempt to change the organizational culture was first by attack the lack of communication each departments was having. “Clark set out to blast open deeply blocked channels of communication.” Clark is also getting them to more together with each other on the task at hand. He also wanted to start focusing on more on the customers and their needs instead of making a profit or his worker just trying to meet the bottom line.…

    • 435 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    After reading the case study and also researching the results of Marchionne’s cultural changes it would be hard to offer recommendations based on any failure. History does prove that he was very successful in turning around the companies financial status. This can be proven by the fact that Chrysler was able to pay off their government loans six years early (Dickens, 2012).…

    • 339 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Lee Iacocca at Crysler

    • 676 Words
    • 3 Pages

    With a vision of turning around Chrysler, Iacocca started by focusing on the three pillars of people, product and profits. His trait of promoting intellectual stimulation led him to first deal with Chrysler’s inefficient management. He fired a huge number of people, replacing them by a competent team which included – his former Ford colleagues at managerial positions, as well as experts in production quality from GM and Volkswagen.…

    • 676 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Ford motor company’s success can be credited not only Henry ford, but also to Ford's assistants--James S. Couzens, C. H. Wills, and John and Horace Dodge. By 1903 over 1,500 firms had tried to enter the competitive automobile industry. However, only a few, such as Ransom Olds, were well established (Henry Ford. 1). Ford started the production of a Model A, which mocked the Oldsmobile, and followed with several different models. Many family’s lives were changed throughout America, and the Ford Motor Company thrived.…

    • 1408 Words
    • 6 Pages
    Good Essays