Chrysler-Fiat Merger
Leadership in a Merger: Chrysler and Fiat
Role and Function of Leadership
Leadership is a dynamic, involved, and personal endeavor. The act of leadership encompasses many variables from personal interests of the leader to modeling what is right rather than what is wanted. There are Five Practices of exemplary leadership: model the way, inspire a shared vision, challenge the process, enable others to act, and encourage the heart (Kouzes & Posner, 2007). The most successful leaders attempt to model what they are expecting of others; especially in a rapidly changing climate. Modeling can be one of the most effective ways leadership can encourage the outcome of change they wish for in a corporation.
Leaders establish and maintain credibility predominantly through communication; this is especially critical during corporate mergers when a level of uncertainty can cause anxiety to overtake an organization. Communication not only consists of language correspondence but also attitude, body language, lifestyle, etc. Leaders must take all aspects of communication into account in order to establish credibility and emphasize a positive relationship with a new community of workers (Wall, 1998). It is also imperative during a merger that there is an understanding of benefit for both sides. It doesn’t matter how much give and take is in the relationship if one or both parties do not understand the circumstances or benefits of the new relationship. This idea and the common “hammer fix” can disintegrate credibility; the hammer fix is the quick fix that does not get to the root of an issue and simply forces a band-aid like fix (Wall, 1998).
Leadership style and credibility weigh heavily on the success of a merger from both the acquiring side and the acquired side. There are several noted aspects of leadership that should be addressed when a merger is coming to fruition: relational, inspirational, supportive, and stewardship administration (Sitkin & Pablo,
Role and Function of Leadership
Leadership is a dynamic, involved, and personal endeavor. The act of leadership encompasses many variables from personal interests of the leader to modeling what is right rather than what is wanted. There are Five Practices of exemplary leadership: model the way, inspire a shared vision, challenge the process, enable others to act, and encourage the heart (Kouzes & Posner, 2007). The most successful leaders attempt to model what they are expecting of others; especially in a rapidly changing climate. Modeling can be one of the most effective ways leadership can encourage the outcome of change they wish for in a corporation.
Leaders establish and maintain credibility predominantly through communication; this is especially critical during corporate mergers when a level of uncertainty can cause anxiety to overtake an organization. Communication not only consists of language correspondence but also attitude, body language, lifestyle, etc. Leaders must take all aspects of communication into account in order to establish credibility and emphasize a positive relationship with a new community of workers (Wall, 1998). It is also imperative during a merger that there is an understanding of benefit for both sides. It doesn’t matter how much give and take is in the relationship if one or both parties do not understand the circumstances or benefits of the new relationship. This idea and the common “hammer fix” can disintegrate credibility; the hammer fix is the quick fix that does not get to the root of an issue and simply forces a band-aid like fix (Wall, 1998).
Leadership style and credibility weigh heavily on the success of a merger from both the acquiring side and the acquired side. There are several noted aspects of leadership that should be addressed when a merger is coming to fruition: relational, inspirational, supportive, and stewardship administration (Sitkin & Pablo,
References: Bob nardelli. a good leader for chrysler in its present plight?. (2007 , November 4). Leaders we deserve, Retrieved from http://leaderswedeserve.wordpress.com/2007/11/04/bob-nardelli-a-good-leader-for-chrysler-in-its-present-plight/ Boudette, N Fiat plays double or quits with chrysler. (2010, November 25). The Economist, Retrieved from http://www.economist.com/node/17575017 Hobbs, S Kouzes, J. M., & Posner, B. Z. (2007). The leadership challenge. (4 ed.). San Francisco, CA: John Wiley & Sons, Inc. Marchionne, S. (2009). Fiat 's extreme make over. The Australian Financial Review, Retrieved from http://newretailweb.wordpress.com/2011/02/11/review-of-harvard-business-review-article-on-fiat/ Pande, P Sitkin, S. B. & Pablo, A. L. (2004). The neglected importance of leadership in mergers and acquisitions. Mergers and acquisitions: Managing culture and human resources, Retrieved from http://www.leadershipreview.org/2007summer/Article3.pdf Taylor, A Vlasic, B. (2012, January 9). A merger once scoffed at bears fruit in detroit. NY Times, Retrieved from http://www.nytimes.com/2012/01/10/business/chrysler-and-fiat-merger-shows-fruits-of-teamwork.html?_r=0 Wall , K