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).
When Mr. Marchionne took office, he forwent the executive suite, and opted instead to sit close to his carefully selected team of managers. He created an observable artifact by putting himself amongst the people who report to him and began weekly meetings that included Chrystler’s partner company, FIAT via teleconference, and his team of 23 direct reports.
Mr. Marchionne strong armed his way into Chrysler by ensuring that he paid nothing to take on the job as CEO (Muller 2013). Once in office, he saw that vehicle quality was subpar and margins on vehicles were less than profitable (Kreitner & Kinicki, 2013 p. 86). These espoused values needed to change, and Marchionne set out to do just that. He
Pursuit of Sales Volume
High rebates and heavy discounts to increase sales
Greater market share is profitable for the company
2. Use the competing values framework to diagnose Chrysler's culture. To what extent does it possess characteristics associated with the clan, adhocracy, market, and hierarchy cultures? Discuss
Begin by looking up Chyrsler's mission or vision statement on the company's website. Now answer the following question: To what extent is the culture type you identified in question 2 consistent with the accomplishment of this mission or vision? Explain.
Which of the mechanisms for