Mr. Marchionne's Four Mechanisms For Changing Organizational Culture

There are four mechanisms for changing organizational culture. The four types are the leader is responsible for the organizational change, the process of culture change begins with targeting one of the three layers of organizational change, aligning corporate culture with the organization’s vision and strategic plan, and using a structured approach (Kinicki & Kreitner, 2012). Mr. Marchionne used all four mechanisms to change the culture at Chrysler. The first mechanism of cultural change is that it comes from the leader. The leader recognizes the need for cultural change and is responsible for it. Mr. Marchionne leads the culture change at Chrysler. He changed the business tactics to support profitability. He terminated executives that did share his change philosophy. He changed the vision statement to align
The three layers are observable artifacts, espoused values, and basic assumptions. Mr. Marchionne targeted one of Chrysler’s basic assumptions. Chrysler and the Detroit automotive industry had the same assumptions to address slumping sales. The premise was to offer deep rebates. The problem with this assumption was that the strategy did not produce long-term profitability. The Industry used this approach yet still ending up in bankruptcy in 2008. The CEO understood that this philosophy led the company to the brink of bankruptcy. Mr. Marchionne’s vision is to build quality vehicles that consumers want to purchase again. The strategy will yield sustained profitability. The third mechanism is aligning corporate culture with the organization’s vision and strategic plan. Mr. Marchionne’s charge was to make Chrysler profitable again. He did this by changing the vision statement to focus on profitability. He turned the strategy to focus on new product offerings and end excessive rebates. He aligned the corporate policy in support of the corporate