Sergio Marchionne Undertakes Major Strategic And Cultural Change At Chrysler Group Case Study

Lueneburger, Christoph (2014). Lessons from Chrysler: how to rev up a purpose-driven corporate culture. Retrieved from

4) Given the culture described at Johnson Engine Company. Apply the Strategy-Culture Matrix discussed in the text what implementing strategies would you select? Support your answer.

The values of the company helps to make the company more clear as to the ways the company is run. Values is what the company uses as a guide to know how to act; it is not an act, but more of a lifestyle for the company.

With these values in place makes sure that each person working within our organization models these characteristics. It helps establish priorities in daily work life and personal life and can help our organization grow. Effective organizations identify and develop a clear, concise and shared meaning of values/beliefs, priorities, and direction so that every employee understands and can

In examining the correlation between the manner in which we conduct business and the principles to which we personally ascribe, it is undeniable that we are inextricably impacted by our respective familial upbringings, social environments and academic influences. Because values play such an important role in our lives, being able to recognize, understand and articulate one’s own values set becomes critical in sound decision making. Additionally, the ability to identify an employer’s corporate

The founders of the corporation were executives with high standards of integrity, religious convictions, respect and care for its employees, customers, and the community. According to Hess & Cameron (2006), the leaders feel that they should live the values, share the vision, make others successful, as well as, manage the business. They are committed to the organization’s culture and values based on putting people first and integrity.

Values are significant because they subconsciously shape our behavior on a day to day basis. A good leader value his family as much as his organization. I care about all the people in my organization peers and subordinates alike. The atmosphere in my work environment should feel like a family. It is vital to laugh and have fun while you doing your job. This is how you boost your Soldiers moral and motivation in your organization. As longest I have this value in my life I know I can better serve my organization.

Use the competing values framework to diagnose Chrysler’s culture. To what extent does it possess characteristics associated with clan, adhocracy, market, and hierarchy cultures?

The espoused values of Chrysler were to work together as a team with management working just as close. Chrysler needed a leader to make sure that mistakes weren’t being made to cut profits, as well as, lead the new alliance that was going to take place with Fiat. “Mr. Marchionne took an

The new Chrysler culture stems from Sergio Marchionne and his philosophy of developmental relationship strength, as well as strategic planning and onboarding. The unconventional methods used by Mr. Marchionne has proven successful throughout the organization. As Mr. Marchionne explained, “mediocrity will kill you. We can’t accept it” (Welch & et al., 2009). Mediocracy, as Mr. Marchionne revealed, is not a standard in which Chrysler can afford to accommodate. Instead, it has set the bar high to increase the teamwork, motivation, socialization and internal knowledge to meet the improvement in productivity as well as the product itself. Quite the change, from the hierarchical values, basic assumptions and culture, set previously by the organization of employee’s roles and knowledge being taken for granted and unappreciated.

“Agree: Conger (1991) states to create a meaningful frame for an organizational mission, values and beliefs are an essential component – especially those that reinforce commitment and provide guidance for daily actions. Their selection is crucial since they are the mechanical guts that power the vision’s acceptance and accomplishment. By selecting and amplifying specific values and beliefs, the leader further frames interpretations of events, problems, or issues as they relate to the vision.”

When Sergio Marchionne first took the helm at Chrysler he was handed a company that had just declared bankruptcy and accepted a bailout loan from the U.S. government (McNulty, 2014). Needless to say, it was not a successful culture. He knew before he would ever see success he would have to change the way employees behaved, what they valued, what they expected, and make them believe that with his guidance they could be successful again. He knew he would have to change the entire makeup of the organizational culture. Here I will outline some of the mechanisms Marchionne utilized to change the organizational culture of Chrysler.

An essential component of leadership is to articulate and exemplify the organization's core values. These values must be clear, compelling, and repeated. The leader must both "walk the talk" and inspire his/her colleagues within the organization to also live these values. Values are at the core of individual, group or organizational identity. Values are relatively enduring conceptions or judgments about what is considered to be important to an organization. Agreement between personal and organizational values result in shared values which constitute the benchmarking of a successful business practice.

Ghosn’s philosophy of change leadership was already developed at Michelin based on three principles: “assume nothing (find answers within the company); work fast; and earn trust and respect with strong results.” He diagnosed the complications that Nissan had as internal. His initial analysis was that the “company culture emphasized narrow, functionality based thinking at the expense of a larger strategic view.” Based on this analysis he formed cross functional teams bringing executives from all statuses and geographical locations to brainstorm and recommend solutions within three months. The plan was clear and straightforward: reduce procurement costs; reduce debt; and close plants that weren’t viable and introducing new models. These

A company 's values are the beliefs, traits, and behavioral norms that company personnel are expected to display in conducting the company 's business and pursuing its strategic vision and strategy.