Sergio Marchionne Chrysler Culture Change Essay

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

Case Study: Sergio Marchionne What are the observable artifacts, espoused values, and basic assumptions associated with Chrysler’s culture? An observable artifact is defined as the physical manifestations of an organization. These artifacts can include a company’s dress code, stories about the company, and rituals within the company (Kreitner & Kinicki, A.2013). The main observable artifact that Chrysler had, and the reason Mr. Marchionne was in distress was about, was the way manager Fong

Prior to Sergio Marchionne’s arrival, it appeared Chrysler Group LLC, organizational culture consisted of reacting “to falling sales by slashing prices” (Kreitner and Kinicki, 2013). Due to reduced sales volume, Chrysler had experienced major financial issues, including bankruptcy reorganization. The observable artifacts that I would suspect prior to Marchionne’s arrival would be massive advertisements endorsing Chrysler rebates, vehicle discounts, and slashed prices. After Marchionne got upset

downfall of Chrysler were due in part to “heavy discounting in pursuit of high volumes” (Kreitner & Kinicki, 2013, p.86). This has become the espoused value in the auto industry for some automakers with the belief it would help them become more financially stable. When Chrysler hired Chief Executive Sergio Marchionne, he had to change the company’s observable artifacts resulting in some long term executives being replaced with more recently hired staff. Sergio had to change the culture of employees

One would find Chrysler Chief Executive Officer (CEO) Sergio Marchionne’s approach to organizational change heavy handed. Mr. Marchionne’s decisive terminations and quick judgement calls on executives to surround himself with were a shock to the organization (Kreitner & Kinicki, 2013). Leaning more toward a Market culture in the Competing Values Framework would appear to have been a more direct and effective way to shift the direction of the organization (Kreitner & Kinicki, 2013). Control was Mr

The Great Recession in 2007-2008 really hurt some companies and Chrysler was one of them. In order to return to profitability rather than breaking even Mr. Sergio Marchionne the Chief Executive for Chrysler Group LLC felt that there need to be a culture change after his analysis of the company, thus he did just that. Some of the observable artifacts that I noticed was the weekly meeting that took place in a technology center that provided video teleconferencing capabilities which allowed the

Espoused Values, And Basic Assumptions Associated Chrysler's With Chrysler Culture. Making a sacrifice to take the automobile industry to a different level was a dream that came true for Mr. Sergio Marchionne. Taking Detroit by storm and bringing them back to life, putting them back on the map for what they do best. “For the past seven months the 57 year old italian-born Canadian has been working to shake up Chrysler and move the company away from the old ways that forced it into bankruptcy

Cultural values of a company that are heard through stories or seen in a workplace such as manner of dress, pictures, signs, or awards are examples of observable artifacts (Kreitner & Kinicki, 2013). There is a flaw to studying observable artifacts. The possibility of making incorrect conclusions exists if we are not aware of how they relate to basic assumptions. This is especially true for organizational stories shared that are problematic. Lessons of a story will not be interpreted if persons

rationale behind the Fiat and Chrysler strategic alliance. In December 2008 Fiat witnessed such a drop off in its demand for cars that they were forced to close for a month and lay off close to 50,000 workers. The company indicated that amid the financial crisis it was looking for a partner who could give the company the much needed push in the North American market. Fiat learned about Chrysler’s bankruptcy problems and put an offer on the table for the purchase of Chrysler. Experts felt the alliance

expansion since the late 1900s. This market has very successful international companies such as Mercedes-Benz, Lexis, Hyundai, Chrysler, Camry, Fiat, etc. All of these firms have held a position in the automobile industry. Even in economic hardships when demand for automobiles was decreased, the market did not faze them. Two firms prominent in this industry are Chrysler and Fiat which have both held successful positions in the late 1900s. Due to decreased market demand and lackluster products both