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Sergio Marchionne And The Chrysler Group

703 words - 3 pages

In the observation of Sergio Marchionne and the Chrysler group there were many things that needed to change within the organization to make it survive not only the recession but the future in a competitive leading edge automobile industry. There were a couple of observable artifacts, and a Hieracicial framework that may have led Chrysler into bankruptcy. It is still not clear if Chrysler has changed the Vision statement for the organization, but after a review it is clear that it is customer focused. I found it interesting that Mr. Marchionne did not purchase Chrysler, it was a Government agreed merger with Fiat (“Fiat, Chrysler and Sergio Marchionne,” n.d.) Sergio Marchionne was able to change the culture and combine two companies in two countries and managed to boost sales and profit. (Clothier, n.d.)
The Chrysler Company had observable artifacts such as the executive tower set apart from the engineers which indicates a Hierarchical Value framework. This is where everyone below the CEO is subordinate to someone (Colette L. Meehan, n.d.) With this structure there is middle management which may hinder production and is costly, yet allows for promotion. High rebates, which is one of Chryslers Espoused Values, to sell more cars in a bad economy. The espoused values in the Car manufacturer is sales volume not Profit margin, giving double discount in a declining economy would produce sales volume. Mr. Machionne sought to change the Hierarchical Value Framework and produce a company with a flatter more productive team (Colette L. Meehan, n.d.) He found the easiest way to provide PE Fit was to have 15 minute interviews of employees at different echelons in the company to find the right employees for his new initiative, to get the company moving in the right direction and change the ways of doing business (Kreitner & Kinicki, 2013) and by having 26 Executives reporting directly to him, this almost eliminates the competition for a higher position as well as put more control in his hands as far as how the company employees perceive his management. Complacency within Chrysler to be 3rd behind GM and Ford was not the vision...

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