cultural change

1. It appears that Chief Executive Sergio Marchionne is trying to change the firm’s corporate culture to have less emphasis on structure, hierarchy and bureaucracy and more emphasis on results. The fact that he located his office among Chrysler’s engineers instead of in an office in the firm’s adjoining executive tower is an observable artifact of the firm’s new emphasis on collaboration. The fact that he uses video-conferencing to allow executives from Fiat to participate in his management team meetings is another observable artifact of the espoused value of collaboration. Mr. Marchionne is trying to change the basic assumption that market share = profits. The firm’s long-term use of discounting in the pursuit of high volumes is a way of strategic thinking that he wants to change.

2. The information in the case study provides some examples of each of the organizational culture types. The fact that Chief Executive Sergio Marchionne has fired executives and made others interview to keep their job are examples of the competitive nature of the market culture. Furthermore, he has created an “element of fear” in the company and he excoriated the firm’s sales chief for developing a plan to offer additional rebates during the “cash for clunkers” program. Mr. Marchionne has also displayed elements of the collaborative nature of the clan culture by locating his office with the engineers instead of in the separate executive tower and he uses video-conferencing to allow executives from Fiat to participate in his management team meetings. Mr. Marchionne also appears to be displaying elements of the hierarchy culture by stressing that vehicle quality needed to improve and the firm needed better control over its pricing. Finally, Mr. Marchionne appears to be striving for elements of an adhocracy culture by shaking things up at the firm and moving the firm away from its old ways that forced it into bankruptcy. It is hard to tell from just the information in the...
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