The Culture of Chrysler

Topics: Organizational studies, Organizational culture, Organizational structure Pages: 2 (687 words) Published: July 23, 2013
The Culture of Chrysler
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. The main observable artifact that Chrysler had and the reason Mr. Marchionne was upset about was the way manager Fong doubled rebates in order to make sales. This tactic was part of the culture that led to the company not being profitable. Another observable artifact came with the changes Mr. Marchionne implemented such as his weekly meetings with his staff. Espoused values can defined as the normal standards in which a company conducts business. A couple of espoused values that mentioned are the “margins and vehicle quality needed to improve and better control over pricing was imperative” (Kreitner, Kinicki, 2013). Mr. Marchionne went Chrysler to change these values to make the company profitable again. Basic assumptions are the values of a company that have not been followed and begin to represent a company’s behavior. For Chrysler, Mr. Marchionne made major changes to the company by expelling executives, removing its bureaucracy and adding fear to the workforce. How is Mr. Marchionne trying to improve the PE fit of his direct reports?

PE fit is defined as the compatibility between an individual and a work environment that occurs when their characteristics are well matched. Mr. Marchionne felt that he needed to take drastic measures in order to pull Chrysler out of its downward spiral. In trying to improve the PE fit he held a dozen interviews with Chrysler executives to promote them to a management position. “Sources who have worked for Marchionne at Fiat say he swept out many executives when he took over that company in 2004 and even fired some managers during meetings” (Kiley, 2009). He felt his old management team...

References: Kreitner, Kinicki (2013). Organizational Behavior tenth edition.
Kiley, D. (2009). Fiat Chief Shuffles Chrysler Exec Lineup. Businessweek Online, 8.
Ashley, S. (1997). Keys to Chrysler 's comeback. Mechanical Engineering, 119(11), 88.
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