AllFreePapers.com - All Free Papers and Essays for All Students
Search

Organizational Culture Change

Autor:   •  May 23, 2014  •  Essay  •  907 Words (4 Pages)  •  1,334 Views

Page 1 of 4

Organizational culture refers to the strong influence on people’s lifestyle and attitudes that illustrates what is real and sanctions what is not real. In other words, organization culture is a particular way of reacting to change, getting along with workmates, treating customers and conducting business (Bligh, 2006). Most businesses in today’s world do not understand the importance of the culture of an organization yet it is a crucial factor. An example is the Chrysler motor company, which needed to transform its organization culture because of the bankruptcy situation the company was going through including, the restructuring in progress by Fiat Corporation. Chrysler in the attempts to solve this issue hired Sergio Marchionne, a highly ranked CEO who would bring in major cultural and strategic change into the company (Kreitner and Kinicki, 2013).

By the time Sergio took over Chrysler motor in 2008, the company was undergoing some serious financial problems. Sergio was both an accountant and a lawyer by profession and he had managed to turn Fiat an Italian automobile company into a fast growing company in the vehicle industry. His main strategy was to first deal with Chrysler’s weak product line as fast as possible, while at the same time the minor engine and car specialty for Fiat which involved to a large extent Chrysler’s vehicle range. After a period of ten years of downsizing and cross-cutting, it can be said that Sergio introduced a strategy that did well for Chrysler auto. As a CEO he did a good job at being able to juggle in between two continents that crossed the Atlantic Ocean, simultaneously between Detroit and Italy to run Chrysler and Fiat. Sergio was able to re-organize the lineup and production of Chrysler overnight.

The main cause of most of the problems that Chrysler faced is the culture and social structure of the company and not the employees or the founder or structure of the company. This factor is because individuals who perform in an environment with various cultures do so in different ways, giving room for constructive and effective performance. This is the same for both businesses and study institutions. Chrysler’s mission involves the creation of safe, reliable, efficient and exciting cars as well as trucks and cars with a vision for clientele satisfaction and met needs are what can be referred to as the company’s physical manifestation. The artifacts included the rituals, codes of dressing and the history of the company and the most obvious artifact that the CEO Mr. Sergio was most interested in was the company sales which were not doing so well at the time hence, the profits were low. Another observable artifact was with the transformed staff

...

Download as:   txt (5.3 Kb)   pdf (79.9 Kb)   docx (11.8 Kb)  
Continue for 3 more pages »