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Strategic and Cultural Change at Chrysler

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Please read carefully the OB in Action Case Study:
Sergio Marchionne Undertakes Major Strategic and Culture Change at Chrysler Group.

Using your readings, and at least two additional resources, evaluate Chrysler's organizational culture by considering the following questions:

- What are the observable artifacts, espoused values, and basic assumptions associated with Chrysler's culture?
- How is Mr. Marchionne trying to improve the PE fit of his direct reports? .
- Use the competing values framework to diagnose Chrysler's culture. To what extent does it possess characteristics associated with clan, adhocracy, market, and hierarchy cultures? .
- Look up Chrysler's mission or vision statement on the company's website. To what extent is the culture type consistent with the accomplishment of their mission or vision? .
- Which of the mechanisms for changing organizational culture did Mr. Marchionne use at Chrysler? .

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Solution Summary

Cultural change at Chrysler is discussed step-by-step in this solution. The response also has the sources used.

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Step 1
The observable artifacts, espoused values, and basic assumptions associated with Chrysler's culture are that the company should protect its market share. The assumption is that the market share and volume of sales are most important for Chrysler. For this purpose it is acceptable to give discounts and rebates. The values support increasing discounts and rebates to protect the market share. There was a fanatical interest in preserving the market share.

Step 2
Mr. Marchionne is trying to improve the person environment fit in several ways. First, he is conveying through meetings, discussions, and actions that protecting the profit of Chrysler is very important. Next, he is interviewing the managers and identifying the persons who do not fit with the new environment. Based on personal interviews he discharges those managers who do not fit with the new environment. Specifically those that give importance to sales ...

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