HR In The DaimlerChrysler Merger (IHRM)
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Why did the HR In The Daimler-Chrysler Merger fail? What were the reasons?
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Solution Summary
The causes of merger failure of Daimler and Chrysler Merger is traced in this discussion.
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The Daimler-Chrysler Merger was a failure of the HR to bridge the gap between two competing cultures.The merger imploded from within. Its most fearsome enemy is itself. It was not competing against the big names in the car industry. It was competing with itself.
- The Merger was dubbed the Merger of Equals.
- Differences in culture between the two organizations were largely responsible for this failure. Operations and management were not successfully integrated as 'equals' because of the entirely different ways in which the Germans and Americans operated: while Daimler-Benz's culture stressed a more formal and structured management style, Chrysler favored a more relaxed, freewheeling style to which it owed a large part of its pre-merger financial success (Weber and Camerer, 2003).
- Contrasting cultures and management styles hindered the realization of the synergies. Daimler-Benz attempted to run Chrysler USA operations in the same way as it would run its German operations. Daimler-Benz was characterized by methodical decision-making. On ...
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