According to Alvesson (2013), “The management of any organization must ensure that the managers recognize the organizational culture and organizational environment.” These two areas have vital implications for the management of any organization. In fact, organizational culture and external forces are vital in shaping the organization to help understand the complexities that are likely to be caused by external and internal environments. Organizational culture refers to the shared principles, values, beliefs, and ways of performing duties that dictate the management of organizations (IT Governance Institute, 2005). Most people perceive organizational culture based on what they see, experience, hear within the organization. Chrysler has struggled with its organizational culture in the wake of leadership change. This paper provides an analysis of Chrysler’s organizational culture to help understand the firm’s vision and mission as set by its founders. It will look at the firm’s culture, which made it renowned. The components will include espoused values, observable artifacts, and basic assumptions associated with a particular culture of Chrysler. This paper will also highlight the changes made by Sergio Marchionne, Chrysler’s CEO in revamping its culture and in fact, considering the changes made by PE fit as a way of creating organizational change.
To begin, Chrysler functions under a market culture, this has very strong peripheral focus and worth steadiness and a great mechanism. Chrysler never altered its market culture completely, however; the firm still functions within the initial culture. It only changed its espoused values and observable artifacts to ensure that the company’s culture aligns with its objectives. One of the espoused values considered significant was the profit margins followed by quality of merchandise. The observable artifacts that were present in this company were the sale tactics, which included price slashing, discounting, rebates among others with the aim of generating profit to the company (Alvesson, 2013). It is noteworthy that Chrysler’s observable artifacts based on five major traits that made their culture unique, which include cooperation, innovation, passion, leadership, and responsibility. Some of the company’s values were diversity, community, and sustainability. These three values are essential since they made Chrysler emphasize the significance of sustainability and cooperation. Together, these espoused values and observable artifacts guided the behavior of the firm as well as its culture. The main objective was to convert these observable artifacts and espoused values towards becoming a part of the basic assumptions that stood for the core of the organization (Alvesson, 2013).
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Secondly, the Chief Executive Officer, Sergio Marchione had to respond to some issues affecting the company. Particularly, he had to try and improve the PE fit of his report. In his effort, he forced the firm to confront problems that it had initially ignored such as value rescinding enticements, production overfilling and unproductive plants. The principle takes away from surveying the culture levels within an association is called PE fit, characterized as the similarity between an individual and a workplace that happens when their qualities are coordinated. The major rebuilding of administration beforehand examined speaks to Marchionne’s push to enhance the PE fit of his immediate reports. Toward the end of the rebuilding procedure, Marchionne had twenty-three individuals answering to him that were particularly chosen to guarantee that they each had the suitable aptitudes, qualities, capacities, and identities to coordinate the employment necessities of every particular position. PE fit is particularly vital in administrative positions to guarantee the propagation of fitting qualities all through every level of the company (Alvesson, 2013). Composed qualities hold little weight on the off chance that they are not reliably strengthened through the case of the pioneers or leaders of an organization. He is further ensuring that he meets and holds discussions to protect Chrysler’s profits.
One approach to understanding Chrysler’s new culture is to characterize it utilizing the contending values framework or structure (CVF) (Schneider & Barbera, 2014). There are four fundamental sorts of cultures illustrated in the CVF such as clan, adhocracy, progressive system, and market. Similar to the case with Chrysler, associations can have qualities of every kind, except by only having one that is essential than the others. By considering the two essential measurements, we can decide the new kind of authoritative culture showed through the progressions coordinated by Marchionne (Schneider & Barbera, 2014).
Finally, looking at Chrysler’s mission or vision statement, it is clear that its culture type is consistent with its aims and objectives. The company’s mission is aligned with its mission and vision that emphasizes the satisfaction of its clientele. In this regard, the mechanisms for changing the organizational culture that Mr. Marchionne use at Chrysler was using direct communication and cooperation with a developed mental image of the desirable future for the firm. He set goals, used planning and employed corporate strategy to ensure that the company competes effectively.
References
Alvesson, M. (2013). Understanding organizational culture . Los Angeles: Sage.
IT Governance Institute. (2005). Governance of the extended enterprise: Bridging business and IT strategies . Hoboken, NJ: John Wiley & Sons.
Schneider, B., & Barbera, K. M. (2014). The Oxford handbook of organizational climate and culture . Oxford: Oxford University Press.
