Cultural Changes In Chrysler

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Turning around a failing company, often means, disrupting the status quo and changing the culture that is contributing to the failing company. Sergio Marchionne, who had a successful history of resurrecting the failing auto company Fiat, came in and focused on returning Chryster to a profitable company (Marchionne, 2008). Marchionne took over as CEO of Chrysler and began by breaking down the basic assumptions that were continuing to contribute to Chrysler’s failing business model (Kreitner & Kinicki, 2013). During this process, Marchionne began to transform the company’s espoused values, the core beliefs that influence all aspects of the company (Kreitner & Kinicki, 2013). Throughout the cultural change process, the culture gained strength through visible reaffirmations, known as observable artifacts, of the new espoused values (Kreitner & Kinicki, 2013). …show more content…

Marchionne did not believe in this assumption and did not allow it to continue to influence business decisions at Chrysler. Marchionne began establishing a new corporate culture with a top-down approach to reorganizing the management with a focus on decision-making capabilities (Kreitner & Kinicki, 2013). Just as he did when he took over Fiat, Marchionne began to identify management with ingrained basic assumptions that contradicted his values, terminated their employment and replaced them with employees he identified as having great potential (Kreitner & Kinicki, 2013; Marchionne,

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