OB in Action

OBin Action

Chryslergroup also known as Fiat Chrysler Automobiles is the seventh largestautomobile manufacturing company with Sergio Marchionne as the chiefexecutive officer. He took the position at a time when the companywas on the verge of collapse due to bankruptcy. He attributed withthe turn of the company’s fortunes through his leadership andmanagement skills.

Organizationalculture is a system value system and beliefs, which keep in checkpeople’s behavior in the organizations (Schein,2010).This system affects how the company performs. The distinct culture ofChrysler group has its basis on innovation, leadership, cooperation,and responsibility. The values upheld by the organization areleadership, which involves enriching peoples’ lives and leadingchange to achieve merit, competition as a value to be the best anddelivering on the promises.

ObservableArtifacts Espoused Values and Basic Assumptions

Artifactsare the symbols of an organization’s culture. They includeacronyms, dress codes, rituals, myths, and stories about the company.An example in Chrysler group is the ever-told story of Peter Fong whogave rebates to the government as incentives. Also, the weeklymeetings that Marchionne has with employees is another observableartifact.

Espousedvalues are values that created by the founder of an organization andare spread with the organization through the management. The valuepassed over the years at Chrysler group is ‘design with purpose.`

Basicassumptions are the unappreciated beliefs of a company that areusually hard to change. The premise of Chrysler group was thatacceptable to offer incentives

CompetingValues Framework

Competingvalues framework is a theory developed from research focusing on themajor indicators of active organizations. The plan is used tomeasure, understand and change the organizational culture (Buelens,Kinicki,and Kreitner2012). There are four cultures that in the framework. First is theclan culture that involves focusing on the internal environment. Itmakes it possible for innovation and flexibility of the employees asit relies on their commitment by appealing to their happiness. Inthis culture, employees can express their concerns and opinions forbetter decision-making (Schein, 2010). Clan culture in Chrysler groupfocuses on customers and their satisfaction rather than theemployees.

Secondis the adhocracy culture that is informal, flexible and is notgoverned by bureaucratic policies. It focuses mainly is in theexternal environment which comprises of the customers, stakeholders,and the product. It expressed through innovation and consumerhappiness. Chrysler’s growth, variety, autonomy, and attention todetail are some of the values associated with adhocracy culture thathas resulted in the development of new designs and feature in thevehicles manufactured (Buelens,et. al,2012). Marchionne has allowed risk taking and freedom among theemployees for innovative solutions generation. He believes thatachieving a goal is possible when employees are set free in theirareas of work. Chrysler group has achieved immense growth throughinnovation by utilizing adhocracy culture.

Thirdly,there is hierarchy culture has its focus on internal structure. It isthe opposite of the adhocracy culture and flourishes on theefficiency of employees and smooth flow of work. Lastly, the fourthculture is the market culture that looks at the external environment.It also looks at the profitability of the organization and the marketshare. By designing new, efficient, reliable, and safe vehicles,Chrysler group factors the market culture.

Visionand Mission

Theorganization’s mission is the reduction of the environmentalfootprint, safety, and connected vehicles, increasing productcompetitiveness. Its vision is to build cars and trucks people wantto buy, will enjoy driving, and will want to buy again. Adhocracyculture is in line with the organization’s vision as it has broughtabout new designs and features of vehicles. New ideas keep coming upin this culture.

Mechanismsof Change

Marchionnesuccess at Chrysler group results from enforcing changes of theculture at the organization. The change of culture was aimed atattaining financial stability, and the organization was about toclose down. He addressed the underlying assumptions and visibleartifacts dramatically. He had to do and do it persistently asassumptions are deeply rooted in a company’s culture. He tackledthe issue from the top by targeting the top management first. He setabout a new culture that everyone was to follow (Kortmann,2012).He set clear goals and visions for the management, whoever did notshare in them faced the sack. To fill the gap, he recruited newmanagers who shared his vision and trained them on what he desired sothat they could pass it on to other employees. He set the dos anddon’ts and emphasized that giving rebates was a culture done withfor good.

Marchionnealso changed the physical working environment by relocating theexecutive office from the penthouse to near the technology room. Hedid this to be close to the employees and understand their problems.It also made the flow of communication easier as opposed to before.His stronghold was the way he ensured that there was continuouscommunication between the employees and the management. He preparedweekly meetings to address problems of product design and the profitmargins. It was effective through sharing of new ideas andmaintaining the company’s focus. He brought a new set offundamental assumptions in the organization. They are innovation,employee productivity, and profitability focus.


Kortmann,S. (2012).Organizational Structure.TheRelationship between Organizational Structure and OrganizationalAmbidexterity,12-17. doi:10.1007/978-3-8349-3630-1_2

Kreitner,R., Kinicki, A., &ampBuelens, M. (2012).Organizationalbehaviour.London:McGraw Hill.

Schein,E. H. (2010). OrganizationalCulture and Leadership.Somerset:Wiley.