Sergio Marchionne Undertakes Chrysler

Questions for Discussion

1. What are the observable artifacts, espoused values, and basic assumptions associated with Chrysler's culture?
Answer: 1) Chrysler’s Observable Artifacts consist of their fanatical, maniacal interest in protecting and increasing market share. Their Espoused Values were the ingrained tendency to react to falling sales by slashing prices and the use of heavy rebates and incentives to maintain sales. Their values were generally insular and limited to short-term margins, not long-term growth. Chrysler’s Basic Assumptions amounted to “giving away margins” in pursuit of maintaining market shares.
My organization: Observable Artifacts consist of myths and stories about the VA that they’re slow moving and the care treatment for veterans are not very good. There is some truth to these myths, but improvements have been made and the VA has come a long way. Their Espoused Values constitute the commitment to provide benefits and services to Veterans and their family in a responsive, timely, and compassionate manner in recognition of their service to the Nation ( The VA basic assumption is, relax, what’s the hurry, you have cozy government job—We are highly resistant to change.
2. How is Mr. Marchionne trying to improve the PE fit of his direct reports? .
Answer: Mr. Marchionne tries to improve the PE fit of his direct reports by, conveying through meeting and actions that margins and vehicle quality is very important. The control over pricing was also very important. He was serious about the turnaround plan for Chrysler and envisions Chrysler return to profitability. He interview his management team and pushed out anyone who didn’t make cut. Some junior executives were moved up a level or two in the organization after the interview process was over.
My organization: The head of Veterans Affairs vowed restructuring after troubled VA hospital prevented veterans timely care. Subsequently, he stepped down after internal investigations...