In order to persist in a competitive market, corporations must make profit. The basic structure of all interactions under competitive conditions can be a Catch-22 (McGrath, 1984). There will always be mutual and contradictory interests at the same time. Chrysler Corporation had common economic interest, however they had conflicting cultural and moral views. In order to create value in and for organizations, it is sometimes effective to focus on expanding options, creating new ideas, self-organizing, and collaborative learning.
Executive Chief Sergio Marchionne put a great deal of emphasis on changing the corporate culture at Chrysler. One way to assess his vision for Chrysler’s new culture is to classify it using the competing values framework (CVF). CVF provides a practical way for managers to understand, measure, and change organizational culture. The four basic types of culture include clan, adhocracy, hierarchy, and market (Kreitner & Kinicki 2013). As is the case with Chrysler, organizations may possess characteristics of each type, but they generally have one that is more dominant.
At first glance it appears that Chrysler’s functions under a market culture; “a market culture has a strong external focus and values stability and control (Kreitner & Kinicki 2013).” It is clear that the primary goal of Marchionne was profitability, giving the company an external position. Secondly, Marchionne implemented change by his reaction to incidents and organizational crises making it known that he strongly disliked practices set forth to meet margins. He stressed quality which is an internal focus most related to a hierarchy culture, yet he disseminated much of the executive power in the fashion of a clan culture. He revamped the company’s vision making it a combination of meeting profit margins by producing quality product and giving exceptional customer