Chrysler-Fiat Merger

Topics: Fiat, Sergio Marchionne, Leadership Pages: 4 (1562 words) Published: December 4, 2012
Leadership in a Merger: Chrysler and Fiat

Role and Function of Leadership
Leadership is a dynamic, involved, and personal endeavor. The act of leadership encompasses many variables from personal interests of the leader to modeling what is right rather than what is wanted. There are Five Practices of exemplary leadership: model the way, inspire a shared vision, challenge the process, enable others to act, and encourage the heart (Kouzes & Posner, 2007). The most successful leaders attempt to model what they are expecting of others; especially in a rapidly changing climate. Modeling can be one of the most effective ways leadership can encourage the outcome of change they wish for in a corporation. Leaders establish and maintain credibility predominantly through communication; this is especially critical during corporate mergers when a level of uncertainty can cause anxiety to overtake an organization. Communication not only consists of language correspondence but also attitude, body language, lifestyle, etc. Leaders must take all aspects of communication into account in order to establish credibility and emphasize a positive relationship with a new community of workers (Wall, 1998). It is also imperative during a merger that there is an understanding of benefit for both sides. It doesn’t matter how much give and take is in the relationship if one or both parties do not understand the circumstances or benefits of the new relationship. This idea and the common “hammer fix” can disintegrate credibility; the hammer fix is the quick fix that does not get to the root of an issue and simply forces a band-aid like fix (Wall, 1998). Leadership style and credibility weigh heavily on the success of a merger from both the acquiring side and the acquired side. There are several noted aspects of leadership that should be addressed when a merger is coming to fruition: relational, inspirational, supportive, and stewardship administration (Sitkin & Pablo,...
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