Daimler Chrysler

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1.In what ways did the cultures of the two companies differ? What do you think the terms “innovation” and “entrepreneurship” meant to Chrysler employees? To Daimler employees? After the May 1998 public merger announcement Daimler and Chrysler executives initiated efforts to address the challenges of integrating the two companies. There were two different culture between the two companies. Americans, Chrysler are more free from in their discussions, a little less rigid while the Germans, Daimler tend to be very rigid, more methodological in their meetings and thought processes. In addition, Americans have a tendency to sometimes go off on tangents. While the Germans say they’re going to do something it mean that this is the agenda they stick to it. Daimler was an aggressive firm, which believed in hustling every possible way to make its company the number throughout the world. But, Chrysler was on the other hand an easy going and slow progress firm which believed in the production and flexibility of operation. In addition, the two units traditionally held entirely different views on important things such as pay scales and travel expenses. As a result of these differences and the German unit’s increasing dominance, employee satisfaction and performance at Chrysler took a steep downturn. There were large numbers of departures among key Chrysler executives and engineers. The German unit became increasingly dissatisfied with the performance of the Chrysler division. Chrysler employees became extremely dissatisfied with what they perceived as the source of their division’s problems: Daimler’s attempts to take over the entire organization and impose their culture on the whole firm. At DaimlerChrysler, differences in compensation systems and decision-making processes caused friction between senior management, while lower level employees fought over issues such as dress code, working hours and smoking on the job. Language also became an issue. While most managers on...
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