Chrysler LLC Failure
A Reason for Failure at Chrysler LLC
LDR/531
May 20, 2013
Gale Mazur
A Reason for Failure at Chrysler LLC
Chrysler LLC is a car company that has been struggling for many years to not be an underdog in the car manufacturing game. They have never been able to really beat out GM in profits or percentage in the market. By 2009, when they filed bankruptcy, there had been quite a few lows and a couple ups. There were many things that went wrong throughout the years to create those lows with an end result of bankruptcy and being bought out. One of the major causes was leadership management along with a poorly constructed organizational structure.
When dealing with leadership management, one needs to look at how well of a leader to their organization is the management. Do they have the organizations best interests or are they at it for personal gain. Do they understand what the employees are willing to take on, and are they paying attention to what the consumer wants? According to Yukl (2010) there were a couple major studies done on leadership and behavior in the 1950’s by Ohio State and Michigan.
Ohio State’s studies led to a couple major categories of behaviors of leaders. One was consideration while the other was initiating structure (Yukl, 2010). Consideration “involves leader concern for people and interpersonal relationships” (Yukl, 2010, p. 55). When Dailmer bought Chrysler LLC in 1998, they could have used more consideration in their management techniques because they lost quite a few good key managers; plus they put their dealers and dealerships in disarray with the public due to the executives and their policies (Wallace, 2009).
Michigan’s studies created three leadership behavior styles including relations-oriented behavior (Yukl, 2010). In relations-oriented behavior “effective managers were also more supportive and helpful with subordinates” (Yukl, 2010, p. 58). They would listen to subordinates issues and be willing to pay
LDR/531
May 20, 2013
Gale Mazur
A Reason for Failure at Chrysler LLC
Chrysler LLC is a car company that has been struggling for many years to not be an underdog in the car manufacturing game. They have never been able to really beat out GM in profits or percentage in the market. By 2009, when they filed bankruptcy, there had been quite a few lows and a couple ups. There were many things that went wrong throughout the years to create those lows with an end result of bankruptcy and being bought out. One of the major causes was leadership management along with a poorly constructed organizational structure.
When dealing with leadership management, one needs to look at how well of a leader to their organization is the management. Do they have the organizations best interests or are they at it for personal gain. Do they understand what the employees are willing to take on, and are they paying attention to what the consumer wants? According to Yukl (2010) there were a couple major studies done on leadership and behavior in the 1950’s by Ohio State and Michigan.
Ohio State’s studies led to a couple major categories of behaviors of leaders. One was consideration while the other was initiating structure (Yukl, 2010). Consideration “involves leader concern for people and interpersonal relationships” (Yukl, 2010, p. 55). When Dailmer bought Chrysler LLC in 1998, they could have used more consideration in their management techniques because they lost quite a few good key managers; plus they put their dealers and dealerships in disarray with the public due to the executives and their policies (Wallace, 2009).
Michigan’s studies created three leadership behavior styles including relations-oriented behavior (Yukl, 2010). In relations-oriented behavior “effective managers were also more supportive and helpful with subordinates” (Yukl, 2010, p. 58). They would listen to subordinates issues and be willing to pay
References: Robbins, S. P., & Judge, T. A. (2011). Organizational Behavior (14th ed.). Upper Saddle River, NJ: Prentice Hall. Wallace, E. (2009). Bloomberg Businessweek. Retrieved from http://www.businessweek.com/lifestyle/content/may2009/bw2009055_922626.htm Yukl, G. (2010). Leadership in Organization (7th ed.). Upper Saddle River, NJ: Prentice Hall.