OF PERFORMANCE MANAGEMENT CASE STUDY (EMPOWERMENT AT CHRYSLER)
in the early 1980’s Chrysler’s corporation was bankrupt , Chrysler Corporation after facing bankruptcy they improved their performance again by lee Iacocca. When Robert Eaton was CEO Chrysler’s performance outstanding 1994. .Its earnings rose 246 percent to $ 3.7 billion and its sales were up to 20 percent to $ 52.2 billion, according to Eaton, the reason of their success is empowerment. When they were manufacturing a new car or re-design an existing car, they structured a self-directed team of about 700 people from different departments (engineering, design, manufacturing, marketing and finance) the work was directed by team members, they were free to make any decision. The top management “simply sets out all the objectives and hopes, team members will achieve those objectives”. They don’t get back to top management unless they have a major problem. The result of the empowerment is that their production time was decreased from five year to only 2.5 to 3 years. Roberts have to improve their productivity and quality, for competing Toyota and other competitors through decreasing the assembling time from 28 hours to less than 18 hours. There was an issue with Chrysler that blue collar workforce empowerment is yet not evident. Chrysler don’t have sufficient productive blue collar workforce. Eaton puts tremendous emphasis on trying to bring those blue collar workers. KEY INFORMATION
+Chrysler cooperation faced bankruptcy in 1980s
Robert Eaton took over as CEO of Chrysler cooperation and improved the performance of the company , he introduced empowerment at Chrysler cooperation Top management works out a contract with the team and the contract simply sets out all the objectives we hope they achieve Employees only get back to top management when they have a major problem Chrysler cooperation is all about designing cars
Chrysler cooperation have far more productive white collar work force...
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