Solutions to DaimlerChrysler’s Cross-Cultural Issues

Solutions to DaimlerChrysler’s cross-cultural Issues 1
Solutions to DaimlerChrysler’s cross-cultural Issues
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Solutions to DaimlerChrysler’s cross-cultural Issues 2
ATTEMPT TO PICK A MIDDLE SPOT
Jürgen Schrempp, the former CEO of Daimler-Benz and Robert Eaton, former CEO of
the Chrysler, attempted to pick a middle spot where they could be equals (PaperAp.com,
2017). The managers tried to follow the notion of the merger of equals (Hollmann et al., 2010).
The post-merger integration resulted in several difficulties because of the cultural mismatch of
the two companies (Aggoud, et al., 2012). Schrempp and Eaton were always on different pages
about how and where to lead to the merged company. Chrysler’s management was highly
centralized, whereas Daimler was initially run as a conglomerate. It was clear Daimler the deal
was more about acquiring Chrysler than them working towards cross-cultural management.
The attempt to pick a middle spot failed since the German’s structure was dominant, and
the Americans were forced to adapt (PaperAp.com, 2017). The merger aimed to combine the
different cultures involved to generate a new cross-cultural management plan, but this was not
the case since one party imposed its organizational culture on its counterpart (Hollmann, et al.,
2010). The corporate cultures of the two companies were worlds apart, making the cross-
management unsuccessful (Habraken, 2017). They both had extreme differences in values and
morals that were regularly relieved. Management was ineffective in combining the two cultures
and laying a basis for a shared corporate culture. The merged company lost several of their
clients and competent employees. The employees that were left behind became demoralized
leading to less productivity in their performance.
Creation of an Integration Council
Routines and Rituals of an organization during a merger are hard to change, the
employment process, training program, promotion, and the way they carry out their duties at
work. Each company has its own culture on how it gets the job done (Aggoud, et al., 2012). The