Case Study: Sergio Marchionne's Leadership in Organizational Change

This case study examines Sergio Marchionne's leadership in driving significant changes at Fiat and Chrysler. It explores the types of changes he implemented, including providing greater autonomy to employees, adopting lean manufacturing, and forging strategic alliances. The analysis delves into Marchionne's energetic and democratic leadership style, highlighting his focus on accountability, talent management, and the introduction of innovative practices like World Class Manufacturing. The study further identifies the levers for change employed by Marchionne, such as enhancing corporate culture and entering new markets, while also suggesting criteria like Forcefield analysis and Change Kaleidoscope for assessing the effectiveness of these change programs. This document is available on Desklib, a platform offering a range of study tools and solved assignments for students.

Activity 7.1 Case Study

Contents
Activity- Sergio Marchionne-motor of change................................................................................3
Overview of the pursued change .................................................................................................3
Types of changes pursued at Fiat and Chrysler as well their appropriateness.............................3
Description of leadership style of Sergio Marchionne and its appropriateness in regards with
change context ............................................................................................................................3
Levers for change employed by Sergio- Marchionne as well as how other used it ....................4
At which criteria effectiveness of change programmes at Fiat and Chrysler can be assessed....5
REFERENCES................................................................................................................................5

Activity- Sergio Marchionne- motor of change
Overview of the pursued change
Sergio Marchionne is a CEO at Fiat and Chrysler who has brings varied changes to the
organisation for making it effective and reputed (Gerry and Et. Al., 2022). Marchionne acts as a
leader who puts responsibility on his managers as well as indulge in sourcing new talent in an
effective manner. He has bring varied changes such as introducing executive council, adopt lean
manufacturing, entering into strategic alliances in an effective manner.
Types of changes pursued at Fiat and Chrysler as well their appropriateness
Varied types of changes are pursued at Fiat and Chrysler which comprises of providing
greater autonomy to employees, adopt lean manufacturing, introducing new division, bringing
innovations such as fuel-effecient engines as well as other emerging technologies in a strategic
manner.
These changes are appropriate for organisation as before this, managers were working in
non-professional manner. They do not set objectives as well as motivation to achieve them in an
effective manner. With the aid of entering strategic alliance with Chrysler, Marchionne wants to
establish as a leading global player in context to auto-mobile sector in a strategic manner. He
also propounded that quality should be improved through Japanese approach of manufacturing
automobiles which also help them in cutting their operational cost in a strategic manner.
Improved quality as well as tracking modernisation led Fiat and Chrysler into letting a global
leader in automobile sector and increases its reputation.
Description of leadership style of Sergio Marchionne and its appropriateness in regards with
change context
Marchionne followed energetic as well as democratic leadership style whereby he
provides autonomy to the managers for making critical decisions in an effective manner.
Marchionne is considered as energetic as well as notorious workaholic, numerous executives
report to him on a direct basis. Marchionne works for 14-18 hours per day. He strongly believe
that a job of the CEO is not only take critical decision but set varied objectives as well as aid
managers in achieving them in an effective manner. He bought changes in corporate culture by
providing greater autonomy as well as accountability to their managers for achieving
organisational objectives. He also developed an Executive Council which bought numerous

executives together for achieving objectives in a pre-defined manner. Marchionne also
introduced World Class Manufacturing which is a Japanese approach for lean production
practices.
At the time of strategic alliance of Fiat and Chrysler, Marchionne has took a bold
approach through introducing Ram pick-up truck business and made its division of Fiat and
Chrysler. With the aid of this, Marchionne is able to target truck market and innovate varied
things such as luxury interiors, transmission systems, fuel-effecient engines and many more.
Leadership style of Marchionne is proved appropriate for bringing varied changes at Fiat. As he
provides an opportunity of being responsible as well as accountable to managers of Fiat. He also
indulge in sourcing talent management in an effective manner for making them capable of
accomplishing set objectives.
Levers for change employed by Sergio- Marchionne as well as how other used it
Levers for change which are employed by Marchionne for bringing changes are
introducing new systems, innovative practices, enhancing corporate culture and many more.
Marchionne has introduced Japanese approach in operations as well as emphasizes on the
maintaining improved quality in a strategic manner. He also believes in entering into strategic
alliances which led him to gain numerous employees working for accomplishing organisational
objectives. Marchionne also indulged himself in enhancing corporate culture by discovering and
motivating new talent and inspire managers to take autonomy in a prescribed manner effectively.
He also makes Ram Pick up as their new division for entering market in relation to trucks other
than cars. In order to grab new market, varied innovative strategies are being undertaken by
organisational managers of Fiat and Chrysler.
Other organisations also take guidance as well as adopt Japanese technology for
maintaining quality in an effective manner. Organisations can also learn how changes can be
introduced in a strategic manner by ensuring employee's do not resist while bringing changes.
They can also undertake effective strategies for enhancing organisational culture by motivating
their employees as well as managers for adapting changes effectively.

At which criteria effectiveness of change programmes at Fiat and Chrysler can be assessed
For assessing effectiveness of change programmes at Fiat and Chrysler, Forcefield
analysis as well as Change Kaleidoscope. Forcefield analysis is concerned with comparing the
workforce in an establishment acting either to facilitate or prevent changes. It helps
organisational managers in identifying allies as well as opponents in regards with accepting of
changes. In regards with given case study, Marchionne is managed to involve all their employees
as well as managers in regards with bring innovative changes by providing them proper training
and set an example of own expertise in front of them in a strategic manner. Current aspects in
context to finance, human resources supports the pursued changes in an effective manner at Fiat
and Chrysler.
Change Kaleidoscope can be understood as a strategic framework which identifies key
contextual features for designing change programmes. Time available for bringing changes is
considered as vital aspect which needs to be consider while bringing changes. It has been argued
that changes should be designed and planned carefully in an effective manner. Marchionne also
planned changes such as entering into strategic partnership with Chrysler by analysing market
needs. Scope of change is closely dependent on choice of organisation whether it is global
business or established company. Changes can be expensive not only in regards with financial
aspects but also related to management time. It is imperative for organisational managers to
make their workforce aware of the changes for reducing resistance of employees. Marchionne
has implemented changes in such a way where he gets due support from his managers due to
practising democratic leadership style.

REFERENCES
Online:
Gerry J. and Et. Al., 2022. Exploring strategy: Text and Class. Eleventh Edition. [Online].
Available through:
<https://www.academia.edu/44504531/EXPLORING_STRATEGY_ELEVENTH_EDITION>