Role of leadership when merging companies Essay Example | Topics and Well Written Essays - 500 words

Role of leadership when merging companies - Essay ExampleThis teamwork in the midst of companies is essential to call down the potential success of the merging. Basically, every organization has a culture, an interconnected value system, shared by the majority of the organizations members. Organizational culture also involves and is influenced by the trend of effective internal reactions to typeset to external problems and threats (Keyton, 2005). Since the culture is an outcome of previous achievements, it will oppose change such as that brought more or less by merger or acquisition. Hence, the role of leadership is to facilitate the transition of organizational culture during the surgery of merging (Hunt, 2009). The auto industry has been historically known for its horizontal formations (Badrtalei & Bates, 2007). The future merging of American auto manufacturer Chrysler and Italian automaker Fiat will be discussed in this essay. The possible success or chastening of this mer ging will be discussed in terms of the management perspective and organizational culture differences between the two totally distinct automakers. Organizational Challenges to the Chrysler-Fiat Merge It is obvious that American and Italian cultures are starkly dissimilar. The collective bargaining process of Chrysler and Fiat is different.