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

Role of leadership when merging companies - Essay Example This teamwork between companies is essential to enhance the potential success of the merging. Basically, every organization has a culture, an interconnected value system, shared by the majority of the organization’s members. Organizational culture also involves and is influenced by the trend of effective internal reactions to adjust to external problems and threats (Keyton, 2005). Since the culture is an outcome of previous achievements, it will oppose change such as that brought about by merger or acquisition. Hence, the role of leadership is to facilitate the transition of organizational culture during the process of merging (Hunt, 2009). The auto industry has been historically known for its horizontal formations (Badrtalei & Bates, 2007). The future merging of American automaker Chrysler and Italian automaker Fiat will be discussed in this essay. The possible success or failure of this merging will be discussed in terms of the management perspective and organizational cultu re 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.