CHRYSLER LLC Business failure Research Paper Example | Topics and Well Written Essays - 750 words

CHRYSLER LLC Business failure - Research Paper Example ed in making decisions, technological and global competitiveness, mergers and the acquisitions, rethinking business processes and alliances among others. The reasons behind the failure of the company were a result of a complex combination of organizational, managerial and leadership factors. The use of organizational behavioral theory helps in explaining why the company failed in the achievement of its strategic and operational goals. This was a clear example of ineffective leadership, poor organizational structuring and imbalanced management (Stephen, 2004). From 1940s to the beginning of the 21st century, the company underwent a series of changes but these changes did not help in ensuring its sustainability over time. The failure of the company can be dated back to the 1950s whereby it failed to survive the competitive and organizational pressures of the time. The company experienced lack of adequate organizational support and ended up relying on external consultants. The company w as transformed and followed the patterns adapted by General Motors whereby each division of the company had its own executive who had the powers to decide and authority over everything under its division. Unlike the case of the General Motors, the executives at the company felt that this decentralization was unfamiliar to them and as such did not welcome it (Robbins, 2003). Another factor which led to its failure is the merger with Daimler as mentioned earlier. At the time, the company was experiencing rapid organizational advancement, high profitability rates as well as huge opportunities in business. Before the merger, the company executives had already got used to working as a team and the merger destroyed this with many executives departing the company. As such, this organizational... Further still, poor leadership was experienced in Chrysler and the company failed to form a better corporate image and failed in overcoming its market and operational challenges. With considerations on the management and the departure of effective leadership, and the effect of the organizational culture of Daimler, there was a huge gap in the leadership and management of the company. The merger led to a crash of the cultures of the two organizations. The attribution theory can explain the failure in the Chrysler LLC Group. The attributions theory explains the actions of other individuals, the employees and stakeholders. These attribution processes are perceptional in nature and not motivational. It analyses how the attitudes of the individuals affect their actions as the views enable individual to filter information and choose the one to believe (Scott, 2007). The failure of the company was due to the perception of the leaders of their positions within the company. The differences in the perceptions of the executives and the stereotypes each of them had became a barrier to them effectively cooperating in the management of the business. The business failure of this company confirms the importance of organizational behavior and illustrates how poor leadership, mismanagement and ineffective organizational restructuring can result to the failure of a business.