Chrysler LLC Failure free essay sample

LLC is a car company that has been struggling for many years to not be an underdog in the car manufacturing game. They have never been able to really beat out GM in profits or percentage in the market. By 2009, when they filed bankruptcy, there had been quite a few lows and a couple ups. There were many things that went wrong throughout the years to create those lows with an end result of bankruptcy and being bought out. One of the major causes was leadership anagement along with a poorly constructed organizational structure. When dealing with leadership management, one needs to look at how well of a leader to their organization is the management. Do they have the organizations best interests or are they at it for personal gain. Do they understand what the employees are willing to take on, and are they paying attention to what the consumer wants? According to Yukl (2010) there were a couple major studies done on leadership and behavior in the 1950s by Ohio State and Michigan. We will write a custom essay sample on Chrysler LLC Failure or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Ohio States studies led to a couple major ategories of behaviors of leaders. One was consideration while the other was initiating structure (Yukl, 2010). Consideration involves leader concern for people and interpersonal relationships (Yukl, 2010, p. 55). When Dailmer bought Chrysler LLC in 1998, they could have used more consideration in their management techniques because they lost quite a few good key managers; plus they put their dealers and dealerships in disarray with the public due to the executives and their policies (Wallace, 2009). Michigans studies created three leadership behavior styles ncluding relations-oriented behavior (Yukl, 2010). In relations-oriented behavior effective managers were also more supportive and helpful with subordinates (Yukl, 2010, p. 58). They would listen to subordinates issues and be willing to pay attention to their ideas. Cerberus Capital Management attained Chrysler LLC from Dailmer in 2007 and did not pay attention to this effective behavior. Chryslers dealers really wanted Wolfgang Bernhard as the new CEO and he would have revitalized them to sell more cars than when they worked under Dailmer. However, due to Cerberus following their own ideas and not listening, they chose Bob Nardelli (Wallace, 2009). Another contribution to the failure of Chrysler LLC is possibly the Job satisfaction rate of the dealers for Chrysler. Between both Dailmer and Cerberus overloaded the lowest aspects of Job satisfaction (Robbins Judge, 2011). Wallace (2009) stated in the article about how Dailmer combined different Chrysler brands into one dealership. This created stress because dealers were now selling Dodge Avengers and Chrysler Sebrings off the same lot. The stress is the fact they are the exact same car, Just different tags and luxury packages. The same type of stress is there when it comes to the Chrysler 300 and the Dodge Charger. Cerberus added to the stress when they pushed Chrysler dealers to order more and more unwanted cars (Wallace, 2009). Cerberus may have thought having a larger inventory on a dealerships lot would help push the dealers to sell more vehicles or something of that nature. However, Dailmer had already made them have too many unwanted cars plus they were ealing with the added stress of having multiple brands on one lot.