Task Oriented Leadership in Chrysler
Sergio Marchionne has used
strong task-oriented leadership in an unfavorable situation at Chrysler.
The fate of the smallest of the Big Three U.S. automakers rests in the hands of Italian-born
Sergio Marchionne, who rescued Fiat from the brink of collapse a few years ago with his close
attention to detail. Marchionne is a strong, task-oriented leader. Rather than settling into the
top-floor executive suite at Chrysler’s headquarters in Auburn Hills, Michigan, Marchionne
chose an office in the fourth-floor engineering center. He carries six smartphones and keeps
tabs on the smallest details, down to a faulty door handle on the new Dodge Charger. “If you
really want to run the business,” he says, “you need to get involved at this level.”
Marchionne came into a highly unfavorable situation at Chrysler. Like General Motors
(GM), Chyrsler had to be rescued by a federal bailout several years ago, and Marchionne took
charge just after the company emerged from bankruptcy and Fiat assumed part-ownership.
Sales were slumping, Chrysler’s image was tarnished, morale and motivation were low, costs
were high, and operational problems plagued the company. Marchionne became known at
Fiat for working long hours seven days a week, and he told his top executives at Chrysler to
plan on doing the same for the foreseeable future. He meets with managers regularly and
gives them specific orders for what he wants to see accomplished. Managers who were committed
to staying stuck in the old way of doing things were fired.
Marchionne’s task-oriented leadership is having a positive effect. Chrysler’s auto sales
are improving, and operational problems have been brought under control. In addition,
Marchionne’s hard-hitting approach has brought a refreshing energy into the organization,
giving employees a greater sense of hope and motivation.
Marchionne’s tough, task-oriented approach is suitable for the difficult situation at
Chrysler. On the other hand, Ohio Republican John Boehner has not done so well as House
Speaker during several recent political struggles, including the partial U.S. government
shutdown over Obamacare. Part of the reason, some say, is that Boehner just isn’t
“intimidating” enough. Republicans are more divided than ever, and one observer said that
Boehner’s future success would depend on his ability to “lead more and listen less.” Boehner
typically uses a relatively laid-back, people-oriented style. “I can’t think of any time he’s
been heavy-handed with me,” said Representative Charlie Dent of Pennsylvania. Many
both inside and outside the Republican Party believe that a strong, task-oriented leader is
needed to keep the unruly House from turning into “an ungovernable quagmire.
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