Lessons from the DaimlerChrysler Merger

Organizational Culture Theory

Organizational culture is defined by many management writers as: Geert Hofstede (2001) collective programming of the minds

Edgar Schein(1985) The pattern of basic assumptions which a group has invented, discovered or developed in learning to cope with its problems of external integration and adaptation .

Culture Clash
Management of DaimlerChrysler believed the cultures could be easily combined Loss of focus on cultural differences Disregard for the change in integrating new partner Conflicting goals within newly merged departments

Employee Involvement
Disregard for employees needs Power politics High employee turnover

Recommendations
Change is inevitable Managing cultural differences training and development Re-define the organizational structure and procedures, if necessary Extensive and regular communication Effective planning Retain key employees