Organizational Performance and Culture at Term Paper

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According to Auteri, "The ratio of managers to specialists was extremely high. This situation was due in part to the former practice of rewarding employees by moving them to a higher level in the hierarchy, regardless of organizational requirements" (1994, p. 108), a human resource policy that has since been discontinued. Of particular interest were Auteri's observations concerning how Fiat's organizational culture, like all large organizations, requires time to change. In this regard, Auteri emphasizes that, "We've learned that corporate change doesn't happen quickly, either. Even under an unstable economic market, it takes time to forge change" (1994, p. 108).

Like other major organizations, the corporate culture at Fiat begins at the top with the company's chief executive officer, Sergio Marchionne, and his executive leadership team, but the culture at Fiat is in reality sustained by everyone in the organization, including the owner and his family. For instance, according to Hooper, "One of the more striking aspects of Italy's economy today is how many of the larger corporations are still family-based and, to a greater or lesser extent, family run. Fiat is one example" (p. 66). Several key themes are discernible in the company's organizational culture, including several that have characterized its operations throughout its lengthy history such as a focus on innovation and distinctive design elements. Fiat's leadership, though, has also relied on the longstanding corporate values that have helped it overcome some difficult periods in its operating history to emerge as a viable automobile manufacturer in the 21st century with a view towards long-term sustainable growth for the future.

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For instance, in the company's most recent annual report, Fiat's chairman, John Elkann, emphasized, "The management team, beginning with CEO Sergio Marchionne, is working diligently to leverage opportunities for further growth. With the contribution of everyone at Fiat at the support of my family, we will continue in pursuit of the principal objective: to create a company that is a leader in the global automobile sector, oriented toward innovation, secure in its values and dedicated to sustainable long-term development" (p. 3).

Conclusions

The research showed that Fiat Group Automobiles, S.p.A. is an Italian automaker and designer that was established in 1899 in Turin, Italy. Through a series of strategic alliances, acquisitions and mergers, Fiat has expanded its operations to a global level over the years while remaining true to its original brand and corporation vision to provide automobile consumers with innovation in performance and design. The research also showed that Fiat's organizational culture, like other large organizations, begins at the top with the company's executive leadership team but relies on support from its constituent employees to sustain this culture. Finally, the research also showed that despite some challenging periods in its operating history, Fiat's leadership has taken the difficult steps that were needed to help the company remain viable and achieve a competitive advantage in the 21st century......

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