Organisational Culture The Case Of Daimler Management Essay


Organizational or corporate culture is deliberated as one of the vital conflicts and dilemmas as well as subjects that are relevant in academic research as well as education giving deliberation on the corporate and business theory and management applications. The main basis and grounds behind this is the notion that the determinant and attribute of the culture is deliberated as valuable in entire life of corporations and business. Even in those corporate and business where in cultural conflicts and dilemmas take delivery of little precise deliberation, how individuals in a firm perceive, experience, analyze as well as operate are all presented and forwarded by diverse ideologies, sense, significance and also customs and elements of a cultural nature. Whether management perceive that culture is deliberated as too soft or too hard to worry about or whether there is no limited and confined corporate culture, does not lessen the essence of culture (Alvesson 2002).

Accordingly, senior corporate management are almanners, in one manner or another, manage and administer culture and deliberated as the most significant notion to be implicated by an industry. Those corporations and industries that are working numbers of diverse management may help in the expansion of building up and copying a culture that will honor and observe the indicator of performance as well as the operations and functions about the process of handling of these. In most of the modern business organization, corporate culture deliberates different types of attention that is deliberated as crucial. The issues is that management are often missing of a deeper comprehension about own individuals and corporate and business will function concerning the culture. It is significant to deliberate the notion that culture is a vital and complex because it is very complex to comprehend and apply in the thoughtful manner. Awareness of and attention in culture can be adjusts between management as well as automotive industry. However, it is still considered hard to get hold of a high level of cultural awareness direct actions (Alvesson 2002).

Primarily, the principal objective of this report is to assess the organizational culture of Daimler and identify the issues and problems faced by the management of the automotive industry concerning cultural and diversity issues. Since one of the most talked about Cultural diversity management is the one which Daimler and Chrysler has considered, it is best to analyze the issues that cultural diversity have brought the industry after the Cultural diversity management.

Organizational Culture

There is no broad concurrence concerning on what the expression organizational or corporate culture explains as well as delivers. The term has been considered in diverse manners, which consist: as a metaphor, as a principle body that relays and associates to the corporate and business as a whole or a set of behavioral or cognitive characteristics. Furthermore, It also visible and evident in diverse determinant and attributes which consist determinant and attributes, symbols, myths, languages, norms of behavior, beliefs, customs, values, ethical codes, legends, as well as attitudes, basic assumptions or event the past of the corporations and businesses.

As mentioned by Morgan (1997), the corporate culture has basically four significant strengths. The first strength emphasizes the attention on the human side of corporate and business condition and life. On the other hand, another strength gives consideration on the significance of harmonious internal relations among the members of the corporate and business, that in turn will result to the attainment of objectives and goals. It also makes the members, specifically the corporate and business leaders to analyze themselves in terms of the implications they have on the group. The last one is it develops the corporate and business’ relationship not only internally but also externally with the implications of the behavior on the outside environment.

Various studies such as White (1998) and Hibbard (1998) have given emphasis more on defining values as the core foundation of corporate culture. Whilst such values are significant determinants or determinants of corporate culture, other studies and investigations have shown that corporate as well as business differ more on practices rather than on their values (Hofstede, 2001, p. 394). Such contrary results were determined and found among national culture. In the study by Hofstede (2001), the author has been able to explain that values are derived from an individual’s early life, chiefly from his or her own family. This then supports the notions that corporate culture is founded by industrial and institutional practices. Typically, values are not openly apparent for staffs and management. However, in some part, values are expressed through industrial practices. Hence, they can be obtained from emerging corporate and business practices found within the corporate and business, its department or individual work units.

It also relays and associated on the outline of attitudes, principles as well as academic manners of adjusting with knowledge that have enhanced during the manner of the record of the corporations and business, which have a propensity to be visible and obvious in its material aspects as well as in the performance and function of the members. Hence, it is deliberated as the outline of valuable statements that have proceeded well sufficient to be able to be deliberated as suitable, hence, it is vital to be trained to latest members as the precise technique to differentiate and identify, reflect and experience in connection to dilemmas and issues of outer variation and inner collaboration(Maier 2004). Based on this, it is deliberated as the shared values, customs and norms and also the expectations that guide the manner in which individual’s approach their work, at the same time collaborate with one another. Organizational or corporate culture is diverse from that of the world culture; this is due to those associated on the shared histories, foods, languages, beliefs which are deliberated as the basis and foundation of the identity of an individual. The personal culture influences how a person is deciding on a specific happening as well as conditions that they are encountering. Identifying the organizational or corporate culture entails being able to give emphasis on the identification of the universal references of the corporations and business.

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Organizational or corporate culture has been measured as a compound events and happenings. It is very apparent and clear in the behavioral traditions and backgrounds, concealed statements and also as human nature. Furthermore, the value and worth of presenting corporate and business culture from diverse levels, together with idea and creations, values as well as fundamental postulations (Oden, 1997). The extend in which organizational or corporate culture is consciously as well as overtly rather than unconsciously and covertly manifest, implicates how easily organizational or corporate culture can be changed and managed. When organizational or corporate culture change involves changing surface-level behavioral norms as well as object and piece, it can happen with connected easiness. At the authentic levels of organizational or corporate culture, purpose suppositions, ideas, as well as human nature, it is very complex and consuming to consider changes in organizational or corporate culture. The process of considering and varying organizational or corporate culture is being influenced by diverse level of corporate and business culture under deliberation (De Witte & Muijen 2000).

Overview of Daimler

One of the successful automotive industries in the global market is Daimler AG. Having its divisions of brands such as Daimler Trucks, Mercedes-Bens Vans, Mercedes Bens Cars, Daimler financial services, Daimler Buses, the industry is considered to be one of the biggest manufacturers of premium cars and vehicles as well as the biggest producers of the commercials automotive vehicles with a global market reach. On the other hand, the Financial Services division of the automotive industry offers their clients with a full range of automotive financial services which include leasing, financing, insuring and fleet management. The founders of the industry have been able to create a history by inventing the automotive in 1886. Being the pioneer for automotives, the automotive industry continues to mold the future of mobility. Daimler group of automotive industry consider innovative and green technologies to be able to generate safe as well as superior automotives that fascinate as well as satisfy their clients.

Due to the development of alternative drive determinant and attributes, the automotive industry is noted to be the only producer of vehicles that invests in hybrid drive, electric motors as well as fuel-cell approaches, with the objective of attaining emission-free mobility for the long run. Such is just one of the examples of showing how the automotive industry eagerly accepts and considers challenge of meeting their corporate social responsibilities for the environment and the society. The automotive industry is selling their services and vehicles in nearly all the nations in the global market and has manufacturing plans and facilities on the five continents. The current brand portfolio involve, as part of the global masters most valuable automotive brands, Mercedes-Benz, the brands smart which includes the Fuso, Setra, Western Star, Maybach, Feirghtliner, Thomas Built Buses and Orion.

Part of the technique and approach of the automotive industry is to merge and acquire different automotive industry to position the industry in the global market and to grasp competitive position in the world market.

PEST Analysis

It can be noted that the automotive industry has been dependent on global business climate as well as its cycles. Accordingly, the car industries have boomed through 1990s, but due to the Asian crisis as well as the beginning worldwide recession for the new generation, there was a slight slump which has been predicted. To comprehend the organisational culture of Daimler, Pest Analysis will be considered.

The following figure shows the analysis of the political, economical, socio-cultural and technological determinant and attributes affecting Daimler.

Figure 1 PEST Analysis

One of the political factor that affects Daimler is the different taxations surrounding European market which lead to re-imports. Herein, the vehicles are being bought abroad, re-imported to the local market which affects the prices. In the period of economical problems, clients do not substitute their cars. On one hand, there are some brands and cars which are common in the market which express a new way of lifestyle. In terms of technological determinant and attributes, automotive industry nowadays are becoming quick in terms of business standards and consider shortened product life cycles. On one hand, to be able to cope with the environmental aspects, further consolidation of the automotive industry are expected.

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Aside from PEST analysis, the automotive industry will also be analyzed through the consideration of Porter’s five Forces model.

Figure 2 Porter’s Five Forces Model

Consequently, it can be considered that the most critical are the relations to buyers and suppliers. In Germany, for instance, the supplier of Fords for door-locks is Kieckert which stopped its supply to be able to force ford to pay more which paralysed the production of the automotive industry. On one hand, the buyers from different parts of the world tend to change from one brand to another, due to the differences in the model and look as well as other features.

Cultural Issues In Strategic New management and corporations

In order to position them in the global market, Daimler Benz has acquired American Chrysler. Accordingly, the sudden acquisition of Daimler Benz to Chrysler has happened because most of the leaders and the management of Chrysler have chosen to retire or leave. Aside from this, most of the functions and operations of the Daimler have been moved to Germany. Consequently, due to this decision the new automotive industry has encountered different cultural issues due to the cultural diversity.

One of the most essential determinant and attributes to consider is the organisational cultural determinant and attributes. Consequently, it can be considered that since Daimler and Chrysler was based in different countries with different culture (Germany and America), these automotive industries have some cultural variations, diversities and differences. Though the automotive industry does not almanners hire new staffs and management, the standards of the corporation including its beliefs, practices and purpose, can powerfully affect the staffs and management and its managements. Relevant studies have claimed that strong cultures help the generation as well as maintenance of corporation’s competitive edge and stability. In the case of Daimler and its acquisition with a new corporation, it can consider that due to the cultural diversities and differences, the diversity management has not been successful. Due to their diversities, both automotive industries have lacked commitment with the Cultural diversity management. With this, many on the German staffs and staffs and management from Daimler saw this acquisition as a temporary determinant and attribute; hence, they did not even bother of improving relationship with their American counterpart.

The cultural consequences become specifically apparent in cross national operations, mergers as well as acquisitions, where not only diverse corporate cultures but also corporate cultures rooted in various national cultures meet like in what happened with Daimler. The inability of the staffs and management to comprehend the culture of each other has lead to disruptive tensions which affects the new management of both automotive industries.

These have been described in terms of the concepts of “acculturative stress” or “culture clashes”. The dilemmas mostly result from the introduction of new management approaches that are incongruent with the values underlying the emerging practices, which happens in Daimler and Chrysler. Even both automotive industries have been aware of the cultural diversity between “German Engineering” and “Cowboy Independence”, both companies often compromised instead of considering digital decisions. Accordingly, cultural clashes happen because there are no clear guidelines and roles in the industry about who had accountabilities and who not. Research and development units have been separated for a long time. Issues happened because of the inability of the management to fulfill one of the crucial aspects. Since it is part of the business cultures in German to give commands instead of discussing it with other members, the managers from Germany have decided in most cases, leaving the management of the acquired corporation staggered.

Figure 3

Alternative Solution

From the definition of change management and organizational cultural, the relation between the two have become very significance, particularly, the management of change in a corporation may involve changes in terms of practices, leadership, technology as well as operations of the corporation. These determinants on the other hand are founded by the conventional culture, values and beliefs of the corporation. They are then greatly affected by the corporation’s culture. Hence, bringing about transitions and modifications to these activities will not be efficient if the core values or culture of the corporation is not identified first. Understanding that the original principles that make these corporation functions work will then make change implementation easier and more efficient.

As mentioned by Ramsey (2004) various management principles that are part of a corporation’s culture, should be taken into consideration for change management. generally these principles consider and involve values such as ethics, trust and loyalty, communication, leadership which include subsidiary, delegation, accountability, self-management) involvement which considers participative and consultative decision-making and work procedures which considers task integrity, work-based management, client-focus, maximization of variable skills, learning.

In considering changes in the corporation, management should be able to understand what relations should be observed between the management as well as employees as well as among colleagues. In this regard, the employees will be able to comprehend their responsibilities contributions to the changes planned by the corporation. This will also enable in maintaining harmonious relations among the personnel and employees despite the introduction of changes. The leadership principle is also essential as this will enable Daimler to identify the approach that will be relevant to the issues in terms of cultural differences.

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Within the context of the automotive industries, globalisation trends have lead to excessive competition between and among industries that adhere to the demands and requirements on car and automotive products and services. In this regard, it can be sad that the multi-level and large-scale operations among automotive industries like Daimler led to the formation of new business approaches that regards the entirety of the conventional business processes. The search for continuous as well as sustainable developments, increased client satisfaction, and faster return on investments as well as the issues and considerations regarding cultural, differences, Cultural diversity management, shorter product life cycle, innovation, and more sophisticated client specifications needed and mostly the issues of cultural diversities needed the call for extensive change management of business goals as well as performance objectives to be able to meet the demands of the existing market economies along with aims to gain competitive edge and stability over industry competitors. In this regard, more and more automotive industries try to stay in the competitive environment by considering the management of cultural diversities in the industries.

Cultural diversity management have been recognised to be one of the strategic manners in business operation growth as well as expansion in the global market. In line with the technique and approach of automotive industries, it can be considered that the used of Cultural diversity management to be able to solve the issues of cultural differences because of the collaborative venture or merger and acquisition which has been considered by Daimler with Chrysler. Cultural diversity management facilitates automotive industries to grow both internally and externally because through this Cultural diversity management, the partnerships of the family of the acquired automotive industry have increased, not only in its local operation but also in global environment.

In addition, through the efficient use of Cultural diversity management, DaimlerChrysler acquisition, are able to gain competitive edge and stability among its rival automotive industry. Competitive edge and stability only arises from establishing differentiation. Although this Cultural diversity management have been successful, there are some essential determinant and attributes which the management of automotive industries can be considered when going into a Cultural diversity management.

It can be considered that creating a successful Cultural diversity management between two automotive industries should be able to concentrate on logistical planning as well as operational integration.

Unlike local and national corporations, global Cultural diversity management are tasked with higher accountabilities which made them highly accountable to every decision as well as policy they make. The vast influence as well as significant implications of the decisions as well as laws that result from intensive deliberations of member representatives of the World Bank and the World Trade Corporation are normally faced with cultural challenges that threaten the stability as well as sustainability ty of the Cultural diversity management which subsequently may lead to complex realisation of the goals of the corporation. The dilemmas and issues which arise from differing cultural interpretation should be in the reality of consistent evaluation and adjustment. Resolving immediately the differences which hinders the effective and efficient function of global Cultural diversity management should be crucially reviewed in order to promote development as well as growth of every member.


The context of Cultural diversity management as one of organizational approaches to reach efficient organizational culture, may be assessed in different underlying determinants; these include the objectives of the Cultural diversity management, the logic as well as the technique and approach used for the Cultural diversity management and cultural diversity. The predictability of Cultural diversity management in considering the increasing automotive competition addresses the situation and considerations that industries must give consideration onto before considering Cultural diversity management.

In the case of automotive industry such as Daimler, the automotive industry can consider cultural diversity managements to stay in the competitive market and perform better within the global market environment with harmonious and smooth relationship with the staffs, by giving innovative and new products in terms with automotives and car manufacturing through the ideas that the management gain due to Cultural diversity management with other automotive industries. It presents that without such technique and approach, the automotive industry may not be able to expand its business portfolio and solve the issue of cultural diversity. It can be concluded that Cultural diversity management, along with the contexts of strategic management and other efficient marketing technique, can make a automotive industry to succeed in achieving its goal of providing quality products with their target audience and ensuring good corporate or organizational culture all throughout.

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