Daimler Vs Chrysler

There are many differences between the structure of the enterprise and the way employees work because two companies come from different countries. First, the difference between power distance. Power distance refers to the degree of centralization of power and the degree of dictatorship in an organization, we can interpret the distance of power as the extent to which members with weak power in an enterprise expect to be unfairly distributed. Daimler is from Germany, where the company pursues a top-down management system, so leadership may have some privileges, and managers have more respect for experienced employees, which could lead to contradictions between new hires and managers. Therefore, the power distance of German enterprises is larger (Kuchinke, 1999). Chrysler is a …show more content…
Unfortunately, neither side has the habit of working in groups, they must quickly cultivate the habit of working with team members to solve problems, otherwise they cannot finish the merger within 3 years. Third, there is a big difference between Daimler and Chrysler's development strategy. Daimler's long-term positioning choice means that companies focus more on future development, their attitude towards work more pragmatic, relying on current efforts to pave the way for the future development of enterprises (Gregor, 1998). As an American company, Chrysler is more focused on solving the problems the company is facing, they tend to maintain traditional norms (Liu, 2014). The pay system in America and Germany is different, American employees are rewarded because they have done their job well (Kovach, 1987). In the new company, two of the chairmen believe that employees can also rely on their hard work to create more value for their company, in addition to earning a fixed income, and to earn extra income for