Essay 1

Essay 1

Fiat’s Extreme Makeover by Sergio Marchionne. “My job as CEO is not to make business decisions-it’s to push managers to be leaders” said by Sergio Marchionne, CEO of Fiat Group, Turin, Italy. Above given quote explain main theme of the article and one of the problem of Fiat till 2004. This article mainly covered around Fiat and Apple. Mr. Marchionne applies very simple but effective practice of identify leader, promote them, set higher goal and to praise them to achieve those goals. Sergio Marchionne became CEO of Fiat Group in June 2004. Before Mr.Marchionne joins Fiat there was four CEO’s change in last three years. When MrMarchionne join Fiat he tried to make changes in company to bring it out from its down town. The Great Man model of leadership is implemented in the company with the expectation of everyone to take leadership where ever it required. Italian companies follow traditional decision making practices where decision is being made by CEO of the company. Giant business unit like Fiat is not able to lead on only person decision it requires senior leadership as well. Mr. Marchionne identifies plenty of hidden leadership potential in their work force and work hard to bring them on the surface. Mr. Marchionne identifies twenty potential leaders from their Brazil and Argentina plants and promotes them to higher position. First step for Mr. Marchionne is to identify hidden leadership in the company and try to bring them out. He spent four to five months in performance review for top 700 people in the company. He plan meetings usually in very formal ways like calling in odd hours and he also cares about his employees. Mr. Marchionne believes that a leader who fails to meet an objective should suffer some cost, but it is not the end of the world. Market and economics are not always predicted perfectly. Setting clear targets is another main task of Mr. Marchionne for newly created leadership based organization. He sits with more than 20 people in a meeting...

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