1. Based on the description, please evaluate Bob Eaton's performance management leadership skills using the accompanying table on pg. 257.

2. If a certain principle, function, or behavior is missing, please provide recommendations about what he could have done more effectively.

 

 

CASE STUDY 9-1 Was Robert Eaton a Good Coach? Robert Eaton was CEO and chairman of Chrysler from 1993 to 1998, replacing Lee lacocca who retired after serving in this capacity since 1978. Eaton then served as cochairman of the newly merged DaimlerChrysler organization from 1998 to 2000. With 362,100 employees, DaimlerChrysler achieved revenues of EUR 136.4 billion in 2003. DaimlerChrysler's passenger car brands include Maybach, Mercedes-Benz, Chrysler, Jeep, Dodge, and Smart. Commercial vehicle brands include Mercedes-Benz, Freightliner, Sterling, Western Star, and Setra. From the beginning of his tenure as CEO, Eaton com- municated with the people under him. He immediately shared his plans for the future with his top four executives and then took the advice of his colleague, Bob Lutz, to look around the company before making any hasty decisions concerning the state of affairs at Chrysler. Eaton and Lutz ascertained that Chrysler was employing the right staff and that they did not need to hire new people; they just had to lead them in a differ- ent manner, that is, in a more participative style. Eaton listened to everyone in the organization, includ- ing executives, suppliers, and assembly-line workers, to determine how to help the company succeed. Eaton also encouraged the employees at Chrysler to talk with one another. The atmosphere of collaboration and open-door communication between Eaton and Lutz (the two men sat across the hall from one another and never closed their doors) permeated the entire organization. Eaton and Lutz's walk- around management style indicated to employees that they were committed to and engaged in the organization. Furthermore, Eaton and Lutz held meetings with their execu- tive team on a regular basis to exchange ideas and informa- tion from all areas of the organization. Eaton even reorganized the manner in which Chrysler designed cars based on a study, previously disregarded by lacocca, that indicated that Chrysler needed to be more flexible and its executives needed to be in constant commu- nication with the product design team. One employee was quoted as saying, "Bob Eaton does not shoot the messenger when he hears something he doesn't like or understand. He knows that not every idea is right. But Bob is off-the-wall himself.... He'll say something, and we'll tell him that it's a crazy idea.... He may not change his mind in the end, but he'll spend the time explaining to you what is behind his thought processes. Do you know what kind of confidence that inspires?" This type of open communication at the top proved extremely successful, as summed up by one designer: "It's a system that recognizes talent early and