Ford Motor Company Analysis

Management is considered as the most important element for every organization and different organizations have to comply with the basic principles of management. Organizations that employ basic management skills effectively and efficiently succeed in both the short and the long run. Similarly, these organizations emphasize on external factors and how they can change their conventional style of doing business. Changing the methodology of business is necessary for every organization and employing different measures is good for an organization in both the short and the long run. In this paper we will discuss the how management practices changes with time and the evolution of planning, organizing, leadership and control is discussed with reference to Ford Motor Company.

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Introduction

Management is basically defined as the art or organizing people in such a way that the desired goals can be achieved. Management is a generic term and it varied from organization to organization. However, it is of utmost importance and organizations stress a lot on management. There are different phenomenon’s attached with management and the four basic elements of management are planning, organizing, leading and control (Griffin, 2006). These basic functions vary with organization to organization and these elements change with respect to time. Similarly, it is also not necessary that every organization should implement all four functions. Therefore, these four functions are considered as the core essence of every organization. These four functions are discussed below:

Planning: Planning is related to the long term objectives of the organization and it incorporates certain elements like mission, vision and the corporate strategy of an organization (Griffin, 2006). Planning is linked with the goals of the organization and strategies of an organization are defined in this phase and how an organization can achieve long term success.

Organizing: The internal structure of the organization is linked with this function and the basic management processes are defined in this phase. Elements like how information would flow in the organization and what is the division of labor, authority, span of control and etc are discussed in this phase (Griffin, 2006). The structure of the organization entails elements like whether the structure of the organization is flat, centralized, decentralized or etc.

Leading: In the context of organizations leadership is one of the most important functions and it incorporated certain elements that how an individual leads his/her organization and how well he/she can influence the subordinates to work for the betterment of the organization.

Controlling: This function checks the flaws in the management processes and how one can remove errors in the management process. Different standards and performance oriented measures are placed in the organization (Griffin, 2006).

Therefore, it can be said that these four functions are the pillars of management and an organization heavily relies on these four functions. Management practices change over certain time and the transformation of these practices are essential for an organization.

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Ford Motor Company

The Ford Motor Company is considered as Multinational Corporation which deals in automobiles. This organization is considered as the fourth largest automaker of the world as far as worldwide sales of vehicles is concerned. This organization is based in Michigan and it was founded by Henry Ford and the organization was incorporated in June 16, 1903. Different organizations are owned by Ford Corporation and like Volvo cars of Sweden, and they have certain stakes in Mazda of Japan and Tata Motors of India.

The management of Ford Motor Company is quite rich in every aspect and they implement every management model that is beneficial for the organization. The basic attributes of management which is planning, leading controlling and organizing are implemented in the organization and certain other management attributes like Total quality management, Just in Time inventory and etc are also implemented in this organization. The principles of change management are also implemented in the organization and the organization stresses a lot on change management because they believe that chaining the conventional approach is necessary for growth and the organization can easily climb the ladders of success if they are able to manage the change (Banham & Newman, 2002). That is the reasons why in Ford Motor Corporation different workshops and training sessions are initiated that are directly related to change management.

The management approach of Ford Motors is quite famous around the world and this organization is believed to control the most famous automobiles in the world. They are managing famous brands that are giving favorable returns to the organization. Over different years the management structure of Ford is adapting to the changing markets and they are adopting new policies because the trends and economic conditions of the markets are changing. They have inculcated theories like business process reengineering and the management processes and the theories of management like Total Quality Management (TQM) are quite commonly used in this organization (Brinkley, 2004). The overall strategy of the organization has responded with the challenges of the industry and the corporate culture of Ford Motor Management is aligned with the modern philosophies.

Lean manufacturing

The biggest development in the management principles of Ford is the development of an inspiring production process known as “Lean Manufacturing”. This model of Lean manufacturing was developed by other strategist but Henry Ford is considered as the first practitioner of this model. This model was initiated after the management techniques of Japanese were developed. The process of lean manufacturing is based on the phenomenon that every employee in the organization must be partnered in the drive for success. The organization took all the elements that are present in the manufacturing systems which include people, tooling, machinery, products and etc. These elements were then arranged in a continuous systems and the objective was to develop the Model T automobile. With this novel approach Ford quickly become the richest man on earth and the he out the world on wheels (strategosinc, 2008). That is the reason why Henry Ford and its organization are considered as the first practitioner of Just in time and Lean Manufacturing systems.

The Effective Managerial Approach of Henry Ford

The basic function of leading is implemented in this phase and the organization embedded this function quite. With the charismatic leadership of Henry Ford the firms was quite successful and hey initiated certain new processes in the organization. These innovative processes and management principles are discussed below:

Assembly Line Innovation: The growing demand was figured out by Henry Ford and as a result of that Ford developed a new factory which was using the parts which were standardized and interchangeable in nature and they were actually linked with a conveyor belt based assembly line. This process was of managerial excellence and it allowed the organization to build the entire car in just 93 minutes. The process was so robust that the organization was producing around 1 Million vehicles in a single year. This strategy was so successful that Ford was able to market to the general public (Lewis, 2003). The factory at that time included all the elements to construct the vehicles which would include a steel mill, assembly line and the glass factory.

Management Style: The personality of the leader was quite firm and it was strongly based on the phenomenon of opinionated personality. Many people believed that he possess stubborn management style when he hired different spies and company police to keep a check on its employees. However, in the later stages his management style changed and he worked for the betterment of his/her employees.

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Other inventions and innovations: They have implemented different elements of change management in their production processes and this process management has helped the organization to achieve their long term goals. One of their innovative policies was to cut the work day from nine hours to eight hours and in this manner the factory could easily convert the 2 day shift to a three day shift. The process of reengineering was also innovated in the organization and an element of patenting a transmission mechanism was developed.

Transformational Leadership in Ford Motors

The leadership of Ford motors is quite phenomenal and all the leaders are change oriented and that is the reason why the company excelled in both the short and the long run. The senior management in Ford manages the employees in a proactive manner and they implemented different strategies that are beneficial for the employees in both the short and the long run. Since the employees were managed properly that is the reason why the company was experiencing favorable returns.

After the policies of Ford Motor Corporation the state of Michigan converted into a cradle of revolution. The managers of Ford Motor Corporation are considered to be cooperative and they empower the employees to produce best possible results. This approach benefitted Ford organization a lot and the company was once considered as a hub of reengineering and transformation. This organization implements all the modern management principles and they believe that principles like Kanban, JIT, Kaizen although were developed by some other organization but it is no harm in adopting these techniques as these principles are beneficial for them in both the short and the long run and the organization can maximize its profits with this approach. That is the reason why besides all the basic management principles like planning, organizing, leading and controlling certain newer functions are also implemented within the organization (Meyer, 2007). These newer principles are adopted and implemented with the cooperation of employees and the employees are the one that implements change in this organization. That is the reason why the organization comes up with different designs of automobiles and novel ideas through which their customer base is extending. The customer preferences are evaluated through feedback and survey and the entire organization is carrying out a channelized approach in which all the stakeholders of the organization are benefitting from it.

The business model of Ford was very successful and it was quite stable as well. The systems were linked with each other and newer technologies and phenomenons were implemented. However, a time came when they were facing problems in the automobile industry and much of their sales were from the trucks and not from their core business that is cars. After that Ford initiated new model of cars and engaged the employees in brainstorming session that allowed the company to grow at a rapid pace. At that time the CEO of the company (Jacques Nasser) claims that company is not moving along a fast pace and they have to change their mindsets. In order to face the stiffer competition they have to find new and innovative ways of doing business.

This organization implemented all the basics of management which includes planning, organizing, leading and control but they organization was still not managed properly. They allow employees to engage in brainstorming sessions and they were allowed to prepare strategies for the business (Meyer, 2007). Through this the element of planning was completed. Similarly, the organization has divided individuals into groups and in this manner the tasks are organized. The process of the organization run in controlled fashion and it is open to all the stakeholders of the company. Similar, proper leadership plans and programs were implemented in the organization.

This organization has certain issues with transformation but the front line managers are trying hard to change and transform the approach of the organization. One of the managers focuses on the assembly line and he has devised mobile service units for the betterment of the organization. Similarly, another manager of the organization is willing that the organization should change the brand and make it a bit interesting arranging Ford branded leisure programs and adventure trips. This strategy would enhance the customer base of the organization and the organization can retain their customers on a long term basis. Similarly, an employee of the organization presents a basic idea that free oil change and other services should be offered to the customers during the warranty period in this way their loyalty towards the brand would be increased.

In these ways the managers and the employees coordinated together for the betterment of the organization and this transformational overall should increase the profits of the company. This attempt of Ford is developing a strong culture in the organization and their senior managers believe that they are building “warrior-entrepreneurs” in their organization who have the courage to initiate an idea and then they strive hard to make the idea a reality (Meyer, 2007). They have developed different leadership programs that are benefitting the organization and business leadership programs are also implemented in the organization that allows them to increase the communication levels of the employees and to foster the overall growth of the organization. That is the reason why employees are satisfied with their organization and the approach of their organization. A proper managerial environment is initiated in the entire organization which focuses on the basics of management and inculcates certain other managerial issues.

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Conclusion

Therefore, it can be concluded that Ford Motor Corporation is one of the best automobile companies of the world but the organization has progressed through leaps and bounds. This organization has initiated many management policies and they have adopted the policies of other players in the market. This organization has worked on a goal that efficiency can only be achieved if proper policies are implemented in the organization and a theoretical approach must not be implemented by the organization. A practical managerial approach is the winning strategy in automobile business. Change with respect to time and essential for the organization in the short and the long run. A proactive policy is considered as an integral element for organizations.

That is the reason why proper policies must be implemented in the organization. Ford Motor Corporation initiated different managerial concepts like lean production and etc and these managerial concepts are adopted by organizations of today’s world. The leadership of this organization is quite phenomenal and different leadership’s styles are implemented within the organization. Usually leadership by example and charismatic leadership prevail in this organization. The organization follows the motivational approach and employees are usually motivated by the organization to through extrinsic and intrinsic motivational factors. The organization stresses a lot on basic management principles and that is the reason why they are progressing rapidly. Moreover, with this basic management factors certain elements of change are also initiated and that is the reason why they are aligned with the managerial aspects of other organizations.

Works Cited

Banham, R., & Newman, P. (2002). The Ford Century: Ford Motor Company and the Innovations that Shaped the World. Artisan.

This book deals with the history of Ford. The history dates from the infancy of the Ford factories to the resultant present scenario of the company. This book is entitled with the name The Ford Century: Ford Motor Company and the Innovations that Shaped the World, makes it evident for the readers what it holds. This book educated by providing the answers to the questions regarding Ford and American Revolution. This book is very interesting as it has more than 500 illustrations which excite the readers who are merely the car lovers. Further charts given in the book illustrates the growth of the world’s largely well-known Ford’s company. Different managerial aspects of Ford Motor Company are also discussed in this book.

Brinkley, D. (2004). Wheels for the World: Henry Ford, His Company, and a Century of Progress. Penguin.

There is nothing extra ordinary about this book because many books have already been published and produced their work in more creative form. The addition of the Ford people is a positive aspect of the book. The ford people include executives, workers, engineers, union organizers etc. This book is the mixture of the upper and lower departments of the Ford factories. The element of employee empowerment and management by objectives is discussed briefly in this book.

Griffin, R. (2006). Management. South-Western College Pub.

This book discuses the basic management models and what are the implications of these models in the perspective of an organization. Elements like planning, organizing, leading and control are discussed in this book. This book gives a proper view when real world examples are used to discuss different issues of management. This book also stresses on organizational efficiencies and how organization can lead with respect to proper management.

Lewis, D. (2003). 100 Years Of Ford: A Centennial Celebration Of The Ford Motor Company. Publications International.

This book stresses on the history of Ford Motor Company. The profiles of the leaders and their management practices are discussed in this book. This book also discusses the newer technques that the leaders of ford have established which includes the lean production techniques and production excellence.

Meyer, S. (2007). The Five Dollar Day: Labor Management and Social Control in the Ford Motor Company, 1908-1921. SUNY Press.

This book focuses on labor management and social control in the organization and what happens in the organization when autocracy prevails in the organization. This book is one of the best books that are related to the management sciences of Ford Motor Corporation.

strategosinc. (2008). Origins & History Lean Manufacturing. Web.

Henry ford is considered to be the only men who at early era of work became highly successful. He considered as the one who put the world on wheels. By merging and consolidating all the constituents he brought out the Gem of the automobile. He is one of the pioneers of the field of automobiles. But he could not maintain the ford system erewhile because the labor working for Ford required money. Another problem was the inability of the ford factories to undergo the productive changes. This website puts light on the significant aspect of the Henry Ford related to war.

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