Contemporary Management
Research paper
Group: D
By: Ahmed Gamal Ashmawy Ashmawy
Supervised By: Dr. Khaled Bekhet
Table of contents
1. Introduction
…………………………………….. 3
2. Organizational Structure
…………………………………….. 6
3. Centralization , Decentralization
and Leadership style
…………………………………….. 9
4. Work Specialization
…………………………………….. 9
5. Managing Organizational Change
…………………………………….. 9
6. Decision making process and
Planning
…………………………………….. 11
7. Social responsibility &
Sustainability
…………………………………….. 12
8. Ethics
…………………………………….. 13
9. control
…………………………………….. 13
10. Ford Entrepreneurship and
Innovation
…………………………………….. 14
11. Information system:
…………………………………….. 15
12. Conclusion
References
16
…………………………………….. 17
2
1. Introduction:
Ford motor company is an American multinational automaker, it’s headquartered in Dearborn,
Michigan. It was founded by Henry Ford. The company sells cars and commercial vehicles under
the Ford brand and most luxury cars under the Lincoln brand. Ford also owns Brazilian SUV
manufacturer Troller, and (8%) stake in Aston Martin of the United Kingdom and a (49%) stake
in Jiangling Motors of China. It also has joint ventures in China (Changan Ford), Taiwan (Ford
Lio Ho), Thailand (Auto Alliance Thailand), Turkey (Ford Otosan), and Russia (Ford Sollers). The
company is listed on the New York Stock Exchange and is controlled by the Ford family; they
have minority ownership but the majority of the voting power.
Ford is the second-largest U.S.-based automaker (behind General Motors) and the fifth-largest in
the world (behind Toyota, VW, Hyundai-Kia and General Motors) based on 2015 vehicle
production. At the end of (2010), Ford was the fifth largest automaker in Europe. The company
went public in 1956 but the Ford family, through special Class B shares, still retain 40 percent
voting rights. During the financial crisis at the beginning of the (21st) century, it was close to
bankruptcy, but it has since returned to profitability. Ford was the eleventh-ranked overall
American-based company in the 2018 Fortune 500 list, based on global revenues in 2017 of
($156.7) billion. In 2008, Ford produced (5.532) million cars and employed about (213,000)
employees at around (90) plants and facilities worldwide.
Ford motor company has summarized its vision under the statement “people working together
as a lean, global enterprise for automotive leadership.” , and mission statement is “One Team.
One Plan. One Goal.” Both statements describe mission and vision of ford motor
Ford motor company vision statement is “people working together as a lean, global enterprise
The global leadership point of the vision statement indicates that Ford Motor Company wants to
become the top player in the international automotive market. Ford is currently the fifth biggest in
the world, and the second largest U.S.-based automobile manufacturer, behind General Motors. In
this regard, Ford still has more to work on to reach its vision statement’s point of global leadership.
On the other hand, the vision statement’s emphasis on stakeholders is achieved through Ford’s
enhanced HR policies, as well as corporate social responsibility strategies for employees,
customers, investors and others. Ford’s vision statement also highlights lean business operations,
which the company already achieved through its assembly line methods. Thus, based on its current
condition, Ford Motor Company needs to work on growing its sales to achieve global leadership
and fulfill its vision statement.
Ford’s mission statement is “One Team. One Plan. One Goal.” This mission statement is also
known as the “One Ford” mission, which is part of the “One Ford” plan that was unveiled in 2008
under CEO Alan Mulally’s leadership. Ford explains that the expanded form of its mission
statement is as follows:
3



One Team: “People working together as a lean, global enterprise for automotive
leadership, as measured by: Customer, Employee, Dealer, Investor, Supplier,
Union/Council, and Community Satisfaction.”
One Plan: “Aggressively restructure to operate profitably at the current demand and
changing model mix; Accelerate development of new products their customers want and
value; Finance their plan and improve their balance sheet; Work together effectively as
one team.”
One Goal: “An exciting viable Ford delivering profitable growth for all.”
Ford Motor Company’s current mission statement is a response to the challenges it experienced,
especially in relation to market risks and the American recession and global financial crisis that
started in the late 2000s. Prior to implementing the One Ford mission statement, the company had
disparate product lines in different markets. With the One Ford mission statement, the company
now focuses on creating consistency in product and service design and quality globally. The
mission statement emphasizes teamwork to achieve synergy at Ford. The One Plan and One Goal
components also indicate that the mission statement focuses and unifies Ford’s global
organizational efforts to improve business performance and achieve the global leadership point in
the company’s vision statement.
4
The Board of directors is elected by and responsible to the shareholders. Their duty is to monitor the
performance of the CEO and senior management to guarantee Shareholder interests are being served
Ford motor company board of directors:

William Clay Ford, Jr. Executive Chairman and Chairman of the Board

Stephen G. Butler

Kimberly A. Casiano

Anthony F. Earley, Jr.

Edsel B. Ford II

James P. Hackett

William W. Helman IV

William E. Kennard


John C. Lechleiter
Ellen R. Marram

John L. Thornton

John B. Veihmeyer

Lynn M. Vojvodich
 John S. Weinberg
The Board of directors has established the following committees to assist their work:
 Audit,
 Compensation,
 Environmental and Public Policy
 Finance and Nominating
 Governance.
Company heroes:

Henry Ford: Founded the Ford Motor Company, which become one of the world's largest
and most profitable companies. It has been in continuous family control for over 100 years
and is one of the largest family-controlled companies in the world.

Alan Mulally: former President and Chief Executive Officer of Ford Motor Company.
He saved Ford Motor Company from bankrupt and return the company back on track.
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2. Organizational Structure:
Ford organizational structure is based on business needs in varying market conditions around the
world. Organizational structure of a company describes the configuration of organizational
components and their system of interaction. In Ford’s case, the organizational structure directly
relates to the global automotive industry condition. The international scope of Ford’s operations
also determines the key organizational structure components needed to withstand competition and
market risks. In this regard, Ford’s position as the second biggest U.S. based automobile
manufacturer is an indication of its organizational structure’s effectiveness in supporting the firm
for continuing business growth and high performance. Ford Motor Company’s organizational
structure is divided according to regional markets.Ford Motor Company’s organizational structure
is based on the need to control operations according to regional market conditions. Markets
belonging to the same region have similarities used as basis for regional structuring. The following
are the main features of Ford Motor Company’s organizational structure:
Corporate Pyramid. Ford has a traditional corporate pyramid in its organizational structure. For
example, Executive Vice Presidents report to CEO. Middle managers report to these executive
Vice President. This characteristic of Ford’s organizational structure supports traditional business
management approaches that aim for effective top-down control.
Regional Geographic Divisions. Ford has large geographic divisions in its organizational
structure. Typically, global companies divide their operations into several regions per continent or
subcontinent. However, Ford’s organizational structure is divided into only three regional
geographic divisions that cover all its markets around the world. A potential effect of this feature
of the organizational structure is the relative ease of integration of business strategies, an executive
VP heads each division. Ford’s main regional geographic divisions are:
 The Americas.
 Europe, Middle East, and Africa,
 Asia Pacific.
Global Functional Groups. Ford Motor Company’s organizational structure also has functional
groups, each of which represents a specific business function. A Vice President heads each of these
groups. The main functional groups in Ford’s organizational structure are as follows:











Global Manufacturing and Labor Affairs
Global Marketing, Sales and Service
Human Resources and Corporate Services
Quality and New Model Launch
Global Product Development
Government and Community Relations
Global Purchasing
Communications
Finance
Legal
Accounting
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Chain of command: The chain begins with the CEO who is in charge of the whole entire company
and every Vice President reports to. Then departments are broken into sub-departments within a
bigger department that is led by the Vice President of that particular department and an Executive
Directors or Director. According to classification based on functions; there is a CEO, a chairman
and a number of vice presidents. Under CEO work:
 Group vice presidents
 Executive vice presidents
 Chief operating officer
 Chief technical officer
 Chief financial officer
The group vice presidents deal with:





Procurement
Legal
Manufacturing and labor affairs
HR and corporate service
Quality and new model launch
The executive vice presidents handle operations related to:




Europe, middle east and Africa
The Americas
Ford motor credit company
Global sales and services and Lincoln
The Chief Operating Officer handles:


Global trading and automotive risk management
Communications
The Chief Technical Officer handles:




Ford of Europe
Sustainability, environmental and safety engineering
Engineering and global product development
Powertrain engineering
The Chief Finance officer deals controller and treasurer. Under these chief officers works a number
of respective directors. The following chart shows the organizational structure. Ford is a functional
organization. Each employee reports to a functional manager. At the same time, they understand
the importance of a focus on the final product.
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8
The Span of control within the company differ from one department to another but there are a low
span of control , except for the span of control for the CEO is quite large as there are so many
divisions and branches in the company.
The delegation differs from branch to branch depending on the size and relative amount of
employees in each branch for example In the design branch, many responsibilities of the Executive
Director, are delegated to the Chief of each sub-branch or the head of each sub-branch within the
bigger branch. Then the tasks are again divided and delegated among those in that branch.
3. Centralization , Decentralization and Leadership style
Ford Motor Company’s being a global organization exhibits complex structure, mechanistic in
Nature. The degree of centralization is high. Ford Motor had a clearly defined order with the
decision making authority was pretty much with the upper level management. These Culture was
relatively changed and it was more of employee-centered culture. During that phase employees
were given respect and formal authority of decision making. Innovation was preferred and
management took active action in increasing the commitment and participation of the employee.
Ford motor company used the autocratic leadership, which generally involves one person making
all strategic decisions for subordinates, but in 2008 ford motor company changed its Leadership
style to democratic leadership, which is a participative leadership or shared leadership, is a type
of leadership style in which members of the group take a more participative role in the decisionmaking process.
Ford has medium Employee empowerment, Employee empowerment is giving employees a
certain degree of autonomy and responsibility for decision-making regarding their specific
organizational tasks. It allows decisions to be made at the lower levels of an organization where
employees have a unique view of the issues and problems facing the organization at a certain level.
4. Work Specialization
Ford motor adapted the principle, called "division of labor," which made workers to focus on doing
one thing very well, without being responsible for the different tasks at the same time. Work
specialization ensures that all employees have specific duties that they are expected to perform.
5. Managing Organizational Change
Organizational change occurs when a company makes a transition from its current state to some
desired future state. In 2006 Ford was facing problems and it was about to bankrupt
The restructuring plan of Ford comprises four key priorities:
9
i.
Aggressively restructuring to operate profitably at the current demand and changing mix
ii.
Accelerating development of new products customers want and value
iii.
Financing the plan and improving the balance sheet
iv.
Working together effectively as a global team.
.
In order to improve the complex situation for Ford they used the following strategy:
i. Management
True leaders are strong, knowledgeable, and manage risks. They oversee all fundamentals but
delegate – finance, marketing, operations, product management and customer service. Executives
must also have a team spirit – an environment of collaboration.
ii.
Vision
Top managers possess skills in analyzing their strengths, weaknesses, opportunities and threats in
strategic planning. They avoid complacency and must continually fine-tune the company when
appropriate. That means habitually practicing the Principle of Contrary Action, which is a process
of learning how to keep an open mind.
iii.
Focus
Managers must outline their master plan, stay focused and inspire the staff – the frontline
responders to the marketplace – where the proverbial tire meets the road. Nothing great has ever
been accomplished without enthusiasm and passion.
iv.
Best Practices
Senior management must inspire best practices for quality in all areas. Creating value is job one.
v.
Mobility and flexibility
The 21st century marketplace requires quickness and mobility. This also means empowering all
workers in decision-making and in being proactive.
vi.
Listening skills
Effective managers are approachable. In a proverbial sense, they walk the floor twice a day to
interface with their employees. They hire managers and staff members who, too, are effective in
listening skills. That’s the first step for a motivated staff and creating profits. Without even looking
at financials, an astute outside participant will always be able to ascertain the success potential of
a company merely by watching the interactions between management and staff.
vii.
Communication
Good, open communication is required internally with the team members and with the customers
and marketplace. In this way, you’ll take great steps in inspiring loyalty from customers.
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6. Decision making process and Planning
Planning and decision making is a big part of the Ford Motor Company.
In ford they say “When making a plan for a company, the manager must trust the people around
him or her to make a decision in the best interest of the business outline. Meaning the manager
must trust the plan because it is what they see for the future of the company. We must trust in
what God has in store for us even when we do not know the future much like the manager must
trust in the plan even when the future is uncertain”.
The major ideas of planning

Mission- Why the organization exists

Vision- What the organization is working to become in the future

Values- What the organization stands for

Commitments- Sticking to the business outline

Objectives- What needs to be achieved everyday
A straightforward planning process based around objectives, actions, and self-control. Which
have the following steps:
i.
ii.
iii.
iv.
Setting objectives
Developing an action plan
Monitoring results
Making adjustments
The Ford Motor Company takes decision making very seriously. Most of the time decisions are
made by the manager with influence from the owner or Ford headquarters. Planning represents
management's attempts to anticipate the future and win some security against the menace of
temporal change of which man's time sense makes him so urgently aware.
Decision-making steps:
i.
Step 1: Define the problem
ii.
Step 2: Analyze the problem
iii.
Step 3: Develop solutions
iv.
Step 4: Decide the best solution based on reasonable alternatives
v.
Step 5: Convert decision into effective action
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7. Social responsibility & Sustainability
Ford defines corporate social responsibility as being willing to help others, being environmentally
conscious and socially tolerant. With those guiding principles in mind, Ford has designed a special
programs to promote tolerance and equal opportunities, and actively support social and
environmental protection programs.
Ford vision is not just about selling more cars. It’s to make people’s lives better by changing the
way the world moves. In the process, they can help shape a better world through acting responsibly
and doing their part to address issues that affect people and the planet, like air quality, congestion,
and associated social and environmental impacts are important challenges. So ford committed to
improving fuel efficiency and reducing emissions. There is high standards of governance for
sustainability in the company so there is the following:
Sustainability and Innovation Committee:
 Primary responsibility for reviewing strategic sustainability issues

Evaluates and advises on innovations that improve their environmental and social
sustainability, and the strategies to bring them to market

Other Board Committees include Audit, Compensation, Nominating and Governance,
and Finance.
Group Vice President of Sustainability, Environment and Safety Engineering (SESE)
Primary responsibility for sustainability issues
 Oversees the Sustainability & Vehicle Environmental Matters group, the Environmental
Quality Office, the Vehicle Homologation & Compliance group and the Automotive
Safety Office
 Leads a multidisciplinary senior-level team to oversee their actions in response to their
climate change and sustainable mobility strategies
 Other executive and group vice presidents across their functional areas also have
responsibility for sustainability-related issues.
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8. Ethics
Ford Motor Company has been recognized as one of the world's most ethical companies by
Ethisphere Institute, a leading business think tank. Ford is one of only a 100 global companies and the only automotive manufacturer - to be included in the list.
To help their employees do things the right way, and to provide them with the information they
need, when and where they need it, Compliance Office is responsible for developing innovative
training and communication tools that make compliance with corporate policy and the law as easy
as possible.
Ford have many Policy Letters and Directives formally establish expectations for the employees
and others working on their behalf. Ford primary ethical guidance document is their Code of
Conduct Handbook, which contains the most important and relevant of their letters and
directives. The Code is available in 14 languages to ensure accessibility to employees around the
world.
Reporting Violations: ford compliance program encourages and facilitates the reporting of known
or potential violations of the law, or their Policy Letters and Directives. Individuals can report such
violations anonymously to the General Auditors’ Office, Human Resources or the Office of the
General Counsel, using telephone hotlines, website or via email. All allegations are reviewed by a
cross-functional committee, which also oversees the investigations, and implements corrective or
disciplinary actions.
Anti-Bribery and Anti-Corruption: ford facilities around the world need to comply with a wide
range of national laws and governmental enforcement practices. However, it’s essential that they
maintain the highest standards wherever they operate, and don’t accept local norms if they fall
below their own standards. To ensure they do this, they have:
 Crafted clear bribery and corruption policies, and provided procedures for mandatory
reporting of suspected violation of law or policy
 Strengthened the anti-bribery and anti-corruption elements of their Global Terms &
Conditions (and other contracts) for their suppliers
 Assessed their operations for risks related to bribery and corruption, continuing to train
individuals who may encounter bribery or corruption issues in their work
9. control
The Ford Motor Company use Six Sigma strategy for financial and operation. Their goal was to
become a fully-fledged consumer products company and not just another automobile
manufacturer. Additionally, they wished to enhance the quality of their products and to improve
their customer satisfaction rates.
The Six Sigma DMAIC process (define, measure, analyze, improve, control) is an improvement
system for existing processes falling below specification and looking for incremental
improvement.
The Six Sigma DMADV process (define, measure, analyze, design, verify) is an improvement
system used to develop new processes or products at Six Sigma quality levels. It can also be
employed if a current process requires more than just incremental improvement.
13
Ford Company also a multiple control systems for process control which include:
Feedforward Control: focuses on the regulation of inputs (human, material, and financial
resources that flow into the organization) to ensure that they meet the standards necessary for the
transformation process. Feedforward controls are desirable because they allow management to
prevent problems rather than having to cure them later. Unfortunately, these control require timely
and accurate information that is often difficult to develop. Feedforward control also is sometimes
called preliminary control, precentral, preventive control, or steering control.
Concurrent Control: Concurrent control takes place while an activity is in progress. It involves
the regulation of ongoing activities that are part of transformation process to ensure that they
conform to organizational standards. Concurrent control is designed to ensure that employee work
activities produce the correct results. Since concurrent control involves regulating ongoing tasks,
it requires a thorough understanding of the specific tasks involved and their relationship to the
desired and product.
Feedback Control: This type of control focuses on the outputs of the organization after
transformation is complete. Sometimes called post action or output control, fulfils a number of
important functions. Feedback has two advantages over feedforward and concurrent control. First,
feedback provides managers with meaningful information on how effective its planning effort was.
10.Ford Entrepreneurship and Innovation
Ford is stronger supporter of entrepreneurship so it founded Ford Entrepreneurship Academy.
Ford Entrepreneurship Academy is designed to equip current and future employee to be
entrepreneurs with a set of tools to develop their entrepreneurial capacity, share experiences, and
meet new friends with common areas of interests and challenges. This is accomplished through a
group style learning community intentionally designed with experiential learning content.
Ford invest in developing the professional, technical and leadership skills of their employees. They
are establishing a common global framework for how they approach innovation in a customer
centric way, and are incorporating the innovation skills their employees need into their leadership
development programs and professional development offerings. These include a number of
programs specifically designed for current and aspiring executives, directors and managers:




The Global Leadership Summit: Aimed at executives and general managers responsible
for global projects, departments and budgets, these programs are a combination of
immersion in markets and the application of new skills.
Global Executive Leadership: Geared toward directors and senior managers associated
with a region, but with responsibilities that extend to the global enterprise.
Experienced Leader Program: Aimed at middle management, the program helps grow the
capabilities of their skill team leaders running regional large projects and functional
departments.
Salaried Supervisor Institute: A program for new and experienced front-line leaders, which
builds foundational leadership skills and hands-on applications.
14
Ford invest in STEAM (science, technology, engineering, arts and math) programs to inspire an
interest in technology and innovation among schoolchildren. Their mission is to develop and
deliver innovative, aligned programs for students and educators around the world, prioritizing
programs that leverage skills and foster long-lasting partnerships and engagement that nurture
technical talent, so they attract high-school students and prepare them for life in the real world.c
Attendees learn core academic subjects as well as getting involved in engineering, information
technology and manufacturing projects, often conducted at ford facilities.
11.Information system:
Ford technology employed to overcome the constraints usually imposed by geography on
information flow. IT was placed within the process reengineering organization. In the supply
chain area, there was general agreement that. Ford expanded in the IT arena, releasing an Internet,
Intranet and Extranet site. Ford teamed with Chrysler and General Motors to work on the
Automotive Network Exchange (ANX), which aimed to create consistency in technology
standards and processes in the supplier network so that suppliers, already pressed to lower costs,
would not have to manage different means to interact with each automaker. In order to become
even more cost and time efficient, Ford expanded its information systems boundaries to include
suppliers.
System Integration: To increase speed of communication, make information readily available to
all parties, including production, order and billing, and the customer, ford merged all its
information systems together.
Ford Production System (FPS), which is an integrated system aimed at making Ford
manufacturing operations leaner, more responsive, and more efficient.
Order to Delivery (OTD), a project designed to reduce days to delivery to 15 from the time of a
customer’s order to delivery of the finished product.
Ford Retail Network (FRN) made its goal to buy all Ford dealers in a local market so the dealers
were in competition with other companies instead of each other.
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12. Conclusion
Ford Motor Company is one of the biggest car manufacturer in the world. It use a traditional
corporate pyramid in its organizational structure, global organization, mechanistic in Nature high
degree of centralization. Ford see corporate social responsibility as being willing to help others,
being environmentally conscious and socially tolerant. Ford has been recognized as one of the
world's most ethical companies by Ethisphere Institute, a leading business think tank. Ford is one
of only a 100 global companies - and the only automotive manufacturer - to be included in the list.
Ford is stronger supporter of entrepreneurship so it founded Ford Entrepreneurship Academy. Ford
Entrepreneurship Academy is designed to equip current and future employee to be entrepreneurs,
so in ford they say “When making a plan for a company, the manager must trust the people around
him or her to make a decision in the best interest of the business outline. Meaning the manager
must trust the plan because it is what they see for the future of the company. We must trust in what
God has in store for us even when we do not know the future much like the manager must trust in
the plan even when the future is uncertain”.
Why I am interested in joining:
I like to join Ford Motor Company because it support Entrepreneurship, it motivate employee to
work and innovate, it is social responsible company, so I see perfect place for me to have
experience and take steps in my career.
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References:
 https://www.ford.com/
 https://corporate.ford.com/homepage.html
 https://corporate.ford.com/microsites/sustainability-report-201718/index.html
 https://corporate.ford.com/microsites/sustainability-report-201718/downloads.html?gnav=sr-footer
 https://corporate.ford.com/content/dam/corporate/en/company/community/fo
rd-fund/Final%20FordFund2017.pdf
 https://en.wikipedia.org/wiki/Ford_Motor_Company
 https://s22.q4cdn.com/857684434/files/doc_financials/2017/annual/03/Final
-Annual-Report-2017.pdf
 http://panmore.com/ford-motor-company-organizational-structure-analysis
 https://prezi.com/5uwf1qan5gqx/ford-motor-company-organizationalstructure/
 https://www.scribd.com/doc/55018084/Organizational-Structure-andDesign-Ford-Motors
 https://creately.com/diagram/example/hovexab9/Ford%20Motor%20Compa
ny%20New%20Organizational%20S
 https://www.autonews.com/article/20170619/OEM02/170619757/why-fords-new-structure-might-make-sense
 https://www.theofficialboard.com/org-chart/ford-motor
 http://www.cogmap.com/chart/ford-motor-company
 https://www.academia.edu/17491429/Ford_Motor_Organisational_Behavior
 https://www.reuters.com/finance/stocks/company-profile/F.N
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