The Ford Motor Company was born in
Dearborn, Michigan in 1903 by Henry Ford.
With the birth of the automobile, travel became
a lot more easier. This allowed people to travel
at their convenience without the hassle of
having to stick to a train or bus schedule.
Ford Motor Company Organization
◦ Board of Directors
◦ Executive Committee
◦ President
◦ Executive Vice President
The Ford Motor Company is a corporation,
with a flat structure and is a decentralized
organization with a wide span of control.
Staff Divisions
• Industrial Relations Staff
• Sales and Advertising Staff
• Manufacturing Staff
Operating Divisions
• Lincoln-Mercury Division
• Ford Division
• International Division
(Hounshell, n.d., fiq5.)
The Ford Motor Company uses the assembly line
process to build their vehicles. “ The assembly
line is often described as a process that uses
machines to move material from one place to
another, but in practice, machines are not always
needed…
Automotive companies often have assembly lines
that begin with raw materials and end five miles
away with a completed automobile. A structure
for a complex assembly line begins as one main
line with stations along it that are fed by lines
running
perpendicular to it, with each of these side lines
feeding components for the finished product.
Although the assembly line has occasionally
been considered outmoded, it has survived by
repeatedly changing its form (Dictionary of
American History, 2003).
Ford President and CEO Alan Mulally came to the
company in late 2006, came up with the
company’s primary operating plan: “ONE Ford:
One Team, One Plan, One Goal.” Mulally would
change Ford into a leaner, more efficient,
centralized company– something it had never
truly been.
Apart from several business decisions,
including adding new fuel- efficient models,
Mulally’s ONE Ford plan focused on people –
employees who had remained after some fairly
downsizing (Starner, 2010).
Management
The functions of management range from
product planning, location of the facility,
supply of materials to be used, labor force,
and machinery to be used for the production
line. They also determine the placement of the
machinery that will provide the best flow of
work in the facility.
Management
Management is also responsible for making sure
the materials used are routed to the right place for
the start of production, they are also in charge of
creating the work schedule and assigning the
employees to specific work areas.
Felicia Fields, 42, a third-generation Ford
employee named as group vice president for
human resources and corporate services in March
2008, hit the ground running. As a first act,
Fields began consolidating the HR function’s
efforts under what is called the “ONE HR”
initiative.
She and her team did that in several ways,
primarily by standardizing and globalizing as many
HR processes as possible, continuing to build on
Ford’s desire to be a “great place to work,”
solidifying a capable, effective workforce using “a
global, matrixed environment”, and finally,
achieving labor-cost efficiencies to improve Ford’s
competitive advantage (Starner, 2010).
Human Resources
Recruitment
The recruitment process for Ford is
accomplished in many ways, the main one is by
going to their corporate careers website. Other
ways of recruitment are through the use of
social media.
Human Resources
Recruitment
Some examples of social media sites used
are,
• Twitter
• Facebook
• LinkedIn
Human Resources
Recruitment
One other way that recruiting takes place, is
by word of mouth. By having employees tell
their family and friends that Ford is hiring,
they have become a part of the recruitment
process.
Human Resources
Training
The training process for Ford is like any other
manufacturing company, new employees are put
on the production floor and are trained through
the hands on approach. New employees go
through a probation period, this is where
management decides if the employees are able
to perform the job at hand.
Human Resources
Training
By training the employees, they are able to
develop the skills needed to perform all of the
tasks at hand to complete the job. By getting the
proper training, the employees feel confident in
themselves and can prove to management they
can do the job, therefore they get compliments
like good job or keep up the good work.
Human Resources
Development
Ford helps the development of their employees
by using web based and classroom training, as
well as mentoring and coaching from
management.
Human Resources
Compensation
The compensation of employees is the pay
they receive for the work they perform.
Other forms of compensation include merit
reviews, vacation time, and health
insurance.
Marketing
Ford uses different types of marketing
strategies, they use advertising, whether it be in
a newspaper ad or flyer, or it maybe an ad on
tv. Ford also uses social media sites for their
marketing as well. Another aspect used is sales
promotions, this includes rebates and contests
to get the consumer in the door.
Financial
Management Policies
Ford’s policy includes the growth of shareholder
value, business restructuring, improvement of
their balance sheet which will be done by
supporting the planning, manufacturing,
marketing and distribution of their products
world wide.
Financial
Forecasting
One method that Ford as well as other companies
use to forecast their income for the upcoming
year, is by using their past financial statements as
a guideline to what they can expect in the future.
Financial
Short term financing
Ford took out a $23.5 billion loan in 2006 for
which all of the company’s assets were put up as
collateral, including its trademark. The final
payment of that loan was made earlier this year,
resulting in the company’s debt rating being
upgraded to investment grade (“Will Ford’s”
2012). The type of loan used for this purpose is
called a secured loan.
Financing
Long term
To obtain long term financing, Ford can
reinvest company earnings, sell stocks to
outside investors, or bring in venture
capitalists.
Financial
“While General Motors and Chrysler were heading
blindly over the edge of the cliff during the global
financial crisis, Mulally steered his company in a
very different direction. Almost as soon as he took
over at Ford he went out and raised funds using the
company as collateral”(Ritson, 2010).
As the price of oil and gas are on the rise, the
technology of Flexfuel, Ecoboost and electric
vehicles are also on the rise. Therefore the
demand for a more fuel efficient vehicle is on
the rise. By trying to keep up with the
consumer’s demand of these vehicles, supplies
are becoming limited. With NAFTA in place,
this allows the government
to reduce their spending as well as being able
to lower taxes. Therefore this should provide a
stable economy.
Economic Impact
Key Indicators
Some indicators that have effected the Ford
Motor Company, are the unemployment rate, the
ability for consumers to get credit, price of
materials, labor costs, just to name a few.
“Assembly Line.” Dictionary of American
History(2003). Retrieved April 03, 2013.
Retrieved from
http://www.encyclopedia.com/doc/1G23401800294.html
Reference Page
F-Ford Motor Company Forecast. Retrieved from
http://www.money.cnn.com/quote/forecast.ht
ml?symb=F
Reference Page
Hounshell, D., A. (n.d.). Ford Automates:
Technology and Organization in Theory
and Practice. Retrieved from
http://www.thebhc.org/publications/BEHpr
int/v024n1/p0059-p0071.pdf
Reference Page
Ritson, M., (2010, August 13). What Marketers
Can Learn From Ford. Branding Strategy
Insider. Retrieved from
http://www.brandingstrategyinsider.com/201
0/08/what-marketers-can-learn-fromford.html#.UWnCybXnvbw
Reference Page
Starner, T. (2010, June 2). Ford’s Turn. Human
Resources Executive Online. Retrieved from
http://www.hreonline.com/HRE/view/story.j
html?id=439666514
Reference Page
Will Ford’s Debt Make It An Attractive Auto
Sector Investment? (2012, Nov 21).
Seeking Alpha. Retrieved from
http://www.seekingalpha.com/article/024271
-will-ford-make-it-an-attractive-auto-sectorinvestment.html