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Culture at ford motor company

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Culture change at Ford Motor Company

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Culture at ford motor company

  1. 1. Culture of Ford Motor Company: Presentation by: Steve Guertin
  2. 2. Article Overview: • CEO Alan Mulally took over a culture that needed massive changes. • Mulally implemented the “One Ford” plan. • One team, One plan, One goal. • Foster Functional and Technical Excellence. • Own Working Together. • Role Model Ford Values. • Deliver Results. •
  3. 3. Article Overview Continued: “One Ford” • Teamwork is a new key component within the Ford Motor Company culture. (Getting to know fellow employees is a major emphasis.) • Leadership positions need to have the same goals and expectations as line level employees. (Communication from the top down is imperative). • Mulally is very well known for his impeccable memory. (Something as simple as remembering somebodys name can go a long way).
  4. 4. What is Organizational Culture? • According to The Business Dictionary, Organizational Culture is “The values and behaviors that contribute to the unique social and psychological environment of an organization”. • Every successful company is able to mold its own unique environment which leads to maximum productivity for that company. • What works for one company may not work for another company. Cultures can vary drastically even within the same industry.
  5. 5. Culture Fueling Ford: • Within any organization Culture is the most important aspect of the business. A company needs to have a well laid out plan for success and this generally occurs when teamwork is occurring within the organization. • At Ford Motor Company, the culture has changed dramatically. What used to be a bunch of individual efforts has been changed to much more of a team effort. • New leadership under CEO Alan Mulally is taking Ford in a new direction. Leadership within the company has a trickle down effect. A positive culture starts at the top of the organization.
  6. 6. Different Approaches to a Successful Culture: Deal and Kennedys “strong cultures”: • Enhancing and development of a “strong culture” is imperative to organizational success. Peters and Waterman’s “Excellent Cultures”: • This approach points out common “themes” of highly successful organizations
  7. 7. Deal and Kennedy “Strong Cultures” 1. A common vision within the company with shared values and beliefs throughout. At Ford, when everyone is able to come together as one that is where productivity will occur. 2. An organizational “hero”. At Ford, Mulally has taken over the CEO role and has become a hero within the organization. 3. Rites and Rituals are an integral part of a “strong” culture. Team bonding experiences occur at Ford as it is a very open culture where everyone must participate. 4. Cultural network. At Ford Mulally has created a formal yet laid back atmosphere.
  8. 8. Values and Beliefs at Ford Motor Company: • Team oriented company. The team, the team, the team! • With teamwork comes productivity. Productivity=profit. • The belief that leadership can and should interact with all employees. All employees must be on the same page. • A more formal atmosphere (especially for higher up executives) can actually influence fellow employees in a positive fashion.
  9. 9. Hero of Ford Motor Company: • CEO Alan Mulally is the undisputed hero at Ford today. • Mulally took over a struggling company and completely rebuilt the internal parts to create a team of like minded individuals. • Mulally has been known to be very passionate and is available to his employees. A hero should not be afraid to “get in there” when work needs to be done.
  10. 10. Rites and Rituals at Ford: • Business meetings occur virtually every day. • Mulally has created a more formal atmosphere for his meetings. Casual dress is not allowed. • Many people believe that what you wear can actually influence mood and productivity.
  11. 11. Cultural Network at Ford: • Top down communication is key. Everyone has their role and in order for the team to function effectively they must communicate effectively. • In order for the network to function properly, Mulally hires like minded individuals. • A mix of formal and informal meetings create the cultural network at Ford. (Sometimes meetings occur in a room with a formal atmosphere, other times meetings may occur via skype or email).
  12. 12. Peters and Waterman’s “Excellent Cultures”: • A bias for action: Ford is a very fast paced company, no time is wasted. • Close relations to the customer: The customer must come first. Suiting the customer needs is very important for Ford. Appealing to every market segment is a daily struggle that is embraced by the company. Finding out what people want and delivering a quality affordable product keeps the customers happy. • Autonomy and entrepreneurship: Within the company there is not always a right or wrong answer. Employees do have the opportunity to provide the team with new ideas. Most of the risk taking occurs with upper level employees decisions based on a group consensus.
  13. 13. “Excellent Cultures” continued: • Productivity through people: Ford is highly productive and this only occurs because of the quality staff put in place. A team atmosphere has led to increased productivity. • Hands on, value driven: Mulally is not afraid to put in work when it is needed. Aside from making sure the team is performing well he is willing to put in the work any time it is needed. Productivity is highly valued at Ford Motor Company.
  14. 14. Resistance to Change: • When Mulally took over as CEO at Ford many things needed to be changed and it needed to happen quickly. • Mulally was able to completely revamp the organization with minimal resistance from employees. (Mulally is a likeable and well respected leader). • Typically within an organization there will be much more resistance to change. People are generally not easily adaptable to new and different ideas.
  15. 15. Hierarchical Approach: • Ford utilizes the Hierarchical approach. Power flows from the top down. • Often times this approach can lead to problems if people at the top are on a “power trip”. • At Ford, there appears to be a nice balance where people know who has power yet everyone is able to get along as a team.
  16. 16. • A strong culture such as Ford is imperative to organization success. • Everyone must be on the same page for this “team” culture to work. If one member of the team is not pulling their weight they will be replaced.
  17. 17. The Future: • The culture at Ford is highly correlated to both Deal and Kennedy’s idea of a “strong culture”. • Peters and Waterman’s idea of different themes also relates to Ford but certainly not with the same power as Deal and Kennedy’s idea of what makes a strong culture. • Combining these two schools of thought, Ford has built a winner that will continue to grow far into the future.
  18. 18. Questions: 1. With such a high paced productivity based company, how is Mulally able to keep employee morale at a high level? 2. Are individuals who work at Ford Motor Company truly happy? What could be changed to increase happiness amongst employees?
  19. 19. Questions: • 3. Are there any changes on the horizon that could potentially strengthen the team? • 4. Are customers satisfied with the current product? What changes need to occur to compete with top end luxury brands?
  20. 20. Works Cited: • Miller, Katherine. Organizational Communication Approaches and Processes. 7th ed. Stamford, CT: Cengage Learning, 2015. Print. • LaRocco, Lori A. "For Mulally, Fords Culture is Job One." https://www.thestreet.com/story/1543980/2/for-mulally-fords- culture-is-job-one.html. N.p., 2015. Web. 10 Oct. 2016. • http://www.bing.com/images/search?q=Muscle+Emoji&view=detailv 2&&id=EB268B67BB9567C674E9BB1ACD884FCF71417439&selectedI ndex=1&ccid=Fr5Fswm7&simid=608023329980811630&thid=OIP.M1 6be45b309bbd819960e93cac9ebcc48o0&ajaxhist=0