Organizational Behavior/ BUS 520
August 7, 2011
Alan Mulally has been CEO of Ford Motor Company since September 2006. Upon his arrival, Mulally took over "The Way Forward" restructuring plan (Wilson 2006) at Ford to move the company in a more competitive performance nationally and globally. Alan continues to lead through communication, openness, and the drive to succeed as he did at Boeing Company. Mulally is an effective leader and he knew that it would take everyone reestablishing “One Ford” for the company to achieve the goal of becoming the best automotive brand possible. Leadership is an essential quality to business. The role of leadership and how it affects Ford is a positive because it has a successful leader in Alan Mulally. Alan is someone who provides guidance, direction, motivation, and consistency. Through The Way Forward plan, Mulally identified specific goals, created a process to achieve them and installed a management system to make sure that the goals are reached (Hellriegel & Slocum, p. 543). Mulally also forecasted the economic treat of a recession, then he asked Bill Ford to sell off none Ford brands and borrow $23 billion against Ford’s assets to remain independent of the federal government. Mulally knew with rising gas prices that small cars were the cars for the future and he motivated Ford employees to figure out way to improve small cars. Mulally makes communication a priority so that every in the company knows the direction that Ford going. He has Thursday morning meetings and reviews charts to keep everyone focused.
Mulally uses authentic leadership, which refers to individuals who (1) know themselves, (2) what they believe and values, and (3) act on their values and beliefs through open and honest communications with subordinates and others (Hellriegel & Slocum, p. 326). Mulally knows that he is an effective leader because, 1)he served as executive vice president of The Boeing...