CASE STUDY: FORD MOTOR COMPANY
Leadership and Organizational Effectiveness of Ford Motor Company “This is everything.
It’s children’s future.
It’s everything tied up into one.
Failure is not an option.”
CEO, Ford Motor Company
The global marketplace is faced with different challenges that affect its overall management and operations. Various pressures on the internal and external conditions such as the unstable world and local economies, the workforce, the customers, and even the management itself risk the success or failure of the organization. In implementing effective management of a business, regardless of what kind of management strategy is used, the person who is foremost in all the transactions of the business must be able to deal with all the potential hazards. Ford Motor Company is well known as the #1 manufacturing experts in the western world. During Ford's early years, the company was virtually indistinguishable from its founder. "Fordism," as it came to be known--a system of mass production which combined the principles of "scientific management" with new manufacturing techniques, such as the assembly line--created more than fantastic profits for his company: it literally revolutionized industry on a global scale within twenty years of its implementation ( 2002). This paper aims to discuss the leadership implemented in Ford Motor Company under the administration of , Jr. and specifically, it sought to answer the following questions: a. what are the problems he inherits as the CEO of Ford?
b. What are the adaptive challenges he recognises?
c. How does he go about projecting the voice of leadership?
In order to point out the answers to the aforementioned queries, there is a need to provide brief discussion of the concept of leadership and its styles that will help to the entire analysis of the case. The integration of the concepts and the facts from the primary source will present a comprehensive result of the case analysis. The application of these theories will be evident to the next parts of the report. Leadership and Leadership Styles
Leadership is an important aspect of any organization. For decades, the issue on leadership has been undertaken in various studies and related discussion. In fact the study on leadership dates back in 1921 ( 1999, p. 8). Leadership comprises the aptitude and ability to inspire and influence the thinking, attitudes, and behavior of other people (, 1991; 1985; , 1989; 1985; 1988). Leadership is a process of social influence in which one person is able to enlist the aid and support of other individuals in the achievement of a common task (, 1997). The major points of this definition are that leadership is a group activity, is based on social influence, and revolves around a common task. Although this specification seems relatively simple, the reality of leadership is very complex. Intrapersonal factors such as ideas and emotions, interact with interpersonal processes (i.e., attraction, communication, influence) to have effects on a dynamic external environment. Among the many definition of leadership, the most relevant definitions were given by (2002) and (1992). (2002) defined leadership as the process of inspiring other people to comprehend and agree on what needs to be done and how to accomplish them effectively. In addition, leadership is also defined as the process of facilitating collective and individual efforts to fulfill shared objectives. Alternatively (1992) stated the creation of culture is the main essence of leadership and that both culture and leadership are two sides of a single coin. Relating leadership to management, believed that leaders tend to establish and change culture, while administrators and managers live within the culture. While both related definitions differ from one another, both speak of the essential role leaders have to play in corporate culture. The charismatic power of leadership has...
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