Ford Motor Company Restructuring Essay Example
Ford Motor Company Restructuring
Holly Colton
Organizational Change: MGT 435
Professor Guwanda Lewis
June 7, 2010
Introduction With the effects of the ever changing United States economy, how was Ford Motor Company able to rise above its competitors to stay afloat in the auto industry? Ford has gone through extensive restructuring in the past years to help the company in this current time of hardship. Some of these restructuring efforts have been to down-size the workforce, to focus on the Ford Brand and cut back on other brands under their agency, employee involvement at all levels, and to increase the efficiency in Ford’s four main pillars for their organization: fuel efficiency, quality, safety and value. Ford also continues to invest in the top Research and Development efforts in order to bring the highest quality products to their consumers for an affordable price. Ford not only is trying to make the jobs of their employees easier but also to meet the needs of their customers and worldwide markets. In this paper we will further discuss the organizational changes that have occurred at the Ford Motor Company.
Downsizing
In 2006, Ford Motor Company realized that they were going to have to make cuts in jobs in order to save on the budget. While not always desirable, Ford was able to notify the workers in advance and offer settlements that helped the employees through the transition of employed to unemployed. Ford was able to take into consideration the needs of the people that will be affected by this change and do what they can to make the change manageable.
People generally resist change that is sudden and comes as a surprise to them. “One key aspect of timing and receptivity is surprise. If the change is sudden, unexpected, or extreme, resistance may be the initial—almost reflexive—reaction…At the very least, you would want to know about this change far enough in advance to have time to prepare for it.” (Bateman, 2007) In 2006, Ford Motor
Holly Colton
Organizational Change: MGT 435
Professor Guwanda Lewis
June 7, 2010
Introduction With the effects of the ever changing United States economy, how was Ford Motor Company able to rise above its competitors to stay afloat in the auto industry? Ford has gone through extensive restructuring in the past years to help the company in this current time of hardship. Some of these restructuring efforts have been to down-size the workforce, to focus on the Ford Brand and cut back on other brands under their agency, employee involvement at all levels, and to increase the efficiency in Ford’s four main pillars for their organization: fuel efficiency, quality, safety and value. Ford also continues to invest in the top Research and Development efforts in order to bring the highest quality products to their consumers for an affordable price. Ford not only is trying to make the jobs of their employees easier but also to meet the needs of their customers and worldwide markets. In this paper we will further discuss the organizational changes that have occurred at the Ford Motor Company.
Downsizing
In 2006, Ford Motor Company realized that they were going to have to make cuts in jobs in order to save on the budget. While not always desirable, Ford was able to notify the workers in advance and offer settlements that helped the employees through the transition of employed to unemployed. Ford was able to take into consideration the needs of the people that will be affected by this change and do what they can to make the change manageable.
People generally resist change that is sudden and comes as a surprise to them. “One key aspect of timing and receptivity is surprise. If the change is sudden, unexpected, or extreme, resistance may be the initial—almost reflexive—reaction…At the very least, you would want to know about this change far enough in advance to have time to prepare for it.” (Bateman, 2007) In 2006, Ford Motor