Ford Case Study
FORD CASE STUDY
1. Using competing values, assess why Ford is widely considered more effective than GM. How could GM have used the competing-values approach in the early 1980s to recognize that it had problems?
• In case of Ford motors they were earlier implementing the Rational Goal Model that lays immense emphasis of higher level of productivity, efficiency and profit. The decision-making is centralized to the higher-level authority with very less or no participation from the lower level staff in decision-making authority. • But after the major drawback that hit Ford Motors by producing more and more of particular product without customizing the product they change their strategy and become more employee centered. They choose to adopt human relation model to handle their employees in the best possible way so that an organization can get flexible in dealing with change and every give respect to the employees by making them communicate and coordinate their point pf view. • In case of GM, they are following decentralized authority with centralized control. Like Ford, GM had high cost and a bloated organization. They had an internal system that stifled innovation and was slow in reacting to change. Apart from that they are prisoner of their successes and that’s why Ford proved out to be more effective than GM as they change their strategy for the betterment of the organization. • In early 1980s they should used a human relation model to determine whether they are flexible or not and whether are focusing on employees in terms of decision making autonomy or not. If they had recognized the problem that exists with producing small cars just through mare assumption they wouldn’t have committed that mistake. In that case the human relation model would have been a perfect fit as it would have provided the employees with motivation and the flexibility would have enable the organization to adapt to the change.
2. Contrast Ford and GM’s strategies.
1. Using competing values, assess why Ford is widely considered more effective than GM. How could GM have used the competing-values approach in the early 1980s to recognize that it had problems?
• In case of Ford motors they were earlier implementing the Rational Goal Model that lays immense emphasis of higher level of productivity, efficiency and profit. The decision-making is centralized to the higher-level authority with very less or no participation from the lower level staff in decision-making authority. • But after the major drawback that hit Ford Motors by producing more and more of particular product without customizing the product they change their strategy and become more employee centered. They choose to adopt human relation model to handle their employees in the best possible way so that an organization can get flexible in dealing with change and every give respect to the employees by making them communicate and coordinate their point pf view. • In case of GM, they are following decentralized authority with centralized control. Like Ford, GM had high cost and a bloated organization. They had an internal system that stifled innovation and was slow in reacting to change. Apart from that they are prisoner of their successes and that’s why Ford proved out to be more effective than GM as they change their strategy for the betterment of the organization. • In early 1980s they should used a human relation model to determine whether they are flexible or not and whether are focusing on employees in terms of decision making autonomy or not. If they had recognized the problem that exists with producing small cars just through mare assumption they wouldn’t have committed that mistake. In that case the human relation model would have been a perfect fit as it would have provided the employees with motivation and the flexibility would have enable the organization to adapt to the change.
2. Contrast Ford and GM’s strategies.