Conduct an analysis of Ford Car Company

Conduct an analysis of Ford Car Company

Ford Motor Company is one of the leading American automobile manufacturers founded by Henry Ford and incorporated in 1903. According to the Global auto market statistics (2019), it is the world’s third-best automobile manufacturer by sales. To better understand the performance of Ford, it is imperative to understand the organizational behaviour of the company. This study will focus on the macro-organizational concepts of the company. Specifically, it will analyze its behaviour in the market, strategies regarding employee’s management and leadership and their impact on the overall performance of the organization.

Question a) Types of Influence Tactics used

As one of the top industry brands, Ford’s organizational behaviour revolved around its leadership, culture and structural hierarchy. A mix of various influence tactics was also adopted by the management of Ford to dominate the market and assert its authority. These tactics include assertiveness, ingratiation, self-promotion, exchange, upward appeals and coalitions.

Looking first at assertiveness, Ford leadership was tied around the Ford family, which controlled forty per cent of the company shares. The founder, Henry Ford’s assertiveness, forced his employees to quicken the working speed to reach the set production quotas (Slide 19). Although this condition negatively affected the normal working conditions of the employees, the company was able to gain substantial profits.

The second tactic involved the use of flattery (Slide 20). Bennette, one of the divisional managers in a bid to be friendly and please the top leadership conformed with all policies, some of which were detrimental to the demands of the workers. He agreed to every proposition as a way of maintaining his loyalty to the company.

Also, during the Ford Hunger March organized by the workers, one of the main grievances presented was the abolition of Bennett’s Service Department on allegations of corruption. According to company workers, the hiring system was manipulated. Consequently, workers had to give bribes in exchange for jobs favours. (Slide 23).

The workers mainly used the fourth type of influence tactic, coalition (Slide 25). They came together and organized a peaceful demonstration to agitate for their rights as employees. Majorly, the workers were seeking recall of their laid-off colleagues, a discrimination-free work environment for the blacks and fairness in the hiring process. The Ford Hunger March (Stefanick,2011) indicated the power that workers can have in an organization through unions and coalition.

Question b) Types of Power used

The capacity of any organization to influence others who are in a state of dependence (Slide 3) determines the market performance of the company. The Ford motor company used a mix of different power measures including autocratic, legitimate, coercive and referent to run its activities.

Starting with autocratic power, which involves the use of total authority was used by the founder, Henry Ford, to advance his goal without considering the opinions of his workers. He claimed that the employee’s duty was to work and not bargain with the boss (Pocknee,2013). He used this form of leadership to foster his ambitions.

Secondly, the leadership structure used coercive power (Slide 7) in the daily operations of the company. For instance, Ford forced employees to work two-fold to meet the production targets of the company. Employees who failed to adhere were punished for noncompliance.

Ford car company also used legitimate power (Slide 5) as a management practice for its employees. The founder together with divisional managers had the ability to decide on production quotas that the employees were to produce. Moreover, because of their level of authority in the company, they could hire or fire employees depending on the prevailing circumstances.

Finally, the company used expert power (Slide 9) as a measure to check on the productivity of the employees. As a result, the company only retained the most productive employees.

While power may provide opportunities for initiatives that improve organizational effectiveness, its abuse can lead to employee dissatisfaction and ineffective performance (Slide 15 and 17). Similarly, influence tactics can have a significant impact on the organizational behaviour of an organization. It determines the relationship between the company leadership and employees, consequently affecting operations.

References

 Focus2move| World Cars Brand – The top in 2019. https://focus2move.com. (2020). Retrieved 4 April 2020, from https://focus2move.com/world-cars-brand-ranking

Pocknee, David. “What Is “New” About “New Fordism”.” The New Fordist Exhibition Report (2013).

Stefanick, A. (2011). Personality and Power in the Ford Motor Company Hierarchy: The Story of Harry Bennett, 1916-1945 (Doctoral dissertation).