With the advent of globalization and technology, many businesses, specifically automotive industries are the most affected. Most auto industries like Ford Motor are recognized as multinational industries and the ability of these companies to sustain their competitive advantage are being challenged by these concepts. To be able to stay in the competitive position, companies like Ford Motor initiate changes to cope to the changes in the business environment. It can be said that Ford Motor integrates changes into their business in order to meet the need of the target market and be competitive among rival industries.
Primarily, the main goal of this research study is to assess the global strategy in terms of organizational changes of Ford Motor and identify how these enable Ford Motor to stay in their competitive position. Furthermore, this research will also determine the effectiveness of the organizational change, its disadvantages and to know the critical success factors of this organizational change. Overview of the Industry This research study will consider Ford Motor Company which is considered as one of the leading automobile manufacturers since 1913 with the introduction of mass production.
Different car industries have adopted the ideologies of mass production, specifically Europe and United States. The idea of mass production has several features. First, the production staffs have specialized jobs which include the attachment of one small item to the car. Next, the quality of the product is noted to be substandard because the industry only focuses on the number or the quantity of the output. Lastly, the industry is in need of large number of work force to deal with work which is commonly unrelated with the production.
Because of this issue in mass production, Ford Motor encountered their major crisis in 1980. During this time, the industry has lost vast amounts of money and large value of market share. In order to solve these issues, the industry considered major organizational changes which include their enhancement of their business process engineering and management theories like total quality management. Overtime, the organizational changes of Ford has been able to respond to the challenges of the motor industry in the market place. In addition, has also been able to consider changes in their corporate culture.
Major Implications of the Change Ford Motor Company has been able to consider organizational change so as to stay in the competitive position and to offer quality car/auto products for their clients. Although there are different aspects s which support the organizational change plan of the industry, there are also some aspects which retrain or inhibits changes in the industry. The following are the resistance which inhibits the success of organizational change; these include the reaction or perception of stakeholder, organizational culture and the lack or absence of support from top management.
As mentioned one of the resistance is the reaction of the members or production staffs and other employees of Ford Motor Company. Although there are stakeholders who will be in favor of the organizational change some may not be in favor for this change plan. Some perceived that having organizational change will be costly and will only cause other challenges to occur. Furthermore, the people who implement the organizational change for the industry may not have enough knowledge to resolve major issues and problems in the future. Change Model for Ford Motor Company
To be able to initiate the strategic change for Ford Motor Company, the management has been able to effectively select the suitable change model to be considered. The strategy that Ford Motor Company can consider two of the three general organizational change models also known as meta-strategies (Heller, 1998) which is the empirical-rational approach and the normative-re-educative approach formulated by Chin & Benne (1985) and Bennis et al (1985). In the empirical-rational approaches, the production staffs and other employees are being considered as a rational being that follow their self-interest once it has been revealed.
Herein, the key factor of this change model is information through the use of high technology and information technology that fits the aim of the change process for Ford Motor Company, that is, to establish organizational change. By considering such technological strategy, Ford Motor Company has been able to disseminate essential information within and outside the industry. In addition, this model also enhances capability of the management to ensure that all stakeholders of the industry have access to the organizational change.
The technological aspects also enables the the basic principle of the empirical-rational change model to transform the industry with efficient and sufficient information. On one hand, the secondary model to be followed by the industry is the normative-re-educative model. In this regard, the industry may consider their production staffs and other employees as social beings associated to distinctive cultural values and norms. Such model is based on the idea that different people are inevitably active so as to satisfy their needs.
In Ford Motor Company, this change model has been utilized when the production staffs and other employees or the people in the industry have determined dissatisfaction due to different values an culture. The key factor of its used is that, this model focus on not finding the best information to give guidance on the rational process but to find an effective relationship between the value of the entire systems implement by the industry which include the stakeholder and the values of the internal and external environment of Ford Motor Company.
Conclusion The discussion above is only few of the aspects to be considered when discussing organizational change. In this case, the organizational changes of Ford Motor Company should be analyzed to determine whether it helps the company to perform better and stay in their competitive position in the global market. Reference Conner, DR (1994), Managing at the Speed of Change, New York: Villard Books. Heller, R (1998). Managing Change. New York, New York: DK Publishing, Inc