Essay on Ford Case Study

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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 …show more content…
Plans were being made to close at least four of its twenty-six North American auto assemble plants and slosh about 100000 jobs in order to be effective and regain the market.

5. Are there any structural factors that can help to explain why Ford made more money than GM in the late 1980s?

• In terms of structural factors, Ford and General Motor differ significantly from each other. Ford on one side had a rigid structure in the beginning of their venture as the decision-making is centralized and there is more or less no involvement from the lower level staff or the subordinates in the decision-making authority. • But once they notice that their precedents are not paying off and are not doing them any favor they change their structure that is more suited for the employees. They primarily affect their structure by cutting layers of management and getting more employees involved in the production process and give respect and autonomy to employees. • Now the structure is not adhering to strict centralized control and it’s more focused towards the participation of the employees in decision-making and brings about a change in organization through creativity and flexibility. This was the reason that made they change from mass production format to customization. • Whereas on the other hand GM although have divisional format that enable the divisional manager to take charge of their division
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