Ford Motor Company: The Future of HR

Ford Motor Company: The future of HR

What are the key business strategies?

Of all of the troubled 'big three' automakers, Ford was the only one not to need major financial help and government-supervised restructuring. This was seen partially as a result of Ford's commitment to incorporate sustainability into its car designs far earlier than either General Motors or Chrysler. "Ford's current strength stems from what was a literal bet-the-company decision in 2006 to borrow $23.6 billion, putting even the company's fabled blue logo up as collateral. That money helped Ford move more quickly than General Motors or Chrysler to bring out new lines of more fuel-efficient vehicles, and, more crucially, provided a cash cushion when the car market tanked along with the economy in late 2008" (Ford Motor Company, 2010, The New York Times). Ford has sold off of its luxury brands like Jaguar, and divested most of its less popular brands such as Mercury and Mazda (Ford Motor Company, 2010, The New York Times). Ford's primary strategies are 'greening' or capitalizing upon the sustainability trend and streamlining its operations.

How should HR support (align its focus to) each of these strategies?

HR can play a key role in advocating sustainability within organizations, by hiring individuals with a background in sustainability and 'green' jobs and experiences. Even when hiring new recruits from colleges, Ford can target individuals on the campus who have shown initiative and interest in 'going green' by participating in environmentally-friendly groups.

As part of its orientation measures, as well as discussing diversity, corporate culture, and other aspects of joining Ford, recruits must have Ford's 'green' policy communicated to them in training manuals by HR: every new hire should be asked to sign a pledge to minimize waste personally at the company, as well as to minimize waste in the job-related functions he or she is performing. Recruits on every level of the company should receive an education in the Ford perspective on the environment and how new Ford vehicles will make a contribution to the further betterment of the planet. Workers at all levels should be solicited for information, if they have an idea about how to make their particular division of Ford more 'green,' and highlight such employee ideas on the corporate website. Also, the company should give information about how workers can make their own lives greener, such as by using products made from environmentally-friendly materials at lunch and eating less meat (Bolch 2010:1)

HR can also take practical strategies to reduce the carbon footprint of employees by allowing telecommuting whenever possible. Reducing paper by using electronic communications, electronic payments, and shifting all new documents and document revisions online can also result in less waste. When HR is mindful of its use of resources, it sets a good example for employees.

In terms of Ford's efforts to sell off lagging brands and to create a more cohesive and efficient company, HR can offer support by communicating a clear sense of this organizational mission to all employees. In an organization as large as Ford, it is easy for different branches to become so separate from one another, they develop different corporate cultures. There must be a centralized HR authority that sets the tone for all personnel, and a clear sense of ethics and mission must underline all interactions between HR and employees at every rung of the organizational ladder.

As Ford tries to grow more efficient in its operations, HR may consider implementing new ways for employees to work, such as pay-for-performance, flextime, and evaluating management based upon ideas rather than upon hours at work, in the type of results-oriented workplace pioneered at organizations such as Best Buy. Judging workers by what they do, rather than upon hours physically spent at work puts the focus upon output and is consistent with the Ford philosophy of streamlining, downsizing, and growing more efficient and competitive (Smashing the clock, 2006, Bloomberg Businessweek).