Ford Case Study

2191 Words Aug 1st, 2011 9 Pages
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
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The activities being performed by the employees are repetitive and an overall perspective of the organization is bureaucratic and mechanistic • The environment for Ford Motor is not that simple and they cannot survive while continuing with the same techniques so what they decided was customize the product according to the needs of the consumers and cut the layers of management to give employees autonomy in decision making. • Ford in order to create an effective structure-environment mix change its strategy and began to product stylish and customized that are suited to the needs of the customers. Apart from that they introduced a broad based cost cutting system and let the employees to participate and contribute their skills for the betterment of the organization. • GM structure was a bit changed from that of Ford Motors as they are following decentralized authority with centralized control. GM had divisions rather than a strict centralized authority and the divisional head have the authority to take decision for their restricted division, but the headquarters controlled the overall operations. • The environment demands products that are stylish and highly customized and GM is unable to meet the needs of the dynamic environment. They are very much inclined towards increasing the market share rather than customizing their product. As the environment is dynamic so they have to make alteration that can be

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