Case Analysis Of Ford Motor Company

1313 words - 6 pages

1. Discuss the role of leadership and how it can impact organizational performance.
The role of leadership is vital to an organization’s performance. The way a leader runs an organization is the determining factor of whether or not it succeeds. Many companies have failed due to poor leadership. Leadership is more them management. Effective leadership is a personal role that requires the blending of motivational, strategic and management skills to align focus, energy and drive while creating a culture that encourages individual thinking and attainment. Everyone does not possess the abilities to be a successful leader.
The role leadership can have a significant impact on an ...view middle of the document...

Mulally holds Thursday Morning meetings around a circular dark wood table that seats 18 executives. Mulally sits in the perimeter in a seat labeled as the “Pilot’s seat”. Obviously, Mulally believes in “round table” discussions. Round table discussions are important to a business because this gives employees involved a sense of belonging and being heard. It opens the lines of communication. Mulally feels that the only way an issue can be resolved is to be honest by bringing it to the forefront. He believes in clear visibility versus “sweeping thing under the rug”.
In addition, Mulally believes in the “One Company” mentality. He adopted the “One Ford” definition of the company. Mulally believes there is one team, plan and goal. Obviously, Mulally’s beliefs are centered around the participative leadership style. As briefly discussed above, Mulally holds meeting with his direct reports every Thursday. “I live for Thursday morning at 8 a.m., he says.” (Organizational Leadership, p. 545). Only a true participative leader is excited by the idea of meeting with his team to discuss the action plan ideas, status, and areas that need special attention.
3. Discuss how goal setting helped Ford improve its performance.

First, goal setting helps any organization improve its performance if effectively developed, implemented and monitored. A lot of companies repeatedly set unrealistic goals with no action plans. As a result, the business fails. However, in the case of the Ford Motor Company, aggressive goals were vital to the success of the company. The company was losing billions of dollars in such a short period of time. Mulally developed the company’s goals with one main focus in mind. Mulally knew that in order to accomplish a goal, a plan has to be put in place. This is evident in the following conversation between Mullaly and an unknown individual. “Mulally was asked whether Ford would be able to remain in business: “Is Ford going to make it?” “I don’t know,” Mulally replied. “But we have a plan, and the plan says we are going to make it.” (Organizational Behavior, p. 545).
Overall, the Ford Company’s performance was improved by goal setting as the lines of communication were opened. Employees felt motivated by Mulally’s participative leadership style. With this motivation comes the eagerness to make any goals set by Mulally achievable. The participative leadership style make the employees feel more involved and committed to projects, making them more likely to care about the end results.
4. Assess Mulally on each element in communication openness including message transmission, trust, agendas and goals.
First, as far as message transmission Mulally should rank high on the open side, primarily because of his participative leadership style. Second, when assessing Mulally’s trust element, he should rank high. Employees are encouraged to share their thoughts and ideas with Mulally. Mulally’s...

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