Ford motor company organizational structure

Capable, Convenient and Versatile. Configure Your New Ford. Ford Motor Companys organizational structure is divided according to regional markets. Other characteristics of this corporate structure are based on the global scope and nature of Fords business.

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Markets belonging to the same region have similarities used as basis for regional structuring. Ford has a traditional corporate hierarchy in its organizational structure. For example, Executive Vice Presidents report to CEO Mark Fields. Middle managers report to these executive VPs. Regional Geographic Divisions.

Ford has large geographic divisions in its organizational structure. Typically, global companies divide their operations into several regions per continent or subcontinent.

A potential effect of this feature of the organizational structure is the relative ease of integration of business strategies. An executive VP heads each division. Also, the global functional groups maintain such hierarchy through functional support, such as HR management to maintain Fords workforce. The organizational chart of Ford Motor displays its 3main executives including Jim Hackett, Tim Stone and James Farley × We use cookies to provide a better service.

By continuing your navigation, you consent to their use. The best organization structure , therefore, depends on a number of factors including the job, size in terms of the required workforce, revenue, geographic expansiveness and the range of its businesses. In fact, this form of organizational structure is suited for firms that are project-driven such as construction, engineering, and technological companies. The paper attempts to discuss how the matrix structure helps Ford Motors to achieve it strategic objectives.

Matrix organizational structure is a combination of two or more different structures. In this structure , functional departmentalization is usually combined with products groups on a project basis. If a product group, for instance intends to develop a new product, it will get workforce from functional departments such as research, engineering, production, and marketing.

The project manager usually reports directly to the vice president and the general manager. However, these personnel only work under the manager of the product group as long the project lasts. Given that each project is potentially beneficial to the organization, the project manager draws his authority from the general manager.

A host of functional heads (all titled Vice Presidents) report directly to the executive.

Organizations, accordingly, have a few basic structures, which are identified by the primary organizational attributes, for example, the component parts of the organization, mechanism used for work coordination elements of organizational structure, systems of power, and the external environment. He therefore enumerated seven basic organizational configurations as the machine, the entrepreneurial, the diversifie the professional, the missionary, the political, and the innovative. He further remarked that configuration is important for organizations to achieve stability in their internal environment by creating synergy in the work process, thus. Ford Motors’ matrix organizational system has successfully helped the company to achieve its strategic objectives. Given that the matrix structure is useful both in the external and internal environments, the company’s customer Service Division has achieved a global operation by recruiting 10personnel to serve in it 10dealers.

To this effect, top management became concerned with customers’ complaints on product and service delivery. Multi-skilled teams with focus on core processes, therefore, constituted the horizontally aligned departments. There are four approaches used to measure organizational effectiveness. These core processes included pa. In goal attainment approach, effectiveness is usually based on a company’s achievement of ends, but not means.

The primary focus when using this approach should be operational goals. The Ford Motors Company’s concern has been meeting the needs of its customers. The goals of the company’s core processes have been geared at satisfying customers’ needs and giving them value for their money. Ford has managed to attain these goals by religiously following the “Ford 200” Initiative.

The limitation of matrix structure is always it costs, which is expansive given the complex nature of reporting requirement. Workers, who did not have a clear picture of the chain of command in the structure, thus making information flow sometimes difficult, incurred these costs. The company managed to address, but not fully, the problem of employees’ dissatisfaction. Currently, the company still faces the same problem, though in lower scale due to decentralization of authority that was given to the project manager.

Moreover, the horizontal model that the company adopted at departmental levels has enabled employees to work. The company has a vertical management structure from the chairperson, the president, to the executive vice president then followed by a horizontal model consisting of departmental heads known as vice presidents. The project manager who is crucial for the development of new products is given a considerable authority by the executive vice president over the workers from other departments.

Ford Motors Company uses matrix organizational structure that enables it to easily coordinate and operationalize its vast activities. In Ford Motors, the application of Mintzberg’s theorem takes the form of professional bureaucracy given that it is engineers and technicians run the company. Similarly, the machine bureaucracy is also incorporated into the structure owing to the product that the company produces. Finally, measuring effectiveness of the company is done using different approaches, namely: goal attainment, balanced scorecar systems resources, and strategic constituencies. The nature of managerial work,Sacramento, Prentice-Hall.

Understanding Sport Organizations: The application of organization theory. New York, NY: Human Kinetics. Ford also owns Brazilian SUV manufacturer, Troller. What is the organizational structure of Ford?

Ford Motor Manufacturing Company implements or links to a more traditional hierarchical organizational structure (also known as a functional structure ) into their company. This means that the hierarchy of decision making and authority flows from the strategic management at the top down to operational management and non-management employees in a. The features of this culture are linked to the firms mission and vision, and the nature of its business. In the plan, the firm aims to unify its global organization to achieve consistency and synergy. Foster Functional and Technical Excellence. The firm recognizes the importance of excellence to push its performance higher.

Ford has training programs to support this characteristic of its organizational culture. Employees are encouraged to learn and improve, and contribute ideas for organizational development. This feature of the organizational culture supports Fords generic strategy adjustment toward broad differentiation. Own Working Together. In the One Ford plan, teamwork is among the most important priorities in the companys organizational culture.

The company also emphasizes personal development through team involvement and support. By delivering , Ford maximizes financial performance through its organizational culture. In addition, this feature of the organizational culture motivates Fords employees to achieve higher levels of career development to deliver more to customers and other stakeholders.

Prior to the implementation of the One Ford plan, the company had different cultures and product lines in different regions. Today, the firms organizational culture brings improved business capabilities based on synergy through unity. However, a disadvantage is that the firm does not specifically address flexibility.

While it may be new to Ford , management consultants say the structure is not unique in. Fords organizational culture facilitates teamwork combined with individual knowledge and skills development. Ford is committed to racial equity and social justice in our organization and the communities where we operate.

We are a family company made up of extraordinary people of every race, religion and backgroun all deserving of the same dignity and opportunities. Fill Your Cart With Color Today! However, Ford ’s story is distinctly unique and the role of leadership in building an original and extraordinary culture cannot be.

The company sells automobiles and commercial vehicles under the Ford bran and most luxury cars under the Lincoln brand.