Organizational Culture At Ford

My Top 3

The organizational culture at Ford can be described by some as dictatorial (Shahmanesh, 2002). The traditional style of leadership and paternalistic approach may be rooted in Ford’s earliest concepts of a job for life. However, at Ford Motor Company strict hierarchical organizational charts and rules determine the path of knowledge and innovation within the organization. Workers often are afraid to voice their opinion in meetings (Wilson, 2007).

Family has been part of Ford’s management since the earliest founder Henry Ford rolled out the Model T. This mindset of cronyism has led to a number of family based position appointments. For example, Steve Hamp was appointed to chief of staff report to his brother in law Bill Ford (Wernle, 2005). Prior to his appointment Steve Hamp ran Ford’s Museum and Greenfield Village and moved quickly, due to family connections, to chief of staff with significant responsibility to instill innovation within the organization (Wernle, 2005). In classic Ford style family connections and family politics abound (Taylor, 2006).

An analysis of Ford Motor Company indicates that instilling more systems thinking into the culture at Ford would benefit the company greatly (Seligman, 2005). Up until this time Ford Motor Company had difficulty maximizing productivity, lessening costs and thinking about the long-term implications of their systems designs. With a more systematic approach the Company could expect to realize higher returns on their products due to efficiencies.

Ford Motor Company has also recently become more diversified by weaving diversity into their departments and allowing women an expanded roll within their corporation (Dempsey, 2006). Some departments have made an expanded effort to increase their overall diversity within the organization that allows for more innovative thinking. The trend is expected to continue at Ford.

In order for Ford to be innovative they must be honest with where their products currently are and the hard work they will need put into improve their products (Bill Ford, 2006). Honesty would help Ford members understand that their products are not always the best on the market and continuous improvement is necessary. An inability to see the flaws within their products hinders this improvement process.

The culture at Ford is seen as stale and in need of change (Connelly, Wilson & Rechtin, 2007). The culture may end up hindering the ability to improve the company’s products and services. Without this improvement it is possible that Ford Motor Company will continue to decline in terms of market share and profitability.